CLOs

  • CHOICE Act passes in House

    The US House of Representatives has passed the Financial CHOICE Act. The legislation aims to replace much of the Dodd-Frank Act, specifically criticising Dodd-Frank's "one size fits all" approach to securitisation and doing away with risk retention requirements for all asset classes except RMBS.

    The Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs (CHOICE) Act (SCI passim) intends to provide .......

    News 9 June 2017

  • European market growth predicted

    European securitisation market participants expect the number of investors to grow and participation by investors to increase. Increased investor support is identified in a recent DBRS survey as one of the most important changes required in order to grow the securitisation market, while regulatory concerns once again dominate.

    The DBRS survey was conducted before the European regulatory changes were announced last week .......

    News 6 June 2017

  • Job swaps round-up - 2 June

    EMEA

    BNP Paribas Asset Management has launched a new private debt and real assets investment group, headed by David Bouchoucha. This is together with the appointments of Philippe Deloffre as head of real estate debt, Karen Azoulay as head of infrastructure debt and Christophe Carrasco as head of SME lending. The group will focus on three main investment areas: real assets, .......

    Job Swaps 2 June 2017

  • US CLOs stable

    The US CLO secondary market continues to be stable.

    "The market is taking a bit of a pause and we're in the gap between last week's CLO conference in New York and Barcelona next," says one trader. "Overall market tone remains cautiously optimistic."

    The trader continues: "Secondary spreads remain stable with retail concerns not having an impact. Everyone is still .......

    SCIWire 1 June 2017

  • Euro secondary sporadic

    The European securitisation secondary market continues to exhibit the pattern of recent weeks with sporadic bursts of activity in specific areas.

    The stop-start nature of all asset classes has been further exacerbated by recent public holidays, month-end and the run-up to Global ABS. With wholesale absences at the conference next week little is likely to change in the near future.

    SCIWire 1 June 2017

  • Job swaps round-up - 26 May

    North America

    SFIG has hired Covell Adams as chief administration officer and Scott Brody as director of education and conferences. Adams joins from Wells Fargo Securities where she was head of business strategy and development for the asset backed finance and securitisation unit. Brody was previously md at IMN-Euromoney and he co-founded IMN in 1994.

    KBRA has hired Michael Dean .......

    Job Swaps 26 May 2017

  • Investors overweight RMBS

    Investors are moving out of consumer ABS and into US non-agency RMBS, agency RMBS and cash, according to a Morgan Stanley survey. 89% of survey respondents expect to stay in line or add to their current allocation to securitised products.

    The 2Q17 global investor survey polled 30 hedge funds, 67 asset managers, 23 insurance companies, 27 banks, two pension funds .......

    News 23 May 2017

  • Global interest in Euro SF surges

    The number of investors in European securitisations is ramping up and transactions are increasingly oversubscribed. Issuance volumes still lag behind 2016, but structured finance analysts at Bank of America Merrill Lynch are optimistic that 2017 can gain momentum thanks to increased global investor demand.

    There has been renewed investor interest in European structured products, which the analysts believe will push .......

    News 22 May 2017

  • Job swaps round-up - 19 May

    CDO manager transfers

    Dock Street Capital Management has replaced Vertical Capital as portfolio advisor to Summer Street 2005-HG1 and Vertical CDO 2003-1. Moody's confirms that the move will not impact the ratings on the ABS CDOs.

    EMEA

    BlueMountain Capital Management has named Louisa Church ceo for Europe. She will also continue in her role as head of client advisory - .......

    Job Swaps 19 May 2017

  • Regulatory proposal for SPVs 'credit negative'

    Proposed European regulatory changes to classify SPVs as financial counterparties have created significant uncertainty and are credit negative, rating agencies warn. Should the European Commission's (EC) intended amendments to EMIR be carried out, transactions would be required to post two-way variation margin and clear derivatives centrally.

    The EC's proposals remain subject to approval from the European Parliament and Council. Fitch .......

    News 19 May 2017

  • Job swaps round-up - 12 May

    Amicus briefs

    The LSTA has joined The Clearing House and the American Bankers Association to file amicus briefs in cases initiated by the State of Colorado against Avant and Marlette, both of which have bank partners (WebBank and Cross River Bank respectively). In January, Colorado regulators sued the two marketplace platforms, claiming that their loans are subject to Colorado interest .......

