In recent years, the landscape of Collateralized Loan Obligation (CLO) BB-rated debt has
undergone a quiet but profound transformation. Once viewed as niche instruments offering a
complexity premium to compensate for perceived risk, CLO BB debt is now being re-evaluated
by a new generation of informed, globally diversified investors.
This shift has been accelerated by regulatory catalysts, structural resilience, and evolving market dynamics ushering in an era of stability and broadened appeal. As this paper explores, the coming of age of CLO BB debt signals not just a change in perception, but a redefinition of risk, return, and opportunity in this corner of the structured credit markets.
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