CLOs

  • Market moves update

    Company hires and sector developments in structured finance

    Accrual clause nixed

    The New York State Court of Appeals last week held that contractual attempts to extend the statute of limitations for causes of action involving breaches of contract are unenforceable because they violate New York law and public policy. In the case at issue, the plaintiff (Deutsche Bank National Trust Company) argued that the accrual clause ......

    Market Moves 22 October 2018

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  • Technicals eyed

    European ABS market update

    Porsche’s FACT Compartment 2018-1 auto lease ABS has seen no substantial resistance in the European primary market. Indeed, spreads appear rangebound for now.

    “Because we are in the last few months of the year, people know that whatever they have done so far, they will have to stick with,” says one trader. “They cannot change their numbers. At .......

    Market Reports 19 October 2018

  • Market moves update

    Company hires and sector developments in structured finance

    Alternatives alliance
    DWS Group and Tikehau Capital have entered into an alliance, following Tikehau’s participation in the IPO of DWS in March 2018. Under the agreement, DWS and Tikehau intend to launch a joint product leveraging the two companies’ alternative asset management expertise and platforms, which is expected to launch in 2019. The partners intend to cross-invest in respective funds, with .......

    Market Moves 18 October 2018

  • Latest SCI podcast now live

    SCI podcast episode two has been released

    SCI’s latest podcast is now live. This month the team discuss the African Development Bank’s Room2Run CRT, how fintech is affecting MPL ABS and the changing use of credit derivatives.

    The AfDB’s Room2Run deal, scheduled to close imminently, has shaken up the CRT sector, emphatically underlining that issuers do not have to be European and assets do not have to be .......

    News 18 October 2018

  • Steady subscription

    European ABS primary market update

    European primary ABS activity continues to be robust. In the RMBS sector, the BPCE Home Loans FCT 2018 deal is set to price tomorrow (18 October).

    “A variety of asset classes are represented in the primary market at the moment, with the French BPCE Home Loans RMBS and the German auto deal that priced last week,” says one .......

    Market Reports 17 October 2018

  • Market moves update

    OFS equity investment

    OFS Credit Company has disclosed that it has invested in the equity tranches of 19 CLOs, 17 of which have a reinvestment period ending in 2022 or beyond, for a total cost of US$43.6m (US$53.4m principal amount). The move follows OFS Credit’s IPO, which closed on 10 October and resulted in net proceeds of US$50m. OFS Capital .......

    Market Moves 15 October 2018

  • Market moves - 12 October

    Company hires and sector developments in structured finance

    Cliff edge concerns

    ISDA has published a paper highlighting widespread concerns in Europe that the UK may withdraw from the EU without a withdrawal agreement under Article 50 of the Treaty on European Union and without any transition, or implementation period, to allow market participants time to adjust. The paper sets out why a ‘no deal’ scenario has the potential .......

    Market Moves 12 October 2018

  • Secondary ticking up

    European securitisation market update

    A handful of BWICs are out for the bid today as activity in the European ABS secondary market picks up. Of note, the SILVA 2017-1UK A auto bond – with an original size of £80.8m - is set to be auctioned at 2pm London time today.

    “Auto ABS is holding up quite firm and the sector is .......

    Market Reports 12 October 2018

  • Manager differentiation?

    US CLO primary market update

    US CLO spreads are tightening, despite increased supply. Fresh primary market issuance is emerging daily.

    “Even though there is lots of supply, spreads are still tightening - although we are not really sure why. We think they should be widening. There seems to be a good demand for paper,” says one trader.

    The trader reports that participants .......

    Market Reports 11 October 2018

  • iTraxx 'best imperfect' hedge

    Main, Crossover indices show Euro CLO correlation

    With a number of macroeconomic and political issues leading to volatility across the financial spectrum this year, so CLO investors are thinking more about potential hedging options. In the area of European CLOs, iTraxx Main and Crossover indices have begun to emerge as promising candidates.

    While the indices are not necessarily a perfect hedge for European CLOs, both comprise diverse .......

    News 10 October 2018

  • Casting a wider net

    US CLO managers target European opportunities

    Although considerably smaller than the US, the European CLO market is on course for a post-crisis record year. A wave of US CLO managers, many with money to put to work in the wake of risk retention’s repeal back home, are moving across the Atlantic to take advantage of Europe’s growing opportunities.

