U.S. Risk Retention Rules: What Constitutes an Open-Market CLO?
Author: Deborah Festa.; Andrew Keller.
Source: Volume 51, Number 13, July 15 2018 , pp.159-164(6)

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Abstract:
The authors discuss the LSTA case and argue that a new CLO that would otherwise qualify as an open-market CLO should not be deemed a balance-sheet CLO solely because it acquired certain assets from an existing account rather than in open-market transactions. They close with five factors that should make it more likely for a new CLO to qualify as open-market.Keywords: Loan Syndications & Trading Ass’n v. SEC; Open-Market CLOs
Affiliations:
1: Milbank, Tweed, Hadley & McCloy LLP; 2: Milbank.