CLOs
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Positive performance prompts upgrades
Sector developments and company hires
Director hired to rebranded CLO platform
DFG Investment Advisers has hired John Hwang as a director and senior credit analyst on its leveraged credit team, responsible for analysing below-investment grade credit with a focus on leveraged loans for the Vibrant CLO platform. Hwang has 18 years of experience in the financial services industry and was previously an svp at Crescent .......
Market Moves 22 May 2019
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CLO director nabbed
Company hires and sector developments
Europe
Hermes Investment Management has hired Kevin Roche as a director for private debt and CLOs. Reporting to the head of direct lending, Laura Vaughan, Rochewill be based in London and will work across the private debt platform. He was previously a director at Allied Irish Banks, where he was responsible for delivering leveraged finance loans to mid-market private .......
Market Moves 17 May 2019
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CMBS sees prompt prepayment
Company hires and sector developments
Auction platform
Mortgage Capital Trading has launched Trade Auction Manager (TAM) to enable more efficient bidding of TBA MBS used by lenders to hedge their open mortgage pipelines. The browser-based software module is accessible via MCTlive!, the company’s capital markets platform. TAM digitises a formerly manual communication process to confirm time-sensitive TBA trades that were once largely phone-based .......
Market Moves 16 May 2019
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Heading in the right direction
US CLO market update
The US CLO market is making up some lost ground after a tough start to the year.
“We’re at last heading in the right direction, after five to six months of widening or trading sideways,” says one trader.
“The arb is tough and loan issuance is slow right now, making new issuance tricky, and at the same .......
Market Reports 16 May 2019
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Senior appointments abound
Company hires and sector developments
Acquisition
Priority Income Fund has completed its acquisition of Stira Alcentra Global Credit Fund (SAGC), after the latter’s shareholders approved the transaction at a special meeting on 6 May. The exchange ratio at which common shares of SAGC were converted to common shares of Priority was based on the applicable class of SAGC shares and Priority’s most recent estimated net .......
Market Moves 14 May 2019
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SCI Start the week - 13 May
A review of securitisation activity over the past seven days
Transaction of the week
Last week saw an unusual Irish CMBS hit the European pipeline, from debut issuer Finance Ireland. Dubbed Pembroke Property Finance, the €228.6m transaction is backed by 139 loans on 244 seasoned small CRE loans located across Ireland and originated by Finance Ireland Credit Solutions.
Finance Ireland is jointly owned by the Ireland Strategic Investment Fund, Pimco .......
News 13 May 2019
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Energy expert nabbed
Company hires and sector developments
Energy expert nabbed
Energy Estate has hired Christian Krebs as one of the leaders in its transaction advisory practice and will be closely involved with debt and equity fund raising for projects and businesses, beginning 1 July. Krebs was previously at NordLB where he was head of structured finance origination Asia/Pacific.
Transaction gets green stamp of approval
Greenworks Lending recently received the very first Green Evaluation .......
Market Moves 8 May 2019
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STS 'not enough' for European ABS revival
Securitisation 'needs to be used more' as funding tool
At the start of last year, BNP Paribas Asset Management hired Michel Fryszman as its new head of structured finance to oversee three UCITS funds, each investing in securitisations and loan portfolios. While the funds have a fairly broad remit with regard to asset class, historical performance data is a key metric meaning first-time CLO managers are given a wide berth and .......
News Analysis 3 May 2019
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Rating agency appoints new SF head
Company hires and sector developments
Bank bulks up
Macquarie has appointed Carolyn Porretta md, structured finance and real estate, based in London. She was previously head of portfolio services, investment portfolio management at AIG, where she was responsible for managing structured products and CRE debt in EMEA.
RA hires new SF head
Scope Ratings has hired David Bergman as its new .......
Market Moves 3 May 2019
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First SOFR-indexed MBS tranche inked
Sector developments and company hires
Claims predictability to improve?
Market Moves 2 May 2019
The Florida legislature last month passed a bill to reform the requirements for the assignment of benefits of claims for residential and commercial property insurance, which could improve the predictability of claims and losses for Florida catastrophe bonds. According to a recent Cadwalader client memo, assignment of benefits in Florida has been a concern for the .......
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Rating agency names managing director
Sector developments and company hires
EMEA
Scope has named Guillaume Jolivet as md. He joins the firm’s management board, alongside Torsten Hinrichs, coo of the Scope Group. With more than 18 years of experience in credit analysis and ratings, Jolivet joined Scope in 2013 and held several senior positions at Moody’s and UBS before that.New York University’s Stern School of Business finance professor .......
