CLOs

  • Euro secondary slows

    January's optimism has faded throughout February as activity across the European securitisation secondary market has slowed.

    "There's not a great deal going on with a combination of factors such as a busy primary, holidays, Vegas and some bad weather keeping things pretty quiet," says one trader. "However, we have seen a couple of bid lists recently, which appear to have .......

    SCIWire 1 March 2018

  • LCR amendments could be STS 'game-changer'

    The European Commission's recent draft regulation on the LCR does not ensure STS securitisations are eligible as level 2A assets. Along with other factors, this could result in securitisation remaining a less attractive option compared to other financial instruments.

    Ian Bell, director of the PCS, commented on the draft regulation as part of the consultation. He suggests that "leaving this .......

    News 28 February 2018

  • Market moves - 23 February

    North America

    David Sykes has rejoined Chapman and Cutler as a partner, expanding the firm's San Francisco office and asset securitisation department. Prior to rejoining, he was most recently at Renew Financial where he served as general counsel.

    Onex has appointed Tate Abols to its investor relations and fund development team as md. Abols was most recently a principal on .......

    Market Moves 23 February 2018

  • Market moves - 16 February

    EMEA

    Fulcrum Asset Management has recruited Mark Horne as a director within the newly created Fulcrum Alternative Strategies team, reporting to partner Matthew Roberts. Horne previously worked as an independent asset management consultant in London and Paris. Prior to that, he was a senior credit manager researcher at Willis Towers Watson and was director of client services at Natixis Global .......

    Market Moves 16 February 2018

  • French ABS to benefit from new regime

    The creation of a new SPV regime in France (SCI 11 October 2017) will boost the country's ABS sector by simplifying the existing investment framework and streamlining the origination of loans and structuring of transactions. It is also hoped that the new vehicle will enable France to compete with other jurisdictions in attracting foreign capital for a range of .......

    News Analysis 14 February 2018

  • CRE CLOs quick off the line

    Two more firms have launched inaugural CRE CLOs, with a US$480.4m transaction from Argentic Silverpeak and a US$510.2m transaction from Bridge Investment Group. The transactions are further examples of a surge in CRE CLO issuance since the start of 2018, indicating a trend of investment firms favouring the CLO structure over traditional CMBS, particularly due to the flexibility the structure .......

    News 12 February 2018

  • Risk retention relief for CLOs

    The US Court of Appeals for the DC Circuit last week reversed a lower court decision and ruled in favour of the LSTA in its lawsuit against the SEC and the US Fed, concluding that open-market CLO managers are not subject to risk retention rules. The outcome is expected to benefit smaller CLO managers, as well as boost the supply .......

    News Analysis 12 February 2018

  • Risk transfer round-up - 9 February

    Credit Suisse is rumoured to be re-tranching its existing risk transfer transactions, echoing recent market comments over the prospective use of this innovation in the capital relief trade space (SCI 26 January). The technique involves slicing in two the junior risk, in an attempt to cope with higher capital requirements for the retained tranches.

    Elsewhere, market sources observe that Greek lenders are .......

    News 9 February 2018

  • Market moves - 2 February

    North America

    CVC Credit Partners has named Gretchen Bergstresser as global head of performing credit - a new role within the firm - having led its US performing credit strategy. Phil Raciti, senior md in CVC's New York office, will become head of US performing credit. Additionally, from 1 February partner and London-based senior portfolio manager Jonathan Bowers will become .......

    Market Moves 2 February 2018

  • Call for transparency underlined

    A push for transparency is a common thread among European initiatives to reinvigorate the securitisation markets. Communication and standardisation are expected to play significant roles in facilitating this effort.

    Christian Thun, ceo at European DataWarehouse, agrees, in principal, that better communication is required to improve transparency in the European securitisation market. "Reading through the STS regulation, communication is only mentioned .......

    News Analysis 2 February 2018

  • TPG moves into CRE CLOs

    TPG RE Finance Trust (TRTX) is marketing an inaugural US$932.4m CRE CLO. The transaction, entitled TRTX 2018-FL1, is the second-largest CRE CLO to be issued post-crisis and will initially be collateralised by 26 mortgage assets, secured by 63 properties.

    Moody's and KBRA have assigned expected ratings of Aaa/AAA to the US$491.831m class A notes and KBRA has provisionally assigned triple-A to the US$72.259m .......

