CLOs that rely on Rule 3a-7 are exempt from several regulatory regimes that apply to traditional CLOs that rely on Section 3(c)(7) -
These CLOs are structured similarly to Section 3(c)(7) CLOs, but are subject to...more
With the turbulent macroeconomic climate, we have seen increased growth over the past couple of years in alternative private credit financing structures. In particular, there has been an upswing in private, bespoke...more
In September and October 2020, the U.S. Department of Commerce’s Bureau of Economic Analysis (BEA) is administering its next mandatory Benchmark Survey of Financial Services Transactions between U.S. Financial Services...more
10/14/2020
/ Asset Management ,
Banks ,
BE-180 ,
BEA ,
Benchmarks ,
Broker-Dealer ,
Collateralized Loan Obligations ,
Cross-Border Transactions ,
Data Collection ,
Financial Services Industry ,
Fund Managers ,
Surveys
The Fed throws a bone to the CLO market by reducing the non-call period from three years to one year, but this small victory will likely have little impact given the numerous obstacles which remain unaddressed....more
The Fed releases more specifics and a start date for its Term Asset Backed Loan Facility (TALF) program, but overall the picture which emerges makes it less likely that the program will facilitate the flow of credit to US...more
As revised, TALF may provide a safety net in the event of catastrophic CLO market conditions but is not likely to meet the goal of reviving the corporate loan market
Introduction -
On May 12, 2020, the Federal Reserve...more
Mark Twain is often misquoted as saying "History never repeats itself, but it often rhymes." Whoever said them, these words certainly come to mind in the current economic crisis brought about by the COVID-19 pandemic....more
5/2/2020
/ Borrowers ,
CLO Indenture ,
Collateralized Loan Obligations ,
Coronavirus/COVID-19 ,
Default ,
Distressed Debt ,
Equity Securities ,
Financial Crisis ,
Insolvency ,
Lenders ,
Market Participants ,
Trading Restrictions
On April 9, 2020, the Federal Reserve Board of Governors (the “Fed”) released an updated term sheet (the “Updated Term Sheet”) for the Term Asset-Backed Securities Loan Facility (“TALF”) program. While the Updated Term Sheet...more
On April 9, 2020, the Federal Reserve Board of Governors (the “Fed”) released an updated term sheet for the Primary Market Corporate Credit Facility (“PMCCF”) program, providing additional detail and further clarification of...more
4/15/2020
/ Bonds ,
CARES Act ,
Collateralized Loan Obligations ,
Equity Investors ,
Federal Reserve ,
Primary Market Corporate Credit Facility (PMCCF) ,
Relief Measures ,
Secondary Market Corporate Credit Facility (SMCCF) ,
Special Purpose Vehicles ,
Term Asset-Backed Securities Loan Facility (TALF) ,
Term Sheets ,
U.S. Treasury
No Good News, but No Bad News Either -
On 16 October 2019 the European Commission (EC) adopted a delegated regulation supplementing Regulation (EU) 2017/2402 (the Securitisation Regulation) and setting out the final...more
10/31/2019
/ Collateralized Loan Obligations ,
Disclosure ,
EU ,
European Commission ,
European Securities and Markets Authority (ESMA) ,
Final Rules ,
Investors ,
Market Participants ,
Originators ,
Regulatory Standards ,
Securitization ,
Securitization Standards ,
Special Purpose Entities ,
Sponsors ,
Technical Standards ,
Transparency
In this report, members of Dechert’s multidisciplinary permanent capital team provide a round-up of legal and business considerations for private credit, BDCs and everything in between.
Topics covered include:
-...more
4/12/2019
/ Acquisitions ,
BDC ,
Business Development Companies ,
Business Tax Credits ,
Capital Formation ,
Close-Ended Funds ,
Collateralized Loan Obligations ,
Corporate Restructuring ,
Credit ,
EBITDA ,
Investment Company Act of 1940 ,
Leveraged Finance ,
Mergers ,
Securities and Exchange Commission (SEC) ,
Structured Financial Products ,
Tax Reform
The new Japanese Risk Retention Rules will lead to increased loan and collateral manager due diligence by Japanese investors but not wholesale changes to the CLO market.
Background -
On March 15, 2019, the Japanese...more
On December 28, 2018, the Japanese Financial Services Agency (the “JFSA”) published a number of notices detailing proposed changes in the regulatory capital requirements applicable to Japanese banks and certain other...more
In an eagerly anticipated (and much speculated upon) decision, a three judge panel of the United States Court of Appeals for the District of Columbia Circuit (“DC Circuit Court”) issued a unanimous opinion on Friday, February...more
2/23/2018
/ Appeals ,
Asset-Backed Securities ,
Collateralized Loan Obligations ,
Dodd-Frank ,
Final Rules ,
Fund Managers ,
Lack of Authority ,
Loan Syndication and Trading Association (LSTA) ,
Reversal ,
Risk Retention ,
Vacated
The staff of the Division of Corporate Finance (the “Staff”) of the U.S. Securities and Exchange Commission issued an interpretive letter (the “Interpretive Letter”) to Sancus Capital Management LP and its affiliates (“Sancus...more
Over the last year and a half, asset managers of collateralized loan obligations (“CLO Managers”) have been focused on developing various strategies to enable them to comply with the retention requirements of the final U.S....more
8/17/2016
/ Affiliates ,
Asset-Backed Securities ,
Capital Raising ,
Collateralized Loan Obligations ,
Disclosure Requirements ,
GAAP ,
Investor Protection ,
Residual Interest ,
Risk Retention ,
Safe Harbors ,
Securitization ,
Valuation
We will leave the hand wringing and teeth gnashing to others. We expect there will be a lot of that in the days ahead. We have had our say on the misguided premises and tortured statutory interpretation underpinning the final...more