CLOs

  • 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

  • Negative returns hit CLO index

    The total amount of CLOs that paid down in JPMorgan's CLO index (CLOIE) since the June rebalance through 31 July was US$7.24bn in par outstanding, split between US$4.18bn and US$3.05bn of pre-crisis and post-crisis CLOs. The post-crisis CLOIE added US$11.2bn, with 137 tranches from 25 deals at the July rebalance.

    The CLOIE total index exhibited negative returns in the month of July in .......

    News Round-up 4 August 2015

  • Law firm boosts SF expertise

    Rupert Wall has joined Sidley Austin as a partner in its global finance practice. His focus is on structuring and restructuring deals across the securitisation spectrum. He advises arrangers, originators and investors on all aspects of structured finance and derivatives, while also advising counterparties with capital markets issuances, leveraged finance transactions and portfolio sales.

    Wall arrives from Weil Gotshal and .......

    Job Swaps 4 August 2015

  • Euro secondary flat

    The European securitisation secondary market continues to see low levels of activity with spreads for the most part staying flat.

    "It's pretty quiet and as we head further into summer while we'll be watching for macro events it's likely that the market will continue to move sideways," says one trader. "There are now a lot of continental clients away so .......

    SCIWire 4 August 2015

  • US CLOs tick over

    After a very quiet end to the week and month on Friday the US CLO secondary CLO market is ticking over once more.

    There are currently three US CLO BWICs scheduled for trade today - relatively busy for a Monday in August. However, the calendar looks a little sparse for the remainder of the week with only a further four .......

    SCIWire 3 August 2015

  • Euro secondary stays strong

    European securitisation secondary market spreads are holding on to recent stronger levels amid low volumes.

    As anticipated, flows were very light across the board on Friday, which left spreads for the most part unchanged. However, the day's previously mentioned CLO BWIC did trade well.

    There are currently no BWICs on the European calendar for today.

    .......

    SCIWire 3 August 2015

  • Global CLO approach updated

    Fitch has updated its global rating criteria for CLOs and corporate CDOs. The update includes an explicit description of the stress portfolio construction for managed CLOs, as well as publications of the FX stresses on US dollar- and sterling-to-euro multicurrency CLOs and the default skew assumptions for multicurrency CLOs.

    For constructing stress portfolios in rating new transactions, the agency typically starts with the .......

    News Round-up 31 July 2015

  • Key man vote solicited

    Sound Harbor Partners is seeking to create consistency across its CLO stable by replacing the key managers on the Landmark transactions it acquired from Aladdin Capital (SCI 16 October 2012). The firm plans to implement what it describes as a two-step restructuring that would avoid a key man event.

    Specifically, notices have been issued in connection with Landmark VIII CLO .......

    Job Swaps 31 July 2015

  • Euro CLO 2.0 repricing proposed

    A notice has been issued for Carlyle Global Market Strategies Euro CLO 2013-1, which - if passed - would trigger the first repricing of a European CLO 2.0 deal. CELF Advisors is seeking consent from the sole investor to reduce the class A coupon margin from 130bp to 115bp from the 17 August IPD and to eliminate their right to .......

    News Round-up 31 July 2015

  • Euro secondary dries up

    Yesterday saw another very quiet day in the European securitisation secondary market and today looks to be little different as liquidity appears to have dried up into month-end and potentially the rest of the summer.

    Even flows in prime assets faded away yesterday as ABS/MBS was becalmed across the board. CLOs too saw only a handful of trades, but the .......

    SCIWire 31 July 2015

  • Euro secondary slows again

    The European securitisation secondary market has slowed down again.

    "We had a relatively busy start to the week, but yesterday was a bit slower and today looks to be the same," says one trader. "It's typical for high summer except we're still in July!"

    The trader continues: "We're once again mainly seeing activity round prime assets - particularly autos and .......

