CLO buyers could pay for manager’s disclosure failings

Jun 12, 2019

Cadwalader partner Nick Shiren spoke about how Europe’s new Securitisation Regulation could impact CLO investors, as part of a panel about regulatory issues at the IMN/Afme Global ABS conference in Barcelona, GlobalCapital reported.

Shiren explained that while a CLO issuer will be the party responsible for disclosing transparency information under the new regulation, it will need to source this data from the collateral manager, who holds all the details of the CLO exposures.

“These are the types of issues investors are very alive to, and which have become a negotiating point in recent deals,” said Shiren.

The article covers additional implications of the new disclosure rules, such as how EU investors are approaching compliance for transactions that originate elsewhere. 

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