Bankruptcies compound stress for embattled US CLO market

Paola Aurisicchio

May 21, 2020 07:00 PM

volatility_PA_575x375_17April2020 — (200227) -- NEW YORK, Feb. 27, 2020 (Xinhua) -- An electronic screen shows the trading data at the New York Stock Exchange in New York, the United States, Feb. 27, 2020. U.S. stocks closed sharply lower on Thursday as investors fled the stocks market and flocked into safe-haven assets. The Dow Jones Industrial Average fell 1,190.95 points, or 4.42 percent, to 25,766.64. The S&P 500 was down 137.63 points, or 4.42 percent, to 2,978.76. The Nasdaq Composite Index was down 414.29 points, or 4.61 percent, to 8,566.48. (Xinhua/Wang Ying) | Wang Ying/Xinhua News Agency/PA Images

A gathering storm of bankruptcies among US retailers rolling in behind a swelling wave of loan defaults is bringing distress to the US CLO market, forcing both managers and investors to adjust their approach, writes Paola Aurisicchio.

Unlock this article.

The content you are trying to view is exclusive to our subscribers.

To unlock this article:

Request demo or Login

✔ 4,000 annual insights
✔ 700+ notes and long-form analyses
✔ European securitization issuance database
✔ Daily newsletters across markets and asset classes
✔ 1 weekly securitization podcast

Topics

Securitization LevFin Securitization - CLOs LevFin - CLOs

PA

Paola Aurisicchio