CLOs

  • Europe's waiting game continues

    It's still an ECB waiting game in European secondary markets but sentiment remains positive.

    "It's still mainly about waiting on some ECB action tomorrow," says one trader. "But sentiment is good, albeit on quite thin flows, so we're seeing a continuation of the tightening trend especially in UK and Dutch prime."

    UK non-conforming RMBS is also continuing to attract interest, .......

    SCIWire 21 January 2015

  • US CLOs steady

    The US CLO secondary market is making a steady start to the week.

    "It's fairly quiet so far as it's a holiday week," says one trader. "Away from the oil and gas heavy deals things seem to be trading reasonably well."

    However, the BWIC schedule is beginning to build for the next few days. As was the case last week .......

    SCIWire 20 January 2015

  • Europe stays quiet

    Ahead of the ECB meeting and Greek general election European secondary markets have, as expected, remained for the most part quiet through yesterday and into today.

    Yesterday's BWICs all traded with reasonable participation, but again today the schedule is limited, with only a three line Granite mezz list and a 100,000 piece of Arkle in the ABS/MBS space currently doing .......

    SCIWire 20 January 2015

  • Spanish SME CLOs to re-emerge

    Scope believes that favourable conditions for a revival of placed Spanish SME CLOs are re-emerging. The significant decrease in spreads demanded for investment grade tranches allows for economically viable transactions again, the agency suggests.

    "Scope expects that the return of investors interested in the real economy may reactivate the public issuance of Spanish SME securitisations intended for placement rather than .......

    News Round-up 19 January 2015

  • Europe awaits ECB again

    European secondary spreads ground tighter into the end of last week amid positive sentiment and lighter volumes than of late. This week looks set to continue that direction and pattern of activity, especially given the US holiday today and anticipation of a QE announcement from the ECB on Thursday.

    The European BWIC schedule for today currently stands at two mixed .......

    SCIWire 19 January 2015

  • US CLOs step off

    US CLO sellers could dominate today as buyers may be harder to find.

    "Yesterday the market pretty much stood its ground, with most US CLOs trading in line with talk," says one trader. "But more broadly, particularly in 2.0 deals, were in a widening environment and today's tone is very much risk off."

    The trader notes that there is relatively .......

    SCIWire 15 January 2015

  • New Volcker fix progresses

    Bill H.R. 37- Promoting Job Creation and Reducing Small Business Burdens Act yesterday passed the House by a vote of 271-154. The bill, which aims to make technical corrections to the Dodd-Frank Act, has the potential - though somewhat low - of eventually becoming legislation and stabilising the US CLO market.

    The passage comes one week after the House first .......

    News 15 January 2015

  • Back to business in European secondary

    The European ABS, CLO and MBS secondary markets have finally fully returned to normality on- and off-BWIC.

    "It's back to business as usual," confirms one trader. "Focus is away from any potential QE announcement next week and there is an acceptance that ABSPP is underwhelming and it's very difficult to trade with the ECB on that - so it's just .......

    SCIWire 15 January 2015

  • Euro BWICs build but flow patchy

    The European ABS, MBS and CLO BWIC schedule is building up a head of steam this week, but flow trading is still intermittent.

    "We saw a few more BWICs yesterday and there was strong execution across deal types - not just prime RMBS, but also in UK non-conforming, CLOs and CMBS," says one trader. "There are more BWICs scheduled today, .......

    SCIWire 14 January 2015

  • Tiers for US CLOs

    The US CLO market is picking up speed, but energy exposure continues to create price tiering.

    "It was quiet again yesterday, but we're seeing a lot more activity today," says one trader. "However, there's no real direction as a lot of people are still sitting on the sidelines waiting to see where spreads clear."

    Levels of energy exposure within CLOs remains .......

    SCIWire 13 January 2015

  • Record CLO issuance tallied

    Last year saw record CLO issuance, with 237 transactions worth US$123.8bn pricing, according to Appleby's latest CLO Insider report. The second half of 2014 saw 121 CLOs price for a total of US$61.8bn, keeping pace with a strong first six months in which 116 CLOs accounted for US$62bn of issuance.

