CLOs

  • Euro secondary closes quietly

    European secondary securitisation markets continue to remain insulated from broader market volatility and after a busy week look set to close it out quietly.

    BWIC activity dominated across the board yesterday with bilateral trading taking a back seat. The majority of ABS, CLOs and MBS on lists saw strong execution once more.

    Today's European auction schedule is considerably quieter with only .......

    SCIWire 20 February 2015

  • US CLOs slow down

    After a busy couple of days, activity in the US CLO secondary market has slowed today.

    "There's still a bit of activity today, but things are on the slower side," says one trader. "Nevertheless, bonds are likely to continue to trade well and the tone remains positive."

    There is no main reason for the quieter day today, the trader suggests. .......

    SCIWire 19 February 2015

  • Euro CLOs keep coming

    Today sees another healthy chunk of European CLOs in for the bid.

    Yesterday again saw strong BWIC execution levels across the vast majority of bonds on offer. Today, the market is already scheduling another three lists including a mixed list at 15:00 that also includes two CRE CDO tranches.

    The line 15:00 list consists of: €3m CADOG 4X E, €3m .......

    SCIWire 19 February 2015

  • US CLOs on the up

    Activity is picking up in US CLO secondary today with a strong bid for the right deals.

    "There are a lot of lists out today, primarily revolving around the triple-B to double-A sector," says one trader. "Bids are aggressive, especially for what most buyers are really looking for to achieve some price delta over the next few sessions - the .......

    SCIWire 18 February 2015

  • EMEA losses better US rate

    The estimated total losses from European securitisation bonds are small relative to those of the US, according to Fitch. Total losses on Fitch-rated EMEA securitisations issued from 2000 to 2014 are expected to be 0.7%, compared to 4% globally.

    Fitch says that a breakdown of the overall figures provides further evidence that securitisations have not performed as a homogenous investment .......

    News Round-up 18 February 2015

  • Euro secondary remains robust

    European secondary securitisation markets are staying robust despite continuing broader volatility around Greece.

    "The ABS/MBS market is strong," confirms one trader. "The core space continues to grind tighter and it's almost impossible to buy paper - the UK and euro is extremely well bid. At the same time, peripherals are unchanged to slightly better."

    Overall, ABS/MBS flows are increasing, albeit .......

    SCIWire 18 February 2015

  • US CLOs strengthen

    The US CLO secondary market has returned from the Vegas conference and yesterday's public holiday with a strengthening tone.

    "New issue spreads are tightening thanks to the demand for risk retention structures and with that people are scrambling for paper in secondary, particularly at the top end of the stack," says one trader. "Bonds are now scarce as it seems .......

    SCIWire 17 February 2015

  • Share issuance completed

    Fair Oaks Income Fund has raised approximately US$39.7m - before costs and expenses - through the issue of 40 million new ordinary shares (SCI 10 February). Admission of the new shares to the London Stock Exchange's Specialist Fund Market is scheduled for 19 February. As a result of the issue, the company's issued share capital will consist of 161,898,362 ordinary .......

    Job Swaps 16 February 2015

  • Euro CLO BWICs building

    The auction calendar for European CDOs/CLOs is building strongly for this week.

    Increasing secondary CDO/CLO activity in most sectors and parts of the capital structure was seen last week and is now being reflected in the BWIC schedule. There are currently six lists containing 37 European bonds due for trade this week.

    The only auction scheduled so far for today .......

    SCIWire 16 February 2015

  • Euro ABS/MBS returns to form

    After an up and down week in terms of activity the European ABS/MBS secondary markets have returned to form.

    Flows across the secondary market increased yesterday in both bilateral trades and BWICs as lists were added throughout the day. Most names saw strong trading levels and that positive tone has extended into this morning.

    The recent favourite sectors continued to .......

    SCIWire 13 February 2015

  • CLO demand capacity gauged

    Amid slower origination levels and a fading legacy CLO bid, CDO strategists at JPMorgan have updated their CLO reinvestment model to project global CLO liquidity over the next few years. They forecast US$524bn in demand capacity from both US and European CLOs in 2015-2016 combined.

