Tetragon reveals a 2012 CLO investment in strong second quarter results

Wednesday, August 01, 2012

Tetragon has announced its second quarter results in which strong US CLO performance has helped the firm generate $110 million of income from its CLO equity investments.

TAGS: CLO

Comment by: Anonymous. Posted 11 years ago [2012-08-02 01:49:13]

You've got to admire the high-risk / high-return pure play on US corporate credit. Regarding return, the current yield on this $1.2 billion portfolio is greater than 30%. The risk is the (CLO equity) structural leverage on leveraged loans .... "leverage on leverage" as they say. This strategy can have only two outcomes: sensational or disastrous.

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