Occupied by Wall Street Part 2 – Creating CLOs to Bypass Regulations

Leon Black’s Apollo Global Management LLC, Carlyle Group LP and a unit of Credit Suisse Group AG have all taken steps in the past two months to create CLOs now that they may be able to refinance after the rules take effect in December 2016 without having to comply with the new regulations, according to three people with knowledge of the matter. The firms are trying to avoid a requirement to hold a stake in the funds they manage.
– From the Bloomberg article: Wall Street Creating CLOs That May Bypass Rules: Credit Markets
As the U. S. inches closer to a cyclical downturn within the secular theft up-cycle known as the oligarch recovery, the craftiest of financial oligarchs will be scurrying to position themselves as beneficially as possible while not missing out on any crumbs that remain ripe for the taking. As such, it behooves us all to pay increasingly close attention to their shenanigans. In this regard, we have some excerpts from the following Bloomberg article:
(Bloomberg) – Wall Street has another rule it’s trying to get around: regulations seeking to limit risk-taking by managers of collateralized loan obligations.
Leon Black’s Apollo Global Management LLC, Carlyle Group LP and a unit of Credit Suisse Group AG have all taken steps in the past two months to create CLOs now that they may be able to refinance after the rules take effect in December 2016 without having to comply with the new regulations, according to three people with knowledge of the matter. The firms are trying to avoid a requirement to hold a stake in the funds they manage.

This post was published at Liberty Blitzkrieg on Jan 29, 2015.

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