If the Second Circuit reverses a district court ruling and holds that a syndicated term loan is a security, the implications would be immense for banks, CLOs and other parties.

CLO issuance backed by broadly-syndicated loans held fairly steady in the third quarter, but the CRE sector tanked and refi/restructuring fell off the edge of the cliff. (Includes two data charts.)

Stress testing suggests that broadly syndicated loan CLOs are resilient to collateral depreciation, according to Fitch. Though DBRS expects some reduction in credit quality increased defaults.

Private equity investors are turning to collateralized fund obligations, which include some features from the collateralized loan obligation sector. KBRA rated its first CFO last week.

Rising mortgage interest rates increased the market share of jumbo loans, ARMs and expanded-credit mortgages in the second quarter, while the agency market shrank. The result was a downturn in securitization rates. (Includes data chart.)

FINRA and the MSRB plan to cut the reporting time for TRACE-eligible trades from 15 minutes to just one.

A sharp decline in restructuring of existing CLO deals overshadowed a substantial increase in new BSL securitization during the second quarter of 2022. (Includes two data charts.)

CLOs managers are responding to tough market conditions by making changes to their products, for example proposing to remove buckets for discounted assets.

A growing acceptance among collateralized loan obligations of B- loans is creating some risks for the market, according to S&P Global Ratings.

Investors are showing little demand for new issuance of CLOs and trading in the secondary market. CLOs are being sold off and are meeting with few potential buyer options.