CLOs

  • 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

  • Meeting of worlds

    Opportunities for ABS originators as private and syndicated debt markets converge

    Private credit transactions are playing an increasingly prominent role in the structured finance landscape, owing to the continued global growth of the direct lending space. The trend is being reinforced by high-profile entrants into private debt, as banks and asset managers look to diversify into new asset classes.

    “Structured credit has not really played a significant role in .......

    News Analysis 12 May 2023

  • Rapid rise in defaults for Gedesco TRS

    Sector developments and company hires

    Rapid rise in defaults for Gedesco TRS
    The ratings on €191.8m of notes issued by Gedesco Trade Receivables 2020-1 have been downgraded in light of the significant and rapid increase in defaults observed in March, following the start of the securitisation’s amortisation phase in January. Specifically, Moody's states that most obligors have reportedly stopped paying and recoveries are likely to .......

    Market Moves 9 May 2023

  • Best interests

    Eric Brown, head of Performance Trust's Institutional Group, answers SCI's questions

    Q: Performance Trust announced its entry into the CLO market with the creation of its new CLO trading desk last month (SCI 11 April). What makes now the right time?
    A: CLOs are something that we’ve been looking into for quite some time now and figuring out the right time for us to get involved isn’t necessarily market-based, but .......

    The Structured Credit Interview 9 May 2023

  • Apollo launches new platform for global wealth investors

    Sector developments and company hires

    Apollo launches new platform for global wealth investors

    Apollo Global Management has launched an investment platform aimed at global wealth investors, as the firm looks to expand its wealth business outside of the US. Apollo Private Markets SICAV, which will offer investors in EMEA, Asia and Latin America tailored access to a portfolio of alternative investment .......

    Market Moves 3 May 2023

  • Don't compare

    Collaboration key to ESG progress

    Comparison may be the thief of all ESG-joy for the securitisation market, as attendees at SCI’s 2nd Annual ESG Securitisation Seminar this week reflected on how far the industry has come since the inaugural ESG issuance seven years ago. Different financial sectors adopt different definitions for ESG and thus also face different challenges. However, given such differences, more praise .......

    Talking Point 28 April 2023

  • SCI In Conversation podcast: Seth Painter, Antares Capital

    We discuss the hottest topics in securitisation today...

    In this episode of the SCI In Conversation podcast, Seth Painter, head of structured products at Antares Capital in New York, discusses the development the CLO middle market space and its importance to the funding of the direct lending business at Antares. While the traditional BSL market has been in the doldrums, the middle market space is on fire.

    The episode can be .......

    News 27 April 2023
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