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Understanding Par Value in CLOs

  • Strategy Deep Dives

Par value is the cornerstone of CLO structures, shaping investor protections and serving as a key measure of a manager’s skill.

The first edition of our CLO Insights Series explores the central role of par value with a focus on:

  • Why par value sits at the heart of CLO structures
  • How Over-Collateralisation and Interest Coverage tests protect investors
  • The mechanics of par build and par erosion
  • What these dynamics reveal about CLO manager performance

For institutional investors, understanding par value dynamics is essential for CLO evaluation and manager selection.

Read our analysis, produced in association with Weil, Gotshal & Manges (London) LLP, below.

Download Understanding Par Value in CLOs

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Robert Reynolds

Managing Director, Head of CLOs

Robert is a Managing Director and Head of Collateralised Loan Obligation (‘CLO’) for Pemberton. CLOs invest in broadly syndicated leveraged loans and Robert is responsible for building Pemberton’s CLO business into an innovative platform.

More about Robert Reynolds

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