CLO managers boost “diversity” by adding industry categories

Some recent CLOs have increased the number of industries into which they classify borrowers to as many as 70, according to Fitch 

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TAGS: North America Europe Leveraged loans CLO

Comment by: Anonymous. Posted 1 year ago [2017-05-10 19:59:42]

I wouldn't blame the managers if their industry and sub-industry designations are valid. The rating agency diversity models should be able to handle correlated sub-industries.