OPAL CLO Summit | Investor Roundtable: A discussion regarding drivers for future returns of CLO equity

December 4th, 2017

Glacier Lake President and Chief Investment Officer Patrick Daugherty discusses drivers for future returns of CLO equity at investor roundtable. A discussion of topics included:

• Impact of high capital inflows to the leveraged loan and CLO markets
• Deteriorating credit quality
• Scale and impact of covenant-lite and collateral-lite loans
• Recovery rates of 2nd lien defaulted loans
• Overlap of collateral assets within CLO manager platforms (lack of platform diversity)
• Compression of the net spread due to collateral asset refinancing and repricing at a faster rate than liabilities

[ Full Story ]