The dislocation in the credit markets has spread to leveraged loans and collateralised loan obligations, says Fitch Ratings in a new report.
“The credit crunch is reshaping the leveraged loan market,” says William May, senior director of Fitch credit market research. “Aggressive loan structures, in particular, will be put to a significant test over the coming year.”
As with all structured finance vehicles, CLO performance is inextricably linked to the performance of the underlying collateral. As