CLOs

  • EBA consults on 'implicit support'

    The EBA has launched a consultation regarding its guidelines on implicit support for securitisation transactions. The guidelines were drafted to provide clarity on what constitutes 'arm's length conditions' and when a transaction is not structured to provide support for securitisations.

    The capital requirements regulation (CRR) foresees restrictions on implicit support to securitisations due to significant supervisory concerns and the belief .......

    News Round-up 21 January 2016

  • Euro CLOs suffer

    The European CLO secondary market is suffering under heavy selling pressure.

    "Activity is almost entirely driven by selling from accounts," says one trader. "The only demand we are seeing is for short-dated bonds and there is none whatsoever for 2.0 paper."

    Consequently, the trader continues: "We're seeing BWIC after BWIC in the 2.0 space. However, we're seeing no colour from .......

    SCIWire 21 January 2016

  • Manager invests in structured experience

    Alberta Investment Management Corporation (AIMCo) has strengthened its relationship with DFG Investment Advisers through the acquisition of a minority ownership stake in the asset manager's holding company. DFG's expertise is in structured credit and leveraged corporate debt markets and has an institutional client base in North America and Asia.

    .......

    Job Swaps 21 January 2016

  • US CLOs light

    The holiday-shortened week has not produced the usual boost to activity and volumes in US CLO secondary market continue to be light.

    "Especially with the lack of primary activity you'd expect an uptick in secondary, but total visible BWIC volume is light," says one trader. "Prices are falling, which is making sellers reluctant, but month-end is coming and that will only .......

    SCIWire 20 January 2016

  • CLO issuance set to drop

    The pace of new US CLOs coming to market could be set to decline as looming risk retention takes a stranglehold, according to Fitch. The rating agency's observation comes despite a December flurry which saw 15 new deals.

    However, new issuance overall for 2015 was down from the previous year, at US$93.1bn in 2015 from US$116.2bn in 2014. There are also fewer .......

    News Round-up 20 January 2016

  • Euro secondary story unchanged

    Yesterday's improvement in broader markets did not change the story in the European securitisation secondary market and this morning's macro weakness is likely to keep it that way.

    "Yesterday things were a bit better overall and credit indices came in some way," says one trader. "However, little changed in our sector."

    Instead, recent trends continue, the trader says. "Senior prime .......

    SCIWire 20 January 2016

  • Swaps allow for higher ratings

    Cross-currency swaps that mitigate the effect of foreign exchange controls have enabled Moody's to assign ratings above the applicable foreign currency bond ceilings to foreign currency-denominated securitisation transactions, says the rating agency. Without these features such ratings would not be attainable.

    "To mitigate the transferability and convertibility restrictions, an offshore swap counterparty typically receives local currency payments from an onshore .......

    News Round-up 19 January 2016

  • CLO structural tweaks emerging

    Moody's expects more multi-currency deals to emerge within the European CLO market in 2016, with sterling-denominated exposures becoming the preference. The agency also predicts that new CLO structures overall will adapt to market changes in a strong fashion.

    For example, many of the new structures will share similar characteristics to their 2015 counterparts, with subordination likely to remain around 41% - .......

    News Round-up 19 January 2016

  • Euro secondary hesitant

    It was an unsurprisingly quiet day yesterday in the European securitisation secondary market as participants appear hesitant to return to the fray.

    As a result of the US holiday and continuing broader market volatility it was a quiet session yesterday even for a Monday. Many investors remained sidelined and appear to be waiting for some signs of broader credit stability .......

    SCIWire 19 January 2016

  • Mid-market platform bolstered

    Kayne Anderson Capital Advisors has hired James Hunt as managing partner and ceo of its middle market credit platform. He will lead this arm of the asset manager as it continues to provide debt capital solutions to mid-market clientele with first and second lien secured debt, last-out financing, unitranche and mezzanine financing.

    Previously, Hunt was the founding chairman, ceo and .......

    Job Swaps 18 January 2016

  • Euro secondary resilient

    The European securitisation secondary market remained resilient into Friday's close despite broader market volatility.

