BofA points out flaws in NAIC CLO proposal while Morgan Stanley warns of primary slowdown
Bank of America research has pointed out what it believes are further flaws in the National Association of Insurance Commissioners’ proposal to take CLO modelling and monitoring in-house. And Morgan Stanley research says the CLO proposals could weaken demand for CLO triple Bs in particular, hampering CLO formation

NAIC unit suggests going beyond ratings by taking CLO evaluations in-house
A unit within the National Association of Insurance Commissioners has recommended that it takes oversight of the CLO investments held by US insurers by modelling these holdings in-house

"When the US market gets legislation it does not like, people sue..."
The difference between Americans and Europeans in regards to CLOs

We’ll get through this awkward patch
Wide liabilities have made pricing CLOs trickier in the past few months. But speakers at Creditflux’s CLO Symposium were optimistic that the arbitrage is OK — so long as you can place those triple As

SEC extends comment period for private funds disclosure regulation
Following letters from several institutions including the LSTA, the SEC has extended the comment period on its proposed “Private Fund Advisers; Documentation of Registered Investment Adviser Compliance Reviews” rule

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

CLO market and congress plead with SEC to extend rule comment period to 90 days
SEC rule proposals are no page-turners: members of the US congress are looking to extend comment periods from 30 days to 90 days. Recent SEC rule proposals require commentors to read and analyse roughly 3,570 pages and respond to 2,260 individually identified questions   

CLOs land in Jersey as Maples kicks off continuations
The CLO migration from the Cayman Islands to Jersey is in full swing, with the Maples Group’s global CLO team having incorporated 27 new Jersey CLOs and completed nine continuations of Cayman CLOs into Jersey. Another 18 continuations are in its pipeline

Biden signs Libor transition measures into law
The Libor legislations, which recieved bipartisan support, are aimed at giving clarity to tough-to-amend Libor contracts that lack adequate fallback language, and supporting a smooth transition away from Libor

Senate introduces bipartisan bill for “tough" legacy Libor contract transitions
Four senators introduced a bill on Wednesday to provide a replacement framework for “tough legacy” financial contracts that reference Libor but cannot be easily changed

New SEC rules may increase reporting hurdles for CLOs
CLOs could be caught by sweeping new rules on disclosure by private funds proposed by the SEC in February

CLOs go island hopping as EU rules bar Cayman Islands
Swathes of CLO special purpose vehicles are set to be relocated this month following the introduction of European Union regulations designating the Cayman Islands as a money laundering location

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 

Zais scores first for new issue CLOs under Sofr regime
Zais Group has priced what sources say could be the first five-year new issue broadly syndicated loan reinvesting CLO issue of 2022 

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

CLO extremes will do well in '22 but mezz needs caution: BNP Paribas
The extreme parts of CLOs' capital structures will offer best value in 2022, but investors should be cautious on mezzanine tranches and consider hedges, say BNP Paribas strategists

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

Sofr transition timing puts CLO debt and equity at odds, says BNP Paribas
CLO investors look to have tough conversations ahead on the structure implications of the transition from Libor to Sofr, with BNP Paribas strategists noting CLO debt will benefit from an early move while equity tranches would do better to wait

Spectre of US CLO risk retention looms as legislation is introduced
US CLO risk retention could be about to return from the dead. As scary as this sounds it is not a Halloween prank, but rather a result of the “Stop Wall Street Looting Act of 2021” brought about by Senator Elizabeth Warren last week

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

Points up front: Risk retention gets less than 5% of airtime
In a sign of how buoyant the CLO market is, risk retention was hardly mentioned at Creditflux’s CLO Symposium. Milbank partner John Goldfinch gave a self-deprecating assessment... 

DBRS pays $1 million to settle CLO combo note rating charges
Credit ratings agency DBRS Morningstar has agreed to pay $1 million to settle charges relating to the rating of CLO combo notes

CLOs face uncertainty as Libor rate deadline looms
CLO equity valuations could be increasingly under the spotlight in coming months, as sources warn of disruption while the market grapples with basis risk between Libor and Sofr in loans and CLO notes