Regulators' Volcker response leaves banks little wiser on CDOs

Regulators responded yesterday to pleas for guidance on how CLOs and trups CDOs would be treated according to the final draft of the Volcker rule

TAGS: Regulation CLO

Comment by: Anonymous. Posted 10 years ago [2014-01-07 10:04:16]

It makes sense that banks may "take the ultra-conservative approach and look to sell." But then some of them will ask "why sell at the diminished price that results from so many bank sellers?" The wider yield now has a Volcker Risk Premium while the banks that choose not to sell are running the Volcker Risk of adverse regulator decisions in 2015.