    That volatility continues to ensure that activity is patchy, however. Nevertheless, the last session of the week was reasonably busy for a Friday as technicals, notably lack of supply, continue to support spreads and fuel buying interest.

    The major beneficiaries are still ECB-eligible peripherals, CMBS and .......

    SCIWire 18 January 2016

  • Green bond RFC issued

    Moody's has issued a request for comment on its proposed approach and methodology for evaluating an issuer's management, administration and reporting on environment projects financed through green bonds. The rating agency's green bonds assessment will apply to fixed income securities that raise capital for use in projects or activities with specific climate or environmental sustainability purposes.

    This would include debt .......

    News Round-up 15 January 2016

  • Euro secondary steady

    The European securitisation secondary market continues to see steady activity and pricing levels are for the most part stable.

    Once again, yesterday's activity was driven primarily by BWICs and flows off the back of those auctions. The main interest surrounded autos following the Renault raid with a few sellers emerging after the news broke, but by the close buying interest had .......

    SCIWire 15 January 2016

  • US CLOs still searching

    The US CLO secondary market is still searching for pricing clarity, meanwhile Trups CDOs are generating some interest.

    "We're still in an exploratory phase," says one trader. "There's bit more activity today in terms of BWICs, but most players are still trying to figure out where things are going to go longer term. Shorter-term it's obviously difficult to ignore the .......

    News Analysis 14 January 2016

  • CLO market concerns catalogued

    While the US CLO market recorded its second-highest full-year issuance in 2015, CLO market participants remain concerned by fundamentals, technicals and liquidity. Oil prices are also a considerable concern, but interest rates are not, while risk retention clarity has continued to increase as the implementation deadline draws closer.

    JPMorgan's sixth annual CLO market survey was conducted in December and polled 91 .......

    News 14 January 2016

  • AXA IM boosts SF team

    AXA Investment Mangers has appointed The Duy Nguyen as senior portfolio manager. He will be based in Paris and report to co-head of securitised and structured assets Alexandre Martin-Min.

    Nguyen will be responsible for managing multi-asset class portfolios within AXA IM's structured finance team. He was most recently at Natixis and has also worked at Société Générale.

    .......

    Job Swaps 14 January 2016

  • Euro secondary unchanged

    The European securitisation secondary market looks to be keeping to the same pattern seen in previous sessions - quiet away from a reasonably active BWIC calendar.

    "This week flows have been relatively quiet because of the very high volatility in broader credit," says one trader. "Today is looking like it will be no different."

    There have, however, been some pockets .......

    SCIWire 14 January 2016

  • US CLOs stalled

    The hoped for New Year revival in the US CLO secondary market is still stalled.

    "Everyone is just waiting and watching," says one trader. "Waiting for the secondary market to get going in 2016 and waiting for new issue pricing - there are a few deals marketing, but nothing concrete to go on yet."

    Nevertheless, the trader adds: "There's nothing .......

    SCIWire 12 January 2016

  • Fund offers core assets access

    AXA Investment Managers has launched a fund offering investors access to the core lending activity of major European commercial banks. The AXA IM Partner Capital Solutions fund raised €230m last year.

    As banks increase lending to their core professional clients, regulatory requirements to provide more upfront capital provide an opportunity for capital relief trades where the fund identifies suitable lending portfolios .......

    Job Swaps 12 January 2016

  • European property platform boosted

    HIG Capital has added Graham Emmett to its real estate team. He joins as md and will be based in London.

    Emmett was most recently an investment partner in Cheyne Capital's real estate division. He has also worked at firms such as ICG Longbow and was head of the European mezzanine debt investments team for Goldman Sachs' special situations group .......

    Job Swaps 12 January 2016

  • Euro secondary seeks change

    The European securitisation secondary market is still stable and fairly quiet, but that could change quickly.

    "The market remains stable as it has been for the last week despite broader market volatility," says one trader. "Not a lot went on yesterday even though the wider market was calm."

    However, the trader continues: "Secondary market tone feels constructive and while wider volatility means .......

    SCIWire 12 January 2016
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