In contrast with 2008, money managers now prefer investing in Collateralized Loan Obligations (CLO), backed by pools of debt.

Curious: How would an investor know if a fund is investing in a CLO as opposed to a regular bond?

To be more specific, if I look at the Blackrock High Yield Fund (BHYIX) holdings, is there anything in this list that tells me that the asset is a CLO?

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Or, when you refer to “money managers”, are you referring only to hedge fund and private wealth money managers?

Thanks.

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Data Driven Econophile. Muslim, USA born. Been “woke” 2x: 1st, when I realized the world isn’t fair; 2nd, when I realized the “woke” people are full of shit.

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