CLOs

  • Euro CLOs sporadic

    Activity in the European CLO secondary market is sporadic in terms of volume and types of participant.

    "Activity is fairly strong, but it feels dealer led," says one trader. "2.0s are changing hands at quite high levels and seems like they will tighten further - so dealers are trying to get ahead of the market and position themselves now."

    However, .......

    SCIWire 19 July 2016

  • US CLOs rejuvenated

    The US CLO secondary market is continuing to exhibit strong activity after a positive start to this week.

    "The last few days have been the busiest that I've experienced since the UK's EU referendum vote," says one trader. "There have been strong bids across the entire capital structure and we are finally seeing activity return to pre-Brexit levels."

    The market's .......

    SCIWire 14 July 2016

  • Step-up tranches refinanced

    Four US CLOs - ACAS CLO 2013-2, Carlyle Global Market Strategies CLO 2014-3 and Neuberger Berman CLO XII and XVI - have been refinanced over the last two weeks. None of the refinancings were plain vanilla, with three having been driven by the desire to refinance step-up tranches.

    The most plain vanilla of the refinancings was for Neuberger Berman CLO .......

    News 14 July 2016

  • Euro secondary stays light

    Flows in the European securitisation secondary market continue to be light though sentiment remains positive.

    "It's been pretty quiet in general with little end-user activity and BWICs few and far between," says one trader. "However, everyone for choice is still a better buyer and looking for assets."

    The trader continues: "As with wider credit the tone across ABS/MBS is strong. .......

    SCIWire 14 July 2016

  • ABL vet joins middle market firm

    Monroe Capital has hired asset-based lending veteran Marc Adelson as originations md. He will join Ben Marzouk and Lee Stern in the firm's New York office.

    Adelson has more than 30 years of experience providing financing to middle market companies. He was previously cco at Medallion Financial and president of its asset-based lending business. Before that, he was ceo and .......

    Job Swaps 13 July 2016

  • US CLOs confident

    The US CLO secondary market is exhibiting a more confident tone almost three weeks on from the destabilising effect of the Brexit vote.

    "High yield has been climbing every day lately and is now approaching 105 after being at 104 yesterday," says one trader. "That's reflective of the risk-on sentiment we're seeing right now."

    The trader adds that a number .......

    SCIWire 12 July 2016

  • Euro secondary strengthens

    Supported by the wider market rally the European securitisation secondary market is strengthening and spreads are edging in.

    This week has again started with light flows, but many sectors are now back to around pre-Brexit levels as sentiment continues to improve in line with seeming greater political/central bank certainty. Once more, CLOs are leading the way in terms of both .......

    SCIWire 12 July 2016

  • Conformance period extended

    The US Fed has extended the conformance period for the Volcker Rule to 21 July 2017. While the extension was largely anticipated by market participants, the timing was later than most expected, coming only two weeks before the previous extension date expires on 21 July 2016.

    The extension allows banking entities to continue divesting ownership in legacy covered funds - .......

    News Round-up 11 July 2016

  • Brexit ratings outlook 'unchanged'

    Fitch has reassured the market that no more UK structured finance rating actions are expected in the near term following the country's vote to leave the EU. However, terms of the exit could present tail risks, including mortgages and leveraged loans experiencing longer-term underperformance.

    Fitch says that the elevation in risk premiums following the UK vote to leave the EU will weaken private .......

    News Round-up 8 July 2016

  • Global issuance trends diverging

    S&P reports that that there is a clear divide in recent structured finance issuance trends, with the US, Europe and Australia all seeing recent declines and countries such as Brazil, Argentina, China and Canada witnessing increases. The agency attributes declines in the former group to both broader volatility and a host of recent regulations governing capital charges and liquidity ratios.

    Amid strong underlying .......

    News Round-up 8 July 2016

  • CPT metric provides CLO insight

    DFG Investment Advisers had the highest collateral portfolio turnover (CPT) among US CLO managers in 2015. According to the new portfolio turnover metric from Moody's, American Money Management Corp had the lowest rate.