    News 2 February 2018

  • CLO reissues debut

    The first two US CLO reissues closed this week, adding another US$1.12bn to Anchorage Capital Group's AUM. A reissue differs to a refinancing or reset as it involves calling a pre-existing CLO and rolling the assets into a new SPE.

    JPMorgan arranged both reissues - the US$508.75m Anchorage Capital CLO 3-R and the US$614.15m Anchorage Capital CLO 4-R - following .......

    News 31 January 2018

  • US CLOs on the up

    Pricing levels across the US CLO secondary market have kept increasing through January.

    "Everything is getting tighter in secondary," says one trader. "Meanwhile, new issue spreads are tightening and then those bonds are trading up in the secondary market too."

    The driver behind spreads narrowing is currently a simple one, according to the trader. "For the past two or three .......

    SCIWire 31 January 2018

  • Euro secondary picking up

    Activity in the European securitisation secondary market is gradually picking up, albeit from a low starting point.

    December saw a significant drop in volumes and left secondary spreads unchanged on the month. Since the start of 2018 trading activity has slowly increased week on week, but still remains intermittent and a pick-up in BWIC supply has only been evident over the .......

    SCIWire 31 January 2018

  • Market moves - 26 January

    North America

    Schulte Roth & Zabel has elected Stephen Schauder as a partner in the structured finance and derivatives group, working with co-heads Craig Stein and Boris Ziser. Schauder joined the firm as an associate in 2015 after having previously worked at Stroock & Stroock & Lavan in the structured finance department.

    CIFC has hired Jay Huang as md, senior .......

    Market Moves 26 January 2018

  • CRE CLO market tapped

    Värde Partners is tapping the market with a debut US$368.1m cashflow CRE CLO. The transaction, entitled VMC Finance 2018-FL1, is expected to close on 8 February and comprises 24 first-lien whole loans and pari-passu participations secured by commercial real estate properties spread across 12 US states.

    Moody's and KBRA have assigned ratings of Aaa/AAA to the US$200.6m class A notes .......

    News 25 January 2018

  • Going green

    Current status of green ABS market discussed

    Representatives from Clifford Chance, TMF and Ygrene Energy Fund recently discussed the current status of green ABS during a live webinar hosted by SCI (view the webinar here). This Q&A article highlights the main talking points from the session, including the established asset classes, those that are developing, and what is next for the sector.

    Q: As the .......

    Talking Point 25 January 2018

  • Market moves - 19 January

    Acquisitions
    RenaissanceRe Ventures is set to acquire a minority shareholding in Catalina Holdings (Bermuda), with the aim of helping the business to explore a wider range of transaction structures. The agreement is subject to regulatory approval and is expected to close concurrently with the majority acquisition of Catalina by affiliates of Apollo Global Management. Aditya Dutt, president of Renaissance Underwriting Managers, will .......

    Market Moves 19 January 2018

  • Carillion liquidation met with cautious optimism

    The Irish stock exchange announced this week that a company, believed to be liquidated construction giant Carillion, triggered a credit event for HSBC's US$300m CLN dubbed 'Metrix portfolio distribution'. Despite the event, the market's initial reaction remains cautiously optimistic given the sturdy performance of synthetics over the last four years.

    Metrix was closed at end-2015 (see SCI's capital relief trades .......

    News 19 January 2018

  • CLO collateral defaults eyed

     Defaulted collateral in US 2.0 CLOs rose through December, as increased leveraged loan defaults filtered through from November. While defaults in European 2.0 CLOs have remained steady, CLO managers have notably moved out of previously heavily weighted positions to boost performance.

    Defaults in the S&P LCD/LSTA leveraged loan index last month rose above 2% for the first time since June .......

    News 16 January 2018

  • Scenario analysis

    Elena Rinaldi, portfolio assistant at TwentyFour Asset Manag...

    ABS is an asset class that lends itself well to detailed underwriting, from onsite due diligence through to cashflow and risk modelling. Specifically within the CLO sector, once TwentyFour Asset Management has reviewed the manager and the collateral, we focus on stress testing and sensitivity analysis. The hypothetical question "what if?" plays a fundamental role in assessing the resilience of .......

    Talking Point 12 January 2018
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