CLOs

  • Retention relief granted

    The US SEC last week provided Sancus Capital Management with a no-action letter in connection with an 'applicable margin reset' (AMR) procedure featuring in its proposed forthcoming CLO. The Commission stated that certain AMR procedures, as described by Sancus, would not constitute an "offer and sale of ABS by an issuing entity" within the meaning of Regulation RR (17 CFR .......

    News Round-up 5 September 2016

  • CLO pay-downs slow

    CLO pay-downs in JPMorgan's CLO index (CLOIE) dropped since the July rebalance through 31 August to US$5.36bn, after a dramatic rise the previous month. This was split between US$3.94bn and US$1.43bn of pre-crisis and post-crisis CLOs.

    The post-crisis CLOs added US$5.5bn with 75 tranches from 15 deals at the July rebalance. Meanwhile, the pre-crisis index returned 1.15%, outperforming its post-crisis .......

    News Round-up 2 September 2016

  • Triple crown

    Rising rates spur CLO resets, equity squeeze

    Rising interest rates are having a three-pronged effect on the US CLO market. Not only are step-up coupons increasingly being refinanced, but CLO debt holders are also benefitting from wider spreads, while CLO equity holders are being squeezed by Libor floors.

    CLO 2.0s structured with triple-A note interest rates that step up over time account for ten of the 13 .......

    News Analysis 2 September 2016

  • Ashurst trio poached

    Paul Hastings has recruited a trio of structured finance partners - Michael Smith, Diala Minott and Cameron Saylor - from Ashurst in London.

    Smith focuses on structured finance, securitisation, capital markets, credit funds and derivatives. He has been involved in the structured finance market for over 20 years and has had a key role in the development of several financial .......

    Job Swaps 2 September 2016

  • US CLOs power on

    The US CLO secondary market powered on through August while most other securitisation sectors experienced something of a summer lull.

    The patterns of activity seen at the start of the month continued through to its close with the CLO rally keeping its momentum amid fairly stable broader markets and sellers still able to find buyers despite high secondary supply volumes. .......

    SCIWire 1 September 2016

  • August boost as CLO activity drops

    Secondary CLO activity in 2016 so far is down on 2015 in both TRACE reported volume and BWICs. However, the traditional summer slowdown trend has been bucked, with JPMorgan CLO analysts noting significant activity in August.

    Along with January and November, August has consistently been a quiet month for secondary trading since 2012. In fact, since 2013 it has been .......

    News 1 September 2016

  • Euro secondary stable

    The European securitisation secondary market remained stable throughout August and that looks unlikely to change in the run up to the US holiday on Monday.

    For the most part 2016 followed a traditional pattern in August across ABS/MBS - liquidity was thin and activity was patchy, with BWICs few and far between. UK non-conforming/buy-to-let paper saw the most demand, which .......

    SCIWire 1 September 2016

  • Mid-market CLO breaks new ground

    Churchill Asset Management returned to the US CLO market last week with a deal of several 'firsts'. It is Churchill's first 2.0 deal and first deal since the old Churchill Financial team was brought into TIAA-CREF, it is the first middle-market CLO to include a single-B tranche and it is the first distributed CLO to be jointly rated by Moody's .......

    News 31 August 2016

  • TPG raises stakes

    TPG Specialty Lending (TSLX) has written to the independent directors of TICC Capital Corp - Steven Novak, Peter O'Brien and Tonia Pankopf - urging them to answer six questions as part of an objective evaluation of TICC's underperformance ahead of its annual meeting on 2 September. The move follows TICC's letter to its stockholders suggesting that TSLX has run a .......

    Job Swaps 30 August 2016

  • Resource America merger approved

    Resource America stockholders have approved the merger of the firm with a subsidiary of C-III Capital Partners (SCI 31 May). Approximately 80% of the shares of Resource America common stock that were outstanding as of the record date of 13 June approved the merger and approximately 99.8% of the shares of Resource America common stock that were voted approved the .......

    Job Swaps 26 August 2016

  • CIFC's search ends

    FAB Partners is set to acquire CIFC for approximately US$333m in cash. Under the terms of the merger agreement, CIFC shareholders will be entitled to receive US$11.46 in cash per share, representing a premium of more than 60% over CIFC's closing share price on 19 August and a premium of approximately 160% over the 27 January 2016 closing share price .......