    Managers' CPT rates vary by month, but are largely consistent over longer periods. Moody's believes that CPT data can reveal important insights about CLO manager performance, particularly .......

    News Round-up 8 July 2016

  • Manager options outlined

    If Brexit concludes with the UK outside of the EU passporting regime, UK entities may be limited in acting as managers of and risk-retention holders for European CLOs (SCI 30 June). An informal survey of presale documents undertaken by Wells Fargo structured products analysts indicates that of the 84 outstanding 'sponsor retention' European CLOs, 51 have UK-based managers, 24 do .......

    News 6 July 2016

  • CLO equity distributions dropping

    Equity distributions for US CLOs continued their decline in 1H16, a trend that started in 2013 for 1.0 vintages. S&P says that this is due to higher funding costs and a drop in the spread of the assets held in the transactions.

    Loan prepayment levels were high in 2013, and 2014 saw a steady stream too. Because these deals are .......

    News Round-up 6 July 2016

  • Secondary markets advisors sought

    ESMA has published a call for candidates to form a consultative working group (CWG) for its secondary markets standing committee (SMSC). The two-year term of the existing CWG will expire shortly.

    The CWG mainly advises and assists the SMSC on technical standards to be submitted to the European Commission and on guidelines, Q&As and other guidance in relation to relevant .......

    Job Swaps 5 July 2016

  • CLO pay-downs drop

    The number of CLOs paid down in JPMorgan's CLO index (CLOIE) since the May rebalance through 30 June was US$1.45bn in par outstanding, down from US$3.83bn the previous month. This was split between US$790m and US$650m of pre-crisis and post-crisis CLOs respectively.

    The post-crisis CLOIE saw US$6.1bn added across 100 tranches from 18 deals at the June rebalance. However, CLOIE .......

    News Round-up 4 July 2016

  • UK CLO exposure examined

    Morgan Stanley figures show that UK exposures account for 13.7% of European CLO 2.0 collateral. Variation among portfolios and managers is apparent, with the 25th-percentile deal exposure to the UK at 10.3% and the 75th-percentile deal exposure at 16.4%.

    A Brexit-related recession would increase the risk of performance deterioration across the sector, although any negative impacts should be mitigated by .......

    News 1 July 2016

  • Rating agency increases reach

    Scope Corporation is set to acquire FERI EuroRating Services, effective from the start of August. The firm intends to establish itself as the European alternative to the US rating agencies.

    Scope Group intends to spread its business across three areas under Scope Corporation. Scope Ratings will be responsible for all credit rating activities; Scope Analysis will be in charge of .......

    Job Swaps 30 June 2016

  • US CLOs rebounding

    The US CLO secondary market has begun rebounding in the past few sessions after the caution seen immediately following the UK referendum result.

    "The vote brought with it a lot of unknowns obviously, but we have seen some good volume over the last couple of days," says one trader. "Double-Bs had a couple of good names in for the bid .......

    SCIWire 30 June 2016

  • Settlement reinvestment options weighed

    Current holders of non-agency RMBS from 512 Countrywide deals have finally received almost US$8bn in cash payments, five years after the original settlement (SCI passim). As investors look to put the cash back to work, Morgan Stanley analysts believe other securitised products would make a natural destination for reinvestment.

    The Countrywide settlement covers breaches of certain representations and warranties as .......

    News 29 June 2016

  • US CLOs silenced

    The US CLO secondary market has been largely silent in the immediate aftermath of the UK's vote to the leave the EU.

    "The issue was that a lot of people came into their desks on Friday morning with little information", says one trader. "The UK's decision to leave is an unprecedented move, so the market was left in unchartered territory .......

    SCIWire 28 June 2016

  • SF upgrades keep momentum

    The global structured finance upgrade rate reached a record high in 2015, according to S&P. Although the downgrade rate was still higher at 11.2% last year, the upgrade rate increased to an all-time high of 9.8% in 2015 and a jump from 8.4% in 2014.

    Downgrades were up from 10% in 2014, but still presented a slow-down in growth for all but .......

    News Round-up 28 June 2016
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