The CLO industry has spent the last few years lobbying to reduce the impact of financial regulation enacted since the financial crisis. So President-Elect Donald Trump’s vow to reevaluate the regulatory landscape is certainly welcome.

Managers of collateralized loan obligations have long argued the requirement to keep 5% of the economic risk in their deals is particularly onerous. Most acquire their collateral in the secondary loan market, and have little balance sheet of their own.

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