CLOs

  • 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

  • US CLO sellers return

    Sellers appear to be returning to the US CLO secondary market.

    After a very quiet month so far the US CLO BWIC schedule is now building strongly for this week in anticipation of month-end. There are already ten lists on the calendar over the next few days mainly involving mezz and equity paper across a range of vintages.

    Today currently .......

    SCIWire 27 July 2015

  • Volcker deadline drives BWICs

    The first half of 2015 saw US$18.5bn of US CLO bonds on BWIC, US$11bn of which occurred in Q2, according to Citi figures. A record US$4.7bn was out for bid during June alone, ahead of the Volcker Rule deadline.

    Triple-A supply has been trending upwards since November 2014 and represented the largest percentage of BWIC volumes in 2Q15, at 60%. .......

    News 27 July 2015

  • Euro secondary holds up

    The European securitisation secondary market is continuing to hold up despite thin liquidity.

    Buy-side activity remains patchy with volumes overall still very light away from prime. What flows there are are mainly two-way though a selling bias in autos has emerged as investors seek to make room for new issues in the sector among a reasonably strong primary pipeline overall.

    SCIWire 27 July 2015

  • No-action impact gauged

    Prior to publication of the US SEC's no-action letter (SCI 21 July), an estimated US$261bn of US CLOs had to refinance before 24 December 2016 to avoid risk retention for the refinanced tranches. The ruling means that an additional US$152bn of CLOs should be able to refinance during 2017 without triggering the risk-retention requirement, according to Wells Fargo figures.

    There .......

    News 24 July 2015

  • Euro secondary stays firm

    Tone and spreads in the European securitisation secondary market are staying firm.

    Yesterday saw another solid day in secondary market activity across the board. The usual hotspots continued with prime assets seeing most flows once more, although Italian paper is receiving increasing attention.

    BWIC activity remained reasonably healthy yesterday with most line items going through at or around expected levels .......

    SCIWire 24 July 2015

  • Private debt pro recruited

    CVC Credit Partners has brought in Chris Fowler as md for its private debt team. He will be responsible for investments in CVC Credit's European mid-market lending strategies, reporting to md and portfolio manager Neale Broadhead.

    Fowler joins from GE Capital, where he was md in the mid-market leveraged finance origination team. Prior to this, he worked for Morgan Stanley in .......

    Job Swaps 24 July 2015

  • European CLO team boosted

    Tikehau has hired Alison Goold as a portfolio manager for its European CLO business. She will be part of the firm's London-based team, headed by Debra Anderson.

    Goold arrives from BNP Paribas, where she was a director in the leveraged syndications team. Prior to that, she was head of corporate credit and a portfolio manager at AgFe.

    .......

    Job Swaps 23 July 2015

  • Sterling effort

    European CLOs testing creative palette

    European CLOs remain an attractive option for yield-hungry investors, but a shortage in quality collateral persists. As managers attempt to broaden the investor universe, a fresh phase of innovation has expanded the structural scope of new transactions.

    The current new issue European CLO pipeline seems to have been temporarily interrupted by the uncertainty surrounding Greece and the evolving situation in .......

    News Analysis 23 July 2015

  • Euro secondary improves again

    The European securitisation secondary market volume again saw a little improvement yesterday as spreads remain firm.

    Secondary trading activity continues to improve across the board with each session. Yesterday saw continuing investor interest in the prime segment and 1.0 CLOs. UK non-conforming had a better day than of late, but the primary market continues to weigh heavily on the sector, .......

    SCIWire 23 July 2015

  • Euro secondary sees slow progress

    The European securitisation secondary market continues to see improvement, but progress is still slow.

    "Activity has picked up over the last few days," says one trader. "But we're definitely in summer mode now - it's not improving as quickly as we'd hoped."

    Nevertheless, the trader adds: "In Dutch and UK prime two way flows keep strengthening and spreads are grinding tighter. .......

