CLOs

  • CLO indenture comparisons prepped

    Fitch has launched CLO Indenture Abstracts, which will be published for every Fitch-rated US CLO 2.0 transaction. The new reports are designed to provide what the agency believes is unprecedented insight into the key features of the CLO indenture and how those features compare to other Fitch-rated CLOs.

    The nuances of CLO indentures can significantly influence investment theses and may .......

    News Round-up 29 May 2013

  • Bondholder communication network unveiled

    DealVector has launched a secure electronic communication network that allows fixed income and illiquid asset market players to know 'who's in their deal', thereby improving the efficiency of these markets by facilitating communication. The platform fills a gap in the current DTC/Street name system by offering the ability to directly message the beneficial owners of financial assets on a mutual .......

    News Round-up 29 May 2013

  • Permacap proposes structural changes

    Carador Income Fund is convening an extraordinary general meeting on 26 June. The company says it intends to invest in primary CLO income notes, which - although permitted under the current investment policy - needs to be considered alongside some other structural features.

    The company believes that the opportunity to deploy significant capital in the secondary CLO market at attractive .......

    Job Swaps 28 May 2013

  • CLO shake-out

    Mezz trending tighter post-FDIC rule-change

    Last month's change in FDIC assessments (SCI 19 March) appears to be encouraging more asset managers to enter the US CLO market, with mezzanine spreads in particular tightening as a result. The growth of the sector remains limited by the paucity of leveraged loan supply, however.

    The US$55m B1 tranche of Columbia Management Investment Advisors' recent CENT CLO 18 printed .......

    News Analysis 23 May 2013

  • Asset manager beefs up in Korea

    Highland Capital Management has appointed Jun Park as director of business development, Korea. He is based in the firm's Seoul office and will be responsible for business development and investor relations support in the country, reporting to Paul Adkins, md of business development (Asia-Pacific region).

    Park has more than 10 years of experience in global alternative investments. Prior to joining .......

    Job Swaps 22 May 2013

  • Uncovered FX eyed in Euro CLOs

    Managers' increasing desire to include sterling assets - funded with either euro or sterling-denominated liabilities - in the new generation of European CLOs may introduce uncovered FX exposure, Fitch warns. The agency notes that managers are trying to access the largest possible asset universe and achieve a desirable level of diversification in their portfolios. But, with the economics of European .......

    News Round-up 21 May 2013

  • CLO specialist recruited

    Lawrence Berkovich has joined Mayer Brown in Charlotte as a partner in the banking and finance practice. Previously, he was a counsel with Dechert in Charlotte.

    Berkovich concentrates his practice on complex structured finance transactions, with a particular emphasis on broadly syndicated and middle-market CLOs, CRE CLOs/CDOs and rated/unrated leveraged loan and CRE loan warehouse facilities. In addition, he has .......

    Job Swaps 20 May 2013

  • CLO-like structure minted

    HIG WhiteHorse Capital has closed WhiteHorse VII, a term facility - structured like a CLO - to fund purchases of broadly syndicated loans. Arranged by RBS, the facility closed with an initial investment of US$25m from the equity holders, with the class A delayed draw note having sole discretion to advance funds in US$5m increments up to a total of .......

    News Round-up 17 May 2013

  • CLO pricing tool offered

    Thetica Systems has rolled out an enhanced CLO analytics module as part of its ABS Trader Tools structured finance infrastructure. The service integrates pricing data for CLO NAV from Lewtan/ABS.Net, Markit and Reuters.

    "Whether for new deals or older vintage bonds, clients can easily run the universe of CLOs through a price/yield matrix, define their scenarios and produce customised reports .......

    News Round-up 16 May 2013

  • Compelling case for CLO calls

    Equity investors in callable 2010 and 2011 CLOs should call them now and take advantage of the low current funding costs in the new issue market, suggest CLO strategists at Morgan Stanley. Many holders of legacy deals would also benefit from exercising call options, although continuing to hold 2006 and 2007 vintage CLOs could offer greater value.

    Twenty transactions have .......

    News 16 May 2013

  • Cantor eyes primary CDO desk

    Cantor Fitzgerald has made four key hires across the CLO, CDO and structured credit segment. Florian Bita joins the team in New York, while Jason Eppleston, Martin Deville and Damian Horton join Cantor Fitzgerald Europe in London.

