Risk-Retention Reproposals Fail To Offer Relief

September 19, 2013
Collateralized loan obligation (CLO) managers and lead arrangers of syndicated loans received special attention in a proposal jointly released by six federal agencies to implement the credit risk-retention requirements of Section 941 of the Dodd-Frank Act. Whether the new proposal will have its intended effect of minimizing the financial burden on CLO managers remains to be seen.