CLOs

  • C tranches cause CLO market stir

    SCI's PriceABS data shows a mix of US CLO names out for the bid yesterday. Offered tranches were biased towards 2006- and 2012-vintage paper, with talk largely concentrated in the 80s and 90s.

    Many of the bonds circulating in Monday's session were C tranches or lower. ALM 2012-5A C and ALM 2012-6A C were talked at .......

    Market Reports 27 August 2013

  • Credit manager adds four

    CVC Credit Partners has strengthened its teams in Europe and the US with four new hires. Ran Landmann, Mitchell Glynn and Lucie Bonnieux join in London, while Caroline Benton is based in New York.

    Landmann, who was previously at Owl Creek Europe Management, the New York-based hedge fund covering distressed credit in Europe, joins as md. Before that he was .......

    Job Swaps 23 August 2013

  • Ratings reviewed on bank linkage

    Moody's has placed on review the ratings of a number of securities directly exposed to the credit quality of certain US banks, on which the agency took rating actions on 22 August. The action affects 20 tranches in 12 structured finance deals and 32 tranches in 18 structured credit deals.

    The move is driven by the linkage between the ratings .......

    News Round-up 23 August 2013

  • 'Passporting' framework recommended

    SFIG has submitted a comment letter to the EBA regarding its consultation paper on revised proposed EU securitisation regulations. To mitigate the costly and potentially preclusive impact of differing regulatory approaches on cross-border securitisation transactions, the association recommends that the EBA adopt a framework for 'passporting' that would permit non-EU sponsors to comply with a non-EU jurisdiction's risk retention requirements.

    News Round-up 22 August 2013

  • Bank boosts CLO capabilities

    CLO specialist Adrian Radulescu is joining Barclays' US credit structuring team. He will be based in New York and report to head of US ABS and credit structuring Jaime Aldama.

    Radulescu most recently worked as a consultant for Credit Suisse in London. Before that he was at Lehman Brothers and SecondMarket in New York, following an earlier stint at Credit .......

    Job Swaps 16 August 2013

  • RFC issued on multi-country CLOs

    Moody's has published a request for comment on its proposed approach to assessing country risk in multi-country CLOs. Under the proposal, for a given size of exposure to countries with a local currency country risk ceiling (LCC) of A1 and lower, the rating agency would provide tables that indicate a portfolio par value haircut for tranches with target ratings higher .......

    News Round-up 15 August 2013

  • Fixed income PM appointed

    Jon Jonsson has joined Neuberger Berman as md. He is based in London and joins from JPMorgan, where he spent more than 15 years. Jonsson will serve as a portfolio manager on the firm's global fixed income team.

    .......

    Job Swaps 14 August 2013

  • Vintage impacts CLO equity returns

    Equity returns for US CLOs have been strong over the past year, but vintage significantly affects performance. Given current trends, 2007-vintage CLOs are expected to see the highest average cumulative equity distributions.

    The most significant drivers of CLO equity performance during a period of low leveraged loan default rates are the timing of the CLO's origination and the extent to .......

    News Round-up 12 August 2013

  • Greater flexibility for new CLO managers

    The CLO market has become more receptive to new managers, evident in the ability of some to issue multiple CLO 2.0 transactions, as well as the relaxation of reinvestment restrictions in their deals. However, Moody's notes in its latest CLO Interest report that some of the more recent entrants do not have investment professionals with substantial CLO or leveraged loan .......

    News Round-up 8 August 2013

  • CLO risk-retention features highlighted

    Moody's discusses in its latest CLO Interest publication a number of novel features contained in KKR Financial CLO 2013-1 that are intended to comply with both current and forthcoming European risk-retention rules. The US deal is structured so that the originator of the assets retains the equity, which provides incentives for European investors to purchase the deal's notes.

    In their .......

    News Round-up 7 August 2013

  • GSO/Blackstone retains top spot in CLOs

    Moody's has updated its CLO manager league tables, as of 30 June. The data are for only CLOs that the agency has publicly-rated and which consist of both broadly syndicated loan (BSL) CLOs and SME CLOs.

    In the US CIFC continues to lead the CLO market by deal count, with 30 CLOs and US$11.2bn assets under management, followed by GSO/Blackstone, .......

