Market participants predict slow resurgence of CLOs

By David M Graubard

Friday, February 13, 2009

Opening up a panel on CLOs on Monday at the American Securitisation Forum in Las Vegas, moderator Bill May of Moody's laid out a very thin pipeline of new issue US CLOs

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Comment by: Anonymous. Posted 15 years ago [2009-02-15 04:12:53]

The impact of rising CCC buckets in CLOs is alarming for current holders up and down the capital structure of deals, and given the impact this will have on deal performance over time, does leave a huge question mark around the future viability of a new issue CLO market. However, perhaps the most troubling problem with existing CLOs is the inability of managers to do what they were originally employed to do, which is to protect the credit quality of their portfolios through a rising default environment by trading out of deteriorating credits, and with loans trading in the 60s and 70s they are constrained from doing that in todays market.

CLOs

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