BlackRock (BLK), Carlyle (CG), Benefit Street Partners, and Oak Hill Advisors are acquiring pools of debt to launch collateralized loan obligations, Bloomberg reported Tuesday, citing people familiar with the matter.

The firms have been buying discounted loans to software, insurance, wealth management and real estate companies, ensuring higher effective yields while paying out the same coupon rates, the report said,

Better payouts may make the securities more appealing to investors, the report said,

Carlyle and BlackRock did not immediately reply to MT Newswires' request for comment.

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