CLOs

  • Europe focuses on BWICs

    Quiet bilateral activity and consequently static spreads are increasing European secondary market focus on BWICs.

    "It's generally pretty static," says one trader. "Greek paper is still drifting downwards but that's pretty much it on light flows."

    The trader continues: "The primary market continues to be active, but it's not having any impact on secondary. A new issue premium is in .......

    SCIWire 22 April 2015

  • Coal exposure eyed

    The deteriorating credit quality of four US coal companies is stressing some US CLOs with sizable exposures, Moody's reports in its latest CLO Interest. However, most US CLOs have small exposures to the credits, limiting the negative impact of the companies on the CLO universe.

    Moody's notes that Alpha Natural Resources, Arch Coal, Patriot Coal Corp and Walter Energy are .......

    News Round-up 22 April 2015

  • CLO 1.0 WARFs improving

    The median trustee-reported weighted average rating factor (WARF) of US CLO 1.0s rated by Moody's is improving as the deals amortise. This is not due to improving credit quality, but rather is a result of the exclusion of defaulted assets from WARF calculations, the redemption of CLOs with relatively high WARFs and the sale of high risk assets.

    The removal .......

    News Round-up 22 April 2015

  • Euro CLO BWICs building

    After a relatively quiet period the European CLO BWIC calendar is beginning to build once more.

    "We're seeing a few more BWICs appearing so there's bit more happening in that part of the market now," says one trader. "A lot of people have been sitting on the sidelines trying to figure out the impact of the huge pay-downs we've been .......

    SCIWire 21 April 2015

  • Effective date process refined

    S&P has introduced a new alternative to its effective date rating agency confirmation process for CLOs. The update is intended to increase the transparency and predictability of the effective date process for collateral managers as they ramp up their CLO portfolios.

    The alternative effective date process relies on the non-model version of CDO Monitor introduced by S&P last year, which .......

    News Round-up 21 April 2015

  • Risk retention views polled

    Among respondents to JPMorgan's 2Q15 CLO client survey, it is generally felt that only a minority of CLO managers have a clearly defined risk retention strategy. About half of those surveyed - and overwhelmingly investors - believe that a manager should contribute at least 51% of the retention, with the remainder suggesting that the contribution should be 10%-30% or even .......

    News 21 April 2015

  • US CLOs keep quiet

    The recent run of quiet days in the US CLO secondary market, last Thursday's blip excepted, is likely to continue this week.

    If anything, this week looks set to be even quieter than last. Both buy- and sell-side players appear to be taking this week's New York CLO conference as an opportunity to stay out of the market and sidestep .......

    SCIWire 20 April 2015

  • CLO pro swaps managers

    HIG Capital has hired Asmat Doza as a director. She was previously an executive director at CIFC Asset Management, where she was responsible for marketing corporate credit and structured credit strategies, including CLO debt and equity mandates. Doza has also held senior roles at Boutique Advisory Firm and PineBridge Investments.

    .......

    Job Swaps 20 April 2015

  • Euro CLOs stay strong

    The European CLO secondary market appears to continue to be insulated from broader market concerns.

    Yesterday saw strong prints across all the BWICs due and broader secondary activity was similarly buoyant. Today, overall European CLO market tone remains positive and demand for paper continues to be high.

    There are two European CLO BWICs scheduled for today so far. Both are .......

    SCIWire 17 April 2015

  • Euro CLOs see significant flows

    The European CLO secondary market is continuing to see significant flows.

    "We're seeing less volume than last month, but flows are still very significant," says one trader. "In the month so far we've done less selling than last month, but have bought more."

    Nevertheless the trader reports demand for CLO product remains very strong and has broadened. "We're seeing demand .......

    SCIWire 16 April 2015

  • European chief replaced

    Nicholas Pappas has joined BlueMountain Capital Management as ceo of its European operations, based in London. The current ceo, David Rubenstein, will return to the firm's flagship office in New York, where he will serve as a managing partner and general counsel.

