CLOs

  • Mixed impact from 'step-in' proposals

    Basel Committee proposals could increase capital charges for banks with large asset management activities. Moody's says that the proposals on step-in risk are credit positive for senior bank creditors, but could also make asset management less attractive due to increased operational costs and capital requirements.

    As part of a broader regulatory push to tackle shadow banking risk, the Basel Committee .......

    News Round-up 7 April 2016

  • Euro secondary patchy

    There is something of a pick-up in the European securitisation secondary market but activity remains patchy.

    "It's getting more active, but we're not yet back to where we were before Easter," says one trader. "Trading is still selective rather than widespread."

    The trader continues: "We've seen a few trades in UK prime, which went wider last week but has come .......

    SCIWire 7 April 2016

  • US CLO change ahead?

    The recent quiet period in the US CLO market could be about to change.

    "The lull is continuing for now, but it is just that - a lull," says one trader. "Things are about to change and get very interesting."

    The trader continues: "Volatility is low again across wider markets and CLOs have tightened significantly. I believe there is now .......

    SCIWire 6 April 2016

  • Euro secondary starts slowly

    The quarter has begun slowly in the European securitisation secondary market.

    "It's been a slow start to the week so far," says one trader. "Tone has remained positive despite the weaker macro backdrop, but clients remain on the sidelines with many still assessing the implications of the Granite Towd deal and the potential lack of future Warwick supply."

    The trader .......

    SCIWire 6 April 2016

  • STS alarm bells ring

    A list of potential pitfalls in the European Commission's STS framework has been published in a letter by 32 signatories, including some of the EU's largest banks. The signatories argue that the STS framework would not, in its current form, provide the solution for the securitisation market that it is intended to.

    The joint-letter seeks to address 10 key points .......

    News 5 April 2016

  • CDS pro shifts law firms

    Mayer Brown has added Douglas Donahue as a partner in its New York Office. He will contribute to the firm's global banking and finance practice, as well as its derivatives and structured products group.

    Donahue's practice focuses on transactional and advisory matters related to derivatives. He represents both buy- and sell-side institutions in connection with the development, structuring, negotiation and .......

    Job Swaps 5 April 2016

  • CLO indices increase eligibility

    Palmer Square Capital Management has announced a methodology change to its Palmer Square CLO Senior Debt Index (CLOSE) and the Palmer Square CLO Debt Index (CLODI). The update is effective from the latest rebalance of the indices on 31 March.

    CLOs eligible for inclusion in CLOSE now include deals that are larger than US$500m (previously US$600m). Additionally, CLOs eligible for .......

    News Round-up 4 April 2016

  • Rating agency adds sales chief

    Scope Ratings has appointed Sven Janssen to the newly-created role of chief sales and marketing officer, effective from today (1 April). He was previously head of debt capital markets at Oddo Seydler Bank and has also worked at Macquarie, Bank Metzler, Bank Sal Oppenheim and Hawkpoint Partners.

    .......

    Job Swaps 1 April 2016

  • CLO equity portions evaluated

    Additional expected defaults within US CLOs this year is prompting bondholders to direct greater focus to the equity portion within transaction restructurings, according to Fitch. The increasing presence of equity in the near term could arise from a combination of distress in commodity sectors and non-commodity issuers suffering from high pre-petition leverage, struggling business models and declining enterprise valuations.

    Fitch explains .......

    News Round-up 1 April 2016

  • US CLOs still strong

    The US CLO secondary market looks like it is set for a quieter day today, but sentiment is still strong.

    "It's relatively quiet today thanks to quarter-end, but we saw quite a bit of activity yesterday and spreads are still firm," says one trader. "A high proportion of bonds traded on the bid lists yesterday and once the new quarter .......

    SCIWire 31 March 2016

  • Euro secondary stifled

    Sentiment continues to be strong across the European securitisation market but technicals are stifling activity.

    Buying interest remained apparent throughout ABS/MBS yesterday with the exception of UK RMBS, which is seeing some investors hold back over Brexit uncertainty. However, flows overall were still light and there were significant DNTs on BWIC as the gap in buyer and seller expectations for .......

