Fund manager finds impact of oil defaults on CLO equity is limited

An investor has been analysing the impact of stress in the oil sector on its portfolio of CLO equity and mezzanine notes - and finds that there are no immediate concerns

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Comment by: Anonymous. Posted 4 years ago [2014-12-21 15:03:09]

If I were Carador, I would not say or imply to investors that there will be "no material change in the estimated IRRs." Assuming the maths of that statement is correct, all it says is that defaulting 10% of oil exposure does not have significant impact. That's not an impressive stress.