Over the past year, there have been regulatory actions that implement or modify the risk retention regulations and requirements applicable to collateralized loan obligations (“CLOs”) in both the U.S. and the EU. In light of these regulatory changes, CLO managers have developed legal structures to enable them to comply with risk retention requirements.

Click here to read this chapter, published in the 2016 edition of The International Comparative Legal Guide to: Securitisation, in which SRZ partners Craig Stein and Paul N. Watterson, Jr. review the U.S. and EU risk retention requirements and discuss the challenges facing CLO managers in complying with the requirements. SRZ partner Anna Maleva-Otto assisted in the preparation of this chapter.