Question: You work in the structured credit group at a major investment bank. You are responsible for moving 200 individual high-yield (levered) loans off the banks

You work in the structured credit group at a major investment bank. You are responsible for moving 200 individual high-yield (levered) loans off the bank’s balance sheet and selling them to interested investors. Describe how you might create a Collateralized Loan Obligation (CLO). Please label the tranches in order of risk tolerance.

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