News & Analysis as of

Collateralized Loan Obligations Banks

Dechert LLP

Fix the CRE CLO, Mr. Market:  Tear Down This Wall!

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CRE CLO technology is languishing in the toolbox.  A combination of high interest rates, a mispriced legacy book, an anxious investor base and no real need to refresh capital until borrowers start borrowing again is largely...more

Morgan Lewis

Structured Credit Solutions for Private Credit Funds in European CRE Debt Market: Options and Opportunities

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European commercial real estate (CRE) lending markets face a difficult environment, resulting from a higher than usual cost of debt and declining property valuations. In the face of such uncertainties, we examine how private...more

Cadwalader, Wickersham & Taft LLP

The End of the Temporary Transitional Power: Securitisation Reporting

Brexit and the Temporary Transitional Power - On 31 January 2020, the UK ceased to be a member of the EU. Following a transition period, EU law ceased to be applicable in the UK with effect from 11 p.m. on 31 December...more

Dechert LLP

The CRE CLO Unleashed

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Our fine little CRE CLO business has exploded over the past couple of years, hasn’t it?  Last year, around this time, I recklessly predicted for my friends at Commercial Mortgage Alert that we might hit $30 billion of...more

ArentFox Schiff

LIBOR Transition: Potential Higher Interest Rates and Resultant Job Cuts

ArentFox Schiff on

How challenging is LIBOR Transition proving to be in the US structured finance market? Like street-corner proselytizers holding signs warning “The End is Near,” world markets, banks, and other financial institutions have...more

Dechert LLP

BEA’s BE-180 Benchmark Survey of Financial Services Providers: Implications for U.S. CLO Managers

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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

Lowenstein Sandler LLP

Kirschner v. JPMorgan Chase Bank: Case Update

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In a previous post, we discussed Kirschner v. JPMorgan Chase Bank, an action in which the trustee of bankrupt Millennium Labs brought state law securities fraud claims on behalf of a group of “approximately 400 mutual funds,...more

Kramer Levin Naftalis & Frankel LLP

2020 Stress Tests to Emphasize Leveraged Lending Risks

On Feb. 6, the Federal Reserve Board released the hypothetical scenarios for the 2020 stress test exercises, which ensure that large banks have adequate capital and processes to continue lending to households and businesses...more

K&L Gates LLP

New Japanese Securitization Risk Retention Rule and Its Impact on CLO Investors in Japan

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In December 2018, the Financial Services Agency of Japan (the “JFSA”) proposed amendments to its regulations under the Banking Act of Japan to introduce a new risk retention rule applicable to collateralized loan obligations...more

Kramer Levin Naftalis & Frankel LLP

Fed Concludes That Banks Have Improved Management of Leveraged Lending Risks Even as Noninvestment-Grade Debt Has Grown

On May 6, 2019, the Board of Governors of the Federal Reserve System (the Board) published its annual Financial Stability Report....more

Kramer Levin Naftalis & Frankel LLP

IMF Finds Leveraged Lending an Area of Concern, But Risks Are Mitigated

On April 10, 2019, the International Monetary Fund (IMF) held a press conference to discuss its semiannual Global Financial Stability Report (the GFSR), which assesses key risks facing the global financial system. The GFSR...more

Dechert LLP

Japanese Risk Retention: JFSA Favors Diligence Over Disruption

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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

Dechert LLP

Japanese Risk Retention: Tidal Wave or Ripple in Still Waters?

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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

Ballard Spahr LLP

Investment Management Update - October 2015

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Below is a summary of recent investment management developments that affect registered investment companies, private equity funds, hedge funds, investment advisers, and others in the investment management industry. Schwab...more

Bilzin Sumberg

Newly Passed Bill May Impact Dodd-Frank Act

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The House of Representatives passed legislation that could loosen some of the restrictions imposed by Dodd-Frank on big banks. The bill, Promoting Job Creation and Reducing Small Businesses Burden Act, passed by a margin of...more

Burr & Forman

Dodd-Frank News: May 2014: Dodd-Frank Wall Street Reform and Consumer Protection Act Update

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In This Issue: - RECENT CASES ..Preemption ..CFPB Involvement in Litigation ..CFTC Regulation of Retail Commodity Transactions ..Durbin Amendment ..Appraiser Disclosure Requirements Under...more

Dechert LLP

Fed Issues Additional Guidance on Extended Conformance Period – Be Careful What You Ask For

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A few steps forward and a giant leap back. This familiar phrase might be the perfect summary of the CLO market’s Volcker Rule roller coaster since December 2013. A few weeks ago we wrote about the Federal Reserve Board’s...more

Ballard Spahr LLP

Federal Reserve Extends Compliance Period under Volcker Rule for Collateralized Loan Obligations

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While collateralized loan obligation vehicles (CLOs) may ultimately have to be divested by “banking entities” subject to the Volcker Rule, the Federal Reserve Board (the Board) recently extended the compliance period for...more

Katten Muchin Rosenman LLP

Federal Reserve Extends Compliance Deadline for CLOs

On April 7, the Federal Reserve Board (Board) announced that it intends to exercise its authority to give banking entities two additional one-year extensions to conform their ownership interests in, and sponsorship of,...more

Dechert LLP

Federal Reserve Extends Volcker CLO Compliance Period

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On April 7th the Federal Reserve Board (the “Fed”) announced that it would provide banking entities with two additional one-year extensions to conform their ownership of CLOs covered by the Volcker Rule. The Fed stated that...more

Cadwalader, Wickersham & Taft LLP

EU Risk Retention Requirement: A Workable Solution For US CLO Collateral Managers?

Background - Article 405 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU)...more

Skadden, Arps, Slate, Meagher & Flom LLP

The Final Volcker Rule: Impact on Securitizations

On December 10, 2013, five U.S. financial regulators (the Agencies) adopted a final rule implementing the Volcker Rule (the Final Rule). The text of the Final Rule and its accompanying lengthy preamble (collectively, the...more

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