NEW YORK: A reincarnated version of collateralised debt obligations, backed by both high-yield bonds and leveraged loans, offers investors some of the best relative-value plays in fixed-income, according to Credit Suisse Asset Management.
So-called hybrid CDOs may be “the cheapest thing in the entire globe with a AAA rating,” Amir Vardi, a structured products portfolio manager at the firm, said on Tuesday while speaking on a panel at Information Management Network’s annual Investors’ Conference on CLOs and Leveraged Loans.