CLOs

  • Volcker amendments agreed

    An extraordinary resolution has been passed by St Paul's CLO II noteholders that amends the investment management agreement to comply with the Volcker Rule. Under the amendments, noteholders have the option to hold notes with different voting rights in respect of resolutions to remove or replace the CLO manager. This involves splitting each class of rated notes into three separate .......

    News Round-up 24 December 2015

  • US, Euro CLO BWIC activity up

    CLO BWIC volumes grew significantly in the US this year, while also rising modestly in Europe. US CLO BWIC volume for 2015 has been 50% higher than the previous year, while European BWIC volumes grew 6% to reach a new high.

    By original notional rather than amount traded, US CLO BWIC volume has reached US$35.51bn this year, according to JPMorgan .......

    News 23 December 2015

  • Electra anchors CLO

    Electra Partners has invested £13m in a new CLO managed by Blackstone/GSO Debt Funds Management Europe - an affiliate of GSO Capital Partners. The transaction is Tymon Park, a €414m CLO that invests in leveraged loans issued by predominantly private equity-backed companies in the US and Europe.

    The CLO has a 13-year life and is invested in more than 80 .......

    News Round-up 22 December 2015

  • RMBS, CLO fraud admitted

    A former co-head of US ABS, RMBS and CMBS trading at RBS Securities has waived his right to indictment and pleaded guilty to participating in a multimillion dollar securities fraud scheme. Adam Siegel admitted that he and colleagues conspired to increase RBS's profits on CLO and RMBS trades at the expense of customers.

    Siegel held the role at RBS from .......

    Job Swaps 22 December 2015

  • EBA makes synthetic STS suggestion

    The EBA supports the limited extension of the prudential treatment granted to simple, transparent and standardised (STS) securitisations to banks that originate and retain certain SME balance sheet synthetic securitisation positions. The authority has published criteria to determine transaction eligibility.

    The EBA has examined the synthetic securitisation market and, based on its findings, supports the extension of STS capital requirements .......

    News Round-up 21 December 2015

  • US CLOs unclear

    Little price clarity was achieved in yesterday's US CLO secondary market, but supply keeps coming.

    No pricing colour was released for the majority of yesterday's bonds in for the bid leaving pricing levels post Fed lift-off still unclear. In the equity space, where prices are most heavily impacted by rate rises, of the three line items on BWIC only one .......

    SCIWire 18 December 2015

  • Italian regs boost ABS

    The Bank of Italy's regulatory framework enacted in 2015 for financial intermediaries carrying out servicing activities is credit positive for all Italian structured finance deals, says Moody's. Certain types of consumer ABS deals - Cessione del Quinto (CDQ) and Delegazione di Pagamento (DP) - will benefit the most.

    Moody's notes that organisational and risk-control requirements for servicers will become stricter .......

    News Round-up 18 December 2015

  • Euro secondary stalls

    Activity in the European securitisation secondary market has stalled.

    Year-end illiquidity was fully in evidence yesterday with an extremely slow day across the board and secondary spreads closed unchanged. Italian and Dutch paper did garner some interest, but saw negligible trading.

    There is currently one BWIC on today's European schedule - a single €1.9m line of QUADF 2011-1 A1 due .......

    SCIWire 18 December 2015

  • US CLOs equity focused

    Post Fed lift-off activity has picked up a little across the US CLO secondary market, but it is the equity space that is attracting the most focus today.

    "There are few more lists around today than yesterday," says one trader. "It's mostly tidy up activity and volumes are relatively low, but there will be a lot of interest in the .......

    SCIWire 17 December 2015

  • Euro secondary chugs along

    Despite wider credit market volatility the European securitisation secondary market is still maintaining its course.

    "We've kept going - there have been a few BWICs, but none of the volatility of broader markets," says one trader. "Flows have been light, but we're still chugging along."

    Overall, the trader adds: "Tone remains constructive and technicals are helping the market. We've got .......

    SCIWire 17 December 2015

  • US CLOs lose momentum

    The US CLO secondary market looks to have lost its momentum as quickly as it appeared yesterday.

