CLOs

  • Conservative approach

    Aeon Investments ceo Oumar Diallo and coo Ben Churchill answer SCI's questions

    Q: Aeon recently announced the closing of its first commercial real estate CLO warehouse (SCI 12 October) with Credit Suisse. Could you provide some background to the decision to become a CRE CLO issuer?
    OD: We’re active across the real estate spectrum and seek relative value opportunities in the UK and Europe.

    The European CRE CLO market has .......

    The Structured Credit Interview 21 October 2022

  • Natural evolution

    CLO docs, structures adapting to macroeconomic conditions

    Challenging market conditions have dampened European CLO issuance this year, but they have not stalled it completely. Indeed, transaction structures and documentation are expected to continue evolving to meet equity and debt investors' expected returns.

    “It has been a good story for CLO 1.0s, which have had less than half a percent of CLO tranches defaulting over the last 20 .......

    News Analysis 19 October 2022

  • CRE CLOs: time to zig when others zag

    When it comes to structured commercial real estate (CRE) credit, the European market is at a pivotal juncture, explains Iain Balkwill, partner at Reed Smith.

    Last year proved to be a ground-breaking year for the asset class; we saw a record volume of CMBS issuance and in an industry first, Starz Real Estate brought Europe’s first ever CRE CLO to .......

    Talking Point 19 October 2022

  • Aviation ABS industry eyes AerCap suit

    Sector developments and company hires

    Aviation ABS industry eyes AerCap suit

    The outcome of AerCap’s filing with the High Court in London could serve as a blueprint for other aircraft lessors with lease exposure in Russia. KBRA notes that in its discussions with the 14 lessors that act as servicers on the 30 aviation ABS it rates with exposure to Russian carriers, all have indicated .......

    Market Moves 17 October 2022

  • UK CRE CLO programme prepped

    Sector developments and company hires

    Aeon Investments has closed its first commercial real estate CLO warehouse in the UK, backed by three strategic loan agreements totalling £900m, as it continues to grow its private credit business. Loans will be funded through Aeon's balance sheet and a three-year revolving senior warehouse facility provided by Credit Suisse. Aeon expects to issue three CRE CLOs in Europe over .......

    Market Moves 12 October 2022

  • 'Too early to tell' for Sec Reg

    Sector developments and company hires

    ‘Too early to tell’ for Sec Reg

    The European Commission has released its report on the functioning of the Securitisation Regulation, as mandated under Article 46 of the Securitisation Regulation. The headline takeaway is that since the regulation only came into force in 2019, the Commission believes it is too early to tell whether the regulation is working and so no meaningful .......

    Market Moves 11 October 2022

  • Opening access

    Demand for CLO ETFs set to rise

    The popularity of CLO ETFs is set to increase, given the current rising interest rate environment. This Premium Content article investigates how the product has opened up the CLO asset class to a broader set of investors.

    The advent of CLO ETFs opened up the CLO asset class to a broader set of investors. Against the backdrop of rising ......

    News Analysis 10 October 2022

    Premium Content

  • Syco Entertainment lands US$125m deal

    Sector developments and company hires

    A landmark US$125m securitisation of intellectual property has been completed by the Simon Cowell-founded company, Syco Entertainment. The intellectual property is the Got Talent Franchise, including the America’s Got Talent and Britain’s Got Talent formats commissioned in 72 territories across the globe. The complex transaction marks the first instance of leveraging royalty income streams for the securitisation of the intellectual .......

    Market Moves 7 October 2022

  • Leibniz Institute and European DataWarehouse win grant

    Sector developments and company hires

    The German Federal Ministry for Education and Research has awarded a grant to the Leibniz Institute for Financial Research SAFE and the European Datawarehouse (EDW). The grant has been awarded under the ministry’s Climate Protection and Finance (KlimFi) funding initiative to undertake a three-year project to promote the green auto ABS market. The project, named ‘Green Auto Securitisation’ (GAS), .......

    Market Moves 4 October 2022

  • CLOs in an age of economic uncertainty

    We are currently going through a difficult economic environment – with rising interest rates, a credit squeeze, inflation and currency volatility, explains Rob Reynolds, md and head of CLOs at Pemberton.

    After years of cheap money, investors are naturally being more cautious and selective about where they invest their money.

    CLOs are one product that has consistently served as a buffer .......

    Talking Point 3 October 2022

  • M&G finances tech rental firm Grover via ABS deal

    Sector developments and company hires

    M&G has announced entry into a funding deal with the consumer-tech subscription platform, Grover. Proceeds from the €270m ABS transaction will be used to grow Grover’s product inventory and expand its presence across European markets. Subscribers to Grover’s platform receive access to over 5,000 tech appliances, which are available to rent on a flexible monthly basis. Grover’s services have seen .......

