CLOs

  • 'Penalising' RBC proposal criticised

    Sector developments and company hires

    ‘Penalising’ RBC proposal criticised
    The LSTA has submitted a comment letter to the NAIC expressing its belief that the NAIC’s risk-based capital (RBC) proposal could penalise insurance company investments in CLOs and consequently impact the CLO and loan markets. The proposal would change the RBC framework such that capital requirements for purchasing all tranches of a CLO match the capital .......

    Market Moves 21 July 2022

  • ICE launches ESG Geo-Analyzer

    Sector developments and company hires

    Intercontinental Exchange (ICE) has launched its ICE ESG Geo-Analyzer tool to better help analyse portfolios of both commercial and residential properties, asset-backed securities, and corporate operations that are tied to certain locations. The Geo-Analyzer tool uses ICE’s geospatial data modelling to create climate risk and social impact data and analytics for properties and communities across the US. It seeks to .......

    Market Moves 19 July 2022

  • Digital revolution?

    Claira co-founder, Eric Chang, and co-founder and advisor, Joe Squeri, answer SCI's questions

    Q: Claira, the document intelligence fintech, recently announced its collaboration with Citi to help boost digital transformation within securitisation and develop next-generation data analysis solutions for CLOs (SCI 29 June). Tell us more about your vision for the company.
    JS:     The digitisation of structured credit documents has been something I’ve been trying to solve my entire career, and I’ve .......

    Provider Profile 19 July 2022

  • Administrative burden

    CLOs caught in disclosure crosshairs

    US CLO managers are facing potential disruption from new disclosure requirements proposed by the US SEC in February. The proposed new rules under the Investment Act of 1940 would require registered investment advisors to private funds - including CLO managers - to adhere to new reporting, record-keeping and disclosure requirements.

    The proposal’s comment period was extended from the original 30 .......

    News Analysis 15 July 2022

  • ABS CDO manager replaced

    Sector developments and company hires

    Dock Street Capital Management has replaced Dynamic Credit Partners (as successor to Petra Capital Management, the original manager of the deal) as collateral manager for the Brookville CDO I transaction. Moody’s has confirmed that the move will not result in any adverse rating actions with respect to the notes issued by the transaction.

    In other news…

    EMEA

    DLA Piper expands .......

    Market Moves 15 July 2022

  • GSE NPL sales tallied

    Sector developments and company hires

    Fannie Mae and Freddie Mac sold 154,972 non-performing loans with a total unpaid principal balance (UPB) of US$28.7bn during the period from programme inception in 2014 through 31 December 2021, according to the FHFA. The loans had an average UPB of US$185,292, an average delinquency of 2.8 years and an average current mark-to-market LTV ratio of 86%.

    Specifically, Fannie Mae has .......

    Market Moves 13 July 2022

  • Call for proportionality in ABS framework

    Sector developments and company hires

    AFME ceo Adam Farkas has written to the European Commission, calling for better proportionality in the securitisation framework. The letter points out that despite its importance for the Capital Markets Union project, the European ABS market remains “subdued”, its size having shrunk from 75% that of the US securitisation market in 2008 to just 6% in 2020.

    The letter highlights .......

    Market Moves 12 July 2022

  • Uncertainty prevails

    Macroeconomic backdrop in focus

    Thus far, 2022 has experienced some turbulent and choppy market conditions. Although poor performance has not yet affected the securitisation sector, the consensus – at least, in evidence during AFME and IMN’s Global ABS conference last month – is that uncertainty prevails and investor sentiment is predominantly focused on the macroeconomic backdrop.

    During this period of market dislocation, .......

    Talking Point 12 July 2022

  • Aviva Investors appoints HSBC and Mount Street Group

    Sector developments and company hires

    HSBC and Mount Street have entered into a ten-year strategic agreement to service Aviva Investors’ £50bn Real Assets business. The firms’ appointment will see them assuming responsibility for all fund administration and debt servicing functions for Aviva Investors’ Real Assets strategies. HSBC and Mount Street were appointed following competitive process due to depth of offering, expertise across real assets credit .......

    Market Moves 11 July 2022

  • Arrow Global hires new leader for Finance Servicing Unit

    Sector developments and company hires

    Arrow Global has appointed Reza Atighi as new ceo to its Amersfoort-based Vesting Finance Servicing in the Netherlands. Atighi joins Vesting Finance from Intrum where he served most recently as ceo for the Netherlands and Belgium. Bringing more than 20 years of experience to the new role, the firm hopes Atighi will be able to boost the development of its .......

