CLOs

  • 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

  • BDC shareholder activism eyed

    Depressed share price valuations and governance concerns have ignited shareholder activism campaigns against three business development companies (BDCs) over the last several months. Fitch believes the heightened dialogue may lead to strengthened oversight, which would be beneficial for BDC creditors, provided other equity-friendly measures are not over-emphasised.

    Four fund managers - respectively TPG and Highland, Elliot Management and River North .......

    News Round-up 26 November 2015

  • Euro secondary activity fades

    Activity in the European securitisation secondary market is fading away thanks to the US public holiday, but sentiment remains positive.

    "We're quietening down now with Thanksgiving today," says one trader. "Also a lot of people are being distracted away looking at primary and the BMW deal in particular."

    Secondary tone appears to remain strong however. "UK non-conforming and buy-to-let seniors .......

    SCIWire 26 November 2015

  • Bank's LatAm exit raises concerns

    Deutsche Bank's decision to close its operations in Argentina and Mexico is credit negative for the Argentine and Mexican securitisations for which it acts as trustee or common representative, says Moody's. Deutsche Bank Argentina acts as trustee in 36 securitisations, while Deutsche Bank México acts as common representative in 1,300 transactions.

    The bank's decision to close its operations in Argentina .......

    News Round-up 25 November 2015

  • Euro secondary stays strong

    Despite weaker global markets and reduced volumes the European securitisation secondary market is still showing some strong signs.

    "Yesterday was a bit quieter with flows minimal across most sectors as a result of weakness in broader credit thanks to increasing global political tension," says one trader. "However, we saw some strong activity and prints around BWICs."

    The trader continues: "Italian .......

    SCIWire 25 November 2015

  • Euro secondary UK focused

    The heightened focus on UK RMBS is continuing in the European securitisation secondary market.

    "Overall, secondary is somewhat quiet," says one trader. "With Thanksgiving coming, today will be another day to get a few things done but away from UK RMBS there's not much broad-based trading."

    The trader continues: "Both UK prime and buy-to let were very busy yesterday. It's .......

    SCIWire 24 November 2015

  • Trups CDOs quiet

    The US Trups CDO market is quiet again after a small flurry of BWIC activity last week.

    "It's pretty quiet across the Trups CDO sector," says one trader. "There were a few lists last week, but participation was light so there wasn't much action off the lists and a lot of DNTs etc on them."

    The market is likely to .......

    SCIWire 23 November 2015

  • Asset manager expands board

    David Richards has been appointed to American Capital's board of directors after it voted to increase its size to 10. He will become a member of the board's executive committee and its audit, compliance and valuation committee.

    Richards recently joined the firm from Pine River Capital Management, where he was a portfolio manager focusing broadly on financial sector investments. Prior .......

    Job Swaps 23 November 2015

  • Euro secondary undented

    A typically quiet Friday has failed to dent the positive tone in the European securitisation secondary market.

    After a pick-up in activity earlier in the week, Friday was typically quiet across most sectors. Nevertheless, market sentiment remained strong and spreads closed the day broadly unchanged.

    Continued trading around the Granite redemption means UK prime remains the main focus. Friday again .......

    SCIWire 23 November 2015

  • Carve out?

    CMU CLO treatment weighed

    The European Council has published its first compromise proposal in respect of the Securitisation Regulation forming part of the CMU action plan (SCI 2 October). The newly proposed Article 5a appears to misunderstand the practices of the CLO market, however, adding to the industry's disappointment at the treatment of the sector.

    Article 5a requires originators, sponsors and original lenders to .......

    News Analysis 20 November 2015

  • Euro secondary accelerates

    The recent uptick in the European securitisation secondary market accelerated further yesterday.

    A noticeable pick up in flows was seen across the board. As a result, prices were broadly either unchanged or edged a little higher.

    Stronger but still selective activity was seen in Autos, CLOs and CMBS. At the same time, peripherals held firm with continued buying interest in Italian .......