    The high proportion of DNTs seen across yesterday's BWICs combined with broader market volatility looks to have stemmed selling volume for now. As the market awaits the Fed later today there are only two CLO auctions due and only limited bilateral activity elsewhere. While .......

    SCIWire 16 December 2015

  • Euro secondary split

    Activity and price direction in the European securitisation secondary market is currently split in two key sectors.

    "In common with broader credit, overall volumes are low and liquidity is very thin," says one trader. "It's a result of both the time of year and the volatility in global markets."

    However, within securitisation secondary it continues to be a story of .......

    SCIWire 16 December 2015

  • US CLO supply surge

    After a quiet few days US CLO BWIC supply has picked up today.

    "We're seeing a lot more lists today," says one trader. "I don't think it's anything to do with the Fed tomorrow, it looks like it's just sellers trying to get in ahead of any more bad stuff in commodities."

    List volume aside, the market is exhibiting the same .......

    SCIWire 15 December 2015

  • Euro secondary hangs on

    European securitisation secondary spreads are mostly hanging on despite increasing broader market volatility but there are some signs of softening.

    In the end, a handful of BWICs emerged yesterday and provided the main focus. However, the highlight, a double-B CLO list, for the most part did not trade. The covers released indicated spread widening in the sector, though the trend .......

    SCIWire 15 December 2015

  • Euro secondary stays slow

    It was, as anticipated, another quiet day in the European securitisation secondary market on Friday and today looks likely to be little different.

    Year-end liquidity thinning continues to hold sway across all sectors. However, market tone remains positive despite broader credit weakness and secondary spreads are generally holding up.

    There are currently no BWICs on the European schedule for today.

    .......

    SCIWire 14 December 2015

  • Deutsche debuts landmark CLO

    Deutsche Bank has closed a US$3.5bn synthetic CLO, which it claims is the largest-ever securitisation of trade finance assets to hit the market. TRAFIN 2015-1 uses an innovative structure that enables it to hedge a globally diverse short-term trade finance portfolio of corporate and financial institutions via the sale of a first loss tranche.

    Deutsche structured, arranged and placed the first loss .......

    News Round-up 11 December 2015

  • Friend request

    CLO managers look for allies as deadline looms

    None of January's US CLOs were risk retention-compliant at issuance, but change has swept the market as 20% of those issued in September and 19% of those issued in October were. However, finding adequate solutions has proved tough enough for large managers, with smaller ones in an even more precarious position.

    Risk retention has been on the horizon for some .......

    News Analysis 11 December 2015

  • Euro secondary slowdown

    The end of year slowdown in the European securitisation secondary market looks to be increasing.

    Flows were generally light again yesterday as year-end liquidity thinning becomes increasingly evident. Consequently, spreads moved very little. CLO BWICs once again dominated the day with most bonds trading flat to slightly lower than recent prints.

    Then at 14:30 is an eight line 47.25m mixed .......

    SCIWire 11 December 2015

  • US CLOs stutter

    After a slight pick-up earlier in the week the US CLO secondary market is stuttering once more.

    "It's very quiet again," says one trader. "That's not unusual at this time of year, but at last week's conference people weren't as upbeat as usual and predictions for next year are for a fall in new issuance."

    At the same time, the .......

    SCIWire 10 December 2015

  • US outlook stable with caveats

    The outlook for US structured finance is stable to positive overall next year, says Fitch. However, the rating agency notes that certain subsectors bear watching for signs of trouble.

    Over 87% of Fitch's rating outlooks remain either stable or positive heading into 2016 as collateral quality remains excellent, with solid performance metrics and robust structural protections. "That said, it is .......

    News Round-up 10 December 2015

  • Euro secondary mixed

    It's turning into a typically quiet December across most of the European securitisation secondary market, but there is some healthy activity in a couple of sectors.

    "The secondary market is still holding up quite well despite broader credit concerns," says one trader. "Flows in general are very quiet, but we are continuing to see strong activity in some sectors via BWICs."

    SCIWire 10 December 2015

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