CLOs

  • Commodities weigh on CLOs

    US CLO 2.0 notes are being weighed down by oil and gas  and metals and mining exposures, says S&P. As of end-3Q15, four deals with exposure to the industries have notes containing market value overcollateralisation ratios of under 100%.

    The four deals are: a 2013 vintage double-B rated note, a 2013 single-B note and two 2014 single-B notes. In addition to exposure to the .......

    News Round-up 16 October 2015

  • Euro secondary unchanged

    The European securitisation secondary market continues to see light flows and only pockets of activity.

    Yesterday saw another day of broadly directionless trading and limited activity away from BWICs. Consequently, spreads across the board were unchanged at the close.

    Once again, UK non-conforming was one of the few sectors to see above average activity on the day and pricing levels .......

    SCIWire 15 October 2015

  • US CLOs stuck

    Despite a hefty BWIC calendar the US CLO secondary market continues to lack direction.

    "We're still mainly seeing sideways trading," says one trader. "There's no consensus on future price direction though it feels like we're going wider to flat."

    However, the trader adds: "We are seeing some people come in and try to opportunistically add - particularly single-As and triple-Bs .......

    SCIWire 14 October 2015

  • Euro secondary consolidates

    Yesterday was primarily about consolidating recent gains in the European securitisation secondary market, though pockets of activity remain.

    "After a few days of market strength, yesterday saw some stabilisation," says one trader. "At the same time, away from BWICs flows reduced again."

    However, there continue to be strong pockets of activity. "We again saw activity in autos with DRVON bid .......

    SCIWire 14 October 2015

  • Cairn restructuring completed

    The restructuring of the first European CLO 2.0 was completed last week (SCI 16 September). Cairn CLO III has been 'Volckerised' via a loan-only exemption and extended to enable the non-call and reinvestment periods to end two and four years after settlement respectively. Two new mezzanine tranches were also added to the capital structure - €22m double-B rated class E .......

    News Round-up 14 October 2015

  • Euro CLOs slip

    European CLO secondary spreads are slipping wider as liquidity remains limited.

    "We're seeing quite a lot of BWICs, but not much flow business," says one trader. "It's difficult to get client interest at the moment because they're apprehensive about the current price trajectory continuing through to the end of the year."

    At the same time, the trader adds: "There are .......

    SCIWire 13 October 2015

  • Cross-asset conviction

    Renaud Champion, head of credit strategies for La Fran&#...

    Q: How and when did La Française Global Investment Solutions (LFGIS) become involved in the securitisation market?
    A:     LFGIS is the solutions business line of the La Française Group. LFGIS was established in late 2012 and is 35% owned by its founders - Sofiene Haj Taieb and Arnaud Sarfati - and key personnel; La Française is .......

    The Structured Credit Interview 12 October 2015

  • Euro secondary settled

    The European securitisation secondary market is continuing in the settled pattern seen of late.

    There were no surprises on Friday as a relatively quieter day, though flows continue to improve slowly, saw spreads close broadly unchanged overall. Today looks set to follow a similarly settled pattern especially given the US public holiday.

    Peripherals continue to benefit the most from buying .......

    SCIWire 12 October 2015

  • Euro secondary stays on track

    Ever-improving broader markets are driving increasingly positive sentiment in the European securitisation secondary market and its revival over the past few days remains on track.

    Yesterday again saw an uptick in overall activity though flows were slightly down as the heavier BWIC calendar took precedence. There was buying interest across the board, albeit still restricted to selected names in each .......

    SCIWire 9 October 2015

  • Private debt advantages outlined

    Benefit Street Partners (BSP) ceo Thomas Gahan and president Richard Byrne have issued an open letter to the stockholders of TICC Capital Corp regarding its agreement to acquire TICC Management. The letter reiterates the firm's "full commitment" to complete the transaction with TICC and shares information about its plans for delivering superior, sustainable and long-term returns to TICC stockholders. The .......

    Job Swaps 8 October 2015

  • Minority interest acquired

    Dyal Capital Partners has acquired a passive minority interest in the controlling company of Chenavari Investment Managers. Chenavari will continue to be led by ceo and co-cio Loic Fery and co-cio Frederic Couderc, who will retain complete control over the firm's operations and investment process.