    SCIWire 20 November 2015

  • Pharma scrutiny 'contained'

    The ongoing scrutiny of Valeant Pharmaceuticals International and other drug company pricing practices will curtail gains that CLOs have recently made on M&A activity in the generic and specialty pharmaceutical sector, according to Moody's. The agency suggests that these negative sector developments will have limited credit implications for CLOs, however.

    M&A activity in the pharma sector spiked in 1H15 and .......

    News Round-up 19 November 2015

  • Euro secondary tight

    Spreads across the European securitisation secondary market are holding up, but liquidity remains tight.

    "Market tone and pricing levels are better across secondary in line with global credit," says one trader. "However, we're not seeing huge flows, they even fell back a little yesterday, and liquidity is still tight, so it doesn't take many trades to move spreads."

    UK non-conforming .......

    SCIWire 19 November 2015

  • US CLO drop off?

    After Monday's high watermark, US CLO secondary volumes have dropped significantly and could stay that way for some time.

    "There's not much going on," says one trader. "Sure, there are still a few lists and we're still being lifted out of stuff, but not in large volumes - it's more pockets of activity."

    This pattern could continue for some time, .......

    SCIWire 18 November 2015

  • Chinese concentration risk highlighted

    China Shanshui Cement Group's default last week will test how Chinese CLO structures withstand underlying corporate defaults, says Fitch. The agency notes that this event highlights the concentration risk prevalent in typical Chinese CLO structures, which it considers a major obstacle to assigning high ratings in the sector, along with the lack of financial information on underlying loans.

    Fitch downgraded .......

    News Round-up 18 November 2015

  • Euro secondary on the up

    Activity and sentiment are on the up in the European securitisation secondary market.

    Bolstered by improving broader markets, activity in securitisation secondary picked up yesterday and market tone continues to improve. Better buying interest was seen across most sectors and spreads are broadly flat to slightly tighter.

    Prime autos and RMBS saw healthy flows yesterday, while the bid for UK .......

    SCIWire 18 November 2015

  • US CLOs lack clarity

    Despite the surge in BWICs yesterday, it is still difficult to divine clear pricing trends in the US CLO secondary market.

    "Yesterday was one of the busiest days for quite some time," says one trader. "A fair amount of what was in for the bid traded, but there wasn't a great deal of colour released."

    Consequently, pricing levels are hard .......

    SCIWire 17 November 2015

  • Cavalry CLO quartet acquired

    Sankaty Advisors is set to acquire the management contracts of four CLO portfolios, totalling US$1.6bn of assets, from Regiment Capital Advisors. The contracts to be transferred are for Cavalry CLO II, Cavalry CLO III, Cavalry CLO IV and Cavalry CLO V.

    The transaction is expected to be completed by the end of 2015. Sankaty has managed 27 CLOs since inception .......

    Job Swaps 17 November 2015

  • Structured debt chief moves on

    Paul Hastings is set to add Paul Severs to its London office as a partner in its corporate practice. He joins from Berwin Leighton Paisner, where he was head of structured debt and capital markets.

    Severs has experience across the structured finance and securitisation markets. He has previously also worked at FGIC and Clifford Chance, where he was a partner.

    .......

    Job Swaps 17 November 2015

  • LatAm structured leader added

    Nomura has made three appointments to its emerging markets business in the Americas. Karan Madan, JP Alvarado and Siobhan Morden join as mds.

    Madan becomes md and head of emerging markets in the Americas. Among his duties will be building out the structured products business in the region. He was most recently regional head of Latin America and head of .......

    Job Swaps 17 November 2015

  • Sullivan names new partner

    Sullivan & Cromwell has elected six new partners, including Ari Blaut. His corporate practice provides a particular focus on leveraged finance and acquisition finance transactions involving syndicated institutional loans, asset-based loans and issuances of secured and unsecured high yield debt securities. Blaut also regularly acts in direct lending and distressed lending transactions.

    .......

    Job Swaps 17 November 2015
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