Libor Transition Vexes Collateralized Loan Obligations Market

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The global $1 trillion market for collateralized loan obligations is lagging behind in the transition away from Libor

The global $1 trillion market for collateralized loan obligations is lagging behind in the transition away from the London interbank offered rate.

While some companies, lenders and markets have moved swiftly to adopt a replacement for the scandal-marred , low-rated borrowers have been slower to adapt. That is causing headaches for managers of collateralized loan obligations—pools of low-rated corporate loans bundled together into securities.

 

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