CLOs

  • Setting the tone

    European ABS/MBS market update

    As the much-anticipated September restart begins to materialise, one deal managed to reopen the European and UK ABS/MBS primary markets. With additional deals being announced, investor demand and overall market conditions will be tested.

    Yesterday the European Central Bank raised interest rates sharply, increasing its three key rates by three-quarters of percentage point - the biggest rise since 1999 - .......

    News Analysis 9 September 2022

  • Sustainable Fitch launches Leveraged Finance ESG Scores

    Sector developments and company hires

    Fitch Group’s ESG hub, Sustainable Fitch, has announced the launch of its ESG Scores for Leveraged Finance – the first high-coverage ESG solution for the leveraged finance industry. The ESG scores will equip the CLO investment community with an absolute scoring system which will allow for the granular assessment of environmental, social, and governance factors across leveraged finance entities and .......

    Market Moves 8 September 2022

  • SME funding partnership inked

    Sector developments and company hires

    SME funding partnership inked
    SME Capital and JPMorgan have agreed a new funding partnership dedicated to supporting UK SMEs. The collaboration entails JPMorgan extending a significant line of committed capital for SME cashflow lending over the next three years.

    The partnership forms the second phase in the development of SME Capital’s warehousing programme - the first phase being the .......

    Market Moves 2 September 2022

  • S&P Global bolsters private markets offering

    Sector developments and company hires

    S&P Global has announced the acquisition of the private markets data solutions provider, Private Market Connect (PMC). The acquisition will integrate the platform into the firm’s market intelligence division and will increase the breadth and depth of its data solutions for Limited Partner and General Partner customers. PMC currently tracks over 15,000 unique funds and US$1.2trn in private markets commitments. .......

    Market Moves 31 August 2022

  • Leadership shake-up at Intrum

    Sector developments and company hires

    Intrum says it has reached an agreement with Anders Engdahl, who will step down from his position as president and ceo of the firm and leave with immediate effect. The Intrum board has appointed current board member Andrés Rubio as acting president and ceo, with the recruitment of a permanent solution expected to commence during the autumn.

    Engdahl was internally .......

    Market Moves 26 August 2022

  • Flexible allocation

    Bond buckets on the rise

    High yield bond (HYB) holdings across US CLOs continue to rise, following their reintroduction in October 2020. A new Fitch study indicates that HYB exposure is found mostly in recent vintage transactions, while exposure within CLOs tends to be much lower than indenture-mandated limits.

    Indenture provisions related to HYB exposure vary from outright prohibition to limitations linked to .......

    News Analysis 25 August 2022

  • Reciprocal relationship

    Increased market volatility has raised asset allocator demand for private credit strategies, particularly structured credit. Hildene Capital Management explains how structured credit asset managers and insurers can work together in today’s volatile market.

    Insurance companies are among the investors leading the way in understanding how this unique asset class – known for its enhanced yields and credit protections – can .......

    Talking Point 24 August 2022

  • UCITS cat bond index touted

    Sector developments and company hires

    Plenum Investments has released a catastrophe bond market study and index family, with the aim of providing investors with what the firm describes as an “investment compass”. Plenum believes that the index will enable a fund offering to be matched with the individual risk appetite of an investor, while allowing the performance and risks of funds to be compared with each .......

    Market Moves 23 August 2022

  • Insurance assurance

    Christopher Freeze, senior md and head of investor relations...

    Q: Churchill closed its inaugural collateralised fund obligation (CFO) last month. The US$700m transaction will invest across the firm’s flagship private capital fund strategies. What were the drivers behind the launch of the deal?
    A: At Churchill, we are a solutions-oriented firm solving for investor needs. We asked ourselves: how can we introduce insurance company investors to the full array .......

    The Structured Credit Interview 22 August 2022

  • MBS social index proposed

    Sector developments and company hires

    Fannie Mae has published a proposed methodology for single-family social disclosure, which aims to provide MBS investors with insights into socially-oriented lending while preserving the confidentiality of borrowers. At the core of the methodology are three key outcomes that the GSE is seeking to achieve with its Single-Family Social Index: prioritise borrowers; allow investors to identify pools with high concentrations of .......

    Market Moves 18 August 2022

  • Latvian auto ABS debuts

    Sector developments and company hires

    Signet Bank has launched the first securitisation in Latvia, in cooperation with car leasing company Primero. The bank supported its subsidiary in the issuance of a €9.46m ABS.

    The seven-year transaction consists of a senior tranche and a junior tranche and is secured by a lease and leaseback portfolio of secured auto loans. The issuance is aimed at attracting additional .......

