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January: the Month of ABS-tinence
January is traditionally the month of no fun. From Dry January to Veganuary, the theme is usually based on giving something up.
CLO investors like to talk a lot about arbitrage, or rather the lack of it. Arbitrage is what is left of the monthly interest on the leverage loans in the CLO pool once the liabilities have been paid, and it is the main reason why a growing number of investors have been buying CLO equity in the last 18 months.