EU political risk could ease CLO squeeze

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By David Bell
21 Mar 2017

Looming macro risks and political turmoil could weigh on loan prices, potentially easing the squeeze on CLO equity investors at the bottom of the capital structure, said analysts at Prytania Investment Advisors this week.

CLO equity investors have felt the pinch in forward looking returns in recent months, as leveraged loan yields have fallen to post-crisis tight levels, putting pressure on the weighted average spreads and arbitrage in CLO structures.

But in a research note on Tuesday, the Prytania analysts said that ...

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