Broadly syndicated loans to non-investment grade U.S. Corporations are widely misunderstood outside of the loan industry. A number of commentators imply that leveraged loans are shadowy corporate equivalents to pre-crisis sub-prime mortgages. This is clearly not true and, to respond to such conflations, the LSTA recently published this white paper addressing these views.
This week, we start off pondering the August secondary slump (but console ourselves with the YTD 6.5% return). We then turn to CLOs by: 1) analyzing their ownership and runnability and 2) defending them in the press. And what’s a week without LIBOR? We end with the latest (accounting) hurdle to LIBOR transition being knocked […]
This week we cover CLO Revelations; Oil Patch Lending; LIBOR Accounting Redux; Tax Reform & Loans
This week we cover Japanese Risk Retention; CLO Check In; Getting Your (Delayed) Comp & SONIA’s Conventional Thinking
This week we cover CLO Real News; Bankruptcy Hardball; and January’s Secondary Market
This week we cover CLO Stat!; Benchmarks & Ducks; DOL & Loans; and Volcker Reboot
This week we cover The End of Risk Retention, Lessons Learned form the Risk Retention Saga, FinCEN Market Advisory and Bankruptcy Roundup
At midnight last night, the last opportunity for the government to file a petition for certiorari to the United States Supreme Court in its risk retention litigation with the LSTA expired, with the agencies choosing not to pursue further action. Thus ends a judicial process initiated by the LSTA on November 10, 2014, exactly three and a half years ago. This constitutes an important victory for the CLO market and we are delighted that this long journey has ended successfully.
As LSTA members likely know, on February 9, 2018, the US Court of Appeals for the DC Circuit ruled in favor of the LSTA, issuing a decision that risk retention does not apply to open-market CLO managers. The reality is this is (almost) the conclusion of an (almost) eight-year process.
(article updated on February 15, 2018) – On February 9, 2018, the United States Court of Appeals for the District of Columbia Circuit (the Circuit Court) ruled in favor of the LSTA in its lawsuit against the SEC and Federal Reserve Board. The ruling reversed a December 2016 decision by the DC District Court and held that the risk retention rules promulgated under section 941 of the Dodd-Frank Act cannot be applied to open market CLO managers.
Become a Member
Membership in the LSTA offers numerous benefits and opportunities. Chief among them is the opportunity to participate in the decision making process that ultimately establishes loan market standards, develops market practices, and influences the market’s direction.