    Dyal's strategic minority interest will be passive with no oversight of Chenavari's governance. The vast .......

    Job Swaps 8 October 2015

  • Euro secondary return continues

    Activity and prices in the European securitisation secondary market continue to return to normal, but liquidity is still below usual levels for this time of year.

    "We saw flows across all asset classes yesterday," says one trader. "Even UK non-conforming is taking off having been very quiet recently."

    Peripherals are continuing their rise of recent days. "Prices are up noticeably, .......

    SCIWire 8 October 2015

  • US CLOs suffer

    The US CLO secondary market continues to suffer from a lack of liquidity for a variety of reasons.

    "We're seeing a decrease in liquidity," says one trader. "That's to some extent being driven by bank regulation - bank balance sheets are skewed toward investment grade, which obviously reduces liquidity in non-investment grade, and those balance sheets are now required to .......

    SCIWire 7 October 2015

  • Growing options for European SMEs

    New debt market instruments which have been developed over recent years will increase funding flows to European SMEs and mid-caps, says Moody's. This will allow these firms to access more flexible, less expensive financing, potentially through securitisation.

    New funding options range from SME bond markets and private debt funds to peer-to-business lending. However, the rating agency notes that bank lending .......

    News Round-up 7 October 2015

  • Under pressure?

    Credit deterioration affecting 2.0 CLOs

    The percentage of US CLO 2.0 loans trading below 90 continues to rise, reaching a year-to-date peak of more than 8% last month. Credit quality erosion is limiting origination and impacting pricing, with manager performance coming under greater scrutiny as a result.

    "Certainly the market value overcollateralisation deterioration is apparent across the CLO 2.0 space. We are seeing dispersion among .......

    News Analysis 7 October 2015

  • ILS lawyer brought back in

    Cadwalader, Wickersham & Taft has appointed Matthew Feig to its capital markets group in New York, where he will focus on risk-linked securities and structured finance. He previously spent seven years with the firm, before leaving for Stroock & Stroock & Lavan.

    Feig returns to Cadwalader as special counsel to the ILS team, which is led by Malcolm Wattman and .......

    Job Swaps 7 October 2015

  • Euro secondary accelerates

    The pick-up in activity and pricing levels in the European securitisation secondary market is accelerating.

    Yesterday saw a further improvement in sentiment on the back of the same in broader markets. As a result, flows increased, though liquidity is still very patchy, and spreads were broadly flat to slightly tighter. Prime spreads, including autos, continue to hold firm, but it .......

    SCIWire 7 October 2015

  • Euro CMBS leader appointed

    DBRS has appointed Christian Aufsatz to its London office, where he will lead the European CMBS team. He was previously head of European securitised products strategy at Barclays.

    At Barclays, Aufsatz led analysis and research for European securitised products, with a focus on CMBS and CLOs. He previously spent eight years at Moody's, where he became team leader for EMEA .......

    Job Swaps 6 October 2015

  • CLO pro poached

    Seix Investment Advisors has appointed John Wu as md of structured capital markets for its leveraged finance platform. He will play a key role in expanding the firm's CLO business, which it says is a "strategic priority".

    Wu joins Seix from CIFC Asset Management, where he served as co-head of structured products, senior portfolio manager and md. He oversaw various .......

    Job Swaps 6 October 2015

  • Euro secondary slowly improves

    Tone and activity are slowly picking up in the European securitisation secondary market.

    Bolstered by stronger broader markets sentiment in most secondary sectors has improved, which is helping to stabilise spreads and encourage participants to return, but liquidity remains generally thin. In prime, autos led the way yesterday notably in VW assets, whereas in peripherals Portuguese bonds saw the biggest .......

    SCIWire 6 October 2015

  • US CLOs keep busy

    The US CLO secondary market looks set for another busy week after last week's uptick in activity.

    Last week saw an increase in secondary activity with focus primarily around 2.0 triple-As, double-Bs and triple-Bs. With macro concerns and quarter-end causing a volatility spike, price transparency evaporated and kept some investors on the sidelines.

    Consequently 2.0 spreads across the stack moved .......

    SCIWire 5 October 2015
×