Loan Syndications and Trading News

July 7, 2016 - With just two weeks to go before the deadline, the Board of Governors of the Federal Reserve (“FRB”) this afternoon released an order extending the conformance period for the Volcker Rule to July 21, 2017.  Although widely expected, had the FRB not acted, banks would have been forced to sell within the next two weeks any non-conforming CLO liabilities they held.

July 1, 2016 - In early June, we learned that proposed amendments to the EU’s “Simple, Transparent and Standardised (STS)” securitizations had the potential to increase risk retention to 20% and to effectively prevent US CLO managers from issuing European CLOs and from accessing the European CLO investor base. This week, we learned that Brexit might make UK-based CLO managers suffer the same fate as their American brethren.

June 24, 2016 - The fallout was immediate, harsh – possibly a market overreaction – and predictable. The impact when the markets opened was brutal: As the WSJ published at 4 am ET, 9 am GMT, the FTSE 100 and Stoxx Europe 600 both tumbled over 8%, the S&P futures pointed toward an opening down as much as 5%, the daily limit, Greece was down 13%, Spain and Italy were down 11%. The British pound fell as low as $1.32, a level last seen in 1985.

March 3, 2016 - On Wednesday, March 2, 2016, HR 4166 (the QCLO bill), which was sponsored by Representative Andy Barr (KY) and Representative Dave Scott (GA), was passed by the House Financial Services Committee 42-15. Notably, 10 Democrats joined the bill.

February 24, 2016 - On Wednesday, February 24, 2016, Meredith Coffey, LSTA EVP of Research, testified in favor of legislation to create a common sense solution to risk retention on behalf of the LSTA during the Capital Markets Subcommittee of the House Financial Services Committee hearing on "The Impact of Dodd-Frank and Basel III on Fixed Income Markets and Securitization". 

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