CLO Investing with an Emphasis on CLO Equity & BB Notes
Please join us as we dive into the world of Collateralized Loan Obligations (CLOs) with Flat Rock Global! CLOs were left for dead after the Global Financial Crisis (GFC) of 2008-2009. Since then, CLOs have made a surprising comeback. Their popularity among investors is partially the result of impressive CLO performance during the GFC and beyond. CLO notes issued before the GFC did not have material defaults, and many CLO equity securities issued prior to the GFC ended up with annualized returns above 20%. Today the CLO market has over $1 trillion in assets under management and has replaced banks as the largest lender to private equity-backed companies.
Shiloh Bates wrote the book on CLO Investing. Among the topics to be discussed:
1. An overview of the CLO asset class, focusing on the securities with the highest risk and reward potential, CLO Equity and BB notes
2. The characteristics of the CLO’s leveraged loans, financing structure, payment rules and tests, and historical returns
3. An exploration of strategies for successfully investing in this $1 trillion+ asset class
Shiloh Bates, CFA, joined Flat Rock Global in 2018 and is a Partner and Chief Investment Officer. Prior to joining Flat Rock Global, Mr. Bates was a Managing Director at Benefit Street Partners where he worked on corporate acquisitions. Prior to that, Mr. Bates was the Head of Structured Products at BDCA Advisor, where he was responsible for investments in CLOs and leveraged loans.
During his 20-year career, Mr. Bates worked for several CLO managers and is a frequent panelist at CLO conferences. He wrote the book, CLO Investing with an Emphasis on CLO Equity & BB Notes.
A life-long learner, Shiloh has a BA from Virginia Tech in Political Science, an MA in Public Policy from Harvard University, an MA in Financial Mathematics from University of Chicago, and a MA in Statistics from Columbia University. He was also a specialist in psychological warfare in the US Army Reserves.