SEC to consider opening private funds to retail investors
US retail investors, deemed too small and unsophisticated to invest in private assets like private credit, represent trillions in untapped assets

Bessent compares Trump to Milken, champions bank deregulation
The US Treasury Secretary also noted that the growth of private credit is a sign the banking system has been too tightly constrained

Private credit funds, partner banks present risks as global growth slows—IMF
Private credit funds and their partner banks can face losses as a slowing economy will challenge borrowers’ ability to repay loans

Regulators scrutinise fund loans

Institutional loans set records while ratings agency data diverges
It isn’t just the CLO market breaking records this year. Loan volumes are also continuing to set records, according to the latest Debtwire data for November.

Credit funds brace for increased scrutiny from regulators
The Securities and Exchange Commission’s Division of Examinations urged advisers to private funds, which include private credit managers, to prepare for increased scrutiny 

In Kirschner fallout, lenders may be asked to rep that they aren’t investors

Our Xtract Research team explores an unexpected outcome from the recent Kirschner ruling  

JP Morgan wins Kirschner case as court rules loans are not securities
The Second Circuit Court of Appeals has ruled in favour of JP Morgan in the Kirschner case that term loan Bs are not securities

Loan market breathes sigh of relief as SEC declines to comment on Kirschner case
The SEC decided not to intervene in an ongoing court case about whether US leveraged loans are securities last week in an important win for the loan market.

FCA greenlights synthetic Libor
The UK’s Financial Conduct Authority has given the go-ahead for ‘synthetic Libor’ as it creates a bridge for Libor contracts that do not have any hard-wired language referencing Sofr. 

Proposed SEC rules "possibly existential" for open-ended loan funds, says LSTA
The US Securities and Exchange Commission's upcoming new rule focusing on liquidity management in open-ended funds could have “possibly existential” and negative implications for loan mutual funds and exchange traded funds in its current form, according to the LSTA

Phase 6 of uncleared margin rules drives CDS clearing volumes
2022 is shaping up to be a bumper year for CDS clearing activity, not only due to increased trading of the asset class, but a confluence of other factors, such as regulations, product expansion and wider geographical reach

SEC's CDS proposals could impede market rather than help it: Barclays
New rules proposed by the US Securities & Exchange Commissions to tighten oversight of the CDS market could mean big changes for the market and have the effect of sapping activity, warn Barclays credit strategists in a note published on Thursday

SEC warns private fund investors about misleading fund disclosure and due diligence failures
The US Secuties & Exchange Commission published a risk alert on Friday detailing a range of compliance issues it has observed in examining registered private fund advisers 

Caution returns to credit trading following tech sector rout
After a strong Tuesday session, financial markets are taking a more cautious step back on Wednesday amid returning inflation concerns and following a weak session for Chinese tech stocks

Lev loan index rule change proposed to meet Sofr switch
Leveraged loan index stakeholders are being asked for feedback on a proposal that would allow the inclusion of loans linked to Sofr and scrap a minimum spread rule

Ashurst boosts structured finance and derivatives practice as it brings in partner
Law firm Ashurst has hired a structured finance and derivatives specialist as a partner in its global markets practice

Breakthroughs come thick and fast for Libor alternatives
Momentum has gathered around initiatives to replace Libor in contracts, with CME Group obtaining a regulatory nod on the term Secured Overnight Financing Rate (Sofr) as well as moving to launch interest rate futures based on banks’ short term credit yields

Banks set to offer client clearing of credit index options
Bank members of LCH, the London Stock Exchange's clearing arm, will soon start offering client clearing of CDS index options, as the industry prepares for its next ramp up of margining requirements

LCH reports 60% growth in CDS clearing
LCH, the central clearing house of London Stock Exchange Group, has reported growth in clearing of index, option and single name CDS during 2020

New valuation rules to 'severely limit' fixed income cross trades
Law firm Practus believes that new SEC rules will limit a fund’s ability to cross-trade fixed income investments after the regulator adopted fund valuation rules in December

CLOs and leveraged lending do not significantly threaten stability, finds 'congressional watchdog'
CLOs and leveraged lending do not significantly threaten financial stability, according to a report by the US's Government Accountability Office (also known as the congressional watchdog) released yesterday

BlueCrest settles SEC charges of favouring internal fund over client capital
BlueCrest Capital Management has agreed to pay $170 million to settle charges related to a fund that managed internal capital

LCH starts clearing US credit index options
LCH, the central clearing house of the London Stock Exchange Group, has expanded its CDSClear service to clear US credit index options

Real estate debt firm gets over SEC settlement with $180 million fund raise
A Miami-based real estate debt specialist has raised $180 million for a credit fund that appears to have a flexible investment mandate