Ares fined $1 million by SEC over 'misuse of non-public information'
Ares Management has been fined $1 million by the US Securities and Exchange Commission in a settlement surrounding compliance failure relating to a portfolio company

It's confirmed: loans are not bonds in " victory for the flow of capital to American businesses"
You're a loan. No, nothing to do with lockdown and social distancing. It's actually a victory for the $1.2 trillion US loan market as a court ruling finds that loans are not securities in the long-running Kirschner v. JP Morgan Chase case

Fed announces first loan subscription date for talf
The Federal Reserve Bank of New York announced yesterday that the first loan subscription date for the term asset-backed securities loan facility will be 17 June and the first loan closing date will be 25 June

CLO market welcomes 'favourable and surprising' revisions to talf, but issues remain
CLO participants are welcoming the 'many favourable and even pleasantly surprising' revisions to the term asset backed lending facility announced by the US Federal Reserve today to address previous concerns. This could help reignite the market, but some issues were not addressed

The CMBS talf proposal is simple and effective. A similar approach for CLOs would be welcomed
It’s great that government is trying to boost securitisations, but they’re missing the mark for CLOs

Fed expands Main Street direct lending scheme but it's unlikely to help CLOs
The US Federal Reserve Board has expanded the scope of its Main Street Lending Programme following more than 2,200 letters of feedback. Under the third loan facility, lenders will hold 15% of the loan to borrowers with greater leverage

Fed to publish information on borrowers making use of the talf programme
The US Federal Reserve will disclose information about borrowers making use of its emergency facilities

VAT guidance leaves CLO managers in 'limbo' as they weigh options
The Dutch Tax Authority’s move to ease the pressure on European CLO managers by grandfathering deals against VAT until at least January 2021 has drawn mixed responses

European CLOs earn VAT wiggle room - and varying grandfathering protection
European CLOs domiciled in the Netherlands have been given some breathing room as various stock exchange announcements suggest the Dutch Tax Authority (DTA) will not retroactively impose VAT bills on CLOs

SEC proposes new fund valuation framework
The US Securities and Exchange Commission has proposed a new framework for funds to determine fair value for assets for which market quotations are not readily available, which it says will "improve valuation practices and thereby protecting investors and improving market efficiency, integrity and fairness"

SEC temporarily relaxes regulations for BDCs
The US Securities and Exchange Commission has provided business development companies with temporary relief in light of covid-19 - including the ability of BDCs, who are unable to satisfy asset coverage ratios, to use an alternative form of calculating leverage

Fed commits $600 billion to SMEs in Main Street Lending facility
The US Federal Reserve has committed to buy up to $600 billion in loans to small and medium-sized businessness through its Main Street Lending Programme. The programme will sit alongisde the existing Payroll Protection Program (PPP), a separate facility exclusively for small businesses 

Fed backs new issue CLO triple As in amended talf programme
The Federal Reserve’s term asset-backed securities loan facility (talf) has been expanded to support CLO triple As

Investors watch Libor amid inter-bank liquidity concerns
After a freefall to 74 basis points on 12 March, CLO managers found some relief in watching Libor rise to 120bp during the second part of the month.

Trade body asks US government to show it CARES about BDCs
The US federal stimulus maintains existing regulations that exempt portfolio companies from accessing the stiumulus funds. The Institutional Limited Partners Association wants to change that

Delay on derivatives phase five initial margin roll-out is vital, says Isda
Regulators must agree to delay the roll out of the next initial margin phase because of the coronavirus pandemic - and notify the market soon, the International Swaps and Derivatives Association has said in a letter signed by 21 trade associations

SEC relaxes borrowing rules for funds affected by covid-19
The US Securities and Exchange Commission has granted registered funds temporary relief and flexibility to borrow capital from affiliates and enter into lending arrangements as they address the impacts of covid-19 on their portfolios

Fed accepts triple A-rated CLOs in new 'primary dealer credit facility'
The US Federal Reserve Board will establish a primary dealer credit facility on Friday (20 March) to help defend against the impact of coronavirus-led market volatility

CLO manager notices cast doubt on Dutch VAT hike
An expected Netherlands VAT tax on CLOs has been thrown into doubt today, with several managers issuing announcements to their investors that suggested there will be a grace period, as well as no back payment

Dutch VAT ruling to reduce impacted CLO equity returns by 1 to 2%, says BofA
The Dutch tax authority’s decision to charge a 21% VAT on CLO collateral management fees will have a ‘substantial’ impact on equity, with returns likely to be 1 to 1.2% lower going forward, according to a research paper published by Bank of America

Managers seeking bond buckets will need high yield track record
US CLOs could soon be permitted to buy corporate bonds amid an overhaul of the Volcker rule, but market sources say that in the short term bond flexibility is a luxury that will only be afforded to a select group of CLO managers.

Dutch-registered CLO costs to jump 10bp as managers face VAT bill
CLO special purpose vehicles in the Netherlands are to be clogged with a 21% VAT bill on management fees, according to market sources, a blow to equity investors in around 20% of European CLOs

CLO industry pushes back against NAIC's combo note proposals
A fight is brewing over the National Association of Insurance Commissioners’ proposals to tighten regulations for insurers that buy purchase CLO combo notes

New accounting rules could be the axe that decapitates zombie credits

CLOs in line to benefit with Volcker rewrite on the horizon
The Volcker rule is set to get a shake-up and CLOs look likely to benefit, according to market sources. As Creditflux goes to press, a board of US regulators is expected to announce proposals to update the 2010 law.