Rip up docs to beat market pain, urge US CLO managers

By Paola Aurisicchio
13 Aug 2020

As the economic effects of the coronavirus pandemic ripple through capital markets and defaults pile up, CLO managers are scrambling to alter deal structures to cope with heightened risk and to take advantage of new opportunities. Paola Aurisicchio reports.

CLOs set minimum prices at which loans for the structures can be purchased, often 60-65 cents on the dollar. With many loans having traded as low as in the 50s during the March sell-off, CLO managers are pressing to reduce the minimum price to as low as 50 ...

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