CLOs

  • Job swaps weekly: Succession at Oaktree

    People moves and key promotions in securitisation

    This week’s securitisation job swaps have seen Oaktree Capital Management announce the retirement of ceo Jay Wintrob and a succession plan that sees three senior executives stepping onto its executive committee. Elsewhere, Deutsche Bank has appointed a new CLO implementation head, while Moody’s welcomes back a structured finance professional after a two-and-a-half-year stint with BFF Banking. 

    Oaktree ceo Wintrob will retire in .......

    Market Moves 7 July 2023

  • CVC Credit closes US$800m third CLO equity fund

    Market updates and sector developments

    CVC Credit closes US$800m third CLO equity fund

    CVC Credit has held an US$800m final close for its third CLO equity fund, bringing the total amount of capital raised for the strategy to US$1.66bn. The new vehicle is intended to support more than US$10bn of global issuance for the firm’s performing credit platform throughout the course of its deployment period.

    The .......

    Market Moves 6 July 2023

  • Popularity contest

    Life insurers clash over CLO capital charges

    US life insurer investment in CLOs has grown by about 20% each year over the last decade, with CLOs now accounting for between 3% and 4% of general account investments in the sector and more than 10% for a handful of the top-30 US life insurers. Indeed, the US Fed estimates that life insurers own 20% of the US .......

    News 3 July 2023

  • Mezz opportunities

    Pretium structured credit and CLO liabilities MD Ian Wolkoff...

    US CLO mezzanine debt offers high expected return rates, with yields maintained under a default scenario more extreme than the GFC credit cycle and with upside potential in a market recovery scenario.

    CLO debt offers strong long-run expected returns with bounded downside
    In the current market context, macro uncertainty and the potential for a growth downturn loom large while .......

    Talking Point 28 June 2023

  • Seventh heaven

    Market updates and sector developments

    Seventh heaven

    Fannie Mae has executed its sixth and seventh reinsurance deals of the year, designated CIRT 2023-6 and CIRT 2023-7, for a total of US$786bn of mortgage risk. Both trades were brokered by Aon, and the risk was shared by 21 insurance and reinsurance companies.

    The two loan pools referenced through this brace of .......

    Market Moves 26 June 2023

  • BNY turns to AccessFintech for digital innovation

    Market updates and sector developments

    BNY turns to AccessFintech for digital innovation

    BNY Mellon has become the first trustee to join the data management platform, AccessFintech, as it continues in its commitments to improving loan data management, operations, and digitisation across the financial universe.

    The collaboration intends to significantly improve BNY Mellon’s loan data management capabilities by addressing historical issues, .......

    Market Moves 22 June 2023

  • UBP launches new fixed income fund

    Sector developments and company hires

    Union Bancaire Privée (UBP), the Geneva-headquartered private bank, has launched a new fixed-income strategy spanning high-yield bonds, subordinated debt and securitised credit. The fund, named UBAM Strategic Income, will seek a double-B rating risk profile and target an average return of 7% per annum across its lifespan.

    UBAM Strategic Income, which will invest in CLOs in addition to .......

    Market Moves 20 June 2023

  • FCA urged to address 'regulatory redundancies'

    Sector developments and company hires

    FCA urged to address ‘regulatory redundancies’
    The Managed Funds Association (MFA) has submitted a letter to the UK FCA, proposing improvements to the country’s regulatory framework for securitisations that would expand capital investment in the UK and optimise risk management on behalf of UK investors. The letter encourages the FCA to “address regulatory redundancies” and enhance compatibility with the rules .......

    Market Moves 15 June 2023

  • Walker steps up to global credit head

    Sector developments and company hires

    Walker steps up to global credit head
    Aon has established a new global credit team structure within its Reinsurance Solutions unit, appointing Ben Walker as head of global credit. The global credit team now combines Reinsurance Solutions’ existing mortgage, trade credit, structured credit and political risk and surety businesses to form one global function.

    The aim is to facilitate .......

    Market Moves 14 June 2023

  • Compliance issues

    'Compelling case' for reform of Article 5

    A new AFME report finds that investors are likely to interpret ambiguous provisions under Article 5 of the Securitisation Regulation in the EU and UK conservatively - and, in doing so, will assume disproportionately high costs to the business. The report identifies key challenges relating to compliance with investor due-diligence requirements and suggests potential strategies to overcome them.

    News 14 June 2023

  • Manager tiering

    Japanese demand driving dispersion?

    The US CLO market continues to be characterised by dispersion (SCI 24 May). In this context, secondary double-B paper appears to be competing well against new issue equity.

