CLOs

  • US CLOs still going strong

    US CLO secondary market is still going strong with the BWIC pipeline growing and paper trading well.

    "BWICs are continuing to trade very well," says one trader. "Many bonds are going through right at par or just above."

    The trader attributes this to the relative value the sector offers. "Right now, CLOs seem to be offering the best opportunities rating .......

    SCIWire 18 May 2015

  • US CLO performance stable

    US CLO performance remained stable in 1Q15, according to Fitch's latest index results for the sector. Only one newly defaulted name, Quicksilver Resources, was held by one CLO at the end of the quarter.

    While several leveraged energy issuers filed for bankruptcy or initiated debt restructuring in the beginning of the second quarter, CLOs tracked by Fitch's index are minimally impacted. The .......

    News Round-up 15 May 2015

  • SME hybrid touted

    The European Covered Bond Council (ECBC) has unveiled a plan to create instruments to finance SME lending, in response to the European Commission's Green Paper on Building a Capital Market Union. The proposed instruments are called European Secured Notes (ESN) and blend covered bond and securitisation techniques.

    The ECBC has proposed two kinds of ESNs: an on-balance sheet format that .......

    News Round-up 14 May 2015

  • LMA voices STS concerns

    The LMA has responded to a number of criteria proposed by the EBA and BCBS/IOSCO for identifying simple, transparent and standardised (STS) securitisations, as well as a number of criteria put forward in the delegated acts of Solvency 2. The response states that the current proposals, if implemented, would exclude managed CLOs from being able to qualify as STS securitisation largely .......

    News Round-up 14 May 2015

  • Euro CLOs keep momentum

    The European CLO secondary market is maintaining its positive momentum in the 2.0 space, though that could change.

    "2.0 paper continues to trade well on- and off-BWIC with double- and triple-Bs continuing to be the most active part of the stack," says one trader. "There's still strong demand for CLO paper more broadly as shown by another new deal pricing .......

    SCIWire 14 May 2015

  • Libor floor trade mooted

    CLO equity investors can sell long-dated Libor floors matching those embedded in CLO asset portfolios to monetise the time value in such embedded options. With a Fed hike possible this year, now may be the time to act.

    A Fed hike before the end of the year is increasingly expected, which could move Libor floors quickly out-of-the-money. Selling the floors .......

    News 14 May 2015

  • SME CLO approach back-tested

    Scope says that previous application of its new SME CLO rating methodology (SCI 7 May) would have allowed for higher rating stability for senior European SME CLO tranches through the period from 2007 to 2014. The agency believes its approach would have created less rating migration and subsequently reduced rating volatility through this period of severe financial stress.

    Scope tested its current rating methodology .......

    News Round-up 14 May 2015

  • Fund manager taps CLO pro

    Lucy Panter has joined Oak Hill Advisors as a senior analyst. She arrives from GoldenTree Asset Management, where she was responsible for oversight of the firm's European CLOs. Panter has also held roles at P. Schoenfeld Asset Management and Goldman Sachs.

    .......

    Job Swaps 14 May 2015

  • US CLOs back to life

    The spike in activity in the US CLO secondary market over the past few days is showing ever more signs of being sustainable. At least for as long as concerns over new issuance persist.

    "Everything has come back to life - secondary is the busiest it's been for more than a month," says one trader. "It was very busy yesterday .......

    SCIWire 13 May 2015

  • US obligor investment 'credit positive'

    Moody's reports that European CLO 2.0s are buying significant amounts of euro-denominated US speculative grade debt, which is credit positive for both European CLO 2.0 deals and the US obligors. US obligors now constitute around €1.5bn, or 12.7%, of total par in 30 European CLO 2.0s that the agency rates.

    The exposure to US obligors varies significantly by deal, ranging .......

    News Round-up 13 May 2015

  • Euro secondary liquidity on the rise

    European securitisation secondary market liquidity is continuing its rise this week.

    "There's more activity this week than last overall," says one trader. "With more and more trades getting done off-BWIC."

