Private credit inflows face uphill battle even as 401(k) doors open
Although US President Trump’s executive order opens defined contribution retirement plans like 401(k)s to private credit investments, a sudden and meaningful rise in inflows is unlikely 

Presidential order opens private credit access to US retirement investors
US President Donald Trump signed an executive order to repeal a regulation that forbids certain US retirement accounts like 401(k)s from adding alternative assets such as private debt

AFME calls for investor-friendly adjustments to EC securitisation reforms
AFME while welcoming the new European regulatory reform proposals has called for further changes

EC securitisation proposals “a big step in the right direction”
The new European Commission proposals for the securitisation market are “a big step in the right direction” and may attract more investors

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

UK regulator puts SRT financing under the microscope
ANALYSIS: UK's Prudential Regulation Authority has flagged concerns about banks’ collateral management when providing investors leverage for SRTs

Regulators scrutinise fund loans

Private credit managers need valuation process around market events - UK regulator
The FCA released a private markets review recommending firms identify and manage potential issues around valuations, especially those conducted as a result of asset-level or market events.

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 

New AIFMD directive imposes leverage limits for European direct lending
The Council of the European Union has rolled out new regulations that should streamline the origination process for direct lenders at the cost of strict limits of leverage for funds

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.

Proposed regulation changes could open up US CLO funds to UK investors
Proposed changes to the UK Securitisation framework may expand the investor base for US structured credit if passed.

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

CEO steps down after DWS greenwashing allegations lead to police raid
A tumultuous 24 hours for DWS Group, in which police and regulators raided its office, has been compounded by the resignation of its chief executive officer Asoka Woehrmann on Wednesday morning

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

Aoyuan credit event does not require auction settlement: DC
No auction is required to settle CDS contracts referencing China Aoyuan, the Determinations Committee has decided – despite the property developer having triggered a credit event