European CLOs weathering downgrade risk

By Tom Brown
04 Aug 2020

Rating agency reviews of CLO tranches which began in April are coming to an end, with the majority keeping their scores in early signals that the sector may avoid a mass of downgrades.

Rating agencies collectively placed more than 1,000 European CLO tranches on negative watch or outlook after new data arrived from trustees in April.

Although 20% of all the outstanding notes remain under review, this has decreased from about 25% in June, according to Bank of America research, as ratings ...

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