Benefits of Bank-Collateralized Loan Obligation Relationships: Evidence from Bankruptcy and Restructuring Outcomes of Collateralized Loan Obligation-Held Loans
Despite persistent academic and regulatory concerns, collateralized loan obligations (CLOs) have consistently demonstrated resiliency over the past two decades. We document that firms whose loans are acquired by CLOs are less likely to experience adverse credit events within 12 months of inclusion in the CLO portfoli...