S&P could trigger CSO restructurings, says Morgan Stanley

Tuesday, September 22, 2009

Morgan Stanley says that Standard & Poor’s CDO methodology changes, which will lead to significant downgrades from AAA, are unlikely to force many CLO investors to unwind their holdings

TAGS: Research

Comment by: Anonymous. Posted 14 years ago [2009-09-23 01:15:27]

I think the vision of the future is a CLO and CSO market not dependent on ratings. S&P have really discredited themselves with methodology changes that seem to be driven by a fear of law suits through over rating, rather than any objective criteria. However getting investors to do their own work on deals to understand them before they buy rather than relying on folk like S&P is probably a healthy long term development

Comment by: Anonymous. Posted 14 years ago [2009-09-22 17:42:18]

That doesn't bode well for new issuance. There's no green shoots in the CLO mgmt business...only fading memories.

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