Asset Classes

BSL

Also known as: broadly syndicated loans, broadly syndicated loan

status: draft

Broadly syndicated loans. Leveraged loans originated by banks and distributed to a wide base of institutional investors (CLOs, loan funds, insurance companies). Typically rated, liquid, and traded in the secondary market. BSL CLOs are the largest CLO category.

What to watch

BSL collateral is standardized and priced transparently via LSTA/LPC marks. This is both an advantage (liquidity, price discovery) and a constraint (less alpha from selection). BSL CLOs compete primarily on structure and liability cost rather than collateral sourcing. Compare to middle-market CLOs, where the collateral is more idiosyncratic and less liquid.

Referenced in 6 topics

Broadly syndicated loan CLOs asset-classes Collateralized loan obligations (CLOs) structures Middle market CLOs asset-classes Private placement / bespoke structures structures Risk retention rules legal Volcker Rule implications legal