Collateralised Loan Obligations (CLOs): What are they, common misconceptions and their role in portfolios?
INTERVIEWSERIES
Cathy Bevan, Head of Structured Credit, BSP-Alcentra (Franklin Templeton)
June 2025
In this exclusive interview Cathy discusses what Collateralised Loan Obligations (CLOs) are, how investors use them in portfolios and the common misconceptions often cited, including the many lessons learned throughout her career navigating global markets and the key to achieving long-term success in the asset class.
Watch the full interview which covers:
0:19 - What are CLOs and how do investors use them in portfolios?
1:41 - What are the common misconceptions about CLOs?
3:37 - How does having a global approach to investing in CLOs set your team up for success?
5:24 - What are the key benefits of an opportunistic fund that invests in third party CLOs compared to a captive equity fund?
9:44 - When investing in CLOs, how do you assess risk in the underlying collateral portfolios?
11:45 - Why is it important to assess the style and performance of CLO managers?
15:23 - What is your top lesson learned from your significant experience as a CLO investor?
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Cathy Bevan, Head of Structured Credit, BSP-Alcentra (Franklin Templeton)
Cathy is Head of Structured Credit and a Portfolio Manager for BSP-Alcentra’s structured credit funds overseeing investments in structured products, with a particular focus on CLOs. She has expertise investing across EU and US senior, mezzanine, equity CLO tranches as well as CLO warehouses.
Cathy joined BSP-Alcentra’s structured credit team in July 2012. Before joining Alcentra she worked at Citigroup as a member of the structured credit team, responsible for originating and structuring CLO transactions. Prior to this she performed a similar role at CIBC World Markets as part of the CLO/CDO structuring desk.
Cathy graduated with a First Class Honours degree from the University of Warwick in Mathematics and Statistics.
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