Collateralized loan obligation (CLO) issuance totaled approximately $82 billion in 2013, outpacing 2012 total issuance by more than 50%.  The establishment of private investment funds to invest specifically in CLO securities is likewise on the rise.  This guest article provides a brief overview of CLO transactions, while also outlining certain key issues that funds may wish to consider when investing in CLOs, with a particular focus on investment in the most subordinated tranche of CLO securities, commonly referred to as the CLO “equity.”  The author of this article is Greg B. Cioffi, co-head of Seward & Kissel LLP’s Asset Securitization and CLO Practice Group.  See also “CLO 2.0: How Can Hedge Fund Managers Navigate the Practical and Legal Challenges of Establishing and Managing Collateralized Loan Obligations? (Part Two of Two),” Hedge Fund Law Report, Vol. 6, No. 26 (Jun. 27, 2013).