What is a CLO waterfall and what does it do?
The “waterfall” is one of the more colourful phrases used by the CLO community. Formally called “Priorities of Payments”, this mechanism controls how interest and principal proceeds flow from CLO assets to investors.
Our latest CLO Insights breaks down exactly how these waterfalls operate, and why this alignment matters for both investors and managers.
Read the full analysis, produced in association with Weil, Gotshal & Manges (London) LLP, below.
Download The Waterfall
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