CLO funds ("Collateralised Loan Obligations") are structured vehicles where loans are packaged and sold mostly to professional investors.

And I always thought clo was a unit used for measurement of thermal comfort. However, if these little buggers go off, the owners will surely feel the heat.

In Shakespeare's "Twelfth Night: or, What you will", Clo: was the abbreviation of the Clown (or fool) character. Seems very appropriate in regard to the professional investors who bought these CLOs.