February in CLOs: it’s a great time to be an equity investor

Risk retention is going away, spreads are plummeting, and CLOs are launching with more equity-friendly structures

The potential repeal of US risk retention rules was, unsurprisingly, the main topic of discussion in the CLO market in February. After being in effect for a little over a year, the much-maligned – but ultimately, not particularly bothersome – risk retention regime looks as though it will soon be