Ep 11 - CLOs and Leveraged Loans: SOFR, So Good

In this episode, our host Patrick Dolan talks to Meredith Coffey, Executive Vice President of the Loan Syndications and Trading Association (LSTA), who runs the Research Department and co-heads the LSTA’s regulatory and CLO efforts. The discussion touches on why leveraged loans and Collateralized Loan Obligations (CLOs) are still being syndicated on LIBOR, whether Secured Overnight Financing Rate (SOFR) will become the only replacement rate and how it behaves. They also discuss the pricing mechanics of SOFR loans and CLOs including the future of Credit Spread Adjustments (CSAs), why you might need a Chicago Mercantile Exchange (CME) Term SOFR license and what will happen when LIBOR ends.