CLOs

  • US CLOs still slow

    The US CLO secondary market is still slow thanks to a combination of factors.

    "So many bonds are trading at a premium that it makes trades difficult because it's hard for there to be a meeting of minds on value," says one trader. "Also, with so much of the market becoming callable everyone is expecting to be refi'd out of positions, .......

    SCIWire 27 April 2017

  • Euro secondary stifled

    The hoped for boom in the European securitisation secondary market this week is being stifled.

    Market sentiment remains very positive bolstered by the rally in wider markets, but sellers remain thin on the ground as most investors seek to retain current positions. Consequently, flows and BWIC volumes have eased as the week has progressed, but secondary spreads are holding firm across the .......

    SCIWire 27 April 2017

  • Bill to repeal Dodd-Frank scrutinised

    Hearings are scheduled for today on a draft bill published last week by House Republicans which would repeal much of the Dodd-Frank Act. The Financial CHOICE Act would repeal risk retention rules for CLOs and all other asset classes except residential mortgages and would also repeal Volcker Rule restrictions on banks owning the debt securities of CLOs that hold anything .......

    News 26 April 2017

  • CLO refinancing capacity gauged

    New issue CLO spread tightening is expected to remain a key contributor to refinancing activity across the sector. US$50bn-US$60bn refinancing capacity remains for US CLOs under the SEC no-action letter (SCI 21 July 2015), according to Wells Fargo figures.

    The no-action letter limits eligible refis to CLOs within four years of issuance that were issued before 24 December 2014. Wells .......

    News 25 April 2017

  • Euro secondary boosted

    The European securitisation secondary market has been boosted by the first round result in the French presidential election.

    Trading activity picked up yesterday and the BWIC calendar is slowly growing albeit from very low recent levels. The elements of softness seen last week have reversed and secondary spreads across ABS/MBS and CLOs are flat to slightly tighter.

    There are currently two .......

    SCIWire 25 April 2017

  • European hot spots highlighted

    CLOs and RMBS are seen as the main growth areas in the European securitisation market at present. Drivers include a broadening of the investor base for the former and continued bank deleveraging for the latter.

    AFME data for 1Q17 shows that pan-European CLOs led placed European securitisation issuance, followed by UK RMBS and Dutch RMBS. Volumes across these sectors totalled .......

    Talking Point 24 April 2017

  • Self-syndication cost savings considered

    Demand for CLO debt remains high, fuelling suggestions that easy access to investors could encourage issuers to cut out arrangers. While CLO managers may find the idea of making savings through self-syndication attractive, it could prove to be a false economy.

    "In an effort to save costs, issuers may entertain the thought of taking on the job normally done by .......

    News Analysis 24 April 2017

  • Job swaps round-up - 21 April

    North America

    Morningstar has hired Charles Citro as md for CMBS ratings and analytics, based in New York, reporting to Vickie Tillman, president of Morningstar Credit Ratings. Most recently, Citro was senior md at Cushman and Wakefield within the asset surveillance group.

    Nations Equipment Finance has hired Susan O'Donovan as cfo. She was previously at Castleton Commodities International as executive .......

    Job Swaps 21 April 2017

  • US CLOs slumber on

    The slumber seen in the US CLO secondary market pre-Easter is continuing.

    Despite broadly positive market sentiment, volumes continue to be light as investors look to hold on to the paper they have. As result, secondary spreads across the capital structure and vintages are unchanged over the past week or so.

    There are two BWICs on the US CLO calendar .......

    SCIWire 20 April 2017

  • Euro CLO relative value discussed

    Identifying relative value in the current loan environment, where asset spreads are compressing, was a key theme at IMN's recent European CLOs and Leveraged Loans conference. Against the backdrop of rising refinancing and reset volumes, call optionality and manager style emerged as strong contenders.

    From a relative value perspective, Natixis ABS/CLO trader Peter Cui said that in terms of carry, .......

    Talking Point 19 April 2017

  • Antares returns with first 2.0 CLO

    Antares Capital Advisers is in the market with its first 2.0 CLO transaction, Antares CLO 2017-1 (see SCI's deal pipeline), its first deal in more than a decade. The transaction is a cashflow SME CLO provisionally sized at US$1.8bn and backed by middle-market speculative-grade senior secured term loans.

