CLOs

  • 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

  • US CLO trend emerging

    US CLOs are seeing an even quieter day today than yesterday, but there are already signs of a potential trend for next year.

    "Yesterday's list got really good participation," says one trader. "But we're down to a one line list today, so the holidays have finally arrived."

    Today's list is an $8.5m slice of SYMP 2007-3A C due at 11:30 .......

    SCIWire 23 December 2014

  • Solitary CLO list circulating

    Only one US CLO BWIC is currently scheduled for today and reflects the most active sectors of the market last week amid some spread softening - triple-Bs and equity.

    The 13 line list due at 11:00 New York time also falls into line with last week's pattern in that it is small with only $12.575m of original face on offer. .......

    SCIWire 22 December 2014

  • Volcker extension for covered funds

    The US Fed has acted under the Volcker Rule to give banking entities until 21 July 2016 to conform investments in, and relationships with, covered funds and foreign funds that were in place prior to 3 December 2013. The board also intends to act next year to grant banking entities an additional one-year extension of the conformation period until 21 .......

    News Round-up 19 December 2014

  • US CLOs cleaning up

    Today sees another strong BWIC schedule in the US CLO market with five lists already circulating.

    "My sense is today is a lot of cleaning up rather than managed accounts having to sell," says one trader. "I suspect it will be the last full trading day of the year and yes there are number of lists, but total size is .......

    SCIWire 18 December 2014

  • US CLOs stay busy

    Unlike most other securitised markets, year-end is driving business in US CLOs rather than hindering it.

    "We're busy and still seeing people looking to liquidate stuff," says one trader. "Our sense is that that's not a result of macro vol, but just people squaring up portfolios."

    That sense is confirmed by the high proportion of DNTs being seen rather than .......

    SCIWire 17 December 2014

  • European secondary struggles on

    Year-end illiquidity in European secondary markets is being exacerbated by volatility in broader markets.

    "The macro-economic environment isn't helping, but it's very slow anyway," says one trader. "Bid-offers are much wider but there's not a lot of trading, which in one way is good as it means we're not seeing any capitulation - there's no client selling."

    There is however, .......

    SCIWire 17 December 2014

  • Man adds to CLO stable

    Man Group has entered into a conditional agreement to acquire Silvermine Capital Management, the Connecticut-based leveraged loan manager with US$3.8bn of funds under management across nine active CLOs. The acquisition is expected to complete in 1Q15, subject to certain approvals being obtained.

    Silvermine is wholly-owned by the firm's founders and senior staff members. The team of 17 focuses exclusively on .......

    Job Swaps 17 December 2014

  • Testing time for US CLOs

    On- and off-BWIC the US CLO market is currently being tested.

    There has been a surge in BWICs circulating for trade today and tomorrow with 62 line items currently out for bid in that timeframe. However, one trader explains: "The lists are primarily from fast money and they appear to just to be trying to get levels to see just .......

    SCIWire 16 December 2014

  • CLO energy exposure quantified

    WTI oil prices moved below US$60 a barrel last week, with energy sector fundamentals increasingly being called into question. JPMorgan CLO strategists measure broadly-syndicated US CLO exposure to the segment in the context of the JPMorgan loan index, which has a concentration of 4.1% in energy.

    Their findings suggest that US CLOs have slightly less exposure to the energy sector .......

    News Round-up 16 December 2014

  • Euro secondary slows further

    European secondary markets are getting ever closer to a Christmas standstill.

    "It's definitely slowed right down today," says one trader. "There's nothing going on in the Street and no real client activity - there are a couple of BWICs due today, but that's it."

    Spreads have largely stayed steady. However, the trader notes: "On the few BWICs we've seen of .......

    SCIWire 16 December 2014

  • US CLOs tick over

    As trading volumes fade further into year-end across most markets, the US CLO BWIC schedule is still ticking over despite DNTs in the sector picking up last week.

    There are three lists already scheduled for today with tranches from all parts of the capital structure. First is a $20.565m six line equity list due at 10:00 New York time. It .......

    SCIWire 15 December 2014

  • European secondary continues to wind down

    The European ABS, MBS and CLO markets look set for another quiet day today.

    "The markets are coasting as people check out for year end," says one trader. "That combined with continued frustration over the lack of speed of ECB purchases makes for a very quiet market - there are only a couple of BWICs in ABS and CLOs today .......

    SCIWire 12 December 2014

  • CLO squeeze

    Risk retention puts manager consolidation in the spotlight

    CLO manager consolidation is expected to re-emerge as risk retention requirements bed down in the US. However, the process is unlikely to replicate the last wave of consolidation seen in 2010 and 2011.

    Oliver Wriedt, co-president at CIFC Asset Management, believes that CLO manager consolidation needs to occur in some capacity, but questions whether the opportunity is as compelling as .......

    News Analysis 12 December 2014

  • Long/short credit fund launched

    Palmer Square Capital Management has launched the Palmer Square Long/Short Credit Fund, with the objective of achieving absolute returns over a market cycle through a portfolio of long and short credit investments. The fund will primarily invest long and short in corporate bonds, loans, convertible bonds, structured credit (most notably, CLOs) and derivatives.

    "We believe that the fund offers investors .......

    News Round-up 12 December 2014

  • Euro ratings outlook positive

    Fitch says that its rating outlook for European structured finance (SF) transactions is stable, with 86% of its rating outlooks across the region being stable or positive. Performance in the large majority of asset market sectors across the region also has a stable outlook.

    Fitch's expectations for stability for both SF ratings and the underlying asset markets have improved substantially .......

    News Round-up 11 December 2014

  • Large liquidation list circulating

    A 55 line item US structured credit BWIC is circulating for trade at 10:00 New York time tomorrow.

    The $290.4+m list, brought by a CDO liquidation agent, includes ABS CDOs, CLOs and CLNs. The paper on offer ranges across the rating curve from double-A to double-B.

    23 of the bonds on the list are CLOs, of those one is a .......

    SCIWire 10 December 2014

  • US CLO activity edges up

    After a quiet start to the week the US CLO secondary market is seeing a little more activity today with the hope that it will continue to increase over the next few trading days.

    "There are a few more lists today, but it's not huge and they are mainly from smaller accounts - a few hedge funds and a liquidation .......

    SCIWire 10 December 2014

  • US CLOs stay quiet

    It's another quiet day in the US CLO secondary market today and the trend could continue.

    "There are a couple of bid lists out, but there really isn't a whole lot of trading going on," says one trader. "We've got a few people off the desk at the California conference and we still aren't busy."

    There are a few more .......

    SCIWire 9 December 2014

  • CLO compliance tool introduced

    Black Mountain Systems has unveiled a new compliance management module for its Everest platform. The compliance module provides pre- and post-trade compliance analysis, including hypo and basket-trade scenarios, breach notification and cure management across all of a client's funds, as well giving the customer the ability to independently add new deals and rules.

    The tool aims to provide a number .......

    News Round-up 8 December 2014

  • Report calls for higher mezz charges

    A new report from the BIS states that a simple and transparent asset pool does not translate into mezzanine tranches that are simple to assess. The report sets out the view of policymakers that mezzanine securitisation tranches therefore require substantial safeguards, which should be proportionately much larger than those for the underlying assets.

    The Basel Committee is expected to disclose .......

    News 8 December 2014
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