CLOs

  • Homogeneity RTS released for STS synthetics

    Sector developments and company hires

    Homogeneity RTS released for STS synthetics
    The EBA has published its final draft regulatory technical standards (RTS) setting out the conditions for the assessment of the homogeneity of underlying exposures in STS on-balance sheet securitisation pools. At the same time, the authority has extended the existing work on the RTS on homogeneity for both ABCP and non-ABCP securitisations to ensure .......

    Market Moves 14 February 2023

  • Incorporating climate risk

    Carbon accounting for CLOs examined

    Janus Henderson Investors has developed a bespoke methodology to estimate Scope 1 and 2 carbon emissions represented in secured loans and corporate credit exposures, which can then be applied to CLO portfolios. The benefits of understanding climate-related risks within portfolios include the ability to undertake carbon relative analysis, as well as guide corporate engagements regarding current and future decarbonisation .......

    News Analysis 13 February 2023

  • MK&C acquisition prompts CS carveout

    Sector developments and company hires

    MK&C acquisition prompts CS carveout
    Credit Suisse has progressed the carveout of CS First Boston as a distinct capital markets and advisory-led business (SCI 28 October 2022) through the acquisition of The Klein Group (MK&C), for a purchase price of US$175m. The seller will receive equity in CS First Boston in the form of a convertible note, while Michael .......

    Market Moves 10 February 2023

  • Status quo or status go?

    Law firm designation practices questioned

    Dissatisfaction is growing among private credit funds and direct lenders regarding the common practise of law firm designation, whereby sponsor counsel can choose which counsel advises the lenders. The concern is that such a scenario could force them into less favourable positions in negotiations over securitisation transactions.

    “The problem really is as simple as the private equity funds .......

    News Analysis 10 February 2023

  • SPG spin-out rebranded as ATLAS

    Sector developments and company hires

    SPG spin-out rebranded as ATLAS
    Apollo and Credit Suisse have completed a substantial first close of their previously announced transaction, under which affiliates of the former purchased a significant portion of the latter’s securitised products group (SCI 28 October 2022). A majority of the assets and professionals associated with the transaction are now part of or managed by the .......

    Market Moves 9 February 2023

  • Green auto ABS debuts

    Sector developments and company hires

    Green auto ABS debuts
    Toyota Financial Services Italy is in the market with Koromo Italy, an Italian STS auto ABS backed by a €412.4m portfolio fully comprising new hybrid, plug-in and electric vehicles (SCI ABS Markets Deal Alert - 7 February). The pool consists of 22,344 auto finance contracts extended to 22,298 borrowers, with a weighted average seasoning of .......

    Market Moves 8 February 2023

  • Electronic loan trade completed

    Sector developments and company hires

    Electronic loan trade completed
    Octaura has completed its first entirely electronic syndicated loan trade. The news comes after the official launch of Octaura Holdings last year, which was founded with the intention to improve efficiency, liquidity and transparency in the CLO and syndicated loan trading processes (SCI 14 June 2022).

    At present, the US$1.5trn syndicated loan market functions .......

    Market Moves 2 February 2023

  • Time to shine

    Multi-sector structured credit 'top performer'

    Gapstow Capital Partners’ composite credit hedge fund index last year posted its lowest annual return – having declined by 3.9% - since its inception in 2009, with no peer group within the index producing a positive average return. Nevertheless, the multi-sector structured credit peer group - the funds of which invest across CLOs, MBS and ABS - was the .......

    News 2 February 2023

  • Book building

    Peter Polanskyj, senior md and head of structured credit at Obra Capital, answers SCI's questions

    Q: Vida Capital recently rebranded to Obra Capital (SCI 16 December 2022). Could you explain why this signifies an important milestone for the firm?
    A: Rebranding was a natural step for the firm. Vida – which means ‘life’ in Spanish - was historically a life settlements investment firm. However, the firm is now focusing on diversifying its investment mandate, .......

    The Structured Credit Interview 30 January 2023

  • Panagram CLO ETF debuts

    Sector developments and company hires

    Panagram CLO ETF debuts
    Panagram Structured Asset Management has launched its first ETF - the Panagram BBB-B CLO ETF (CLOZ). The portfolio will primarily comprise triple-B and double-B rated CLO bonds and is expected to pay a monthly dividend.

    The firm says its goal is to provide investors with a liquid alternative to traditional fixed income, with attractive structural .......

