CLO is an acronym for Collateralized Loan Obligation. A CLO is a special purpose vehicle created to hold a portfolio of floating rate corporate loans. A CLO usually funds the purchase of its portfolio by issuing long-term debt, and seeks to capture the spread between the aggregate portfolio income and the cost of the liabilities issued. Generally, the debt instruments purchased for the CLO portfolio and the debt tranches issued by the CLO are rated by Standard & Poors and Moody’s.

Navigare’s portfolios invest primarily in senior, secured floating rate loans to corporate borrowers.