The Loan Syndications and Trading Association thinks that there is just as strong an argument for exempting collateralized loan obligations from the Volcker Rule as there is for collateralized debt obligations backed by trust preferred securities, and it wants regulators to rule on the two investment vehicles at the same time.

On Dec. 31, the LSTA, along with the Securities Industry and Financial Markets Association, the Structured Finance Industry Group and the Financial Services Roundtable, submitted a letter to joint federal regulatory agencies asking them to confirm, by Jan. 15, 2014, that CLO debt securities that have the right to replace a manager for cause should not be considered “ownership interests” under the Volcker Rule.

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