Fizzing CLO market crashes Volcker lobbyists’ party

Ten billion dollars of new US collateralised loan obligations have torpedoed banks’ case for an exemption in the Volcker Rule to prevent them having to sell off their holdings of the structured product. The argument that uncertainty over the rule’s impact is strangling the credit market appears significantly weakened after the busiest four week period for CLO sales since before the financial crisis, write Matthew Scully and Will Caiger-Smith.