CLO Managers Face Trading Crunch in Downturn
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In what’s already likely to be a tough year for the $1.4 trillion leveraged loan market, the biggest buyers of those loans now face an extra hurdle: time limits on their ability to freely reinvest their money.
By the end of 2023, more than 40% of collateralized loan obligations will be subject to restrictions on their ability to easily manage their portfolio by investing in new loans, according to Bank of America Corp.