U.S. and EU Risk Retention Requirements – What Is the Impact on Financing Transactions?

Risk retention requirements, or “keeping skin in the game,” were intended as a means of addressing the misalignment of incentives that were inherent in many of the “originate to distribute” securitization products. Has the aim been achieved, and how have these requirements developed in the U.S. and in the EU?

This presentation will cover:

• Comparison of U.S. and EU risk retention requirements;
• Market reaction to the Loan Syndications & Trading Association decision; and
• New regulatory framework for securitizations transactions in the EU.