For the past two years, the Loan Syndications & Trading Association has lobbied, largely unsuccessfully, to limit the impact of rules requiring CLO manager to keep “skin in the game” of their deals.

The trade group has appealed to Congress as well as federal regulators, arguing that risk retention requirements, which were designed to discourage irresponsible underwriting, should not be applied to collateralized loan obligations. It has even taken the Securities and Exchange Commission, as well as the Federal Reserve, to court..

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