A Look At Rising U.S. BSL CLO 'CCC' Basket Scenarios And Their Effects On Junior O/C Test Cushions
b'
We\'re joined by CLO Sector Lead Stephen Anderberg and credit analyst Daniel Hu to discuss how rising U.S. broadly syndicated loan (BSL) CLO \'CCC\' baskets could affect junior overcollateralization (O/C) test cushions. We detail how the mechanics of CLO O/C tests work and why the tests themselves matter. Then we deep dive into the scenario analysis we undertook to look at how the junior O/C test cushions could be affected by various hypothetical scenarios of rising \'CCC\' baskets.
Related Articles: