In this episode of The Last Tranche, Dan Ko, principal and portfolio manager at Eagle Point Credit Management, discusses the relative value opportunity in the CLO market.

Ko says that his firm has not made a primary market investment in CLO equity since early 2022, in part because the tightness of the equity arbitrage means investors can get higher yields in the debt stack.

Even triple A notes offer more attractive yields than some equity investments, Ko says. Ko also speaks to the cessation of Libor, given the approach of the base rate's cessation in June.