Articles by author
Passing regulatory headwinds for a flourishing European CLO market
2020 was a relatively slow year for what had been a booming CLO market, with the initial stages of the pandemic resulting in a short-term dip in perceived corporate debt value and a reluctance of investors to deploy capital ahead of the implementation of state-led recovery packages. 2021 has been starkly different, with issuance volumes in the European CLO market set to potentially match or exceed those achieved in 2018 and 2019.1 Whilst the market flourishes, behind the scenes market participants have had to grapple with an ever-evolving regulatory environment. In particular, sell-side market participants must determine how to adapt and evolve to achieve the best overall results for their investors across the capital structure, many of whom are placing increased emphasis on more sustainable investment strategies. A few of the key current topics are considered herein.
1 NOV 2021European middle market CLOs could rise in 2024: despite some challenges
Collateralised loan obligations (CLOs) are a prominent feature in the European capital markets landscape. Last year, public issuance of CLOs in Europe generated a volume of €26bn from 69 deals, remaining relatively steady from 2022 despite a slow start to the year. However, the market is off to a strong start in 2024, with year-to-date volume at the end of February standing at €6.3bn and with market participants predicting a bumper year.
31 MAR 2024Case Analysis – September 2022
Harry Stratton and Henry Hoskins of One Essex Court report on two cases banking law cases, and Alex Martin and Christopher Sullivan of Latham & Watkins report on an order for injunctive relief
1 SEP 2022Conflicting signals? Potential impacts of the SEC’s proposed conflicts of interest rule on UK and EU CLO managers
On 25 January 2023, the US Securities and Exchange Commission (SEC) proposed a far-reaching rule (Rule 192)11 to prohibit securitisation transactions involving or resulting in a material conflict of interest between certain securitisation participants and investors. The rule is required by s 27B of the Securities Act,122 as inserted by s 621 of the Dodd-Frank Act.233 In this In Practice article the authors consider the impact of Rule 192 on UK and EU CLO managers. 3
1 JUN 2023Consolidation in the CLO management industry: hampered by EU and UK risk retention requirements?
In this In Practice article, the authors consider the regulatory restrictions that hamper the transfer of risk retention where a collaterised loan obligation (CLO) manager wants to solely acquire a CLO management contract from the incumbent CLO manager.
1 MAR 2024Private portfolio financings on the rise
In this article the authors consider the benefits of private portfolio financings in light of challenging conditions for CLO issuance.
1 NOV 2023
