May 2, 2019 - SEC Chairman Jay Clayton recently announced that regulators across the government are looking at leveraged loans and CLOs for possible risks. The LSTA supports regulators doing their jobs and reviewing market risks, and we believe that their analyses will reveal, as ours do, that while credit risk may be increasing, systemic risk in the loan space is well below where it stood in 2007—in part due to the stabilizing nature of Open Market CLOs. In this attachment, we discuss this issue in depth. We look forward to working with regulators as they do their due diligence on this vibrant and important market.