CLOs

  • US CLOs still becalmed

    The US CLO secondary market remains becalmed this week so far.

    After a fairly quiet end to last week, CLO BWIC activity is yet to get going this week with a conference in New York yesterday and today encouraging sellers to hold off until tomorrow. Indeed, Wednesday's auction calendar is already building strongly.

    For today, there are currently no US .......

    SCIWire 17 May 2016

  • CMBS, CLO data tie-up confirmed

    Trepp has purchased CLO data and cashflow analytics firm Codean. The UK-based firm has a US and European CLO deal library, which will be combined with Trepp's CMBS database to enable investors to perform deep analysis across two complementary asset classes.

    Codean's CLO analytics platform will become part of the Trepp solution suite. It is able to evaluate each tranche, .......

    Job Swaps 17 May 2016

  • Euro secondary slumbers again

    Yesterday saw another sleepy start to the week for the European securitisation secondary market.

    After a flurry of activity on Friday, the public holiday in Europe yesterday saw the whole market revert to the quieter pattern seen at the start of last week. Indeed, with many investors absent a CLO equity BWIC was postponed until Wednesday and flows across the .......

    SCIWire 17 May 2016

  • CLO pro moves on

    Nathan Abegg has joined KPMG as partner in its securitisation practice. He arrives from Deloitte & Touche, where he specialised in CLOs as a director for the firm. Abegg will be based in New York in his new role.   

    .......

    Job Swaps 16 May 2016

  • US CLOs pause

    The US CLO secondary market looks to be taking time to reflect this week.

    "It seems like the rally has taken a bit of a pause this week," says one trader. "People are looking at where things stand in respect to credit and deciding on what the path forward might be."

    However, the trader adds: "This week has turned out .......

    SCIWire 12 May 2016

  • Business services exposure gauged

    The credit quality of many business services sector issuers has deteriorated over the past year, which Moody's cites as credit negative for CLO 2.0 deals. The sector is the second-most widely held among these transactions, with 200 issuers accounting for approximately 12.1% of total CLO 2.0 collateral.

    Between January 2015 and April 2016, Moody's added seven more business services issuers .......

    News Round-up 12 May 2016

  • Euro secondary still sluggish

    Activity continues to be sluggish in the European securitisation secondary market despite the tone remaining firm across the board.

    In ABS/MBS, Tuesday saw a flurry of BWICs that traded well, but yesterday auction activity slowed once more. Flows continue to be generally light even though sentiment is positive with prime RMBS and autos, along with select peripheral names attracting the .......

    SCIWire 12 May 2016

  • Mid-market fund closes

    Czech Asset Management has closed its third direct lending fund complex, dubbed SJC III, with total commitments in excess of US$1.7bn. The fund's direct lending strategy will focus on providing privately negotiated, floating-rate senior secured loans to US middle market companies that generate revenue of US$75m-US$500m.

    The fund has exceeded its US$1.5bn target, with all of the capital raised coming .......

    News Round-up 11 May 2016

  • US CLOs ebb and flow

    The mezz rally in the US CLO secondary market halted last week and that part of the capital structure looks set to drift this week as equity paper takes up the slack.

    "It feels like we're in sideways mode today," says one trader. "Secondary volume is lighter across the board this week than it was last week when the mezz .......

    SCIWire 10 May 2016

  • Low-rated CLO risks downplayed

    Compared to the overall European high yield universe, a relatively small number of low rated CLOs exhibit early warning signs of potential defaults, says Moody's. In total, 23 (58%) of the 40 European CLO-held assets that Moody's has rated B3 or lower show early warning signs of potential default, while 76 (67%) of the 113 such issuers in the overall .......

    News Round-up 10 May 2016

  • Insurers' structured holdings slip

    Life insurers held more than US$380bn of structured products securities at the end of 2015, which Wells Fargo analysts note represents a decline of approximately US$20bn from year-end 2014. Insurers' balance sheets actually increased 2%, so the decreased allocation to structured products is even greater on a relative basis.

    As a percentage of total cash and fixed income, structured products' .......

