CLOs

  • Greek investment partnership inked

    Sector developments and company hires

    Greek investment partnership inked
    Mount Street Group has formed a strategic partnership in Greece and Cyprus with Technical Olympic, a Greek real estate, construction and investment group. As part of the partnership and through its subsidiary PFC Premier Finance Corporation (Cyprus), Technical Olympic has entered into a Memorandum of Understanding to acquire a stake in Mount Street’s businesses in Greece .......

    Market Moves 29 April 2021

  • Convexity clues

    CLOs hold firm but opportunities arise

    Booming CLO primary activity either side of the Atlantic continues to be met with sufficient demand to keep supporting spreads. However, there are still opportunities for investors in some areas.  

    “Mezz in particular has continued to come in over the past couple of weeks,” says one investor. “The only area where we are seeing a hint of .......

    News Analysis 29 April 2021

  • Irish RPL refi prepped

    Sector developments and company hires

    Irish RPL refi prepped
    A refinancing of two Irish reperforming RMBS - European Residential Loan Securitisation 2019-PL1 and Grand Canal Securities 1 - has hit the market. Dubbed Primrose Residential 2021-1, the transaction is backed by a €869.8m portfolio of seasoned first lien performing and reperforming mortgages secured by majority owner occupied (accounting for 57.6% of the pool) and buy-to-let .......

    Market Moves 28 April 2021

  • APAC ESG expansion eyed

    Sector developments and company hires

    APAC ESG expansion eyed
    Moody’s is set to expand its Singapore office with the aim of spearheading ESG, climate and sustainable finance efforts in the Asia Pacific region, as well as fostering the ESG ecosystem in Singapore. Included in the firm’s plans are several initiatives, such as the establishment of an ESG Centre of Excellence for investor outreach, engagement and .......

    Market Moves 27 April 2021

  • Democratising data

    Stephane Michel, senior portfolio manager at the internation...

    Q: How does Federated Hermes integrate ESG in its CLO business?
    A: CLOs are still very much a universe where we are trying to build an analytical framework that is comparable to what our equity colleagues have been able to do for much longer, due to the provision of data that we haven’t got. That’s the challenge for ESG across .......

    The Structured Credit Interview 27 April 2021

  • Downgrades for 'lower quality' mall CMBS

    Sector developments and company hires

    Downgrades for ‘lower quality’ mall CMBS
    Moody's has downgraded 119 principal and interest, 26 interest-only and 11 exchangeable classes from 36 US CMBS and placed eleven P&I, one exchangeable and three IO classes under review for possible downgrade from a further two CMBS. The rating actions affect approximately US$6.2bn of securities and were prompted primarily by increased loss expectations and .......

    Market Moves 26 April 2021

  • Investor interest

    European CLOs attracting new investors to mezz and equity

    European CLO primary activity continues to roll, with seemingly unwavering investor demand supporting prices at the top of the stack. Now, investor interest is growing across the capital structure, as new players look to enter the lower tranche space.  

    As of yesterday’s close, an impressive 87 European CLOs had priced this year. Nevertheless, the three resets that printed .......

    News Analysis 22 April 2021

  • Forbearance SPV availability ends

    Sector developments and company hires

    Forbearance SPV availability ends
    The Australian Office of Financial Management has released an update on its Structured Finance Support Fund (SFSF) activities. As of 31 March 2021, total funds committed by the SFSF were A$3.8bn, including A$1.36bn public market investments and circa A$2.3bn across 45 individual warehouses sponsored by 34 eligible lenders.

    The AOFM notes that public securitisation market .......

    Market Moves 21 April 2021

  • Blockchain mortgage 'ecosystem' prepped

    Sector developments and company hires

    Blockchain mortgage ‘ecosystem’ prepped
    Liquid Mortgage has raised capital from and entered into a strategic partnership with Redwood Trust, marking the culmination of a months-long engagement, in which Redwood Trust tested Liquid Mortgage's technology and developed an actionable strategy to build a future-ready mortgage ecosystem. The partners share a common mission of utilising blockchain technology within the current market infrastructure, .......

    Market Moves 20 April 2021

  • Shifting trends

    Differing ESG impacts on credit quality considered

    ESG considerations pose higher credit risk to certain securitisation asset classes and certain global regions, with evolving regulations and shifting consumer demand exposing transactions to potential declines in asset values or cashflow. Nevertheless, structural features, short loan tenors and asset diversification can help minimise such credit negative effects.

    ESG credit considerations include a broad range of qualitative and .......

    News 15 April 2021

  • Income opportunities

    Clayton Triick, CFA, senior portfolio manager at Angel Oak Capital Advisors, answers SCI's questions

    Q: How and when did you become involved in the securitisation market?
    A: Angel Oak Capital Advisors has a long history within the US securitised markets. Originally as a distressed credit investor during the global financial crisis, Angel Oak was able to invest capital targeting deeply discounted private-label RMBS.

