CLOs

  • Resilient CLO market in July despite early August volatility

    Kartesia sees spreads tightening slightly across capital structure throughout the month

    The CLO market demonstrated continued strength in July, with spreads tightening slightly across the capital structure, according to Kartesia, a European specialist provider of capital solutions. 

    “Euro CLO triple-A spreads closed the month 2.5bps tighter in secondary, and 7bps in primary at DM+97.5/DM+130, respectively,” say head of CLOs Michael Htun and structured credit associate Panagiotis Dounavis in the .......

    News 20 August 2024

  • JHG bolsters private credit capabilities

    Market updates and sector developments

    Janus Henderson Group has entered into a definitive agreement to acquire a majority stake in Victory Park Capital Advisors (VPC). With a nearly two decade-long track record of providing customised private credit solutions to both established and emerging businesses, VPC complements Janus Henderson’s securitised credit franchise and expertise in public ABS markets.

    Founded in 2007 by Richard Levy .......

    Market Moves 12 August 2024

  • Angel in ETFs

    Angel Oak's active structured credit ETF takes off

    The Structured Credit Interview 7 August 2024

  • Reset boost

    Portfolio quality upgraded amid European CLO resets in H1 24

    The portfolio credit quality of European CLOs that were reset in the first half of 2024 were improved compared with the original transactions, according to Fitch Ratings’ latest Monthly European CLO Index report.

    “Before the resets, the portfolio average triple-C exposure was 2.8%, consistent with other Fitch-rated reinvesting EMEA CLOs, and with defaulted assets accounting for no more .......

    News 7 August 2024

  • Esoteric excellence

    Reed Smith doubling down on esoterics

    Top structured finance law firm Reed Smith has a developed esoteric practice, but is looking to beef up even more, says newcomer Jeffrey Stern.

    “This is one of the focuses within the structured finance practice, and I expect to .......

    The Structured Credit Interview 6 August 2024

  • Job swaps weekly: DWS boosts alts franchise

    People moves and key promotions in securitisation

    Market Moves 2 August 2024

  • BNPP set to acquire AXA IM

    Market updates and sector developments

    AXA has entered into exclusive negotiations to sell its asset manager AXA Investment Managers (AXA IM) to BNP Paribas for cash proceeds of €5.1bn. Under the terms of the proposed transaction, AXA and BNP Paribas would also enter into a long-term strategic partnership, under which BNP Paribas would provide investment management services to AXA.

    Additionally, AXA would receive .......

    Market Moves 1 August 2024

  • Hayfin inks MBO

    Market updates and sector developments

    Hayfin Capital Management has entered into an agreement with private investment firm Arctos Partners to support a management buyout of the business, acquiring British Columbia Investment Management Corporation’s (BCI) majority stake. The new partnership delivers Hayfin’s long-term objectives of greater team ownership, alignment and incentivisation, as well as generating superior and consistent risk-adjusted returns for both Hayfin’s and Arctos’ .......

    Market Moves 30 July 2024

  • Ears pricked

    Interest returning to CRE market as conditions improve

    Alternative real estate investors say securitisation is set to remain a key tool to increase market share amid persistent interest rate challenges.

    In particular, CRE lending is poised to become a primary focus, as .......

    News 30 July 2024

  • Northern green light

    Norwegian securitisation to benefit from 'plug-and-play' scenario

    The EEA’s long-awaited passage of the EU Securitisation Regulation should finally open the door for Norway’s securitisation market (SCI 14 June). Indeed, the jurisdiction is expected to hit the ground running. 

    Markus Nilssen, partner at BAHR, explains: “Banks here are exposed to higher capital requirements than elsewhere in Europe; for example, a 4.5% systemic risk buffer on .......

    News Analysis 28 June 2024

  • FHFA approves second mortgage pilot

    Market updates and sector developments

    The FHFA has provided conditional approval for Freddie Mac to engage in a limited pilot to purchase certain single-family closed-end second mortgages (SCI 14 May). The aim of the pilot is to explore whether such a product effectively advances Freddie Mac’s statutory purposes and benefits borrowers, particularly in rural and underserved communities.

    The conditional approval of the pilot .......

    Market Moves 24 June 2024

  • Private credit JV formed

    Market updates and sector developments

    Stifel Financial Corp and Lord Abbett have formed a substantial leveraged lending joint venture, which compliments the existing capabilities of both firms. Called SBLA Private Credit, the JV will focus on both new issue and existing loans to small and mid-sized portfolio companies of financial sponsors.

