This week we cover Risk Retention Returns(?); Bilateral LIBOR Fallbacks; LSTA (& Board) in 2019!
As reported in the Asset Securitization Report, the U.S.CLO market was rocked early this year by news that the Japanese Financial Services Authority (JFSA) published on December 31, 2018, proposed rules that would impose punitive regulatory capital risk charges on banks that purchase securitization securities that are not risk retention compliant. Because Japanese banks have traditionally purchased a significant portion of US AAA CLO notes, this news was initially very concerning.
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.
This week we cover SOFR v LIBOR, Retention in US & Europe, Credit & Incrementals
The US market has been happily absorbing the end of risk retention, but the same cannot be said of Europe. To that end, at IMN’s 5th Annual Investors’ Conference on European CLOs and Leveraged Loans, LSTA General Counsel Elliot Ganz participated in a panel on the divergent regulatory environments in Europe and the United States.
It was a big week on the risk retention front. As readers know, the opportunity for the government to file an appeal to the United States Circuit Court for the DC Circuit (DC Circuit) in its risk retention litigation with the LSTA expired at midnight on March 26th with the agencies choosing not to pursue further action in this venue.
This week we cover Risk Retention Vacated! Market Analysis, SOFR So Far, LSTA Goes Green and Blockchain
District Court Order
As we noted last week, the opportunity for the government to file an appeal to the United States Circuit Court for the DC Circuit (DC Circuit) in its risk retention litigation with the LSTA expired at midnight on March 26th with the agencies choosing not to pursue further action in this venue. On Tuesday. April 3rd, the critical next – but not final – step happened: The DC Circuit issued a “mandate” to the DC District Court.
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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.