In the Lakemore Insights – May 2020 report, we discuss current market conditions, relative value within leveraged loans and CLO debt and equity tranches. As most asset classes continue to rally, despite deteriorating growth forecasts, we explore the increasing disconnect between underlying fundamental data and market movements. Other highlights include: the existing and future opportunities in leveraged loans for active selection and attractive risk-adjusted returns amid spiking loan amendments and the reopening of the primary market; and the trend towards normal reinvestment periods within the CLO new issue market, following a flurry of static issuances in April.