In episode two of the Absolute Credit video series, Kirkland partners Lindsay Trapp and Jared Axelrod break down current dynamics in the CLO equity market, noting increased third-party equity activity at the warehouse stage, continued reliance on joint venture and multi-deal capital arrangements, and the growing importance of manager-originator structures amid evolving EU risk-retention rules. They highlight how regulatory shifts regarding the EU risk retention sole purpose test and seasoning requirements are shaping deal structures, as well as why EU compliance remains valuable for accessing global investors.