Bloomberg Law
May 26, 2023, 12:30 PM

Refinancing is Harder in Loan Market, King Street’s Choi Says

Carmen Arroyo

Some companies whose loans are trading around 70 cents on the dollar will struggle to refinance their debt, and will instead fail, according to Young Choi, partner and global head of trading at King Street Capital Management.

Choi spoke to Bloomberg’s Carmen Arroyo in a series of interviews that ended on May 23. Comments have been edited and condensed.

CLO issuance has slowed down, mainly because the profitability of issuing has fallen for firms that don’t retain the riskiest part of their deals. Is that changing anytime soon?

The equity arbitrage is certainly challenged and there are very ...

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