CLOs

  • Euro ABS/MBS static

    The European ABS/MBS secondary market remains quiet but well-supported.

    "Secondary ABS/MBS is still static and very quiet post-Easter," says one trader. "Levels are pretty much unchanged and despite the Street feeling long they appear well-supported."

    The primary market is also dragging attention away from secondary trading. "There is a lot of investor interest focused on new issues including the latest .......

    SCIWire 14 April 2015

  • Flicker of life in US CDO/CLO BWICs

    The US CDO/CLO BWIC calendar is flickering into life for tomorrow.

    After a relatively quiet week last week it's another quiet day on- and off-BWIC in the US CLO/CDO secondary market today. However, a small BWIC pipeline is gradually building for tomorrow, albeit with little visible after that for the remainder of the week.

    There are currently four BWICs on .......

    SCIWire 13 April 2015

  • Euro secondary stays slow

    The light BWIC volumes seen in European securitisation markets throughout the much of the Easter holidays look set to continue into today.

    It was a quiet day on- and off-BWIC on Friday with spreads for the most part unchanged and a similar pattern appears to be forming at today's open. CLOs, Dutch and UK prime continue to garner the most .......

    SCIWire 13 April 2015

  • Slow end for US CLOs

    Today looks set to be a slow end to a slow week for the US CLO secondary market.

    "It's been a slow week in terms of both trading activity and the sizes going through," says one trader. "However, it's not entirely unexpected - after the rush through the door at the end of March for quarter-end it was always going .......

    SCIWire 10 April 2015

  • Loan subsidiary launched

    TIAA-CREF has launched Churchill Asset Management, a new majority-owned subsidiary focused on originating, underwriting and managing senior loan investments, primarily in US middle-market companies. The new venture will focus on investment opportunities through various vehicles designed to meet the needs of institutional and qualified investors, including CLOs, co-mingled funds and separately managed accounts.

    Churchill will operate as a standalone business, .......

    Job Swaps 10 April 2015

  • Euro secondary flow holds sway

    The European secondary securitisation market is currently focused on flow trading.

    Securitisation markets are continuing to move independently of the rally in broader markets. Instead, spreads are being driven by technicals amid healthy if patchy flow trading.

    Autos, CLOs, CMBS, UK non-conforming, UK and Dutch prime are all either tighter or staying firm this week thanks to continued investor demand .......

    SCIWire 10 April 2015

  • Euro CLO demand surges

    Off-BWIC activity in the European CLO secondary market has surged.

    "Demand has been and continues to be very, very strong in both 1.0 and 2.0 paper," says one trader. "There is virtually no supply from primary or secondary, but investors across the board are still looking to buy euro CLOs in volume."

    As a result, the trader says: "We've been .......

    SCIWire 9 April 2015

  • Originator 'loophole' eyed

    The Bank of England and the ECB have expressed concern over a "loophole" in the originator definition of the CRR. The comments are included in their joint response to the European Commission's consultation on a framework for simple, transparent and standardised securitisation (SCI passim).

    In response to the EC's question about whether elements of the current risk retention rules should .......

    News Round-up 9 April 2015

  • Slow supply for US CLOs

    The US CLO secondary market is currently experiencing a drop in activity.

    "It's relatively slow right now," says one trader. "We're not seeing much supply from BWICs and there are only a few new deals being worked on."

    At the same time, the trader adds: "People don't seem to be grabbing for bonds in the same was as they were .......

    SCIWire 7 April 2015

  • Bouncing back

    The US CLO equity market is rebounding from a spate of volatility. Regulatory changes are squeezing out short-term players, while reduced issuance has helped improve loan pricing and structuring.

    David Wishnow, a principal at Tetragon, says that the recent volatility was perpetuated by investors buying CLO equity in search of short-term gains, as opposed to underwriting the exposure. "With the .......

    News 7 April 2015

  • Quiet start for European secondary

    It looks set to be a reasonably quiet start for European secondary securitisation markets after the long weekend, but the overall tone remains positive.

    Broader credit has started the week strongly and secondary ABS/MBS spreads have opened this morning unchanged on last Thursday's broadly firm levels. Unsurprisingly this week's European BWIC calendar is currently very limited with only two small .......

