CLOs

  • ECB looks to provide boost

    A new set of measures announced by the ECB could boost ABS supply. The central bank is launching a second TLTRO programme, expanding QE and cutting rates.

    The ECB's deposit rate has been cut by 10bp to -0.4%. Its main refinancing rate has been cut by 5bp to zero.

    The TLTRO 2 programme will - in contrast to the first TLTRO .......

    News 11 March 2016

  • US CLO see-saw

    Activity and price levels continue to see-saw in the US CLO secondary market.

    "Market tone is pretty strong with people trying to be positive after ABS Vegas, but activity and sentiment is up and down," says one trader. "For example, I'm hearing a lot of people saying they're expecting another leg down in lower mezz."

    The trader continues: "Overall, the .......

    SCIWire 10 March 2016

  • CLOs cut oil exposure

    While the oil and gas sectors have been a relatively small part of the leveraged loan universe, US CLO exposure to these sectors varies greatly across deals. Combined with idiosyncratic issues in other sectors, the impact on CLOs has been significant, particularly at the most credit sensitive tranches of the capital structure.

    S&P figures show that loans to firms in .......

    News 10 March 2016

  • Fee waivers introduced

    TICC Capital Corp, in consultation with its special committee, has agreed to a series of ongoing waivers with respect to its management fee and income incentive fee. The move follows a comprehensive process led by the special committee, including a detailed analysis of best-in-class practices in the industry, conducted with the assistance of the firm's financial advisor Morgan Stanley.

    Under .......

    Job Swaps 10 March 2016

  • CLO cov-lite limits increasing

    Evolving definitions of covenant-lite have reduced the number of leveraged loans that count toward US CLO cov-lite purchase limits, while cov lite purchase limits have also increased, says Moody's. The rating agency considers both trends to be negative.

    Moody's bases its conclusions on a review of 419 indentures from CLOs rated between 2012 and 2015. "An increase in carve-outs has .......

    News Round-up 10 March 2016

  • Step-up tranche refinanced

    Apollo Credit Management has refinanced the US$120m class A1b notes from its ALM VIII CLO, marking the first refinancing transaction in the sector since September. The tranche was redeemed at par, plus US$272,856 interest, by issuing replacement securities.

    Deutsche Bank CLO strategists note that the motivation for the refinancing is unusual in that the refinanced tranche is a step-up tranche. .......

    News Round-up 10 March 2016

  • Euro secondary stable

    The European securitisation secondary market remains stable despite signs of an uptick in volume.

    "Yesterday the market was more or less stable despite an increased number of lists," says one trader. "Notably, the large prime RMBS list traded quite well with most of the 24 bonds involved going through in line with recent levels."

    At the same time, the trader .......

    SCIWire 10 March 2016

  • Euro opportunistic credit team hired

    Crestline Investors has recruited an experienced European opportunistic credit team and opened its first European office, in London. The London office will be managed by Michael Guy, who becomes European cio.

    Guy has over 20 years of experience in the investment industry and founded the Tenax Credit Opportunities Fund. He has also worked as co-head of European loans and special .......

    Job Swaps 9 March 2016

  • Promotion due at Och-Ziff

    Nim Sivakumaran is set to replace Donald La Vigne as head of European structured credit strategies at Och-Ziff Capital Management Group's London office after the latter's departure in June. Sivakumaran is currently an md and analyst in the firm's European structured credit investment team.

    .......

    Job Swaps 9 March 2016

  • Euro secondary sidelined

    The improving macro picture has so far failed to encourage the majority of participants back into the European securitisation secondary market.

    "Yesterday was mainly dominated by BWICs, which went through OK but a lot of clients are still on the sidelines," says one trader. "While market tone keeps improving in line with broader markets liquidity hasn't moved in tandem with .......

    SCIWire 9 March 2016

  • Cautious optimism for US CLOs

    Mezz paper is at the forefront of the current bout of cautious optimism in the US CLO secondary market.

    "Over the past three years we've seen the same pattern - the market has sold off from about October and then everyone comes back from Vegas filled with optimism about the relative value of our product and starts buying CLOs," says .......

