A Funny Thing Happened on the Way to a CLO Rule Rollback
https://www.bloomberg.com/gadfly/articles/2017-09-13/clos-show-wall-street-rules-can-linger-despite-rollback [www.bloomberg.com]
2017-09-15 06:13
This is a prime example of just how malleable and creative markets can be and how regulatory roadblocks have given rise to new ways of doing business that may end up remaining standard practice long after the rules are lifted.
Matt Levine has some good commentary: https://www.bloomberg.com/view/articles/2017-09-14/insider-trading-and-risk-retention
So the risk-retention rules, which were meant to cut down on the abuses of structured finance, created more structured finance.
source: ML