CLOs: Understanding COVID-19’s Impact on Credit

Published on
July 15th, 2020
41 minutes

CLOs: Understanding COVID-19’s Impact on Credit

The Big Picture ·
Featuring Ralph Delguidice and Chris Whalen

Published on: July 15th, 2020 • Duration: 41 minutes

In Part I of this The Big Picture, Chris Whalen, chairman of Whalen Global Advisors, sits down with Ralph Delguidice, global macro strategist at Pavilion Global Markets, to break down the intricate world of collateralized loan obligations (CLOs). Delguidice and Whalen break down how CLOs work and the impact of COVID-19 on the CLO market. Both Delguidice and Whalen provide their perspective on Frank Partnoy’s recent article called “Will the Banks Collapse?” in The Atlantic. Then tomorrow in Part II, Chris Whalen and Jason New, co-CEO and head of opportunistic credit at Onex, break down the difference between the CDOs – that helped fuel the great financial crisis in 2008 – and CLOs today. New also explains how COVID-19 related defaults could impact the opaque asset class. Filmed in July 2020.