CLOs

  • Euro secondary turns positive

    The European securitisation secondary markets are taking a positive turn albeit at a statelier pace than broader markets.

    "Sentiment is a little bit better though our markets are slower to come back than others," says one trader. "Spreads haven't moved much this week so far, but are slightly tighter since Barcelona and there's definitely more liquidity around."

    Activity remains patchy, .......

    SCIWire 23 June 2015

  • US CLOs ease back in

    The US CLO secondary market looks to be easing its way into this week.

    After a surprisingly active week last week in terms of the number of bonds in for the bid despite significant absences due to Barcelona, the start of this week appears more circumspect. Last week's high proportion of DNTs and weakening tone proved little other than the .......

    SCIWire 22 June 2015

  • CLO investment disclosed

    Fair Oaks Income Fund has entered into binding contracts to acquire in the primary market US$26.4m notional of equity notes of Neuberger Berman CLO XIX. The purchase represents 75% of the transaction's total equity.

    The CLO's current target portfolio has a principal value of US$400m across an expected 160 unique bank loan issuers, with an expected weighted average exposure per issuer .......

    Job Swaps 22 June 2015

  • CLO structurer brought in

    A former GreensLedge director has moved to Deutsche Bank to take up a CLO structuring role in London. Nikunj Gupta replaces Peter Melichar, who left to join Jefferies (SCI 5 June).

    Gupta spent more than two years at GreensLedge, where his key focus was CLO structuring. He has also worked for UBS and Bank of America Merrill Lynch in indices .......

    Job Swaps 19 June 2015

  • US CLOs ticking over again

    After yesterday's pause the US CLO secondary market is ticking over again today with the auction schedule picking up once more.

    Yesterday saw two US CLO BWICs where nine line items out of 15 did not trade. Of the lines that did trade one had no colour released but the others all traded at or around talk, albeit with current .......

    SCIWire 18 June 2015

  • Anchorage closes 'unique' deal

    Anchorage Capital Group's newest deal - Anchorage Credit Funding 1 - has a number of unique structural features, notes Moody's. These are largely included to mitigate the additional risk brought by its ability to buy a significant amount of non-first lien senior secured loan assets.

    Anchorage Credit Funding 1, which closed last week, must buy a minimum of only 35% .......

    News Round-up 18 June 2015

  • US CLOs take a pause

    After a flurry of BWICS over the past two days the US CLO secondary market now looks to be taking something of a pause until participants return from Barcelona.

    "We're at last seeing a pause in the BWIC frenzy of the past few weeks with the large number of sellers putting real pressure on buyers," says one trader. "As a result spreads .......

    SCIWire 17 June 2015

  • Euro CLO retail exposure 'positive'

    The selective retail exposure of European CLO 2.0 deals is credit positive, says Moody's. While European CLO 2.0 exposure to retail is only 4.63% of collateral, two-thirds of that is exposure to UK, German or Dutch retail.

    The rating agency includes the non-durable consumer goods sector in the retail category. A preference for retail credits in more economically stable countries .......

    News Round-up 17 June 2015

  • CLO recovery rates compared

    S&P has published a case study on recovery rates in European CLOs, following the incorporation of additional information on loan recoveries into its analysis of CLO transactions (SCI 4 August 2014). In the analysis, the agency considered the top 100 publicly-rated obligors with the highest exposure in 25 European CLO 2.0 deals it rates.

    S&P found similarities between the weighted-average .......

    News Round-up 17 June 2015

  • Successful ED project 'requires support'

    While the European DataWarehouse (ED) has continued to make strides over the last 12 months, data shortcomings in the market which are beyond the ED's power to address threaten to derail further progress. For this reason, it may be necessary for the ED's mandate to be expanded.

    The ED tracks loan-level data for 890 deals, backed by more than 40 .......

    News 16 June 2015

  • Trustee enhances online platform

    US Bank Global Corporate Trust Services has enhanced its online platform, Pivot, by expanding access to CLO managers that outsource middle office services. The platform will attempt to help these clients gain cost efficiencies and improve the process of managing their loan portfolios.

