CLOs

  • CLO manager concentration highlighted

    The ten largest CLO managers manage over 50% of US CLOs and 30% of European CLOs, Moody's notes in its latest CLO Interest publication. Nevertheless, the entrance of new managers to the market appears to have more than offset the consolidation of managers that prevailed between 2009 and 2011.

    The number of US managers declined by roughly 23% to 120 .......

    News Round-up 9 October 2013

  • Validation tool enhanced

    Interactive Data has released a new set of transparency and workflow enhancements to its Vantage solution. The enhanced Vantage Price Validation Workflow module aims to enable buy- and sell-side firms to more efficiently manage their price review process, thereby reducing the operational cost of meeting current regulatory requirements.

    The module is designed to serve as a central hub for client .......

    News Round-up 8 October 2013

  • CLO manager handbook released

    Fitch has published the first edition of its US CLO Asset Manager Handbook, which contains profile reports for 46 active US CLO managers. The reports are designed to provide investors with a consistent framework for evaluating and benchmarking managers.

    The reports contain a combination of key manager facts and attributes, including corporate structures, key personnel, assets under management and CLOs .......

    News Round-up 8 October 2013

  • 2.0 structuring tool launched

    Lewtan has launched a structuring tool geared towards the 'securitisation 2.0' environment. Dubbed ABSNet Modeler, the firm says that the offering is unique due to the transparency of the cashflow waterfall and resulting output.

    The tool is designed to assist users at each step of the deal structuring process with advanced cashflow analytics to run deal, pool, tranche and loan-level .......

    News Round-up 8 October 2013

  • PFI CLO restructured

    NIBC Bank has restructured its project finance CLO, Adriana Infrastructure CLO 2008-I, and placed the entire £477.8m class A1 notes with Aviva Investors. The £620.6m transaction is backed by sterling-denominated loans to operational public-private partnership projects across 47 borrowers in the UK originated by NIBC.

    The restructuring involved an increase in the credit enhancement of the class A1 notes (from .......

    News Round-up 8 October 2013

  • CLO strategic partnership formed

    Sound Harbor Partners and Macquarie Credit Investment Management have formed a strategic partnership to launch a series of CLO funds. The deal brings the scale and resources of Macquarie to the boutique investment house's investors, enabling Sound Harbor to expand its client base, investment talent and assets under management.

    .......

    Job Swaps 4 October 2013

  • Investment manager targets Dexia

    New York Life Investments is set to acquire full ownership of Dexia Asset Management for €380m, expanding the company's reach into Europe and Australia. New York Life already has eight CLOs and the acquisition will further strengthen its credit credentials.

    .......

    Job Swaps 3 October 2013

  • CLO equity economics concern investors

    Market participants do not believe risk retention rules should apply to CLOs and responses to JPMorgan's latest client survey show it is not just CLO managers who are saying so. However, CLO equity concerns are causing even greater worry than risk retention.

    Investor cash positions for the start of the final quarter are generally higher than they were in Q3, .......

    News Round-up 2 October 2013

  • Vintage variety for CLO session

    Paper from 2006 and 2007 dominated US CLO secondary trading yesterday. Bonds from deals issued as recently as this year and as long ago as 2003 were also captured by SCI's PriceABS data, however.

    Price talk for the 2013 tranches was concentrated from the mid-80s to the mid-90s. An example of the former was the APID 2013-12X F .......

    Market Reports 26 September 2013

  • Independent credit advisory formed

    Rod Moulton has launched Euro Credit Risk (ECR) with headquarters in London and offices in Milan and Madrid. The firm will offer independent expertise to investors, hedge funds, investment banks, loan providers and other parties holding or acquiring legacy loan portfolios of secured, unsecured or commercial debt.

    Moulton serves as ceo, while George Patellis will serve as chairman. Moulton was .......

    Job Swaps 25 September 2013

  • CLO diversification on the up

    A new JPMorgan overlap study implies that diversification among the top loan issuers across the US CLO market has increased. However, the currently challenged CLO arbitrage is expected to continue testing managers' ability to navigate through portfolio diversity issues, such as WAL limits.