    Market Moves 30 September 2022

  • SCI In Conversation podcast is now live!

    We discuss the hottest topics in securitisation today...

    In this inaugural episode of the SCI In Conversation podcast, Angela Sharda chats to KBRA European research head Gordon Kerr about a European securitisation investor survey the rating agency undertook in June and the implications of the findings today. We also discuss a couple of new SCI Premium Content articles, one of which tracks the evolution of the STS synthetic .......

    News 30 September 2022

  • Split opinion

    Recession considerations discussed

    The jury is still out on the likely impact of next year’s forecast recession on the securitisation market. However, panellists at S&P’s European Securitisation Conference earlier this month did concur that the situation is likely to get worse for the sector before it gets better.

    While the forecast for the European securitisation market appears somewhat bleak, the majority .......

    News Analysis 27 September 2022

  • BlackRock preps CLO ETF

    Sector developments and company hires

    BlackRock preps CLO ETF

    In a recent filing with the US SEC, BlackRock has disclosed that it is prepping a CLO ETF, dubbed BlackRock AAA CLO ETF. The fund seeks to provide capital preservation and current income by investing in a portfolio of predominantly US dollar-denominated triple-A rated CLO securities.

    Under normal circumstances, BlackRock AAA CLO ETF will invest at least .......

    Market Moves 27 September 2022

  • Adapting to change

    Adam Zausmer, chief credit officer at Ready Capital, answers SCI's questions

    Q: Ready Capital and Starz Real Estate recently formed a joint venture to originate around €300m of new commercial real estate loans over the next two years (SCI 21 July). What prompted the move? What is currently exciting to you in European CRE?
    A: It was a great opportunity to further expand and diversify Ready Capital’s international lending business. .......

    The Structured Credit Interview 26 September 2022

  • Early redemption for Spanish synthetic

    Sector developments and company hires

    Early redemption for Spanish synthetic

    Clifford Chance has advised Santander Consumer Finance regarding the early redemption of bonds issued by Santander Consumer Spain Synthetic Auto 2018-1 and the settlement process. This transaction included obtaining consent from various institutional investors and represents the first early redemption of a synthetic securitisation fund in Spain.

    The Clifford Chance team was led by global financial markets .......

    Market Moves 23 September 2022

  • Performance triggers finalised

    Sector developments and company hires

    Performance triggers finalised

    The EBA has published its final draft regulatory technical standards (RTS) specifying the minimum performance-related triggers for STS synthetic securitisations that feature non-sequential amortisation. With the purpose of standardisation, the amended Securitisation Regulation sets out that sequential amortisation shall be applied to all tranches of STS on-balance sheet securitisations.

    However, as a derogation, STS on-balance sheet securitisation .......

    Market Moves 21 September 2022

  • Dignity Finance restructuring mooted

    Sector developments and company hires

    Dignity Finance restructuring mooted

    UK funeral provider Dignity has launched a consent solicitation with noteholders of its whole business securitisation, Dignity Finance, in relation to a deleveraging proposal. Following the award of a temporary covenant waiver by the class A noteholders, the company has continued to work on a long-term solution to improve the group's capital structure.

    As part of implementing this .......

    Market Moves 16 September 2022

  • Branching out

    Thomas Majewski, managing partner and founder of Eagle Point...

    Q: Eagle Point recently announced its expansion into the ABS, MBS and SRT markets, which will be led by Karan Chabba as head of ABS, MBS, SRT and speciality finance (SCI 19 July). What were the motivations behind branching out into these markets?
    A: In terms of relative interest, the order we are looking at these is SRT, ABS .......

    The Structured Credit Interview 15 September 2022

  • Controversial Revlon decision reversed

    Sector developments and company hires

    Controversial Revlon decision reversed
    The US Circuit Court for the Second Circuit last week reversed the controversial decision by the District Court for the Southern District of New York (SDNY) that permitted lenders to retain the mistaken payment made by Citi as administrative agent for a credit agreement with Revlon (SCI 20 August 2020). The SDNY decision upended decades .......

    Market Moves 14 September 2022

  • Setting the tone

    European ABS/MBS market update

    As the much-anticipated September restart begins to materialise, one deal managed to reopen the European and UK ABS/MBS primary markets. With additional deals being announced, investor demand and overall market conditions will be tested.

    Yesterday the European Central Bank raised interest rates sharply, increasing its three key rates by three-quarters of percentage point - the biggest rise since 1999 - .......

    News Analysis 9 September 2022
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