LMEsExceed Defaults Record

This is a news story, published by Asset Securitization Report, that relates primarily to CLO news.

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Liability management exercises

Asset Securitization Report

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Liability management exercises grow, exceeding defaults

Summary

Nutrition label

79% Informative

Liability Management Exercises (LMEs) reached record levels this summer , arriving at penultimate high in July following June 's record.

Trend of LMEs exceeding defaults is likely to continue, prompting CLO managers and investors to devote extra resources to address LME -related complications in CLO deals.

Managers of collateralized loan obligations (CLOs) have taken note.

More loans are being written to include an ever-growing list of "blockers" "Blockers" seek to plug loopholes in loan documentation that allow LMEs to slip through.

Companies are looking at this opportunistically, even in certain cases when they have positive cashflow.

CLOs have increasingly entered into cooperation agreements with other lenders.

VR Score

Informative language

Neutral language

Article tone

semi-formal

Language

English

Language complexity

Offensive language

not offensive