CLOs

  • Retrenchment rules

    CDO technology harnessed for funding purposes

    A profound shift in how large cap credit is provided in Europe is underway, having historically been dominated by banks. While the trend is helping to suppress traditional CLO issuance for now, CDO technology more broadly is still being harnessed for funding purposes.

    "In general, any class of credit where banks dominated is now seeing elevated spreads, which are required .......

    News Analysis 7 June 2012

  • SME funding gap emerging

    Fitch notes in its latest European SME CLO Performance Tracker that the reduction in bank lending has led to significant strains on SME funding in Europe. Structural initiatives by European governments to stimulate lending have fallen short of addressing the funding gap that is critical to the financial viability of SMEs, the agency says.

    In particular, SME securitisation economics are .......

    News Round-up 7 June 2012

  • CLO maturity profile lengthens

    The average maturity profile of the underlying loans across Fitch-rated European CLOs has been pushed out by manager trading activities and amend-and-extends. Loans maturing in the 2013/2014 bucket have dropped to 21.9% from 42.5% over the past year, with a corresponding increase in the 2016-2019 bucket (46.8% from 24.84%).

    Defaults have increased since May 2011, with the current average defaulted .......

    News Round-up 7 June 2012

  • Greek country ceiling lowered

    Moody's has downgraded to Caa2 the ratings of the most senior securities in nine Greek structured finance (SF) transactions and to Caa3 the ratings of subordinated securities in six transactions. Moody's also placed all the Caa2 andCaa3 ratings of Greek SF securities under review for further downgrade.

    The rating actions follow Moody's lowering of its Greek country ceiling to Caa2 .......

    News Round-up 6 June 2012

  • SME CLO criteria tweaked

    Fitch has updated its global rating criteria for SME CLOs. As part of the update, the agency has increased its SME average annual default rate expectations (or country benchmarks) for Italy, France, Netherlands and Portugal in line with updated originator data since its last criteria was updated in 2011. Additionally, the agency has established a country benchmark for Belgium.

    The .......

    News Round-up 1 June 2012

  • Spanish SME CLOs under pressure

    Fitch notes in its latest SME CLO Compare report that the performance of Spanish SME CLOs has continued to deteriorate. The 90+ delinquency index has increased to 3.7% as of May 2012, which is above the previous peak of 3% in 2009.

    Increased credit enhancement due to deleveraging mitigates the declining performance in many transactions. Nevertheless, a further escalation of .......

    News Round-up 1 June 2012

  • CLO management contracts acquired

    3i Debt Management is acquiring seven CLO management contracts from Invesco. The seven CLOs are primarily invested in sub-investment grade debt issued by European companies.

    The contracts add €2bn to 3iDM's AUM as the firm continues to grow its debt management business. 3iDM says it is also continuing to search for a US platform which matches the firm's strategy as it looks .......

    Job Swaps 31 May 2012

  • US CLO managers eye Euro exposure

    Grohe and Misys are the latest European companies to launch US dollar-denominated leveraged loans. Fitch suggests that this trend may spur US CLO managers to increasingly invest in European credits.

    The rating agency notes that many US CLO managers have either developed or acquired capabilities to perform due diligence in the European credit markets. At the same time, European companies have diminished .......

    News Round-up 30 May 2012

  • Increased depth?

    Large bid-lists positive for Euro secondary liquidity

    Strong demand for a series of recent large bid-lists could signal increased depth in the European secondary ABS market. Liquidity is unlikely to extend to mezzanine positions, however.

    A series of large bid-lists, said to be from the legacy portfolio of a UK bank, captured the attention of the market earlier this month. The relatively large size of individual positions .......

    News Analysis 23 May 2012

  • Queen Street CLOs transferred

    Indicus Advisors has assigned the investment management rights for the Queen Street CLO I and II transactions to Ares Management. The agreement has received the consent of the controlling class and Moody's confirms the move won't result in ratings downgrades on the notes.

    For information on other CDO manager transfers, see SCI's CDO manager transfer database.

    .......

    Job Swaps 18 May 2012

  • CLO post-reinvestment activity examined

    CLO strategists at RBS have published a report examining the post-reinvestment choices that managers made in 2011. Of the deals in the study that reinvested, most were found to have unusually lenient reinvestment language.

