CLOs

  • Investment firm grabs boutique

    New York Life Investments has acquired Credit Value Partners (CVP), an investor in opportunistic and distressed debt and high yield corporate credit. The acquisition, which is subject to customary closing conditions, is expected to close in 1Q17 but terms of the transaction were not disclosed.

    The acquisition is part of New York Life's broadening of its investment offering, which now .......

    Job Swaps 6 January 2017

  • CLOIE positive returns continue

    The total amount of CLOs paid down in the JPMorgan Collateralized Loan Obligation Index (CLOIE) since the November rebalance through 30 December was US$12.78bn in par outstanding, split between US$1.01bn and US$11.77bn of pre-crisis and post-crisis CLOs. The post-crisis CLOIE added US$19bn across 191 tranches from 43 deals at the December rebalance.

    Full-year 2016 CLOIE total returns were 4.69% and .......

    News Round-up 4 January 2017

  • Firm inks CLO buyout

    Marble Point has acquired American Capital CLO Management (ACCLOM), an investment manager with approximately US$3.4bn in AUM across eight CLO vehicles. Marble Point and affiliates will acquire majority equity positions in seven of the CLOs, with ACCLOM and the CLOs expected to be rebranded as part of the Marble Point platform.

    Marble Point hopes that the transaction will diversify and expand .......

    Job Swaps 4 January 2017

  • Slew of risk transfer trades close

    A handful of capital relief trades closed in late December, including an unusual deal referencing a portfolio of auto loans. While this transaction was unfunded, the other deals involved the issuance of credit-linked notes.

    The auto transaction, known as Project Phaeton, references a £571m five-year replenishing portfolio of loans to private retail and commercial customers for the finance and lease .......

    News 3 January 2017

  • CLO solution dismissed

    The District Court for the District of Columbia last month ruled against a risk retention solution for CLOs proposed by the LSTA (SCI passim). The association says it strongly believes that the court erred and that regulatory agencies inappropriately applied the risk retention rule to CLO managers.

    CLOs performed extraordinarily well before, during and after the financial crisis. Indeed, the .......

    News Round-up 3 January 2017

  • Property prospects

    Hiring remains flat, but CMBS up-tick possible

    CMBS could provide a hiring boost in the US in 2017, while structured finance recruitment is likely to remain mostly flat globally. In the UK, senior hires are few and far between, but banks are still recruiting junior executives to develop smaller structuring teams.

    Chadrin Dean, president and managing partner for Sandford Rose Associates,
    Integrated Management, says that over the last .......

    News Analysis 23 December 2016

  • EBRD lends weight to Greek push

    The EBRD is investing up to €50m in the senior notes of a Greek SME CLO dubbed Alpha Proodos. The underlying loans in the asset pool are originated by Alpha Bank of Greece.

    The securitised pool will have a one-year revolving period. The total CLO size is expected to be €640m, split between €320m in senior notes and €320m in .......

    News Round-up 22 December 2016

  • CLO BWIC volume tallied

    JPMorgan figures as of 15 December suggest that US CLO BWIC volume is down by 25% in 2016 to US$26.99bn, while European volume decreased by 32% to €5.06bn. In contrast, CLO BWIC volumes rose by 50% in the US and 6% in Europe last year.

    In the US, the first and second halves of 2016 saw almost identical CLO BWIC .......

    News 20 December 2016

  • Capturing the liquidity premium

    Interest rate rises could increase volatility in the structured credit market, creating opportunities for relative value plays. Against this backdrop, junior CLO debt is seen as particularly attractive.

    The spread premium associated with structured credit products remains compelling and is exacerbated by low interest rates, according to Ahrash Daneshvar, md at ZAIS Group. "In a low rate world, it's obvious .......

    News 20 December 2016

  • Structured credit pro poached

    Intermediate Capital Group has appointed Brian Marshall as md of business and product development for its US capital markets business. In this role, he will interact extensively with ICG's global distribution team, with responsibility for capital formation, developing and managing investor relationships, and contributing to the development of new products.

    Marshall has over 18 years of experience in credit and .......

    Job Swaps 20 December 2016

  • Mixed blessing

    Retention rules not so onerous for CRE CLOs

    Risk retention requirements raise interesting issues for the CRE CLO sector. The typical CRE CLO model already includes holding the bottom of the capital stack, but the way in which that is done may well fall foul of the regulators' rulebook.

