CLOs
A CLO is a collateralized loan obligation or collateralised loan obligation known collectively as CLOs.
CLOs are CDOs that reference loans, such as leveraged loans, SME loans or a bank's whole loan book (a balance sheet CLO). They come in both managed CLO and static CLO form and can be market value CLOs or synthetic CLOs.
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Asset migration
Euro mid-market deal flow set to grow
As year-end approaches, the private credit market is poised for continued expansion, with middle-market corporate deals expected to drive much of that growth. Speakers at Morningstar DBRS’ Credit Outlook 2025 in London last week outlined a positive trajectory for the sector, spurred by a global asset migration from public to private markets, maturing private equity portfolios and the overall .......
News 18 November 2024
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CLO manager corner series: Investcorp
CLO market faces loan supply challenges, but outlook remains strong
A limited supply of new loan issuance could challenge the CLO market in the future, with the development of a private equity pipeline needed, according to Investcorp.
Barry Lane, managing director of CLO new issuance in Europe at Investcorp, tells SCI that despite this risk, the current number of deals being marketed, as well as those that have .......
The Structured Credit Interview 18 November 2024
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Ex-Accunia exec to launch Euro CLO equity investment platform
Grane speaks to SCI about building a new London team and seeking investors
Christian Grane, the former head of investments at Accunia Credit Management, is aiming to launch a dedicated European CLO equity investment platform in the second or third quarter of next year.
Speaking to SCI, Grane, who left Accunia in September after five years, says he is currently in the process of speaking to potential investors and partners to launch .......
News 13 November 2024
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EU CLO performance realigns with loan index post-volatility
CLO Research Group's Tan analyses how EU CLO managers' perfo...
European CLO managers have returned to performing on par with the Morningstar European Euro-Denominated Loan Index on average following four challenging years, says Poh-Heng Tan, founder of CLO Research Group, in this exclusive article for SCI. Yet individual results vary widely and investors should remember that CLO managers do not eliminate investment risk.
Talking Point 8 November 2024
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Democratising investment
Christian Parker, structured credit partner at Paul Hastings...
It’s a well-established truth that European retail investors have no access to credit investments in the form of loans. However, this isn’t quite right and overlooks the role of investment trusts, which have for many years offered retail investors exposure to credit markets. Funds managed or associated with Fair Oaks, CVC Credit Partners, AXA Investment Managers and others all .......
Talking Point 4 November 2024
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Job swaps weekly: Linklaters lures four A&O Shearman partners
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees Linklaters hiring four partners from A&O Shearman for its New York office. Elsewhere, the Prytania Solutions team has joined Houlihan Lokey’s structured products valuation advisory team as part of the latter’s acquisition of the former, while Danske Bank has snapped up a former senior Nordea executive as investment director.
Linklaters .......
Market Moves 1 November 2024
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Clean and replenish
Optimistic outlook for US CRE market is welcome news for CMBS and CRE CLOs
A rebound in activity in the US CRE market is pointing to brighter times ahead for both CMBS and CRE CLOs. Activity in the CMBS issuance market is a welcome sign after a prolonged down cycle, despite ongoing challenges in office and retail.
“We are seeing a strong turnaround,” states Jodi Schwimmer, partner at Reed Smith. “The market .......
News Analysis 1 November 2024
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Tried and true
Michelle Manuel and Michael Schewitz, portfolio managers at Investec, answer SCI's questions
Q: What do you look for in a CLO manager?
The Structured Credit Interview 28 October 2024
Michelle Manuel: With a 70% US middle market portfolio, we tend to look for managers who we know have been through a number of credit cycles. When we look at Europe, we choose managers we know or are comfortable with. However, we mainly tend to buy in Europe when the .......
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Summer in the city
European ABS and CLO markets defy summer lull with €34bn Q3 issuance
The European securitisation market saw significant activity through the third quarter of 2024, defying the typical summer slowdown, according to a market update issued by TwentyFour Asset Management.
Aza Teeuwen, partner and portfolio manager at TwentyFour, attributes this to increased funding needs, tighter pricing and a rush to secure funding ahead of the upcoming US elections.
"Volumes .......
News Analysis 22 October 2024
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Job swaps weekly: MidOcean boosts capital formation capabilities
People moves and key promotions in securitisation
This week’s roundup of securitisation job swaps sees MidOcean Partners strengthen its ranks with the appointment of Jon Fox as global head of capital formation. He brings several decades of leadership and alternative asset management experience that will help to expand the firm’s investor relationships globally.
Fox was formerly president of Värde, having joined that firm nearly 11 .......
Market Moves 18 October 2024
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SCI In Conversation Podcast: Volker Gulde, Moody's Ratings
We discuss the hottest topics in securitisation today...
