In the client alert, “Cross Trades and Principal Transactions – Recent SEC Guidance Relevant for CLO Managers,” the Structured Finance & Securitization team discussed the importance of the Security Exchange Commission’s (SEC’s) Division of Examinations recent Risk Alert. The Risk Alert included guidance and warnings based on more than 20 examinations of investment advisers that engaged in cross trades or principal transactions involving fixed income instruments. As SEC-registered advisers, the SEC’s observations and guidance are equally relevant for managers of collateralized loan obligation vehicles (CLOs).
Click here to read the full alert.