CLOs

  • 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

  • US CLOs sporadic

    Activity in the US CLO secondary continues to be patchy.

    "We're now just seeing sporadic buying and selling," says one trader. "Even though it's quarter-end so people are anxious to get stuff done and there's plenty of money out there, investors are finding there isn't much value to be had."

    The trader continues: "At current levels no one wants to .......

    SCIWire 28 March 2017

  • Euro, US CLO diversity compared

    European CLO collateral pools have better average ratings, measured as lower WARF scores, and slightly lower weighted average coupons compared to US CLOs. However, European CLOs are smaller and lack liquidity compared to US CLOs, according to Morgan Stanley's European CLO factbook.

    European CLOs are generally smaller than US CLOs, at €582m on average, while the median average loan facility .......

    News 28 March 2017

  • Euro secondary unmoved

    The European securitisation secondary market remains unmoved by wider market volatility.

    The see-saw in equities and broader credit over the past two sessions has not been reflected in secondary spreads, which continue to hold firm. Indeed, sentiment remains positive and demand continues to outstrip supply.

    Nevertheless, activity overall remains light with only some rotation activity and patchy flows in key .......

    SCIWire 28 March 2017

  • Job swaps round-up - 24 March

    North America

    Alcentra has hired Brandon Chao as svp in New York, joining from Omega Advisors, where he was a senior analyst for structured products and corporate credit. He will report to the firm's global head of structured credit, Hiram Hamilton, who is relocating to the New York office in April. Hamilton was previously executive director and head of the .......

    Job Swaps 24 March 2017

  • Risk transfer round-up - 24 March

    Deutsche Bank is believed to have priced its CRAFT CLO 2017-1 capital relief trade this week (SCI 17 March), with market sources suggesting that the deal met with "good appetite from investors". The US$357m transaction printed at Libor plus 10.75%, having been upsized from US$200m on strong demand.

    .......

    News 24 March 2017

  • Euro CLOs mixed

    Tone and spreads remain strong in the European CLO secondary market, but activity levels are still down.

    "It's a weird market at the moment - it feels quiet, but we are still trading," says one trader. "Clip sizes have gone up so volumes are growing, but the number of trades has gone down. At the same time, a large chunk .......

    SCIWire 23 March 2017

  • Bespoke analysis needed for US retail

    Although some US retailers continue to underperform, investors should be wary of taking a wholly negative view on the sector, according to Morgan Stanley CLO analysts. They point out that with broadly strong US retail sales and growing personal income, problems lie only in certain subsectors within the segment.

    The Morgan Stanley analysts note that retail continues to play a .......

    News 22 March 2017

  • US CLOs solid

    The US CLO secondary market remains solid as momentum rebuilds following last week's interrupted activity.

    "It's still not incredibly busy, but it's an interesting market and bonds are trading," says one trader. "There are no truly big buyers right now, though there aren't any major concerns about fundamentals."

    Mezz remains the most active part of the stack, but price moves .......

    SCIWire 21 March 2017

  • Term curve dislocations 'provide opportunities'

    Carlyle recently priced what is believed to be the first post-crisis US CLO to feature a six-year reinvestment period - the US$612m Carlyle US CLO 2017-1. As the new issue CLO term curve evolves, JPMorgan CLO analysts suggest that investor market segmentation provides opportunities to add alpha when the term curve becomes mispriced.

    "In theory, bonds with longer reinvestment periods .......

    News 21 March 2017

  • Euro secondary ticks over

    The European securitisation secondary market continues to tick over.

    Activity remains patchy across the board with sporadic BWICs and light bilateral volumes. Further distraction has emerged with a handful of new ABS, CLO and RMBS deals now actively marketing, but overall tone is still positive and secondary spreads continue to hold in or tighten.

    The past couple of sessions remained centred .......

    SCIWire 21 March 2017

  • US CLOs resume

    Something approaching a normal service is resuming today in the US CLO secondary market after a snowstorm impacted start to the week.

