Collateralised loan obligations, a corner of the structured credit market that has staged a comeback since the financial crisis, face fresh challenges as US regulators implement post-crash reforms.

Regulations on both sides of the Atlantic have impacted collateralised loan obligation issuance in recent years, but US reforms under the Volcker Rule, part of the 2010 Dodd-Frank Act, weighed particularly heavy on CLO issuance early this year and have sparked several rounds of debate between banks, Congress and regulators.