Standardised CLO Volckerisation methods still a way off

Federal Reserve 230px
By Will Caiger-Smith
31 Jul 2014

Even after large CLO-buying banks banded together with the Clearing House Association to come up with standardised legal language to make legacy CLOs compliant with the Volcker rule, the language and methods used by CLO managers to Volckerise their deals still varies widely, market participants told GlobalCapital this week.


While some US banks holding non-compliant CLOs are selling their holdings in ‘un-Volckerised’ CLOs, according to media reports, others have participated in restructurings that enable them to hold onto their investments.

GSO/Blackstone’s recent refinancing of its Gramercy ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial