A $158 Billion CLO Bet Is Putting the Insurance Industry at Risk
- Insurers have dramatically boosted CLO assets in recent years
- Athene, American Equity among most exposed to lower-rated debt
Photographer: Angela Weiss/AFP via Getty Images
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They’ve been billed as a solution to the rock-bottom interest rates weighing down the returns of America’s asset managers.
Collateralized loan obligations -- which package and sell leveraged loans into chunks of varying risk and return -- promise safety and higher yields.