The Impact of COVID-19 on Leveraged Loans, Direct Lending, and CLOs in Europe

Unforeseen events, a number of variables, and complex scenarios are unfolding in front of us, all of which are having a direct impact on the European leveraged lending markets of: leveraged loan, direct lending and collateralised loan obligations (CLOs). Given the number of drivers and wide range of possible outcomes, it is quite hazardous to try to forecast how the current environment will develop. In this report, we provide a summary of the market pre- and post-Coronavirus Disease (COVID-19).