CLOs
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AGL, Barclays ink cooperation agreement
Market updates and sector developments
AGL Credit Management and Barclays have launched a new private credit investment platform called AGL Private Credit (AGL PC). AGL PC combines AGL’s established credit competency with proprietary access to Barclays’ leading leveraged finance and investment banking origination capabilities through an exclusive long-term cooperation agreement.
“Across our client base, there is a strong desire to work with a .......
Market Moves 3 April 2024
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EARN unveils 'strategic transformation'
Market updates and sector developments
The board of trustees of Ellington Residential Mortgage REIT (EARN) has unanimously approved a strategic transformation of its investment strategy to focus on corporate CLOs. The company intends to build upon its current US$44m CLO portfolio, with an emphasis on secondary CLO mezzanine debt and equity tranches.
In connection with its strategic transformation, EARN has decided to revoke .......
Market Moves 2 April 2024
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Vintage matters
Adam Castle, partner and portfolio manager at Lord Abbett, answers SCI's questions
Q: When did Lord Abbett begin investing in securitised products? Was there a specific driver behind its decision to enter the market?
The Structured Credit Interview 14 March 2024
A: Lord Abbett has been a multi-sector fixed income investor since the 1970s and we started investing in securitised products in the early 1990s, so the firm has a long history of evaluating opportunities in a wide range .......
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CLO strategic partnership inked
Market updates and sector developments
Global alternative asset manager Sagard has begun laying the groundwork to expand its presence in the US CLO market through a new strategic partnership with US CLO manager HalseyPoint. As part of this partnership, Sagard will acquire a 40% stake in the HalseyPoint CLO platform, which will now go by new co-branded platform name Sagard|HalseyPoint.
Upon completion of the .......
Market Moves 13 March 2024
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Job swaps weekly: Allen & Overy lures five from Milbank
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Allen & Overy hiring five structured finance professionals from Milbank, including a new partner, ahead of its merger with Shearman & Sterling. Elsewhere, Howden CAP has appointed a new head of execution to its tax and contingent risks team, while Winston & Strawn has added a transactions partner to its New .......
Market Moves 23 February 2024
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SCI In Conversation Podcast: Ian Wolkoff, Pretium Partners
We discuss the hottest topics in securitisation today...
In this episode of the SCI In Conversation podcast, SCI US editor Simon Boughey speaks to Ian Wolkoff, structured credit and CLO liabilities md at Pretium Partners, about the CLO market’s outlook for 2024. Wolkoff discusses the types of loans that are likely to see default rates tick upwards; refinancing challenges; the high levels of issuance seen .......
News Analysis 23 February 2024
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CLO 'stress indicator' launched
Market updates and sector developments
KopenTech has launched a multifactor measure designed to enhance the monitoring of secondary CLO market conditions. Called the K-Indicator, the tool combines five key factors: the did-not-trade (DNT) rate; colour rate; same-day BWIC rate; triple-A average traded price level; and triple-A average price talk deviation from colour (PTDC). Derived from analysing CLO BWIC volumes and granular CUSIP-level pricing data, .......
Market Moves 21 February 2024
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Job swaps weekly: Interpath poaches four from EY
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Interpath Advisory hiring four senior professionals from EY, including a securitisation-focused md. Elsewhere, Sumitomo Mitsui Banking Corporation (SMBC) has hired a new md and deputy head of Asia Pacific to oversee structured lending and private wealth, while Natixis has appointed a Paris-based global head of securitised product trading and expanded its real .......
Market Moves 9 February 2024
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Break in the clouds
2024 investment opportunities eyed across Europe
With brighter skies forecast for 2024 as some normalcy returns to the European economy, several interesting pockets of investment opportunities are opening up in the structured finance market. Indeed, the outlook for European ABS in the year ahead is markedly more hopeful than 12 months ago – with interesting opportunities for investors in the French, Italian and UK structured .......
News Analysis 8 February 2024
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Structured finance in private capital's pivot to hybrid fundraising
Growth in CFOs and RNFs driven by ongoing demand from regulated investors
Hybrid products including rated note feeders (RNF) and collateralised fund obligations (CFO) are growing in prominence, as private capital fund managers look to increasingly tap into demand from insurance investors. But uncertainty remains as to whether such instruments will ultimately be treated as securitisations by insurance regulators in the medium and long term.
In a report released in .......
News Analysis 6 February 2024
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TCW launches ABF business
Market updates and sector developments
The TCW Group has launched a dedicated asset-backed finance (ABF) business that will be anchored with over US$1bn in capital commitments from TCW, partners and affiliates. Dylan Ross has joined the firm as md and portfolio manager to lead the asset-backed finance investment efforts.
