You are viewing a single comment's thread.

view the rest of the comments →

0
1

[–] derram 0 points 1 point (+1|-0) ago 

https://archive.fo/rw4dS :

CLO Machine Is Approaching Full-Tilt, and Credit Quality Suffers - Bloomberg

'Some money managers believe CLO issuance this year will fall short of the bullish forecasts from banks like Wells Fargo. '

'The end of risk retention is making it cheaper and easier for money managers to put together CLOs, and more have entered the business as a result. '

'Investors are buying CLOs because they are seen as safe: they offer protection against rising interest rates and against losses if loans default. '

'That intense demand is allowing the money managers that put these securities together to sell off pieces of CLOs that by law they previously had to hang on to. '

'With more money from CLOs chasing fewer loans, lending standards are showing signs of eroding. '


This has been an automated message.