    Market Moves 25 January 2023

  • ECON votes on output floor

    Sector developments and company hires

    ECON votes on output floor
    The European Parliament's Committee on Economic and Monetary Affairs (ECON) has voted to apply the capital requirements output floor at the consolidated EU level under CRR3, in order to engender comparable risk weights and avoid variations in capital levels. Additionally, the Committee has agreed transitional adjustments for low-risk exposures secured by residential mortgages to mitigate .......

    Market Moves 24 January 2023

  • Alternative credit acquisitions hit record AUM

    Sector developments and company hires

    Alternative credit acquisitions hit record AUM
    The AUM of acquired alternative credit managers hit a record US$326bn across 37 transactions in 2022, according to Gapstow Capital Partners figures, with acquisitions of private lending firms accounting for nearly half of this activity (15 acquisitions at US$161bn in target AUM). In comparison, the tally for the prior two years was US$140bn in .......

    Market Moves 23 January 2023

  • Seeking stability

    Philip Pirecki, head of business development at Jersey Finan...

    There are few things more disruptive to the investment management industry than instability. Financial institutions are experts in managing risk in their investments. One of the reasons they can achieve this is due to developed processes for anticipating and predicting events – they can rely on their models. Managers expect the same for their operations.  

    Structured finance .......

    Talking Point 19 January 2023

  • Chenavari bolsters continental footprint

    Sector developments and company hires

    Chenavari bolsters continental footprint

    The Chenavari Group has established a French subsidiary – Chenavari Asset Management .......

    Market Moves 17 January 2023

  • Call for additional index granularity

    Sector developments and company hires

    Call for additional index granularity
    SFA has submitted a letter to Fannie Mae and Freddie Mac in response to their Social Index (SCI 19 October 2022) that strongly advocates for additional transparency and granularity in how existing social metrics are reported to investors beyond the index. While the association commends the GSEs for their efforts to improve ESG data .......

    Market Moves 13 January 2023

  • Unemployment eyed

    Labour market key to Euro ABS outlook

    Some deterioration – both in collateral and ratings performance – across the European securitisation market is expected this year, given current global economic pressures. However, S&P suggests in its outlook for the sector that the ultimate impact of economic distress is largely dependent on how the labour market fares.

    At present, eurozone unemployment rates stand at 7% and .......

    News Analysis 13 January 2023

  • Balancing the equation

    Positive start for CLO assets and liabilities

    The first two weeks of 2023 have seen both a tightening in CLO liabilities and a rise in asset prices. At the same time, the triple-A bid appears to be reemerging.

    “The end of 2022 left a question mark for the CLO market, but 2023 has started to answer that question to some degree,” observes Erik Miller, partner and .......

    News Analysis 13 January 2023

  • CMBS ARAs at 'inflection point'

    Sector developments and company hires

    CMBS ARAs at ‘inflection point’
    US conduit CMBS appraisal reduction amounts (ARAs) have reached an inflection point, according to KBRA. A recent analysis undertaken by the rating agency shows that ARAs outstanding totalled US$3.6bn across 322 loans, as of November 2022, .......

    Market Moves 6 January 2023

  • SASB CMBS IRC agreements eyed

    Sector developments and company hires

    SASB CMBS IRC agreements eyed

    Nearly 75% of US floating rate single-asset/single-borrower (SASB) CMBS loans in KBRA-rated transactions have current interest rate cap (IRC) agreements with strike rates below their .......

    Market Moves 4 January 2023

  • Raiffeisen inks Romanian trade

    Sector developments and company hires

    Raiffeisen inks Romanian trade
    Raiffeisen Bank has partnered with the EIB Group to strengthen its financing capacity in Romania through a synthetic securitisation. The transaction enables Raiffeisen to provide up to RON523m of new financing to eligible SMEs and MidCaps over the next two years, with a reduced interest rate compared to other similar financing.

    The securitisation references a .......

    Market Moves 3 January 2023

  • NPL forward flow sale agreed

    Sector developments and company hires

    NPL forward flow sale agreed
    NPL Markets has acted as advisor to UniCredit on the sale of a portfolio of Italian non-performing unsecured loans with a claim value of approximately €90m to a vehicle managed by Kruk and to Credit Factor. Concurrently, the forward flows of Italian consumer loans that will be classified as bad loans in 2023 and 2024, .......

    Market Moves 23 December 2022
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