CLOs

  • Variety on show in US CLOs

    Yesterday proved a varied session for the US CLO secondary market, as the 2005-2013 vintages and all parts of the capital structure were represented. SCI's PriceABS data shows that prices remain slightly higher than in previous weeks.

    At the top of the stack, tranches such as BLACK 2005-1A A1 were talked at 98 handle, 99 handle, around 99, .......

    Market Reports 31 October 2013

  • Structured credit desk expands

    Cantor Fitzgerald Europe has further expanded its European structured credit desk with the appointment of Sheil Aggarwal as md. Based in London, he will focus on ABS, MBS and CLOs.

    Aggarwal joins Cantor from Pamplona Credit Opportunities, where he was a partner (SCI 25 June 2008). Before that, he was a senior md at Bear Stearns, overseeing the trading and .......

    Job Swaps 31 October 2013

  • CLO pro takes structuring role

    Peter Melichar has joined Deutsche Bank as a senior structurer, based in London. He has 13 years of experience in ABS, CDOs and CLOs and was most recently at Maybird Consulting.

    Melichar was md at Maybird, focusing on European CLOs and corporate credit. He has also served as head of structured products at Key Capital and in structuring roles at .......

    Job Swaps 31 October 2013

  • Retention refinements recommended

    CRE Finance Council and SIFMA have submitted comments to federal regulators in response to the re-proposed rulemaking on credit risk retention. The associations express support for many of the changes that have been made to the proposed rules, but believe that further refinement of the rules is required.

    SIFMA notes that the re-proposal represents a significant improvement over the original .......

    News Round-up 31 October 2013

  • 'Milestone' set for Chinese securitisations

    The Alibaba SME CLO - which securitised a large number of the small loans on Alibaba's books through a revolving mechanism (SCI 24 October) - set an important milestone for China's renewed interest in securitisations, Moody's says. The transaction was novel in the sense that it was underwritten by a securities firm, Orient Securities, and the senior tranches are traded .......

    News Round-up 30 October 2013

  • Successor CLO manager proposed

    Natixis Asset Management is set to propose its appointment as successor collateral manager for Vallauris II CLO. The move follows notice given by the current manager - Natixis - that, in accordance with a letter of resignation dated 24 October, it intends to resign in accordance with clause 9.1 of the collateral management agreement.

    For other recent CDO manager transfers, .......

    Job Swaps 28 October 2013

  • Single-B benefits bring buyers

    CLO single-B tranche supply has totalled US$731m so far in 2013. The nascent market segment offers attractive yields while retaining more protection than equity.

    JPMorgan CLO strategists note that 68 single-B tranches have been issued year-to-date, mainly in the US. Investors have bought the paper both for its high current coupon and convexity and also alongside equity as a hedge, .......

    News 25 October 2013

  • Chinese pilot programme back on track?

    Chinese ABS activity appears to be back on track, after the country's regulatory authorities re-committed themselves in August to its credit asset securitisation (CAS) pilot programme. SFIG estimates that the move could result in as many as 20 participating institutions collectively issuing up to US$49bn in securities during the first half of 2014.

    China's Pilot Measures define a securitisation framework .......

    News Round-up 24 October 2013

  • Euro CLO asset composition analysed

    S&P's 3Q13 European CLO performance index report considers how assets in post-crisis CLOs differ from those in pre-crisis deals. Assets rated above the single-B rating level are more prominent in pre-crisis CLOs. These pre-crisis transactions also contain more lower-rated assets, in the triple-C and single-D category.

    In addition, European CLOs are predominantly invested in loans to borrowers operating in the .......

    News Round-up 24 October 2013

  • Rapid deleveraging seen in Euro CLOs

    European leveraged-loan CLOs are deleveraging more rapidly than might be expected after their reinvestment period ends, Fitch reports. Excluding older deals with looser reinvestment criteria, most CLO portfolios have repaid close to 20% of their liabilities one year after their reinvestment period ended.

    This is surprisingly high, considering that the low cost of funding - which reflected market conditions when .......

    News Round-up 23 October 2013

  • Retention rules to increase balance sheet risk

    CLO risk retention rules enacted in Europe and proposed in the US could increase balance sheet leverage for asset managers that need to obtain financing to comply with the regulation, according to Fitch. For those managers without the financial resources or market access to comply, this could result in their exit from the CLO market or push them to seek .......

