CLOs

  • Eurozone deflation would have mixed impact

    A deflationary eurozone environment would have a moderate overall impact on EMEA structured finance, with weaker borrowers under earnings pressure and those facing refinancing risk most exposed, according to Fitch. CMBS could face the greatest downgrade pressure under deflation, with falling nominal rents combining with a spike in maturities in 2015/2016 under this scenario. However, accommodative monetary policy should mitigate .......

    News Round-up 4 November 2014

  • Post-crisis returns dip

    The October monitor report for JPMorgan's Collateralized Loan Obligation Index (CLOIE) shows that returns were negative across the capital structure for the post-crisis segment, led by double-B and double-A tranches, which lost 0.95% and 0.72% respectively. Returns remained positive during the month for the pre-crisis segment, however.

    The total amount of CLOs paying down in the index since the September .......

    News Round-up 4 November 2014

  • Euro CLO selling to continue

    The European CLO BWIC pipeline is building up for this week beyond today and is expected to continue to grow as sellers continue to emerge. At the same time, tomorrow's big CDO/CLO/MBS BWIC is unlikely to be the last of its kind.

    "We're still seeing profit-taking in Europe," says one trader. "Notably fast money accounts are selling out of European .......

    SCIWire 3 November 2014

  • Spanish focus

    The European BWIC schedule starts the week with two auctions scheduled so far for today that are dominated by Spanish names.

    At 15:00 London time is a 17 line €212.8m Spanish CLO and RMBS list. It consists of: BANKP I A2, BCJAF 6 A2, BCJAM 1 A, BFTH 10 A2, BFTH 11 A2, BFTH 3 A, BFTH 8 A, BFTH .......

    SCIWire 3 November 2014

  • Risk retention to have mixed impact

    Risk retention regulations that were approved last week by US federal regulators (SCI 22 October) will be credit positive for non-agency RMBS, according to Moody's. The impact on CLOs, on the other hand, is expected to be credit neutral.

    The rules generally require sponsors to retain 5% of the risk in most types of securitisations for the life of the .......

    News Round-up 31 October 2014

  • Controlling stake acquired

    Fair Oaks Income Fund has acquired, in the primary market, US$26m notional of equity notes of Covenant Credit Partners CLO II. The acquisition represents 51% of the total equity of the US transaction.

    The CLO's current target portfolio has a principal value of US$500m across an expected 172 unique bank loan issuers, with an expected average exposure per issuer of .......

    Job Swaps 31 October 2014

  • BWIC seller revealed

    BayernLB has confirmed that it was the seller behind Tuesday's large liquidation, in which it divested its remaining portfolio of legacy ABS instruments. The sale ends the bank's guarantee agreement with the Free State of Bavaria that hedged the portfolio against potential losses.

    BayernLB says it has fulfilled the resulting repayment requirement in full and earlier than planned by paying .......

    News Round-up 30 October 2014

  • US CLOs trade strongly

    The US CLO market is taking the current high volume of BWICs in its stride and continues to trade strongly.

    "Yesterday almost everything traded on BWIC despite the volume and we're seeing good volume again today," says one trader. "Again, trading levels are good across a good mix of collateral - the market is robust and viable." For example, the .......

    SCIWire 29 October 2014

  • Big list trades well

    Yesterday's US$7bn legacy auction saw bonds generically trading at a couple of points higher than talk. Citi, Credit Suisse and Goldman Sachs are understood to each have bought about a third of the paper out for bid.

    The liquidation, the largest observed year-to-date, comprised 507 US dollar-denominated bonds (totalling US$5bn current face) and 152 European securities (US$2bn) from a European .......

    News Round-up 29 October 2014

  • Euro rejuvenation

    Yesterday's big list has rejuvenated activity and interest across European securitisation asset classes.

    "We're still waiting on official colour on the big BWIC, but while the market was quiet leading up to the list we've seen trading on the back of it since," says one trader. "Overall, the list has given a much-needed boost to trading and customer interest."

    The .......

