CLOs

  • Negative net issuance posted

    US CLO prepayments narrowly exceeded new issuance in July, resulting in the first negative net issuance month since January 2014. Deutsche Bank figures put new issue volumes at just under US$7bn and prepayments at just over US$7bn for the month.

    Part of the explanation for the unusually large payments in July is that many CLOs pay quarterly. But the prepayment .......

    News Round-up 6 August 2015

  • CLO equity fund launched

    American Capital has launched a new US$450m fund focused on investing in CLO equity tranches and comprising entirely of third-party investors. The American Capital CLO Fund I will purchase US$300m of American Capital's existing CLO equity portfolio at its fair value as of 30 June, while the additional US$150m will comprise of investment capacity.

    Closing of the fund is expected to occur .......

    News Round-up 6 August 2015

  • Euro secondary improves

    Levels are improving in the European securitisation secondary market, but activity remains patchy and limited.

    "The market has generally got better in terms of spreads over the past couple of days," says one trader. "However, flows remain very thin - there's not a lot going on by way of BWICs, primary has slowed and the client side is very quiet, .......

    SCIWire 6 August 2015

  • US CLOs patchy

    Activity in the US CLO continues to occur in patches as volumes stay reasonably low.

    "We're chugging along," says one trader. "I wouldn't say it was busy, but it's not as quiet as it was two weeks ago and there's a consistent drip of BWICs so it's not a ghost town."

    The middle of the capital structure remains the main .......

    SCIWire 5 August 2015

  • Investment adviser acquired

    Benefit Street Partners (BSP) has agreed to acquire TICC Capital's investment adviser TICC Management, with the intent to transition TICC Capital's investment strategy from syndicated loans and CLO investment vehicles to primarily focus on private debt investments. The closing of the transaction is contingent upon approval by TICC Capital stockholders, as well as the election of four new independent directors, among other .......

    Job Swaps 5 August 2015

  • Alpha exposure 'limited'

    The bankruptcy of Alpha Natural Resources is expected to have a limited impact on the US CLO market, with fewer than 170 deals exposed to the issuer. Thomson Reuters LPC data indicates that CLOs own US$308m of total exposure to Alpha Natural Resources and only US$265.2m of its Term Loan B.

    A Wells Fargo analysis of Intex data also shows .......

    News Round-up 5 August 2015

  • SF practice adds another

    Chris McGarry has joined Ropes & Gray as a partner in the firm's finance practice. He will advise on structured finance transactions, with a focus on CLOs and securitisations for clients including arrangers, sponsors, originators and investors.

    Prior to joining, McGarry practiced at Weil, Gotshal & Manges and, previous to that, Clifford Chance. He also served as vp in RBS' .......

    Job Swaps 5 August 2015

  • Mid-market manager recruited

    Medley Management has hired David Indelicato as md and head of credit management. He will focus on providing capital solutions to middle market companies and private equity sponsors.

    Prior to joining Medley, Indelicato was svp at GE Antares Capital, where he was a risk team leader responsible for underwriting, structuring and managing private equity sponsor-backed leveraged finance transactions. Previous to this, .......

    Job Swaps 5 August 2015

  • Top CLO managers revealed

    The rankings of the top 10 global CLO managers are relatively unchanged from January, according to Moody's latest CLO manager league tables. The tables show that in the US the top 10 managers' market share has declined slightly as other large managers have grown their share, and CLO issuance remains strong.

    "In the US, the top 10 managers' market share .......

    News Round-up 5 August 2015

  • Euro secondary keeps it light

    With light flows and a light BWIC calendar summer is taking its toll on the European securitisation secondary market.

    "With primary active last week and now that we're into August there's very little going on in secondary," says one trader. "The BWIC calendar is pretty light as well."

    Overall, the trader describes secondary spreads as mixed with light flows ensuring .......

    SCIWire 5 August 2015

  • US CLO hope

    There are hopes that activity in the US CLO secondary market could start to rise once again this week, but similar expectations have been dashed before.

