“CLOs have proven to be resilient: leveraged loan secondary markets recovered quickly from the turmoil in March 2020, led by a rally in higher quality credits before extending to lower rated and covid-battered sectors beginning in 4Q 20”. This summary from FTSE Russell, the index specialist and subsidiary of the London Stock Exchange, speaks to the strong performance of the collateralised loan obligation market during the pandemic.
How the CLO market defies the critics
Active management is crucial in times of market volatility and has allowed collateralised loan obligations to keep flourishing.
