CLOs

  • CLO credit quality remains strong

    Moody's has released its debut 360-degree report of the European CLO market and its 2Q15 performance, analysing macroeconomic and financial market conditions, high yield corporate sector trends and credit conditions that correlate with credit quality. The report adopts the same approach that the agency recently used in its report on the US CLO market's performance in 1Q15 (SCI June 3).

    The .......

    News Round-up 11 August 2015

  • Euro CLO 2.0 bond re-priced

    The class A noteholder of Carlyle Global Market Strategies Euro CLO 2013-1 has approved the reduction of the margin on the notes from 130bp to 115bp and the elimination of its right to remove/replace the collateral manager (SCI 31 July), with effect from the 17 August IPD. The move marks the first time that a European CLO has been 'Volckerised' .......

    News Round-up 11 August 2015

  • Euro secondary winds down

    The European securitisation secondary markets continue to wind down as seasonal factors hold sway.

    "We're really in summer mode now with not a lot of flows," says one trader. "Activity is down to a minimum with little BWIC supply and no major credit news to stimulate trading."

    One piece of relevant news did however come from the similarly quiet primary .......

    SCIWire 11 August 2015

  • US CLOs keep quiet

    The US CLO secondary market looks set to keep to the relatively quiet trend of recent weeks.

    Despite ever-present hopes of a pick-up in activity the combination of Friday's non-farm payrolls fuelling September rate rise speculation and mid-August illiquidity is encouraging reticence in the US CLO secondary market, which makes another quiet start to the week likely. However, since the NFP .......

    SCIWire 10 August 2015

  • OC degradation analysed

    The average par NAVs and overcollateralisation (OC) cushions in US balance sheet CLOs fell in almost half of the quarterly issuance seen in 2Q15, according to Wells Fargo structured product analysts. In most quarterly issuance samples they studied, over 40% of deals experienced OC degradation between 1Q15 and 2Q15.

    The Wells Fargo analysts believe that the decrease in OC is .......

    News 10 August 2015

  • Euro secondary limited

    Activity in the European securitisation secondary market remains limited as seasonal illiquidity prevails.

    Nevertheless, Autos alongside Dutch and UK prime continue to see some signs of life. At the same time, there is selective demand for Italian, Portuguese and Spanish paper.

    Today, currently sees one BWIC on the schedule - at 14:30 London time there is a single €700k line .......

    SCIWire 10 August 2015

  • ABS lawyers promoted

    Katten Muchin Rosenman has named nineteen new partners, among them Christina Burgess and Don Macbean for structured finance and securitisation. Burgess' experience includes ABS and MBS, with an emphasis on prime and sub-prime automobile loan and lease, dealer floorplan receivable and equipment lease securitisations and warehouses. Macbean's practice encompasses structured energy and commodity-related transactions, market-value CLOs and structured derivatives transactions.

    .......

    Job Swaps 7 August 2015

  • Law firm continues SF push

    Bryan Cave has appointed Rachel Kelly as a partner in its financial services group. She arrives from Macfarlanes, where she had been head of structured finance and capital markets, having previously been a partner in Clifford Chance's structured debt group.

    Kelly specialises in structured finance and debt capital markets, particularly CLOs. She advises clients on a number of areas, including real estate finance, infrastructure and .......

    Job Swaps 7 August 2015

  • Euro secondary on the up

    Yesterday was another positive day in European secondary, though today looks to be quiet.

    Secondary activity improved again yesterday with higher levels of end-user involvement than in recent days. Nevertheless, volumes remain fairly light and patchy.

    In line with recent patterns prime assets led the way, but there were also pockets of activity in CLOs, CMBS, Italian ABS/MBS and UK .......

    SCIWire 7 August 2015

  • Cairn majority stake sold

    Mediobanca has agreed to acquire RBS' 51% majority interest in Cairn Capital Group. The majority will be purchased from Cairn Capital's institutional shareholders, following which RBS will have no remaining interest.

    The acquisition is part of Mediobanca's strategy to continue developing its alternative asset management business through a number of strategic partnerships. As part of the transaction, Mediobanca will be providing .......

