Bloomberg Law
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Law
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

CLOs Fight Back Against Hedge Fund Efforts to Siphon Value (1)

Sept. 25, 2020, 2:56 PM

Collateralized loan obligations are the biggest investors in the $1.2 trillion leveraged loan market, yet for months they’ve been bullied by hedge funds and other money managers exploiting a glaring weakness in their structures.

Now, they’re fighting back.

Brigade Capital Management, Blackstone Group Inc., CIFC Asset Management and Bardin Hill Investment Partners are among the firms looking to change the terms of the CLOs they oversee to put them on better footing when companies they’ve lent to can’t meet their obligations, according to people with knowledge of the matter. Collateral managers are often handcuffed in distressed situations due ...