    SCIWire 7 April 2015

  • US CLOs heading tighter?

    The US CLO secondary market remains busy on the last trading day of the week, but is taking its cues from new issue activity.

    "Secondary tone remains very positive as we look towards primary for direction," says one trader. "The Carlyle print showed tightening and I think the market is getting increasingly concerned about the lack of new issue loans, .......

    SCIWire 2 April 2015

  • Post-crisis CLOs still outperforming

    The total amount of CLOs paid down in JPMorgan's CLO index (CLOIE) between the February rebalance and end-March was US$1.46bn in par outstanding, split between US$1.12bn and US$340m of pre-crisis and post-crisis CLOs. The post-crisis CLOIE added US$8bn with 114 tranches from 18 deals at the March rebalance.

    Last month, the CLOIE experienced positive returns across all tranches, led by .......

    News Round-up 2 April 2015

  • Euro BWICs busy

    European secondary securitisation markets are closing out the holiday shortened week with a busy BWIC calendar.

    "The market is continues to be generally positive, though we've mostly traded sideways this week," says one trader. "Flows have primarily been from BWICs and today looks to be the same and a busy one going into the Easter break."

    Today's current BWIC schedule .......

    SCIWire 2 April 2015

  • US CLOs remain robust

    The US CLO secondary market remains robust in the face of continuing supply.

    "Secondary spreads are holding firm across the board as both BWIC and primary supply keeps coming," says one trader. "For now, people are really only looking to colour on the macro level as the likely destabiliser."

    The BWIC calendar remains heathy despite the holiday shortened week and .......

    SCIWire 1 April 2015

  • Euro CLOs on the rise

    Euro CLO secondary activity is on the rise though BWIC volumes remain limited.

    "Activity has picked up quite a bit over the last few days," says one trader. "Pretty much all 2.0 paper is in demand and there isn't enough supply."

    At the same time, the trader says: "Demand also continues for 1.0 at the triple-B and under level, but .......

    SCIWire 1 April 2015

  • Broadening the field

    Diverse issuance signals deepening primary market

    The European securitisation market has witnessed an influx of diverse primary issuance in recent weeks. Supply has bumped Q1 volumes up by nearly 50% over the same period last year and underlines the increasing depth of the sector.

    Notable recent transactions include Australian RMBS, UK buy-to-let RMBS, Dutch RMBS, Italian consumer ABS, Portuguese future flow ABS, European CLOs and the .......

    News Analysis 1 April 2015

  • US CDO/CLO BWIC flurry

    Secondary US CDO/CLO volumes are down this week, but a flurry of BWICs has emerged for trade today and tomorrow.

    "Due to quarter-end, trading is lighter this week, but a bunch of BWICs have popped into the schedule for today and tomorrow," says one trader. "Despite the timing they're seemingly real, not pricing exercises, and so are expected to trade."

    SCIWire 31 March 2015

  • Zohar fraud charges filed

    The US SEC has charged Lynn Tilton and her Patriarch Partners firms of hiding the poor performance of loan assets in three CLO funds they manage. The Commission claims that the accused breached their fiduciary duties and defrauded clients by failing to value assets using the methodology described to investors in offering documents for the CLO funds, which have portfolios .......

    Job Swaps 31 March 2015

  • US CLOs hold firm

    US CLO secondary spreads are holding firm despite strong new issuance activity. However, activity levels look set to be down this week.

    "Focus is on new issuance so secondary trading is pretty quiet, though we are seeing some lists on the back of primary purchases," says one trader. "With quarter-end and school holidays combined with not a lot of vol .......

    SCIWire 30 March 2015

  • Equity investment disclosed

    Fair Oaks Income Fund has acquired, in the primary market, US$19m notional of the equity notes issued by Arrowpoint CLO 2015-4. The acquisition represents 56% of the transaction's total equity.

    Managed by Arrowpoint Partners, the CLO's current target portfolio has a principal value of US$400m across an expected 174 unique bank loan issuers, with an expected weighted average exposure per .......

    Job Swaps 30 March 2015
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