The collateralized loan market has backed off of deals involving bonds until lawmakers and regulators address the Volcker Rule's impact on such instruments. Most hope for clarification or grandfathering to stave off a massive sell-off.
Banks have been the largest triple-A investors in collateralized loan obligations, but new regulations have prompted some banks to pull back. That trend is giving other investors more sway in the market, which is evident in new pricing structures.
The birth of a U.S.-style private placement market in France offers a lesson in what happens when deleveraging banks turn their backs on credit demand. The French market could spread across Europe and compete with U.S. lenders and investors someday.