CLOs: What's Driving the Opportunity Today?

Streaming Income - A Podcast from Barings

Co-Heads of Structured Credit, Melissa Ricco and Taryn Leonard provide insight into last year’s ‘rollercoaster ride’ in CLOs, and explain why both fundamental and technical factors appear to be aligning to create a strong backdrop for the asset class moving forward.

Episode Segments:

03:20 — How CLOs weathered the 2020 pandemic volatility

05:34 — Managing CLO portfolios through the COVID period

08:52 — The outlook for structured credit heading into 2021

11:34 — Where we are today on default and downgrade risk

13:57 — The factors behind the boom in CLO supply

20:03 — Why secondary deals may be more attractive than new issue today

23:40 — Where the team is seeing value up and down the capital stack

29:30 — Risks to stay focused on

31:44 — What investors should watch in the months and years ahead

IMPORTANT INFORMATION

Any forecasts in this podcast are based upon Barings’ opinion of the market at the date of preparation and are subject to change without notice, dependent upon many factors. Any prediction, projection or forecast is not necessarily indicative of the future or likely performance. Investment involves risk. The value of any investments and any income generated may go down as well as up and is not guaranteed. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. Any examples set forth in this podcast are provided for illustrative purposes only and are not indicative of any future investment results or investments. The composition, size of, and risks associated with an investment may differ substantially from any examples set forth in this podcast. No representation is made that an investment will be profitable or will not incur losses.

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Unless otherwise mentioned, the views contained in this podcast are those of Barings and are subject to change without notice. Individual portfolio management teams may hold different views and may make different investment decisions for different clients. Parts of this podcast may be based on information received from sources we believe to be reliable. Although every effort is taken to ensure that the information contained in this podcast is accurate, Barings makes no representation or warranty, express or implied, regarding the accuracy, completeness or adequacy of the information.

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