This week we cover Equity, HY Volatility vs. Loan Stability; Volcker Returns; LIBOR I (Fed Speaks) & II (LSTA Explains)
This week we cover CLO Stat!; Benchmarks & Ducks; DOL & Loans; and Volcker Reboot
More than seven years after the passage of the Dodd-Frank Act, some of the resulting regulations imposed on CLOs are still being hotly contested. Indeed, just this week the LSTA learned the identities of the three judges from the D.C. Circuit Court of Appeals that will constitute the panel presiding over the three-year old lawsuit against the SEC and Federal Reserve Board on the issue of risk retention. Also this week, in response to the OCC’s request for comment on revising the Volcker Rule, the LSTA filed a comment letter addressing the prohibition on banks owning debt securities of CLOs that hold any amount of bonds.
The LSTA submitted a comment letter to Treasury Secretary Mnuchin on the issue of ownership interests on May 26, 2017
Collateralized Loan Obligation (Fact Sheet on CLOs and the Volcker Rule
Banks are working with the trade associations to develop a draft template to facilitate amendments to remove bond baskets from legacy CLOs, thus “Volckerizing” them.
Reaction to the announcement by the Federal Reserve Board that it will issue a two-year extension of the conformance period under the Volcker Rule for debt securities issued by collateralized loan obligations (CLOs).
Overview of the Volcker Rule
Elliot Ganz, testified at a hearing before the House of Representatives’ Financial Services Committee entitled, “The Impact of the Volcker Rule on Job Creators, Part I”.
The LSTA filed a comment letter on the proposed regulations implementing the Volcker Rule urging the regulatory agencies to exclude CLOs from the Volcker Rule.
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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.