The recently published report by the Joint Committee (JC) of the European Supervisory Authorities on the functioning of the Securitisation Regulation (SECR) has generated significant discussion across the CLO industry, particularly in relation to certain risk retention structures.
In this LFI Q&A session, Clifford Chance Partners Blake Jones and Julia Tsybina, and Knowledge Director Andrew Bryan, unpack the key takeaways from the report, and the implications for CLO market participants.
LFI: What are the key recommendations outlined in the Joint Committee report that are relevant to CLO managers and investors?
Andrew: The most pressing issue within the report relates to Originator Risk Retention structures and the importance of “predominant source of revenue” under the sole purpose test…