By Shanny Basar
September 23, 2024
Octaura Holdings, an electronic trading platform for syndicated loans, has launched a new protocol to make the liquidations of collateralized loan obligations far more efficient.
Brian Bejile, chief executive of Octaura, told Markets Media: “CLO liquidations are one of the biggest pain points in the industry.”
CLOs are securities backed by a bundle of loans. Managers consolidate hundreds of loans and then sell portions of a CLO, or tranches, to outside investors. When a CLO reaches maturity and is redeemed, the CLO manager has to liquidate the portfolio and sell hundreds of loans. Bejile explained that this process was manually intensive, with the selling manager sending out a giant spreadsheet of the individual loans and asking for bids.
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