Volckerisation incentives increase in US CLO market

By Will Caiger-Smith
10 Jul 2014

As Volckerisation of existing CLOs gains traction — with ratings agency Fitch suggesting that amending deals to make them Volcker-compliant will not result in downgrades and could actually improve their liquidity — large triple-A buyers like JP Morgan are reportedly being very selective about which managers they work with on new deals.

JP Morgan — one of the biggest bank investors in triple-A CLO paper, before it retreated from the market late last year to tackle legacy investments that are affected by the Volcker rule's definition of CLOs as "covered funds"  — is said ...

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