Managers aren’t waiting around to see if collateralized loan obligations (CLOs) get a last-minute reprieve from the Volcker Rule. Some recently priced deals, by managers including Columbia Management Investment Advisors and Black Diamond Capital Management, have provisions for excluding investments in corporate bonds.

The final version of the Volcker Rule, released in early December, makes securitizations backed by anything other than loans or leases off limits to banks. And most CLOs, though they are backed primarily by below investment grade corporate loans, also have significant exposure to bonds. That means banks will be prohibited from owning, sponsoring, or extending credit to these deals once the rule goes into effect in 2015.

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