    SCIWire 31 March 2016

  • US CLOs busy

    Supply keeps on coming in the US CLO secondary market.

    "It's very busy day today, which is a function of both quarter-end and spreads continuing to tighten," says one trader. "That's especially true in mezz, which was underwater and now very clearly isn't."

    Consequently, the trader adds: "We're seeing people testing mezz demand and every day seems to see a .......

    SCIWire 30 March 2016

  • Euro secondary returns

    After a quiet few sessions surrounding the long weekend the European securitisation secondary market looks to be returning to life.

    Yesterday once again saw light activity but tone remains overwhelming positive across most European ABS/MBS sectors and spreads remain well supported as more and more participants return post-Easter. Meanwhile, CLOs continued to lead the way in terms of both activity .......

    SCIWire 30 March 2016

  • QCLO bill positives underlined

    The Barr-Scott bill could pose indirect positive effects on the US CLO and leveraged loan markets by lowering the risk retention burden for managers bringing new deals to the market, Moody's reports. The bill passed the House Financial Services Committee earlier this month and now awaits potential passage in the House and the Senate (SCI 4 March).

    The legislation introduces .......

    News Round-up 29 March 2016

  • Japanese rating upgrades increase

    The upgrade rate for Japanese structured finance securities rose in 2015, notes S&P. S&P Japan raised 8.3% of its outstanding ratings on Japanese structured finance securities last year, up from 4.5% in 2014.

    The 2015 upgrade rate exceeded the downgrade rate of 4.5% and resulted in an upgrade-to-downgrade ratio of 186%, which also surpassed the 2014 ratio of 143%. Separately .......

    News Round-up 29 March 2016

  • Chinese ABS expansion 'to continue'

    China's securitisation market will continue to grow this year, albeit at a slower pace than in 2015, says Fitch. Issuance last year doubled to reach a record CNY600bn from more than 300 transactions.

    Market expansion will be driven by regulatory changes which have made it simpler and more efficient for financial institutions to issue structured finance securities. The rating agency .......

    News Round-up 29 March 2016

  • Credit Suisse exits European ABS

    Credit Suisse is pulling the plug on its European ABS presence as it revealed new details on its global restructuring plans. The bank confirmed that it will end operations in European securitised product trading, along with distressed credit and long-term illiquid funding.

    Capital allocation will also be reduced in a number of other areas, which it describes as 'not consistent' with its new strategy. .......

    Job Swaps 24 March 2016

  • US CLO surge

    There is a surge in US CLO secondary supply today.

    Sellers appear to be looking to capitalise on the continuing mezz bid on the last full trading day ahead of the long weekend with a considerably larger number of auctions than in recent sessions. The move follows most of yesterday's lists trading reasonably well with the exception of the large .......

    SCIWire 23 March 2016

  • Euro secondary steady

    Activity in the European securitisation secondary market is steady rather than spectacular at present.

    Liquidity grows ever thinner as the long holiday weekend approaches and light, patchy flows continue to characterise the market. Yesterday's BWICs traded reasonably well for the most part, though the ABS/MBS lists yielded little colour. For now at least spreads across the board remain stable despite .......

    SCIWire 23 March 2016

  • US CLOs come back

    The US CLO secondary market's recent return to form is gaining a firmer footing.

    "We're definitely seeing a bid in the market across the capital structure and after trading down so far it's really coming back," says one trader. "From our side we're looking for double- and triple-As and they're proving very difficult to find."

    However, the trader adds that .......

    SCIWire 22 March 2016

  • Hildene ends CLO presence

    Hildene Leveraged Credit (HLC) has sold the management contracts of four US CLOs to an affiliate of Fortress Investment Group. The sale, which totals US$1.4bn in assets, signals HLC's exit from the CLO business. The CLOs will now be managed by the Fortress-affiliated group.

    Terms of the agreement were not disclosed. Ted Gooden of Berkshire Capital served as financial advisor to Hildene .......

    Job Swaps 22 March 2016
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