Examining the Performance of EU CLO Deals with Minimal Post-Reinvestment Prepayment Rates
June 19, 2023
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Low prepayment rates after the reinvestment period can offer significant advantages to CLO equity investors, assuming the underlying portfolio maintains credit performance. A crucial consideration is whether managers are acquiring assets indiscriminately during the post-reinvestment period solely to prolong the lifespan of the CLO vehicle.
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