    SBLA Private Credit brings together two of the industry’s most established brands, .......

    Market Moves 17 June 2024

  • Norway gets SecReg green light

    Market updates and sector developments

    The EU Securitisation Regulation was incorporated into the EEA Agreement on 12 June and it is widely expected that the rules will come into force in Norway on 1 January 2025. The regulation covers both true sale and synthetic securitisations, as well as rules on STS securitisations. 

    Legislative rules implementing the Securitisation Regulation in Norwegian law have already .......

    Market Moves 14 June 2024

  • Job swaps weekly: Paul Hastings poaches private credit team

    People moves and key promotions in securitisation

    This week’s round-up of securitisation job swaps sees Paul Hastings poach a team of restructuring, private credit and special situations lawyers from King & Spalding. Elsewhere, Apollo-allied credit solutions provider Cadma Capital Partners continues to beef up its leadership team, while Kirkland & Ellis has lured a structured private credit lawyer to its debt finance group.

    Collectively, the .......

    Market Moves 7 June 2024

  • Five-point plan

    EU securitisation reform package mooted

    AFME has published a position paper that outlines a five-point plan to revive the securitisation market in the EU. Entitled ‘EU Securitisation back on track’, the paper describes the different ways that securitisation can be used as a tool to support EU growth and strategic objectives, identifies the regulatory hurdles that currently impede its impact and outlines a package .......

    News 6 June 2024

  • GACS 2.0 ABS 'better positioned' than GACS 1.0

    Market updates and sector developments

    GACS 2.0 NPL securitisations appear to be better positioned than GACS 1.0 securitisations, both from an asset side perspective - in terms of greater accuracy of original business plans, better collateralisation and healthier performance - and from a structural perspective, in terms of higher levels of conversion rates and hedging status. A new Morningstar DBRS commentary suggests that this .......

    Market Moves 24 May 2024

  • Transition finance: Mobilising capital - video

    Morningstar Sustainalytics' Begum Gursoy speaks to SCI about...

    Begum Gursoy, director at Morningstar Sustainalytics, speaks to SCI's Kenny Wastell about transition finance in the context of hard to abate industries. Gursoy outlines activity levels and deal pipelines in transition finance, the way in which a ratings agency goes about assessing environmental impact in deals, the role of labels in any given transaction, and the importance of being alert .......

    News Analysis 23 May 2024

  • CLOs: Improving arbitrage - video

    TwentyFour Asset Management's Elena Rinaldi speaks to SCI ab...

    Elena Rinaldi, portfolio manager on TwentyFour Asset Management's ABS team, speaks to SCI's Corinne Smith about the CLO market and ESG initiatives within the space. Rinaldi discusses the key drivers behind the record levels of issuance in Q1 2024, how a wave of loan repricings in both Europe and the US are affecting CLO portfolios, the potential impact of .......

    News Analysis 16 May 2024

  • AI credit analysis project launched

    Market updates and sector developments

    Stratiphy and Chenavari Financial Group have joined forces to develop custom AI tools aimed at improving the quality of and mitigating the subjectivity within credit analysis. By harnessing the wealth of existing data and employing a range of AI techniques, the project aims to enhance efficiency, pricing capability and precision in forecasting within credit analysis.

    Representatives of each .......

    Market Moves 13 May 2024

  • Attraction stations

    SRT relative value in focus

    The relative value of SRT transactions is attracting a swathe of new as well as former investors to the space, despite the fact that spreads are tightening. Nevertheless, the creation of an active secondary market remains remote.

    Several investors have recently returned to the SRT market after long spells away. For instance, Cheyne Capital last month announced it .......

    News Analysis 13 May 2024

  • PRA and FCA confirm new UK securitisation rules

    Market updates and sector developments

    The Financial Conduct Authority’s (FCA) and Prudential Regulation Authority (PRA) have published policy statements on new securitisation rules. Alongside the UK Treasury’s draft statutory instrument on securitisation, which was published last week, the changes will come into force on 1 November and will replace EU securitisation regulations.

    The PRA’s statement was published alongside the Securitisation Instrument 2024 section of the PRA Rulebook.

    The .......

    Market Moves 2 May 2024
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