Global CLOs

Structures Adapt in the Wake of the Pandemic

  • Default rates will rise further before declining in 2021, with recovery rates set to decline CLO structures will pursue a range of flexibility in order to help manage assets under stress. 
  • Subordination and other structural features help protect investment grade CLO tranches against performance deterioration. 
  • Pandemic will intensify the focus on environmental, social and governance (ESG) factors.

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