Finding horizontal and vertical angles

By Tanvi Gupta

2017 CLOs where managers hold a vertical strip have higher spread portfolios and higher leverage than those with a horizontal risk retention investment. By Tanvi Gupta

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TAGS: Performance North America CLO

Comment by: Anonymous. Posted 11 months ago [2017-10-03 13:53:43]

It seems counterintuitive, but doing a vertical is a more aggressive risk retention strategy for a manager so that may account for the fact that vertical deals are on average (slightly) more aggressive than horizontal deals