    Pappas arrives as former head of EMEA leveraged finance trading and research at Goldman Sachs, where he oversaw .......

    Job Swaps 16 April 2015

  • US CLOs holding up

    Despite continuing low levels of activity the US CLO secondary market is holding up.

    "It's still very quiet as the holdover from the holidays continues," says one trader. "But that's not to say the market isn't holding up well - prices remain firm if mainly moving sideways for now."

    The trader continues: "We don't see any really distressed areas and .......

    SCIWire 15 April 2015

  • SF director tapped

    First Names Group has hired Keat Cheng Chin as structured finance director. He will be involved in implementing SF transactions for the firm, including CLOs, aviation and real estate structures.

    Chin arrives from TMF Group, where he held a variety of roles, including leading an accounting team on SF. Prior to this, he was an audit manager for BDO Ireland.

    .......

    Job Swaps 15 April 2015

  • Growing appetite

    US managers targeting CLO-hungry Europeans

    US CLO managers are tapping strong demand from European investors for CRR-compliant paper. The originator route appears to be the most accessible structuring route for now.

    "So far nine US CLOs have been issued in compliance with European risk retention requirements in 2015, with at least 20 in total dating back to 2013," says Rondeep Barua, a research analyst at .......

    News Analysis 15 April 2015

  • US CLO lull continues

    The lull in US CLO secondary market activity is continuing despite the small increase in the BWIC calendar today.

    "It's still very much a continuation of last week," says one trader. "There are a few lists today, but it's still very quiet - nothing has materially picked up."

    The trader suggests there are no significant reasons for the lull in activity. .......

    SCIWire 14 April 2015

  • Euro ABS/MBS static

    The European ABS/MBS secondary market remains quiet but well-supported.

    "Secondary ABS/MBS is still static and very quiet post-Easter," says one trader. "Levels are pretty much unchanged and despite the Street feeling long they appear well-supported."

    The primary market is also dragging attention away from secondary trading. "There is a lot of investor interest focused on new issues including the latest .......

    SCIWire 14 April 2015

  • Flicker of life in US CDO/CLO BWICs

    The US CDO/CLO BWIC calendar is flickering into life for tomorrow.

    After a relatively quiet week last week it's another quiet day on- and off-BWIC in the US CLO/CDO secondary market today. However, a small BWIC pipeline is gradually building for tomorrow, albeit with little visible after that for the remainder of the week.

    There are currently four BWICs on .......

    SCIWire 13 April 2015

  • Euro secondary stays slow

    The light BWIC volumes seen in European securitisation markets throughout the much of the Easter holidays look set to continue into today.

    It was a quiet day on- and off-BWIC on Friday with spreads for the most part unchanged and a similar pattern appears to be forming at today's open. CLOs, Dutch and UK prime continue to garner the most .......

    SCIWire 13 April 2015

  • Slow end for US CLOs

    Today looks set to be a slow end to a slow week for the US CLO secondary market.

    "It's been a slow week in terms of both trading activity and the sizes going through," says one trader. "However, it's not entirely unexpected - after the rush through the door at the end of March for quarter-end it was always going .......

    SCIWire 10 April 2015

  • Loan subsidiary launched

    TIAA-CREF has launched Churchill Asset Management, a new majority-owned subsidiary focused on originating, underwriting and managing senior loan investments, primarily in US middle-market companies. The new venture will focus on investment opportunities through various vehicles designed to meet the needs of institutional and qualified investors, including CLOs, co-mingled funds and separately managed accounts.

    Churchill will operate as a standalone business, .......

    Job Swaps 10 April 2015

  • Euro secondary flow holds sway

    The European secondary securitisation market is currently focused on flow trading.

    Securitisation markets are continuing to move independently of the rally in broader markets. Instead, spreads are being driven by technicals amid healthy if patchy flow trading.

    Autos, CLOs, CMBS, UK non-conforming, UK and Dutch prime are all either tighter or staying firm this week thanks to continued investor demand .......

    SCIWire 10 April 2015
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