CLOs and lev loans at the center of 2020 Fed stress tests

Federal Reserve 230px
By Paola Aurisicchio
07 Feb 2020

The Federal Reserve announced plans to stress test bank holdings of leveraged loans and CLOs during a hypothetical recession in its annual evaluation of the health of the 34 largest US banks.

The stress test is a simulated scenario that measures how large banks with significant trading operations would fare during a period of market turbulence, with the unemployment rate raised by 6.5%-10% and with elevated stress in corporate debt markets and real estate.

According to a statement from ...

Please take a trial or subscribe to access this content.

Contact our subscriptions team to discuss your access:

Or sign up for a trial to gain full access to the entire site for a limited period.

Free Trial

Corporate access

To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: or find out more online here.