JPMorgan to Gauge Collateralized Loan Obligations

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Mark Melin
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JPMorgan Chase & Co. (NYSE:JPM) has created an index that will allow investors to measure collateralized loan obligations (CLO), most often corporate debt. Collateralized loan obligations used to finance leveraged buyouts Collateralized loan obligations have been used to finance leveraged buyouts as well a secure financing for factory expansion and other expansion needs of large and mid-sized businesses. The loans are then packaged and sold as one security with ratings from AAA to BB. The CLOIE gauge will enable investors to track the price and total return of CLOs and their debt portions, according to the bank. CLO financing deals…

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Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.