>What is "Triple A CLO paper" you might ask? Well, it's any loan(s) made to a company with triple A credit This is not exactly right. A CLO is a collateralized

>What is "Triple A CLO paper" you might ask? Well, it's any loan(s) made to a company with triple A credit This is not exactly right. A CLO is a collateralized loan obligation. It's essentially a company that holds the loans of many other companies. Those companies may be highly or poorly rated. The CLO finances it's loans by borrowing from investors (by issuing securities). The different securities take losses in different ways if the underlying loans go bad. One class of securities losses money as the loans go bad, then once they are wiped out, the next class takes losses and so on. The last group to take losses is the triple-A CLO paper you referred to. It loses money only if >X% of the underlying loans in the company go bad, and thus is the most highly rated, assuming X is a sufficiently large number in relationship to the quality of the underlying loans. Typical buyers of AAA CLO paper are insurance companies etc. And yes, this is the very much like the structure that caused so much pain in the last crisis when it was filled with mortgages.