NAIC CLO Proposal Task Force

In May 2022, the National Association of Insurance Commissioners (NAIC) released a proposal to increase the capital requirements for collateralized loan obligations (CLOs) held by insurance companies. The NAIC’s proposal seeks to lower reliance on rating agency ratings by establishing a CLO modeling framework and instead assign NAIC designations. SFA launched this Task Force to respond to the NAIC and raise ongoing concerns of the industry regarding the proposal’s impact on the CLO market.