CLOs – US: Curbing “net short debt activism” reduces risk of non-credit-related defaults
October 28, 2019 (7.39mins)
Aaron Johnson, Sam Spackman
Aaron Johnson and Sam Spackman from the Structured Finance team discuss the recent push to curb net short debt activism in the high yield market, and its potential impact on collateralized loan obligations.
CLOs – US: Efforts to limit “net short debt activism” reduce idiosyncratic risk for CLOs
Provisions thus far generally limit investors with net-short positions from exercising their voting rights or calling a default on the issuing company.