S&P predicts further CMBS and CLO downgrades

Investors should expect further downgrades on European collateralised loan obligations and commercial mortgage-backed securities during 2010, according to rating agency Standard & Poor’s. Future CLO downgrades will reflect an ongoing decline in underlying collateral quality, said Simon Collingridge, a director in S&P’s structured finance division, at a press conference on February 1. Over the last year, downgrades or defaults by financial institutions have given way to a