    The JPMorgan sample represents 1045 CLOs containing roughly US$302bn of assets. The sample comprises 260 CLO 2.0 .......

    News 24 September 2013

  • Barclays credit trader joins asset manager

    ECM Asset Management has appointed Chris Telfer as specialist portfolio manager in London. He will trade financials and sovereigns across ECM's strategies and report to co-cio Ross Pamphilon.

    Telfer was previously a credit trader at Barclays Capital, working on credit derivatives, leveraged loans and distressed trading. Before that he was at Morgan Stanley.

    .......

    Job Swaps 24 September 2013

  • Limited impact from SME CLO update

    S&P has published a transition study in connection with the implementation of its updated criteria for assessing European SME CLOs (SCI 11 January). The agency says the move has had a relatively limited negative ratings impact, affecting approximately one-third of its SME CLO ratings universe.

    Following the publication of the updated criteria, S&P placed its ratings on 100 European SME .......

    News Round-up 20 September 2013

  • Supply sought

    Increased loan issuance not enough for CLOs

    Sourcing appropriate collateral is becoming tougher for European CLOs. Refinancing deals providing competition, new loan spreads flexing tighter and lingering regulatory concerns are holding back issuance in the sector.

    Unlike loan issuance for parts of the European RMBS or consumer ABS markets, leveraged loan issuance for CLOs has been stronger than at any time since the crisis, but is still .......

    News Analysis 19 September 2013

  • Model integration issues persist

    Principia Partners has released the findings of a survey focusing on ABS, MBS and CDO investors' use of cashflow and waterfall models. The results show that while the growing commoditisation of issuer reporting, collateral performance and loan level data has benefitted the modelling of cashflows, it is not enough to lighten the burden investors carry when building and managing cashflow .......

    News Round-up 18 September 2013

  • Loan financing shortfall possible

    JPMorgan CDO analysts estimate that US$304bn US and €81bn European CLOs remain outstanding, representing a global CLO market of US$416bn. They forecast that by 2016 or 2017 the CLO 1.0 market could shrink by half to around US$72bn, with triple-As paying down entirely by 2021.

    The JPMorgan sample comprises 1,086 US CLOs (US$486bn face value) and 276 European arbitrage CLOs .......

    News 17 September 2013

  • Polygon appoints business head

    Polygon Global Partners has added Douglas Ross to its team in New York. He joins as North America head of business development and will market Polygon's hedge fund products, including CLOs.

    Ross joins from Field Street Capital Management, where he also held a senior business development role. Before that he worked at Normandy Hill Capital and Tiger Management.

    .......

    Job Swaps 17 September 2013

  • Hedge fund adds CLO pro

    Joe Matteo has joined Credit Value Partners in New York. The CLO specialist was previously at Par-Four Investment Management and began his career at Merrill Lynch.

    .......

    Job Swaps 16 September 2013

  • Back to business for Euro CLOs

    Secondary markets surged yesterday and the European CLO sector was no exception. Activity is picking up as the market moves into autumn, with a significant list circulating yesterday and another one planned for the start of next week.

    "An ABS CDO BWIC came out yesterday, which was really interesting. Some of the bonds on that list were very well bid," .......

    Market Reports 13 September 2013

  • CLO call, re-pricing risk discussed

    A manager's ability to reinvest - specifically regarding WAL tests - must be considered when analysing US CLO call and re-pricing risk, according to Wells Fargo structured products analysts. They believe that 2.0 deals already failing, or close to failing, WAL tests are more likely to be called - even if primary triple-A spread levels may suggest otherwise.

    "All else .......

    News Round-up 11 September 2013

  • Leveraged loan vet enlisted

    Shenkman Capital Management has appointed David Lerner as svp and portfolio manager for bank loans. He joins from Credit Suisse's credit investments group and will lead Shenkman's bank loan business.

    Lerner worked at Donaldson, Lufkin & Jenrette until its merger with Credit Suisse. Before that he worked at First Dominion Capital, in the leveraged finance group of Mitsubishi Trust and .......

    Job Swaps 11 September 2013
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