CLOs

  • 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

  • US CLOs stay murky

    Despite this week's upswing in auction activity the US CLO secondary market is still not getting much in the way of price clarity.

    "This week looks to be the busiest since June, but we're not seeing forced sellers it's more about people trying to wrap things up ahead of month-end," says one trader. "However, yesterday saw quite a few DNTs .......

    SCIWire 29 July 2015

  • CLO 2.0 overlap highlighted

    European CLO issuance levels in 2015 have surpassed end-2Q14 levels, according to S&P. So far, 12 new European transactions have brought total issuance for 2015 to €8.62bn from 21 transactions, compared with €6.92bn of issuance from 16 transactions during the same period last year. Four new managers - Oak Hill Advisors, Partners Group, Tikehau Capital Europe and Black Diamond Capital Management .......

    News Round-up 29 July 2015

  • Euro CLOs stand still

    The European CLO secondary market remains very quiet.

    "Nothing is going on - it's been a long time since there's been any real activity," says one trader. "There's been a couple of deals in primary, but secondary is at a standstill."

    Spreads have come in slightly from where they were earlier in the month, however. "There's been little bit of .......

    SCIWire 29 July 2015

  • CLO commodity defaults growing

    The number of defaults and impacted US CLOs increased in 2Q15, with 19 of 142 CLOs affected by defaults at the end of the quarter, according to Fitch. Five new defaults were reported in the agency's index, including two distressed debt restructuring events.

    One of the defaulted issuers, Sabine Oil & Gas, was held by eight CLOs. However, the exposure .......

    News Round-up 29 July 2015

  • US CLOs seek clarity

    As the US CLO BWIC calendar continues to build strongly this week, market participants are hoping for clarity on pricing levels.

    "It's looking like the most active week in several," says one trader. "That's partially thanks to month-end, but it is also due to sellers sensing that a bid has developed in mezz, which is teasing out higher numbers of .......

    SCIWire 28 July 2015

  • Europe emerging

    European CLO, loan markets discussed

    Representatives from Thomson Reuters, Credit Suisse, CVC Capital Partners and Goldman Sachs discussed the European CLO and loan markets in a live webinar hosted by SCI earlier this month (view the webinar here). Topics included primary CLO issuance, loan market developments and the impact of developments in Greece.

    Q: How has the European primary CLO market fared?
    A:     Alex Lembcke, .......

    Talking Point 28 July 2015

  • Hiking cycle history considered

    As the likely Fed rate hike date draws nearer, Barclays ABS analysts have examined the performance of securitised products during previous hiking periods. The effect on securitised product credit sectors has previously generally been benign.

    The Barclays analysts paid particular attention to agency RMBS both before and during previous hiking cycles. A typical hiking cycle lasts a year and a .......

    News 28 July 2015

  • CLO consultant tapped

    Eric Bothwell has joined Ashurst as a senior consultant within its CLO practice. He arrives as md from UBS, where he was most recently involved in the sale and unwinding of non-core asset portfolios.

    Bothwell was also one of the founding members of Goldman Sachs' new issue CLO team, responsible for all aspects of transaction structuring, execution and marketing. His .......

    Job Swaps 28 July 2015

  • Called CLO profiles examined

    A recent Wells Fargo analysis of US CLO redemptions suggests that the average time between end of reinvestment (EoR) and when a deal is called is 30 months. The median senior note factor at the time of the call was 7.8%.

    The analysis examines the profile of called CLOs by issuance vintage and by year of EoR, based on a .......

    News Round-up 28 July 2015

  • Euro secondary shows caution

    It's been a cautious start to the week for the European securitisation secondary markets, but BWIC volume is increasing.

    "Overall, market tone is reasonably cautious both because of macro issues, especially China, and also because of the time of year," says one trader. "However we continue to see decent client interest in non-conforming and select peripherals."

    Meanwhile, with month-end approaching .......

