This document is intended for institutional investors and is not subject to all of the independence and disclosure standards applicable to debt research reports prepared for retail investors. This material does not constitute research.
Life in the leveraged loan and CLO markets changes after December 31 when the era of LIBOR loans and CLOs likely ends and the era of SOFR and other indexed loans and CLOs begins. That spells basis risk. CLOs with existing LIBOR debt should see a growing share of loan investments float off SOFR and other benchmarks. And new CLOs with SOFR debt will face a loan market dominated by legacy LIBOR loans. The choice of benchmark could have an important impact on loan and debt pricing. Are CLO managers ready? Will CLO debt and equity widen on the transition risk? Join APS strategy, trading and some special guests for 30 minutes of discussion followed by Q&A.
SPEAKERS
Steven Abrahams, head of investment strategy, APS, moderator
Meredith Coffey, executive vice president and head of research, LSTA
Michael Koegler, managing principal, Market Alpha Advisors
Adam Schwartz, head of CLOs and structured credit, APS
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