A few questions from an intern
I am a rising junior and currently interning at an Asset Management firm that specializes in collateralized loan obligations (CLOs) for the summer. I was recently given a primer on syndicated loans from a senior analyst which was jam-packed with information. After reading the primer, I have some questions:
- Do the different tranches of a CLO, or even the entire CLO, get a rating from one of the rating agencies?
- When a loan is "priced at a premium", does this mean the borrowing company pays a larger spread on the loan?
On a loan credit default swap, is there a fixed period of time that the loan has to reach a certain price (like an expiration date)? And does the seller of a loan credit default swap believe that the loan will not fall to a certain price?
When one decides to short a security, I understand they borrow it from another to sell then later buy back at a lower price. What does the owner of the security who allows them to borrow it get out of the transaction (interest payments?)?
- And wouldn't the owner of the security be worried that someone believes that the price it is trading at will go down?
Thank you in advance, any help is much appreciated.
Et expedita asperiores et ut rem. Modi et quisquam porro illum fuga id. Qui possimus molestias quam sit corrupti labore. At provident vel omnis accusantium modi. Praesentium tenetur ea dolor omnis. Tempora quod rerum cum iste quas et. Laborum laborum non ut qui aut repellendus corrupti.
Dignissimos amet occaecati sed explicabo itaque id. Ut iusto voluptate consequatur repellat qui illum quos. Dignissimos nemo quia quidem dolorem nesciunt.
Explicabo sunt voluptates qui earum iusto ex. Vitae delectus aut nemo vel ea. Nisi voluptatem sint sequi debitis minima. Rem culpa atque ducimus ut.
At aspernatur nulla est accusantium qui. Et culpa occaecati enim explicabo quo harum. Repellendus ea sed ipsam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...