CLOs

  • More CLO 1.0 redemptions due

    Optional redemptions for CLO 1.0 deals - particularly 2005-2007 vintages - will continue this year, but there will be fewer for CLO 2.0 deals as investors instead turn to individual tranche refinancing features. Around 80% of 2005-vintage deals remain outstanding, as do more than 90% of deals from 2006 and 2007, notes Moody's.

    Last year the most heavily redeemed vintage .......

    News Round-up 22 January 2014

  • CLO portfolio to spin off?

    GLI Finance has disclosed in its latest trading update that preparatory work for the potential transfer of its CLO portfolio into a separately listed fund is underway. GMB Partners is advising GLIF on realising value from its CLO investments (SCI 22 April 2013) and the company intends to assess market support for an offering in the first half of the .......

    Job Swaps 22 January 2014

  • Volcker-compliant CLOs emerging

    Banks that own non-compliant transactions have a number of options if regulators do not provide clarity on the Volcker Rule as it pertains to CLOs (SCI 16 January), according to Wells Fargo CDO strategists. In the meantime, the uncertainty has pushed triple-A spreads slightly wider and slowed the pace of new issuance.

    Banks are mainly expected to attempt, on a .......

    News Round-up 21 January 2014

  • Key person switch proposed

    The issuer and portfolio manager for Harvest CLO V intend to amend the provisions of the portfolio management agreement to replace Paul Carman as a key person with Peter Goody. The trustee has already concurred that the proposed amendments are not materially prejudicial to the interests of any noteholders.

    Goody has 17 years of experience in the leveraged loan market .......

    Job Swaps 17 January 2014

  • Surprise rally for Euro CLOs

    The European CLO secondary market has kicked off the year with a major rally, with prices significantly higher than they were in December. Activity has mainly focused on the mezzanine space, although tightening further up the stack is also possible and tightening in the primary market is expected.

    "Hedge funds have been very active over the last two weeks, particularly .......

    Market Reports 17 January 2014

  • CLO cushions being squeezed

    US CLO 2.0 deals now account for around half of the outstanding market. OC cushions among those transactions have been decreasing as leverage has increased, but structures appear to remain well protected against default shock.

    JPMorgan CDO analysts examined 229 arbitrage US CLOs issued from 2Q11 until 3Q13, representing about 70% of the deals in the CLO 2.0 market. The .......

    News 16 January 2014

  • 'Qualified CLO' mooted

    The Loan Syndications and Trading Association, SFIG and SIFMA have submitted a further letter to the US regulatory agencies regarding risk retention as it pertains to CLOs. The associations propose an approach that would create a definition of a 'qualified CLO'.

    Specifically, under the approach, open market CLOs that meet a series of criteria would qualify to satisfy the credit .......

    News Round-up 16 January 2014

  • Call for CLO carve-out

    The Financial Services Roundtable (FSR), the Loan Syndications and Trading Association (LSTA), SFIG and SIFMA have submitted a letter to the regulatory agencies regarding the definition of 'ownership interest' under the Volcker Rule as it pertains to CLOs. Specifically, the associations request that regulators provide confirmation in a FAQ or other guidance that CLO debt securities that have a contingent .......

    News Round-up 16 January 2014

  • Manager adds former Citi chief

    Napier Park Global Capital has named John Havens as non-executive chairman and partner. He was most recently president and coo at Citigroup. Havens has also worked at Morgan Stanley for almost two decades and began his career as a trader at Kidder Peabody.

    .......

    Job Swaps 15 January 2014

  • Bright spots

    Mixed fortunes in structured finance recruitment

    Certain areas of the structured finance recruitment sector are growing, but large parts remain muted. European activity is all but moribund, while the picture in the US is mixed.

    The US securitised markets show several areas of growth, not least in CLOs. While the CMBS and RMBS sectors are mixed, the ABS market is anticipated to become even quieter going .......

    News Analysis 15 January 2014

  • Foundation for continued growth?

    The US CLO and CMBS sectors saw impressive issuance in 2013, as the recovery in the asset classes continued apace. European volumes, meanwhile, reflect the growing diversity of jurisdictions on offer across the region's ABS market.

