CLOs

  • Call for clarity on repo eligibility

    Another 31 Spanish prime RMBS and SME ABS bonds were dropped from the ECB's repo-eligible list (SCI 6 March) last week. It appears that the move was due to non-compliance with the subordination rule, which requires that no tranche other than the eligible tranche is given priority over the receipt of principal and interest payments post a delivery of acceleration .......

    News Round-up 28 May 2015

  • More of the same for European CLOs

    The European CLO secondary market is continuing to see strong demand for paper.

    "This week is seeing more of the same patterns we've been seeing in the past few weeks," says one trader. "Appetite is strong for paper and we continue to see investors with money to put to work in this sector."

    The trader continues: "There's still not as .......

    SCIWire 28 May 2015

  • Euro ABS/MBS sees weak peripherals

    While broader markets have been boosted overnight by news on Greece, the European ABS/MBS secondary market is still showing signs of peripheral weakness.

    "It's been a slow week but we are bit weaker in Portuguese and Greek names," says one trader. "As a result of peripheral concerns we're seeing customers bringing out more and more paper."

    At the same time, .......

    SCIWire 28 May 2015

  • US CLOs stay firm

    Despite a slower pace than recent weeks, US CLO secondary spreads are staying firm.

    "We started relatively slowly after the holiday yesterday and while there are a few more BWICs today it's still slower paced than the last couple of weeks," says one trader. "However, it also feels slower on the primary side, which will support secondary."

    Indeed, the trader .......

    SCIWire 27 May 2015

  • Euro secondary stays stable

    European securitisation secondary markets are staying stable despite the broader credit market weakness of the past couple of days.

    "Macro noise is keeping investors on the sidelines and there's quite a bit of new issuance to distract from secondary too," says one trader. "However, the general tone remains unchanged and we're still experiencing the status quo of the past couple .......

    SCIWire 27 May 2015

  • Expanding horizons

    China seeking fresh growth opportunities

    The Chinese securitisation market continues to show promising signs of growth. The authorities are now exploring new ways to strengthen the market by involving foreign investment and reinvigorating secondary activity.

    Issuance in the Chinese securitisation market under the country's Credit Asset Securitisation (CAS) programme jumped to approximately CNY280bn in 2014 from CNY16bn in 2013 (SCI 3 March), according to Moody's. .......

    News Analysis 27 May 2015

  • Slow return for US CLOs

    The US CLO secondary market is taking its time to return after the long weekend.

    The frantic activity of last week may have introduced some buyer fatigue to cause the low levels of activity expected today in secondary CLOs. However, as more and more traders return after the holiday as this week wears on it is likely the pace will .......

    SCIWire 26 May 2015

  • GSO co-founder steps down

    Doug Ostrover is stepping down as senior md of Blackstone and will become a senior adviser to the firm. Along with Bennett Goodman and Tripp Smith, Ostrover was one of the founders of GSO, Blackstone's alternative credit platform. Prior to this, he was chairman of the leveraged finance group of Credit Suisse First Boston.

    .......

    Job Swaps 26 May 2015

  • Euro secondary starts settled

    Last week ended quietly as anticipated for European secondary securitisation markets and, following the long weekend either side of the Atlantic, looks likely to begin this in settled form barring any interference from macro-driven volatility.

    Secondary spreads ended last week broadly unchanged on the day on the back of continued light flows. Meanwhile, the few BWICs there were on Friday .......

    SCIWire 26 May 2015

  • Euro BWICs ease

    The BWIC-led week in European securitisation secondary markets is easing to a close today.

    BWICs dominated ABS/MBS secondary trading once again yesterday and the bonds that traded did so in line with expectations. Flow trading was patchy once more, but broadly spreads remained unchanged though Italian and Portuguese paper continued to weaken.

    At the same time, European CLO secondary activity .......

    SCIWire 22 May 2015

  • Euro CLOs stay strong

    European CLO secondary spreads are remaining firm in the face of continuing heavy supply.

    "CLO secondary price levels are still strong across the board," says one trader. "We're seeing good two-way flows and BWIC supply remains heavy."

