The recent report published by the Joint Committee of the European Supervisory Authorities outlines potential changes to risk retention regulations, specifically targeting third-party originator funds. This development has significantly impacted the European regulatory landscape, prompting CLO managers to make strategic adjustments to align with the proposed changes.

While European CLO managers are predominantly affected by these regulatory updates, many US managers also adhere to these rules to attract European investors. Schulte Roth & Zabel partner Dan Oshinsky, who represents US middle-market and BSL CLO managers, highlighted the industry’s proactive stance, stating “everyone is trying to project where the final regulations will land. But there is definitely a big push in the meantime to update the risk retention provisions and language in offering documents, just to make sure that they’re now geared toward what we think is going to come down the pike.”

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This year’s proxy season is unfolding amid escalating trade tensions that have triggered global market volatility and wiped trillions off stock valuations. As companies grapple with uncertain business models and falling share prices — activist investors are examining their usual playbook. Ele Klein, Schulte’s co-chair of the Global Shareholder Activism Group spoke with Bloomberg on the state of the industry.

Market disruption may complicate activists’ ability to make a clear case for change, but it also reveals new vulnerabilities, Ele explained, “The general wisdom is that when the market falls, poorly performing companies are exposed, making them more vulnerable to some extent.”

Ele also noted that despite near-term hesitation, activists may see new entry points as downturns expose operational weaknesses — setting the stage for renewed activity once the dust settles.