Disputes break out over cure contribution terms

By Hugh Minch

Wednesday, December 19, 2018

CLO market participants are divided over the use of cure contributions — a mechanism that allows majority equity investors to put cash into the CLO to prevent a deal from breaching its overcollateralisation or interest coverage tests. In return for keeping a CLO ticking, sources say equity investors expect to be paid a rate of return of around 20%

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TAGS: Europe CLO North America

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