The US Federal Reserve's widely anticipated rate hikes could spell trouble for investors that loaded up on collateralised loan obligations (CLOs) in the second half of 2016.
"There's a lot of downside in the lower part of the capital structure and we agree that risks have not been fully priced in," says Renyuan Gao, founder and chief investment officer at Westfield Investment, a hedge fund based in Mountainside, New Jersey. "You're getting mediocre returns, spreads are tight, and there's a lot
The week on Risk.net, October 6-12, 2017Receive this by email
- Quantile, TriOptima face off in cleared swaps compression battle
- SGX, HKEX expect to be among first wave of Mifid II equivalence
- Leaked EU doc could shield legacy swaps from clearing grab
- ABS set for revival under US Treasury’s liquidity buffer plans
- Industry hails potential US relaxation of margin timing rules