Commentary

U.S. CLO 2023 Outlook is Mixed; Deterioration Expected Among Corporate Borrowers, Offset by Structural Protections in CLOs

Structured Credit

Summary

Our 2023 outlook for collateral loan obligations (CLOs) is mixed, with expected deterioration in the leveraged loan collateral pools driving a negative credit outlook, while DBRS Morningstar's credit ratings outlook for CLO tranches is stable.