SIFMA today issued the following statement from Kenneth E. Bentsen, Jr., SIFMA president and CEO, on the Federal Reserve's announcement of a two year extension of the conformance period for collateralized loan obligations (CLOs) under the Volcker Rule:
"We are disappointed that the agencies involved did not use their rulemaking authority to provide broad relief from the Volcker Rule to legacy CLOs. SIFMA strongly believes that regulators should have addressed the problem in a comprehensive, coordinated, and conclusive manner yet the statement released today seems to suggest the Agencies have taken a different approach.
"While SIFMA and our members are still digesting the implications of today's announcement, we note that any forced selling of these securities will result in widening of spreads in CLO trading markets and damage a key source of funding for Main Street businesses. SIFMA is committed to making the Volcker Rule as workable as possible for the capital markets and the businesses that rely on them."
