CLOs

  • First Euro CLO brings innovation

    The first new issue European CLO of the year, St Paul's CLO VII, has priced. The €414m deal was arranged by Deutsche Bank for ICG, with the bank noting that a structural novelty in certain tranches enables investors to take a rates view.

    The class B3 and C2 notes of the CLO do not have Euribor floor protection to begin .......

    News Round-up 3 February 2017

  • US CLOs still strong

    The US CLO secondary market continues to see strong demand.

    "There are a lot of refis out in the market, but the bid is still strong for secondary bonds," says one trader. "At the same time, there's dealer research out there saying that the arb isn't great for new issues, so primary supply could remain limited."

    Consequently, the trader adds: .......

    SCIWire 2 February 2017

  • Securitisation prospects polled

    Fiscal policy uncertainty is the top concern cited by respondents to Morgan Stanley's 1Q17 global securitised products investor survey, accounting for 28% of the responses. Nevertheless, half of those polled expect their allocation to securitised products to stay in line with their current allocation, while 36% expect to increase their allocation, compared with 37% in 3Q16.

    The Morgan Stanley survey .......

    News 2 February 2017

  • CLOIE pay-downs pick up

    The total amount of CLOs paid down in the JPMorgan Collateralized Loan Obligation Index (CLOIE) since the December rebalance through 31 January was US$16.98bn in par outstanding, split between US$2.69bn and US$14.28bn of pre-crisis and post-crisis CLOs. The post-crisis CLOIE added US$16.3bn across 170 tranches from 38 deals at the January rebalance.

    CLOIE total returns for the month were 0.33% .......

    News Round-up 2 February 2017

  • US CLOs slow

    It looks set to be a slow couple of days in the US CLO secondary market.

    The slowdown seen at the end of last week is carrying over in to this and around month-end. BWIC volumes have dropped considerably over the past few sessions and tomorrow's schedule currently looks little different. There are still some flurries of bilateral trading, but .......

    SCIWire 31 January 2017

  • Carlyle appoints senior consultant

    The Carlyle Group has named Craig Farr as a senior consultant with the global credit group. He will help Carlyle to develop new strategic initiatives and partnerships across the group's credit platform, including structured credit and distressed credit.

    Farr was previously global head of capital markets and credit at KKR. He has also worked at Citigroup and at Salomon Brothers .......

    Job Swaps 31 January 2017

  • Academy adds structured products pair

    Academy Securities has made two additions to its structured products group, poaching Steve Kenney and Pierce Derkac from CapRok Capital. They will focus on multiple asset classes within structured products, including RMBS, CMBS, ABS, CDOs and CLOs.

    Kenney and Derkac join as svps. Kenney was a senior member of the sales and trading team within securitised products and special situations .......

    Job Swaps 31 January 2017

  • Euro secondary sluggish

    Activity across the European securitisation secondary market remains sluggish.

    After a small pick-up in activity on Wednesday and Thursday, last week closed with volumes easing and has opened this in similar fashion thanks to a combination of wider market volatility and month-end. Nevertheless, sentiment remains positive across securitisation secondary and BWICs when they do appear continue to trade strongly, which .......

    SCIWire 31 January 2017

  • Placed issuance up

    €59bn of securitised product was issued in Europe in 4Q16, an increase of 26.9% from 3Q16 (€46.5bn) and a decrease of 19% from 4Q15 (€72.8bn), according to AFME figures. Of this, €31.1bn was placed (representing 52.7%), compared to €21.5bn placed the previous quarter (46.2%) and €15.7bn placed in 4Q15 (21.6%). Placed securitisation grew by 16% in 2016, compared to 2015's .......

    News Round-up 27 January 2017

  • US CLO mezz pauses

    US CLO secondary market mezz rally is pausing for breath this week so far.

    "Superficially it's still very active with a lot of paper coming in for the bid, but the volume of non-investment grade paper is half of what it was last week," says one trader. "Investment grade guys are still buying, but below that spreads are pretty much .......