    News Round-up 22 October 2013

  • Investment bank adds CLO vet

    Canaccord Genuity has appointed Sam Spackman as a CLO trader, further boosting its structured finance capabilities after a number of recent hires (SCI 3 September). He also has experience in ABS and RMBS.

    Spackman was previously CLO trading svp at Odeon Capital and has also served as structured products director at Katonah Debt Advisors, as structured credit analyst at Greywolf .......

    Job Swaps 22 October 2013

  • Awaited BWIC hits Euro CLO market

    As expected, the focus of the European CLO market yesterday was on a large US credit hedge fund bid-list (SCI 18 October). Mezzanine paper accounted for the bulk of the supply, with several successful covers observed, but also a few DNTs.

    The highest cover seen during the session was at 95 for HARVT I-X D. SCI's PriceABS data .......

    Market Reports 22 October 2013

  • KKR looks to buy Euro credit manager

    KKR is set to acquire Avoca Capital. Avoca ceo Alan Burke will lead KKR's European credit platform and work with Nat Zilkha to drive the growth of KKR's global credit business, reporting to Craig Farr, who has responsibility for KKR's global credit and capital markets businesses.

    Avoca's portfolio management roles, reporting lines, processes and credit committees below Burke will remain .......

    Job Swaps 21 October 2013

  • Compression continues for Euro CLOs

    It has been a fairly eventful week for the European CLO market, with BWICs providing solid secondary supply. One mid-week list, in particular, captured the attention of traders.

    "The BWICs have been steady and there was one on Wednesday from a continental bad bank with a lot of double-A rated second-pay paper. The bonds on that list traded quite well .......

    Market Reports 18 October 2013

  • CLO pricing webinar scheduled

    SCI, in association with Bloomberg Valuation Service (BVAL), is hosting a webinar on CLO pricing methodology at 1.30pm UK time/8.30am Eastern on 24 October.

    Join SCI and BVAL as they discuss the different methodologies for pricing 1.0 and 2.0 deals. Panellists include BVAL global head of product development Cynthia Sachs, Jesse Knapp from Kanerai and CIFC head of capital markets .......

    News Round-up 18 October 2013

  • New hires to lead EM debt push

    Babson Capital Management has appointed Brigitte Posch and Ricardo Adrogue to lead its new emerging market debt investment team. Posch will be based in London and Adrogue will be based in Boston.

    Posch joins from PIMCO, where she was evp and head of emerging market corporates. Before that she established a Latin American securitisation and trading platform at Deutsche Bank .......

    Job Swaps 16 October 2013

  • Reduction in sovereign ceiling proposed

    S&P has published a request for comment on proposed changes to its methodology for assigning ratings above a sovereign's foreign currency rating on single-jurisdiction structured finance transactions. The proposal is designed to bring additional clarity and comparability to the agency's global approach for considering structured finance ratings above that of the sovereign.

    The proposed criteria apply a rating differential above .......

    News Round-up 15 October 2013

  • CLO manager concentration highlighted

    The ten largest CLO managers manage over 50% of US CLOs and 30% of European CLOs, Moody's notes in its latest CLO Interest publication. Nevertheless, the entrance of new managers to the market appears to have more than offset the consolidation of managers that prevailed between 2009 and 2011.

    The number of US managers declined by roughly 23% to 120 .......

    News Round-up 9 October 2013

  • Validation tool enhanced

    Interactive Data has released a new set of transparency and workflow enhancements to its Vantage solution. The enhanced Vantage Price Validation Workflow module aims to enable buy- and sell-side firms to more efficiently manage their price review process, thereby reducing the operational cost of meeting current regulatory requirements.

    The module is designed to serve as a central hub for client .......

    News Round-up 8 October 2013

  • CLO manager handbook released

    Fitch has published the first edition of its US CLO Asset Manager Handbook, which contains profile reports for 46 active US CLO managers. The reports are designed to provide investors with a consistent framework for evaluating and benchmarking managers.

    The reports contain a combination of key manager facts and attributes, including corporate structures, key personnel, assets under management and CLOs .......

    News Round-up 8 October 2013
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