    The US$1.035bn A class notes have been rated at Aaa .......

    News 18 April 2017

  • CLO refi value explored

    US CLO triple-A investors should target longer refis from larger managers due to the relatively steep term premium, argue Wells Fargo analysts. Investors hoping to add yield should bear in mind that single-A and triple-B tranches have been most compensated for a move down in attachment point or market value overcollateralisation.

    March refi and new issue pricing data shows CLO .......

    News 13 April 2017

  • Floating-rate ABS lacks support for growth

    Lack of demand will likely limit the growth of floating-rate ABS and CMBS in the US, despite rising interest rates. Investors may instead hedge against interest rate exposure or invest in floating-rate products with a long performance history, such as corporate CLOs.

    Fitch recently suggested that floating-rate CMBS conduits may re-emerge in the US due to rising interest rates and .......

    News Analysis 13 April 2017

  • US CLOs slow

    The US CLO secondary market is slowing down ahead of the Easter holidays.

    "It was always going to be a pretty slow week given the early finish on Thursday and Friday's close," says one trader. "But there really is very little to report."

    In addition, secondary is still hampered by so many bonds being above par, the trader notes. "Yields .......

    SCIWire 11 April 2017

  • Euro secondary ebbs and flows

    Activity in the European securitisation secondary market continues to ebb and flow.

    Trading patterns continue unchanged across ABS/MBS and CLO sectors - from time to time volumes begin to build before dissipating once again amid positive market sentiment. Last week reflected that as activity fizzled out towards the end of the week, while yesterday saw a flurry of auctions and .......

    SCIWire 11 April 2017

  • Investors 'less bullish', despite record volumes

    Global CLO supply last week hit a weekly record by count and volume for priced deals, with 29 printing at US$13.23bn-equivalent. Against this backdrop, however, JPMorgan's latest CLO survey suggests that investors are the least bullish on the sector for two years.

    Last week's total of CLOs comprised five US new issue and 21 US refinancings/resets, while in Europe there .......

    News 10 April 2017

  • Job swaps round-up - 7 April

    North America

    KeyBanc Capital Markets has hired Chris O'Neill and Jeffrey Tucker to its securitised products team. O'Neill will act as md and Tucker as director and both will report to Keith Newman and Michael Corsi, co-heads of securitised products. O'Neill was previously md at RBC, focusing on non-agency and agency MBS and ABS. Tucker was previously director in the .......

    Job Swaps 7 April 2017

  • US CLOs still strong

    US CLO secondary market tone remains strong amid lacklustre volumes.

    "Overall supply hasn't ticked up too much this week given that it's a new quarter," says one trader. "BWIC and TRACE volumes are fairly light and there's not much in the way of new issuance either so far."

    The trader continues: "The market remains strong - as soon as paper .......

    SCIWire 6 April 2017

  • Euro secondary restarts

    The turn of the quarter has restarted activity in the European securitisation secondary market.

    Flows and BWIC supply are picking up across the board this week. So far execution levels remain strong as long-standing pent up demand gets some release.

    As a result, secondary spreads remain firm amid positive market sentiment. However, the growing secondary and primary calendars are yet .......

    SCIWire 4 April 2017

  • Job swaps round-up - 31 March

    EMEA

    EJF Capital is to float its closed-ended investment fund on the London Stock Exchange. Dubbed EJF Investments, it will aim to invest in long-term, cashflow generating assets in three identified target investment areas - risk retention, capital solutions, ABS and specialty finance. Liberum Capital is acting as financial advisor on the admission and it's expected that dealings in the .......

    Job Swaps 31 March 2017

  • US CLOs surge

    Activity in the US CLO secondary market has surged this week.

    "There's been something of a quarter-end surge," says one trader. "BWIC activity has picked up over the last few days to recalibrate pricing and clean-up positions."

    The trader continues: "It's been mostly mezz in for the bid and everything continues to trade well especially 2012-2014 deals. Spreads haven't moved .......

    SCIWire 30 March 2017
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