Case Study

HEM Asset Management, LP is a CLO (collateralized loan obligation) manager and has recently structured and sold securities for a new pool of $110 million in loan assets. The waterfall, the underlying loan detail, the spreads, the floor amount, expected recovery, the detail on fees and other valuable information is in the CDO.xls file. What is a Bank Loan.pdf has useful general information which HEM gives to its prospective clients who want to learn more about this relatively new asset class. One feature of a CLO is that in the first four years of the pool, early amortizations typically must be reinvested. After four years, any accelerated pay-down is typically returned to investors.