CLOs

  • Trustee enhances online platform

    US Bank Global Corporate Trust Services has enhanced its online platform, Pivot, by expanding access to CLO managers that outsource middle office services. The platform will attempt to help these clients gain cost efficiencies and improve the process of managing their loan portfolios.

    US Bank's middle office group expects to grow its presence as a result of this upgrade. The .......

    News Round-up 16 June 2015

  • Euro secondary quiet

    With the Barcelona conference getting fully underway today it is expected to be very quiet in the European securitisation secondary markets over the next couple of days.

    The participants that remain at their desks are likely to maintain the risk-off stance of the past week as Greece and broader credit market volatility continue to dominate attention. However, there is one .......

    SCIWire 16 June 2015

  • US CLOs still seeing sellers

    In the face of expected limited liquidity for the bulk of this week the US CLO secondary market is already seeing a healthy number of line items in for the bid.

    Despite Barcelona and the swathe of DNTs on last week's heavy auction schedule the US CLO BWIC calendar is already growing for this week. For the most part the .......

    SCIWire 15 June 2015

  • US CLOs winding down

    The US CLO secondary market is winding down after a busy week.

    As expected, yesterday's CLO BWICs saw a high proportion of DNTs with reserves not met thanks to reduced liquidity. At the same time, there was a high amount of line items where no colour was released.

    Nevertheless, there were a few buyers in evidence and some bonds did .......

    SCIWire 12 June 2015

  • US CLOs thinning

    The US CLO secondary market is continuing to see heavy BWIC volumes but liquidity is thinning.

    "It's very busy this week in terms of BWICs despite Barcelona next week, quarter-end and rate moves," says one trader. "But because of those three factors the market is thinner with fewer guys bidding on bonds and the bid-ask has widened significantly."

    As a .......

    SCIWire 11 June 2015

  • Euro CLOs soften

    The European CLO secondary market is seeing prices soften as summer hoves into view.

    "In common with other markets, we're a little bit weaker," says one trader. "It's in 1.0s chiefly, but even there double-Bs, for example, haven't seen a dramatic move - just a couple of points. In 2.0s the weakness is most evident in double- and single-Bs but .......

    SCIWire 11 June 2015

  • Extension provisions scrutinised

    Loan amend-and-extend (A&E) provisions are a common feature of CLO 2.0 deals and are structured in various ways. But Moody's notes that if they could potentially result in a CLO portfolio's WAL exceeding the initial WAL test level or cause long-dated asset (LDA) exposure, the agency will conduct stress scenarios that may result in lower ratings being assigned.

    Some recent .......

    News Round-up 11 June 2015

  • ABS fund manager named

    Amundi Asset Management has recruited Francois Morin as senior portfolio manager of the Amundi ABS Fund. He arrives from Natixis, where he was head of European ABS and CLO trading. Morin has also held various positions in CDC Ixis Capital Markets' credit risk department.

    .......

    Job Swaps 10 June 2015

  • CLO manager brought in

    Pim van Schie has joined Neuberger Berman as svp and portfolio manager on its floating rate loans team. He will primarily focus on the continued expansion of the firm's CLO business, in addition to helping build a strategy platform centered on investing in CLO liabilities.

    Prior to joining Neuberger Berman, Schie was an executive director within CLO banking at Morgan Stanley. Before .......

    Job Swaps 10 June 2015

  • US CLOs pick up

    Volumes in the US CLO secondary market have picked up today and focus continues its shift towards senior paper.

    "The market has really picked up today after a typically quiet Monday and a low to medium week last week," says one trader. "At the same time, focus has moved to the top of the capital structure."

    The trader continues: "There .......

    SCIWire 9 June 2015

  • Spanish legal exceptions highlighted

    Scope believes that the new Spanish corporate finance promotion law (Ley 5/2015 de fomento de financiación empresarial) governing changes to corporate financing allows for more flexible financing of Spanish SMEs and, in certain cases, may positively affect their creditworthiness. The main purpose of the new law is to promote financing of Spanish SMEs by making it both more accessible and .......

