Private equity collateralized fund obligations (PE CFOs) rated by Fitch Ratings have so far weathered the economic downturn and market volatility caused by the coronavirus pandemic, with sector and strategy diversification proving to be the differentiating factors.

Distributions from underlying PE funds remained relatively stable for diversified transactions, driven by better performing sectors. Capital calls on PE CFOs increased as PE funds sought to support portfolio companies or enhance liquidity and, in some cases, take advantage of opportunistic investments. READ MORE