CLOs Fight Back Against Hedge Fund Efforts to Siphon Value
- Hedge funds are exploiting CLO limits in distressed situations
- Brigade amends old deals to gain restructuring flexibility
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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.