CLOs

  • CLO indices increase eligibility

    Palmer Square Capital Management has announced a methodology change to its Palmer Square CLO Senior Debt Index (CLOSE) and the Palmer Square CLO Debt Index (CLODI). The update is effective from the latest rebalance of the indices on 31 March.

    CLOs eligible for inclusion in CLOSE now include deals that are larger than US$500m (previously US$600m). Additionally, CLOs eligible for .......

    News Round-up 4 April 2016

  • Rating agency adds sales chief

    Scope Ratings has appointed Sven Janssen to the newly-created role of chief sales and marketing officer, effective from today (1 April). He was previously head of debt capital markets at Oddo Seydler Bank and has also worked at Macquarie, Bank Metzler, Bank Sal Oppenheim and Hawkpoint Partners.

    .......

    Job Swaps 1 April 2016

  • CLO equity portions evaluated

    Additional expected defaults within US CLOs this year is prompting bondholders to direct greater focus to the equity portion within transaction restructurings, according to Fitch. The increasing presence of equity in the near term could arise from a combination of distress in commodity sectors and non-commodity issuers suffering from high pre-petition leverage, struggling business models and declining enterprise valuations.

    Fitch explains .......

    News Round-up 1 April 2016

  • US CLOs still strong

    The US CLO secondary market looks like it is set for a quieter day today, but sentiment is still strong.

    "It's relatively quiet today thanks to quarter-end, but we saw quite a bit of activity yesterday and spreads are still firm," says one trader. "A high proportion of bonds traded on the bid lists yesterday and once the new quarter .......

    SCIWire 31 March 2016

  • Euro secondary stifled

    Sentiment continues to be strong across the European securitisation market but technicals are stifling activity.

    Buying interest remained apparent throughout ABS/MBS yesterday with the exception of UK RMBS, which is seeing some investors hold back over Brexit uncertainty. However, flows overall were still light and there were significant DNTs on BWIC as the gap in buyer and seller expectations for .......

    SCIWire 31 March 2016

  • US CLOs busy

    Supply keeps on coming in the US CLO secondary market.

    "It's very busy day today, which is a function of both quarter-end and spreads continuing to tighten," says one trader. "That's especially true in mezz, which was underwater and now very clearly isn't."

    Consequently, the trader adds: "We're seeing people testing mezz demand and every day seems to see a .......

    SCIWire 30 March 2016

  • Euro secondary returns

    After a quiet few sessions surrounding the long weekend the European securitisation secondary market looks to be returning to life.

    Yesterday once again saw light activity but tone remains overwhelming positive across most European ABS/MBS sectors and spreads remain well supported as more and more participants return post-Easter. Meanwhile, CLOs continued to lead the way in terms of both activity .......

    SCIWire 30 March 2016

  • QCLO bill positives underlined

    The Barr-Scott bill could pose indirect positive effects on the US CLO and leveraged loan markets by lowering the risk retention burden for managers bringing new deals to the market, Moody's reports. The bill passed the House Financial Services Committee earlier this month and now awaits potential passage in the House and the Senate (SCI 4 March).

    The legislation introduces .......

    News Round-up 29 March 2016

  • Japanese rating upgrades increase

    The upgrade rate for Japanese structured finance securities rose in 2015, notes S&P. S&P Japan raised 8.3% of its outstanding ratings on Japanese structured finance securities last year, up from 4.5% in 2014.

    The 2015 upgrade rate exceeded the downgrade rate of 4.5% and resulted in an upgrade-to-downgrade ratio of 186%, which also surpassed the 2014 ratio of 143%. Separately .......

    News Round-up 29 March 2016

  • Chinese ABS expansion 'to continue'

    China's securitisation market will continue to grow this year, albeit at a slower pace than in 2015, says Fitch. Issuance last year doubled to reach a record CNY600bn from more than 300 transactions.

    Market expansion will be driven by regulatory changes which have made it simpler and more efficient for financial institutions to issue structured finance securities. The rating agency .......

    News Round-up 29 March 2016

  • Credit Suisse exits European ABS

    Credit Suisse is pulling the plug on its European ABS presence as it revealed new details on its global restructuring plans. The bank confirmed that it will end operations in European securitised product trading, along with distressed credit and long-term illiquid funding.

