SIFMA submits comments to the U.S. House Financial Services Committee ahead of a Committee mark-up supporting the Restoring Proven Financing for American Employers Act, H.R. 4167. The legislation, if enacted, would provide a limited and narrow adjustment to the Volcker Rule to ensure that the market for securitizations of commercial loans is not unduly disrupted.

The drafting of the final Volcker Rule has called into question whether or not debt securities issued by CLOs are prohibited ownership interests in covered funds. Congressional testimony by SIFMA and others has shown that if this situation is not addressed, the CLO market will be seriously harmed from fire sales of assets into the secondary market. This disruption would weaken the ability of CLOs to fund corporate credit to Main Street business all across America.