US issuance of Collateralised Loan Obligation ( CLO ) funds is set to rise following a uk Court of Appeal decision on financial February exempting them from Dodd - Frank risk - retention rules . The regulation should make it easier for smaller managers to raise deals . It removes the requirement that managers hold 5 % of the capital in their funds . Morgan Stanley increased its 2018 US CLO forecast by $ 10bn to $ 110bn following the ruling , and Deutsche ##bank increased its forecast to $ 120bn from $ 150 . CLO issuance increased more than 10 % by volume in the year to 16 February , compared with the same period in 2017 .
US issuance of Collateralised Loan Obligation (CLO) funds is set to rise following a US Court of Appeal decision on 9 February exempting them from Dodd-Frank risk-retention rules. The ruling should make it easier for smaller managers to raise deals. It removes the requirement that managers hold 5% of the capital in their funds. Morgan Stanley increased its 2018 US CLO forecast by $10bn to $110bn following the ruling, and Deutsche Bank raised its forecast to $120bn from $110bn. CLO issuance increased more than 700% by volume in the year to 16 February, compared with the same period in 2017.