Why CLO managers are agreeing to extend and amend

“There is no downside” to extending maturities, say CLO manager and investors

Risky borrowers are increasingly asking creditors to push back debt maturities on leveraged loans. And the market’s largest buyers of those loans – managers of collateralised loan obligations (CLOs) – are proving happy to oblige.

So-called amend and extend (A&E) agreements, in which lenders agree to push back a loan’s maturity by anywhere from two to five years in return for a higher yield and sometimes tighter financial controls, are increasingly common, as rising rates make new loans less