    Market Moves 7 July 2022

  • A&M move forward with new development

    Sector developments and company hires

    Alvarez & Marsal’s (A&M) inaugural efforts as sole arranger have secured a breakthrough for Polish bank, Getin Noble Bank (GNB).  A&M financial services served as sole arranger for GNB’s first synthetic securitisation for risk transfer. The transaction compiles a portfolio of housing community loans and marks the first of its kind for the historically well performing but never-before-securitised asset class. .......

    Market Moves 6 July 2022

  • What is the future of the CRE market?

    Despite the fluctuations in the capital markets this year, European warehouse funding for granular, small and medium balance commercial real estate mortgage loans remains stable, explains Sabah Nawaz, partner, Cadwalader, Wickersham & Taft LLP.

    This is particularly the case in the “loan on loan” warehouse space. “Loan on loan” funding typically involves an institutional lender advancing loans to a SPV .......

    Talking Point 5 July 2022

  • Bluerock introduces new credit fund

    Sector developments and company hires

    Bluerock is set to launch a new CLO interval fund in partnership with WhiteStar, who will serve as sub-advisor, which offers to investors high income and portfolio diversification. Marking the firm’s second interval fund, the ‘Bluerock High Income Institutional Credit Fund’ will aim to provide investors with access to income-producing senior secured loans with a portfolio made up of actively .......

    Market Moves 1 July 2022

  • UTP agreement inked

    Sector developments and company hires

    UTP agreement inked

    UniCredit and Prelios have signed an agreement for the specialised management of unlikely-to-pay (UTP) loans, following the conclusion of a competitive selection process launched by the bank in 4Q21. The long-term agreement involves Prelios acting as the preferred partner in the management of UTP loans in the corporate segment held by UniCredit. An initial stock under management .......

    Market Moves 29 June 2022

  • PineBridge sub-advised CLO ETF unveiled

    Sector developments and company hires

    VanEck has launched an actively managed CLO ETF, dubbed CLOI, which is sub-advised by PineBridge Investments. The fund aims to invest at least 80% of its total assets in investment grade-rated debt tranches CLOs of any maturity.

    The fund intends to invest primarily in CLO securities that are US dollar denominated, although it has the ability to invest up to .......

    Market Moves 23 June 2022

  • ESG evolution

    European CLO docs continue to evolve

    European CLO documentation continues to evolve with the increasing inclusion of ESG policies (SCI passim). Positive screening language and ESG score integration are gaining momentum, despite data and disclosure challenges.

    “The European CLO market is at the start of its ESG journey and Europe has been at the forefront of this. Nearly all new European CLOs issued today .......

    News Analysis 23 June 2022

  • USS launches maiden ABS mandate

    Sector developments and company hires

    Universities Superannuation Scheme (USS), the UK’s largest private pension scheme by way of assets, has launched its first mandate investing in ABS. Likely to exceed £1bn over the next couple of years, USS’s first ABS mandate will focus on investment grade publicly-listed securities.

    The move comes a year after USS Investment Management (USSIM), the wholly owned investment management .......

    Market Moves 22 June 2022

  • European CLO structures: Are the foundations changing?

    James Smallwood, senior associate at Allen & Overy, examines whether the foundations are changing for European CLO structures

    What's in a name? Or, more appropriately for CLOs, what's in a number? And while there are many important numbers and figures in a CLO transaction (obviously), here and in particular, I'm referring to some pretty low digits – one, two and .......

    Talking Point 16 June 2022

  • EIOPA consults on securitisation review

    Sector developments and company hires

    EIOPA has published a consultation paper in response to the European Commission’s call for advice (CfA) to the joint committee (JC) of the European Supervisory Authorities (ESAs) regarding a review of the securitisation prudential framework (SCI 28 October 2021). Under the CfA, the Commission sought the assistance of the JC to assess the recent performance of the rules on capital .......

    Market Moves 16 June 2022

  • Industry CLO e-trading platform unveiled

    Sector developments and company hires

    Citi and Bank of America, joined by Credit Suisse, Goldman Sachs, JPMorgan, Morgan Stanley, Wells Fargo and Moody’s Analytics, have launched Octaura Holdings. The objective of the company is to create the first open-market electronic trading platform for syndicated loans and CLOs.

    Built in collaboration with software development platform Genesis Global, Octaura aims to provide comprehensive trading solutions with natively .......

    Market Moves 14 June 2022

  • Aon hires new strategic growth leader

    Sector developments and company hires

    Aon has named Joanna Parsons as strategic growth leader of UK capital advisory within the firm’s reinsurance solutions business, reporting to Ben Love, UK strategic growth leader for reinsurance solutions. In her new role, Parsons will help clients to understand the value of different growth, capital and reinsurance strategies, including in the securitisation space. Based in London, Parsons joins Aon from .......

    Market Moves 10 June 2022
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