    SCIWire 8 March 2016

  • Opportunistic credit fund launched

    La Française Global Investment Solutions has launched a multi-strategy long/short credit fund, dubbed LFIS Vision UCITS - Credit. The fund will invest opportunistically in a diverse portfolio of undervalued or overvalued credit assets.

    The fund is managed by the firm's credit strategies team, led by Renaud Champion, and is run alongside the team's established credit opportunities strategy. Average credit experience .......

    News Round-up 8 March 2016

  • Oaktree targets Aussie growth

    Oaktree Capital Group has opened an office in Sydney, Australia. Byron Beath has joined the firm as md to lead investment activities in Australia and New Zealand and will be based in the Sydney office.

    Beath was previously at Macquarie Bank. He spent 15 years at the bank, most recently as a director in the corporate and asset finance division.

    .......

    Job Swaps 8 March 2016

  • Euro secondary pick-up?

    After a very slow start to the week yesterday European securitisation secondary market activity looks set to pick up today.

    A volatile day in wider markets kept most participants on the sidelines once more and meant flows were extremely light again yesterday, nor were there any BWICs. Consequently, secondary spreads were unchanged across the board.

    Nevertheless, market sentiment remains positive. .......

    SCIWire 8 March 2016

  • Survey suggests manager preparedness

    Maples Fiduciary last month conducted a survey of its CLO manager clients with a view to providing insight into risk-retention strategies. The results indicate an overall state of preparedness among CLO managers, which the firm says augers well for industry compliance ahead of the year-end deadline.

    Among the key survey findings is that 73% of managers polled have risk-retention structures .......

    News Round-up 4 March 2016

  • QCLO bill passed to the House

    The Barr-Scott bill - which seeks risk-retention relief for qualified CLOs (QCLOs) - has passed the House Financial Services Committee by a vote of 42-15, with 10 democrats joining the bill, according to S&P. The bill now passes to the full House of Representatives for a vote. Assuming passage by the House, it would then have to be introduced and .......

    News Round-up 4 March 2016

  • Euro CLOs limited

    The European CLO secondary market remains hampered by a lack of activity.

    "There's nothing really happening this week and the Vegas conference hasn't helped," says one trader. "We're only seeing very limited trading and the few BWICs we've had over the past couple of days haven't shed much light on levels."

    However, the trader adds: "There is a general sense .......

    SCIWire 4 March 2016

  • Associations confirm STS support

    AFME, the European Fund and Asset Management Association (EFAMA), the International Capital Market Association (ICMA) and Insurance Europe have issued a joint paper backing EU efforts to develop a robust and successful STS framework. The associations believe that STS and the associated CMU could play a pivotal role in enabling non-bank funding alternatives across the region.

    The joint paper affirms .......

    News Round-up 3 March 2016

  • Euro secondary slows

    This week's recovery in the European securitisation secondary market slowed yesterday.

    Despite increasingly positive market sentiment the anticipated continued uptick failed to materialise yesterday and flows thinned once more. Nevertheless, the wider market story was sufficient to keep most secondary spreads flat to slightly tighter.

    While a few buyers are in evidence sellers are now more elusive and BWICs are largely absent .......

    SCIWire 3 March 2016

  • Sky Road, Virtus link products

    Sky Road has added an enhanced trade processing feature for CLO and loan portfolio management to its Motion platform. The new functionality allows clients to achieve straight-through connectivity with Virtus Partners' CDO Suite, Virtus' portfolio administration software for multi-asset class tracking and compliance monitoring.

    Sky Road clients can enter underlying loan portfolios in Motion and have the loans automatically sent .......

    News Round-up 2 March 2016

  • Pure APAC CLO prepped

    SC Lowy and UOB Asset Management are together launching the first fully Asia Pacific-backed, actively managed cashflow CLO. The CLO will be comprised predominantly by senior secured bank loans from Asia Pacific issuers.

    The transaction's collateral will be co-managed by UOB Asset Management and SC Lowy and underwritten by Standard Chartered, Resource Capital Market and UOB Securities. The transaction is .......

    News Round-up 2 March 2016
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