Volcker change for CLOs may be subject to US election outcome, says LSTA
Changes to the Volcker rule that would allow CLOs to hold up to 5% of their portfolios in high yield bonds could be subject to the outcome of the US general election in November, the LSTA has said

Sidecars give CLOs a shot at driving restructurings
A number of CLO managers are shifting defaulted assets into sidecar vehicles before their transactions close - and sources say a growing number of debt investors are warming to the idea

Fed allows bonds to return to CLOs from October and signals equity rule change
The US Federal Reserve has finalised amendments to the Volcker rule that will allow CLOs to hold 5% bond buckets. The regulation implies CLOs' ability to hold equity securities may also change

It's confirmed: loans are not bonds in " victory for the flow of capital to American businesses"
You're a loan. No, nothing to do with lockdown and social distancing. It's actually a victory for the $1.2 trillion US loan market as a court ruling finds that loans are not securities in the long-running Kirschner v. JP Morgan Chase case

Fed announces first loan subscription date for talf
The Federal Reserve Bank of New York announced yesterday that the first loan subscription date for the term asset-backed securities loan facility will be 17 June and the first loan closing date will be 25 June

CLO market welcomes 'favourable and surprising' revisions to talf, but issues remain
CLO participants are welcoming the 'many favourable and even pleasantly surprising' revisions to the term asset backed lending facility announced by the US Federal Reserve today to address previous concerns. This could help reignite the market, but some issues were not addressed

Fed backs new issue CLO triple As in amended talf programme
The Federal Reserve’s term asset-backed securities loan facility (talf) has been expanded to support CLO triple As

Investors watch Libor amid inter-bank liquidity concerns
After a freefall to 74 basis points on 12 March, CLO managers found some relief in watching Libor rise to 120bp during the second part of the month.

Fed accepts triple A-rated CLOs in new 'primary dealer credit facility'
The US Federal Reserve Board will establish a primary dealer credit facility on Friday (20 March) to help defend against the impact of coronavirus-led market volatility

Managers seeking bond buckets will need high yield track record
US CLOs could soon be permitted to buy corporate bonds amid an overhaul of the Volcker rule, but market sources say that in the short term bond flexibility is a luxury that will only be afforded to a select group of CLO managers.

CLO industry pushes back against NAIC's combo note proposals
A fight is brewing over the National Association of Insurance Commissioners’ proposals to tighten regulations for insurers that buy purchase CLO combo notes

CLOs in line to benefit with Volcker rewrite on the horizon
The Volcker rule is set to get a shake-up and CLOs look likely to benefit, according to market sources. As Creditflux goes to press, a board of US regulators is expected to announce proposals to update the 2010 law.

Volcker amendments will be good for CLO equity and bad for CLO debt, says Wells Fargo
Proposed changes to the Volcker rule announced last week by the Federal Reserve, which would allow CLO managers to hold 5% bond buckets, are positive for CLO equity and ‘marginally negative’ for CLO debtholders, according to a research paper from Wells Fargo

Fed gives green light to CLO bond buckets
The Federal Reserve has published a reproposal to the covered funds definition in the Volcker rule that should give a green light to the return of 5% bond buckets in US CLOs

CLO market awaits further Volcker amendments as initial tweaks centre on prop trading
CLOs will not be impacted by changes to the Volcker rule announced yesterday, which means that rules limiting bond buckets in US CLOs will remain intact for the immediate future. Instead, regulators revealed that some of the rules around bank proprietary trading will be relaxed

US CLO managers see positives as docs include negative notation language to ease move to new reference rate
Europe might be making progress, but US CLO managers are less than preoccupied with the looming transition away from US dollar-Libor based pricing. 

CLO issuance faces threat amid loan definition dispute
The clash over Millennium Laboratories’ bankruptcy could have ramifications for the CLO market, and it all hinges on the philosophical question: what is a loan?

Cayman Island hopping: EU laws provoke switch in CLO listings
The Cayman Islands Stock Exchange (CSX) is set to become the listing place of choice in 2019 for CLOs put together by US managers — at least, according to a bold prediction by law firm Harneys.

Japan regulation affords CLOs breathing room
Japan’s regulators have avoided disruption of the global CLO market by softening the impact of their risk retention rules that came into effect in March

LSTA's Coffey floats five-point plan for Libor replacements
"Unlike Brexit, a benchmark is definitely going to happen", the audience at the IMN European CLO and Leveraged Loan conference heard 

Japanese regulator makes CLOs exempt from risk retention - if loans are appropriately originated
The Japan Financial Services Agency (FSA) has said that CLOs can sit outside the remits of its securitisation regulation, if investors in the country can provide ‘in-depth analysis’ showing the underlying assets were appropriately originated

CLO market holds breath as Japan risk retention looms
Risk retention compliant US CLOs could make a comeback after the Japan Financial Services Authority (JFSA) unveiled its proposed new risk retention framework, which could tie the hands of the world’s biggest buyers of US CLOs

LSTA asks for return of CLO bond buckets as part of Volcker reform
The Loan Syndication and Trading Association is advocating the return of high yield bond baskets within US CLO portfolios in what could be another sign of the shackles being loosened on CLO regulation in the US

CLO managers see risk retention hurdles as Brexit approaches
Barriers are emerging to UK-based CLO managers seeking risk retention compliance via both the sponsor and the originator route as the country edges closer to Brexit, sources say.