LAGUNA NIGUEL, Calif. - New CLO managers continue to be a thorn in the side of more seasoned players, who equate managing a deal in the currently benign credit environment to riding a bike with training wheels that investors can't see.

What's worse, the influx of new managers has tightened asset spreads, making it more difficult to ramp deals without increasing buckets for higher yielding, but riskier, collateral, market participants said at Opal Financial Group's CDO Summit held here last week.

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