    News Round-up 9 June 2015

  • Euro secondary stabilises

    After a week of softening and amid continued broader market volatility the non-peripheral European securitisation secondary markets stabilised yesterday and have opened unchanged this morning.

    "It was a bit more active yesterday and the market appears to have stabilised," says one trader. "We saw two-way flows in quite a few sectors, though mainly in prime paper - from autos, to .......

    SCIWire 9 June 2015

  • US CLOs diverge

    The US CLO secondary market continues to move along at a decent pace, but a divergence in vintages at the top of the stack is a appearing.

    "The market continues to be fairly busy and we're seeing reasonably good demand in post crisis bonds," says one trader "However, there is less in pre-crisis paper."

    Notably, the trader adds: "We've seen .......

    SCIWire 8 June 2015

  • CLO benchmark indices launched

    Palmer Square Capital Management has teamed up with the NYSE to launch two new indices designed to benchmark the CLO markets. The Palmer Square CLO Debt Index and Palmer Square CLO Senior Debt Index are the first broadly distributed daily benchmarks for US dollar-denominated CLOs backed by broadly syndicated leveraged loans.

    Palmer Square's CLO Debt Index is a rules-based observable .......

    News Round-up 8 June 2015

  • CLO origination head appointed

    Peter Melichar has joined Jefferies as head of European CLO origination. He moves from Maybird, where he was md, involved in fundraising, investor relations, and merger and acquisition advisory.

    Melichar has held a number of roles related to CLOs, including working in origination and structuring in European CLOs for Deutsche Bank and trading European CLOs as vp at SG. He has also .......

    Job Swaps 5 June 2015

  • CLO compression trades touted

    US CLO triple-A tranches are lagging the spread compression in the CLO credit curve as the loan market increasingly trades above par, creating fundamental value. However, JPMorgan CLO analysts point to the trade-off of carry versus convexity as prices rise.

    "High coupon triple-As - such as new issue or 2.0 - could be a more defensive play, with more price protection in a spread widening environment, all .......

    News 4 June 2015

  • Asset finance pro rejoins bank

    Credit Suisse has rehired Vaibhav Piplapure as md to run its European asset finance business. He joins the bank after working in asset management for KKR. Prior to this, Piplapure was head of structured and illiquid credit at Avoca Capital, as well as head of global credit solutions and European asset finance for Credit Suisse in his first stint at the .......

    Job Swaps 3 June 2015

  • CLO indicators remain sound

    Moody's has published an inaugural report that aims to provide a 360-degree view of the US CLO market and its 1Q15 performance by analysing macroeconomic and financial market conditions, high yield corporate sector trends and credit conditions that correlate with credit quality. The report forms part of a new framework for tracking the aggregate performance of US CLOs and assessing whether .......

    News Round-up 3 June 2015

  • 'Unique' SME CLO touted

    GIAC Gestion's recent cashflow CLO is an example of a viable way forward for European SME CLOs in the context of increased bank disintermediation in Europe, suggests Moody's. GIAC OLT II is backed by bonds issued by French SMEs and mid-caps.

    "GIAC OLT II illustrates how securitisation can finance SMEs and mid-caps without the direct involvement of an originating bank .......

    News Round-up 3 June 2015

  • Rewriting the rules

    Spanish law change boosts securitisation

    Spanish legislators have adopted a new securitisation law, bringing the market more in line with the rest of Europe (SCI 28 April). While the changes are positive and should boost the Spanish ABS market, change on a broader level is also required.

    "The new law 5/2015, published on 28 April 2015, explicitly acknowledges the key role in funding that the .......

    News Analysis 3 June 2015

  • US CLOs slow

    The US CLO secondary market is experiencing a slow start to the month.

    "It's very slow this week so far with not a lot of volume in the calendar for the days ahead," says one trader. "It feels like the continuation of the recent pattern of declining BWIC volumes - $10bn in April, then $6.5bn in May - and follows on .......

    SCIWire 2 June 2015
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