Default levels among U.S. collateralized loan obligations issued before the financial crisis decreased marginally in the first month of the years, but are likely to creep higher, according to Moody’s Investors Service.

That’s because many of these older CLOs have exposure to Texas Competitive Electric Holdings, an affiliate of Energy Future Holdings, which filed for bankruptcy on April 29.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.