CLOs

  • 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

  • Lender drops confidentiality lawsuit

    Monroe Capital has dismissed its lawsuit against Warren Woo and Breakaway Capital. The firm filed the lawsuit against Woo in June, alleging that he forwarded confidential client information and trade secrets to an email account at a competing firm that he had established.

    Monroe fired Woo, who was formerly an md at the firm, citing "serious violations" of its policies .......

    News Round-up 8 December 2014

  • Slower start for CDO/CLO markets

    After a busy week last week, the CDO/CLO BWIC market begins more slowly this week with focus around European and CDO names as some traders are away at a CLO conference in California for the next two days. There are currently only three auctions scheduled for today in the sector.

    At 15:00 London time there are two three line euro .......

    SCIWire 8 December 2014

  • SCI conference line-up unveiled

    Final panellist line-ups have been announced for SCI's 8th Annual Securitisation Pricing, Investment and Risk Seminar, which is taking place on 12 December in London. The event is being held at Reed Smith's offices at Broadgate Tower, 20 Primrose Street, EC2A 2RS.

    This conference will focus on relative value in light of ongoing regulatory challenges and the ECB's ABSPP. The .......

    News Round-up 5 December 2014

  • Morning rush for US CLOs

    The US CLO BWIC market is continuing its volume upswing with 56 line items already scheduled for auction this morning.

    "The market has certainly turned round in the last couple of days in terms of the number of BWICs scheduled," says one trader. "The turnaround doesn't appear to be driven by anything more than managers looking capture some earnings before .......

    SCIWire 4 December 2014

  • CLO performance to remain strong

    The performance of CLOs in the US, Europe and Asia will remain strong as a result of the improving global economy, according to Moody's. This is in spite of weaker leveraged loan underwriting, expected rising interest rates and new regulation.

    The agency says that US broadly syndicated loans (BSL) and US SME CLOs will benefit from historically low leveraged loan .......

    News Round-up 4 December 2014

  • CLO portal debuts

    US Bank Global Corporate Trust Services has launched Pivot, a specialised client portal built for CLO managers. Pivot streamlines daily cash activity and monthly reconciliation processes, allowing clients to focus on managing their portfolio.

    With a single access point for all data, pivot includes critical alerts about deal milestones, pending trades and unexpected changes to clients' portfolios. Core Pivot features .......

    News Round-up 4 December 2014

  • Stable investment

    Low-risk option attracting investors

    The overlap between stable value (SV) funds and securitisation is increasing, given that high grade ABS offers the benefits of low risk and steady, predictable returns. However, SV strategies remain somewhat constrained by the conservative nature of their financial objectives.

    SV funds are capital preservation investment options available in 401(k) and other types of savings plans. Douglas Trevallion, md at .......

    News Analysis 4 December 2014

  • US CLOs on the up

    The US CLO market is seeing increased BWIC volume and tighter spreads so far today.

    "Things are picking up a bit today with a handful more bid lists," says one trader. "In terms of price action, everything feels a little stronger across the board, but spreads are only actually moving tighter in specific areas where there is strong buying interest."

    SCIWire 3 December 2014

  • CLO specialist moves

    Ross Heller has joined RBC Capital Markets as a director, structured credit sales. He will work in CLO marketing and distribution.

    Heller arrives after five years at Nomura Securities, where he was an executive director for leveraged credit sales. He has also held roles as md at NewOak Capital and executive director at JPMorgan.

    .......

    Job Swaps 3 December 2014

  • Mezz focus for European CLOs

    Today sees two substantial primarily mezzanine tranche BWICS in the European CLO market reflecting most active part of the capital stack so far this week off-BWIC. Both auctions are due at 15:00 London time and will be watched closely given recent spread widening in the sector.

    One list totals €36.8m of original face across ten line items. It consists of: .......

    SCIWire 3 December 2014

  • Originator fee rebates tallied

    Blackstone/GSO Corporate Funding has priced the €415m Castle Park CLO, its third originator CLO. The fund has negotiated a rebate of Castle arrangement fees of €3.95m, which will be paid at closing.

    Blackstone/GSO Corporate Funding will sell approximately €240m par amount of loans to Castle at closing, representing approximately 60% of the CLO's portfolio. The fund will then acquire all .......

    Job Swaps 3 December 2014

  • US CLOs stay light

    Trading volumes are still light in the US CLO market post-Thanksgiving and are expected to stay that way.

    "It's still pretty quiet and there isn't much of major interest going out on the BWICs that there are," says one trader. He cites a list of BLUEM single-Bs that traded yesterday and a double-B OWIC due this morning as exceptions in .......

    SCIWire 2 December 2014

  • CLO returns rebound

    JPMorgan's latest Collateralized Loan Obligation Index (CLOIE) monitor report shows that the total amount of CLOs paid down in the index since the October rebalance was US$2.15bn in par outstanding, split between US$2.12bn and US$30m of pre-crisis and post-crisis CLOs respectively. The post-crisis CLOIE added US$7.65bn from 78 tranches across 16 deals at the November rebalance.

    Post-crisis CLOIE returns last .......

    News Round-up 2 December 2014

  • CLO constraints scrutinised

    Constraints in the second generation of European CLOs that restrict managers' flexibility to agree to amend and extend leveraged loans will lead to significantly higher leveraged loan default rates during the next downturn, says Fitch. The agency adds that if these covenants had been in place during the last downturn there would have been more forced restructurings, which could have .......

    News Round-up 1 December 2014

  • No cov-lite switch for mid-market

    A sampling of middle-market loans by Moody's suggests that a substantial majority still have financial maintenance covenants. This is credit positive because these covenants provide lenders a mechanism to manage their exposure in a deteriorating credit situation, but the average number of covenants per loan has declined over the past four years.

    Moody's sampled 30 middle-market loans for which it .......

    News Round-up 27 November 2014

  • REIT promotes risk md

    Robert Rush has taken the role of chief risk officer at Two Harbors Investment Corp. Paul Richardson, who has served in that role over the past several years, will remain in his role as partner and chief risk officer for Pine River Capital Management, the parent of the company's external manager.

    Rush has served as Two Harbors' md for risk .......

    Job Swaps 27 November 2014

  • Paper trades ahead of Thanksgiving

    The US secondary markets have not shut down just yet, with SCI's PriceABS data picking up price talk and cover prices for US ABS, CLOs, CMBS and RMBS yesterday. In ABS there was more than US$100m out for the bid on BWICs, with supply divided between autos, credit card, equipment and student loan ABS.

    Each of .......

    Market Reports 26 November 2014

  • CLO retention relief sought

    The LSTA has filed suit against the US Fed and SEC, seeking relief for CLOs from the final risk retention rule and "to protect an important source of financing for American companies". The association says that it and the industry strongly believe that the agencies did not fulfil their legal responsibilities when finalising the rule.

    It adds that the move .......

    News Round-up 25 November 2014

  • US CLOs closing out

    Year-end is at the forefront of US CLO traders' thoughts, but that's not to say the market is quiet.

    "We saw robust volume yesterday and it's very busy for a Friday today, especially in 1.0 deals, with a high proportion of lists overall from non-bank entities," says one trader. "We're also seeing sales of quite a few tranches that are .......

    SCIWire 21 November 2014

  • CLO team formed

    Lupus Alpha has expanded its team with the addition of four members from Main First Asset Management. Norbert Adam, Klaus Ripper, Michael Hombach and Stamatia Hagenstein will form a specialised fund management team in January, focused on CLOs. Lupus Alpha intends to issue several CLO strategies for institutional investors, as well as policy-compliant mutual funds.

    .......

    Job Swaps 21 November 2014
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