    In particular, the trader says: "There's still a lot of demand in 2.0 mezz even though more new transactions are coming market. At .......

    SCIWire 21 May 2015

  • US CLOs shift up

    The US CLO secondary market has shifted up a gear this week in terms of trading volumes and pricing levels.

    "There's been a lot of pressure to push lists out before the end of what will be a short week ahead of Monday's public holiday," says one trader. "So today, like the last couple of days, is very busy with .......

    SCIWire 20 May 2015

  • Euro CLOs see demand and supply

    The European CLO secondary market is continuing to see strong demand and supply.

    The unabated demand for 2.0 European CLO paper was underscored by the two line items on BWIC yesterday, GROSV 2015-1X D and RPARK 1X C, covering above par. Off-BWIC paper was changing hands across the capital structure for both 1.0 and 2.0 bonds.

    The rest of this .......

    SCIWire 19 May 2015

  • ABS survey signals stability

    ABS investors remain comfortable with performance in the market, according to JPMorgan's mid-year ABS investor survey. This will likely be reflected in continued participation in the sectors that the investors currently invest in.

    JPMorgan ABS analysts expect ABS supply to reach US$200bn by year-end 2015, which would supplant the US$190bn of primary issuance in 2014. Survey respondents concurred, with 45% of .......

    News Round-up 19 May 2015

  • Middle market pro recruited

    Chip Cushman has joined Golub Capital as md in its middle market lending group. He will be responsible for originating, underwriting, executing and monitoring investments for the firm.

    Cushman was previously md at GE Antares, a division of GE Capital. In this role, he was responsible for developing and maintaining relationships with private equity firms, and originating and evaluating new .......

    Job Swaps 19 May 2015

  • US CLOs still going strong

    US CLO secondary market is still going strong with the BWIC pipeline growing and paper trading well.

    "BWICs are continuing to trade very well," says one trader. "Many bonds are going through right at par or just above."

    The trader attributes this to the relative value the sector offers. "Right now, CLOs seem to be offering the best opportunities rating .......

    SCIWire 18 May 2015

  • US CLO performance stable

    US CLO performance remained stable in 1Q15, according to Fitch's latest index results for the sector. Only one newly defaulted name, Quicksilver Resources, was held by one CLO at the end of the quarter.

    While several leveraged energy issuers filed for bankruptcy or initiated debt restructuring in the beginning of the second quarter, CLOs tracked by Fitch's index are minimally impacted. The .......

    News Round-up 15 May 2015

  • SME hybrid touted

    The European Covered Bond Council (ECBC) has unveiled a plan to create instruments to finance SME lending, in response to the European Commission's Green Paper on Building a Capital Market Union. The proposed instruments are called European Secured Notes (ESN) and blend covered bond and securitisation techniques.

    The ECBC has proposed two kinds of ESNs: an on-balance sheet format that .......

    News Round-up 14 May 2015

  • LMA voices STS concerns

    The LMA has responded to a number of criteria proposed by the EBA and BCBS/IOSCO for identifying simple, transparent and standardised (STS) securitisations, as well as a number of criteria put forward in the delegated acts of Solvency 2. The response states that the current proposals, if implemented, would exclude managed CLOs from being able to qualify as STS securitisation largely .......

    News Round-up 14 May 2015

  • Euro CLOs keep momentum

    The European CLO secondary market is maintaining its positive momentum in the 2.0 space, though that could change.

    "2.0 paper continues to trade well on- and off-BWIC with double- and triple-Bs continuing to be the most active part of the stack," says one trader. "There's still strong demand for CLO paper more broadly as shown by another new deal pricing .......

    SCIWire 14 May 2015

  • Libor floor trade mooted

    CLO equity investors can sell long-dated Libor floors matching those embedded in CLO asset portfolios to monetise the time value in such embedded options. With a Fed hike possible this year, now may be the time to act.

    A Fed hike before the end of the year is increasingly expected, which could move Libor floors quickly out-of-the-money. Selling the floors .......

    News 14 May 2015
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