ARTICLE
11 April 2018

Bye Bye To Risk Retention Rules For US CLOs

MG
Maples Group

Contributor

The Maples Group is a leading service provider offering clients a comprehensive range of legal services on the laws of the British Virgin Islands, the Cayman Islands, Ireland, Jersey and Luxembourg, and is an independent provider of fiduciary, fund services, regulatory and compliance, and entity formation and management services.
Sunny days ahead for the US CLO market as the US District Court for DC issued an order to vacate US risk retention rules for US BSL CLOs on 5 April 2018.
Cayman Islands Finance and Banking

Sunny days ahead for the US CLO market as the US District Court for DC issued an order to vacate US risk retention rules for US BSL CLOs on 5 April 2018.

Although there is still a miniscule chance that the agencies could appeal to the US Supreme Court before May 2018, the market is steaming ahead. US issuance levels had exceeded $32bn from 57 deals by the end of last week (versus $17bn from 32 deals for the same period last year) and refis and resets continue on at a strong pace. A number of US managers have now issued new CLOs, resets and refis without any risk retention.  

This augers well for the US CLO market with many commenters predicting a record breaking 2018 in terms of issuance levels.

Referenced article may require a subscription.

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

http://creditflux.com/CLOs/2018-04-06/CLOs-legally-freed-from-US-risk-retention-rules?utm_campaign=9349093_Daily%20Headlines%3A%2006%2F04%2F2018&utm_medium=email&utm_source=Creditflux&dm_i=VFZ,5KDT1,J7EWQI,LLYK8,1

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