Senator Elizabeth Warren (D. MA) recently introduced the provocatively styled “Stop Wall Street Looting Act of 2021” (“SWSLA”). a 113-page bill that primarily targets perceived weaknesses in the private equity market. Dropped way in the back of that bill is a short provision that threatens to impose significant and unnecessary costs and obligations on managers of Collateralized Loan Obligations (CLOs), a critical source of capital to the $1.3 trillion syndicated loan market that finances the needs of American companies. This harmful provision is a solution in search of a problem that does not exist.
ing Americans.
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