CLO managers are receiving a small concession from regulators that will allow them to refinance most of their issues in two years without triggering risk-retention rules, sources say.

In a move that will somewhat ease the minds of holders of CLO equity tranches, federal regulators are expected to soon clarify that they will permit refinancing of most existing collateralized loan obligations after 2016, when new CLOs will be issued with forthcoming risk-retention requirements.

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