How CLOs work

IMG
Instructor
Michael Stafferton
February 24, 2026 (Tuesday)
10:00 AM PST | 01:00 PM EST
Duration: 60 Minutes
Webinar Id: 70171
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Overview:

CLOs buy portions of leveraged loans; they are funded by issuing notes with ratings from AAA to unrated ‘equity’

Why you should Attend:

Do you understand the risks and rewards of investing in CLOs?

Areas Covered in the Session:

  • How ‘arbitrage’ CLOs work - buying portions of loans, funded by selling a range of rated tranches and ‘equity’
  • The ‘arbitrage’: how there is excess spread and who gets it
  • The rewards - spreads and Return on Equity
  • The risks - Default Probabilities, Recovery rates and Correlations

Who Will Benefit:

  • Existing and potential CLO investors: Banks, Fund Managers, Insurers, Pension Funds

Speaker Profile

Michael Stafferton has over twenty years’ experience of training and consulting with clients on a range of technical financial areas, based on his previous front-office market experience in derivatives and fixed income, arranging and executing transactions for governments, banks and corporates. Bank Regulation and Risk Management is a particular area of focus, together with other Capital Markets related areas, including in particular Securitisation. He invests a considerable amount of time keeping up with developments in the financial world, including crypto and stablecoins. His client-list comprises primarily central banks, investment banks, commercial banks, fund managers and insurers globally. He is an Associate with Moody’s Analytics.