CLOs

  • SCI podcast - episode six now live

    CLO innovation and UTP securitisations discussed

    Episode six of the monthly SCI podcast is now available. In this edition, our editor Corinne discuss some fascinating developments in the CLO sector, including how several structural innovations have begun to emerge and she asks why that has happened. Additionally, our senior reporter, Stelios, looks at difficulties involved in securitising unlikely-to-pay loans and Richard, our deputy editor, takes .......

    News 10 April 2019

  • European bank in major restructure

    Company hires and sector developments

    COO hired

    Trepp has appointed Luis Amador as coo, reporting to ceo, Annemarie DiCola. Amador was recently md at Moody's Analytics, responsible for structured finance financial engineering, product management, content production, and advisory teams, providing the fixed income marketplace advanced analytics, data, credit models, and portfolio monitoring products while also performing advisory, valuation, and consulting services across sectors.

    Energy and .......

    Market Moves 9 April 2019

  • On the up?

    CRE CLO market growth set to continue

    After a buoyant CRE CDO market all but vanished following the financial crisis, it has only recently returned in the form of CRE CLOs with issuance growing from almost nothing three years ago, to just under US$14bn last year. While the basic structure of CRE CLOs shares some similarities with the pre-crisis structure, it has some notable differences that should help .......

    News Analysis 8 April 2019

  • Addressing the arb

    CLO structural innovations aim at wider investor base

    European CLO issuance totalled approximately €7.73bn in Q1, comprising 16 new issues and two refinancings. March alone saw nine transactions price, which showcased a range of structural innovations designed to address the current challenging arbitrage and appeal to a wider investor base.

    “Appealing to a wider investor base is an important consideration for a syndicated deal, rather than one with .......

    News Analysis 5 April 2019

  • CEO appointed

    Company hires and sector developments

    CEO appointed

    DFG Investment Advisers has hired Oliver Wriedt as ceo. The firm is also unifying its products under one brand, Vibrant. Wriedt will play an instrumental role in growing and further institutionalising DFG’s business, helping to diversify its product offerings and elevate the new Vibrant brand among the investment community. He was most recently co-ceo of CIFC .......

    Market Moves 4 April 2019

  • CLO market "prepared for Brexit"

    Japanese risk retention rules provide 'wiggle room'

    The CLO market is ‘well prepared’ regardless of the outcome of Brexit. This was according to panellists at IMN’s recent CLO conference in London, who also suggested that further clarification around the Japanese risk retention rules could provide some comfort to CLO managers and investors, particularly in Europe.

    One of the first topics discussed centred around the issue of whether .......

    News Analysis 4 April 2019

  • US manager on "verge" of issuing Euro CLO

    Investors show heightened scrutiny toward first timer issuers

    Angelo, Gordon is very close to issuing its inaugural European CLO, finding parts of the process “more straightforward than expected”. The transaction was discussed at IMN’s CLO conference in London today, where it was also noted that investors are displaying an increasingly critical approach toward first time managers.

    Steven Paget, md at Angelo, Gordon commented that his firm is on .......

    News 2 April 2019

  • GSE reforms proposed

    Sector developments and company hires

    Debt service reserve guarantee provided

    Assured Guaranty (Europe) plc (AGE) has issued a £135m, five-year Debt Service Reserve (DSR) Guarantee to benefit Dwr Cymru (Financing) Limited and Dwr Cymru Cyfyngedig, both companies forming part of the Welsh Water group. The guarantee provided by AGE will replace the existing liquidity facilities provided by banks within the Welsh Water group’s securitisation structure. .......

    Market Moves 1 April 2019

  • Irish BTL RMBS launched

    Company hires and sector developments

    Irish BTL RMBS launched

    Bank of Ireland has mandated a new Irish buy-to-let RMBS deal. Dubbed Mulcair Securities, the €358m transaction securitises a legacy BTL loan portfolio that was originated by the Bank of Ireland, ICS Building Society and Bank of Ireland Mortgage Bank. The rationale behind the deal is to offload non-performing exposures from the seller’s balance sheet (according to .......

    Market Moves 29 March 2019

  • CEO appointed

    Sector developments and company hires

    CEO appointed

    Curtis Arledge has joined Mariner Investment Group as chairman and ceo. In addition to his role at Mariner, Arledge will serve as head of Mariner subsidiary, ORIX USA asset management, responsible for driving the company’s overall strategy in the space, including facilitating opportunities for growth across ORIX USA’s enterprise. A founding member of Mariner, Arledge has returned to .......

