Pandemic boosted CLO resistance to distressed fund predation

Covid_fight_575px_Adobe_26June20
By Paola Aurisicchio
31 Mar 2021

The Covid crisis has made the CLO market stronger and more attractive to investors, but it has also taught the CLO community to defend itself from distressed debt funds, agreed panellists at the IMN and FIIN conference in the session focused on the CLO market recovery.

Last year, CLO managers started to seek more influence on the outcome of restructurings, baking additional flexibility into deal documents to avoid being blindsided by more flexible distressed debt funds better equipped to extract value from corporate restructuring negotiations.

Debt and equity investors at the conference emphasized ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial