News Topic: CLOs

... Read full article

Defaults have been milder than expected thanks to government relief and stricter underwriting. But with the crisis dragging on and policymakers unable to agree on a stimulus plan, loans to highly indebted companies remain at risk. ... Read full article

Morgan Stanley’s $7 billion purchase of Eaton Vance marks the latest wager that finding a big partner is critical to survival in the asset management industry. ... Read full article

The Charlotte, N.C., company recently closed on a sale of its Cohen Financial platform to SitusAMC. ... Read full article

An article in The Atlantic warning that collateralized loan obligations will be banks’ next downfall overestimates the risk of these securities. ... Read full article

Lenders stock up on masks, Plexiglas barriers and cleaning supplies; lawmakers hope recent fixes will attract more borrowers, but small businesses remain wary after constant changes. ... Read full article

COO says bank is on track to meet growth targets but expects more consumer lending losses; the mortgage agencies’ ability to raise $240 billion in capital before going private won’t be easy. ... Read full article

But market observers remain unsure whether changes to the $100 billion Term Asset-Backed Securities Loan Facility program will boost CLO investor demand or new-deal issuance, given key restrictions that remain in place. ... Read full article

Midsize businesses and state and local governments are among the beneficiaries of the central bank's latest $2 trillion effort to mitigate the economic damage caused by the coronavirus pandemic. ... Read full article

Banks may be protected from a direct hit, but they have invested in vehicles that include such loans, potentially exposing them to defaults. ... Read full article

Regulators are alarmed about banks' rising exposure to high-risk corporate credits and want more data on how they would perform in a recession. ... Read full article

States are just beginning to regulate cryptocurrency as a credit collateral for lenders. More can be done. ... Read full article

Members of the House Financial Services Committee cited leveraged lending, cybersecurity and the switch to a new interest rate benchmark among potential systemic risks that keep them up at night. ... Read full article

Federal Reserve Chairman Jerome Powell says the agency is closely monitoring leveraged lending risks, but suggests further regulations on banks aren’t warranted. ... Read full article

Although higher corporate debt could hurt the economy, Federal Reserve Chair Jerome Powell argued changes made since the last crisis will guard against a meltdown. ... Read full article

An industry working group might seek legislation to eliminate the need for investor consent in the shift to a new benchmark interest rate. But any legislative fix is almost certain to be challenged because choosing an alternative to Libor will inevitably ... Read full article

CEO Corbat says “thousands” of call center jobs may be lost; Barclays shareholder sells all stock in the bank and Deutsche’s biggest slashes its stake. ... Read full article

The Fed wants more information on Treasury and mortgage-backed securities; will overlook compliance failures resulting from pilot programs. ... Read full article