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