U.S. CLOs: Past and Present

Abstract

Collateralized loan obligation transactions (CLOs) in the United States have proved a resilient investment product, having survived the financial crisis virtually unscathed. Since 2011, there has been a revival in the United States of offerings of CLOs. But U.S. CLOs have gone through many changes since the financial crisis both in direct response to the aftermath of the financial crisis and in response to new regulations. This article examines the changes in CLO structures and documentation since the financial crisis—general improvements in CLO indentures, adjustments in response to the Volcker Rule, as well as changes to comply with risk retention regulations.