Managers condense, split CLO warehouse to deal with Covid stress

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By Paola Aurisicchio
14 Sep 2020

Faced with a difficult leveraged loan market and volatility in CLO debt spreads, managers through the Covid crisis have often shortened the duration or split their warehouses to deal with the stress brought on by the pandemic, according to a study from Maples Group.

A report published by Maples earlier this summer looked at more than 70 warehouses administrated by the fiduciary service team for 46 CLO managers. It drew attention to the range of complications for CLO warehouses, highlighting that while 75% of warehouses survived the crisis, 18% suffered margin calls and ...

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