If you were a small, independent firm managing collateralized loan obligations when the financial crisis hit, there’s a decent chance you were swallowed up by a larger competitor. More than 30 CLO managers were acquired following the crisis, according to research done by S&P Capital IQ LCD.

The expectation that the newly approved 5% risk retention rule, which takes effect in 2016, will spell more trouble for the CLO market’s little guys could mean another round of attempts to sell off CLOs. But this time, the wave of consolidation may turn out to be more of a splash, says Oliver Wriedt, head of capital markets and distribution at New York-based CIFC Asset Management. That’s because lower management fees and higher financing costs make an acquisition today less attractive than it was in the 2010 to 2012 period.

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