The International Organization of Securities Commissions (IOSCO) is looking to root out conflicts of interest and other sorts of misconduct in the securitized debt markets.
The umbrella group of global securities regulators launched a series of surveys examining the leveraged loan market and collateralized loan obligation (CLO) sector.
IOSCO said its aim is to understand “the potential conflicts of interest and misaligned incentives” among players in the leveraged loan and CLO sectors — such as lenders, investors and asset managers — throughout the process from credit origination to the sale of securities to investors.
To that end, IOSCO is calling on lenders, CLO investors and managers, and leveraged loan sponsors to complete surveys designed to enhance the regulators’ understanding of these markets.
“In particular, the questionnaires seek to determine where potential conflicts of interest and conduct issues may exist and how they are managed by the respective market participants,” the group said in a release.
The deadline for responses is June 30.