    Market Moves 16 August 2022

  • DLT powers bank subordinated debt deal

    Sector developments and company hires

    DLT powers bank subordinated debt deal
    Blockchain-powered fixed income platform Brightvine and Angel Oak Capital Advisors have launched what is believed to be the first-ever bank subordinated debt issuance leveraging blockchain technology. A US$147.55m securitisation backed by subordinated debt issued by community banks across the US, BFNS 2022-1 leverages Brightvine Portal, a secure management platform for conducting primary offerings of .......

    Market Moves 12 August 2022

  • Angel Oak censured for fix-and-flip RMBS

    Sector developments and company hires

    The US SEC has charged Angel Oak Capital Advisors and its portfolio manager Ashish Negandhi for misleading investors about the firm’s fix-and-flip loan securitisation’s delinquency rates. Angel Oak and Negandhi have agreed to pay a penalty of US$1.75m and US$75,000 respectively.

    According to the SEC’s order, in March 2018, Angel Oak raised US$90m through a securitisation backed by loans to .......

    Market Moves 11 August 2022

  • RFC issued on SES proposals

    Sector developments and company hires

    The EBA has launched a public consultation on its draft regulatory technical standards (RTS) on the determination by originator institutions of the exposure value of synthetic excess spread (SES) in securitisations. The aim of the proposals is to contribute to a more risk-sensitive prudential framework in the area of synthetic securitisation.

    The capital markets recovery package (CMRP) set out a .......

    Market Moves 9 August 2022

  • London Bridge broadens ILS capabilities

    Sector developments and company hires

    Lloyd’s has received regulatory approval from the UK PRA and FCA to set up a second Protected Cell Company (PCC), which provides a broadened range of ILS-related capabilities and enhanced accessibility for investors. Following the success of London Bridge Risk PCC (LBR) (SCI 10 February 2021), the new Lloyd’s vehicle is called London Bridge PCC (LB2) and will enable .......

    Market Moves 5 August 2022

  • Voya to acquire Czech Asset Management

    Sector developments and company hires

    Voya Investment Management has signed a definitive agreement to acquire private credit asset manager dedicated to the US middle market, Czech Asset Management (CAM). The transaction reflects Voya IM’s commitment to the expansion of its private and alternative credit capabilities, and the firm hopes the acquisition will complement its existing fixed income platform and boost the expansion of its private .......

    Market Moves 4 August 2022

  • Germany's auxmoney secures €500m funding

    Sector developments and company hires

    The German digital-lending platform auxmoney has secured a further €500m in funding for investment into consumer loans on its platform from Citi and Natixis’ ABCP conduit. The digital-lending platform has been supported by investment from Citi since 2021, with this latest funding from the two large financial institutions expected to be used for the origination of new loans. The firm .......

    Market Moves 3 August 2022

  • NPL Markets reveals new partnership agreement

    Sector developments and company hires

    NPL Markets has announced a new partnership agreement with World Bank Group member, International Finance Corporation (IFC). The collaboration seeks to develop a greater and more efficient marketplace in South America to manage and trade performing loans, distressed, as well as other illiquid assets. Initially, the partnership will target the large markets of Brazil and Mexico, with hopes to explore .......

    Market Moves 2 August 2022

  • RFC issued on homogeneity RTS

    Sector developments and company hires

    The EBA has launched a public consultation on draft regulatory technical standards (RTS) specifying the criteria for the underlying exposures in securitisation to be deemed homogeneous, in line with requirements under the Securitisation Regulation and as amended by the Capital Markets Recovery Package (CMRP). The homogeneity requirement aims to facilitate the assessment of underlying risks in a pool of underlying .......

    Market Moves 29 July 2022

  • Securitised products business under review

    Sector developments and company hires

    During its 2Q22 financial results presentation yesterday, Credit Suisse disclosed that it has been conducting a strategic review of the bank's businesses, with the goal of creating “a more focused, agile group with a significant, lower absolute cost base”. As part of this review, the bank is assessing strategic options for its securitised products business, including accelerating growth and strengthening .......

    Market Moves 28 July 2022

  • 'Penalising' RBC proposal criticised

    Sector developments and company hires

    ‘Penalising’ RBC proposal criticised
    The LSTA has submitted a comment letter to the NAIC expressing its belief that the NAIC’s risk-based capital (RBC) proposal could penalise insurance company investments in CLOs and consequently impact the CLO and loan markets. The proposal would change the RBC framework such that capital requirements for purchasing all tranches of a CLO match the capital .......

    Market Moves 21 July 2022
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