    There were 44 European new issues in 2018 .......

    News Analysis 10 October 2018

  • Little differentiation

    European and US CLO market update

    Robust demand is being seen in both the European and US CLO markets this week.

    Equity arbitrage is up to 16% in the European CLO market and there is currently a zero percent default rate for some portfolios. “This is an equity investor’s best-case scenario,” says one trader, “short of a crisis situation.”

    Spreads have moved up in Europe because .......

    Market Reports 9 October 2018

  • Market moves - 5 October

    New hires and company developments in the structured finance sector

    Europe

    Apollo Global Management has named Brigitte Posch md, head of emerging markets in London. She was previously global head of emerging markets corporate credit at Barings Asset Management.

    Reed Smith has hired Kevin-Paul Deveau as a partner to its financial industry group in London. Deveau joins from Dechert and will focus on advising lenders, general partners, ......

    Market Moves 5 October 2018

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  • Heavy supply?

    European primary ABS market update

    A new RMAC UK non-conforming RMBS has been announced, while the BPCE Home Loans 2018 deal is expected to be sized at almost €1bn. Ford’s latest German Globaldrive auto deal is also attracting some attention in the European primary ABS market.

    “The RMAC 2 deal will set the tone for the European ABS market going forward,” says one .......

    Market Reports 5 October 2018

  • Perfect ingredients

    Liquidity boosts Euro CLO pipeline

    Increased liquidity and strong demand suggest that the European CLO pipeline will continue to be busy for the rest of the year. Nevertheless, changes in the credit cycle and macro backdrop remain keenly observed.

    European CLO market technicals are moving closer towards the US model in terms of providing a greater level of loan market liquidity, according to Sandeep Chana, .......

    News Analysis 5 October 2018

  • Double counting

    US CLO primary market update

    Up to 30 US CLO transactions are being prepped in the primary market this week, with four or five seen in the European market.

    “In the US you might have maybe 15 transactions at a time and a couple in Europe,” says one trader. “Twice that number in both markets at this time of year is going to .......

    Market Reports 4 October 2018

  • ABS lull

    European ABS primary market update

    The European ABS primary market is seeing a lull in activity, which is leaving some traders uncertain as to what the final quarter of the year will bring.

    “I’m seeing a little bit of primary market activity, mostly dealer to dealer or seller to dealer,” says one trader. “It’s pretty quiet; I’m not really sure why.”

    The .......

    Market Reports 3 October 2018

  • Market moves - 28 September

    The latest hires and company developments in the structured finance market

    Canadian pension partnership

    Canada Pension Plan Investment Board (CPPIB) announced today that its wholly-owned subsidiary, CPPIB Credit Investments, is broadening its portfolio through new investments in equity tranches of CLOs alongside experienced CLO asset managers. CPPIB Credit’s initial partnership in CLO equity investing will be with Sound Point Capital Management based in New York. CPPIB Credit will invest US$285mn in a .......

    Market Moves 28 September 2018

  • Weaker pools penalised

    US CLO primary market update

    The supply of US CLO deals coming off of 2016-vintage refinancings is expected to keep spreads ranging broadly upwards until year-end.

    “However, a return of Japanese investors could cause triple-A spreads to tighten - although if and when this will happen is uncertain,” says one trader. “If spreads tighten materially from here, the arbitrage could be threatened and .......

    Market Reports 27 September 2018

  • Market moves - 21 September

    All the latest company developments and new hires in the structured finance sector

    Acquisitions

    HPS Investment Partners has acquired Tålamod Asset Management. HPS will retain Tålamod's investment team and other employees based in Dallas, while Andersen Fisher, founder and managing member of Tålamod, will join HPS as md. Kyle Mapes and Jay Steen will join HPS as executive directors, after joining Tålamod in 2008. All employees of Tålamod will become HPS employees .......

    Market Moves 21 September 2018

  • Widening spreads eyed

    US CDO secondary market update

    Several ABS CDO bonds are expected to be in high demand today, which have not been prevalent on the secondary market for several months. Trups CDO paper has been more common on BWICs.

    “When Trups CDO bonds come around, there is a lot of interest,” says one trader. “But they are not predictable, unfortunately.”

    Meanwhile, mezzanine CLO .......

    Market Reports 20 September 2018
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