DBRS Morningstar Releases Commentary on European Middle Market CLOs

DBRS Morningstar released a commentary titled “European Middle Market Under a Cloud of Uncertainty”. This commentary focuses on the nascent middle market (MM) and direct lending collateralised loan obligation (CLO) market. We believe that the Coronavirus Disease (COVID-19) crisis has set back the progress of MM or direct-lending CLOs in Europe for a while, depending on how long the current market disruption lasts. However, we view positively the overarching positioning of these new lenders, which helps them take advantage of lending opportunities to small and medium-size borrowers. In the long run, such MM CLOs could offer an opportunity to support the availability of funds for these types of firms.

Key highlights from the commentary include
-- The impact of the coronavirus on CLO markets in Europe.
-- Growth in demand for direct lending.
-- CLO market funding availability for lenders.

Notes:
The full commentary is available at www.dbrsmorningstar.com.

For more information on this industry, visit www.dbrsmorningstar.com or contact us at info@dbrsmorningstar.com.

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