New York, July 29, 2016 -- Some Moody's-rated US CLO 2.0s are losing trading flexibility due to deterioration in the credit quality of leveraged loans, combined with diminished spreads, Moody's Investors Service says in a new report. Worsened leveraged loan credit quality and lowered spreads has recently led a number of collateralized loan obligations (CLOs) to fail either their WARF or WAS covenants.

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