Marathon Asset Management LP Chief Executive Officer Bruce Richards said the firm is seeking to capitalize on a regulation, which goes into effect next year, that he sees forcing half of collateralized loan obligation managers out of the market. (iglobalforum.com)
The unit, the chief investment office (CIO), has been the biggest buyer of European mortgage - backed bonds and other complex debt securities such as collateralized loan obligations in all markets for more than three years... The unit made a deliberate move out of safer assets such as US Treasuries in 2009 in an effort to increase returns and diversify investments.» (hussman.net)
Instead, a good portion of Valeant's debt is held by collateralized loan obligations, or CLOs, essentially loan funds that buy and hold lower credit debt. (fortune.com)