With certain sectors of the economy still under severe stress from the COVID-19 pandemic, the potential for defaulted assets within CLO portfolios has drawn the attention of collateral managers, who in many cases are turning to a familiar solution. In line with prior downturns, over the last number of months we have seen a significant rise in the formation of 'tax blocker' subsidiaries for existing US CLO issuers with exposure to affected assets. To help enlighten our discussion, we are joined by Joelle Berlat, a Managing Director in Deloitte Tax LLP's Houston office in the US.

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