25 years: Securitisation
In Ian's series on CLOs, he will discuss the risks and valuation of these products. This video will cover the assessment of credit risks when deciding whether to purchase a bond. It will also consider what he terms "manager risk", which is the way in which manager actions can affect the risks and value of a bond.
In Ian's series on CLOs, he will discuss the risks and valuation of these products. This video will cover the assessment of credit risks when deciding whether to purchase a bond. It will also consider what he terms "manager risk", which is the way in which manager actions can affect the risks and value of a bond.
11 mins 5 secs
Investors of CLOs are paid a percentage of the value increase in their portfolios, and thus, it is of great importance that they evaluate and manage the fundamental credit risks before purchasing, trading out of, or holding on to bonds.
Key learning objectives:
Identify all the inherent credit assessment checks/tests
Explain the importance of hedging and diversification in portfolio management
Define manager risk, and outline the key questions to ask a collateral manager