    Market Moves 28 March 2019

  • 'Constant demand'

    UK firms hiring across range of SF roles

    Hiring in the UK structured finance space has been buoyant in the last 12 months, with recruitment across a range of roles and asset classes. While there has been a slight slowdown in the first quarter of this year, hiring is expected to pick up after March, once bonuses have been delivered.

    Angel Valchev, consultant at Michael Page, comments that .......

    News Analysis 28 March 2019

  • CRT credit event

    Company hires and sector developments

    CRT credit event

    HSBC’s Metrix series 2015-1 CLN has suffered another credit event. The issuer received a credit event notice confirming that a bankruptcy credit event occurred on 15 March with respect to a reference entity that is believed to be Interserve, which was recently sold out of administration after shareholders rejected a rescue deal for the company. .......

    Market Moves 27 March 2019

  • Credit platform nabs investment vet

    Company hires and sector developments

    Credit platform nabs investment vet

    B Riley Capital Management has named Tim Gramatovich as cio of its newly established credit platform, Gateway Credit Partners. The team will focus on identifying and acquiring undervalued securities in the non-investment grade corporate credit market and intends to implement its portfolio management services through actively managed CDO structures. Gramatovich has over 30 .......

    Market Moves 26 March 2019

  • Purchase option to be exercised

    Sector developments and company hires

    EMEA
    Capzanine has appointed Renaud Tourmente as head of business development, effective from 6 May 2019. Tourmente will join the firm as partner and will be part of its executive committee. In this newly created role, he will support the firm’s international development, pursue the diversification of its debt products and contribute to strengthening relationships with its investors. He brings .......

    Market Moves 22 March 2019

  • Equity focus

    US CLO market update

    The US CLO secondary market has seen elevated volumes since the SFIG Vegas conference. This week, the focus is on equity.

    “The secondary market is busy,” confirms one trader. “Activity is being driven by macro volatility, with further outflows in loans expected.”

    The trader continues: “CLOs tend to lag broader credit markets. In December, the outflow of .......

    Market Reports 21 March 2019

  • Majority stake acquired

    Sector developments and company hires

    Balance sheet normalisation
    The US Fed has confirmed it intends to continue to allow its holdings of agency debt and agency MBS to decline, consistent with the aim of holding primarily Treasury securities in the longer run. Beginning in October 2019, principal payments received from agency debt and agency MBS will be reinvested in Treasury securities, subject to a maximum .......

    Market Moves 21 March 2019

  • Relative value

    JFSA risk retention rules shift focus

    The Japanese Financial Services Agency (JFSA) has published its final rules on regulatory capital requirements applicable to Japanese banks and other institutions that invest in securitisation transactions (SCI 16 January). The rules allow certain exemptions from risk retention for open-market CLOs, provided investors demonstrate due diligence for the underlying loan collateral - a positive development for US CLOs, .......

    News 20 March 2019

  • Rocket fuelled?

    Middle market CLOs on upward trajectory

    The acquisition of Antares Capital by the Canada Pension Plan Investment Board (CPPIB) in 2015 injected a dose of rocket fuel into the US middle market CLO sector. However, the entrance of Bain Capital and Blackstone’s GSO Capital Partners into the market last year ensured that it remains on an upward trajectory and set the stage for further broadly .......

    News Analysis 18 March 2019

  • Private credit firm launched

    Sector developments and company hires

    Firm launch

    AGL Credit Management has launched, with Peter Gleysteen serving as ceo and cio, and Thomas Lee serving as non-executive chairman. AGL is a private credit investment firm specialising in innovative actively managed credit solutions based on bank loans and aims to build a leading CLO franchise. The firm’s institutional investment partners include a subsidiary of the .......

    Market Moves 18 March 2019

  • Benchmark Sonia deal prepped

    Unique UK RMBS transaction adds momentum to IBOR transition

    The first third party hedged UK RMBS with Sonia-linked notes has been prepped by Principality Building Society. The £523.08m transaction, dubbed Friary 5, is a static cash securitisation of residential mortgage loans to 4,472 borrowers in the UK.

    The transaction is unique in using Sonia as a reference rate for the note coupons, rather than sterling Libor. As a result, on ......

    News 15 March 2019

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  • Inaugural online auto ABS prepped

    Sector developments and company hires

    Online auto ABS debuts

    Carvana, an online platform for buying used cars launched in 2012 by DriveTime Automotive Group, is marketing an inaugural securitisation. The US$338m transaction, dubbed Carvana Auto Receivables Trust 2019-1, comprises seven classes of notes provisionally rated by KBRA as triple-A on the class A1 and A2 notes, through to double-B on the class E notes.

    According ......

    Market Moves 15 March 2019

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