Ross brings to TCW almost 20 years of experience in alternative credit investing with .......
Market Moves 26 January 2024
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Job swaps weekly: Permira Credit promotes pair to lead expansion
People moves and key promotions in securitisation
This week’s round-up of securitisation job swaps sees Permira Credit appoint two new co-heads to lead the firm’s expansion. Elsewhere, Hildene Capital Management has snapped up a Jefferies executive as head of capital markets, while Axonic Capital has promoted its head of credit to the newly created role of co-cio.
David Hirschmann and Ariadna Stefanescu have been appointed .......
Market Moves 19 January 2024
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SCI In Conversation podcast: Andrew South and Alastair Bigley, S&P Global Ratings
We discuss the hottest topics in securitisation today...
In this episode of the SCI In Conversation podcast, SCI's deputy editor Kenny Wastell speaks to S&P Global Ratings’ md and head of EMEA structured finance research Andrew South and Alastair Bigley, md and sector lead for European RMBS, about the year ahead. The ratings agency recently published its European Structured Finance Outlook for 2024, forecasting that issuance in Europe could .......
News Analysis 16 January 2024
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Reaching for the Starz
Future of European CRE CLO market contemplated
Despite no new issuance since Starz Realty Capital’s debut in 2021 (SCI 9 December 2021), the underlying message from those closest to the European CRE CLO market is simple: it’s better than the headlines are making it seem. With just one public deal closed in Europe thus far, CRE CLOs still stand up as a strong funding tool .......
Talking Point 8 January 2024
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Performance-related triggers RTS adopted
Market updates and sector developments
The European Commission has released a Commission Delegated Regulation supplementing the Securitisation Regulation with regard to regulatory technical standards (RTS) specifying performance-related triggers and the criteria for the calibration of those triggers in STS synthetic securitisations. The RTS specify the two mandatory triggers under point (a) of Article 26c(5) of the Securitisation Regulation, set out the additional mandatory backward-looking .......
Market Moves 18 December 2023
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Definition debate
Call to differentiate private credit CLOs
The private credit market is booming, encompassing US$1bn-plus mega-deals, as well as traditional direct lending in the middle market space. Against this backdrop, defining what a private credit CLO is would be helpful for investors.
“What’s interesting with private credit is that we don’t really have a uniform definition for it yet,” explains Arlene Shaw, md at Brightwood .......
News Analysis 15 December 2023
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Basel 3 'roadmap', reporting ITS published
Market updates and sector developments
The EBA has published its roadmap on the so-called Banking Package, which implements the final Basel 3 reforms in the EU. The roadmap aims to strengthen the prudential framework, as well as ensure an international level playing field. It also seeks to provide clarity on how it will develop the mandates implementing the legislation and finalise the most significant .......
Market Moves 14 December 2023
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Positioned for quality and liquidity
Kate Galustian, lead portfolio manager for BlackRock Senior...
Q: When you announced BlackRock Senior Securitised Fund (SCI 20 November), BlackRock stated that this new vehicle will predominantly invest across continental Europe and the UK. To what extent was that driven by current opportunities specific to that geographic market, and could you provide an outline as to what those are?
The Structured Credit Interview 30 November 2023
A: The fund was designed in collaboration with .......
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Rules of conflict
Final SEC "conflict of interest" ruling offers crumbs of comfort
The SEC’s final “conflict of interest” ruling, designated Rule 192 and released at the beginning of this week (SCI 29 November), waters down some of the most onerous restrictions but still represents a serious imposition for securitized markets participants, say those in the field.
The new rule prohibits so-called “securitization participants” from engaging in “conflicted transactions” during the life of an .......
News 30 November 2023
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SIFMA calls for STC framework
Market updates and sector developments
A new SIFMA blog highlights three actions that will mitigate what the association calls the “perverse incentives” created by the lack of appropriate risk-sensitivity of the SEC-SA framework, under the US Basel 3 Endgame (B3E) proposal. The blog describes the proposal as “the most restrictive approach to set capital requirements for banks’ securitisation exposures in the developed world”.
As .......
Market Moves 29 November 2023
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Global goals
Chris Whitcombe, head of European and US ABS at Challenger I...
Q: Challenger IM recently launched its first securitisation-only investment fund – the Challenger IM Global ABS Fund (SCI 1 November). What makes now the right time?
The Structured Credit Interview 20 November 2023
A: At Challenger IM, we manage assets for leading global and Australian institutions. We have been actively investing in ABS since 2005, including the private ABS market for the last decade. So, although .......