CLOs weathering the storm but risks still loom, says SEC

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By Paola Aurisicchio
08 Oct 2020

The Securities and Exchange Commission in a report published this week said the agency recognized that the CLO market has fared reasonably well through the crisis, but warned that “disruption brought on by the COVID-19 economic shock is still ongoing" and that their outlook could change.

The report, titled “US Credit Markets, Interconnectedness and the effects of the Covid-19 Economic Shock”,  identified how the “interconnections” among issuers, intermediaries, and holders of credit in different markets contributed to or mitigated risk during and following the Covid-19 crisis. 

The section covering CLOs and leveraged loans offers a broadly ...

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