    SCIWire 29 October 2014

  • CLO partnership established

    Crestline Investors has partnered with Denali Capital to further expand a CLO platform under the broader Crestline suite of investment products. The business will operate under the name Crestline Denali Capital.

    Under the new agreement, Crestline will sponsor a series of new CLO issuances - the first of which is underway - to be managed by Crestline Denali Capital. In .......

    Job Swaps 28 October 2014

  • CLO supply spike

    The US CLO market has added significant supply around today's 7.5bn BWIC, which appears to be transfixing all other sectors. There are now 12 US CLO BWICs scheduled between now and the end of Wednesday.

    The flurry of US CLO lists appears to be a reaction to the big list. Traders suggest that the additional sellers are seeking either to .......

    SCIWire 28 October 2014

  • Strong CLO schedule

    Notwithstanding the big list due tomorrow the CLO BWIC market already has a strong schedule in place either side of the Atlantic this week. Today already has three lists in the pipeline and nine more are scheduled over the following two days.

    Today currently begins with a $32.35m five line list at 9:00 New York time. It consists of: AVERY .......

    SCIWire 27 October 2014

  • Large list to dominate

    Tuesday's large liquidation BWIC is set to dominate traders' attention across asset classes either side of the Atlantic in the short-term. Longer term the picture is less clear.

    The previously mentioned list, possibly from a Scandinavian bad bank, amounts to 647 lines and just under 7.5bn of current face when US assets and CDOs/CLOs are included. "This type of legacy .......

    SCIWire 24 October 2014

  • US CLO BWICs stay relatively quiet

    Yesterday's relatively quiet day in US CLO BWICs, albeit with fewer DNTs than of late, currently looks likely to continue today. There are four fairly small lists due totalling 15 lines and $60.95m of original face.

    Selling activity is currently being led by one chief investor type, according to one trader. "We're seeing managed accounts lightening a little due to .......

    SCIWire 24 October 2014

  • CLOs face risk retention questions

    The recently-finalised risk retention rules (SCI 22 October) will remove a level of uncertainty that has hung over the US structured finance market since 2011, but raise new questions as to the market's direction going forward, Fitch suggests. The CLO and leveraged loan markets are expected to be profoundly affected by the move, while the new rules could help reduce .......

    News Round-up 24 October 2014

  • Euro CLO market looks forward

    A disconnect between bids and offers in the European CLO market has impacted secondary trading. A strong lineup of bid-lists early next week is expected to bring some clarity.

    "After the widening we saw last week, things have started to tighten back in this week. However, generically offers are staying high and bids have dropped, so we are not seeing .......

    Market Reports 23 October 2014

  • Illiquid action

    The CDO and CLO markets are attracting plenty of sellers at the moment, particularly in illiquid bonds.

    "We're seeing a lot of selling in illiquid off-the-run assets - primarily ABS CDOs, Trups CDOs and distressed CMBS," says one trader. "It's the time of year where legacy portfolios are looking to square away their books and decide whether to lighten them .......

    SCIWire 23 October 2014

  • Euro CLOs keep a low profile for now

    There's little on the European CLO BWIC schedule for the rest of this week yet, but there is a high volume of lists already in the pipeline for next week.

    The bulk of yesterday's European CLO BWICs came back as DNT, TRD or without any colour at all, but activity remained steady in the bilateral space with trades across the capital structure .......

    SCIWire 22 October 2014

  • Short-term boost for US CLOs

    Sentiment has improved in the US CLO market today, but there remain longer-term concerns.

    "Today activity has picked up and there is better sentiment than we've seen recently," says one trader. While dealers were lightening their balance sheets last week, they are back buying this and consequently spreads have edged in around trades done or covers seen on BWIC, even if a .......

    SCIWire 21 October 2014

  • Triple-Bs dominate European CLO BWICs

    Triple-B paper dominates today's schedule as the European CLO BWIC market gets under way for this week with three auctions due today including the large list postponed from last Thursday.

    First up at 14:30 are two triple-B slices - €3m of GRENP 2006-1X D and €3.5m of RMFE IV-X IV-A. Neither of the bonds has traded on PriceABS in the .......

    SCIWire 21 October 2014
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