Copying and distributing are prohibited without permission of the publisher.

Watermark

Loan repricing accelerates but can CLOs keep up?

CLOs
By Owen Sanderson, Tom Brown
16 Jan 2020

Some of the largest issuers in the leveraged finance universe are repricing their loans, cutting 50bp or more from their margins on the back of strong market conditions and proven performance since the loans were raised. That is putting pressure on CLO managers and equity holders, whose liabilities are tightening too, but more slowly, blocking repricing of the bonds and squeezing returns, write Owen Sanderson and Tom Brown.

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free Trial
By Owen Sanderson, Tom Brown
16 Jan 2020