Image: The United States Court of Appeals, District of Columbia Circuit

Federal Judge Grills Regulator on ‘Skin in Game’ Rule for CLOs

By Glen Fest

The central argument in a federal lawsuit challenging rules requiring CLO managers to keep “skin in the game” of their deals is that they were never in the game to begin with.This might carry some weight with the U.S. Court of Appeals in Washington, if oral arguments at a hearing last week are any indication.

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