    The JPMorgan reinvestment model brackets the universe into four groups by reinvestment period and calculates .......

    News 12 February 2015

  • Static Euro CLO debuts

    The first static CLO 2.0 deal has been placed on the European market. The €233.4m Bosphorous CLO I is a transaction managed by Commerzbank Debt Fund Management and co-arranged by Sterne Agee & Leach and Sterne Agee UK.

    The deal is the debut CLO for Commerzbank, with the loan assets being sourced from its Bosphorus Capital vehicle. The portfolio comprises .......

    News Round-up 10 February 2015

  • Fair Oaks to tap demand

    Fair Oaks Income Fund reports that in light of the current pipeline of investment opportunities and a new investor commitment of at least US$21m, it is making additional new ordinary shares in the company at an issue price of US$0.9932. Fair Oaks believes that issuance of new shares is in the interests of shareholders as it will further enlarge the .......

    Job Swaps 10 February 2015

  • BDC equity purchasing eyed

    BDCs owned almost US$3bn of CLO equity at end-3Q14, approximately US$2.5bn of which is owned by just five vehicles, according to Wells Fargo data. Structured product strategists at the bank warn that the ability of certain BDCs to purchase more CLO equity may be limited, which is one driver behind the decrease in CLO equity demand so far in 2015.

    News 9 February 2015

  • CLO transfer anticipated

    Jefferies Finance is set to transfer its responsibilities as portfolio manager for JFIN CLO 2013 and JFIN CLO 2012 to Apex Credit Partners. The transfers aren't expected to cause the downgrade or withdrawal of the current Moody's rating assigned to the class A notes issued. In reaching its conclusion, Moody's considered the experience and capacity of Apex Credit Partners to .......

    Job Swaps 9 February 2015

  • Euro secondary mixed

    Last week's positive tone across European secondary has followed on into this for most deal; types and jurisdictions, but there are some exceptions.

    Dutch and UK prime, UK non-conforming and Italian RMBS continue to be better bid. At the same time buy-side demand for CLOs is on the rise across the capital stack.

    Conversely, Greek paper continues to be impacted .......

    SCIWire 9 February 2015

  • Euro SME CLOs outperforming

    Fitch reports that European SME CLOs are showing better asset performance than originating banks' loan books, albeit this performance may be distorted by the repurchase or refinancing of delinquent and defaulted loans or by positive selection common in collateral portfolios.

    The number of 90 to 360 days delinquencies as of end-3Q14 across Italian, Portuguese and Spanish SME CLOs averaged 2.9% .......

    News Round-up 6 February 2015

  • Quality considerations

    Concentration risk has resurfaced in the legacy European CLO space, following a recent spate of optional redemption notices, coupled with high repayment rates for non-called deals. Based on an analysis of the sector, European securitisation analysts at Bank of America Merrill Lynch note that a minority of transactions now only have a small number of assets left in their portfolios.

    News 6 February 2015

  • CLO pricing to reflect sector views?

    Energy-related credits continue to diverge from loan index returns, in conjunction with the drop in oil prices. With increased attention being paid to sectors, JPMorgan CDO strategists examined a sample of US post-crisis CLO exposures across 21 sectors as categorised by the JPMorgan leveraged loan index.

    The sample comprised 461 deals totalling US$217bn in assets. The analysis shows that healthcare, .......

    News 5 February 2015

  • CLO par building examined

    A Wells Fargo analysis of US and European post-crisis CLOs indicates that the 2012 vintage has posted the highest average quarterly increase in equity par NAV and minimum OC cushion. The data also shows that 2013 broadly-syndicated loan CLOs have built less par per period than 2014 CLOs.

    "We believe that a combination of loan market technicals and CLO issuance .......

    News Round-up 4 February 2015

  • US CLOs continue double-B focus

    US CLO secondary activity continues to lean toward double-B paper in both 2.0 and 1.0 form.

    "We're seeing a continued flurry of 2.0 double-Bs on BWIC today and tomorrow," says one trader. "And we've got the same theme going on around them of sector tiering particularly with regard to energy exposure, but there's also now some healthcare impact."

    The trader reports .......

    SCIWire 3 February 2015
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