Thomas Cook is a lesson for CLOs on unsecured bonds, says TwentyFour AM

By Dan Alderson

The liquidation of UK travel operator Thomas Cook this week has underscored that “unsecured debt has no place in CLOs,” according to a note by Aza Teeuwen, portfolio manager at TwentyFour Asset Management

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TAGS: Europe High yield bonds CLO Distressed debt Default TwentyFour

Comment by: Anonymous. Posted 1 month ago [2019-09-26 16:17:46]

A single bond default from a company in a historically money losing industry doesn't taint the prudent use of bonds in securitization vehicles. Teeuwen is throwing the baby out with the bathwater.