ESMA strikes European CLO market with new regulatory burdens
The European Securities and Markets Authority yesterday published its final report for the technical standard on disclosure requirements under securitisation regulation, outlining the new reporting requirements for European CLOs coming into effect from 1 January

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. 

Risk retention financing given the green light by EBA
The European Banking Authority published the final draft of its regulatory technical standards for securitisations yesterday

BDCs turn to CLO financing as effective alternative to bilateral leverage agreements
Business development companies now have the ability to take on an extra turn of leverage, but rating constraints mean they could end up using CLOs instead

Investors debate merits of bond buckets as regulators revisit Volcker rule
CLOs with bond buckets could return in the US as federal agencies have signalled their willingness to roll back certain parts of the Volcker rule

European-compliant CLOs try to sidestep US risk retention rules
CLOs complying with European risk retention have had to tweak their legal language to avoid coming under US rules, in what has become known as a ‘conditional sales’ approach

Past returns: KKR CLO was sign of things to come
Five years ago in Creditflux, we reported on KKR Credit pricing a US CLO that complied with European risk retention rules, in what was believed to be one of the first deals of its kind

US CLO market bids farewell to risk retention as appeals deadline passes
The SEC and the Federal Reserve have not petitioned the US Supreme Court to appeal the ruling exempting CLOs from risk retention, meaning the agencies’ last opportunity to get the ruling repealed has passed  

They said it: regulators are using The Big Short as their frame of reference
The LMA’s Nicholas Voisey describes why it’s difficult to campaign for the European loan market

CLOs legally freed from US risk retention rules
'Open-market' CLOs were legally freed from US risk retention rules yesterday, although the threat of a Supreme Court appeal remains until May

Libor has a new contender as New York Fed launches SOFR
The New York Federal Reserve has launched a benchmark US that may eventually replace Libor: the Secured Overnight Financing Rate (SOFR)

Deadline passes for federal agencies to appeal risk retention ruling
CLOs passed another milestone on the journey away from risk retention as the SEC and Federal Reserve Board did not appeal the court decision by the 45-day deadline

Fight for US loans commences following risk retention U-turn
US CLOs are set to be free from risk retention in the next few weeks. Headache over for US CLO managers? Not really – now it becomes a fight to source the assets that will populate CLOs

Past returns: Europe's own risk retention rewrite
Five years ago we reported that European CLO managers were hunting for partners to retain risk retention on their behalf. Shortly after, regulators performed a U-turn (nothing new here) and decided to prohibit third parties from acting as risk retainers

They said it: CLO managers are a generous sort
With US risk retention set to be repealed, one CLO equity investor is convinced that managers will readily return 'risk retention capital' to investors

CLO managers look to offload vertical strips
The pending withdrawal of US risk retention will result in CLO managers looking to sell vertical strips - if they can negotiate an early redemption of their financing agreements

CLO managers likely to be exempt from risk retention from 2 April, says LSTA
US CLO managers' exemption from Dodd-Frank risk retention rules will come into effect on 2 April unless the government appeals the ruling, the LSTA says

Reprieved: US CLO managers are not subject to risk retention, court rules
The LSTA has prevailed in its lawsuit against the SEC and the Federal Reserve board, with an appeals court ruling that CLO managers are not subject to credit risk retention laws under the Dodd-Frank Act

Law firm bolsters its CLO practice after hiring from Credit Suisse
Law firm Chapman and Cutler has further strengthened its CLO and structured finance practice, bringing in a figure from Credit Suisse's new issue CLO team

EBA provides clarity on risk retention under STS regime
The European Banking Authority has laid out guidance for risk retention, which provides details on the transfer of risk retenton from one entity to another and what qualifies as a CLO originator

European CLO managers aim for ‘full compliance’
November has seen an increase in new European CLOs complying with US risk retention rules, with at least five ‘fully compliant’ CLOs pricing

Market is always wrong on effect of CLO rule changes
Risk retention has made little difference to the CLO industry. And it’s disappearance will similarly have little impact

CLO managers brace for impact as securitisation regulatory changes pass
A new securitisation regime has passed the European Parliament – and it imposes onerous requirements on CLO managers, according to capital markets lawyer David Quirolo

Drop risk retention for most CLOs, says Treasury
Loan managers have spent millions of dollars ensuring they have the infrastructure in place to tackle risk retention rules. However, there is now a possibility that the concept of risk retention will not apply to CLOs