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Search resuls for: "CLO"


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Oct 11 (Reuters) - The International Monetary Fund warned on Tuesday of a disorderly repricing in markets, saying global financial stability risks have increased, raising the potential of contagion and spillovers of stress between markets. The IMF's Global Financial Stability Report, which warned of the risks to markets, came as the Fund also cut its growth outlook in its latest World Economic Outlook. read moreHere are key indicators of stress and risks the IMF sees to financial stability:Register now for FREE unlimited access to Reuters.com Register* LIQUIDITYDeteriorating market liquidity conditions may poserisks to financial stability, the IMF said. * CURRENCY SWAPSInternational short-term dollar funding markets have begun to show signs of concern with a widening of the cross-currency basis swap spreads, a proxy for the marginal cost of offshore US dollar funding, the IMF said. * LEVERAGE LOAN MARKET CREDIT CRUNCHTighter financial conditions, mounting liquidity strains, and decelerating earnings growth could presage ratings downgrades and eventual defaults and lower returns for collateralized loan obligations (CLO) investors, the IMF said.
U.K. Crisis Spills Into U.S. Junk Debt
  + stars: | 2022-10-11 | by ( Matt Wirz | Caitlin Ostroff | ) www.wsj.com   time to read: 1 min
Fallout from the crisis in U.K. financial markets has hit a faraway corner of Wall Street: the trillion-dollar market for collateralized loan obligations. Once a niche product, CLOs are now widely held by investors around the world, including the British pensions, insurers and funds that got caught by the recent crash in U.K. currency and government-bond markets. Many of them sold CLO bonds to meet margin calls, sending prices of the securities tumbling well below their intrinsic value, analysts and fund managers said.
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