Feb. 14 (Bloomberg) -- Bank of America Corp. is raising a $413 million collateralized loan obligation to be managed by Credit Suisse Asset Management, according to two people with knowledge of the deal.
The CLO includes a $252.5 million slice rated AAA by Standard & Poor’s, said the people who declined to be identified because the terms are private. The fund also includes a $48.5 million piece rated AA that has initial price guidance of 300 basis points more than the London interbank offered rate, the people said.
CLOs are a type of collateralized debt obligation that pool high-yield, high-risk loans and slice them into securities of varying risk and return.
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