Stuart Chapman, director in the investment team at Serone Capital Management, speaks at the European Structured Finance Conference hosted by S&P Global Ratings in September 2018

Summary of panel:

CLOs robust in last recession

Not structured for bull markets only

Cheap liability (if locked in) and good trading should benefit the sub tranche

Loan quality comparable to earlier vintages currently

Cov-lite proliferation may see defaults happening later

Potential increase in dispersion of losses

Don't think loan losses to be as abrupt in next downturn

Path of CLO manager performance

Widening in CLO asset and liability spreads allowing deals to work

 

The S&P European Structured Finance Conference took place on the morning of Thursday 6th September 2018 at Two Temple Place, London.

The event panel discussion focused on; Examining the Current State and Future Outlook For The CLO Market.

More information on the event can be found: http://ratings.spglobal.com/18Q3-EMEA-UKI-SF-Sem-SPStructuredFinanceConference-London-6September_RegistrationPage1.html

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