Environmental, social and governance issues are becoming more important in the CLO market. But this is from a low base. CLO market participants have often argued that ESG is irrelevant to a business that consists of lending to a diverse portfolio of companies. That consensus is now changing, with Europe moving quicker than the US in response to investor pressure. More than 40% of new CLOs issued in 2020 included ESG restrictions of some kind.
Key learning objectives:
Why CLOs have been relatively slow to embrace ESG
How CLO managers now taking steps to integrate ESG into their policies
Which industries are CLO managers choosing to exclude from their portfolios
Introduction to Interest Rate Swaps and Use Cases
David Leeming • 17:58