    Job Swaps 6 August 2015

  • Negative net issuance posted

    US CLO prepayments narrowly exceeded new issuance in July, resulting in the first negative net issuance month since January 2014. Deutsche Bank figures put new issue volumes at just under US$7bn and prepayments at just over US$7bn for the month.

    Part of the explanation for the unusually large payments in July is that many CLOs pay quarterly. But the prepayment .......

    News Round-up 6 August 2015

  • CLO equity fund launched

    American Capital has launched a new US$450m fund focused on investing in CLO equity tranches and comprising entirely of third-party investors. The American Capital CLO Fund I will purchase US$300m of American Capital's existing CLO equity portfolio at its fair value as of 30 June, while the additional US$150m will comprise of investment capacity.

    Closing of the fund is expected to occur .......

    News Round-up 6 August 2015

  • Euro secondary improves

    Levels are improving in the European securitisation secondary market, but activity remains patchy and limited.

    "The market has generally got better in terms of spreads over the past couple of days," says one trader. "However, flows remain very thin - there's not a lot going on by way of BWICs, primary has slowed and the client side is very quiet, .......

    SCIWire 6 August 2015

  • US CLOs patchy

    Activity in the US CLO continues to occur in patches as volumes stay reasonably low.

    "We're chugging along," says one trader. "I wouldn't say it was busy, but it's not as quiet as it was two weeks ago and there's a consistent drip of BWICs so it's not a ghost town."

    The middle of the capital structure remains the main .......

    SCIWire 5 August 2015

  • Investment adviser acquired

    Benefit Street Partners (BSP) has agreed to acquire TICC Capital's investment adviser TICC Management, with the intent to transition TICC Capital's investment strategy from syndicated loans and CLO investment vehicles to primarily focus on private debt investments. The closing of the transaction is contingent upon approval by TICC Capital stockholders, as well as the election of four new independent directors, among other .......

    Job Swaps 5 August 2015

  • Alpha exposure 'limited'

    The bankruptcy of Alpha Natural Resources is expected to have a limited impact on the US CLO market, with fewer than 170 deals exposed to the issuer. Thomson Reuters LPC data indicates that CLOs own US$308m of total exposure to Alpha Natural Resources and only US$265.2m of its Term Loan B.

    A Wells Fargo analysis of Intex data also shows .......

    News Round-up 5 August 2015

  • SF practice adds another

    Chris McGarry has joined Ropes & Gray as a partner in the firm's finance practice. He will advise on structured finance transactions, with a focus on CLOs and securitisations for clients including arrangers, sponsors, originators and investors.

    Prior to joining, McGarry practiced at Weil, Gotshal & Manges and, previous to that, Clifford Chance. He also served as vp in RBS' .......

    Job Swaps 5 August 2015

  • Mid-market manager recruited

    Medley Management has hired David Indelicato as md and head of credit management. He will focus on providing capital solutions to middle market companies and private equity sponsors.

    Prior to joining Medley, Indelicato was svp at GE Antares Capital, where he was a risk team leader responsible for underwriting, structuring and managing private equity sponsor-backed leveraged finance transactions. Previous to this, .......

    Job Swaps 5 August 2015

  • Top CLO managers revealed

    The rankings of the top 10 global CLO managers are relatively unchanged from January, according to Moody's latest CLO manager league tables. The tables show that in the US the top 10 managers' market share has declined slightly as other large managers have grown their share, and CLO issuance remains strong.

    "In the US, the top 10 managers' market share .......

    News Round-up 5 August 2015

  • Euro secondary keeps it light

    With light flows and a light BWIC calendar summer is taking its toll on the European securitisation secondary market.

    "With primary active last week and now that we're into August there's very little going on in secondary," says one trader. "The BWIC calendar is pretty light as well."

    Overall, the trader describes secondary spreads as mixed with light flows ensuring .......

    SCIWire 5 August 2015

  • US CLO hope

    There are hopes that activity in the US CLO secondary market could start to rise once again this week, but similar expectations have been dashed before.

    "Last week was another quiet one in the end for both CLO secondary and primary," says one trader. "It feels like there's going to be a little bit of a pick-up this week, but .......

    SCIWire 4 August 2015
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