Market Moves 25 April 2019
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Value investing
Tim Gramatovich, cio of Gateway Credit Partners, answers SCI's questions
Q: How and when did Gateway Credit Partners become involved in the securitisation market?
The Structured Credit Interview 23 April 2019
A: Gateway Credit Partners is the credit platform of B Riley Financial’s investment advisor subsidiary B Riley Capital Management and was established in March (SCI 26 March). Our strategy is to identify and acquire undervalued non-investment grade corporate credit securities and implement our portfolio management .......
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CLO manager denied incentive fee
Sector developments and company hires
Incentive fee ruling
Market Moves 18 April 2019
The High Court in London has ruled that Barings (UK), as collateral manager, was not entitled to an incentive fee at the expense of junior bondholders following the optional redemption of the Duchess VI CLO. Part 8 proceedings were brought by Deutsche Trustee Company, to determine the correct interpretation of the bond documentation in which Barings (UK) .......
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ILS restructuring agreed
Sector developments and company hires
ILS restructuring agreed
Ballantyne Re has entered into a lock-up support agreement with Ambac Assurance UK, Assured Guaranty, approximately 82% by value of the class A noteholders, Security Life of Denver Insurance Company (SLD) and Swiss Re Life and Health America (SRLHA) in connection with a proposed restructuring transaction in respect of its obligations under the ILS notes. .......
Market Moves 15 April 2019
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New wave?
Could ESG CLOs be the start of a trend?
Fair Oaks Capital is set to issue a debut European CLO in 2Q19 and, notably, it has been structured according to strict ESG criteria. It follows hot-on-the-heels of similar transactions from Permira Debt Managers last year and it may be the start of things to come in terms of greater adoption of ESG-aligned investment strategies in the US and Europe.
Tyler .......
News Analysis 15 April 2019
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Firm bulks out CRE capability
Sector developments and company hires
Board directors appointed
ISDA has appointed three new board directors and re-elected ten others. The three new directors are, Erik Tim Mueller, ceo, Eurex Clearing, Andrew Ng, group executive, head of treasury and markets, DBS Bank and Shigeru Nonomura, md, co-Head of rates trading, global markets Japan, Nomura Securities.
CMBS head hired
Natixis has recruited Andrew Taylor as md and .......
Market Moves 11 April 2019
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BWIC boom
Quarterly SCI data update
The first quarter of a year is usually quieter than the previous quarter and, for the most part, 1Q19 saw reduced activity over 4Q18 (SCI 24 January 2019). The notable exception was CLO secondary markets, where BWIC volumes boomed for the second quarter in a row, according to SCI data.
....... News Analysis 11 April 2019
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SCI podcast - episode six now live
CLO innovation and UTP securitisations discussed
Episode six of the monthly SCI podcast is now available. In this edition, our editor Corinne discuss some fascinating developments in the CLO sector, including how several structural innovations have begun to emerge and she asks why that has happened. Additionally, our senior reporter, Stelios, looks at difficulties involved in securitising unlikely-to-pay loans and Richard, our deputy editor, takes .......
News 10 April 2019
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European bank in major restructure
Company hires and sector developments
COO hired
Trepp has appointed Luis Amador as coo, reporting to ceo, Annemarie DiCola. Amador was recently md at Moody's Analytics, responsible for structured finance financial engineering, product management, content production, and advisory teams, providing the fixed income marketplace advanced analytics, data, credit models, and portfolio monitoring products while also performing advisory, valuation, and consulting services across sectors.
Energy and .......
Market Moves 9 April 2019
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On the up?
CRE CLO market growth set to continue
After a buoyant CRE CDO market all but vanished following the financial crisis, it has only recently returned in the form of CRE CLOs with issuance growing from almost nothing three years ago, to just under US$14bn last year. While the basic structure of CRE CLOs shares some similarities with the pre-crisis structure, it has some notable differences that should help .......
News Analysis 8 April 2019
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Addressing the arb
CLO structural innovations aim at wider investor base
European CLO issuance totalled approximately €7.73bn in Q1, comprising 16 new issues and two refinancings. March alone saw nine transactions price, which showcased a range of structural innovations designed to address the current challenging arbitrage and appeal to a wider investor base.
“Appealing to a wider investor base is an important consideration for a syndicated deal, rather than one with .......
News Analysis 5 April 2019