4 ms·
They are being sold to retail through close ended funds. Https://www.reuters.com/article/us-intervalfunds-loans/new-interval-funds-offer-alternative-investment
by pmart123 8y ago
They are being sold to retail through close ended funds.
Https://www.reuters.com/article/us-intervalfunds-loans/new-interval-funds-offer-alternative-investments-to-retail-investors-idUSKBN1IC290
https://www.bloomberg.com/opinion/articles/2018-07-10/clos-have-hit-a-peak-when-mom-and-pop-show-up https://www.bloomberg.com/opinion/articles/2018-07-10/clos-h...
- whatok 8y agoThe AUM of CLO CEFs are minuscule vs overall CLO market. The two highlighted in that article's graph have a combined AUM of less than $600mm while the overall CLO market has more than $600bn outstanding. CLOs are not being sold directly to retail and it's very misleading to bring up CEFs without mentioning the size of these funds.
- pmart123 8y agoIt's true the total CEF AUM is small, I don't think it is misleading because they still are being sold to retail at the end of the day even if the AUM is less than $1B. MLP's also started small too. The overall leveraged loan market for retail investors is much larger though as far as I am aware. https://ftalphaville.ft.com/2018/11/20/1542706123000/Who-s-buying-leveraged-loans-anyways-/ https://ftalphaville.ft.com/2018/11/20/1542706123000/Who-s-b...