Second-Lien Exposure Rising for US CLOs
Banking & Financial Services / United States / Tue 24 Apr, 2018
Second-lien exposure in US broadly syndicated loan (BSL) collateralized loan obligations (CLOs) is on the rise after a decline since the latest peak in mid-2015. Recently launched US CLOs rated by Fitch Ratings have been building in higher limits for second-lien exposure, likely for flexibility to manage weighted average spread (WAS) pressures.
S