CLOs

  • Rates impact 'largely credit neutral'

    Moody's expects rising short-term interest rates in the US to have varied credit effects on new and existing mortgage-backed, asset-backed and other securitisations. The agency suggests that rising rates will be credit negative for CMBS and largely credit neutral for most consumer and commercial ABS sectors, RMBS and CLOs.

    For newly originated loans backing CMBS deals, rising interest rates are .......

    News Round-up 24 June 2015

  • Opportunity knocks

    ECB presence expanding ABS investor mandates

    The ECB's ABSPP was a hot topic at IMN's 2015 Global ABS Conference, as it continues to exert downward pressure on European securitisation spreads. Panellists noted an expanding mandate among many investors, with relative value opportunities shifting towards the UK non-conforming RMBS and European CLO sectors.

    Jefferies md Craig Tipping pointed to a shift in investor mandate when he admitted .......

    News Analysis 24 June 2015

  • US CLOs still soft

    Tone in the US CLO secondary market has remained soft into this morning's open, but that could change later today as the BWIC calendar cranks up once more.

    "There has been a degree of illiquidity and it's hard to say where it's coming from - it could be Greece, it could be the Fed," says one trader. "There is no .......

    SCIWire 23 June 2015

  • Spanish SME CLOs scrutinised

    Scope Ratings has published a research report that compares and contrasts a pair of Spanish SME CLOs it recently rated - FTA PYMES SANTANDER 10 and FTA PYMES SANTANDER 11. In particular, PYMES 11 is backed by weaker obligors than PYMES 10, yet has been assigned a lower mean lifetime default rate.

    In terms of Santander's internal probabilities of default, .......

    News Round-up 23 June 2015

  • Default rate hits post-crisis low

    The default rate for global structured finance securities rated by S&P fell for the third successive year to 4.2% in 2014, the lowest level since 2008. The downgrade rate also declined to an eight-year low of 10% in 2014, while the upgrade rate increased to 8.4%.

    "Overall global structured finance credit quality declined again in 2014, with the number of .......

    News Round-up 23 June 2015

  • 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
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