How it took four years to close a loophole — and throw European CLOs into chaos
The fraught relationship between the EU regulator and the growing CLO market again came into focus last month, when the European Banking Authority surprised the market by issuing a response to a question posted four years previously regarding risk retention

CLO lawyers see European CLO risk retention clarification as 'headache, not a migraine'
After an initial reaction of concern about how this may impact sentiment in the growing European CLO market, lawyers have now become more sanguine about the updated regulation, with fixes already being implemented by affected managers

New headaches for European CLO market as regulators clarify risk retention guidance
The European Commission has overturned widespread market practice regarding conditional sale agreements, with a newly-issued legislative interpretation of the ‘originator’ definition under the EU Securitisation Regulation

European CLO market hit hard by change to interpretation of risk retention vehicle wording
The European CLO market was rocked by a double whammy at the beginning of April,. as alongside the Trump tariff volatility, European regulators issued new risk retention guidance that sowed confusion and contributed to a chilling effect on primary activity

Blackstone rethinks captive equity strategy
Blackstone has announced proposals to wind down its existing risk retention vehicle, Blackstone Loan Financing Limited (BGLF).

Euro risk retention becomes must-have feature for US CLOs
For the past four years, risk retention-compliant US CLOs have been viewed as a luxury. But today issuers see a clear advantage to putting skin in the game

US CLO managers with eye on Europe opt for risk retention
The US CLO market celebrated as domestic risk retention requirements were overturned in February 2018, but issuers are increasingly taking down 5% of their CLOs voluntarily with a view to satisfying European risk retention rules

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

Early March European CLO makes it through the sell off with 5.4% risk retention
One of the last European CLOs to price before the primary market shut down in March has disclosed the fair value of its notes post-closing, which shows that it has a reasonable 38 basis point cushion against risk retention deficiency

Back from the dead: CLO risk retention resurfaces in the US
Risk retention is making an unexpected comeback in the US CLO market as more managers look to structure their deals to comply with European risk retention regulations

GSO aims to place US CLOs in Europe
GSO Capital Partners has launched a manager entity named Blackstone/GSO CLO Management LLC in an effort to sell US CLOs into Europe.

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

Control equity in recently reset Apollo European CLO goes on the auction block
Control equity in Apollo Global Management’s European CLO will be up for grabs next week

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

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

MJX ventures into Europe with risk retention-compliant US CLO
MJX Asset Management priced a new issue US CLO on Friday that is compliant with European risk retention rules

Chenavari originator aims to take risk retention positon in third party's CLO
Chenavari Toro Income Fund, the closed end fund listed on the London Stock Exchange, is poised to act as the risk retaining party for an upcoming European CLO being launched by a “well established CLO manager”

Euro CLO managers support sponsors and originators in (almost) equal measure
€20.9 billion worth of new European CLOs priced last year and, according to Creditflux data, there was an almost equal distribution between deals that went the sponsor route and deals that opted for an originator structure

$47 billion of 2017 US CLO paper was available to Europeans, finds Wells Fargo
40% of US CLOs issued in 2017 complied with European risk retention regulations, according to research by Wells Fargo

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

Nearwater aims to put $500 million to work in global risk retention financing
Start-up company Nearwater Capital has closed on a $500 million capital commitment which will fast-track its move into risk retention financing, sources say. The firm has already deployed capital into CLO risk retention

Dublin-based manager looks to reset third CLO of 2017
The manager is working with Goldman Sachs to arrange the reset, and is seeking to upsize the deal's debt trances to €373.5 million