    Based on their transaction database of 260 post-reinvestment CLOs, the RBS strategists found that 41% of managers - representing 106 deals - purchased US$4.4bn of assets .......

    News 18 May 2012

  • Active CLO market seeks stability

    The European CLO market is alive with BWICs, but buyers and sellers are struggling to meet in the middle. While mezzanine bonds - in particular - appear attractive, ongoing eurozone concerns are weighing heavily on participants' minds.

    "This week there has been a bunch of BWICs and the market has been really busy. It has mainly been mezz stuff that .......

    Market Reports 17 May 2012

  • Oak Hill boosts client coverage

    Declan Tiernan has joined Oak Hill Advisors as client coverage md. He is based in London and will be primarily responsible for managing investor relationships in Europe and the Middle East.

    Tiernan joins from UBS, where he was head of alternative fund distribution. He has previously held positions at Deutsche Bank and HSBC, where he was responsible for marketing structured .......

    Job Swaps 17 May 2012

  • Strong take-up for Sabadell tender

    Banco Sabadell has announced the results of its 41-bond tender offer. Investors appear to have participated strongly, driven largely by eurozone concerns.

    The tender consisted of 21 RMBS, six ABS and 14 CLOs across both Banco Sabadell's own transactions and also from Caja de Ahorros del Mediterráneo transactions. The bank indicated it would consider purchasing up to €200m of its .......

    News Round-up 16 May 2012

  • Ex-Citi strategist joins CLO manager

    Former Citi structured credit research director Eduard Trampolsky has emerged at CIFC as a senior fund strategist, where his focus is understood to be CLOs and ABS CDOs. Prior to Citi he was in the quantitative analytics group at Barclays Capital.

    .......

    Job Swaps 15 May 2012

  • Carador PM replaced

    GSO Capital Partners International has appointed Mark Moffat as the new portfolio manager for its listed CLO vehicle Carador. He replaces Miguel Ramos-Fuentenebro, who is no longer with GSO Blackstone. All other members of the GSO Blackstone structured credit investment team remain unchanged.

    All investments made by Carador will continue to be approved by GSO Blackstone's seven-person global structured credit .......

    Job Swaps 14 May 2012

  • SF lawyer jumps ship

    Barbara Goodstein has joined Mayer Brown in New York as banking and finance partner. She was previously partner at Dewey & LeBoeuf, which has recently seen a string of departures (SCI passim).

    Goodstein's transactional and restructuring experience includes CDOs and CLOs as well as structured and general commercial financings of assets, including auto, trade, health care, timeshare and lease receivables. .......

    Job Swaps 11 May 2012

  • Gleacher boosts credit group

    Gleacher & Company Securities has expanded its investment grade credit group with three new mds. William Pope, Thomas Giardi and David Nixon join from Citigroup, US Bancorp and Mitsubishi UFJ Securities, respectively.

    Pope was director in credit trading at Citi, specialising in corporate bonds and CDS of high-grade telecom, media, technology and cable companies. He has also held posts at ......

    Job Swaps 11 May 2012

    Premium Content

  • BWIC service launched

    SCI has today launched a BWIC service covering auctions in Europe and the US for the four main structured finance asset classes - ABS, CDOs/CLOs, CMBS and RMBS.

    The platform has been updated on a daily basis with BWIC prices/covers representing a range of collateral since 1 May. It already includes nearly 500 prices and the SCI site now has .......

    News 10 May 2012

  • Spanish ABS hit by sovereign downgrade

    S&P has taken various credit rating actions on 98 tranches in 85 Spanish securitisations. The move follows the lowering of the agency's long-term sovereign rating on the Kingdom of Spain to triple-B plus from single-A in light of the country's deteriorating economic conditions

    Specifically, S&P has: lowered its ratings on 53 tranches in 50 RMBS; lowered and kept on credit .......

    News Round-up 9 May 2012

  • Pricing service rolled out

    RiskSpan has added daily independent pricing for structured securities to its offering of risk management services. The new service incorporates constant calibration utilising an audit-compliant process to generate pricing for structured securities. It covers RMBS, CMBS, ABS, agency pass-throughs, agency CMOs, mortgage whole loans, CDOs and Trust Preferred securities.

    .......

    News Round-up 8 May 2012
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