CLOs

  • '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

  • Chinese expansion predicted

    The Chinese auto ABS and RMBS markets have high potential for growth over the medium term and should expand on the success of CLOs in China, says Moody's. This is due to high demand for auto loans and mortgages in the country on the back of higher consumption and rapid growth in the housing sector.

    The result has left auto .......

    News Round-up 13 July 2015

  • CLO issuance forecast broadened

    US CLO issuance totalled US$59bn in 1H15, which is approximately 3% lower compared to 1H14, according to Morgan Stanley's CLO Market Tracker results. Nonetheless, Morgan Stanley still projects an annualised issuance of nearly US$120bn, which is well in excess of its original forecast of US$75bn-US$85bn.

    At the same time, US leveraged loan issuance has declined to US$143bn during the first six months of .......

    News Round-up 9 July 2015

  • CLO risk retention readiness weighed

    Moody's believes that most post-crisis manager entrants into the US CLO market will be able to meet the US risk retention requirements which become effective in December 2016. This is due to many of those managers already having access to the capital necessary to retain a portion of their own deals.

    The agency notes that some post-crisis CLO managers are public companies with large, diverse .......

    News Round-up 8 July 2015

  • CLO vet moves west

    Laila Kollmorgen has joined PineBridge Investments, where she is md within its leverage finance group. She is responsible for managing the investments in CLOs issued by third-party managers, and is based at the firm's Los Angeles office.

    Prior to PineBridge, Kollmorgen was most recently head of European structured products trading for Raymond James Financial in London. She has also had senior roles at .......

    Job Swaps 7 July 2015

  • CLO non-call periods shortening

    Moody's says that some US CLOs are shortening their non-call periods and adding make-whole provisions to give themselves an opportunity to refinance ahead of the approaching effective date of the Dodd Frank Act's risk retention rules. The agency believes that shorter non-call periods are generally credit positive to noteholders.

    Moody's has found non-call periods as short as one and a half .......

    News Round-up 7 July 2015

  • Euro secondary holds up

    European securitisation secondary market spreads are holding up as the wait for the Greek referendum continues to keep most participants sidelined.

    Flows remained light yesterday and are expected to stay the same today especially given the US public holiday. Prime assets again saw the most activity though it was still very patchy and market sentiment has slightly improved in peripherals .......

    SCIWire 3 July 2015

  • CLO partners tapped

    Scott Faga and Eugene Ferrer have joined Paul Hastings as partners from Ashurst, where they were respectively global co-head of the securities and derivatives group and managing partner for the US offices. The pair's practice focuses on securitisation and structured finance, with a particular emphasis on CLOs.

    Faga is based in Washington, DC, and Ferrer is based in New York. .......

    Job Swaps 2 July 2015

  • Euro secondary seeks clarity

    The European securitisation secondary markets continue to suffer poor liquidity and lack of supply as participants await further news on Greece.

    "It's still very quiet with everyone sitting on the sidelines," says one trader. "We got through quarter-end OK and had hoped things would then pick up but it looks like no one is willing to do anything until we .......

    SCIWire 2 July 2015

  • Private debt head recruited

    Hermes Investment Management has appointed Patrick Marshall as head of private debt and CLOs, responsible for establishing and building the firm's business in the leveraged loan, private debt and CLO markets globally. Based at the firm's headquarters in London, he will report to Zoe Shaw, head of fixed income.

    With over 20 years of debt market experience, Marshall joins from .......

    Job Swaps 2 July 2015

  • CLOIE softens on volatility

    The total amount of CLOs paid down in JPMorgan's Collateralized Loan Obligation Index (CLOIE) since the May rebalance through 30 June was US$4.96bn in par outstanding, split between US$1.98bn and US$2.97bn of pre-crisis and post-crisis CLOs. The post-crisis CLOIE added US$8.4bn from 101 tranches across 18 deals at the June rebalance.

    JPMorgan CLO analysts note that CLOIE was not immune .......

    News Round-up 2 July 2015

  • US CLOs becalmed

    The US CLO BWIC market remains becalmed as the holiday weekend hoves into view.

    Macro concerns are still keeping the majority of participants on the secondary CLO sidelines and now many traders are also away in advance of the end of the holiday shortened week. Consequently already thin market liquidity has thinned still further and supply continues to be sparse .......

    SCIWire 1 July 2015

  • Euro secondary stable

    The European securitisation secondary market remained stable yesterday amid the varying Greece headlines and is holding firm for now ahead of further news from the ECB later today.

    Yesterday once again saw very light flows as the majority of both buyers and sellers remain content to sit out the wider market volatility. Consequently, spreads were broadly unchanged on the day.

    SCIWire 1 July 2015

  • Waiting game for US CLOs

    US CLO secondary market continues to wait for risk aversion to subside and activity to pick up.

    "There's nothing going on again today," says one trader. "We just sit and wait with no clear direction for the market."

    The trader continues "The only signifier of any kind I see right now is that primary deals are getting their triple-Bs subscribed .......

    SCIWire 30 June 2015

  • Euro secondary stays calm

    Tone continues to be weak across European securitisation secondary, but the market has remained calm.

    "Not much happened yesterday - as broader markets headed down volumes in ABS/MBS were very thin," says one trader. "Peripherals were better offered in the Street, but there was no panic selling from customers."

    Indeed, the trader adds: "There was very little customer activity at .......

    SCIWire 30 June 2015

  • US CLOs keep quiet

    The US CLO secondary market is sticking to the pattern seen at the end of last week.

    With wholesale selling continuing to remain absent as today wears on in the European securitisation markets, US CLO secondary for this morning at least is staying as quiet as it did on Friday. Events in Greece combined with a heavy new issue pipeline .......

    SCIWire 29 June 2015

  • Euro secondary hesitates

    The European securitisation secondary markets are making a hesitant start following the weekend's events surrounding Greece.

    For now at least, participants are holding off any real trading activity until there is a clearer idea of where pricing levels should now be. While the market tries to find a firmer footing few prices are being shown.

    Those that are unsurprisingly reflect .......

    SCIWire 29 June 2015

  • US CLO secondary supply stutters

    After a week of steady supply the US CLO BWIC market has stuttered to a halt today.

    Four days of poor liquidity across the US CLO secondary market has taken its toll, with sellers finally staying away today. The high percentage of DNTs seen earlier in the week continued into yesterday with buyers content to stay on the sidelines as .......

    SCIWire 26 June 2015

  • Euro secondary stalemate

    The European securitisation secondary markets remain in stalemate as uncertainty over Greece and a consequent risk-off attitude pervades.

    Secondary spreads remained unchanged yesterday on the back of very limited liquidity and only some isolated small pockets of flow trading. Equally, the flurry of BWICs yesterday saw covers lower than earlier in the month for similar assets and a significant number .......

    SCIWire 26 June 2015

  • Valuations team beefs up

    MountainView IPS has added Alvin Hsu in a vp role and Alex Kolesnikoff in a senior analyst role. The two hires fill vacant positions while addressing a strategic plan to enhance the company's valuation processes and expand into new asset classes.

    Hsu joins MountainView IPS with over 10 years of experience in structured products and credit markets. He previously spent .......

    Job Swaps 25 June 2015

  • US RMBS slows further

    Activity in the US non-agency RMBS secondary market has slowed still further after last week's dip in volume.

    "As is the case with other sectors, it's been very slow this week and today there is barely over $300m current face in for the bid - extremely low for a Thursday," says one trader. "It seems we've hit full summer a .......

    SCIWire 25 June 2015
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