In this episode of the SCI In Conversation podcast, SCI head of content Kenny Wastell speaks to Volker Gulde, senior vice president at Moody’s Ratings, about the European market for private credit CLOs. Gulde discusses why the asset class is yet to take off in the continent, when we might expect that situation to change, and more.
Gulde says that, while there .......
News Analysis 11 October 2024
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CLO manager corner: Sculptor Capital Management
Adeel Shafiqullah, head of European CLO management, discusse...
The launch of Sculptor Capital Management’s captive CLO equity platform in April, secured by an anchor commitment from Rithm Capital Corp., is a “strong validation” of the firm's support of Sculptor’s CLO management business as well as the ability to be “opportunistic and nimble” with capital.
Speaking to SCI, Adeel Shafiqullah, head of European CLO management at Sculptor, says: .......
The Structured Credit Interview 19 September 2024
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Breaking regulatory chains
Calls for reform intensify as industry pushes to fuel growth and fund Europe's green transition
The European securitisation market is “far too small and illiquid,” according to a recent report from True Sale International (TSI) and the Association of German Banks (BdB). The scale of the challenges could be having a negative impact on vital innovation across the continent’s economy.
The report, titled ‘A strong, competitive Europe: unlocking the potential of securitisation’, underscores .......
News Analysis 19 September 2024
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In demand
ETF CLO growth gathers pace as firms ramp up offerings
Demand for floating rate assets with robust surplus yield outlook is driving ETF (exchange-traded fund) CLO growth, according to asset manager Janus Henderson, with firms ramping up their offerings.
In July, Janus Henderson B-BBB CLO ETF (JBBB) surpassed $1 billion in AUM (SCI 15 July). This was followed two months later by Palmer Square Capital launching two .......
News Analysis 19 September 2024
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Silver lining
Optimism around strong growth in RMBS and ABS at S&P conference
Market participants shared widespread optimism at S&P Global Ratings' European Structured Finance conference, buoyed by robust growth and the resilience of the European and UK ABS and MBS markets. Despite global economic challenges, issuance in these markets is experiencing strong momentum, performing even more favourably than 2023.
Panellists and attendees at the event noted that the primary beneficiaries .......
News 13 September 2024
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Ringing the bell for CLO ETFs
Palmer Square Capital Management launches two CLO credit ETFs
Asset manager Palmer Square Capital has launched two exchange traded funds (ETFs), both of which provide retail investors with access to structured credit markets. Palmer Square Credit Opportunities ETF (PSQO) and Palmer Square CLO Senior Debt ETF (PSQA) began trading today and the firm rang the opening bell at the New York Stock Exchange on Thursday to mark the .......
News 12 September 2024
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Strength on several fronts
Ninety One's Barua answers SCI's questions
New issuance CLO volumes are on course to challenge previous full-year records and the market is well-positioned to weather any recessionary fears, according to Rondeep Barua, securitised products analyst at Ninety One. Barua speaks to Camilla Vitanza about the asset class’s prospects and anticipated trends for the rest of the year
Q: How would you summarise 2024 so .......
The Structured Credit Interview 11 September 2024
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MV Credit acquisition agreed
Market updates and sector developments
Clearlake Capital Group is set to acquire pan-European private credit specialist MV Credit from Natixis Investment Managers. Founded in 2000 and headquartered in London, MV Credit has US$5.1bn in assets under management and provides tailored fund solutions to investors across senior direct lending, subordinated direct lending, hybrid and CLO strategies.
MV Credit has deployed more than US$11bn since .......
Market Moves 3 September 2024
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CLO manager corner: Antares Capital
Katzenstein and Pitke discuss the firm's liquid credit platform and plans for the future
Antares Capital’s liquid credit platform, which launched last year and today is a BSL CLO issuance platform, is a “natural extension” of its private credit CLO platform, allowing the company to offer a broader opportunity set of products to clients, according to the firm.
Speaking about its business plan, Seth Katzenstein, head of liquid credit at Antares tells .......
The Structured Credit Interview 28 August 2024
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CLO analytics firm eyes private credit
Market updates and sector developments
Siepe has raised US$30m in a Series B funding round led by WestCap, which will drive a multi-product roadmap, including the expansion of the firm’s AI and machine learning capabilities. In conjunction with the new funding, Siepe has appointed Mark Schultis – who joined the firm as an advisor in October 2023 – as president.
The Siepe team .......
Market Moves 22 August 2024
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Resilient CLO market in July despite early August volatility
Kartesia sees spreads tightening slightly across capital structure throughout the month
The CLO market demonstrated continued strength in July, with spreads tightening slightly across the capital structure, according to Kartesia, a European specialist provider of capital solutions.
“Euro CLO triple-A spreads closed the month 2.5bps tighter in secondary, and 7bps in primary at DM+97.5/DM+130, respectively,” say head of CLOs Michael Htun and structured credit associate Panagiotis Dounavis in the .......
News 20 August 2024