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Clearing House Said to Work on Volcker Rule-Compliant CLO Plan 

May 14, 2014
Kristen Haunss, Bloomberg

Collateralized loan obligations are about to get some help in complying with the Volcker Rule.

The Clearing House Association LLC, a trade group representing large U.S. banks, is seeking to develop guidelines that may make it easier for CLO managers to amend existing deals to make them satisfy the regulation, according to two people with knowledge of the matter, who asked not to be identified without authorization to speak publicly.

The Volcker Rule, aimed at making the financial system safer, prohibits banks from investing in CLOs that own bonds. Released in December, the regulation may cost banks in the U.S. as much as $4.3 billion, according to a study by the Office of the Comptroller of the Currency.

Read more: Bloomberg

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