The CLO market is adapting quickly to its new regulatory environment with managers changing structures and market participants holding open communication as to what this all means. There is, however, some debate over various items in the report. 

9fin sources indicate that Association for Financial Markets in Europe (AFME) held a call about the report today (3 April) with over 180 market participants, which included lawyers, managers and arrangers.

According to two sources, participants on today’s AFME call stated that the European Supervisory Authority is looking to clarify, potentially as early as tomorrow (4 April), on whether those CLOs that are caught between pricing and closing are impacted by the statements in the joint report.

Furthermore, participants on the call were told there will be further legislative changes, with drafts of a proposed legislation to come as early as 17 June.