While demand for leveraged loans from CLOs may play a role in driving loan issuance, pricing and loan structure, it should be noted that CLO equity does not represent a form of demandable short-term financing and hence does not have the potential to contribute to fire-sale dynamics in the same way as, say, repo financing.
For this reason, the BSP will continue to collaborate with the CTB to make sure that our reform initiatives will lead to a robust thrift banking sector, a dynamic countryside and a strong economy that fosters inclusive growth. Ladies and gentlemen. Friends. This is the last time I will be addressing the CTB’s annual convention in my capacity as BSP Governor.