CLOs

  • European placements trending down

    Only €14.3bn of securitised product was placed in Europe in 1Q16, according to AFME's latest data snapshot on the market, as €42.5bn was retained.

    A total of €56.9bn was issued last quarter, a decrease of 20.3% from the €71.4bn issued in 4Q15. However, it was significantly up from the €35.3bn issued the same time last year - a 61.2% increase on 1Q15.

    News Round-up 28 April 2016

  • Euro secondary picks up

    The European securitisation secondary market saw an increase in activity yesterday to go with the improving tone of recent sessions.

    "After being quiet for the past few days flows picked up across the board yesterday," says one trader. "Volumes are still not huge, but we're now seeing a lot of enquiries from investors looking for paper."

    Notably, the trader adds: "That .......

    SCIWire 27 April 2016

  • US CLOs strengthen

    Tone and activity in the US CLO secondary market continues to strengthen.

    "The background remains positive with oil above 40, stocks hitting new highs and people happier with credit in general," says one trader. "For our part, we're seeing a bid for equity, mezz continues to rally and new issue activity is starting up again, so the CLO picture is .......

    SCIWire 26 April 2016

  • Liquidity tops investor concerns

    While investor fears over China-related uncertainty have subsided, concerns regarding liquidity and central bank policies have grown, according to Morgan Stanley's latest global securitised products investor quarterly survey. Liquidity is the top concern for 21% of respondents.

    Central bank policies cause the most concern for 18% of investors while disappointing US economic growth is now the third greatest concern, at .......

    News 26 April 2016

  • CLO cashflow diversion eyed

    Silver Spring CLO recently became the first post-crisis US CLO to experience full cashflow diversion from the equity. The 2014-vintage Silvermine Capital deal has a triple-C exposure of 15.6% and a 5% triple-C covenant, which is lower than the average 7.5% covenant in most post-crisis CLOs, according to JPMorgan CLO analysts.

    Silver Spring CLO's exposure to energy and mining loans .......

    News 26 April 2016

  • CLO services co-leads named

    Hillel Caplan and Lynda Lazzari have been named co-leads for Deloitte & Touche's CLO services practice within the firm's securitisation practice.

    A Deloitte Advisory partner, Caplan has more than 22 years of experience serving asset management and banking clients. Based in the firm's New York office, his new CLO services practice co-leadership role will focus on financial technology offerings to .......

    Job Swaps 26 April 2016

  • Euro secondary steady

    The European securitisation secondary market continues to move steadily ahead.

    Tone continued to be positive across the board at the end of last week and into the start of this. However, lack of supply is still an issue and is causing sessions to be steady rather than spectacular.

    Nevertheless, many of the line items in for the bid are continuing .......

    SCIWire 26 April 2016

  • Manager replacement resolved?

    Pursuant to a written resolution, the subordinated noteholders of Strawinsky I CLO have resolved to direct the trustee to appoint Dynamic Credit Partners Europe as successor investment manager, subject to controlling class (currently the class B noteholders) approval. IMC Asset Management tendered its resignation as investment manager for the second time on 15 April, having initially tendered its resignation on .......

    Job Swaps 22 April 2016

  • APAC solutions unit formed

    Natixis has appointed Fabrice Guesde as head of global structured credit & solutions (GSCS), Asia Pacific, to lead the newly-created unit. Based in Hong Kong, he reports to GSCS global head Emmanuel Lefort and locally to APAC fixed income head Viet-Linh Ha Thuc.

    Guesde has been with Natixis since 2006, latterly in Paris as head of credit & insurance solutions. .......

    Job Swaps 22 April 2016

  • Combo note RFC issued

    Moody's has proposed revisions to how it rates combination securities - otherwise referred to as combo notes. These products are CDOs or CLOs that typically combine their equity with either secured notes from the same transaction or other securities, such as Treasury STRIPS.

    Underlying securities for combo notes are referred to as components. Moody's says that combo note ratings may be sharply .......

    News Round-up 22 April 2016

  • US CLO patterns persist

    Activity and trading patterns in the US CLO secondary market are persisting.

