DOJ Probes Collusion in CLO Market During Libor Transition

Imagine some companies had loans based on a system called Libor, which was changing.

The Justice Department is looking into whether some investors in a market called CLOs worked together to make money during this change.

They are checking if these investors, especially those who owned the riskiest parts of the CLOs, talked to each other to get the best deals when the loans were being updated.

The investigators are worried that the investors may have broken the law by secretly agreeing on how to handle the loan changes.

If they did, they could have unfairly profited.

The government needs to prove that the investors colluded and did not just make the same decisions on their own.