Ripples from the Tsunami

With risk retention proving not to be the market-killer it was expected to be, ACI finds CLO managers are switching focus from compliance to capital efficiency.

When US risk retention rules were announced late in 2014, the reaction from CLO managers was nearly unanimous. The rules – which require managers to hold on to 5% of the securities in a CLO for the life of the fund – would make CLO issuance prohibitively expensive for most