Dealscribe has launched a series of unique metrics to allow investors in CLOs to quickly compare deals in terms of their management flexibility
LONDON, UNITED KINGDOM, October 18, 2021 /EINPresswire.com/ — Dealscribe, a technology-enabled research firm that translates complicated transaction documents into data, has launched a series of unique metrics to allow investors in collateralized loan obligations (CLOs) to quickly compare deals in terms of their management flexibility.
The company’s web system now includes a score on a scale ranging from 0-5 for several key areas of a CLOs rules, such as collateral, post reinvestment and cashflows. These scores are combined into an overall score for each CLO, known as a D-Score: the higher the score, the greater flexibility the manager has over the way the portfolio is managed.
In addition, each deal has a separate score for environmental, social and governance risks. For this score, the higher the score, the stronger the deal’s ESG rules.
The two scoring systems, which are being added to all 1,000+ US and European CLOs on Dealscribe’s website, are based on objective, quantitative methodologies, allowing investors to compare all deals on a standardized basis. The scores, which are being launched in beta mode, should be useful to both CLO equity investors looking to maximize returns and CLO debt investors seeking to protect their capital at risk.
Dealscribe, based in London and New York, was established in 2020 and has the backing of a group of leading individuals in the CLO industry. Following its commercial launch in April, the service is being rapidly adopted by CLO market participants on both the sell side and buy side.
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