Volcker exemption ushers CLO buyers in from the cold

money fist
By Tom Porter
12 Mar 2015

US regulators have given sentiment in the European CLO market a boost by clarifying that non-US banks can own and trade CLOs that do not comply with the Volcker rule.

The decision, which one London CLO banker called a “rare moment of good news” in CLO regulation, could lessen the pressure on some foreign bank investors to sell holdings in CLOs that have the ability to hold bonds — a feature prohibited by the Volcker rule.

“Since ...

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