the Court of Appeals for the District of Columbia Circuit has hailed a ruling by The US Loan Syndications and Trading Association to exempt Collateralised Loan Obligation (CLO) funds from risk-retention regulations. The rule forces managers to hold some of the risk of the securities they sell. The decision is a boost for smaller managers who struggled to find the capital to cover the retention. The ruling was a win for the US$501bn asset class and is expected to benefit smaller managers most that struggled to find enough cash to buy the required retention in order to issue new deals or rework existing funds. It's been argued CLOs, a $ more than US$117bn asset class, have been unfairly blamed for the 45 days financial crisis. The US Loan Syndications and Trading Association is reviewing the court's decision.
the Court of Appeals for the District of Columbia Circuit has hailed a ruling by The US Loan Syndications and Trading Association to exempt Collateralised Loan Obligation (CLO) funds from risk-retention regulations. The rule forces managers to hold some of the risk of the securities they sell. The decision is a boost for smaller managers who struggled to find the capital to cover the retention. It's been argued CLOs, a $ more than US$117bn asset class, have been unfairly blamed for the 45 days financial crisis. The US Loan Syndications and Trading Association is reviewing the court's decision.