US insurance regulators move to kill CLO arbitrage

Capital charges on collateralised loan obligations will be model-based after 2024

Equitable HQ, New York
New York-based insurer Equitable is pushing for stricter capital treatment of CLOs

US regulators are taking steps to end the regulatory arbitrage that arguably has helped fuel buying of collateralised loan obligations (CLOs) by insurers in recent years.

Last week, the National Association of Insurance Commissioners moved forward with a rule change that from the end of 2024 will link CLO capital charges to the regulator’s own modelling rather than CLO ratings.

The switch to a modelled approach is expected to remove an inconsistency in existing charges that means insurers hold

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here