    Job Swaps 23 August 2016

  • JPMorgan shakes up syndicate

    JPMorgan has formed a new credit product development team, which will be headed by Ryan O'Grady and comprise members of the current credit markets team. Although currently co-head of the bank's global syndicate team, O'Grady's new role will require him to focus solely on the international syndicate business. He will report to his co-head counterpart, Bob LoBue.

    In addition, following .......

    Job Swaps 23 August 2016

  • CLO resets to rise?

    US CLO refinancing and reset activity is expected to rise in 4Q16, as investors and collateral managers seek to extend existing deals prior to the 23 December risk-retention deadline. Over US$250bn of CLOs - representing 72% of the outstanding post-crisis market - will have exited their non-call periods during the quarter and be eligible for refinancing, according to Wells Fargo .......

    News Round-up 22 August 2016

  • THL taps marketing pro

    THL Credit Advisors has recruited Katherine Taylor as a director in its New York office, where she will focus on business development, product development, strategic relationships and marketing across the firm's direct lending and tradable credit platforms. She joins from Graycliff Partners, the former private equity team of HSBC in the US and Latin America, where she was vp and .......

    Job Swaps 22 August 2016

  • AIMS supports Littlejohn

    Goldman Sachs Alternative Investments & Manager Selection (AIMS) Group has made a minority investment in Littlejohn & Co. The investment was made through Goldman's AIMS Petershill programme, which is purchasing a passive, non-voting primary stake in Littlejohn representing less than 10%.

    The investment follows a 17-year relationship between AIMS and Littlejohn, in which AIMS has been an investor in all .......

    Job Swaps 19 August 2016

  • Aon appoints Asia director

    Aon has appointed Les Collett as regional director for structured credit and political risk, based in Hong Kong. He was previously at Willis Towers Watson, where he was an executive director.

    Collett will report to Miles Johnstone, who is head of structured credit and political risk for Asia. Collett has previously worked at Standard Bank, Calyon, HSH Nordbank, Bankgesellschaft Berlin .......

    Job Swaps 18 August 2016

  • Taurus investment increased

    Chenavari fund Toro recently disclosed that it has increased its investment in an originator - Guernsey LLP Taurus Corporate Financing - in relation to its originated transactions strategy, via two investments of €23m and €12m in loan warehouse transactions. Taurus will act as the originator for and hold risk-retention securities in Chenavari Investment Managers' latest CLO - the €350m Toro .......

    News Round-up 15 August 2016

  • Mixed quarter for Euro CLOs

    The European CLO market came to a brief halt at the end of June, notes S&P in its 2Q16 European CLO performance index report, as investors absorbed the uncertainty created by the result of the UK's referendum on EU membership. Issuance still managed to climb year-on-year, however.

    The second quarter saw market pricing tighten from 150bp to 128bp, and it .......

    News Round-up 11 August 2016

  • Post-crisis Greek CLO emerges

    National Bank of Greece (NBG) has completed the first Greek SME securitisation since 2007. The transaction, Sinepia, will enable the bank to raise up to €300m of medium-term financing.

    The senior tranches of the CLO were placed with the European Investment Bank, European Investment Fund and European Bank for Reconstructions and Development (EBRD). The senior notes - rated double-B by S&P .......

    News Round-up 9 August 2016

  • Retail risks weighed

    Exposure to the retail sector poses idiosyncratic risk to US CLO performance rather than widespread challenges, according Fitch. The inclusion of loans from challenged retailers like J Crew and Tailored Brands (Men's Wearhouse) in portfolios remains a concern (SCI 9 June), but is not expected to significantly impact CLO performance.

    Retail is the third largest sector in Fitch's CLO database, .......

    News Round-up 9 August 2016

  • Japan stimulus to boost SMEs

    A new ¥28trn stimulus package introduced by the Japanese government is credit positive for SME structured finance deals, says Moody's in its latest Credit Outlook. The package includes measures to help ease SME refinancing and provide them with greater flexibility for borrowing.

    According to Moody's, diversification and funding alternatives will help a variety of SME deals, including CLOs and ABS .......

    News Round-up 8 August 2016
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