    BWIC volumes have been slow to pick up this week, with the bulk of lists revolving around triple- and double-As. Today sees a return towards normality with five fairly sizeable auctions and focus firmly back on mezz.

    Despite the stop-start .......

    SCIWire 16 March 2017

  • Euro secondary trundles on

    The European securitisation secondary market trundles on seemingly unaffected by the ups and downs of broader markets this week.

    Market tone remains strong across the board, as demand easily outstrips limited supply. Consequently, secondary spreads continue to be flat to slightly tighter as each day passes.

    BWICs are still sporadic and are trading at or above talk as and when .......

    SCIWire 16 March 2017

  • Euro secondary strengthens

    Tone and levels if not volumes continue to strengthen across the European securitisation secondary market.

    The large CDO liquidation BWIC on Friday bolstered the market's already strong tone, as expected. End-user interest in the list affirmed the depth of the ongoing rally in most sectors and while the ultimate AON style trade meant the paper has stayed out of investor .......

    SCIWire 14 March 2017

  • Euro CLO equity outperforms

    European CLO equity spreads have experienced a notable turnaround, from a negative -10.5% price return in 2015 to an 8.8% price return in 2016. Indeed, based on a sample of 63 post-crisis deals, JPMorgan figures show that European CLO equity total returns average 32.21%.

    Every CLO in the sample shows a positive total return ranging from 54.3% to 10.1%. JPMorgan .......

    News 13 March 2017

  • Debut CRE CLO prepped

    Greystone is in the market with its debut US$366.6m CRE CLO. Dubbed Greystone Commercial Real Estate Notes 2017-FL1, the transaction securitises 27 floating-rate mortgages secured by 27 transitional multifamily properties.

    Moody's and DBRS have assigned provisional ratings to the deal of Aaa/AAA on the US$207.1m class A notes, Baa2/AA (low) on the US$25.66m class Bs and NR/BBB (low) on the .......

    News 9 March 2017

  • US CLO demand drives on

    Activity and demand are growing once more in the US CLO secondary market despite some challenges.

    "Overall buying demand is very, very strong even though there are cross-currents going on that make it difficult for some investors," says one trader. "For example, there are a lot of currently callable bonds going out on BWIC that will trade beyond par, which .......

    SCIWire 9 March 2017

  • Euro secondary simmers

    The European securitisation secondary market is still simmering without yet fully coming to the boil.

    Volumes have picked up a little this week as expected, but have not yet really taken off. Instead, familiar patterns are being maintained across the board - flows remain patchy and BWICs sporadic.

    At the same time, demand continues to outstrip supply amid strong market .......

    SCIWire 9 March 2017

  • Euro CLO warehouse ramping

    Barings has established a warehouse securitisation to ramp up leveraged loans and high yield bonds ahead of the issuance of its forthcoming Barings Euro CLO 2017-1. The transaction comprises a senior funding facility (SFF) and a mezzanine funding facility (MFF), provisionally rated single-A and triple-B (low) by DBRS, and is subject to collateral quality and portfolio profile tests.

    The SFF .......

    News 8 March 2017

  • US CLOs watchful

    US CLO secondary market participants are watching closely for any signs of potential widening despite continuing positive sentiment.

    "Market tone continues to be very positive and nothing came out of the Vegas conference to change that," says one trader. "So, of course, many are starting to get a little nervous and watching closely for signs of any change."

    The trader .......

    SCIWire 7 March 2017

  • CMOA structure prepped

    Acis Capital, an affiliate of Highland Capital, is prepping an innovative US$372m CLO. Dubbed ACIS CLO 2017-7, the transaction utilises a capitalised majority-owned affiliate (CMOA) risk retention strategy.

    A CMOA structure involves a combination of the capitalised manager vehicle (CMV) and the majority owned affiliate (MOA) approaches and seeks to solve problems associated with each. Hunter Covitz, md at Highland .......

    News Analysis 7 March 2017
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