    "Last week was another quiet one in the end for both CLO secondary and primary," says one trader. "It feels like there's going to be a little bit of a pick-up this week, but .......

    SCIWire 4 August 2015

  • Negative returns hit CLO index

    The total amount of CLOs that paid down in JPMorgan's CLO index (CLOIE) since the June rebalance through 31 July was US$7.24bn in par outstanding, split between US$4.18bn and US$3.05bn of pre-crisis and post-crisis CLOs. The post-crisis CLOIE added US$11.2bn, with 137 tranches from 25 deals at the July rebalance.

    The CLOIE total index exhibited negative returns in the month of July in .......

    News Round-up 4 August 2015

  • Law firm boosts SF expertise

    Rupert Wall has joined Sidley Austin as a partner in its global finance practice. His focus is on structuring and restructuring deals across the securitisation spectrum. He advises arrangers, originators and investors on all aspects of structured finance and derivatives, while also advising counterparties with capital markets issuances, leveraged finance transactions and portfolio sales.

    Wall arrives from Weil Gotshal and .......

    Job Swaps 4 August 2015

  • Euro secondary flat

    The European securitisation secondary market continues to see low levels of activity with spreads for the most part staying flat.

    "It's pretty quiet and as we head further into summer while we'll be watching for macro events it's likely that the market will continue to move sideways," says one trader. "There are now a lot of continental clients away so .......

    SCIWire 4 August 2015

  • US CLOs tick over

    After a very quiet end to the week and month on Friday the US CLO secondary CLO market is ticking over once more.

    There are currently three US CLO BWICs scheduled for trade today - relatively busy for a Monday in August. However, the calendar looks a little sparse for the remainder of the week with only a further four .......

    SCIWire 3 August 2015

  • Euro secondary stays strong

    European securitisation secondary market spreads are holding on to recent stronger levels amid low volumes.

    As anticipated, flows were very light across the board on Friday, which left spreads for the most part unchanged. However, the day's previously mentioned CLO BWIC did trade well.

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

    .......

    SCIWire 3 August 2015

  • Global CLO approach updated

    Fitch has updated its global rating criteria for CLOs and corporate CDOs. The update includes an explicit description of the stress portfolio construction for managed CLOs, as well as publications of the FX stresses on US dollar- and sterling-to-euro multicurrency CLOs and the default skew assumptions for multicurrency CLOs.

    For constructing stress portfolios in rating new transactions, the agency typically starts with the .......

    News Round-up 31 July 2015

  • Key man vote solicited

    Sound Harbor Partners is seeking to create consistency across its CLO stable by replacing the key managers on the Landmark transactions it acquired from Aladdin Capital (SCI 16 October 2012). The firm plans to implement what it describes as a two-step restructuring that would avoid a key man event.

    Specifically, notices have been issued in connection with Landmark VIII CLO .......

    Job Swaps 31 July 2015

  • Euro CLO 2.0 repricing proposed

    A notice has been issued for Carlyle Global Market Strategies Euro CLO 2013-1, which - if passed - would trigger the first repricing of a European CLO 2.0 deal. CELF Advisors is seeking consent from the sole investor to reduce the class A coupon margin from 130bp to 115bp from the 17 August IPD and to eliminate their right to .......

    News Round-up 31 July 2015

  • Euro secondary dries up

    Yesterday saw another very quiet day in the European securitisation secondary market and today looks to be little different as liquidity appears to have dried up into month-end and potentially the rest of the summer.

    Even flows in prime assets faded away yesterday as ABS/MBS was becalmed across the board. CLOs too saw only a handful of trades, but the .......

    SCIWire 31 July 2015

  • Euro secondary slows again

    The European securitisation secondary market has slowed down again.

    "We had a relatively busy start to the week, but yesterday was a bit slower and today looks to be the same," says one trader. "It's typical for high summer except we're still in July!"

    The trader continues: "We're once again mainly seeing activity round prime assets - particularly autos and .......

    SCIWire 30 July 2015
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