The Loan Syndications and Trading Association will appeal a Dec. 22 federal district court ruling that shot down the trade group’s 2016 lawsuit against U.S. financial regulators challenging new risk-retention standards for collateralized loan obligations.

The LSTA announced late Thursday it planned to file an appeal to the Federal Court of Appeals in the D.C. circuit.  The group had been mulling its actions since the district court issued its ruling last month, which the LSTA stated “disappoints” an industry worried that the rules will curtail CLO issuance and hamper financing to speculative-grade companies that depend on syndications of their high-risk loans to securitization investors.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.