U.S. Middle Market CLOs’ ‘CCC’ Exposure Rising in Third Quarter
Negative rating migration has increased the average exposure to assets rated ‘CCC+’ or below to 19.4%, up 4.3% compared to 2Q23, across U.S. middle market (MM) collateralized loan obligations (CLOs) under surveillance by Fitch Ratings. This is the highest level observed since 3Q20, when the ‘CCC+’ or below exposure reached 21.3%. Downgrades in the underlying MM issuers are driven by observed pressure on interest coverage cushions and increase in leverage multiples.
CTA button: Download Report
(Past performance is no guarantee of future results.)
Contact Brad Hamner
Private Credit Defaults 101: Back to School
As Labor Day approaches, the unofficial end of summer is upon us. But, before we get too sad, there is also the familiar back-to-school energy.