CLOs

  • CLO equity distributions to increase?

    On average, 2011-2013 vintage US CLOs have paid dividends of 5.1%-5.6% since inception, according to Wells Fargo figures. Equity distributions have generally trended downwards since 2011, as loan spreads tightened in 2012 and 2013, but are expected to stabilise or possibly increase over the next few quarters due to the recent loan market sell-off.

    The Wells Fargo data shows that .......

    News Round-up 11 September 2014

  • Differing days for European CDOs and CLOs

    European CDOs and CLOs saw differing results yesterday and the latter looks set for another good day today.

    On BWIC the two CDOs scheduled for 15:00 London yesterday did not trade. Euro-denominated ABS CDO FAXT 2004-1X A-3 had a best bid in the 95 area and dollar-denominated emerging markets CDO GEML 2006-3A C had a best bid in the 90 .......

    SCIWire 11 September 2014

  • European CLO 2.0 performance surveyed

    With all 2013-vintage European CLOs having seen one or two payment dates since issuance, Morgan Stanley CLO strategists surveyed performance so far, focusing on equity. The median annualised distribution to 2013-vintage European CLOs stands at 16%, albeit with significant variation across transactions.

    Compared to the median annualised cash distribution one year after closing for legacy European CLOs, 2013-vintage CLOs appear .......

    News Round-up 10 September 2014

  • Credit manager adds trader

    Highland Capital Management has hired Chris Hayes as a loan and high yield bond trader. He will be based in Dallas and report to head of structured products and trading Josh Terry.

    Hayes will be Highland's primary bank loan, high yield bond and CDS trader for the firm's CLOs, hedge funds, mutual funds and separate accounts trading in the primary .......

    Job Swaps 10 September 2014

  • CDO/CLO BWIC pipeline builds

    On the back of rising prices in Europe and increasingly strong bids in many sectors in the US yesterday, the CDO/CLO BWIC pipeline for the next two days has filled up considerably. There are now seven lists due today and already 11 slated for tomorrow.

    From today's schedule the most notable lists are the HLCN synthetic CRE CDO quartet (see SCIWire 2 September) .......

    SCIWire 10 September 2014

  • Euro CLOs go higher

    Heavy trading volumes have continued in the European CLO secondary market throughout today pushing prices higher, particularly in 1.0 deals.

    At the same time, the €22.5m three line BWIC list due at 15:00 London time has traded strongly with covers around or higher than talk. AVOCA VIII-X A1 was covered at MH98, ORX 1X C at MH99 and QNST 2006-1X .......

    SCIWire 9 September 2014

  • US CLO BWIC pipeline builds around equity

    Nine US CLO BWIC lists are now circulating for trade this week and a significant proportion are focused on equity tranches.

    The current schedule sees a total of $710m out for auction made up of 50 line items, of which 22 are slices of equity. Today currently has three lists scheduled, two at 10:00 New York time and one at .......

    SCIWire 9 September 2014

  • Euro CLOs reap ECB benefit

    European CLO secondary spreads across the capital structure either held firm or narrowed last week on the back of healthy flows. The moves are credited, in part at least, to the market being buoyed by the ECB's ABSPP announcement despite CLOs not being included in the programme. The positive impact for CLOs, driven by increased interest and activity in European .......

    SCIWire 8 September 2014

  • More CLO taps mooted

    Fitch expects more managers to tap CLO 2.0 deals after Dryden XXVII Euro CLO 2013 (SCI 19 August) became the first European post-crisis transaction to tap its ability to issue additional notes. The Dryden tap has now priced, yielding net proceeds of €194m with the note terms remaining the same.

    The additional issuance is not only more economical for the .......

    News Round-up 5 September 2014

  • CLO BWIC circulating

    The first CLO BWIC of the day, scheduled to trade at 15:00 New York time, has begun circulating.

    The four line list consists of $500,000 of BACUS 2006-1A A, $2m of CORNR 2007-1A A1S, $3m of RACEP 2006-3 A and $3m of STNY 2007-1A A1. STNY 2007-1A A1 is the only bond to previously trade on BWIC in the last .......

    SCIWire 4 September 2014

  • CLO BWIC volume spikes for a day

    In the end, yesterday saw seven CLO BWICs trade in total either side of the Atlantic. However, no new lists are yet scheduled for today or tomorrow.

