CLOs

  • Market moves - 27 July

    Company developments and new hires in the structured finance sector.

    Acquisitions

    American Mortgage Consultants (AMC), has announced the acquisition of certain personnel and the operations center of Des Moines, Iowa-based The Barrent Group. This transaction will establish a market presence for AMC in the Midwest and adds more than 50 residential mortgage professionals to its platform, further enhancing the firm’s client service capabilities. AMC plans to hire up to 150 .......

    Market Moves 27 July 2018

  • Ireland still 'favoured' securitisation destination

    Irish CLOs may see post-Brexit boost

    The Central Bank of Ireland recently published figures stating that the total value of assets in Irish special purpose entities (SPEs) has fallen €58.9bn this year. While a striking number, this has little relation to the use of SPEs for securitisation and nor has it affected ongoing activity involving the acquisition and securitisation of portfolios of Irish non-performing loans.

    Conor .......

    News 25 July 2018

  • Testing time

    European ABS succumbs to widening pressures

    Poor new issue execution has seen the European securitisation market finally succumb to widening pressure, in line with other credit markets. A number of short-term and long-term factors are at play, but the true test of the sector will be when participants begin putting cash to work after the summer.

    Cartesian 3 and Sunrise SPV 40 were among the headline .......

    News Analysis 24 July 2018

  • Market moves - 20 July

    A weekly breakdown of new hires and company developments in the global structured finance industry.

    Acquisition agreed

    Stone Point Capital’s Trident VII fund is set to acquire Sabal Capital Partners, with Sabal Investment Advisors, Sabal Investment Holdings and their managed funds also merged into the Sabal platform to create a vertically integrated lending, servicing and investment management platform focused on the small balance commercial real estate sector. Sabal will continue to be operated by its .......

    Market Moves 20 July 2018

  • CLO investor breaks into US

    UK firm thinking long term, credit cycle in sights

    Pearl Diver Capital recently opened its first US office and also closed two new CLO funds. While the loan and CLO markets still seem to be immune from macroeconomic disruption, the company is preparing for a potential change in the credit cycle.

    Matthew Layton, partner at Pearl Diver Capital, comments that the firm recently closed Pearl Diver Capital (PDC) Fund .......

    News 20 July 2018

  • Inaugural infrastructure CLO markets

    Singapore-supported firm's first transaction backed by Asia, ME project finance loans

    Clifford Capital is marketing an inaugural US$480m CLO. The transaction, dubbed Bayfront Infrastructure Capital, is backed by 37 bank-syndicated senior project finance and infrastructure loans to projects in Asia-Pacific and the Middle East.

    Moody’s has assigned provisional ratings to the transaction of Aaa on the US$320.6m class A notes, Aa3 on the US$72.6m class B notes and Baa3 on the .......

    News 18 July 2018

  • European CMBS surge continues

    Structural nuances also on the rise

    European CMBS is experiencing a bumper year and new deals continue to hit the market, making 2018 the strongest year for traditional, floating-rate CMBS since 2015. While investors are unlikely to lose any sleep just yet, many of these new transactions feature structural nuances that draw comparisons with transactions seen before the financial crisis.

    Although there have been other bumper .......

    News Analysis 6 July 2018

  • Multi-currency CLO launched

    Large transaction appeals to broad investor base

    Barclays has launched an unusual multi-currency CLO based on a £4.5bn portfolio of corporate loans made by the bank to borrowers in the UK and Europe. The transaction, dubbed Sirius Funding, will be managed by Barclays and comprises three large tranches denominated in euro, US dollar and sterling, respectively.

    Moody’s and Scope have assigned ratings of Aaa/AAA on the €1.265bn .......

    News 29 June 2018

  • Market moves - 22 June

    Europe

    Axa Investment Managers has hired Hans Stoter to global head of fixed income and interim head of multi asset client solutions. He was previously cio at NN Investment Partners.

    DBRS has hired Edward Dittmer to its CMBS team as svp and will be based in New York. He was previously svp in the CMBS team at Morningstar.

    BlueBay has .......

    Market Moves 22 June 2018

  • Questions remain over insurer participation

    The European Commission recently published the Delegated Act on Solvency 2, which improves the capital treatment for certain ABS exposures, as of 1 January 2019. However, market participants suggest that STS securitisations deserve fairer capital treatment and, as a result, insurance firms remain unlikely to return to the securitisation market in great number.

    Rabobank credit analysts take a bullish approach .......

