Funds Talk: July 2018

Topics covered in this issue include: 

• Opportunities in Permanent Capital Vehicles
  Fund managers considering opportunities in permanent capital vehicles have a variety of alternatives to choose from. The following chart highlights some of the key differences among these alternatives so that fund managers can determine which ones best suit their strategies and objectives.
  
  
• Comptroller of the Currency Announces That Leveraged Lending Guidance Is Not Expected to Be Changed
  Comments are the second time the comptroller of the currency has surprised an audience with unexpected remarks on the guidance.
  
  
• SEC Amends Definition of ‘Smaller Reporting Company’ Expanding the Number of Companies Eligible for Reduced Disclosure
  On June 28, 2018, the Securities and Exchange Commission voted to amend the definition of “smaller reporting company” (SRCs) to expand the number of companies eligible to take advantage of the reduced disclosure requirements applicable to SRCs.
  
  

• SEC Acts on Liquidity Disclosure Rules and Proposes Easing Regulation of ETF Launches
  At an open meeting on June 28, 2018, the SEC adopted liquidity disclosure amendments and proposed new rules to ease the approval process for new exchange-traded funds.
  
  

• Opportunistic CDS Strategies Available to CDS Protection Sellers, Part I: An Introduction

• Over the past few years, the CDS market has seen an increase in activism and the evolution of creative refinancing and restructuring strategies intended to achieve particular outcomes in the CDS market. With the proliferation of unconventional credit events, opportunistic CDS strategies may have appeared available only to protection buyers.
  
  

• Opportunistic CDS Strategies Available to CDS Protection Sellers, Part II: McClatchy and Sears

• McClatchy and Sears were two recent situations in which a proposed refinancing significantly affected the CDS market for the reference entity because of the reduction in the risk that the CDS contract on those entities would be triggered. Although these cases may or may not have been driven by CDS considerations, they illustrate how CDS strategies may be effectively implemented to benefit CDS protection sellers.
  
  

• New York’s High Court Holds That Three-Year Statute of Limitations Applies to Martin Act Claims, Trimming the State’s Securities Law
  

  New York Court of Appeals ruling gives financial industry professionals greater clarity on Martin Act’s statute of limitations relating to the Act’s registration and disclosure requirements with respect to the sale of security interests in condominium and cooperative apartments, and the broad definition of “fraudulent practices.”