Risk retention requirements for securitization of corporate debt
Title VI — Restrictions on securitizing risky corporate debt
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Section 15G of the Securities Exchange Act of 1934 (15 U.S.C. 78o–11) is amended— (1) in subsection (a)(3)— (A) in subparagraph (A), by striking or at the end; (B) in subparagraph (B), by striking and at the end and inserting or; and (C) by adding at the end the following: (C) a manager of a collateralized debt obligation; and; (2) by redesignating subsection (i) as subsection (j); and (3) by inserting after subsection (h) the following: (i) Rules of construction With respect to a securitizer described in subsection (a)(3)(C)— (1) any provision of this section that requires that securitizer to retain a portion of the credit risk for an asset that such securitizer does not hold, or has never held, shall be construed as requiring that securitizer to— (A) obtain that portion of the credit risk for that asset; and (B) retain that portion of the credit risk, either directly by the securitizer or through a wholly owned affiliate of the securitizer; and (2) any reference in this section to an asset transferred by the securitizer shall be construed to include any transfer caused by the securitizer..