CLOs

  • Dual shocks

    Securitisation well positioned to withstand headwinds

    The Covid-19 shock has been replaced by two others - war and worse-than-expected inflation (SCI 7 April). However, the securitisation market appears to be well positioned to withstand these headwinds.

    “We came into the year coming out of one shock – pandemic - only to be hit by two others: worse-than-expected inflation and now war. Those new shocks are .......

    News Analysis 8 April 2022

  • Lakemore Partners appoints independent board member

    Sector developments and company hires

    Lakemore has appointed Howard Tiffen as an independent member on its board of directors. With more than four decades of experience in credit, product, and portfolio management, Tiffen brings extraordinary knowledge in high yield capital markets to the firm. Tiffen has held senior credit management positions at numerous firms, including Continental Bank, Bank of America, and Van Kempen (now Invesco). .......

    Market Moves 8 April 2022

  • Nuveen closes CLO issuance fund

    Sector developments and company hires

    Nuveen has announced the close of its inaugural CLO equity fund with over US$375m in committed capital. The Nuveen CLO Issuance Fund was supported by global public and private pension plans, family offices, as well as insurance companies, and will provide the opportunity to invest alongside Nuveen’s parent company, TIAA. The firm hopes the fund will offer exposure to the .......

    Market Moves 6 April 2022

  • Covid-19: The effects on the securitisation sector

    TJ Durkin, head of structured credit at Angelo Gordon explores the immediate and longer-term effects of the pandemic on securitisation markets

    Since the Global Financial Crisis (GFC), structured credit markets have often been described as “resilient” given conservative underwriting and collateral fundamentals over that period. Household leverage has considerably declined, and debt-service sits near historic lows – in stark contrast to corporations .......

    Talking Point 5 April 2022

  • WhiteStar acquires Carlson Capital's CLO business

    Sector developments and company hires

    WhiteStar Asset Management has announced its acquisition of five reinvesting CLOs of more than US$2bn managed by Carlson CLO Advisers. WhiteStar will take on all collateral management duties of the Cathedral Lake branded CLOs, effective from 31 March 2022. WhiteStar and Carlson were represented in the transaction by Milbank and Mayer Brown, respectively. The acquisition follows WhiteStar’s recent expansion, acquiring .......

    Market Moves 4 April 2022

  • BNP Paribas Asset Management acquires majority stake in Dynamic Credit Group

    Sector developments and company hires

    BNP Paribas Asset Management has announced the completion of its acquisition of a majority stake in Dutch asset manager, Dynamic Credit Group (DCG). The acquisition marks an important step in BNPP AM’s strategic plan to expand its investment business, and particularly its private debt platform. The firm hopes the integration of DCG into BNPP AM teams will enhance its private .......

    Market Moves 1 April 2022

  • Keeping score

    ESG CLO challenges highlighted

    The role that CLOs can play in the sustainability agenda is becoming increasingly difficult to ignore, given the push towards Article 8 transactions under the SFDR (SCI 21 December 2021). Against this backdrop, a recent study undertaken by Scope Ratings analyses underlying borrower scores to highlight the challenges of labelling European CLOs as ESG products.

    “The challenge .......

    News Analysis 1 April 2022

  • First Eagle Investments to acquire Napier Park Global Capital

    Sector developments and company hires

    First Eagle Investments has announced its agreement to acquire leading alternative credit manager, Napier Park Global. The deal is expected to close within the next few months, and will see Napier Park retain its investment and operating autonomy. At the close of 2021, First Eagle had a reported US$110.5bn in assets under management, with this acquisition set to increase further .......

    Market Moves 31 March 2022

  • Quality control

    Call for ESG data improvements

    The lack of clear, unified standards continues to constrain the wider adoption of ESG securitisation in the EU. In order to fulfill investor demand for such product, both the quality and quantity of ESG data needs to improve, according to panelists at SCI’s recent ESG Securitisation Seminar.

    Andrew Lennox, portfolio manager at Federated Hermes, pointed out that pricing .......

    News Analysis 30 March 2022

  • Sixth Street establishes structured products business

    Sector developments and company hires

    Sixth Street has announced the formation of a dedicated structured products business to further enhance its capabilities as a strategic capital partner and solutions provider at scale. Sixth Street structured products builds upon the firm’s existing expertise and will focus on asset and platform investing and origination across finance markets, including commercial and residential mortgages, renewables and energy finance, consumer .......

    Market Moves 29 March 2022

  • How can I manage a thriving CLO platform?

    Dana Carey, cio, MidOcean Credit Partners, explains that managing a successful CLO platform is like assembling a jigsaw puzzle – there are many complex pieces that need to fit together for it to create an efficient, effective and cohesive final product.

