"Key Questions and Answers Following Court Decision to Vacate Risk Retention Rule for Most CLO's" by Matthew Riccardi

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February 13, 2018

The United States Court of Appeals for the D.C. Circuit issued an important decision on February 9, 2018 that will have significant implications for CLO managers, investors and other securitization market participants.  The D.C. Circuit’s decision vacates a federal district court decision upholding a federal rule that construed open market CLO managers as “securitizers” and required them to retain 5% of the credit risk of assets held by a CLO even though they only selected the loans to be acquired by the CLO. 

In this client alert, RK&O partner Matthew M. Riccardi answers key questions about the new court decision and the impact it will have. 

Click here to read the full client alert.