    SCIWire 26 January 2017

  • CLO 2.0s face less EOD value risk

    European CLO 2.0 transactions face less event of default-driven market value risk than CLO 1.0s, says Moody's. None of the European 2.0 deals the agency rated in 2016 have mezzanine or junior OC EOD triggers, which had been common among CLO 1.0s.

    CLO 2.0s rated by Moody's typically require exclusively the initial senior most outstanding notes' OC, rather than the .......

    News Round-up 26 January 2017

  • CLO refinancings tallied

    US CLO issuance finished 2016 markedly lower year-over-year, with US$63.5bn from across 136 deals, Fitch notes in its latest Global CLO Market Trends Quarterly publication. This represents a 32% decline from US$93.1bn from across 177 CLOs in 2015.

    The agency reports 43 US CLOs totalling over US$21.6bn coming to the market in 4Q16. "November saw the highest volume of CLO .......

    News Round-up 26 January 2017

  • Euro CLOs BWIC focused

    The European CLO secondary market is currently focusing on BWICs.

    "Levels on BWIC have been very strong in both 1.0 and 2.0 bonds and regardless of where they are in the capital stack," says one trader. "However, we're not seeing very much flow away from BWICs and there aren't many customers looking to engage outside of auctions."

    The trader continues: .......

    SCIWire 26 January 2017

  • Euro secondary still seeks supply

    Demand continues to outstrip supply in the European securitisation secondary market.

    Tone remains positive across the board and investor appetite is still strong in every sector. However, there continues to be next to no supply via BWICs or new issuance. Consequently, when auctions do appear they trade exceptionally well and are keeping spreads flat to slightly tighter.

    There is currently .......

    SCIWire 24 January 2017

  • MS names structured credit chief

    Morgan Stanley is moving one of its EMEA capital markets co-heads into Morgan Stanley Investment Management. Claus Skrumsager will take control of a structured credit team and fund that is yet to be finalised.

    Skrumsager will join the firm's solutions and multi-asset platform as portfolio manager and head of private structured credit solutions. He has been with Morgan Stanley for 10 .......

    Job Swaps 20 January 2017

  • Investment firm bulks out

    Partners Group has hired Andrew Bellis as md. He joins from 3i Debt Management and is based at the firm's London office.

    At 3iDM, Bellis was also md and helped managed its CLO strategy. Before that, he was a director at Credit Suisse and Merrill Lynch.

    .......

    Job Swaps 20 January 2017

  • CLO firm nabs SF vet

    CIFC has hired Jason Ziegler as md and he will be based out of the firm's New York office. He joins from Orix Corporation, where he was portfolio manager for structured products, including CLOs, RMBS and ABS. Prior to Orix, he was a director in the structured products group for Highland Capital Management, focusing on CLOs.

    .......

    Job Swaps 20 January 2017

  • CLO test ahead

    The second session in a row of high BWIC volumes looks set to test the depth of the US CLO mezz rally seen so far in 2017.

    "It's another busy day in 2.0 mezz, which should truly test the market," says one trader. "We're sensing a little bit of exhaustion from buyers in 2.0 single- and double-Bs and saw a fair amount of .......

    SCIWire 19 January 2017

  • Reviewed combo notes downgraded

    CLO 2.0 combination notes have been downgraded by Moody's, following the rating agency's methodology change. Otherwise, CLO rating changes have generally been positive.

    Moody's criteria for rating securities backed by both secured debt and equity tranches of CLOs was updated at the start of 4Q16 (SCI 10 October 2016). Moody's placed on review for downgrade the ratings of 38 combination .......

    News Round-up 19 January 2017

  • Varied approaches

    Retained risk valuation practices gauged

    The horizontal retention piece of a securitisation could be considered the very definition of a Level 3 asset: rarely traded - if ever - with very limited market information. Subject to fair value assessment before and after a deal closes, market participants are taking a number of different valuation approaches to such assets, with no single method yet considered to .......

    News Analysis 19 January 2017

  • Euro secondary slow

    It's been slow start to the week so far for the European securitisation secondary markets.

    Participants look to have taken the opportunity of the US public holiday yesterday to catch their breath and there was little movement in terms of trading or levels. However, tone remains very strong across the board and volumes are likely to pick up as the .......

    SCIWire 17 January 2017
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