CLOs

  • CLO pay-down to support technicals

    An aggregate US$30bn US CLO pay-down is forecast this year due to structural amortisation. At least some of this cash is expected to serve as a technical support to the primary and secondary CLO markets.

    The average monthly loan prepayment rate fell to as low as 2.3% in 3Q11 and 1.4% in 4Q11. However, during that time 2003-vintage CLO triple-A .......

    News Round-up 8 February 2012

  • Updated CLO methodology released

    DBRS has released its updated global methodology to rate and monitor CLOs and CDOs backed by non-granular portfolios of large corporate credits. The new methodology does not have any substantive changes from the proposed methodologies published last month, with a request for comments (SCI 11 January).

    The updated methodology generally utilises a proprietary model based on Monte Carlo simulation for .......

    News Round-up 8 February 2012

  • Recession threat highlights Euro CLO concentration

    The threat of a new recession in Europe has highlighted that the performance of a few issuers could have negative repercussions for the entire European CLO universe, according to Moody's in its latest CLO Interest publication. Having studied the broad characteristics of the 50 most referenced issuers in the European CLO leveraged loan universe, the rating agency suggests that these .......

    News 7 February 2012

  • Trio of CLO prints point to tighter spreads

    Goldman Sachs priced the US$430m Ares XXIII CLO for Ares Management on Friday, the third CLO to print last week. This brings year-to-date US CLO issuance to almost US$2bn, double the level at this time in 2011, with full-year issuance forecast to hit US$20bn.

    Notably, the Ares CLO comprises a fixed rate tranche, which is expected to appeal to US .......

    News Round-up 6 February 2012

  • CLO 'risk-off' trade evident in TRACE data

    The latest Wells Fargo Structured Products Monthly examines TRACE trade data for the structured credit sector from mid-August 2011 onwards. US CLO analysts at the bank find that, thus far, the data largely matches conventional wisdom espoused by CLO market participants that bid/ask spreads widen and trading slows during times of volatility.

    Indeed, increased market volatility in September coincided with .......

    News 3 February 2012

  • GSC Group hearing due

    The US Bankruptcy Court for the Southern District of New York has approved Black Diamond Capital Management's motion for entry of an order in respect of its fourth amended joint Chapter 11 plan for GSC Group. Consequently, Black Diamond is soliciting votes from GSC European CDO I-R, CDO II and CDO V noteholders to accept or reject the plan. A .......

    Job Swaps 2 February 2012

  • Warehouse conflicts of interest raised

    Securities Litigation and Consulting Group has released a study on CLOs issued in July and August 2007. The report purportedly identifies conflicts of interest created when investment banks warehouse loans prior to the issuance of CLOs.

    In particular, the study finds that banks could use warehousing as part of a trade allocation scheme and that warehousing appears to have resulted .......

    News Round-up 1 February 2012

  • PM, credit fund relocate

    Alex Vaskevitch has joined Serone Capital Management as partner. He brings his Zenith High Yield Bond Fund with him and will primarily be responsible for managing the firm's liquid investments and building up the high yield research and execution team.

    The Zenith fund focuses on investment opportunities in the European high yield corporate bond market, allocating to both sub-investment grade .......

    Job Swaps 31 January 2012

  • Stroock partners move on

    Anthony Schouten and Jeffrey Stern have joined Pillsbury's finance group as partners in New York. They were each formerly with Stroock & Stroock & Lavan.

    Schouten's practice spans structured finance, corporate restructuring and commodities and derivatives experience. He is responsible for creating and negotiating derivative and structured credit products for investment banks and advises asset managers and others on their .......

    Job Swaps 30 January 2012

  • Bullish outlook

    Positive market sentiment drives CLOs tighter

    Buoyed by bullish sentiment in the broader capital markets, US CLOs have started 2012 on a positive footing. Primary issuance spreads are narrowing relative to late-2011 levels, while robust secondary market activity has been subject to increasing bid interest on double-Bs and triple-Bs.

    "The CLO market has surprised us to the upside so far this year," says Josh Terry, md .......

