15
May
The impact of liability management exercises on CLO portfolio management
As liability management exercises (LMEs) continue to reshape the leveraged loan landscape, with significant repercussions for CLO managers and investors who face unique challenges and opportunities in managing their exposure to these transactions. With rising frequency of sponsor-led LMEs and complex restructuring solutions, understanding their impact on CLO portfolios has become crucial. Our expert panel will explore:
How are CLO managers adapting their portfolio strategies to account for the increasing prevalence of LMEs? What implications do these exercises have for CLO documentation, particularly around par value tests and rating factor calculations?
What specific challenges do different types of LMEs present for CLO structures - from uptier exchanges to dropdown transactions?
How are CLO managers approaching the valuation and trading of loans subject to LMEs? What strategies are being employed to protect CLO noteholder interests while maintaining portfolio quality and compliance?
What role do CLO documentation provisions play in determining manager flexibility when dealing with LMEs?
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SpeakersSushila Nayak Partner ORRICK
Lin Chang Head of CLO Capital Markets Elmwood Asset Management
Young Choi Partner, Global Head of Trading, Portfolio Manager - Rockford Tower King Street
Brian Nolan Head of European CLO Structuring PGIM
Bhavin Patel Chief Investment Officer Redding Ridge Europe
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