Euro CLOs risk switching to semi-annual payments

Radio_AdobeStock_575x375_02June20
By Tom Brown
02 Jun 2020

European corporates are asking lenders to switch their loans to semi-annual interest payments, in some cases, which could feed through to CLO coupons as well.

During periods of stress, leveraged loans can switch from paying quarterly or monthly to semi-annually if the issuer needs to conserve cash.

CLO 2.0 transactions include a trigger so that if a sufficient portion of the portfolio switches from quarterly payments to less than quarterly, then the ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial