Trend: Historical Number of CLO Deals That Failed ID or/and OC Tests
- 56 Global CLO deals breached ID or/and OC tests based on trustee reports updated by Intex as of 21 April 2021.
- While this seems like a great improvement as compared to 99 of the deals one month ago, one would also expect more deals to have cured their tests after payment dates (most deals pay in Jan, Apr, Jul and Oct).
- 2014 vintage deals represent close to half of the 56 deals.
- Only 2 managers saw 5 or more of their (seasoned and largely deleveraging) deals breaching ID or/and OC tests currently.
- At the peak of the crisis, 31 managers had at least 5 deals breaching ID or/and OC tests.
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The information, research, data, research related opinions, observations and estimates contained in this document have been compiled or arrived at by CLO Research Group, based upon sources believed to be reliable and accurate, and in good faith, but in each case without further investigation. None of CLO Research Group or its service providers; authorised personnel, or their directors make any expressed or implied presentation or warranty, nor do any of such persons accept any responsibility or liability as to the accuracy, timeliness, completeness or correctness of such sources and the information, research, data, research related opinions, observations and estimates contained in this document. All information, research, data, research related opinions, observations, and estimates in this document are in draft form as of the date of this document and remain subject to change and amendment without notice. Neither CLO Research Group nor any of their third-party providers shall be subject to any damages or liability for any errors, omissions, incompleteness or incorrectness of this document. This article is not and should not be construed as an offer, or a solicitation of an offer, to buy or sell securities and shall not be relied upon as a promise or representation regarding the historical or current position or performance of any of the deals or issues mentioned in it.
