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Title

Jen Dlugosz -- What lies beneath: An inside look at corporate CLOs collateral 

Location

McColl 2000 

Start

1/28/2009 2:00 PM 

End

1/28/2009 3:00 PM 

Description

Since 2000 collateralized loan obligations (CLOs) have been the dominant source of capital for the high-yield corporate loan market. Despite the widespread belief that the rise of CLOs has led to riskier lending, there is little evidence to support it. In this paper, we investigate whether securitization led to risky lending in the corporate loan market by examining the quality of individual loans held by CLOs. We find that, overall, securitized loans perform no worse than unsecuritized loans in terms of accounting returns, credit rating changes, and market-assessed probability of default. However, within a CLO portfolio, loans originated by the bank that acts as the CLO underwriter significantly underperform the rest of the loan portfolio.

All Day Event

 

Recurrence

 

Workspace

Semester

Spring 2009 

Types

Finance Seminar 

Affiliation

Harvard Business School 

Cost

 

Additional Information

 

Additional info - Weblink

Jen Dlugosz 

Workshop?

 
Attachments
Jennifer Dlugosz.pdf    
Created at 1/21/2009 5:02 PM  by Strandh, Marion 
Last modified at 1/27/2009 3:55 PM  by Smith, Kristen