Terms

  1. Home
  2. Terms
  3. Structured Security
  4. Risk Retention Rule

Risk Retention Rule

Parent term
Structured Security
The Risk Retention rule was a part of the Dodd Frank act that required structured security mangers to retain up to 1/2 of the equity tranche of deals they originated

  • Part of the Dodd Frank act
  • Required CLO managers to keep up to 1/2 the equity tranche of deals they originated
  • Goal was to align manger interests with that of investors
  • Rule was invalidated by U.S. Court of Appeals in 2018

Warnings and Disclaimers

The information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. It is not designed to meet your personal financial situation - we are not investment advisors nor do we give personalized investment advice. The opinions expressed herein are those of the publisher and are subject to change without notice. It may become outdated an there is no obligation to update any such information.

Copyright Finnotes.org © 2018 - 2020