    News Analysis 30 January 2012

  • Up-tick in CLO issuance expected

    Aside from a few patches of volatility and a marginal late-year uptick in defaults, the US CLO market exhibited more stability in 2011 than in recent years, according to S&P. The improved performance of the transactions - which are primarily collateralised by corporate loans - highlights the strengthening credit of the corporate obligors whose loans back them, the agency says.

    News Round-up 24 January 2012

  • Structural tweaks strengthen APAC CLOs

    Synthetic balance sheet CLOs are one of the few asset classes within the Asia (ex-Japan) structured credit market tipped for growth in 2012 as banks look to employ the structure for regulatory capital relief trades (SCI 23 December 2011). Investor interest in this space may be buoyed by a handful of recent transactions that have incorporated structural tweaks intended to .......

    News 23 January 2012

  • ACA CLO buy-back underway

    Barclays Bank has commenced a tender offer to purchase for cash all outstanding class A2L, A3L, B1L and B2L notes, as well as four million preferred shares of ACA CLO 2005-1. The notes are being offered at between US$900-US$950 for each US$1,000 principal amount tendered or 63 cents (70 cents if tendered early) per preferred share.

    The offer will expire .......

    News Round-up 23 January 2012

  • Securitisation lawyer hired

    Deborah Festa has joined Milbank, Tweed, Hadley & McCloy as a partner in its Los Angeles office. She joins from O'Melveny & Myers, where she was also a partner.

    Festa's practice covers securitisations, complex domestic and off-shore financing arrangements in various asset classes, and cash flow, market value and synthetic CLO transactions. Prior to O'Melveny & Myers she served as an .......

    Job Swaps 20 January 2012

  • Downgrades likely on SME CLO criteria change

    S&P has issued a request for comment on a proposed revision to its methodology and assumptions for rating SME CLOs. The agency is proposing to adopt the global methodology for rating corporate CDOs, where appropriate, and adapting for the European SME market and the characteristics of the securitised portfolios. The aim is to enhance ratings comparability across sectors, the agency .......

    News Round-up 17 January 2012

  • Oak Hill promotes partners

    Oak Hill Advisors has named four new partners, who will join the six existing partners in leading the firm and directing investment in the North American and European credit markets. The new partners are Alexandra Jung, Adam Kertzner, Jeffrey Kirt and Thomas Wong.

    Jung is co-head of European investments and co-manages the firm's European distressed investment fund. She joined the .......

    Job Swaps 12 January 2012

  • Investment manager adds business development md

    Highland Capital Management has appointed a business development md in its New York office. Brian Rice joins from Investcorp International and reports to head of business development Clay Shumway.

    Rice is primarily responsible for business development in the US and Europe, including developing relationships with institutional investors, consultants and wealth management platforms. Prior to serving as partner at Investcorp he .......

    Job Swaps 11 January 2012

  • RFC issued on CLO criteria

    DBRS is requesting comments on proposed changes to the methodology it uses to rate and monitor CLOs and CDOs of large corporate credits. The updated methodology will cover US, European and Asian transactions.

    The proposed revised methodology includes three components: a rating methodology for CLOs and CDOs of large corporate credits; cashflow assumptions for corporate credit securitisations; and a Canadian .......

    News Round-up 11 January 2012

  • Rising concern over CLO supply

    JPMorgan's latest global CDO client survey shows that lack of CLO primary supply has significantly increased as a concern from the July 2011 survey, but is tied with the two other top concerns - regulatory reform and CLO spread volatility. Loan downgrades and defaults is in fifth place, suggesting less concern with fundamental deterioration than had been expected. Concern over .......

    News Round-up 10 January 2012

  • Euro CLO hibernation over?

    The European CLO market has made a somewhat lethargic start to 2012, not dissimilar to how it ended 2011. Although the sector has not been busy in the first week of the year, trades are being done and activity is expected to pick up as the month continues.

    "It has not been a busy first week back for European CLOs, .......

    Market Reports 6 January 2012

  • Global credit manager created

    Resource America and CVC Capital Partners have entered into a definitive agreement which will create a new company - CVC Credit Partners (CCP). CCP will be a global credit management business with teams in the US and Europe and AUM of over US$7.5bn.

    As part of the transaction, Resource America is selling its CLO manager, Apidos Capital Management, to CVC .......

    Job Swaps 4 January 2012
×