U.K. Crisis Spills Into U.S. Junk Debt
Collateralized loan obligation prices have been hit hard by a slump in the British pound and the unwinding of U.K. pension investments
Weakness in the CLO market may also have a knock-on effect on leveraged buyouts, including the financing for Elon Musk’s planned purchase of Twitter.
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.