February 24, 2016 - 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“.
“Despite a proven record of providing safe and stable funding to over 1,200 American companies, CLOs are at risk of being materially reduced by risk retention. In fact, we have already seen risk retention negatively impact the volume of CLOs being done and force out smaller CLO managers, ultimately limiting resources available to businesses. To prevent further deleterious impact on the companies that depend on CLOs, we urge Congress to consider a commonsense solution that upholds the spirit and letter of the Dodd-Frank Act by creating a ‘Qualified CLO’,” said Meredith Coffey, LSTA EVP of Research.
This is the fourth time since 2011 that the LSTA has testified before the House Financial Services Committee on the impact that the Dodd-Frank Act has had – and will have – on CLOs. LSTA’s full testimony is available here and additional information on CLOs can be found here.