CLOs

  • 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

  • QE impact weighed

    If the ECB were to buy senior tranches of SME securitisations - for example, under a quantitative easing (QE) programme - it could help revive private investor interest in the sector and provide additional funding to banks for business lending, Fitch says. However, this would depend on the price the ECB is willing to pay for senior tranches.

    European SME .......

    News Round-up 11 April 2014

  • CLO market gauges Vivarte impact

    The European CLO market continues to feel the effects of the recent Vivarte default (SCI 18 March) as new deals struggle to ramp up. Secondary market activity has also been affected.

    "New issue CLOs, such as CVC Cordatus III and Holland Park were quite tight, but there are currently big question marks hanging over a few other deals. The market .......

    Market Reports 10 April 2014

  • Euro 2.0 protections examined

    European broadly syndicated loan (BSL) CLOs saw a revival of issuance activity in 2013, driven by favourable asset pricing coupled with tightening liabilities, which provided attractive arbitrage opportunities. New structural credit protections also mitigate credit risk, Moody's notes in a new study.

    "New European BSL CLOs structures are strong, having cleaner portfolios and stringent investment guidelines. In addition, subordination levels .......

    News Round-up 8 April 2014

  • Volcker extensions disappoint

    The US Fed says it intends to give banking entities two additional one-year extensions to 21 July 2017 to conform their ownership interests in and sponsorship of CLOs covered by the Volcker Rule. The move is disappointing for the industry, which had called for comprehensive relief for CLOs under the rule.

    Only CLOs in place as of 31 December 2013 .......

    News 8 April 2014

  • SF lawyer on the move

    Kaye Scholer has appointed Lawton Camp as a finance partner in its New York office. He joins the firm from Allen & Overy.

    Camp specialises in structured finance and securitisation, including CDOs, CLOs, ABS, ILS, RMBS and CMBS. He has two decades of industry experience and worked at Orrick, Herrington & Sutcliffe before joining Allen & Overy.

    .......

    Job Swaps 3 April 2014

  • CLO equity vulnerable to rates hike

    Recent comments from Fed chair Janet Yellen have led to a dramatic re-pricing of the front end of the rates market, with expectations of the timing of the first Fed funds rate hike brought forward. US CLO equity is set to be strongly affected by the move.

    CLO equity tranches have benefited from the presence of Libor floors in leveraged .......

    News 1 April 2014

  • Marking milestones

    Growth ahead for Chinese ABS

    The Chinese securitisation market passed two milestones - in October and February respectively - when foreign banks and non-bank finance companies were permitted to participate in the origination of domestic transactions. These developments coincide with the market-opening reform agenda announced in China's third plenum and lay the foundations for further growth of the country's ABS sector.

    "There is broad recognition .......

    News Analysis 1 April 2014

  • Chinese credit quality eyed

    The China Banking Regulatory Commission (CBRC) announced last month that commercial bank non-performing loans (NPLs) rose to RMB592.1bn in 4Q13 from RMB492.8bn in the same period of 2012. In addition, the NPL growth rate significantly outpaced total loan growth in 4Q13.

    Moody's notes in its latest 'Structured Thinking: Asia Pacific' publication that these developments suggest that the credit quality of .......

    News Round-up 27 March 2014

  • French firms partner up

    Amundi and Tikehau have signed a strategic asset management partnership to collaborate on private debt management. Amundi will also acquire a stake in Tikehau IM and become a shareholder of Tikehau Capital Advisors.

    Amundi will provide its clients with access to Tikehau's innovative and bespoke product range, while Tikehau will be able to accelerate the development of its asset management .......

    Job Swaps 27 March 2014

  • Key man replaced

    Paul Carman has been replaced by Peter Goody as a key person on the Harvest CLO II transaction. Moody's has determined that the move will not cause the ratings on the notes to be reduced or withdrawn.

    .......

