CLO manager changes have been operationally smooth, says Moody's

CLO manager changes have been entirely smooth from an operational perspective, points out Moody's in the latest issue of its CLO Interest newsletter. It points out that there have been no interruptions to any cashflows or portfolio management as a result of manager changes, nor even as a result of manager bankruptcy or debt restructuring.

The rating agency points out that there have been no operational issues as a result of the bankruptcy filing of GSC Group in September 2010, nor as a result of American Capital's problems. American Capital, which manages a number of mid-market CLOs, faced a payment default on its own $2.4 billion debt and ended up agreeing a debt restructuring with its lenders in June 2010.