Libor switch adds to squeeze on CLO equity

By Mike Peterson

Friday, May 05, 2017

An option at the disposal of loan issuers could give CLO equity investors a serious headache

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TAGS: CLO Leveraged loans Performance North America

Comment by: Anonymous. Posted 6 years ago [2017-05-05 21:06:22]

Yes, the benchmark switch option is enigmatic (and may include non-LIBOR rates such as "prime" in the U.S.). I've never known (but also never asked!) why corporate issuers want this complexity of rolling short-term loans.

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