    News Round-up 7 August 2013

  • Survey blasts CLO retention rules

    The Loan Syndications and Trading Association has submitted a comment letter to the Fed, the OCC, the FDIC, the SEC, the FHA and the Department of Housing and Urban Development. The letter prominently features a new survey - polling 35 CLO managers that collectively manage US$228bn in 509 CLOs - conducted by the LSTA, which shows that new risk retention .......

    News Round-up 5 August 2013

  • Euro CLO supply 'exceeding expectations'

    European CLO issuance this year has already exceeded the majority of observers' expectations, S&P says in its 2Q13 European CLO Performance Index Report. So far in 2013, 10 European CLOs have priced, bringing total issuance for the year to €3.4bn. In addition, the agency estimates that the sector will see at least another €1.4bn of new issuance in Q3.

    However, .......

    News Round-up 2 August 2013

  • Ares unveils strategic partnership

    Ares Management and Alleghany Corporation have announced a new strategic partnership. Under the agreement, Alleghany invested US$250m for a 6.25% equity ownership interest in Ares and committed to invest up to US$1bn of capital in various existing and new Ares investment strategies.

    Through its relationship with Ares, Alleghany seeks both to participate in Ares' strong business prospects and to enhance .......

    Job Swaps 2 August 2013

  • Euro CLOs exiting reinvestment periods

    The majority of senior notes in European CLOs have begun to amortise through the exit of reinvestment periods, according to Fitch's latest CLO Tracker reading. The average triple-A note factor across Fitch-rated transactions is now 75.78%, versus 76.24% in the April 2013 Tracker report.

    With only three transactions showing a senior note factor of 100%, this is indicative of deals .......

    News Round-up 31 July 2013

  • Accelerating evolution

    CLO structural changes gather pace amid increased issuance

    The pick-up in CLO issuance has accelerated structural innovation on either side of the Atlantic. At the same time, regulatory pressures continue to shape the market.

    In Europe, this process began with Cairn CLO III, which hit the market in February (SCI passim). Although the 5% retention piece required by CRD Article 122a was placed with a third-party, European regulators have .......

    News Analysis 30 July 2013

  • Structured debt specialist brought in

    Edward Dale has joined Highbridge Capital as svp in New York. He is a member of the large cap loan team focussed on CLOs.

    Dale was previously at Mead Park Management and has also served as head of structuring and capital markets at Bridger Commercial Funding. Before that he had stints at Navesink Advisory, Barclays, Credit Suisse, Escatena and the .......

    Job Swaps 26 July 2013

  • Cross-asset movement

    Rising rates rearrange relative value

    Rising interest rates in the wake of the Fed's tapering proposal have profoundly affected cross-asset relative value. While investors may consequently choose to move down the capital structure within CLOs, interest in CMBS is also expected to increase.

    US CLO triple-A spreads have not moved much recently as three-month Libor has been largely steady. Movement has been much more dramatic .......

    News Analysis 26 July 2013

  • Italian SME default drivers analysed

    Italian SMEs most at risk of defaulting on their securitised secured and unsecured loans are those active in the construction and building sector, says Moody's in a new special comment. The report covers data on Italian SMEs between 2012-2013 and the default drivers that the agency identifies as rating neutral for Italian SME ABS transactions.

    Moody's analysis of default data .......

    News Round-up 25 July 2013

  • FATCA delay 'credit positive' for CLOs

    The US Internal Revenue Service's decision to delay FATCA implementation -scheduled to begin on 1 January 2014 - by six months is credit positive for CLOs with offshore issuers, according to Moody's in its latest Credit Outlook publication. The move is expected to save the administrative burden and expense of FATCA compliance during that time, extend applicability of FATCA's grandfathering .......

    News Round-up 24 July 2013

  • Volatility cited as biggest CLO concern

    CLO supply is predicted to reach US$34.5bn and €3.6bn in the second-half of the year, according to JPMorgan's latest client survey for the sector, implying a full-year global forecast of about US$87bn. End-2013 spread targets for US and European triple-A primary spreads are mainly concentrated around the Libor plus 110bp-120bp area, with a significant Libor plus 100bp population.

    Market volatility .......

    News Round-up 18 July 2013
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