United States: Securitization & Structured Finance

The NAIC Statutory Accounting Principles Working Group has exposed three significant proposals that could reshape how insurers classify and report certain investments. These initiatives address asset-backed securities with embedded asset-liability management risk, residential mortgage loan definitions and reporting requirements, and the treatment of Insurance Company Owned Life Insurance policies, with potential implications for risk-based capital charges and regulatory transparency.

The global CLO equity fund market is experiencing a cautious reopening after a period of tight arbitrage and challenging economics. With U.S. CLO issuance approaching $230 billion in the first half of 2026 and major platforms successfully raising billion-dollar funds, captive and third-party CLO equity fund structures are evolving rapidly as managers deploy sophisticated structuring technologies to provide stable execution capacity and attract institutional capital seeking diversified credit exposure with s

How do U.S. leveraged finance and project finance transactions differ in their treatment of hedging counterparties within senior secured credit structures? This analysis examines the documentation architecture, eligibility frameworks, governance mechanics, waterfall priorities, and enforcement coordination that distinguish these two markets' approaches to integrating hedges into collateral packages.

A U.S. Bankruptcy Court has awarded $261.13 million in damages plus six years of prejudgment interest against participating lenders in Serta's 2020 uptier transaction, marking the first successful court challenge to a common liability management exercise. The ruling found that privately negotiated debt exchanges do not qualify as "open market purchases" and that lenders breached pro rata sharing provisions by receiving payments without offering participation to all lenders. This precedent-setting decision r

Collateralized Fund Obligations (CFOs) have evolved from a niche structured finance product into a rapidly growing capital markets instrument, with annual issuance projected to reach $30 billion in 2026. This comprehensive analysis examines the structural mechanics, regulatory framework, and emerging trends driving CFO adoption among asset managers and institutional investors seeking rated exposure to diversified private fund portfolios.

The CFTC has adopted significant amendments to its margin requirements for uncleared swaps, fundamentally changing how seeded funds are treated and expanding eligible collateral options. These changes eliminate longstanding barriers that forced fund sponsors to structure vehicles offshore and restricted the use of money market fund shares as collateral. The Final Rule brings U.S. regulations into closer alignment with international standards while addressing practical challenges faced by market participants

On 5 May 2026, the European Parliament (the “Parliament”) voted in favour of certain reforms to the Regulation (EU) 2017/2402 (the “Securitisation Regulation”) (the “Reforms”).

Three partners from Foley & Lardner share key insights from the Milken Institute Global Conference in Beverly Hills, including Jensen Huang's perspective on AI infrastructure...

Private equity sponsors and lenders are navigating an environment in which disciplined deal structuring and downside preparedness are increasingly interconnected.