Leverage lures hedge funds into snapping up triple-A CLOs

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Leverage lures hedge funds into snapping up triple-A CLOs

CLOs

Hedge funds are starting to use aggressive leverage to make an unexpected move into triple-A CLO tranches, writes Will Caiger-Smith. Some players see this buying, which is not yet widespread, as a bid by bank arrangers to boost the product’s investor base, but others report growing real money demand in any case.

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