    "It's still busy with the same kinds of themes continuing," says one trader. "We're generally bid on across most of the stack, non-Volcker paper is a bit behind, but there is still a bid there as well."

    Nevertheless, the trader adds: "We did see a handful of DNTs .......

    SCIWire 21 April 2016

  • CLO default risks amp up

    US CLOs are becoming more exposed to the rising number of defaulted issuers, according to Fitch's latest index results for the sector. The exception are triple-A rated tranches, which should remain shielded from potential downgrades.

    Approximately 70% of 233 deals in Fitch's index had exposure to at least one defaulted issuer in 1Q16, with 16% exposed to at least three defaulted issuers. .......

    News Round-up 21 April 2016

  • Euro secondary scrappy

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

    Sentiment remains very positive across the vast majority of securitisation sectors in line with wider markets. However, lack of supply is still hampering any sizeable cohesive trading.

    The closest to that yesterday came in Italian paper. There, following strong prints on the 11:00 Italian RMBS BWIC there was an .......

    SCIWire 21 April 2016

  • Euro CLOs active

    The European CLO secondary market continues to be active both on- and off-BWIC.

    "Despite limited direction from primary, the secondary market is still strong," says one trader. "There have been quite a few BWICs in the past couple of sessions and they continue to trade well."

    The trader continues: "Triple- and double-Bs remain the major focus. Yesterday we saw triple-Bs .......

    SCIWire 20 April 2016

  • US CLO calls climb

    US CLO calls continued to increase last year, as JPMorgan analysts estimate 76 CLO 1.0s and 13 CLO 2.0s were called. While they expect prepayments to remain light in 2016, the analysts believe the recent rally in loan prices could see an even greater rate of optional redemptions.

    The 89 CLOs called last year compare to 85 called in 2014 .......

    News 20 April 2016

  • Special situations analyst added

    TCW Group has appointed Steven Purdy to its fixed income credit research group as md and special situations analyst. He will take responsibility for analysing and identifying credit opportunities with companies in stressed and distressed situations.

    Purdy is based in Los Angeles and reports to Jamie Farnham, director of credit research. He was previously based in London with TPG Capital .......

    Job Swaps 20 April 2016

  • US CLOs remain robust

    The strong market tone in the US CLO secondary market is continuing and supporting ever-narrowing spreads.

    "The market remains robust and the consensus appears to be that we'll continue to move tighter," says one trader. "The overall positive feeling helped to ensure that secondary held up pretty well at the end of last week when things looked to be getting .......

    SCIWire 19 April 2016

  • Bidding goodbye?

    BDCs face uncertain future as market turns

    BDCs and other listed vehicles are coming under increasing pressure - not least from their shareholders - to change the way they operate in the structured credit market. In some instances, they are being forced out of the sector altogether.

    A raft of firms have already either liquidated or cut their fees so as to better align themselves with investors. .......

    News Analysis 19 April 2016

  • Distressed strategist brought in

    GSO Capital Partners has recruited David Flannery as senior md, focusing on distressed strategies in both private and public markets. He joins the Blackstone subsidiary from Anchorage Capital Group, where he focused on illiquid credit opportunities and CLOs.

    Flannery also previously worked at Bank of America Merrill Lynch, in various roles that included chief risk officer of global banking and markets and .......

    Job Swaps 19 April 2016

  • Euro secondary stable

    The European securitisation secondary market continues to be stable despite wider market vacillation yesterday.

    A buying bias across asset classes remains apparent, but limited secondary supply is keeping activity patchy. Bolstered by new issuance UK RMBS is seeing some action and spreads are holding up despite the evolving Brexit story. Selective trading in CMBS and some high profile prime names .......

    SCIWire 19 April 2016

  • CVC CLO stake sold

    Electra Partners has made a £19m investment in CVC Credit Partner's Cordatus Loan Fund VI. The €400m CLO is backed by leveraged loans issued by predominantly private equity-backed companies in Europe.

    The transaction has a 13-year life and will be invested in approximately 100 individual credits. Electra's investment is a majority interest in the CLO's equity and was made through .......

    News Round-up 18 April 2016
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