    Last year proved to be impressive for US CMBS 3.0 issuance, with conduit volumes totalling US$53.1bn, a 65% increase from US$32.2bn in 2012. US single-borrower/single-asset .......

    News 14 January 2014

  • Manager adds capital markets head

    The Carlyle Group has appointed Boris Okuliar as head of capital markets for global market strategies, which is a newly created position. He will also serve as head of capital markets for Carlyle GMS Finance.

    Okuliar was previously md and head of leveraged capital markets in London for UBS, but will be based in New York at Carlyle. He has .......

    Job Swaps 13 January 2014

  • Italian SME review released

    Fitch has published its latest SME market review, focusing on the Italian SME securitisation sector. The majority (99.9%) of enterprises active in the Italian economy are SMEs, accounting for 81% of the workforce. Yet SMEs in the country face an unfavourable business environment: the 2013 World Bank Doing Business survey ranked Italy 30 out 31 OECD countries in the ease .......

    News Round-up 10 January 2014

  • FINRA urged to revisit TRACE proposal

    SIFMA has submitted a comment letter to the SEC on FINRA's proposed rule change relating to TRACE reporting and dissemination of transactions in additional ABS (SCI 5 November 2013). The association requests that FINRA not implement this proposal and instead engage in further discussion with the industry as to how best to preserve ABS market liquidity and re-propose this proposal .......

    News Round-up 9 January 2014

  • CLO portfolio manager appointed

    3i Debt Management has appointed Michael Curtis as a portfolio manager. He has over 14 years of experience in the CLO and structured finance markets and will be based in London.

    Curtis was previously at Alpstar Capital where he was responsible for managing two CLOs, credit funds and separately managed accounts and he has also worked at CIBC World Markets. .......

    Job Swaps 8 January 2014

  • UBS credit vet moves on

    Coherence Capital Partners has hired Michael Cannon as a senior portfolio manager and partner in New York. He was most recently co-head of investment grade credit trading at UBS Investment Bank. Previous roles at UBS saw him take responsibility for distressed credit trading and credit derivatives trading.

    .......

    Job Swaps 8 January 2014

  • CLO credit quality to remain strong

    The total number of US CLOs in 2013 increased by 56% on the previous year, according to Appleby. The 182 CLOs in aggregate issued last year represents a total value of US$86bn, eclipsing the total issuance for 2012 by US$33.5bn.

    "The CLO market in the second half of 2013 continued to expand as the low interest rate environment has pushed .......

    News Round-up 8 January 2014

  • CLO investors seek evolution

    Further structural evolution remains a priority for the US CLO market, with respondents to JPMorgan's Q1 client survey highlighting time tranching and senior/junior tranching as the two triple-A features they would most like to see. The managers, investors and other respondents also identified step-up coupons and fixed rate tranches as interesting triple-A structural features.

    Triple-A CLO spreads are generally expected .......

    News 7 January 2014

  • HQLA move welcomed

    Further details have emerged on the EBA's updated definition of high quality liquid assets (HQLA) in relation to RMBS (SCI 20 December). Under the clarifications, RMBS bonds with the following criteria will be counted as HQLA for the purposes of the LCR: ratings of at least AA-/Aa3; minimum issue size of €100m-equivalent; maximum time to maturity of five years; and .......

    News Round-up 24 December 2013

  • Cherry picking

    Euro relative value trades explored

    The European securitisation market offers a number of relative value opportunities going into 2014. Top picks include CLO 1.0, mezzanine CMBS and peripheral RMBS bonds.

    European ABS relative value is being driven by seemingly irrational investor behaviour and US appetite, according to Peter Nowell, head of ABS trading at BNP Paribas. He cites Dutch RMBS as an example: the sector .......

    News Analysis 24 December 2013

  • Rules of engagement

    Dialogue helps take edge off regulatory requirements

    Regulatory decisions and indecision have set the tone for structured finance around the world since the financial crisis. The European market in particular has been choked by tight guidelines, but there are signs of a softening regulatory stance as the industry continues to engage with regulators and policymakers.

    "The structured finance market is not dead. It has restarted in the .......

    News Analysis 24 December 2013
×