Latest / The High Net Worth Podcast with Fexingo: Wealth Management, Tax Strategy, and Affluent Finance
How Wealthy Families Use Collateralized Loan Obligations for Yield
Episode 76 of The High Net Worth Podcast dives into a niche but powerful fixed-income vehicle: collateralized loan obligations, or CLOs. Lucas and Luna explain how ultra-wealthy families use CLO tranches to capture yields of 8–12% in a low-rate environment, while managing default risk through structural subordination. They walk through a real-world example: a $500 million CLO issued in early 2026, backed by 150 leveraged loans, and how a family office allocates capital to the AAA-rated senior tranche for stability or the equity tranche for higher upside. The hosts discuss the role of the CLO…
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