CLOs

  • Euro investors watching CLO equity

    European CLO investors are largely waiting on the sidelines and observing as secondary market activity has slowed considerably. CLO 2.0 equity paper - both secondary and new issue - is proving most popular with investors.

    "A few concerns continue to hang over the market and that has slowed activity down. For me, the largest worry is the arbitrage, but a .......

    Market Reports 9 May 2014

  • CLO performance prompts forecast rethink

    Despite the high level of uncertainty the CLO market has faced, JPMorgan has increased its issuance estimates for the US. Supply in 2013 was US$97.4bn, of which US$87.1bn came from the US and the remainder from Europe.

    Issuance trends so far this year have been stronger than expected and last month saw 26 CLOs price. It was the second-highest all-time .......

    News 8 May 2014

  • CLO research analyst added

    Citigroup has added Maggie Wang to its CLO research team in New York. She joins as a director and will start in June.

    Wang was most recently head of US CLO and CDO research at JPMorgan, where she also closely followed the ABS, CMBS and high yield markets. She has also worked for EMC and Siemens.

    .......

    Job Swaps 8 May 2014

  • CLO lawyer added in New York

    Meagan Signoriello has joined Lowenstein Sandler's mortgage and structured finance group as an associate. She counsels collateral managers in CLO transactions and also has experience in ABCP and RMBS. Signoriello was previously at Seward & Kissel and will be based in New York.

    .......

    Job Swaps 7 May 2014

  • Pricing partnership formed

    SCI has launched a partnership with Intex to provide INTEXcalc users with free trial access to SCI PriceABS market prices for securitised products. SCI PriceABS is a daily secondary market colour and price service that includes pre- and post-auction price talk and covers/traded prices for ABS, CMBS, RMBS and CDO/CLO bonds across Europe and the US.

    The SCI .......

    News Round-up 7 May 2014

  • US, European CLO firm founded

    An independent advisory firm focused on global credit has been formed with offices in London and New York. Fair Oaks Capital will also launch its Fair Oaks Income Fund on the specialist fund market of the London Stock Exchange.

    The firm currently advises GLI Finance and its new fund will acquire GLI's CLO portfolio and look to raise up to .......

    Job Swaps 7 May 2014

  • No-action relief for CLO managers

    The US CFTC has granted no-action relief to CLO managers for failure to register as a commodity trading advisor (CTA). The no-action letter notes that a manager is engaged by the CLO to provide investment advice for compensation and that the CLO is not a 'commodity pool' pursuant. It also notes that the advice that the manager provides to the .......

    News Round-up 30 April 2014

  • Language limiting Volcker extension?

    An LSTA interpretation of the language used by the US Fed in its extension of the CLO conformance period under the Volcker Rule (SCI passim) could mean that relief for the asset class is even narrower than previously envisaged. At issue is the phrase 'in place'.

    Only CLOs in place as of year-end 2013 are eligible for the extension. Initially, .......

    News 30 April 2014

  • Low CLO exposure to largest default

    Energy Future Holdings (EFH) and its subsidiaries filed for Chapter 11 bankruptcy yesterday. S&P LCD says it is the largest loan market default in its history, however CLO exposure is low.

    Energy Future skipped around US$119m of coupon payments on 1 April within its Texas Competitive Electric Holding Company (TCEH) subsidiary. It has since reached an agreement with key creditors .......

    News Round-up 30 April 2014

  • Mizuho adds CLO chief

    Mizuho Securities USA has appointed Jim Stehli as md and head of CLOs. He is based in New York and brings over 20 years of experience in structured products.

    Stehli was previously securitised products principal at CRT Capital Group. He has also worked at Sirona Advisors, UBS, PaineWebber, Kidder Peabody and JPMorgan.

    .......

    Job Swaps 29 April 2014

  • Asset manager adds CDO pro

    Structured products specialist Maxime Malaure has joined Napier Park Capital as a director in its European credit strategies team. He will be based in London.

    Malaure was previously at Commerzbank, where he worked in the securitised products group. He joined Commerzbank through Dresdner Kleinwort, where he was an md working on cash CDOs and he has also worked on CDOs for Bear .......

