It invests in the equity and
subordinated debt tranches of collateralized loan obligations (CLOs).
Not exact matches
The firm also avoids
subordinated -
debt tranches, which are often wiped out in restructurings and pools with lots of smaller mortgages, because the high fixed closing costs often deter refinancing of such
debt.
I'll toss out this idea: Wall Street creates a bunch of small cap companies to own the assets, and the
tranches, are simply different levels of
subordinated debt.