CLOs

  • US CLOs weaken

    The late start to the week for the US CLO secondary market saw signs of weakness yesterday and tone will be tested further today.

    "There's a little bit of caution coming back into the market as volatility creeps back into broader markets and consequently ours," says one trader. "We've got a large number of lists today, which may well start .......

    SCIWire 19 May 2016

  • Collateral concerns cause downgrades

    The ratings on the class E notes of Mountain Hawk I CLO and on the class D and E notes of Mountain Hawk II CLO have been downgraded by S&P. Mountain Hawk I has been affected by a decline in supporting collateral and increase in triple-C rated or defaulted assets, while Mountain Hawk II has also suffered significant par loss.

    The .......

    News 19 May 2016

  • CDO trading abuses alleged

    Megan Messina, a Bank of America md and co-head of structured credit products, has filed a discrimination lawsuit against the bank that includes allegations surrounding its supposed role in misleading CLO trading partners and clients. In particular, the lawsuit highlights the alleged role that Messina's colleague and co-head of global structured credit products David Trepanier played in the supposed abuse .......

    News 19 May 2016

  • Middle-market warehouses analysed

    Investment in middle-market CLO warehouses is on the rise, according to DBRS. These facilities share similarities with typical bank loan and middle-market CLOs, but have key structural elements that differ in order to match the characteristics and typical lifecycle of lending to middle-market borrowers.

    Warehouse securitisation facilities have historically been funded by banks, clubs of investors or ABCP conduits without .......

    News Round-up 19 May 2016

  • Euro secondary strong but slow

    Sentiment remains strong across the bulk of the European securitisation secondary market but away from CLOs activity remains very slow.

    ABS/MBS secondary continues to be hampered by lack of supply as BWICs have remained thin on the ground this week. Meanwhile, flows are highly selective and almost exclusively dealer-driven.

    There is more activity being seen in the CLO space, however. .......

    SCIWire 19 May 2016

  • SFIG adds advocacy leader

    SFIG has named Thomas McCrocklin as director of advocacy. He will report directly to executive director Richard Johns and will lead the group's interactions with regulators and legislators.

    McCrocklin was most recently vp and head of federal affairs at Zurich North America. He has also served as senior counsel on the US House of Representatives Committee on Financial Services and was .......

    Job Swaps 18 May 2016

  • Fund targets new structured opportunities

    Semper Capital Management is prepping a new alternative asset strategy to seize new opportunities in structured credit resulting from a combination of post-crisis regulatory changes and disruptive technology. The firm has begun making investments in target assets and will officially launch the fund on 1 June.

    "New, previously impossible products are being created as a result of big data and .......

    Job Swaps 18 May 2016

  • Dynamic appointment approved

    The controlling class of Strawinsky I CLO, acting by ordinary resolution, has not disapproved the appointment of Dynamic Credit Partners Europe as successor investment manager. Dynamic will therefore, subject to the other conditions of the master investment manager terms, be appointed as successor investment manager for the transaction. The move follows the objection of a class B noteholder to the .......

    Job Swaps 18 May 2016

  • 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
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