While leverage continues to drift higher in the market, it appears investors are happy to accept lower levels of premium on credit-based assets

Almost four years ago the US Securities and Exchange Commission and US Federal Reserve implemented capital reserve requirements such that collateralized loan obligation (CLO) sponsors would be required to invest capital in the CLOs they manage – a structural change designed to align the interests, and more importantly, the risk exposures, of sponsors with that of investors. The requirement was set in motion as part of a large swathe of regulatory changes implemented under Section 941 of the Dodd-Frank Act.
However, in a somewhat surprising move . . .


This content is exclusively for paying members. Access all of our content on including years of timeless investment news and in depth analysis for only a few dollars a month by signing up here while also supporting quality content and journalism, or learn more about our premium content here

If you are subscribed and having an account error please clear cache and then cookies if that does not work email support@valuewalk.com and we will get back to you as quick as humanly possible

Saved Articles

Are you a smart investor? Join tens of thousands of sophisticated investor reading our authoritative free newsletter

* indicates required

Congrats! Are you a smart person?

We have an exclusive targeted for being a sophisticated and loyal reader.

Sign up for ValueWalkPremium today and get our exclusive content for 35% off.

Use coupon code vip19 or click on the button below

Limited time offer only ENDS 11/30/2019 or after next 25 12 subscribers take advantage whichever comes first – please do not share this discount with others