Moody's eyes downgrading collateralised loan obligations

03/5/2009 | Financial Times (free content)

Moody's said it changed the way it assesses the riskiness of collateralised loan obligations, and most of the market faces the possibility of rating cuts. The move affects all but the most senior bonds issued by hundreds of CLOs worldwide. The complex investment vehicles were already under pressure because their underlying leveraged loans were downgraded and because of the prospect of more bankruptcies and restructurings.

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