    News 10 May 2016

  • Manager replacement in the balance

    The trustee for the Strawinsky I CLO has received notice from a class B noteholder disapproving the appointment of Dynamic Credit Partners Europe as successor investment manager (SCI 22 April). Pursuant to clause 10.5 of the master investment manager terms, the appointment of a replacement manager is subject to a simple majority of the controlling class (currently the class B .......

    Job Swaps 9 May 2016

  • Post-crisis CLO returns keep momentum

    The total amount of CLOs that paid down in JPMorgan's CLO Index (CLOIE) in April was US$3.54bn in par outstanding, split between US$2.92bn of pre-crisis CLOs and a further US$620m in post-crisis deals. The post-crisis index added an additional US$2.2bn at the April rebalance, spread across 30 tranches and six deals.

    The return on the CLOIE Total Index stood at .......

    News Round-up 5 May 2016

  • BlackRock names CLO head

    Josh Tarnow is taking over as head of BlackRock's CLO and bank loans business. This comes after Leland Hart's decision to step down from these roles to pursue other interests.

    A structural reorganisation within BlackRock's bank loans team in the US back in March 2015 saw it place Scott Snell and Adrian Marshall in charge of the day-to- day responsibilities .......

    Job Swaps 5 May 2016

  • Brexit risk to Euro CLO performance

    The European CLO market has seen €4.44bn in new issuance this year, slightly above the €4.39bn up to the same point in 2015, despite volatility in the secondary loan and wider financial markets earlier in the year, notes S&P. It is also despite the potential for further volatility due to geopolitical events such as the Brexit vote.

    CLO managers have .......

    News Round-up 5 May 2016

  • CLO 2.0 'more resilient'

    Post-crisis European CLO triple-A ratings would avoid downgrades even if faced with stresses similar to those experienced during the height of the financial crisis, says Fitch. This is due to greater credit enhancement and improved portfolio homogeneity.

    An analysis of Fitch-rated pre-crisis CLOs with similar collateral profiles to the new generation of transactions - including 190 tranches outstanding in 2007 .......

    News Round-up 4 May 2016

  • Euro CLO equity returns impress

    Overall European CLO equity returns have largely been as expected, according to a study by data and cashflow analytics firm Codean. Despite the global financial crisis, European CLO equity from the 2006 and 2007 vintages successfully "achieved what it said on the tin".

    Although all deals are sold on the assumption that investors will make solid returns, not all deals .......

    News Round-up 3 May 2016

  • US mid-market mix emerging

    Moody's expects the US mid-market loan sector to increase in variety if the upcoming 2016 to 2020 maturity wave coincides with an economic downturn. The agency expects CLOs, private equity firms, hedge funds and banks to play a larger role in the financing of mid-market companies.

    Non-banks have driven the majority of mid-market lending growth since 2007. They accounted for .......

    News Round-up 29 April 2016

  • Expanding manager debuts Euro deal

    BlueMountain Capital Management has closed its first European CLO with €410m in commitments, while it also continues to build out its European team. The firm closed four CLOs in the US last year.

    BlueMountain appointed Nick Pappas as European ceo last year (SCI 16 April 2015) and says it has a strong commitment to building its European presence. It hired .......

    Job Swaps 29 April 2016

  • Middle ground

    Issuance, investors challenging CLO mid-market

    Issuance within the US CLO market has dampened so far in 2016 as the sector suffers from the reverberations of wider credit market volatility. The CLO mid-market has not been exempt, but many of its issues remain tied to its small investor base.

    The sluggish start to the year has seen just US$9.9bn in US CLOs issued to date, according .......

    News 29 April 2016

  • European placements trending down

    Only €14.3bn of securitised product was placed in Europe in 1Q16, according to AFME's latest data snapshot on the market, as €42.5bn was retained.

    A total of €56.9bn was issued last quarter, a decrease of 20.3% from the €71.4bn issued in 4Q15. However, it was significantly up from the €35.3bn issued the same time last year - a 61.2% increase on 1Q15.

    News Round-up 28 April 2016

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