COLLATERALIZED LOAN OBLIGATIONS

Risk-adjusted returns hard to find anywhere else

Collateralized Loan Obligations (CLOs) can offer a compelling combination of attractive returns with limited risk — creating a more efficient way to invest.

WHAT IS A CLO?

A CLO is a securitized portfolio of senior-secured corporate loans

CLOs distribute quarterly income to investors as the 100+ underlying loans make interest payments.

Senior-secured loans pooled into a CLO

Asset managers typically purchase 200+ senior-secured corporate loans to form a CLO.

Investors allocate to tranches

To fund the purchase of the loans, the manager sells stakes in its CLO to debt and equity investors.

The debt portion of the CLO is organized into multiple levels, known as tranches, that investors can select from. A final equity tranche sits at the bottom.

Earn quarterly income

As loans in the CLO distribute principal and interest, cash flows from the top tranche down on a quarterly basis.

Not until all interest owed to the AAA tranche is paid does AA receive payments, and so on.

Outperform traditional fixed income

The BBB and BB tranches that our Funds target historically offer higher yields than similarly rated corporate bonds and other structured products.

Near-zero default rates

Historically, the CLO structure has proven to be extremely resilient through multiple market cycles.

Uniquely wide credit spreads

Wider spreads, a measure of credit risk, allow CLOs to be purchased at a potential discount. As spreads normalize, CLO resale prices are expected to rise.

KEY BENEFITS

Access diversified Funds of CLOs

Yieldstreet offers Funds of BBB and BB CLO tranches.

Diversified collateral

Each CLO is collateralized by 200+ senior secured loans issued by companies with typically $100M+ of EBITDA.

Ultra-low default rates

The BBB and BB tranches have average default rates of 0% and 0.4%, respectively.

Top-tier managers

The Funds will only purchase CLOs structured by prominent asset managers such as Blackstone and Goldman Sachs.

The first private market platform to offer CLOs

We have partnered with Prytania Asset Management as the sub-advisor for our Diversified CLO Funds.

$1T+

CLO market globally¹³

$2.2B+

Prytania AUM

20 yrs

Prytania years in business

Get started with CLOs

Our first Diversified CLO Portfolio is expected to offer exposure to two BBB CLOs and one BB CLO. Each CLO in the portfolio provides exposure to 200+ underlying loans (600+ total).

Dive deeper

How CLOs work

These slides explore the fundamentals of CLOs and how the unique tranche structure helps protect investors.

View slides

The opportunity in CLOs with Prytania Asset Management

Mark Hale, CEO and CIO of Prytania, joined Yieldstreet to discuss the benefits of CLOs for investors.

Watch video

CLOs vs. other investment products

See how CLOs compare to various fixed income and structured products.

Explore the differences

Past performance is not indicative of future performance.

9. Source: Yieldstreet, Prytania Asset Management, JPMorgan, as of 7/31/2023. Data is from the period beginning 12/31/2011. CLOs are represented by the JPMorgan CLO Index, Investment Grade by the JPMorgan US Liquid Index, High Yield by the JPMorgan Domestic High Yield Index and Leveraged Loans by the JPMorgan Leveraged Loan Index.

10. Source: Yieldstreet, Prytania, JPMorgan, as of 7/31/2023. CLO BBB/BB is represented by a custom index of 60% JPMorgan CLO BBB Index and 40% JPMorgan CLO BB Index. CLOs are represented by the JPMorgan CLO Index, Investment Grade by the JPMorgan US Liquid Index, High Yield by the JPMorgan Domestic High Yield Index and Leveraged Loans by the JPMorgan Leveraged Loan Index.

11. Source: S&P Global CLO Spotlight: U.S. CLO Tranche Defaults as of 4/1/2023.

12. Source: Yieldstreet, Prytania Asset Management, JPMorgan, as of 7/31/2023. Data is from the period beginning 12/31/2011. CLO BBB/BB is represented by a custom index of 60% JPMorgan CLO BBB Index and 40% JPMorgan CLO BB Index.

13. Source: JPMorgan. As of Nov 2022.

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¹ Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in significant losses.

² Represents an net annualized return, using an internal rate of return (IRR) methodology, with respect to the matured investments shown in your Portfolio experience, utilizing the effective dates and amounts of subscriptions and distributions to and from the investments, net of management fees and all other expenses charged to the investments.[read more]

³ "Annual interest," "Annualized Return" or "Target Returns" represents a projected annual target rate of interest or annualized target return, and not returns or interest actually obtained by fund investors. “Term" represents the estimated term of the investment; the term of the fund is generally at the discretion of the fund’s manager, and may exceed the estimated term by a significant amount of time. Unless otherwise specified on the fund's offering page, target interest or returns are based on an analysis performed by Yieldstreet of the potential inflows and outflows related to the transactions in which the strategy or fund has engaged and/or is anticipated to engage in over the estimated term of the fund. There is no guarantee that targeted interest or returns will be realized or achieved or that an investment will be successful. Actual performance may deviate from these expectations materially, including due to market or economic factors, portfolio management decisions, modelling error, or other reasons.

⁴ Reflects the annualized distribution rate that is calculated by taking the most recent quarterly distribution approved by the Fund's Board of Directors and dividing it by prior quarter-end NAV and annualizing it. The Fund’s distribution may exceed its earnings. Therefore, a portion of the Fund’s distribution may be a return of the money you originally invested and represent a return of capital to you for tax purposes.

⁵ Represents the sum of the interest accrued in the statement period plus the interest paid in the statement period.

⁶ The internal rate of return ("IRR") represents an average net realized IRR with respect to all matured investments, excluding our Short Term Notes program, weighted by the investment size of each individual investment, made by private investment vehicles managed by YieldStreet Management, LLC from July 1, 2015 through and including July 18th, 2022, after deduction of management fees and all other expenses charged to investments.

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⁹ Statistics as of the most recent month end.

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