Comment by: Anonymous. Posted 15 years ago [2009-02-18 15:09:20]

although the way that a number of CLO managers talk they are so ahead of the ratings agencies that these downgrades should be well anticipated...

Comment by: Anonymous. Posted 15 years ago [2009-02-18 09:40:13]

The problem with the CCC bucket test in Europe is that most credits are shadow-rated - it is therefore very difficult to predict when the downgrades might come, and following past experience the agencies tend to downgrade en masse rather than as and when they see an issue in the particular credit. There could therefore easily be a stack of downgrades to CCC about to hit the European market and very few people would have the information to know that it was coming.