On 14 September, the International Organization of Securities Commissions (IOSCO) published a Consultation proposing new good practices in the leveraged loan (LL) and CLO markets.  These practices are designed to address perceived vulnerabilities identified in the LL and CLO markets across five key areas:

• Origination and refinancing based on a sound business premise;
• EBITDA and loan documentation transparency;
• Strengthening alignment of interest from loan origination to end investors;
• Addressing interests of different market participants throughout the intermediation chain; and
• Disclosure of information on an ongoing basis.

Feedback can be submitted to [email protected] by 15 December 2023.  IOSCO aims to finalise the good practices by Q1 2024.  This consultation paper was published alongside a report on the emerging risks in private finance.

For more information, please contact Guillermo Pérez Molina, Private Credit Associate.