    Yesterday's lists contained seven euro deals and 12 dollar-denominated bonds. Only two did not trade, ALME 2013-1X A-2 and WOODS 2006-7X D, with vast majority of the rest trading broadly in line with .......

    SCIWire 4 September 2014

  • European ABS expands

    The talk surrounding a potential European asset purchase plan is expanding investor interest in ABS.

    "We're finding a few accounts that have been out of the European ABS market for a couple of years are coming back in," confirms one trader. "There's a lot of new interest round the ECB."

    Heightened activity is yet to filter through to European CLOs, .......

    SCIWire 3 September 2014

  • CLOs/CDOs ease back in

    The CLO/CDO BWIC market eased back into its stride through the course of yesterday's US afternoon with the first two trades of the month and the addition of further lists.

    A small two line CLO list traded at 14:30 New York time yesterday. $300,000 of BABSN 2013-IA A covered at 98.5 and $315,000 of TPCLO 2013-1A A1 covered at 98.375, .......

    SCIWire 3 September 2014

  • Mixed day so far

    The US structured finance markets are taking a while to find their feet today while off-BWIC Europe appears to be building up a head of steam - strong trading is continuing in European RMBS now including non-peripheral bonds.

    On the BWIC front, both sides of the Atlantic aren't seeing many new lists circulating. The CLO market has not so far .......

    SCIWire 2 September 2014

  • CLO sell-off coming?

    After today's US public holiday, CLO traders expect an upswing in activity amid a potential sell-off.

    Last week saw above-average CLO BWIC volume for a summer week, reports one trader. "That was driven by volatility, which is in an upward trend, so the market could be ready for a further sell-off this week. We therefore expect a lot more bid-lists .......

    SCIWire 1 September 2014

  • CLO overcollateralisation examined

    Amortisation across US CLO 1.0 deals is positively impacting overcollateralisation cushions, according to a recent JPMorgan study. The bank analysed OC trends in a universe of 508 US CLOs (representing US$227bn) and 154 European CLOs (€52bn) issued between 2005 and 2013. CLOs with less than 40% of their original capital structure remaining were excluded to minimise distortion from outliers.

    Among .......

    News Round-up 29 August 2014

  • CIFC names new director

    CIFC Corp has appointed Jeffrey Serota to its Board of Directors. He was previously a senior partner at Ares Management, until his retirement earlier in the year.

    Concurrent with the appointment, Frank Puleo resigned from the CIFC Board to focus on his other business activities.

    .......

    Job Swaps 27 August 2014

  • Credit vet recruited

    Hermes Fund Managers has appointed Zoë Shaw as head of fixed income, reporting to ceo Saker Nusseibeh. In this new role, she will build on the firm's fixed income and credit capabilities to create a range of specialist credit capabilities that leverage Hermes' unique ownership structure.

    Shaw joins from Promethion, where she was md since 2009. Prior to that, she .......

    Job Swaps 27 August 2014

  • Originator fund uses over-allotment

    Blackstone/GSO Loan Financing (BGLF) has raised an additional €40.7m through the issue of 40.7 million shares pursuant to an over-allotment option. The company has now raised a total of €301.2m under its IPO (SCI 21 July).

    Since launch, BGLF has closed a €475m three-year revolving credit facility with a syndicate of four international banks and Phoenix Park CLO - which .......

    Job Swaps 26 August 2014

  • BWIC 'interface' launched

    DealVector has launched a central repository for daily BWIC information, which aims to improve liquidity in structured markets. Dubbed BWIC Board, it is a single interface that provides a simple overview of the entire market and notification linkages based on investor preferences.

    The platform says that brokers who contribute BWIC list data will maintain control of their relationships while receiving .......

    News Round-up 22 August 2014

  • Additional issuance for Euro CLO 2.0

    Dryden XXVII Euro CLO 2013 subordinated noteholders have approved the creation and issuance of additional notes via a written resolution, at the request of the issuer. The move follows the replacement of PIM Foreign Investments as risk retention holder on the transaction with the collateral manager Pramerica Investment Management.

    The issuer notified noteholders on 13 August that it wishes to .......

    News Round-up 19 August 2014
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