CLOs

  • 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

  • Euro ABS/MBS slows

    The European secondary securitisation market appears to be slowing into month- and quarter-end.

    Friday saw a late flurry of activity after a sizeable mixed BWIC went through at 15:00 and drove some activity off the back of it. This went some way to redressing the slightly softer tone that had been emerging in ABS/MBS secondary, albeit without any major spread .......

    SCIWire 30 March 2015

  • Chinese CLOs performing well

    Chinese CLOs have performed well, says Moody's, recording a minimal number of defaults on their underlying loan assets since the market re-opened in May 2012. However, defaults are expected to rise, given that in 2H14 some low quality loans were securitised by originators.

    According to the trustee reports of Chinese CLOs, just two underlying loans, out of an aggregate of .......

    News Round-up 26 March 2015

  • CLO refinancing emerging

    After rapid spread tightening in February, CLO spread levels have stabilised over the last two weeks, says Deutsche Bank. This has prompted refinancing activity to re-emerge.

    Spreads across the investment grade part of the capital structure are now back to where they were in late July and early August of 2014. The double-B rated tranches are also getting close to .......

    News Round-up 26 March 2015

  • US CLOs trade sideways

    Despite maintaining a broadly positive tone the US CLO secondary market is currently trading sideways as oil price concerns are again weighing heavily on the lower part of the capital stack.

    "Overall the market is moving sideways now, but there continues to be manager and sector tiering thanks to the oil price moves," says one trader. "Consequently, the lower part .......

    SCIWire 25 March 2015

  • Euro CLOs relying on natural hedges

    New European broadly syndicated loan (BSL) CLOs increasingly rely on natural hedges, suggests Moody's. The agency says that BSL CLO deal structures increasingly rely on natural hedges against interest rate fluctuations by issuing fixed-rate tranches in amounts that match their expected holdings of fixed-rate assets.

    "All 2014-vintage CLOs have purely euro-denominated liabilities and use perfect asset swaps, or other derivative .......

    News Round-up 25 March 2015

  • Euro ABS/MBS supply keeps coming

    The European ABS/MBS secondary market is continuing to see healthy BWIC supply and to absorb it well.

    "We've seen plenty of supply from BWICs every day this week including today, but secondary ABS tone is still firm," says one trader. "Primary has been active too, but we're seeing no real softening as a result."

    ABS/MBS secondary has also remained insulated .......

    SCIWire 25 March 2015

  • US CLO buyers hold sway

    US CLO secondary tone remains positive as buyers continue to outweigh sellers.

    "The market continues to price things pretty firmly and bid lists are trading well for the most part," says one trader. "We're seeing customer demand for CLO paper including from investors new to the sector."

    While demand remains broad-based there is one area the trader highlights. "Double-As are .......

    SCIWire 24 March 2015

  • Euro CLOs stay firm

    European secondary CLO market activity has dropped from last week, but pricing levels are staying firm.

    "Overall, secondary volume has picked up, but it's a lot quieter this week than last week, which was very, very, busy," says one trader. "However, we're not seeing any softening of pricing levels."

    The shift in activity levels is a reaction to events in .......

    SCIWire 24 March 2015

  • US CLOs refocus

    After a distracted end to last week, the US CLO secondary market is beginning to refocus.

    The combined distractions of the Fed meeting, new issuance activity and 'March Madness' led to a softening of secondary CLO tone if not prices into Friday's close. It's too early to tell whether there is appetite to reignite the rally of recent weeks, but .......

    SCIWire 23 March 2015

  • Euro BWICs pick up again

    The European BWIC calendar is picking up again for today and the remainder of this week.

    As was the case for most of last week BWICs look set to drive activity in secondary today. The bulk of line items on Friday's limited calendar traded in line with expectations and activity across the board on the day was positive but muted .......

    SCIWire 23 March 2015

  • US CLOs quieten further

    US CLO secondary market activity is easing further today after a distracting week.

    "It's been a moderate pace most of the week and it's relatively quiet today," says one trader. "The market has been a little distracted first in anticipation of the Fed and then by new issuance activity."

    Nevertheless, secondary spreads are holding firm. "In particular, double-Bs continue to .......

    SCIWire 20 March 2015

  • Euro secondary cools

    After a busy week the European secondary securitisation markets saw a quieter day yesterday and today looks likely to cool still further.

    Again, the bulk of yesterday's action surrounded BWICs most of which traded in line with expectations. Away from the lists it was major UK RMBS names that saw the most investor interest.

    Today, the tone remains positive, but .......

    SCIWire 20 March 2015

  • Euro secondary flows building

    Two-way flows in the European secondary securitisation market are continuing to build this week.

    "It's been very busy the last couple of days with a lot of BWICs and we're seeing flows building around that," says one trader. "There's been activity in peripherals, SMEs, UK non-conforming, CMBS - across the board really. Overall, the secondary market is continuing to take .......

    SCIWire 19 March 2015

  • Euro primary drives secondary

    The European secondary securitisation markets are being driven by new issuance activity

    "We're taking our direction from the primary market, but secondary tone remains positive," says one trader. "For example, the initial wider guidance on the latest Paragon deal weakened secondary buy-to-let, but the deal priced tighter and then tightened on the break yesterday causing secondary spreads in the sector .......

    SCIWire 18 March 2015

  • US CLO rally keeps rolling

    Despite a robust primary market and a pick-up in secondary activity from with eight BWICs circulating, the US CLO rally is continuing today.

    "It's a very robust market with 2.0 paper in strong demand and we keep seeing new tights," says one trader. "This morning has been no different - for example, on the 9:00 double-B list, ALM 2013-7R2A D .......

    SCIWire 17 March 2015

  • CLO purchasing powered

    Volta Finance has entered into a US$30m repurchase agreement with SG, under which the company has the facility to borrow US$30m that will be collateralised against some of its US dollar CLO assets. The proceeds will principally be used to purchase debt tranches of CLOs.

    The company intends to increase the amount available under similar repo transactions by a further .......

    Job Swaps 17 March 2015

  • Internal transfer for Euro CLOs

    MAN GLG Credit Advisers is set to assign, by way of novation deeds, collateral management responsibilities for three European CLOs to MAN Investments (CH). The affected transactions are RMF Euro CDO IV and V, as well as CLAVOS Euro CDO.

    The novation deeds have received the consent from all parties to the documents. Moody's confirms that the move will not .......

    Job Swaps 17 March 2015

  • Gentle start for US CLOs

    The US CLO secondary market is off to a gentle start this week.

    After last week's sustained strong trading levels held spreads firm across vintages and the capital structure, the US CLO secondary market looks to be easing itself into what could be another busy week. The BWIC calendar is building strongly for tomorrow with six lists already on the .......

    SCIWire 16 March 2015

  • CLO index expands

    JPMorgan has introduced a post-crisis single-B series to its CLOIE index. The bank estimates that this index surveys 80% of the US single-B universe and currently contains pricing information for US$2.2bn in original notional from 221 separate single-B tranches.

    The single-B CLO sub-sector performed well in 2012 and 2013, returning 41.3% and 17.1% respectively, according to the index. However, returns .......

    News Round-up 16 March 2015

  • Mezz CLO fund launched

    AXA Investment Managers has launched a short maturity CLO opportunity fund. The fund aims to offer investors a net total return of 4% to 6% by investing in the vintage US CLO mezzanine universe, while maintaining an investment grade average rating.

    Christophe Fritsch, co-head of securitised and structured assets and head of structuring at AXA IM, says: "The fund was .......

    News Round-up 16 March 2015
×