    Capital allocation will also be reduced in a number of other areas, which it describes as 'not consistent' with its new strategy. .......

    Job Swaps 24 March 2016

  • US CLO surge

    There is a surge in US CLO secondary supply today.

    Sellers appear to be looking to capitalise on the continuing mezz bid on the last full trading day ahead of the long weekend with a considerably larger number of auctions than in recent sessions. The move follows most of yesterday's lists trading reasonably well with the exception of the large .......

    SCIWire 23 March 2016

  • Euro secondary steady

    Activity in the European securitisation secondary market is steady rather than spectacular at present.

    Liquidity grows ever thinner as the long holiday weekend approaches and light, patchy flows continue to characterise the market. Yesterday's BWICs traded reasonably well for the most part, though the ABS/MBS lists yielded little colour. For now at least spreads across the board remain stable despite .......

    SCIWire 23 March 2016

  • US CLOs come back

    The US CLO secondary market's recent return to form is gaining a firmer footing.

    "We're definitely seeing a bid in the market across the capital structure and after trading down so far it's really coming back," says one trader. "From our side we're looking for double- and triple-As and they're proving very difficult to find."

    However, the trader adds that .......

    SCIWire 22 March 2016

  • Hildene ends CLO presence

    Hildene Leveraged Credit (HLC) has sold the management contracts of four US CLOs to an affiliate of Fortress Investment Group. The sale, which totals US$1.4bn in assets, signals HLC's exit from the CLO business. The CLOs will now be managed by the Fortress-affiliated group.

    Terms of the agreement were not disclosed. Ted Gooden of Berkshire Capital served as financial advisor to Hildene .......

    Job Swaps 22 March 2016

  • Settlement failure provisions assessed

    New CLO provisions that allow for certain asset-settlement failures without triggering an EOD are credit positive because they help otherwise healthy transactions avoid a potential acceleration or liquidation, Moody's notes in its latest CLO Interest publication. These provisions allow redemption notices to be unconditionally withdrawn one or two business days before the scheduled redemption, or exclude any failure to execute .......

    News Round-up 22 March 2016

  • Euro CLO stutter

    The rally in the European CLO secondary market looks to have stuttered a little over the past couple of sessions.

    In line with European securitisation secondary in general, which in turn has been in step with broader markets, the end of last week and the start of this have been fairly quiet in European CLOs. However, after the boom in .......

    SCIWire 22 March 2016

  • Energy weighs on CLOs

    The energy sector is driving credit deterioration within US CLOs, observes Moody's, which was a key factor in worsening WARFs in 2015. The median WARF dropped for both CLO 1.0s and 2.0s last year, with the former moving up to 2411 from 2399 and the latter from 2772 to 2782.

    Rating downgrades to energy and commodity sector issuers is weighing down .......

    News Round-up 18 March 2016

  • Euro secondary upswing

    The European securitisation secondary market is seeing an upswing in activity once again.

    Yesterday saw an uptick in activity after a quieter Wednesday, although focus remains very patchy. Peripherals fared well as did UK non-conforming, which began to reverse recent widening amid strong execution across the session's MBS BWICs. However, it was CLOs that once again led the way with .......

    SCIWire 18 March 2016

  • EMEA trust head appointed

    BNY Mellon has promoted Tom Ahern to head its corporate trust business in the EMEA region. He previously led BNY's corporate trust business in Ireland, while simultaneously leading the global analytics functions for the corporate trust operation.

    Ahern's background includes working in CLOs and loan administration. He has worked additionally in BNY's structured portfolio services business within EMEA corporate trust. .......

    Job Swaps 17 March 2016

  • German SME CLO defaults dropping

    The fall in German corporate insolvencies in 2015 will help stabilise German SME CLO deals, says Fitch. The transactions will mostly benefit from a knock-on reduction in default rates, which are already declining.

    Germany's Federal Statistical Office said last week that the country's local courts had reported 23,123 business insolvencies in 2015, which was down 4% on the previous year and at the lowest .......

    News Round-up 17 March 2016
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