This podcast episode explores the world of Collateralized Loan Obligations (CLOs) and CLO equity investing. Shiloh Bates, the Chief Investment Officer at Flat Rock Global, provides an overview of the CLO market, its growth, and the unique characteristics of CLO equity. Bates emphasizes the benefits of investing in CLOs, such as their floating rate nature and low interest rate duration. The episode also covers the potential impact of rising interest rates on CLOs and the key players in the CLO market. It delves into the strategies and structures used to diversify investments in CLOs and highlights the importance of active management. The episode concludes with insights into the complexities of CLO investing and the various ways equity investors can drive returns in CLO deals.
