Banks intensify margin calls for CLO warehouses
Banks have started sending CLO managers notice to post more collateral against open warehouses after prices of the underlying leveraged loans dropped steeply to an average of about 76 cents this week, according to market sources.
Margin calls have picked up in the last two weeks as loans prices declined, creating complications for CLO warehouses and challenges for managers, who are being asked to post additional collateral or be forced to extend or liquidate the warehouse.Banks that provide financing facilities are demanding ...
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