In the 2021 edition of the International Comparative Legal Guide to Securitisation, SRZ partners Craig Stein and Phillip J. Azzollini discuss the impacts the COVID-19 pandemic have had on Collateralized Loan Obligation (CLO) markets.

“As economies slowed to the point where growth was negative, resulting in mass layoffs and high unemployment, regulators and governments considered actions to bolster the economy. For CLOs, although interest rates dropped, pricing spreads widened due to the anticipated risk of a global economic slowdown induced by the pandemic.”