CLOs

  • Refi surge

    Spread compression drives wave of CLO refinancings

    European CLO refinancings and resets have been prominent this year, driven by strong spread compression. While such activity is expected to continue, capacity constraints could leave some deals incomplete.

    So far this year, the European market has seen 12 deals refi or reset, compared with seven new issues. Over 40 deals have already released cleansing notices, with the latest three .......

    News Analysis 17 February 2021

  • Maritime financing facility agreed

    Sector developments and company hires

    Maritime financing facility agreed
    Maritime and offshore alternative capital provider Fleetscape Capital has entered into an innovative financing structure with Macquarie that provides a more efficient offer to vessel owners seeking higher leverage situations. The structure utilises securitisation principles and enables Fleetscape to provide sale-and-leaseback or unitranche financing on competitive terms. Coupled with Fleetscape’s transaction execution capabilities and streamlined documentation, the .......

    Market Moves 16 February 2021

  • MBIA litigation settled

    Sector developments and company hires

    MBIA litigation settled
    MBIA Insurance Corporation has entered into an agreement to settle the litigation it filed in 2009 against Credit Suisse and certain affiliated entities (SCI passim). The settlement follows a post-trial decision by the Court awarding MBIA Corp approximately US$604m in damages and, pursuant to the settlement, Credit Suisse has paid MBIA Corp US$600m.

    This amount materially .......

    Market Moves 15 February 2021

  • UKML tender offers mooted

    Sector developments and company hires

    UKML tender offers mooted
    Coventry Building Society subsidiary Godiva Mortgages is set to purchase from UK Mortgages Corporate Funding two buy-to-let mortgage portfolios originated by Godiva and currently financed within the Cornhill No. 6 and Malt Hill No. 2 RMBS vehicles. Subject to successful completion, the timing of these sales is expected to coincide with the transactions’ payment dates in .......

    Market Moves 12 February 2021

  • UK industrial CMBS prepped

    Sector developments and company hires

    UK industrial CMBS prepped
    Bank of America is in the market with a £340.1m CMBS sponsored by Blackstone. Dubbed Taurus 2021-1 UK, the transaction is backed by a two-year floating rate loan (with three one-year extension options) secured by the borrower’s interests in 45 industrial assets across the UK totalling 4.1 million square-foot of floor area.

    The largest asset .......

    Market Moves 10 February 2021

  • Special situations strategy launched

    Sector developments and company hires

    Special situations strategy launched
    Bardin Hill Investment Partners has announced the final close of the Bardin Hill Opportunistic Credit Fund and a parallel side-car vehicle, with total commitments of approximately US$600m. The firm’s flagship closed-end strategy received backing from new institutional investors globally, as well as from existing Bardin Hill clients.

    The strategy identifies and executes on stressed, distressed, .......

    Market Moves 9 February 2021

  • Constructive outlook

    Deborah Shire, global head of structured finance at AXA Inve...

    Q: What were the drivers behind restructuring the AXA IM business into two key divisions – the Alts unit and the Core unit?
    A: The business was restructured in March last year (SCI 11 March 2020), with the objective of developing two strategic businesses and boosting the commercial momentum behind them. The aim was to create a dedicated salesforce .......

    The Structured Credit Interview 9 February 2021

  • NPL SRT agreement inked

    Sector developments and company hires

    NPL SRT agreement inked
    Hoist Finance has signed a co-operation agreement with Magnetar Capital that provides for new portfolio investments on a pan-European level and will create a framework for future purchases in the current regulatory environment. The aim is to make securitisation an integral part of a sustainable business model for Hoist and strengthen its purchase capabilities.

    The .......

    Market Moves 8 February 2021

  • True to form

    Top tier CLO managers lead the way, but some distinguish themselves further

    Leading US CLO managers for the most part continued to retain their position as the most consistent top performers throughout last year in the face of Covid-driven volatility. However, four managers managed to distinguish themselves still further by combining top-tier returns with outstanding risk management. 

    “The better CLO managers performed throughout the Covid crisis much better than the .......

    News Analysis 8 February 2021

  • Iberian NPL ABS performance eyed

    Sector developments and company hires

    Iberian NPL ABS performance eyed
    The cumulative collection ratio for the DUERO 1 non-performing loan securitisation has consistently breached its trigger level for an interest subordination event – which is set at 90% - since the April 2020 reporting period, according to JPMorgan’s latest Portuguese & Spanish NPL ABS Performance Tracker publication. After dropping to 68.4% in April from 106.1% .......

