Reported about 19 hours ago
The U.S. Justice Department is investigating allegations of collusion among investors in collateralized loan obligations (CLOs) during the transition from the London interbank offered rate (Libor) in early 2023. Prosecutors are examining whether investors coordinated to enhance their positions as companies sought to reprice buyout debt without necessary adjustments, potentially harming junior bondholders. The investigation, initiated about a year and a half ago, involves subpoenas to financial firms and focuses on communications among CLO equity holders during the crucial transition period.
Source: YAHOO