    In a universe of more than 100 CLO managers, since the financial crisis, few have done much to differentiate .......

    Talking Point 28 March 2022

  • Secondary CLO equity fund launched

    Sector developments and company hires

    Accunia Credit Management has launched a CLO equity fund called King’s Garden. The firm is targeting an IRR of at least 15% over the fund’s lifespan by investing in CLO equity tranches in the secondary market.

    The new strategy completes Accunia’s credit product suite aimed at family offices and ultra high net-worth individuals. The firm says it will start deploying .......

    Market Moves 25 March 2022

  • Wrapped ratings upgraded

    Sector developments and company hires

    Moody's has upgraded the ratings of 148 classes of US structured finance securities wrapped by Assured Guaranty Municipal (AGM), Assured Guaranty (AGC) and their affiliated insurance operating companies, as well as one class of US securities wrapped by AGM. The securities impacted include certain RMBS and ABS notes. The move follows Moody's upgrade of the insurance financial strength (IFS) .......

    Market Moves 23 March 2022

  • Inequitable frameworks

    Data analyses demonstrate punitive ABS treatment

    AFME has published two independent data analyses, undertaken by Risk Control, in response to the European Commission’s call for advice regarding bank and insurance prudential capital treatment and the liquidity coverage ratio (LCR). Both reports demonstrate that the current European regulatory framework is disproportionately punitive for securitisation.

    One of the Risk Control analyses examines the relative risk of .......

    News Analysis 22 March 2022

  • Equitable Holdings subsidiary to acquire CarVal Investors

    Sector developments and company hires

    Equitable Holdings has announced the acquisition of CarVal Investors by its subsidiary, AllianceBernstein. The agreement to acquire the global private alternative investment manager with US$14.3bn in AUM falls in line with Equitable Holdings’ strategy to further its differentiated business model and increase returns. CarVal focuses on opportunistic and distressed credit, as well as renewable energy infrastructure, speciality finance, and transportation .......

    Market Moves 18 March 2022

  • Barrow Hanley closes inaugural CLO equity fund

    Sector developments and company hires

    Barrow Hanley Global Investors has closed on its inaugural CLO equity fund – the Barrow Hanley CLO Fund I LP. The fund will be managed by the existing alternative credit team and follows the aims of the firm’s strategic partner, Perpetual Limited, to expand the product offering at Barrow Hanley. Perpetual, alongside employees at Barrow Hanley, have invested 35% of .......

    Market Moves 17 March 2022

  • Choice offering

    Rob Reynolds, md and head of CLOs at Pemberton Asset Managem...

    Q: You joined Pemberton earlier this month (SCI 1 March). Can you provide an overview of the firm and the new CLO platform?
    A: Pemberton was founded in 2013 by our managing partner Symon Drake-Brockman, who is still leading the business. At the time, the fallout from the financial crisis in 2008 led banks to prioritise investment-grade loans and shrink .......

    The Structured Credit Interview 17 March 2022

  • IGLOO SME scheme unveiled

    Sector developments and company hires

    The EIF is supporting the Italian Guaranteed Loan Origination Platform (IGLOO), a new state-backed initiative that aims to provide €170m in opportunities for growth and financing for at least 800 SMEs and mid-caps in Italy. Promoted by Gruppo MutuiOnline and Gruppo NSA, the platform has a particular focus on criteria relating to climate transition and environmental sustainability.

    The EIF will participate via .......

    Market Moves 15 March 2022

  • What makes an efficient CLO manager?

    Phil Raciti, head of performing credit and a portfolio manager at Bardin Hill, explains the key attributes needed to be successful as a CLO manager

    The CLO asset class operates within a sophisticated construct of arbitrage, leverage, and structural protections. Having navigated multiple recessions and the most significant period of issuer downgrade activity on record in 2020, the asset class has .......

    Talking Point 14 March 2022

  • Growing presence

    Mia Drennan, president, founder and co-chair of GLAS, answers SCI's questions

    Q: What is your strategic vision for GLAS and its continued expansion and growth in the US?
    A: GLAS was founded in 2011 and we expanded into the US in 2016. Once we secured the necessary regulatory licenses and approvals to operate in the US, we began serving clients on a cross-border basis across the UK, Europe, Australia and the .......

    Provider Profile 10 March 2022

  • Carlyle tops rankings on CLO acquisition

    Sector developments and company hires

    Carlyle is set to acquire from CBAM Partners a portfolio of assets using a combination of US$615m in cash from Carlyle’s balance sheet and approximately 4.2 million newly issued common shares. CBAM’s US$15bn in assets under management - the majority of which are in CLO funds - will be integrated into Carlyle’s global credit platform. The transaction will increase .......

    Market Moves 10 March 2022
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