    Job Swaps 12 May 2017

  • US CLOs unshaken

    A flurry of BWICs over the past two sessions has failed to shake the US CLO secondary market out of its torpor and this week looks set to be another quiet week overall.

    "The lull in secondary activity is continuing," says one trader. "Overall, volumes are light with the major focus on re-fis and re-sets."

    That focus goes beyond the .......

    SCIWire 11 May 2017

  • Equity holds the cards amid heavy refinancings

    While buoying European CLO deal volumes, refinancings and resets are not always favoured by senior investors that have little control over the resultant reduced margin and amended deal terms. However, if navigated adequately by the equity holders, European CLO investors across the capital stack can benefit from the refinancing/reset process and new investors continue to be drawn to the asset .......

    News Analysis 11 May 2017

  • Euro CLOs diverted

    A busy primary market is diverting focus away from the European CLO secondary market this week.

    "It's much quieter this week as we're being dominated by primary," says one trader. "There, shorter dated triple- and double-As are drifting wider, but that's not yet feeding through into secondary spreads."

    The trader expects 2.0 triple-As to edge out in line with that .......

    SCIWire 11 May 2017

  • Job swaps round-up - 5 May

    North America

    Hunton & Williams has hired John Dedyo as corporate partner to its New York office. Dedyo represents issuers, underwriters, asset managers, credit enhancers, rating agencies and investors in all aspects of privately placed and publicly offered securitisation transactions. Dedyo was previously a partner at Weil, Gotshal & Manges.

    Ares Management and Ares Commercial Real Estate (ACRE) has hired .......

    Job Swaps 5 May 2017

  • Brexit may see CLO managers up sticks

    Article 50 may have recently been triggered following the Brexit referendum, but uncertainty remains rife about what it means for CLO managers in the UK. In combination with the slow-moving STS securitisation framework negotiations, CLO managers are consequently weighing up other jurisdictions and the possibility of issuing elsewhere in Europe.

    Jonathan Bowers, senior portfolio manager at CVC Capital Partners, comments .......

    News Analysis 5 May 2017

  • Risk transfer round-up - 5 May

    Capital relief trade activity has been relatively subdued this week. However, sources report that the EIF is planning to tap the market again in two months.

    The fund completed its first EFSI risk transfer transaction last month (SCI 26 April), as part of a programme to stimulate SME lending in Europe. Not much is known about the forthcoming transaction, other .......

    News 5 May 2017

  • European CLO investor base expands

    The European CLO investor base is broadening, thanks to less perceived volatility than in the US market. As well as the stability Europe offers, panellists at IMN's European CLOs and Leveraged Loans conference last month said that low defaults and strong collateral quality is driving renewed interest in European CLOs across the capital stack.

    While European investors have dominated the .......

    Talking Point 4 May 2017

  • Job swaps round-up - 28 April

    EMEA

    Ashurst has promoted Alex Biles and Malcolm Charles to its partnership in London. Biles advises on a broad range of debt capital market products, including structured finance. Charles is a member of the firm's corporate trust and agency practice, advising on securitisations.

    Tikehau Capital has appointed Peter Cirenza as head of its London operations. His new role is aimed .......

    Job Swaps 28 April 2017

  • Risk transfer round-up - 28 April

    Deutsche Bank closed its CRAFT CLO 2017-1 this week (see SCI's capital relief trades database). The US$371m seven-year notes reference a US$5.3bn corporate loan portfolio and have a three-year call.

    Sources also suggest that Nordea is prepping another risk transfer transaction. The Nordic issuer's last trade was an €8.4bn transaction with PGGM last year (SCI 25 August 2016).

    At .......

    News 28 April 2017

  • US CLOs still slow

    The US CLO secondary market is still slow thanks to a combination of factors.

    "So many bonds are trading at a premium that it makes trades difficult because it's hard for there to be a meeting of minds on value," says one trader. "Also, with so much of the market becoming callable everyone is expecting to be refi'd out of positions, .......

    SCIWire 27 April 2017
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