    US Bank's middle office group expects to grow its presence as a result of this upgrade. The .......

    News Round-up 16 June 2015

  • Euro secondary quiet

    With the Barcelona conference getting fully underway today it is expected to be very quiet in the European securitisation secondary markets over the next couple of days.

    The participants that remain at their desks are likely to maintain the risk-off stance of the past week as Greece and broader credit market volatility continue to dominate attention. However, there is one .......

    SCIWire 16 June 2015

  • US CLOs still seeing sellers

    In the face of expected limited liquidity for the bulk of this week the US CLO secondary market is already seeing a healthy number of line items in for the bid.

    Despite Barcelona and the swathe of DNTs on last week's heavy auction schedule the US CLO BWIC calendar is already growing for this week. For the most part the .......

    SCIWire 15 June 2015

  • US CLOs winding down

    The US CLO secondary market is winding down after a busy week.

    As expected, yesterday's CLO BWICs saw a high proportion of DNTs with reserves not met thanks to reduced liquidity. At the same time, there was a high amount of line items where no colour was released.

    Nevertheless, there were a few buyers in evidence and some bonds did .......

    SCIWire 12 June 2015

  • US CLOs thinning

    The US CLO secondary market is continuing to see heavy BWIC volumes but liquidity is thinning.

    "It's very busy this week in terms of BWICs despite Barcelona next week, quarter-end and rate moves," says one trader. "But because of those three factors the market is thinner with fewer guys bidding on bonds and the bid-ask has widened significantly."

    As a .......

    SCIWire 11 June 2015

  • Euro CLOs soften

    The European CLO secondary market is seeing prices soften as summer hoves into view.

    "In common with other markets, we're a little bit weaker," says one trader. "It's in 1.0s chiefly, but even there double-Bs, for example, haven't seen a dramatic move - just a couple of points. In 2.0s the weakness is most evident in double- and single-Bs but .......

    SCIWire 11 June 2015

  • Extension provisions scrutinised

    Loan amend-and-extend (A&E) provisions are a common feature of CLO 2.0 deals and are structured in various ways. But Moody's notes that if they could potentially result in a CLO portfolio's WAL exceeding the initial WAL test level or cause long-dated asset (LDA) exposure, the agency will conduct stress scenarios that may result in lower ratings being assigned.

    Some recent .......

    News Round-up 11 June 2015

  • ABS fund manager named

    Amundi Asset Management has recruited Francois Morin as senior portfolio manager of the Amundi ABS Fund. He arrives from Natixis, where he was head of European ABS and CLO trading. Morin has also held various positions in CDC Ixis Capital Markets' credit risk department.

    .......

    Job Swaps 10 June 2015

  • CLO manager brought in

    Pim van Schie has joined Neuberger Berman as svp and portfolio manager on its floating rate loans team. He will primarily focus on the continued expansion of the firm's CLO business, in addition to helping build a strategy platform centered on investing in CLO liabilities.

    Prior to joining Neuberger Berman, Schie was an executive director within CLO banking at Morgan Stanley. Before .......

    Job Swaps 10 June 2015

  • US CLOs pick up

    Volumes in the US CLO secondary market have picked up today and focus continues its shift towards senior paper.

    "The market has really picked up today after a typically quiet Monday and a low to medium week last week," says one trader. "At the same time, focus has moved to the top of the capital structure."

    The trader continues: "There .......

    SCIWire 9 June 2015

  • Spanish legal exceptions highlighted

    Scope believes that the new Spanish corporate finance promotion law (Ley 5/2015 de fomento de financiación empresarial) governing changes to corporate financing allows for more flexible financing of Spanish SMEs and, in certain cases, may positively affect their creditworthiness. The main purpose of the new law is to promote financing of Spanish SMEs by making it both more accessible and .......

    News Round-up 9 June 2015
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