SEC spots clouds on CLO market horizon

By Paola Aurisicchio
14 Oct 2020

November’s US election and regulatory issues are major concerns for the US CLO market, together with another possible wave of defaults in leveraged loans, the SEC has said.

“Defaults could adversely affect CLO prices and potentially create defaults in the lower rated tranches of the CLO securities,” warned the SEC in a report.

The SEC was broadly positive the leveraged loan market in its report, but concluded that market participants must remain cautious in the face ...

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