"... an entire ecosystem has been created around financing the portion of risk in each deal that needs to be retained. Fund managers have created risk-retention funds that have lured billions of dollars from big institutions around the world. Some of these investors wouldn't have otherwise invested in CLOs, particularly the riskiest slices of them, because those pieces are often sold in small increments and sometimes aren't worth the time of big investors.
"Wells Fargo's David Preston estimates that more than $7 billion has been raised for such risk-retention funds since March 2016. It's unlikely that CLO managers will be eager to give up these investors, who seem to like the way this structure works."
The biggest overhaul in a decade to the way fund managers are regulated in Europe could hasten mergers and acquisitions among companies already trying to fend off competition from cheaper products. (Sep 15)
The Senate passed a slate of securities bills that affect investor disclosures, research, venture capital funds; legislation heads to president's desk after unanimous passage. (Sep 12)
The Cyber Cafe
Cybersecurity news every Friday.
New report unveils top 3 cybersecurity threats facing business data
For organizations securing sensitive data, ransomware, insider vulnerabilities, and denial of service attacks are their most-feared threats, according to a new report from the SANS and Infoblox.
The capstone of regulatory reform in the wake of the financial crisis can be characterized as an effort to change the financial industry by getting bankers to behave more ethically.
'Friends of the Court' have hidden ties to big investors
Judges have allowed non-parties to appear as friends of the court for more than a century. But the volume of amicus briefs at the Supreme Court has doubled over the past 20 years.
