CLOs

  • US CLOs strong

    Levels and activity are still strong in the US CLO secondary market, particularly lower in the stack.

    "It's pretty busy in secondary even though the mad rush to print new issues is continuing," says one trader. "We're seeing a lot of mezz and equity going through at the moment - there are triple-A buyers out there, but not in force."

    SCIWire 2 November 2016

  • Combo repacks emerging

    Several CLO combo notes on downgrade watch, following Moody's updated methodology for the instrument (SCI 10 October), have been resolved via dual-tranche repacks with the aim of keeping the rating stable. The rating agency is reviewing 38 securities backed by CLO debt and equity tranches after adding a refinancing scenario to its approach.

    Moody's will no longer assign new ratings .......

    News 2 November 2016

  • Limited upside for CLOs?

    The total amount of CLOs paid down in JPMorgan's Collateralized Loan Obligation Index (CLOIE) since the September rebalance through 31 October was US$13.02bn in par outstanding, split between US$3.37bn and US$9.66bn of pre-crisis and post-crisis CLOs. US$8bn was added to the post-crisis CLOIE last month across 94 tranches from 22 deals.

    All CLOIE sub-indices have now seen positive monthly total .......

    News Round-up 2 November 2016

  • Euro secondary patchy

    Activity in the European securitisation secondary market continues to be patchy.

    After a primarily quiet week last week, Friday saw a slight pick-up in volumes, which followed through into Monday in advance of month-end. However, activity across the board remains patchy and is further hampered by European public holidays this week and broader market volatility driven by negative headlines in .......

    SCIWire 2 November 2016

  • Flurry of CLOs continues

    US CLO issuance rose last quarter, along with refinancing activity on existing CLOs, according to Fitch's latest Global CLO Market Trends Quarterly. The agency reports that 36 US CLOs totalling over US$18bn came to market in 3Q16, higher than the US$16.5bn (39 CLOs) figure seen in 2Q16.

    In fact, September claimed the highest volume of issuance, with 15 CLOs totalling .......

    News Round-up 28 October 2016

  • US CLOs partly pause

    Aside from a busy equity space, the US CLO secondary market is taking something of a pause.

    "Last week and this secondary overall has been bit quieter," says one trader. "People are generally happy to take a breather after the previous few weeks being so busy."

    The trader adds: "CLO market focus continues to be on primary issuance on both .......

    SCIWire 27 October 2016

  • CLO defaults slow down

    US CLO loan defaults have slowed down in Q3, though the pull-back will be short-lived, according to Fitch's latest index for the sector. The agency attributes the slow-down to debt restructuring of several defaulted companies over the past quarter.

    The CLO index though remained flat at 6.4% of the US$135.7bn portfolio, indicating the temporary nature of the slow-down. The energy .......

    News Round-up 26 October 2016

  • Credit manager adds partner

    River Birch Capital has recruited a former Pine River Capital Management portfolio manager. Gaurav Tejwani joins the firm in New York as a partner.

    Tejwani was co-head of structured credit at Pine River. He was previously part of the Y-Point Financials team which moved to Pine River, and before that he worked in credit derivatives and structured credit at Barclays .......

    Job Swaps 26 October 2016

  • US CLOs tick over

    US CLO secondary market continues to tick over despite continued distraction from primary.

    After a busy end to last week, secondary activity and the BWIC calendar is light so far this week as focus remains on primary. Secondary spreads continue to hold firm across the bulk of the capital structure as a buying bias prevails and supply continues to be .......

    SCIWire 25 October 2016

  • Group sells debt division

    3i Group has sold its debt management business, 3iDM, to Investcorp. The sale will generate £222m in cash for 3i and an exceptional profit on disposal of £36m, subject to closing adjustments that are dependent on the transaction's completion date.

    The proceeds of the deal will be reinvested in 3i's private equity and infrastructure divisions. The transaction is set to .......

    Job Swaps 25 October 2016

  • Tikehau takes over senior debt funds

    Tikehau Capital has reached an agreement with Lyxor UK to manage the investments of Lyxor's European senior debt funds. The deal will allow Tikehau to expand its leveraged loans and CLO business from €1.9bn AUM to €2.6bn.

