PDI Picks – 6/8/2020

Pain across the board

Chart

The covid-19 crisis has dished out equal treatment – hitting all types of sectors hard.

The subject of the chart above is the CLO market, but it makes a point that is equally valid for the private debt universe. Not only have prospects for company default risen sharply in the wake of the global pandemic, but also the correlation between sectors when it comes to likelihood of default is much higher.