Centerbridge joins growing ranks of hybrid CLO managers

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By Paola Aurisicchio
04 May 2021

More managers are eyeing the rare US CLO structure which combines both leveraged loans and high yield bonds, in search of more flexibility, and to capitalize on the mispricing between the high yield and leveraged loan markets.

The hybrid bond-loan structure, interchangeably called CBO, CDO or hybrid CLO, has been linked so far to specialized managers, such as Anchorage Capital Group, with extensive expertise in the high yield market.

Despite the volatility in credit markets caused by the coronavirus crisis, Diameter Capital and Shenkman Capital ...

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