Underwriting Tail Risk in CLO Portfolios

The panel examines how to underwrite tail risk in CLO portfolios, particularly from AI disruption of software companies. Peter Polanskyj draws parallels to the oil and gas sector shock a decade ago, arguing that today's challenge is harder because the facts on the ground are still evolving. He emphasises detailed, company-level credit work focused on business model embeddedness, customer dependency, and data proprietary nature as the only reliable approach, noting his firm runs below-average software exposure.