Emerging CLO feature to gain popularity in 2020

CLOs
By Paola Aurisicchio
17 Dec 2019

CLO market participants are eyeing the growing use of a structural feature seen for the first time in 2019, as a class of notes designed to hedge refinance risk are expected to increase in popularity over the next year.

Mascots — modifiable and splittable/combinable tranches — have been around since the middle of 2019, but are being looked at as an enticing option that more investors may ask for in new deals during 2020. 

They have slowly increased in popularity. CLO market participants said that investors have been making ...

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