CLOs

  • 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

  • Euro CLOs BWIC-driven

    The European CLO secondary market is being dominated this week by a spike in BWIC volume.

    "Everything is BWIC-driven this week - away from the auctions not a lot is happening," says one trader. "Things have widened, but we're still seeing strong execution."

    The trader continues: "There have been a lot of mezz lists in particular, but they're still clearing .......

    SCIWire 9 December 2015

  • US CDO/CLO pick up

    The US CLO secondary market is picking up a little, while activity in the Trups CDO sector is outperforming recent levels

    "CLOs are getting a little busier again as we head into year-end," says one trader. "Buyers are still fairly cautious though and the bid-ask in mezz is still pretty wide so the bonds that are changing hands are restricted .......

    SCIWire 8 December 2015

  • Collaboration to boost UK lending

    A series of exclusive agreements signed by RBS with three separate investment partners - AIG Asset Management, Hermes Investment Management and M&G Investments - will boost access to capital for UK businesses backed by private equity. Mid-market firms will be able to borrow up to £100m in a single transaction that can be co-funded by all four lenders.

    Each transaction .......

    Job Swaps 8 December 2015

  • Euro secondary slows

    Yesterday saw a fairly slow session across the European securitisation secondary market, but it could yet pick-up again before year-end.

    "Yesterday was quiet, but it's too early to be thinking of year-end just yet," says one trader. "The areas of activity there were still bode well for the remainder of this week and hopefully next."

    The main focus yesterday was .......

    SCIWire 8 December 2015

  • Euro secondary unmoved

    Despite initial post-ECB softening on Friday across broader markets, the European securitisation secondary market remains unmoved.

    Liquidity remains thin across securitisation secondary and that in part helped to ensure spreads closed Friday unchanged. Nevertheless, tone remains positive and pockets of buying activity continue to be seen.

    Where those pockets appear prices are even edging slightly up. Once again, prime assets .......

    SCIWire 7 December 2015

  • Euro secondary holds up

    The European securitisation secondary market is holding up amid weakness in broader credit following the ECB press conference yesterday.

    Secondary spreads saw little ECB impact yesterday - with the changes to the ABSPP already factored in, most sectors closed the day unchanged. Flows were patchy and name specific with prime RMBS and autos once more at the forefront, while peripherals .......

    SCIWire 4 December 2015

  • US CLOs dormant

    The US CLO secondary market has failed to shake off its pre-Thanksgiving dormant state.

    "It's a very slow day today," says one trader. "That's partly because quite a few people are away at a conference in California, but overall the market is dormant and looks unlikely to shake that off - right now it really seems like everyone is just .......

    SCIWire 3 December 2015

  • Euro secondary keeps busy

    The upswing in activity in the European securitisation secondary market is continuing.

    Yesterday saw a pick-up in trading across the board both on- and off-BWIC. Notably, prime assets returned to form and a strong buying bias, in Dutch RMBS in particular, saw spreads in both ABS and MBS generally tighten.

    Meanwhile, Portuguese paper continued to outperform in peripherals and ended the day slightly .......

    SCIWire 3 December 2015

  • CLO projections remain strong

    US and European CLOs should continue to perform well in 2016, says Moody's. However, loan collateral is expected to remain weakened and default rates are projected to rise in US and Chinese CLOs.

    "US CLOs will perform well next year, with loan defaults rising slightly but remaining low overall due to tighter underwriting standards," says Moody's svp Algis Remeza. "And .......

    News Round-up 2 December 2015

  • EMEA ratings transition positive

    EMEA structured finance securities continued to experience a decrease in downgrade activity and an increase in upgrade activity in 1H15, compared to 2013, according to Moody's latest transition study for the region. The 12-month downgrade rate for EMEA structured finance decreased from 16% to 4.8%, while the 12-month upgrade rate rose from 6.9% to 37.8% over the same period.

    The .......

    News Round-up 2 December 2015

  • OC cushions survive energy slump

    While US CLOs have so far avoided the worst of the energy sector's economic woes, the triple-C and single-D buckets in CLO 2.0 deals have crept up throughout the year, notes S&P. Further adverse moves could impact OC cushions, but they remain stable for now.

    "The effects of price declines within the US broadly syndicated loan (BSL) market have started .......

    News Round-up 2 December 2015

  • Hedge fund goes private

    BlueCrest Capital Management is to transition to a private investment partnership and will return to its clients the US$8bn it currently manages for them. Following the transition, BlueCrest will only manage assets on behalf of its partners and employees.

    BlueCrest will continue to trade all current major strategies and retain its offices around the world. Strong growth in employees and .......

    Job Swaps 2 December 2015

  • Post-crisis double-Bs keep outperforming

    The total amount of CLOs paid down in JPMorgan's CLO Index (CLOIE) in November was US$2.41bn in par outstanding, split between US$2.26bn and US$0.15bn of pre-crisis and post-crisis CLOs. The post-crisis index added US$5.7bn across 70 tranches from 13 deals at the November rebalance.

    Pre-crisis triple-A discount margins widened 10bp, while post-crisis triple-A DMs widened 4bp. Post-crisis CLOIE saw negative .......

    News Round-up 2 December 2015

  • Volcker amendments implemented

    An extraordinary resolution has been passed by St Paul's CLO III 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 2 December 2015

  • Euro secondary picking up

    Activity in the European securitisation secondary market is starting to pick up.

    "Yesterday was very quiet again with not a lot of flows or BWICs," says one trader. "However, it appears to be picking up today and the BWIC calendar is building for the rest of the week, though involving a lot of off-the-run securities."

    The most active sector yesterday was .......

    SCIWire 2 December 2015

  • US CLO slow return

    The US CLO secondary market is slowly getting back to some semblance of normality after a quiet holiday-shortened week last week.

    Yesterday only saw one BWIC and one OWIC, both primarily involving equity pieces. In both cases more than usually extensive colour was released.

    The 2.0 equity OWIC had two line items trade - BHILL 2013-1X E at 71a and .......

    SCIWire 1 December 2015

  • European outlook improves

    European structured finance will benefit next year from an improved macroeconomic landscape, consumer confidence and a more competitive lending environment, which will boost asset performance, says Fitch. The rating agency has changed its asset performance outlook to stable/positive for 2016.

    Asset performance outlooks for several individual markets have improved as GDP growth and lenders' greater appetite to underwrite loans to .......

    News Round-up 1 December 2015

  • Asian delinquency trends to diverge

    Moody's forecasts that delinquency rates for structured assets in Asia (ex-Japan) will diverge in 2016. China and Singapore are generally expected to show rising delinquency trends, while performance in India and Korea should exhibit strength.

    "China's gradual economic slowdown will trigger a slight rise in delinquencies from current low levels across a range of asset classes in the country, while .......

    News Round-up 1 December 2015

  • Euro secondary lull continues

    The lull in activity seen at the end of last week in the European securitisation secondary market carried over to another quiet session yesterday.

    With most secondary market participants pre-occupied with month-end there was little investor activity and only very patchy and light flows from dealers, nor were there any European BWICs. However, market tone remained positive with spreads broadly .......

    SCIWire 1 December 2015

  • Euro secondary slumbers

    The European securitisation secondary market is taking it easy through the US public holiday but market tone is staying strong.

    Despite low volumes yesterday spreads remained firm to slightly tighter across the board. UK non-conforming and buy-to-let bonds are still the most active areas and remain better bid, primarily from the Street. At the same time, peripherals continue to generate .......

    SCIWire 27 November 2015
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