    Tikehau will replace Lyxor as investment manager of Lyxor's four European senior debt funds, while Lyxor's European senior debt operational team will join .......

    Job Swaps 25 October 2016

  • Euro secondary starts slow

    It was a slow start to the week in the European securitisation secondary market, but a large CDO liquidation should generate some interest today.

    Yesterday was quiet across the board thanks to an element of supply fatigue as the well-established pattern of primary focus linked to flurries of BWICs continued into the end of last week and was met with .......

    SCIWire 25 October 2016

  • US CLO supply spike

    There is a spike in supply in the US CLO secondary market today.

    "It's a busy day today with a few more BWICs than we've seen in recent days," says one trader. "There's plenty of mezz and equity in for the bid and that'll provide a lot of data points on the follow."

    The pick-up in secondary supply is no .......

    SCIWire 20 October 2016

  • Refinancing activity accelerates

    US CLO refinancing volume has shot up this month, impacting 14 deals for a total value of US$6.2bn so far, versus US$3.7bn seen during the whole of September. The increase in activity has created a clear term structure at the triple-A level.

    Deutsche Bank CLO analysts note that for refinancing CLOs at or near the end of their reinvestment periods, .......

    News 20 October 2016

  • Fresh CLO credit deterioration

    CLO credit quality deteriorated in July across all cohorts, having stabilised in the spring and early summer, says Moody's. This deterioration was particularly pronounced for US CLO 1.0 deals.

    The median WARF for US CLO 1.0s increased from 2527 to 2575, while the median WARF for US CLO 2.0s increased seven points to 2852. European CLO 1.0s' median WARF also .......

    News Round-up 20 October 2016

  • BDC performance picks up

    With the exception of the oil and gas sector, US middle market performance continues to improve and optimism across the sector strengthen, which DBRS considers as positive for BDCs. Issuance of new middle market loans in 1H16 was subdued, however, as M&A activity was moderate and wider pricing kept many middle market companies on the sideline.

    Concerns about energy exposure, .......

    News Round-up 20 October 2016

  • Euro secondary unmoved

    The European securitisation secondary market remains unmoved by continuing strong new issue volumes.

    The primary market is still attracting the majority of focus, but secondary continues to tick over with pockets of trading throughout euro and sterling ABS, CLOs and MBS. An overall slight buying bias is ensuring that tone remains positive and secondary spreads are unchanged across the board .......

    SCIWire 20 October 2016

  • US CLOs stay firm

    The US CLO secondary market is staying firm despite strong primary activity.

    "The market is holding up pretty well in the face heavy new issuance," says one trader. "Some are saying they expect new issuance to eventually win out and push spreads wider, but we've certainly not seen that yet with volumes being absorbed reasonably well."

    The trader continues: "The .......

    SCIWire 18 October 2016

  • Asset manager adds credit vet

    Medley Management has appointed David Richards as an md and portfolio manager of its Sierra Total Return Fund. He will be based in New York.

    Richards is a member of the board at American Capital and serves on its executive, audit and strategic review committees. He was previously a portfolio manager at Pine River Capital Management and has also worked .......

    Job Swaps 18 October 2016

  • Tikehau creates new job role

    Tikehau Capital has appointed Henri Marcoux to the new position of deputy md. He will be based in Paris and report to Antoine Flamarion and Mathieu Chabran.

    Marcoux will supervise and coordinate the corporate and finance functions within Tikehau Capital, which currently manages €8.7bn invested in all asset classes. He has 21 years of experience in audit and financial management, .......

    Job Swaps 18 October 2016

  • Euro secondary patterns persist

    Trading patterns in the European securitisation secondary market seen towards the end of last week are continuing into this.

    The primary market remains the main focus, but flurries of BWICs continue to bolster secondary activity. A few DNTs aside, line items in all sectors and parts of the capital structure continue to trade well. Despite some skittishness in broader markets secondary .......

    SCIWire 18 October 2016
×