Europe

International bank regulators finalized changes Thursday that will greatly diminish the role of external ratings agencies in weighting the risk of securitized assets in capital requirements.

Wells Fargo expects Issuance of collateralized loan obligations is to moderate in 2015, to $90 billion.

While risk retention will hit smaller managers hard, Oliver Wriedt of CIFC Asset Management, one of the biggest, thinks the potential for consolidation may be overstate.

John Lapham, co-head of leveraged finance at PineBridge Investments, thinks that the ranks of CLO managers could start to thin well before risk retention rules take effect in 2016.