    While market tone remains broadly positive, some areas are softer than others. "There is some weakness in peripherals," notes the trader. "That's particularly true in Portuguese names, where, for example, .......

    SCIWire 13 May 2015

  • US CLOs see more supply

    The US CLO secondary market is at last seeing more serious sellers return to market.

    "It's busier today but not a busy Tuesday by any means," says one trader. "We're seeing about $490m current face in for the bid today with good distribution across the capital stack."

    Overall, the trader adds: "There's a little bit more serious selling than we've .......

    SCIWire 12 May 2015

  • Euro CLO appetite undiminished

    The European CLO secondary market is continuing to see strong demand despite broader market volatility and increasing prices.

    "Even with what's going on in the sovereign markets we haven't seen appetite go away," says one trader. "The position remains the same - severe lack of assets and a lot of buyers."

    The trader continues: "Demand for 2.0 debt has increased .......

    SCIWire 12 May 2015

  • US CLOs pick up

    Activity in the US CLO secondary market looks to be picking up.

    "Activity picked up at the end of last week and looks to be doing the same this week," says one trader. "We're seeing paper from all parts of the structure in for the bid and given the recent lack of supply most BWICs are likely to be well-received."

    SCIWire 11 May 2015

  • Slow return for European secondary

    European securitisation secondary markets look set to return to life this week, but progress is slow.

    Wider market positivity on the back of the UK election and US non-farm payrolls has improved the tone in European ABS/MBS secondary markets. However, spreads remain broadly unchanged for now as activity is only slowly picking up again.

    Many buy-side participants are still sitting .......

    SCIWire 11 May 2015

  • CLO risk retention approaches vary

    US CLO managers will continue to actively issue CLOs while meeting upcoming risk retention requirements through a wide range of approaches, according to a Fitch risk retention survey. In addition to multiple approaches being considered, half of the CLO managers surveyed stated that they plan to vary their approach on a deal-by-deal basis.

    Most of the polled managers are considering .......

    News Round-up 7 May 2015

  • SME CLO approach confirmed

    Scope has finalised its methodology for rating SME CLOs. The agency's original proposals have not been modified following its earlier call for market comments (SCI 12 March).

    Among the features of Scope's methodology is an incorporation of wider factors in assessing its rating cap that go beyond the credit assessment of a sovereign. These factors include macroeconomic development, institutional meltdown .......

    News Round-up 7 May 2015

  • Euro secondary mixed

    European secondary securitisation markets are seeing a mixed tone amid continuing low volumes.

    Volumes were light again yesterday though a few more BWICs joined the schedule as the day wore on and there is a considerable increase in lists circulating for trade today. Prime assets remain the strongest ABS/MBS sector across autos and UK and Dutch RMBS, while CLOs continue .......

    SCIWire 7 May 2015

  • US CLO activity drops

    Activity in the US CLO secondary market has dropped again this week and looks set to stay that way for now.

    "It's very, very quiet at the moment - volumes have dropped by more than half in the last week or so and currently feel like they're dipping further," says one trader. "The broad themes that have made CLOs a .......

    SCIWire 6 May 2015

  • Euro liquidity hampered

    Broader market volatility combined with a holiday shortened week continues to hamper liquidity across European secondary securitisation markets.

    Yesterday saw another quiet day in European secondary with low volumes on- and off-BWIC. However, yesterday's Italian BWIC did trade reasonably well.

    Overall, spreads remained unchanged to slightly wider as market sentiment continued to soften on macro news. CLO paper remains the .......

    SCIWire 6 May 2015

  • Key persons replaced

    Blackstone/GSO Debt Funds Europe has confirmed a couple of key-person replacements with respect to Habourmaster CLO 9. The firm says that Debra Anderson and Mark Moffat ceased to be involved in the daily and managerial activities of the collateral manager on 31 December 2012 and 15 April 2015 respectively.

    Pursuant to the collateral management agreement, if any two key persons .......

    Job Swaps 6 May 2015
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