BlueMountain Sees ‘Mid-Teens’ Returns in Riskiest Slice of CLOs
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BlueMountain Capital Management LLC predicts returns in “the mid-teens” from the riskiest pieces of junk-loan pools at a time when corporate bonds are paying record-low yields.
“We still like CLO equity,” Stephen Siderow, BlueMountain’s president, said at the Bloomberg Hedge Fund Summit in New York today, referring to the portions of collateralized loan obligations that are the first to absorb losses. “We like it because we like the loan asset class relative to unsecured bonds.”