As Moody’s notes, constraints within collateralized loan obligation (CLO) documentation are weakening, a trend driven by market forces similar to those that have led to the proliferation of covenant-lite (cov-lite) loans in recent years. This weakening, relative to the earliest CLO 2.0 structures, has intensified and reflects a series of changes that affect collateral quality … Continue reading ‘Cov-loose’ CLOs expand risks for noteholders (here we go again!) →
The post ‘Cov-loose’ CLOs expand risks for noteholders (here we go again!) was originally published at The Wall Street Examiner. Follow the money!