MFA submits comment letter to IOSCO on leveraged loans and CLOs report

MFA submitted comments to the International Organization of Securities Commissions (IOSCO) regarding its consultation report “Leveraged Loans and CLOs – Good Practices for Consideration.”

MFA’s letter expresses concern that the Measures outlined in the report will increase the cost of capital and availability of loans to businesses, including small and mid-size companies. This will harm businesses’ ability to expand or operate, and negatively impact jobs, innovation, and the economy.

MFA provided the following commentary on the Measures and Questions set forth in the Report:

1. One-size fits all “solutions” may have unintended market consequences
2. Market dynamics have been generally sufficient to alleviate substantial concern
3. Existing regulatory frameworks provide adequate investor protection and additional, overlapping regulatory frameworks may cause inefficiencies