A collateralized loan obligation (CLO) is a single security backed by a pool of debt. CLOs are often corporate loans with low credit ratings or loans taken out by private equity firms to conduct leveraged buyouts.

A collateralized loan is backed by some form of real estate, equipment, accounts receivables, future credit card payments - all can be used as a guarantee that supports or "backs" the loan.

For “traditional” CLOs, the collateral pool primarily consists of below investment grade, first lien, senior secured broadly syndicated bank loans (usually at least 90% of the total portfolio), and it may include a pre-determined allowable portion of other asset types such as second lien bank loans (which are highly ...

In a refinance (or a partial refinance), typically, the only change is to lower the coupons paid on the notes. A reset is more complex and can include other changes to the deal documentation and terms, including extending the CLO's reinvestment period end date and maturity date, as well as adding a new non-call period.