    The average deal size for CLOs priced in 2014 was .......

    News Round-up 13 January 2015

  • Loan trading vet added

    Golub Capital has hired Kenneth Selle as head of loan trading in its broadly syndicated loans group. He will be based in the firm's Chicago office and is responsible for sourcing and trading all broadly syndicated loan transactions.

    Selle has over 28 years of credit investment experience, most recently as md and head trader in Deerfield Capital Management's corporate credit .......

    Job Swaps 12 January 2015

  • Euro CLO pipeline builds

    Amid healthy activity across the capital structure off-BWIC, the European CLO auction pipeline is building up after a very quiet week this week.

    There are already three lists scheduled with the first due at 14:00 London time on Tuesday 13 January. The €8.4m seven line list consists of: CELF 2006-1X C, CORDA 2007-1X C, EUROC VII-X B, HARBM 10X A4, HARBM .......

    SCIWire 9 January 2015

  • CLO index returns forecast

    The total amount of CLOs paid down in JPMorgan's Collateralized Loan Obligation Index (CLOIE) since the last rebalance through 31 December was US$1.9bn in par outstanding, split between US$1.26bn and US$640m of pre-crisis and post-crisis deals respectively. The post-crisis CLOIE saw the addition of US$10.2bn at the December rebalance, comprising 129 tranches from 25 deals.

    Monthly pre-crisis CLOIE returns were .......

    News Round-up 9 January 2015

  • Debut for new CLO team

    Mariner Investment Group has closed the first CLO - a US$502m transaction - to be managed by its newly-created CLO business. The firm hired in November the 13-member corporate credit team of its strategic partner, ORIX USA, to lead the effort.

    The business is co-led by David Martin and Erik Gunnerson, who were co-heads of the leveraged loan and high .......

    Job Swaps 9 January 2015

  • 'Wait and see' for US CLOs

    The US CLO market is continuing to adopt a wait-and-see approach to 2015.

    "There have been a few lists as people test the waters, but not that many," says one trader. "We're not seeing any major moves, the market is still in wait-and-see mode - digesting year-end marks and trying to figure out where to deploy capital or where the .......

    SCIWire 8 January 2015

  • GCM backs new investment manager

    A new global structured products investment management firm, Hollis Park Partners, has launched with significant investment capital from GCM Grosvenor and other institutional investors. Hollis Park was founded by cio and managing partner Troy Dixon.

    "We believe today's environment presents attractive and rapidly changing opportunities across a wide spectrum of structured products, including agency and non-agency mortgage-backed securities, CLOs, CMBS .......

    Job Swaps 8 January 2015

  • Slow start for US CLOs

    US CLOs are starting the year slowly with relatively low levels of activity, but thus far are only slightly impacted by broader market volatility.

    "It's been slow since New Year, but CLOs seem to be holding in despite the volatility elsewhere over the last few days," says one trader. "In primary deals are currently being talked at tighter levels than .......

    SCIWire 7 January 2015

  • Rating error corrected

    S&P has corrected by reinstating its triple-A rating on the Harbourmaster CLO 8 class A1 notes. The agency last month withdrew its rating on the notes due to what it describes as an error.

    .......

    News Round-up 7 January 2015

  • Euro SME CLOs 'stable'

    Fitch says the outlook for European SME CLO asset performance has improved to stable. The Portuguese and Italian markets are the two exceptions, but their outlooks have also improved - to stable/declining and to declining, respectively.

    Despite the declining asset performance outlook for Italian SME CLOs, the rating outlook is stable as Fitch mainly rates the most senior tranches that .......

    News Round-up 7 January 2015

  • Hiring logjam?

    Waiting game leaves recruitment on hold

    Recruitment in the structured finance space remains somewhat stagnant. While market players await regulatory clarity in the US, positive sentiment in Europe is yet to translate into increased hiring activity.

    The European securitisation market has provided a mixture of both disappointment and rational caution in terms of hiring trends, according to one London-based headhunter. "The market may not have picked .......

    News Analysis 24 December 2014
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