    The fact that CRE CLO sponsors frequently retain 10% or more of the bottom of the capital stack should .......

    News Analysis 20 December 2016

  • Coupon clippers

    Euro CLO refi activity to accelerate

    Refinancing activity is expected to accelerate in Europe in the coming year as the cost of funding encourages more CLO managers to employ the option. Anticipating the impending refinancing wave is deemed significant from both a market value and portfolio management perspective.

    "Most European CLO 2.0 deals include provisions for refinancing within the documentation," says Angus Duncan, partner at Cadwalader, .......

    News Analysis 16 December 2016

  • US CLOs keep tight

    US CLO secondary spreads are keeping tight as demand continues.

    "Secondary is still very tight despite the continued flow of re-sets," says one trader. "In particular, the double-B rally continues but is still offering relative value and seeing strong demand."

    The trader adds: "Overall we have created a market where people are happy to chase paper. As a result, secondary .......

    SCIWire 15 December 2016

  • 'Mixed effects' from rate hikes

    The US Federal Reserve has raised interest rates from 0.25% to a range of 0.50%-0.75%, which will have varied implications for structured finance, according to Moody's. The rating agency adds that it expects the Fed to raise rates three more times in 2017 to 1.25%-1.50% year-end.

    Moody's comments that US consumers are generally "well-positioned to cope with rising debt expenses .......

    News Round-up 15 December 2016

  • Euro issuance drops

    €40.2bn of securitised product was issued in Europe in 3Q16, according to AFME's latest securitisation data report. This represents a decline of 46.5% from 2Q16 (€75bn) and a decline of 30.3% from 3Q15 (€57.6bn).

    Of the €40.2bn issued, €16bn was placed (representing 39.8% of issuance), compared to €29.3bn placed in 2Q16 (representing 39.1%) and €18.6bn placed in 3Q15 (representing 32.3%). .......

    News Round-up 15 December 2016

  • Euro secondary unmoved

    The Fed's announcement yesterday appears to have had little effect so far as the European securitisation secondary market resolutely sticks to recent patterns.

    There continue to be pockets of activity across the ABS/MBS secondary market. Tone generally remains positive and spreads unchanged with the exception of Portuguese paper, which continues to edge wider.

    However, CLOs are busier in comparison with .......

    SCIWire 15 December 2016

  • Replacement chiefs named

    Och-Ziff Capital Management has named Alesia Haas cfo and David Levine chief legal officer. Current cfo Joel Frank and chief legal officer David Becker have each decided to retire.

    Haas previously served as cfo and head of strategy for OneWest Bank. Her prior experience includes senior finance, investment and strategy roles with Merrill Lynch and General Electric.

    Levine has been .......

    Job Swaps 14 December 2016

  • US CLOs stay strong

    The US CLO secondary market remains strong.

    "There's not a huge amount going on because of the time of year, but what is trading is trading pretty well," says one trader. "In fact we're trading more CLOs above par than ever before."

    Investor appetite is now evident throughout the capital structure, the trader notes. "For a long time the bottom .......

    SCIWire 13 December 2016

  • Euro ABS/MBS ticks over

    The European ABS/MBS secondary market continues to tick over.

    As with the previous week it's been a solid if unspectacular start to this. BWICs continue to drive the action and trade well. For now, sentiment remains positive, albeit with some softening of tone in weaker peripherals, especially Portuguese names.

    There are currently three BWICs on the European ABS/MBS schedule for .......

    SCIWire 13 December 2016

  • Innovative CLO structured

    AllianceBernstein subsidiary AB Private Credit Investors has priced its inaugural middle-market CLO. Dubbed ABPCI Direct Lending Fund CLO I, the US$351.3m transaction has a unique feature, whereby a pro-rata percentage of both the collateral and notes can be partitioned off into separate entities (ABPCI Direct Lending Fund CLO I First Static Subsidiary and ABPCI Direct Lending Fund CLO I Second .......

    News Round-up 12 December 2016

  • Independent directors named

    TICC Capital Corp has appointed two new independent directors - Richard Neu and George 'Chip' Stelljes - to its board. The appointments expand the number of directors on the TICC Capital board to seven, five of whom are independent. The pair will serve on the company's audit, nominating and corporate governance, valuation and compensation committees.

    Neu previously served as a .......

    Job Swaps 9 December 2016
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