    Job Swaps 25 April 2014

  • Strong credit enhancement continues

    With 2014 off to a strong start for new US CLO issuance, a notable constant has been strong credit enhancement, according to Fitch in its latest quarterly update on the sector. The agency reports that 40 US CLOs totalling US$20.6bn came to the market in 1Q14.

    Credit enhancement for senior notes in these CLOs has remained stable at 37.7%, compared .......

    News Round-up 23 April 2014

  • SME platform debuts

    BNP Paribas, BPCE, Crédit Agricole, HSBC and SG have established Euro Secured Notes Issuer (ESNI). Billed as a new form of securitisation, the programme is secured by bank loans to SMEs meeting the eligibility criteria for Eurosystem refinancing operations.

    ESNI is open to all European banks and issued its first Euro Secured Notes (ESN) on 11 April for an outstanding .......

    News Round-up 23 April 2014

  • Key man confirmed

    Peter Goody has replaced Paul Carman as a key person on the Harvest CLO III to IV transactions. The replacement was confirmed for Harvest CLO II last month, when Moody's determined that the move would not cause its ratings on the notes to be reduced or withdrawn (SCI 24 March).

    .......

    Job Swaps 22 April 2014

  • Credit picking

    CLO investing in an evolving regulatory environment discussed

    Representatives from Thomson Reuters, Prudential Fixed Income and Guggenheim Securities discussed the CLO investment landscape in an evolving regulatory environment during a live webinar hosted by SCI last month (view the webinar here). Topics included the impact of risk retention requirements and the Volcker Rule, as well as current drivers of relative value. This Q&A article highlights some .......

    Talking Point 16 April 2014

  • Royal Decree impact examined

    DBRS says that changes to Spain's insolvency law, introduced last month (SCI 18 March), will not immediately impact its assumptions regarding defaults and recovery rates in the jurisdiction. However, the agency notes that the Royal Decree 4/2014 raises several questions as to how structured finance transactions will be impacted.

    In particular, DBRS points to a number of questions raised by .......

    News Round-up 16 April 2014

  • CLO repacks emerging

    Transactions tailored to CLO senior tranche investors' specific currency needs are beginning to emerge, Moody's notes in its latest CLO Interest publication. Last month, for example, the agency rated a repackaging transaction that effectively converted the US$250m class A tranche issued by JFIN CLO 2014 into a note making payments to the ultimate investor in Japanese yen.

    Dubbed Repackaged Asset-Backed .......

    News Round-up 16 April 2014

  • Peripheral country caps lifted

    Fitch has taken positive rating action on 150 tranches of 113 structured finance transactions that are capped relative to the sovereign ratings of Ireland, Portugal and Spain. The move follows the revision of the caps on structured finance (SF) ratings to align them with the country ceilings of those countries, six notches above the respective sovereign issuer default ratings (IDR). .......

    News Round-up 16 April 2014

  • Volcker impact weighed

    The provision of extra time to comply with the Volcker Rule provides few opportunities to banks and CLOs, Fitch says. Nevertheless, the methods CLOs are using to avoid being labelled as covered funds are largely viewed as credit neutral.

    The US Fed last week extended the deadline for banks to divest their CLO holdings to 21 July 2017 (SCI 8 .......

    News Round-up 16 April 2014

  • CLO tail risk 'not excessive'

    Single-B loans appear to represent the sweet spot for US CLO 2.0 assets, given risk and reward considerations. At the same time, exposure to the widest margin assets varies across deals and managers.

    CLO 2.0 deals are significantly overweight single-B loans compared to the rest of the loan universe and are underweight every other rating, according to a JPMorgan analysis .......

    News 15 April 2014

  • New manager variation examined

    Moody's reports in its latest CLO Interest publication that it assigned ratings to deals from another six managers that are new to the US CLO market between July 2013 and March 2014, bringing the total number of new managers that issued deals post-2011 to 24 and the count of deals under their management to 52. The agency notes that new .......

    News Round-up 15 April 2014
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