CLOs

  • CLO unaffected by WARF constraint mods

    Modifications to the maximum weighted average rating factor (WARF) constraint in the 80 existing trading covenant matrices in Gateway II Euro CLO - a cash CLO - will not affect ratings on the notes, according to Moody's.

    The change in WARF constraint, which Moody's has been informed does not require the consent of any of the noteholders, is viewed as .......

    News Round-up 31 May 2011

  • Permacap adds director

    Greenwich Loan Income Fund has appointed James Carthew to its board as a non-executive director. He was previously a fund manager, responsible for managing Advance UK Trust and Advance Focus Fund, a Guernsey domiciled investment company. He was also on the board of Progressive Asset Management, an asset management group that manages a number of UK and emerging market funds.

    Job Swaps 18 May 2011

  • Balance sheet CLO performance praised

    Moody's has commented on the outstanding credit performance of bank balance sheet CLO transactions during the economic crisis between 2007 and 2010. Although investors continue to show interest in these transactions - which they view as offering stability, diversification and low credit risk - the supply from arranging banks is falling short of demand. This comes as a result of .......

    News Round-up 16 May 2011

  • CLO analytics tool launched

    Thomson Reuters has launched LPC Collateral, a data and analysis-driven solution designed to improve analysis and transparency in the CLO market. The product links Thomson's loan end-of-day data to the underlying assets held in CLO portfolios to provide analysis to CLO traders and investors.

    The new tool provides a detailed view of the underlying assets, enabling users to evaluate deal .......

    News Round-up 16 May 2011

  • Policyholder group reply filed

    The policyholder group on Friday filed its reply brief with the New York Court of Appeals in Albany in relation to its US$5bn fraudulent conveyance action against MBIA over its 2009 split (SCI passim). Oral argument in the appeal will be heard in Albany on 31 May and is expected to posit that: the Appellate Division Majority's "collateral attack" theory .......

    Job Swaps 16 May 2011

  • Symphony CLO takes shape

    Further details have emerged about Symphony Asset Management's forthcoming CLO, Symphony CLO VII. Arranged by Morgan Stanley, the transaction comprises seven classes of notes, including one subordinated tranche and a US$334m class A tranche provisionally rated Aaa by Moody's.

    The transaction is collateralised primarily by broadly syndicated first-lien senior secured corporate loans. At least 90% of the portfolio must be .......

    News Round-up 13 May 2011

  • Pace of CLO principal payments changing

    US cashflow CLO managers are increasingly looking to increase WAL tests in the transactions they manage or extend their CLOs' reinvestment periods, according to S&P. The agency says managers are typically seeking greater flexibility when choosing loans for reinvestment, but in the process may change the pace of principal repayment.

    "The amendments we have reviewed to date have not had .......

    News Round-up 12 May 2011

  • BlackRock CLO firms up

    Further details have emerged on BlackRock Financial Management's forthcoming US$400m BMI CLO I. Arranged by Citi, the transaction is expected to comprise six tranches, including one tranche of subordinated notes and a US$259m class A-1 tranche rated Aaa by Moody's.

    BMI CLO I is collateralised primarily by broadly syndicated first-lien senior secured corporate loans. At least 90% of the portfolio .......

    News Round-up 10 May 2011

  • GSC Chapter 11 hearing due

    A hearing is to be held before the bankruptcy court on 25 May to consider the joint Chapter 11 plan for GSC Group and its affiliated debtors. Investor notices for the GSC European CDO I-R, II and V CLOs note that the proposed plan may be inconsistent with the provisions of the collateral management agreement, however.

    Specifically, the plan proposes .......

    Job Swaps 10 May 2011

  • CLO pricing service launched

    Thomson Reuters has launched a CLO evaluated pricing service delivered via its distribution platform - DataScope Select. This new pricing capability will provide end-of-day valuations for global cash CLOs, including both broadly syndicated and middle market deals.

    The offering utilises Thomson Reuters LPC loan pricing platform to calculate and assess the weighted average price of a CLO's portfolio of assets, .......

    News Round-up 9 May 2011

  • Debt restructuring fund closes

    Black Diamond Capital Management has closed its US$800m BDCM Opportunity Fund III. The fund will work to strategically deploy capital, with the goal of gaining control of highly attractive companies primarily through the purchase and subsequent restructuring of debt securities. In doing so, Black Diamond says it seeks to acquire middle-market companies that possess strategic assets and are market leaders .......

