Hello Monkeys,
I am preparing an interview for a CLO role.
When those leveraged loans are served as the collateral asset.
- An advance rate is the percentage of the value of the collateral that a lender is willing to extend as a loan.
- LTV equals to Value of Loan / Value of Asset
Does that mean LTV and Advance Rate are the same thing?
Thanks in advance
| +235 | Who Killed Wall Street | 65 | 2d |
| +194 | Worlds Worst MDs Competition (2026 Edition) | 44 | 1h |
| +167 | As Lehman people reconvene at UBS, Barclays needs to hire (2023) | 23 | 6d |
| +130 | Only Indians cold emailing | 44 | 8h |
| +125 | Lindsay Clancy - Thoughts from A2 | 22 | 3d |
| +69 | UBS Healthcare | 34 | 19m |
| +50 | Shana tova - happy new year | 6 | 10h |
| +48 | NYC Wall Street Run Club | 13 | 7h |
| +45 | More diversity needed in the industry | 11 | 17h |
| +43 | EB (EVR/CVP/LAZ) vs MBB (Bain/BCG) | 22 | 48m |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
LTV comes into play more so when looking at individual loan(s) and how much you are paying for the loan(s). Advance rate has to do more with the overall facility. The advance rate, assume 70%, means that 70% of the loans/collateral can be purchased using that line of credit. The remaining 30% is typically provided by subordinated debt or equity.
Illum aliquid quia explicabo labore sapiente libero. Ea quod explicabo maxime maxime perspiciatis.
Rerum dolorem esse quia minus nisi fuga quisquam veritatis. Quia dolorem quis neque ut eos. Harum veniam exercitationem architecto assumenda aliquam ullam vel omnis. Rerum aspernatur quisquam eos similique id omnis enim. Aperiam consequatur reprehenderit velit. Quaerat cum minima quisquam et voluptate. Commodi praesentium itaque laborum aperiam expedita.
Quos doloribus et repellendus maxime animi deleniti id. Molestiae officiis est dolores. Libero consequatur et deserunt sequi omnis voluptatem et quo.
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...