Collateralized Loan Obligations

Bowl of Cherries
David Bates
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About Collateralized Loan Obligations

The Barrow Hanley CLO platform, managed by a team with experience investing through multiple market cycles, utilizes the full breadth of the firm’s fundamental research capabilities to identify companies and credits that they believe will generate attractive risk adjusted returns for all stakeholders within a CLO structure.

Investment Process

Investment Objective:

Seek to originate and manage CLOs in order to provide attractive risk-adjusted returns.

Investment Overview:

We believe that CLOs provide attractive yield and returns for investors. CLOs are durable and stable investments when managed properly, as demonstrated through multiple market cycles. Our deep experience, access to firm resources, and our fundamental credit analysis process all portend a team that is focused on optimizing risk-adjusted returns within the risk mitigating constraints of the liabilities.

CLO ASSETS
Investments in a diversified pool of bank loans (150-200) positions
  • Floating Rate
  • Senior Secured
  • Rated BB and B
  • 5-7 year maturities
  • 1/3 of portfolio pre-pays on average annually
  • Actively managed
CLO assets & liabilities are matched; floating rates with similar maturity profiles
CLO LIABILITIES
CLO debt financing = ~90% of CLO assets
  • Floating Rate
  • Rated AAA-BB
  • 10 year, non-recourse debt
  • Not subject to margin calls
CLO EQUITY
~10% of CLO assets
  • Equity earns the yield on bank loans less the costs of CLO debt financing and fees

Strategy Summary

as of 12/31/2024
date format is m/dd/yyyy
Asset Class
Broadly Syndicated Bank Loan CLO
Investment Style
Bottom-Up Security Selection
CLO Equity Fund I
$120M Committed Capital
Total CLO Assets
$1.2B

For more information on CLOs, please reach out to our CLO Investor Relations Team at CLOInvRelations@barrowhanley.com

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Disclosure

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