‘Vacuum cleaner’ CLOs blamed for deteriorating US loan conditions

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‘Vacuum cleaner’ CLOs blamed for deteriorating US loan conditions

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David San Segundo Navas -AVILA-/David San Segundo - Fotolia

US leveraged finance sources have blamed a rampant CLO market for allowing borrowers to run riot in the leveraged loan market with loose covenants and declining underwriting standards, trends that look likely to escalate if leveraged lending guidelines are rolled back, writes David Bell.

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