    As markets continued to improve over the subsequent decade, we .......

    The Structured Credit Interview 14 April 2021

  • Green auto feasibility assessments underway

    Sector developments and company hires

    Green auto feasibility assessments underway
    CO2 emissions data reporting by auto loan lenders is likely to be crucial to classifying auto loan securitisations as ‘sustainable’ or ‘green’, in order to tap demand from ESG-oriented investors, Fitch says. However, the rating agency notes that discussions with lenders imply that creating the basis for detailed CO2 emissions reporting is challenging, as the .......

    Market Moves 13 April 2021

  • Non-resident Aussie RMBS debuts

    Sector developments and company hires

    Non-resident Aussie RMBS debuts
    Brighten Home Loan is readying its inaugural RMBS - the A$250m Solaris Trust 2021-1 – which is backed by loans predominantly to non-Australian resident borrowers. S&P notes that the portfolio is not only exposed to macroeconomic events and policies that affect Australia, but also to events and policies that affect the borrowers’ countries of residence. Consequently, .......

    Market Moves 8 April 2021

  • GACS NPL ABS performance eyed

    Sector developments and company hires

    GACS NPL ABS performance eyed
    A sum of eight new GACS non-performing loan securitisations priced in late 2020, with a cumulative balance of €3.4bn (securitising a cumulative original GBV of €13.4bn of NPLs), according to JPMorgan’s latest Italian NPL Performance Tracker report. Including these transactions, Italian NPL ABS issuance has risen to €22.1bn across 38 deals (including three non-GACS transactions), .......

    Market Moves 7 April 2021

  • A turning point for investors

    KopenTech looks at US CLO trading trends in 2020 and their likely future impact

    In a period defined by a pandemic, social turmoil and an election, CLO investors increased their use of electronic trading to engage in a more efficient exchange of securities.

    With this increase in volume came an increase in data.  We highlight some of the US CLO market trends, including how increases in trading volumes have been handled by investors, and expectations for .......

    Talking Point 31 March 2021

  • Equity return boost touted

    Sector developments and company hires

    Equity return boost touted
    US CLO equity is poised to deliver double-digit returns to investors this year, paring back the underperformance seen over the past four years, according to new research from Bank of America.

    Analysts at the bank base their expectations on the fact that CLO equity market prices continue to lag, despite CLO NAV and interest distributions .......

    Market Moves 29 March 2021

  • Short-lived slowdown?

    CLO primary volumes temporarily ease but set to return

    The CLO primary market is slightly easing up into quarter-end, albeit from hitherto unseen volumes. However, any slowdown is likely to be short-lived as the market’s supply-demand dynamics kick back in in Q2, amid an increased ESG focus.

    JPMorgan CLO research reports that to the end of last week, 19 March 2021, 199 US CLOs have priced year-to-date totalling US$90.3bn .......

    News Analysis 26 March 2021

  • CLO pricing service selected

    Sector developments and company hires

    CLO pricing service selected
    SCI Valuations has been selected by Bloomberg’s Enterprise Data business to provide daily CLO debt pricing to integrate with Bloomberg’s Liquidity Assessment (LQA) tool. The integration of this data with LQA will enable Bloomberg customers to more effectively and easily view and manage their portfolios, the companies say.

    SCI Valuations provides automated valuations for US .......

    Market Moves 25 March 2021

  • Securitisation tax consultation underway

    Sector developments and company hires

    Securitisation tax consultation underway
    The UK HMRC has launched a consultation seeking views on the taxation of securitisation companies. The UK government says it has identified - through ongoing dialogue with the industry - areas where it may be beneficial to make changes to such tax regulations and is therefore keen to explore the associated benefits and potential difficulties.

    Market Moves 24 March 2021

  • Red Cross in humanitarian cat bond first

    Sector developments and company hires

    Red Cross in humanitarian cat bond first
    The first-ever humanitarian catastrophe bond covering pure volcanic eruption risk has been completed using a Guernsey ILS structure. Sponsored by the Danish Red Cross, the US$3m issuance was privately placed by Replexus and Howden Capital Markets via Dunant Re IC, an incorporated cell of Replexus ICC (Guernsey), which is managed in Guernsey by .......

    Market Moves 23 March 2021

  • CLO fallback language reviewed

    Sector developments and company hires

    CLO fallback language reviewed
    S&P has reviewed the indentures of the 870 CLOs it rates to assess Libor fallback language governing a transaction's liabilities. The majority (76%) of its rated CLO transactions closed between 2018 and 2020.

    ARRC-like fallback language can be found in 26% of the agency’s overall transactions, including 76% of the transactions that closed in 2020. .......

    Market Moves 22 March 2021
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