    News Analysis 21 June 2018

  • Market moves - 15 June

    CLO name change

    The name of Babson Euro CLO 2014-1 has been changed to Barings Euro CLO 2014-1. The move is effective from 13 June.

    Europe

    MDB Group (MeDirect) has recruited Michael Curtis as cio, responsible for core credit activities and spearheading the bank’s diversification into new product areas. Based in London, he reports to ceo Mark Watson. Curtis was .......

    Market Moves 15 June 2018

  • Market moves - 8 June

    Acquisition

    Angel Oak Commercial Lending (AOCL) has acquired a controlling interest in Cherrywood Mortgage – a national, small-balance commercial mortgage lender based in Los Angeles, California. Cherrywood will serve as the wholesale small-balance commercial lending arm of (AOCL) and is led by ceo Bill Komperda and president Ed Resendez.

    Cat bond first

    SCOR has sponsored a new cat bond, dubbed Atlas .......

    Market Moves 8 June 2018

  • Chinese issuance growing strongly

    Chinese securitisation issuance surged to a record high in 2017 but significant challenges remain. Overseas ABS market participants point to the need to develop the investor base and deepen market expertise, but are also showing increased willingness to dip their own toes in the water.

    The Chinese securitisation market is now the second-largest in terms of issuance, hitting CNY1.495trn in .......

    News Analysis 4 June 2018

  • Managers set out stalls post-repeal

    Of open-market CLO managers that have issued a risk retention-compliant CLO, 61% are seeking to sell some or all of the risk retention interest, according to a recent survey from Maples and Calder. Indeed, a number of risk retention pieces have been put up for sale on the secondary market in recent weeks, following the official repeal of the ruling .......

    News 29 May 2018

  • Sterling CLO boosts Euro diversity

    The announcement of a rare sterling-denominated deal has further boosted the growth and diversity of the European CLO market. PGIM Fixed Income’s latest transaction - Dryden 63 GBP CLO 2018 – is the first sterling CLO since 2013 and could pave the way for further such issuance in the coming months.

    NatWest Markets is sole arranger on Dryden 63, which .......

    News 22 May 2018

  • Market moves - 18 May

    Europe

    CIFC has hired Joshua Hughes as head of European marketing, based out of London and reporting to co-ceo, Oliver Wriedt. Hughes was previously head of global distribution at Muzinich & Co. He will lead the firm’s fundraising efforts in the UK and throughout Europe as the firm establishes its European platform.

    Simon Collingridge and Tony Ward of Home Funding Limited and Jaap .......

    Market Moves 18 May 2018

  • Market moves - 11 May

    Acquisitions

    Blackstone is set to acquire all outstanding common shares of Gramercy Property Trust for US$27.50 per share in an all-cash transaction valued at US$7.6bn. The transaction represents a premium of 23% over the 30-day volume-weighted average share price ending 4 May 2018 and a premium of 15% over the closing stock price on that date. Completion of the acquisition .......

    Market Moves 11 May 2018

  • Standardised bank issuance picking up

    Standardised bank issuance of capital relief trades is picking up, despite the market having long been the purview of larger internal rating based (IRB) banks. This is driven by rating agencies offering more flexible benchmarking and the Juncker plan, which allows the EIF to guarantee both the senior and mezzanine risk.

    However, the shift is slow because of .......

    News Analysis 8 May 2018

  • Market moves - 4 May

    Acquisitions

    Five Oaks Investment Corporation has acquired 100% of the equity interests of Hunt CMT Equity from hunt Mortgage Group for US$68m. Assets of Hunt CMT Equity include the junior retained notes and preferred shares of a commercial real estate CLO, a licensed commercial mortgage lender and eight loan participations. The assets of the CLO consist of performing transitional floating .......

    Market Moves 4 May 2018

  • Widespread risk retention sell-off unlikely

    After the recent repeal of risk retention for open-market CLO managers in the US, a widespread sell-off of risk retention capital is thought to be unlikely as managers will still keep some skin in the game. Furthermore, while there is agreement that the repeal has lowered barriers to entry, opinion is divided as to whether it will lead to an .......

    News Analysis 4 May 2018

  • CLO trends ring alarm bells

    Ever loosening loan documentation and manager drift are giving CLO investors pause for thought, particularly those higher in the structure. While certain managers may be benefiting now, there are worries that those pursuing a less conservative strategy may fall short when the credit cycle turns.

    Michael Schewitz, co-portfolio manager of credit trading and investment at Investec, suggests that the trend .......

    News Analysis 3 May 2018
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