    SCIWire 30 July 2015

  • US CLOs stay murky

    Despite this week's upswing in auction activity the US CLO secondary market is still not getting much in the way of price clarity.

    "This week looks to be the busiest since June, but we're not seeing forced sellers it's more about people trying to wrap things up ahead of month-end," says one trader. "However, yesterday saw quite a few DNTs .......

    SCIWire 29 July 2015

  • CLO 2.0 overlap highlighted

    European CLO issuance levels in 2015 have surpassed end-2Q14 levels, according to S&P. So far, 12 new European transactions have brought total issuance for 2015 to €8.62bn from 21 transactions, compared with €6.92bn of issuance from 16 transactions during the same period last year. Four new managers - Oak Hill Advisors, Partners Group, Tikehau Capital Europe and Black Diamond Capital Management .......

    News Round-up 29 July 2015

  • Euro CLOs stand still

    The European CLO secondary market remains very quiet.

    "Nothing is going on - it's been a long time since there's been any real activity," says one trader. "There's been a couple of deals in primary, but secondary is at a standstill."

    Spreads have come in slightly from where they were earlier in the month, however. "There's been little bit of .......

    SCIWire 29 July 2015

  • CLO commodity defaults growing

    The number of defaults and impacted US CLOs increased in 2Q15, with 19 of 142 CLOs affected by defaults at the end of the quarter, according to Fitch. Five new defaults were reported in the agency's index, including two distressed debt restructuring events.

    One of the defaulted issuers, Sabine Oil & Gas, was held by eight CLOs. However, the exposure .......

    News Round-up 29 July 2015

  • US CLOs seek clarity

    As the US CLO BWIC calendar continues to build strongly this week, market participants are hoping for clarity on pricing levels.

    "It's looking like the most active week in several," says one trader. "That's partially thanks to month-end, but it is also due to sellers sensing that a bid has developed in mezz, which is teasing out higher numbers of .......

    SCIWire 28 July 2015

  • Europe emerging

    European CLO, loan markets discussed

    Representatives from Thomson Reuters, Credit Suisse, CVC Capital Partners and Goldman Sachs discussed the European CLO and loan markets in a live webinar hosted by SCI earlier this month (view the webinar here). Topics included primary CLO issuance, loan market developments and the impact of developments in Greece.

    Q: How has the European primary CLO market fared?
    A:     Alex Lembcke, .......

    Talking Point 28 July 2015

  • Hiking cycle history considered

    As the likely Fed rate hike date draws nearer, Barclays ABS analysts have examined the performance of securitised products during previous hiking periods. The effect on securitised product credit sectors has previously generally been benign.

    The Barclays analysts paid particular attention to agency RMBS both before and during previous hiking cycles. A typical hiking cycle lasts a year and a .......

    News 28 July 2015

  • CLO consultant tapped

    Eric Bothwell has joined Ashurst as a senior consultant within its CLO practice. He arrives as md from UBS, where he was most recently involved in the sale and unwinding of non-core asset portfolios.

    Bothwell was also one of the founding members of Goldman Sachs' new issue CLO team, responsible for all aspects of transaction structuring, execution and marketing. His .......

    Job Swaps 28 July 2015

  • Called CLO profiles examined

    A recent Wells Fargo analysis of US CLO redemptions suggests that the average time between end of reinvestment (EoR) and when a deal is called is 30 months. The median senior note factor at the time of the call was 7.8%.

    The analysis examines the profile of called CLOs by issuance vintage and by year of EoR, based on a .......

    News Round-up 28 July 2015

  • Euro secondary shows caution

    It's been a cautious start to the week for the European securitisation secondary markets, but BWIC volume is increasing.

    "Overall, market tone is reasonably cautious both because of macro issues, especially China, and also because of the time of year," says one trader. "However we continue to see decent client interest in non-conforming and select peripherals."

    Meanwhile, with month-end approaching .......

    SCIWire 28 July 2015
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