    Job Swaps 24 March 2014

  • Small banks may unload CLOs

    Smaller US banks may sell CLOs amid uncertainty about their treatment under the Volcker Rule, says Fitch. The rating agency believes the banks might divest now to limit downside risks, even though the rules have not been finalised.

    There may yet be an exemption made so banks can hold CLOs, while the Barr Bill approved by the US House Financial .......

    News Round-up 21 March 2014

  • CDO analytics expanded

    Deloitte has rebranded and expanded its CDO Suite software under the name Solvas, with several new modules, solutions and interfaces now available. The service also has two different delivery methods: on-premise installation on clients' servers; and a hosted option in a data centre.

    .......

    News Round-up 19 March 2014

  • CLOs expected to withstand EFH default

    Energy Future Holdings is expected to file for Chapter 11 protection by the end of March, having narrowly avoided a default last November. With about US$46bn outstanding in debt, a bankruptcy by the firm would be the largest ever in the S&P/LSTA Leveraged Loan Index.

    Nevertheless, Bank of America Merrill Lynch CLO analysts believe that current junior US CLO OC .......

    News Round-up 19 March 2014

  • Vivarte CLO exposure weighed

    Moody's expects that European CLOs nearing maturity will experience lower recoveries on Vivarte's default than CLOs farther away from maturity. The agency explains in its latest CLO Interest publication that CLOs approaching maturity will have to sell Vivarte debt before completing the restructuring process - a credit negative for junior noteholders because excess spread will be diverted to redeem senior .......

    News Round-up 18 March 2014

  • Vintage CLO credit quality deteriorating

    Since better quality loans tend to prepay faster, the collateral pools of amortising US CLOs are becoming more concentrated and less liquid, increasing the likelihood that junior tranches will suffer principal losses. In particular, the credit quality and liquidity of the remaining 2002-2004 vintage CLO portfolios is markedly worse than that of later vintage deals, according to Moody's latest CLO .......

    News Round-up 18 March 2014

  • Spanish reforms to hit SME funding?

    Measures announced by the Spanish government to facilitate debt refinancing and restructuring agreements may affect the recovery expectations and cashflows of SME CLOs and mortgage cover pools, Fitch says. The agency suggests that reforms may make SME funding scarcer or more expensive.

    The initiative, which was enacted on 7 March in Royal Decree 4/2014, eases the process by which refinancing .......

    News Round-up 18 March 2014

  • CLO fix passes HFSC vote

    The US House Financial Services Committee on Friday passed Representative Andy Barr's H.R. 4167 bill (SCI 13 March) on a strong bipartisan vote of 53 to three - a step forward in spurring US agencies to issue Volcker Rule relief for CLOs, CDO strategists at JPMorgan suggest . The key take-away from Thursday's mark-up session ahead of the bill's passage .......

    News 17 March 2014

  • Paucity of CLO collateral examined

    High stock market valuations and an increasing corporate focus on strategic acquisitions are enabling financial sponsors to exit longstanding investments from the 2006 and 2007 boom years, while creating a barrier to new LBOs, Fitch says. The preference for IPOs and strategic sales has led to a material decline in the recycling of legacy leveraged credits through secondary buyouts, thereby .......

    News Round-up 13 March 2014

  • CLO fix due for debate

    The US House Committee on Financial Services is today due to mark-up H.R. 4167, the 'Restoring Proven Financing for American Employers Act'. The bill was offered by Congressman Barr and provides a fix for certain CLOs that would otherwise be subject to the Volcker Rule when it is fully implemented on 21 July 2015.

    SFIG notes that transactions issued before .......

    News Round-up 13 March 2014

  • Refinancing promises big savings

    Up to US$30bn of US CLO 2.0 deals could be candidates for refinancing this year, with refinancing or repricing potentially saving equity holders 20bp-50bp in liability costs. However, the pace of such activity will depend on factors such as upfront cost and secondary CLO paper providing competition for buyers.

    Individual tranche refinancing or repricing options began with the arrival of .......

    News 12 March 2014
×