Concerns grow over risk retention impact on CLO market
The European Banking Association’s latest tweak to risk retention rules, which now requires CLO managers to retain deals on their own balance sheets, could slow the flow of new euro CLO issuance — until greater clarity is provided, according to market participants.
The EBA has changed the wording to article 122a, part of the Capital Requirements Directive II, in a consultation paper released last week on draft regulatory technical standards on retention of net economic interest.
The new rules will be part of the Capital Requirements Regulation framework, due to
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