What is a Cash Flow CLO?

Cash Flow CLOs – A Peek Under the Financial Hood

Where loans meet innovation

A cash flow CLO (Collateralised Loan Obligation) is a clever bit of financial engineering. It’s like bundling a group of loans (usually senior secured loans) into a single package and selling slices of it—called CLO notes—to investors. The magic? The value of these slices is tied to the cash flows from the loans, such as interest and principal repayments.