Simplifying a Complex Financial Market Debate
The Loan Syndication and Trading Association (LSTA)
Simplifying a Complex Financial Market Debate
PROBLEM
As required by Dodd-Frank, six federal agencies were tasked with implementing risk retention requirements for securitization transactions. However, the one-size-fits-all regulation would significantly undercut the creation of collateralized loan obligations and cause significant harm to the leveraged loan market.
SOLUTION
THG was tasked with changing public sentiment around a Wall Street product that closely resembles, at least in name, a product that was instrumental in the financial crisis and with demonstrating the negative impact of proposed regulations.
We developed a simplified narrative that demonstrated the importance of CLOs to mid-market, brand-name companies and undertook a long-term education campaign targeting key policymakers and media. We also strategically engaged thought leaders and third parties to reinforce key messages in columns, white papers, studies, and events. Additionally, we identified small businesses that relied on CLOs and elevated them to speak out publicly against the regulations.
SERVICES: Paid & Earned Media | Grassroots | Grasstops | Website Development
RESULTS
Through early education efforts, we secured increased coverage of risk retention within beltway press as well as ensured widespread understanding and inclusion of LSTA’s viewpoints among financial press coverage of the issue. Increased awareness also led to the introduction of legislation aimed at creating a regulatory fix specifically for CLOs that is slated to be considered during this congressional session.
Despite the complicated nature of the issue, we gained traction for our campaign due to a simple narrative that increased understanding and resonance.