CLO banks finalise standardised ‘Volckerisation’ supplements
US banks that hold non-Volcker-complaint CLO paper have finalised a set of standardised supplementary documentation and proposed the changes to CLO market participants, in a concerted effort to bring the deals into line with the incoming regulation. But not everyone is convinced that managers will bite.
Under the auspices of the Clearing House Association, a group of bank investors including JP Morgan and Wells Fargo has been working to come up with a set of standardised supplementary CLO indentures to ‘Volckerise’ non-compliant deals, sources have told GlobalCapital.
The group has now finalised their proposed documentation ...