Manager’s Discretionary Roles Under The CLO Indenture

Financial Services

While the primary duties of a manager in a collateralized loan obligation ("CLO") transaction are enshrined in the collateral manager agreement, the indenture also has numerous provisions that require the manager's direction or discretion. Managers must understand these responsibilities and the impact that they have on its day-to-day operations and other material periodic events, such as an early redemption of notes issued in the CLO transaction.

This article summarizes the most important roles and responsibilities set out in the indenture, although managers should be aware that there are many more provisions to be considered before launching a new CLO.

SUMMARY