    SCIWire 28 July 2015

  • US CLO sellers return

    Sellers appear to be returning to the US CLO secondary market.

    After a very quiet month so far the US CLO BWIC schedule is now building strongly for this week in anticipation of month-end. There are already ten lists on the calendar over the next few days mainly involving mezz and equity paper across a range of vintages.

    Today currently .......

    SCIWire 27 July 2015

  • Volcker deadline drives BWICs

    The first half of 2015 saw US$18.5bn of US CLO bonds on BWIC, US$11bn of which occurred in Q2, according to Citi figures. A record US$4.7bn was out for bid during June alone, ahead of the Volcker Rule deadline.

    Triple-A supply has been trending upwards since November 2014 and represented the largest percentage of BWIC volumes in 2Q15, at 60%. .......

    News 27 July 2015

  • Euro secondary holds up

    The European securitisation secondary market is continuing to hold up despite thin liquidity.

    Buy-side activity remains patchy with volumes overall still very light away from prime. What flows there are are mainly two-way though a selling bias in autos has emerged as investors seek to make room for new issues in the sector among a reasonably strong primary pipeline overall.

    SCIWire 27 July 2015

  • No-action impact gauged

    Prior to publication of the US SEC's no-action letter (SCI 21 July), an estimated US$261bn of US CLOs had to refinance before 24 December 2016 to avoid risk retention for the refinanced tranches. The ruling means that an additional US$152bn of CLOs should be able to refinance during 2017 without triggering the risk-retention requirement, according to Wells Fargo figures.

    There .......

    News 24 July 2015

  • Euro secondary stays firm

    Tone and spreads in the European securitisation secondary market are staying firm.

    Yesterday saw another solid day in secondary market activity across the board. The usual hotspots continued with prime assets seeing most flows once more, although Italian paper is receiving increasing attention.

    BWIC activity remained reasonably healthy yesterday with most line items going through at or around expected levels .......

    SCIWire 24 July 2015

  • Private debt pro recruited

    CVC Credit Partners has brought in Chris Fowler as md for its private debt team. He will be responsible for investments in CVC Credit's European mid-market lending strategies, reporting to md and portfolio manager Neale Broadhead.

    Fowler joins from GE Capital, where he was md in the mid-market leveraged finance origination team. Prior to this, he worked for Morgan Stanley in .......

    Job Swaps 24 July 2015

  • European CLO team boosted

    Tikehau has hired Alison Goold as a portfolio manager for its European CLO business. She will be part of the firm's London-based team, headed by Debra Anderson.

    Goold arrives from BNP Paribas, where she was a director in the leveraged syndications team. Prior to that, she was head of corporate credit and a portfolio manager at AgFe.

    .......

    Job Swaps 23 July 2015

  • Sterling effort

    European CLOs testing creative palette

    European CLOs remain an attractive option for yield-hungry investors, but a shortage in quality collateral persists. As managers attempt to broaden the investor universe, a fresh phase of innovation has expanded the structural scope of new transactions.

    The current new issue European CLO pipeline seems to have been temporarily interrupted by the uncertainty surrounding Greece and the evolving situation in .......

    News Analysis 23 July 2015

  • Euro secondary improves again

    The European securitisation secondary market volume again saw a little improvement yesterday as spreads remain firm.

    Secondary trading activity continues to improve across the board with each session. Yesterday saw continuing investor interest in the prime segment and 1.0 CLOs. UK non-conforming had a better day than of late, but the primary market continues to weigh heavily on the sector, .......

    SCIWire 23 July 2015

  • Euro secondary sees slow progress

    The European securitisation secondary market continues to see improvement, but progress is still slow.

    "Activity has picked up over the last few days," says one trader. "But we're definitely in summer mode now - it's not improving as quickly as we'd hoped."

    Nevertheless, the trader adds: "In Dutch and UK prime two way flows keep strengthening and spreads are grinding tighter. .......

    SCIWire 22 July 2015
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