Downgrades in Leverage Market Will Likely Cause Defaults to Increase, Says PineBridge's Kollmorgen

The video discusses the current market opportunities and risks, particularly in the leveraged loan market, due to COVID-19. It highlights the response of rating agencies, which have been quick to downgrade loans, impacting CLOs. The video compares the current situation to the 2008 financial crisis, noting that CLOs have shown resilience due to structural enhancements and better collateral. The importance of understanding underlying credits in portfolios is emphasized for investors.

In what ways are CLOs considered stronger now compared to before the Great Financial Crisis?

What is the significance of understanding the underlying credits in a portfolio of leveraged loans?