CLO industry laments ‘worse than we thought’ impact of Fed’s Volcker extension

By Will Caiger-Smith
24 Apr 2014

CLO industry participants are losing hope for a regulatory or legislative fix to ease the Volcker Rule’s impact on banks investors, especially after the Federal Reserve confirmed that its two year extension for banks to make their deals compliant would not apply if those securities change hands.

At an industry gathering in New York on Wednesday, Elliot Ganz, general counsel and executive vice president of the Loan Standards and Trading Association, said the Fed that morning confirmed to the trade organisation that non-compliant CLOs will lose the benefit of the two year conformance period extension ...

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