Irrespective of what lobbyists, politicians, or even regulators might say, banks own over half of leveraged loans and CLOs globally. In a downturn, growing illiquidity in these products would force banks to raise capital buffers, possibly leading to fire sales, not only of CLOs but other assets.
Banks Are The Largest Holders Worldwide Of Leveraged Loans And Collateralized Loan Obligations
Forbes - 21 Jul 2019 18:07
Irrespective of what lobbyists, politicians, or even regulators might say, banks own over half of leveraged loans and CLOs globally. In a downturn, growing illiquidity in these products would force banks to raise capital buffers, possibly leading to fire sales, not only of CLOs but other assets.
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