A UK trade body and a Bank of England-sponsored committee are lobbying the European Commission to amend regulations that have kept the market for new collateralised loan obligations closed since the credit crisis.

The Loan Market Association and the committee have asked Brussels to review capital requirements introduced in the wake of the financial collapse to stop banks "flipping" debt, but which now are holding back the CLO market. People close to the talks said they were hopeful of achieving a compromise with European regulators.