CLO managers maneuver to protect deals from expected bankruptcies

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By Paola Aurisicchio
29 Apr 2020

CLO managers are moving to bake additional flexibility into deal documents, looking to bolster structures against any potential wave of bankruptcies among leveraged loan borrowers.

Since the end of March, the CLO market has been characterized by the issuance of static and shorter duration reinvestment deals, with one to three years of active management versus the traditional four to six years for most deals before coronavirus.

The new shorter deals mostly maintain standard documentation, ...

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