CLO default rates and performance.

It appears the rating agencies and the CLOs sponsors and collateral managers are doing something right as the default rates in. These securities are incredibly low there have been zero defaults in the Triple A tranches even Triple A corporate bonds have defaulted many of the defaults in CLOs. Go back to earlier CLO structures when the safeguards were not at the current level. We are currently in version 3.0 of the CLO and this is been in effect since 2014 in the case of double A defaults. There is only been in interest payment default and not a single principle default.

CLOs is structure credit products continue to outperform other assets particularly at higher yielding spectrum of the curve when you compare that to the default rates on the previous slide. You see that the risk adjusted returns are quite strong.