    SCIWire 22 July 2015

  • US CLOs stay slow

    The US CLO secondary market remains quiet despite a few BWICs appearing on this week's schedule.

    "Things are pretty slow," says one trader. "It's not all negative - there are no forced sellers and things have improved in terms of market tone, it's just there's not a lot of secondary activity."

    The lack of activity is a result of a .......

    SCIWire 21 July 2015

  • Collateral supply leads CLO concerns

    Reduced collateral supply is considered a bigger risk to US CLO issuance than risk retention requirements, according to a recent survey by Citi. In comparison, sticky CLO spreads and reduced arbitrage worry European CLO players most.

    Risk retention still ranks as the second biggest risk in both US and European markets, followed by reduced arbitrage in the US and reduced .......

    News Round-up 21 July 2015

  • Refinancing relief confirmed

    The US SEC last week issued a no-action letter clarifying that CLOs originally issued before December 2014 can be refinanced and remain exempt from risk retention requirements. The letter is in response to a request for no-action relief in connection with a proposed refinancing of one or more classes of pre-existing CLO securities submitted by Cleary Gottlieb on behalf of .......

    News Round-up 21 July 2015

  • Euro secondary stays positive

    European securitisation secondary markets are remaining positive, although activity is still limited.

    Sentiment continues to improve across the board, but volumes remain light. Prime ABS/MBS and 1.0 CLO paper saw increased two-way flows on Friday, but peripherals, particularly Portuguese and Spanish names, are still lagging albeit in a tightening trend.

    The resurgent primary market is also having an impact - .......

    SCIWire 20 July 2015

  • Euro secondary stabilises

    The European securitisation secondary market continues to stabilise.

    Yesterday was another solid day with spreads holding form to edging tighter across the board. Buying interest off- and on-BWIC continues to increase, while auction activity is also growing.

    Yesterday's lists saw mixed results with most line items going through at or around talk, but a handful of mezz autos failed to .......

    SCIWire 17 July 2015

  • US CLOs stay quiet

    The US CLO secondary market remains quiet but market sentiment is improving.

    "Market tone feels much better than in recent weeks, though there are no trades to prove that yet," says one trader. "1.0 paper in particular is better bid and the bid-ask is coming in, but the market is still very quiet."

    The improving tone is being driven by .......

    SCIWire 15 July 2015

  • European loans team strengthened

    Intermediate Capital Group (ICG) has recruited Michael Curtis and Benjamin Edgar as portfolio managers and co-heads of its European loans business. They will join the firm's credit fund management team, which covers strategies that include senior secured credit and structured credit solutions.

    Curtis joins ICG from 3i Debt Management, where he was a portfolio manager across a number of CLO funds, separate .......

    Job Swaps 15 July 2015

  • Euro secondary improves

    After a long period in the doldrums things look to be improving for the European securitisation secondary market.

    "Overall tone was much better yesterday," says one trader. "Notably, we saw good activity in both UK and Dutch prime, so there's more liquidity there and prices are marginally better."

    The trader continues: "Peripherals too are improving with sentiment generally much better, .......

    SCIWire 15 July 2015

  • CLO supply booms in June

    June's US$14.6bn in US CLO supply is the third highest monthly figure of all time and nearly US$1bn more than the pre-crisis record of US$13.7bn set in November 2006, according to JPMorgan CLO analysts. However, a recent survey undertaken by the analysts outlines ongoing concerns over challenging arbitrage and a lack of collateral.

    Softer CLO liabilities may be somewhat blunted .......

    News Round-up 14 July 2015

  • 'High quality' managers negating risk

    The top 20 European CLO 2.0 issuers account for €3.31bn, or 28%, of a total €11.5bn of collateral, says Moody's. In addition, the largest issuers have better weighted-average rating factors (WARF), at 2526, than the greater European CLO 2.0 universe, at 2944.

    "European CLOs 2.0 are beset by heavy concentration: both in terms of their obligors and their exposure to .......

    News Round-up 14 July 2015
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