Investcorp debt boss eyes post-pandemic CLO 3.0 era

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By Owen Sanderson
27 May 2020

CLOs structured in the post-pandemic world will see tighter documentation, but more flexibility on ratings, as the market adapts to the lessons learned through the Covid-19 crisis and ushers in a new ‘CLO 3.0’ era for the European market, according to Investcorp Credit Management boss Jeremy Ghose.

All the CLOs coming to the European market since March have been deals from warehouses open before the crisis, and have adapted to tougher market conditions for CLO liabilities by offering shorter reinvestment periods, smaller deal sizes, and lower leverage.

“The warehouses that got affected in this crisis are ...

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