    “The biggest headwind CLO managers face is dispersion right now, particularly in the triple-As, because that makes up such a large part of the capital stack. We are seeing .......

    News 9 June 2023

  • Strategic partnerships 'positive' for CLO managers

    Sector developments and company hires

    Strategic partnerships ‘positive’ for CLO managers
    The number of US broadly syndicated loan CLOs for which managers retained their majority equity stake continues to exceed the number of CLOs where equity was sold to third parties, according to data published in Fitch’s latest CLO Asset Manager Handbook. The percentage of US managers that retained a majority in their CLOs’ equity .......

    Market Moves 8 June 2023

  • Stonepeak eyes structured solutions

    Sector developments and company hires

    Stonepeak eyes structured solutions
    Michael Leitner has joined Stonepeak as a senior md. Based in the firm’s New York office, he will help lead the continued buildout of Stonepeak’s credit investing capabilities. The firm believes there is a clear opportunity to leverage its broader platform and institutional knowledge to support the growth of the infrastructure marketplace through investments in credit .......

    Market Moves 2 June 2023

  • Sun King supported via solar ABS

    Sector developments and company hires

    Sun King supported via solar ABS
    British International Investment (BII), the UK’s development finance institution (DFI), and Stanbic Bank Kenya have unveiled commitments to off-grid solar energy company Sun King via a US$130m-equivalent securitisation and a joint US$20m working capital facility. These commitments will enable the purchase of more inventory - such as solar home systems and solar lanterns - and .......

    Market Moves 31 May 2023

  • Infrastructure CLO debuts

    AIIB anchors emerging market pilot

    Hong Kong Mortgage Corporation (HKMC) has completed the first CLO issuance under its pilot scheme on infrastructure financing securitisation. Dubbed Bauhinia ILBS 1, the transaction is backed by a US$404.8m portfolio of 35 bank-syndicated senior secured project finance and corporate infrastructure loans secured by 25 individual projects across nine sectors and 12 countries in Asia-Pacific, the Middle East and .......

    News 31 May 2023

  • ESG impact disclosure RTS inked

    Sector developments and company hires

    ESG impact disclosure RTS inked
    The three European Supervisory Authorities (ESAs) have jointly submitted to the European Commission draft RTS on ESG impact disclosures for STS securitisations under the Securitisation Regulation (SECR). The amended SECR introduced new optional disclosure provisions related to the principal adverse impacts (PAIs) on sustainability factors of the assets financed by the underlying exposures for both .......

    Market Moves 26 May 2023

  • USAUT noteholders bag successor servicer

    Sector developments and company hires

    USAUT noteholders bag successor servicer
    KBRA reports that it has received an omnibus amendment, assignment, assumption and consent agreement on each outstanding US Auto Funding Trust (USAUT) securitisation specifying that Westlake Portfolio Management (WPM) has been assigned as successor servicer and the servicing fee has increased to 4.10%, from 3.75%. WPM has assumed the duties and obligations of the servicer, .......

    Market Moves 25 May 2023

  • Proactive participation

    CLO manager differentiation eyed

    M&A activity, tiering and the paucity of new collateral are all potential headwinds for CLO managers, especially for smaller players and new entrants. Against this backdrop, proactive CLO management is an increasing differentiator.

    Current CLO market conditions could provide early-mover advantages for active managers, as failure to sell out of problematic credits in a timely manner could result .......

    News Analysis 24 May 2023

  • CLO heavyweight to lead combined platform

    Sector developments and company hires

    CLO heavyweight to lead combined platform
    Sound Point Capital Management has appointed Gunther Stein as head and cio of its US performing credit and CLO platform. The move follows Sound Point’s recently announced agreement to acquire Assured Investment Management, the institutional asset management business of Assured Guaranty that was formerly known as BlueMountain Capital Management (SCI 6 April).

    Market Moves 19 May 2023

  • AG acquisition creates credit powerhouse

    Sector developments and company hires

    AG acquisition creates credit powerhouse
    TPG is set to acquire Angelo Gordon in a cash and equity transaction valued at approximately US$2.7bn, based on TPG’s share price as of 12 May, including an estimated US$970m in cash and up to 62.5 million common units of the TPG Operating Group and restricted stock units of TPG. The transaction also includes an .......

    Market Moves 16 May 2023

  • International affair

    Opportunity for foreign investors in Chinese ABS?

    Misunderstanding could mean missed opportunity for investors as China’s unique securitisation market continues to grow and mature. Despite divergence from global norms, there may be room for more foreign investors to capitalise on the robust credit performance seen across the sector.

    "The large and diverse Chinese securitisation market has become a mature funding channel for various types of .......

    News Analysis 15 May 2023
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