CLOs & Structured Credit

Highlights

• 16 Dec 2021
  • Structured Finance – Global: 2022 Outlook — Strong asset performance will continue despite COVID-19 uncertainty
    Structured finance transactions will be subject to the effects of both temporary and permanent changes in 2022 as economic growth persists despite the ever-looming threat of COVID-19 variants. Changes to consumer and corporate spending patterns stemming from pandemic-related disruptions will affect transaction credit quality and performance. Meanwhile, many consumers have improved their financial positions via increased savings since 2020, while companies have taken on more debt.   Full Report​
• 30 Nov 2021
  • CLOs – EMEA: 2022 Outlook – Credit quality and performance will remain strong
    Current trends in leveraged lending, CLO documentation and performance will continue into 2022, with issuance set to remain strong. Collateral quality in new CLOs will improve, reflecting ongoing improvement in corporate credit quality. Structural features in new CLO transactions will be the same as those in pre-pandemic deals, with some evolution fostering flexibility. Meanwhile, ESG considerations will proliferate.   Full Report​
  • CLOs – US: 2022 Outlook – Loan structures will weaken, but note performance will be strong
    Current trends in leveraged lending and CLO documentation and performance will continue in 2022. Loan structures will continue to weaken while basis risk will rise following Libor’s demise. Meanwhile, with issuance strong, ESG provisions will proliferate and managers will continue seeking structural flexibility.  Full Report​​​​​