Impact of leveraged lending guidance on CLOs uncertain

By Will Caiger-Smith
21 Aug 2014

New leveraged lending guidelines issued by US regulators could change the make-up and risks of CLO portfolios, as non-traditional lenders move into the market to make up for lower lending volumes from more highly regulated banks, according to Moody's.

This potential change is the “biggest uncertainty” in the outlook for CLO portfolios, analysts at the credit rating agency wrote this week.

As the Federal Reserve, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation home in on leveraged lending and hold banks ...

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