Manager moves to amend docs to stop principal payments to equity

Wednesday, July 25, 2012

Three CLOs managed by Goldman Sachs have had their ratings put under review by Moody’s after a quirk in their structure resulted in equity investors receiving principal payments whilst the CLOs’ debt remain outstanding.

Comment by: Anonymous. Posted 11 years ago [2012-07-26 01:31:36]

In this unusual deal, one would think this waterfall behavior would have been obvious at the drafting and marketing (and rating) stage. How could everybody miss it?

CLOs

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