Lack of CLO ratings transparency damages credibility

By Tom Brown
04 Aug 2020

Rating agency reviews of CLOs are not resulting in mass downgrades in Europe. That has caused some to question what is going on given the damage the coronavirus pandemic and lockdowns must surely have had on certain sectors of the economy that some CLOs are exposed to. Some transparency around ratings metrics would help soothe the angst.

April saw over 1,000 CLO tranches placed on negative watch or outlook in Europe as the pandemic led to lockdowns far and wide across the continent.

Now that those reviews are coming to an end, investors are finding the majority of euro tranches have suffered ...

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