    Bita joins Cantor as md and is responsible for US CLO secondary trading. In addition, he will help build out the firm's primary .......

    Job Swaps 16 May 2013

  • Ares announces senior changes

    Ares Capital Corporation (ACC) has promoted president Michael Arougheti to ceo and four Ares Capital Management (ACM) executives to officer roles within ACC. Arougheti has served as president since ACC's IPO in 2004.

    Kipp deVeer has been promoted to president. He will also continue to serve as a senior partner in the private debt group of Ares Management and as .......

    Job Swaps 15 May 2013

  • Shift seen in Euro loan maturities

    S&P's updated study of collateral pools backing European cashflow CLOs finds that the peak in leveraged loan maturities has shifted out to 2016 and 2017, from 2014 and 2015 in its previous study two years ago. One likely reason for this outward shift in loan maturities is that much existing CLO documentation allows collateral managers to continue reinvesting in certain .......

    News Round-up 15 May 2013

  • American influence

    European CLO market moving towards US model

    Recent developments in the European CLO market suggest that it is moving closer to a US-style model. After Cairn CLO III ended the market's lengthy hiatus (SCI passim), further issuance is expected throughout the year, with larger deal sizes and the increased use of covenant-lite loans both very possible.

    "In the US there is price elasticity and investors are buying .......

    News Analysis 15 May 2013

  • Mid-market financing group formed

    Babson Capital Management has formed a subsidiary to provide financing to middle-market companies and specialised industries globally. Babson md Mike Hermsen will serve as ceo for the new Babson Capital Finance (BCF) group, reporting to Babson ceo Tom Finke, who will also serve as BCF chairman.

    The formation of BCF consolidates Babson's existing global middle-market leveraged finance and energy finance .......

    Job Swaps 15 May 2013

  • New home for CMBS head

    RBS director of CMBS and CLO strategy Richard Hill is leaving the bank to join Morgan Stanley. He will be based in New York and report to Vishwanath Tirupattur.

    Hill will become head of CRE debt research at Morgan Stanley. Previous roles include a position in the corporate treasury group at Bank of America, svp at Village Solutions Company and .......

    Job Swaps 15 May 2013

  • US credit alliance established

    HarbourVest Partners and CIFC Asset Management are forming a strategic partnership to work together on private credit investment strategies. HarbourVest will become a minority shareholder of CIFC and enter into a revenue-sharing arrangement for investment advisory fees generated by jointly-branded private debt programmes.

    HarbourVest began investing into credit funds in 1995 and has been active in the European senior loan .......

    Job Swaps 14 May 2013

  • Managers maintain CLO diversity

    US CLO 2.0 managers have maintained good loan diversification, despite the market's rapid rise and the majority of loans being sourced from the 2012 and 2013 vintages. There have been concerns that managers may forgo diversity and focus on purchasing primary loans that are priced while a CLO is ramping its portfolio, but average collateral overlap for 2.0 deals is .......

    News 14 May 2013

  • Quiet week does not dent Euro CLO optimism

    Activity in the European CLO sector slowed during this holiday-shortened week, but optimism remains high. A new Alcentra deal has been announced in the primary market, while equity paper has been well bid in secondary.

    Alcentra is aiming to price Jubilee X by the end of this month, with senior tranche price talk at around 125bp. It joins a number .......

    Market Reports 10 May 2013

  • Limited CLO updates introduced

    Moody's is rolling out limited updates to the determination of default and recovery rate assumptions in CLOs for instruments other than first-lien loans. These instruments typically constitute no more than 10% of CLO portfolios and include senior secured, senior unsecured and subordinated bonds, senior secured floating rate notes, as well as second-lien and senior unsecured loans.

    Moody's expects the impact .......

    News Round-up 10 May 2013

  • CLO redemption risks examined

    An unusual EOD notice has been issued for the Integral Funding CLO, after a scheduled optional redemption failed to complete on 15 April because of delays in the settlement of collateral sales. Although noteholders' risk of loss has not increased materially as a result, the experience highlights the small but non-trivial risk to CLO investors of relying on trustees' and .......

    News 8 May 2013
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