    Market Moves 5 February 2021

  • Motor insurer preps ILS strategy

    Sector developments and company hires

    Motor insurer preps ILS strategy
    UK specialist motor insurer ERS Group is set to launch an integrated ILS offering as part of its plans to progress its commercial expansion. Three complementary investment strategies will be offered: an open-ended mandate with a remit to invest across both public, private and non-life ILS, with semi-annual liquidity; a closed-ended, higher risk and higher .......

    Market Moves 4 February 2021

  • Credit manager merger

    Sector developments and company hires

    Credit manager merger
    Cairn Capital Group is set to acquire and merge with Bybrook Capital, a specialist distressed credit manager based in London. The merger will create a diversified alternative credit manager with approximately US$8bn in assets under management across public, private, performing and distressed investment opportunities. Through the transaction, Mediobanca will reaffirm its position as a majority shareholder in .......

    Market Moves 3 February 2021

  • Euro CLO shift

    Primary market comes into focus

    A buoyant start to the year for the European CLO market has been supported by strong secondary market activity driving spreads to new tights in January. Meanwhile, the primary market got off to a slow start, but over the past week has begun to attract increasing attention.  

    “The overall recovery in the European CLO market from the Covid-driven .......

    News Analysis 1 February 2021

  • PHEAA investor forum formed

    Sector developments and company hires

    PHEAA investor forum formed
    PHEAA has launched a series of consent solicitations seeking investor approval to amend the terms of indentures related to its outstanding tax-exempt bonds and notes issued by various PHEAA student loan ABS trusts, for which the organisation acts as administrator. The amendments would provide for the flexibility to sell the student loans pledged under certain indentures .......

    Market Moves 29 January 2021

  • UK social bond debuts

    Sector developments and company hires

    UK social bond debuts
    Kensington is prepping its inaugural STS and what is believed to be the UK market’s first ESG RMBS. Dubbed Gemgarto 2021-1, the £472m transaction is labelled as a social bond and is backed by a pool of UK specialist prime, performing, first-ranking owner-occupied mortgages.

    The loans are made to underserved borrowers with complex incomes and .......

    Market Moves 27 January 2021

  • US CLO rally rolls on

    Current focus on mezz looks set to move down the stack

    Strong demand continues to drive secondary spreads tighter across the US CLO capital stack. But – similar to triple-As before them – as mezz tranche prices near par, trading is becoming stickier and the focus is likely to shift down to equity.   

    “Demand for floating rate assets has continued this year so far, with distressed loans and .......

    News Analysis 27 January 2021

  • Call for aircraft ABS protections

    Sector developments and company hires

    Call for aircraft ABS protections
    Fitch reports that a material number of aircraft failed to be novated to two aircraft ABS - START III and Lunar 2020-1 – last year, following closing. The failure of aircraft to novate in START III resulted in the asset count falling to just two aircraft from 19 initially, while six of 18 initial aircraft .......

    Market Moves 26 January 2021

  • CLO outlook updated

    Sector developments and company hires

    CLO outlook updated
    Fitch says it expects to change a significant portion of its CLO outlooks to stable from negative, following the revision of its CLO coronavirus stress scenario to assume half of the corporate exposure on negative outlook is downgraded by one notch instead of 100%. Approximately one-third of corporate issuers with loans in CLOs currently have a negative .......

    Market Moves 25 January 2021

  • 'Unique' CMBX reflects Covid trends

    Sector developments and company hires

    ‘Unique’ CMBX reflects Covid trends
    The IHS Markit CMBX.14 index is expected to launch on 25 January, uniquely referencing 25 conduit CMBS issued between September 2019 and December 2020. All five of the 2019 deal constituents are also referenced in CMBX.13, creating collateral overlap between the two series.

    Morgan Stanley CMBS strategists note that on average, CMBX.14's original credit .......

    Market Moves 21 January 2021

  • Issuer substitutions

    VAT reversal results in redomiciled CLOs

    A number of CLO managers have redomiciled their European deals from the Netherlands to Ireland, following the change in interpretation of VAT law by the Dutch tax authorities in connection with CLO management and administration fees (SCI 24 February 2020). Most of the transactions affected by this change – estimated to account for around 30% of European CLO .......

    News Analysis 21 January 2021

  • CLO team finds new home

    Sector developments and company hires

    CLO team finds new home
    Fidelity International has established a new private credit capability with experienced hires from AnaCap-owned MeDirect Bank. Concurrently, the firm has been awarded the delegation of management for the €400m Grand Harbour CLO 2019-1 transaction. Fidelity says it will continue to engage with MeDirect to explore further strategic opportunities.

    The private credit team will continue .......

    Market Moves 20 January 2021
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