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

Six European CLO managers switch to Ireland after Dutch tax hike
European CLO managers have been rapidly shifting their Netherlands-domiciled SPVs to Irish DAC vehicles, according to sources, including PGIM, Barings and Cairn

Less credit volatility expected in Q4 despite US election fallout
CLO issuance was expectedly low in the final week of October in the run-up to the US election, as issuers brace for what has historically been a volatility-inducing macro-event. But prominent market participants say the unprecedented economic backdrop resulting from the pandemic means the outcome of the 2020 election is less likely to move the dial as much as in cycles past

European CLO managers switch legacy deals to originators ahead of Brexit deadline
A few European CLO managers are undertaking house keeping ahead of the end of the Brexit transition period in January, by switching the method by which their legacy CLOs comply with risk retention from sponsor to originator

Partners triggers frequency switch event on European CLO
Partners Group has made the rare decision to flip the frequency switch on one of its European CLOs

European CLOs should obtain STS certification, urges ACC
The Alternative Credit Council has urged policymakers to allow European CLOs to obtain Simple, Transparent and Standardised (STS) certification in a bid to boost non-bank lending

CLO market splits en route to Volcker rule compliance
Volcker rule amendments freeing CLOs from many of the restrictions of the past decade came into law on 1 October, allowing managers greater flexibility in how they invest their portfolios. But the market is split on how exactly CLO documents should be structured as the first slate of unrestricted CLOs print

Kroll pays $2 million settlement over control failures in rating CLOs and CMBS
The Securities and Exchange Commission has charged Kroll Bond Rating agency more than $2 million for failures related to rating CLO combo notes, as well as in the CMBS sector

Dislocation and costly payment debacle highlight loan tech lag
Coronavirus-led dislocation in the leveraged loan market, as well as a bank’s recent claims of human error in making a large loan payment, underscore the industry’s need to embrace long-overdue efficiency improvements

CLOs given workout flexibility as ‘safe harbour’ now viable
From October CLOs will be permitted to hold equity secu-rities resulting from workout situations, say lawyers at Cad-walader, Wickersham & Taft

Managers advised to refresh disclosures after SEC risk alert
Credit managers should review their conflict disclosures after the SEC issued a risk alert, say lawyers

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

It takes just a few CLO collateral managers selling into the distressed community to start cracks forming
It is becoming increasingly clear that CLO collateral managers need to improve their collaboration efforts in distressed situations

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

The CMBS talf proposal is simple and effective. A similar approach for CLOs would be welcomed
It’s great that government is trying to boost securitisations, but they’re missing the mark for CLOs

Fed to publish information on borrowers making use of the talf programme
The US Federal Reserve will disclose information about borrowers making use of its emergency facilities

VAT guidance leaves CLO managers in 'limbo' as they weigh options
The Dutch Tax Authority’s move to ease the pressure on European CLO managers by grandfathering deals against VAT until at least January 2021 has drawn mixed responses

European CLOs earn VAT wiggle room - and varying grandfathering protection
European CLOs domiciled in the Netherlands have been given some breathing room as various stock exchange announcements suggest the Dutch Tax Authority (DTA) will not retroactively impose VAT bills on CLOs

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