Which securities are better than collateralized loan obligation (CLO) mezzanine debt for picking up yield and floating-rate exposure? In our humble opinion: None.
Earning a decent yield without too much risk of capital impairment or excessive duration continues to be one of the biggest challenges for investors. Of the few solutions present in the marketplace today, we believe many lie in private credit markets. But the primary one that features securities with limited liquidity is CLO mezzanine debt.
