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EU CLOs: Annualised Prepayment Rates During Post-RP by Manager

The rate of paydown for CLO-rated debt after the conclusion of the reinvestment period (RP) is influenced by several factors. These include the behaviour of the CLO manager, prevailing market conditions, and specific terms detailed in the CLO’s post-RP documentation (such as coverage tests, WARF tests, CCC limits, Weighted Average Life (WAL) tests, asset maturity…

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