    News Round-up 6 May 2011

  • Permacap undertakes strategic review

    Greenwich Loan Income Fund (GLIF) is undertaking two significant steps that it says are consistent with its strategy to take advantage of market opportunities and optimise returns from its investments in the loan market.

    First, Berkshire Capital has been engaged to undertake a review of the company's exposure to the CLO market, which is currently through GLIF's holding of 100% of .......

    Job Swaps 27 April 2011

  • Attractiveness of CLOs versus CEFs weighed

    CLOs and leveraged loan closed-end funds (CEFs) offer structural trade-offs for senior and junior investors, as well as leveraged loan managers, according to Fitch. While both structures are intended to offer leveraged exposure to a diversified pool of leveraged loans, they vary in terms of their regulatory and operating frameworks, investment flexibility, leverage levels and structural triggers.

    Regardless of their .......

    News Round-up 27 April 2011

  • CLO manager replacement confirmed

    The replacement of Octagon Credit Investors (UK) by Ares Management as investment manager on the OCI Euro Fund I has been confirmed (SCI 17 March). Moody's has determined that the move will not cause the current ratings of the notes to be reduced or withdrawn. The agency does not express an opinion as to whether the amendment could have other, .......

    Job Swaps 20 April 2011

  • CSAM CLO prepped

    Further details have emerged on Credit Suisse Asset Management's forthcoming US$410m Madison Park Funding VII CLO. The transaction is expected to close on 18 May via Bank of America Merrill Lynch.

    Rated by S&P, the deal comprises US$255m triple-A rated class A notes (which are expected to price at 125bp over three-month Libor), US$37.5m double-A class Bs (185bp over), US$26m .......

    News Round-up 20 April 2011

  • Sea change in CLO opinion

    New issuance growth for 2011in the US CLO market is expected to be between US$5bn-US$20bn, according to Fitch. A survey of new and existing investors carried out by the agency last month found a consensus that as the market evolves, investors believe the CLO structure should evolve as well, with a particular change of opinion on post-closing amendments.

    The new .......

    News Round-up 20 April 2011

  • Combined firm to proceed with new CLO

    The merger of Deerfield Capital and CIFC (see SCI 22 December 2010) has closed. The firms will now operate as a combined company under the name CIFC Deerfield Corp.

    The firm's ceo Peter Gleysteen says: "This merger is about growth and the unprecedented opportunities we see for asset management products, especially ones backed by senior secured corporate loans. In fact, .......

    Job Swaps 14 April 2011

  • Boost for structured products head

    Joe Naggar, head of structured products at GoldenTree Asset Management, has joined the firm's partner executive committee. Since joining GoldenTree in 2007, Naggar has successfully built out the firm's structured products capabilities and an investment team that continues to source and manage attractive investments.

    GoldenTree's partner executive committee was originally formed in October 2009 to focus on key areas of .......

    Job Swaps 13 April 2011

  • CLO comment period extended

    Moody's has extended the comment period on proposed changes to its modelling framework for cashflow CLOs (see SCI 23 March), as requested by some market participants. The rating agency will now be accepting comments until 22 April 2011, an extension from the original deadline of 8 April.

    .......

    News Round-up 11 April 2011

  • Credit opportunities fund prepped

    KKR Asset Management is prepping a closed-end Global Credit Opportunities Fund. The fund will invest at least 80% of its assets in first- and second-lien secured and unsecured loans, as well as fixed income securities, including CDS, CLOs and Trups. These assets can be investment grade or sub-investment grade and the portfolio can be leveraged by up to 50%.

    .......

    News Round-up 5 April 2011

  • Static CLO closed

    KKR Financial Holdings has closed a US$400m static CLO dubbed KKR Financial CLO 2011-1. The transaction involved a privately negotiated financing agreement with an undisclosed third-party senior lender that accounts for the US$300m senior tranche, which priced at 135bp over three-month Libor. KKR retained a US$100m residual interest, consisting of US$20m mezzanine notes and US$80m subordinated notes.

    The CLO matures .......

    News Round-up 1 April 2011
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