CLOs

  • FLLO loan characterisation proves blurry

    S&P reports that some US CLO collateral managers are investing in first-lien-last-out (FLLO) loans. However, the agency says that the way managers are characterising such loans - whether as senior secured loans or second-lien loans - could have an impact on CLO investor payments.

    The credit risks associated with FLLO loans are generally equivalent to those of second-lien loans, S&P .......

    News Round-up 15 October 2010

  • CLO transfer won't derail CypressTree sale

    Primus Guaranty and Commercial Industrial Financial Corp (CIFC) confirm that the acquisition by CIFC of Primus' CypressTree Investment Management subsidiary and the CLOs and structured credit funds it manages is on track for completion by the end of October. The two firms released a statement indicating that consummation of the transaction will not be affected by the transfer of the .......

    Job Swaps 14 October 2010

  • LCM takes on Hewett's Island

    LCM Asset Management has been appointed replacement collateral manager on Hewett's Island CLO IV. The firm is assuming the collateral management responsibilities previously performed by CypressTree Investment Management, which was recently sold by Primus Guaranty to CIFC (see SCI issue 202).

    .......

    Job Swaps 13 October 2010

  • Garrison CLO nears

    Further details have emerged about Garrison Investment Group's long-awaited US CLO - Garrison Funding 2010-1. The US$219.55m transaction, arranged by Deutsche Bank, will pool primarily middle-market and broadly syndicated senior secured loans.

    S&P has assigned preliminary ratings to four classes of notes: triple-A to the US$164.5m class A-1 and US$25m class A-2 notes (which are expected to print at 240bp .......

    News Round-up 13 October 2010

  • Debt capabilities enhanced with CLO manager buy

    3i Group has acquired Mizuho Investment Management (MIM), a debt management firm specialising in CLOs and senior and subordinated corporate debt funds. The firm has a team of 28 employees and is expected to enhances 3i's capabilities in the debt markets, building upon the group's existing private equity and infrastructure businesses.

    3i's existing debt management activities will be merged with .......

    Job Swaps 6 October 2010

  • Euro CLO performance stabilising

    The pace of negative credit migration within European CLO portfolios is slowing, according to Fitch's latest European performance tracker for the sector.

    Since Fitch's last such report in July, two defaults have occurred. However, the names were not heavily referenced in the transactions included in the CLO tracker universe.

    Meanwhile, CLO portfolios saw their triple-C exposure decline to 7.4% from .......

    News Round-up 6 October 2010

  • CLOs expected to smooth loan maturity curve

    CLO transactions could play a role in refinancing the wave of US leveraged loan maturities over the next four years, S&P believes. The agency expects regulatory reform to spark investor demand for new US CLO issuances, with performance and transparency providing fertile ground.

    "In our view, existing CLOs may help smooth out the maturity curve by utilising their reinvestment capacity .......

    News Round-up 29 September 2010

  • Review shows limited use of CDO buckets

    A new report published by S&P indicates that most US collateral managers have not fully utilised the CDO buckets in their CLO transactions. The finding is based on a review of the agency's CDO collateral database.

    The report suggests that only 327 CLOs, representing 52% of the US CLOs rated by S&P, hold CDO notes in their collateral portfolios. Of .......

    News Round-up 29 September 2010

  • Primus divests CLO subsidiary

    Primus Guaranty is to sell CypressTree Investment Management, its third-party asset management subsidiary that it acquired in July 2009 (see SCI issue 145), to Commercial Industrial Finance Corp (CIFC). Terms of the transaction were not disclosed.

    CypressTree manages or sub-advises approximately US$2.8bn of high yield and leveraged loan assets in eight CLOs - Primus CLO I and II, and Hewett's .......

    Job Swaps 29 September 2010

  • German balance sheet CLOs stabilising

    The performance of 12 Fitch-rated German balance sheet CLOs appears to be stabilising. This trend, the agency notes, corresponds to the improving economic environment in Germany this year.

    Although Fitch has observed new defaults in almost all 12 transactions since the beginning of 2010, the extent of such deterioration has been moderate. Average new defaults have amounted to 0.4% of .......

    News Round-up 29 September 2010

  • Residual value

    Non-performing CLO equity in demand

    CLO equity is in demand: fund managers are recording substantial increases in equity valuations, while traders report that residuals of certain deals are pricing as high as 70c or 80c on the dollar. Investor attention is now being turned to non-performing equity in the anticipation that improving deal metrics will result in the resumption of cashflows for those assets.

    Non-performing .......

    News Analysis 24 March 2010

  • Illiquid solution

    Celestino Amore, md and founder of IlliquidX, answers SCI's questions

    Q: How and when did IlliquidX become involved in the structured credit market?
    A: IlliquidX is a financial services boutique providing innovative solutions to professional investors that include institutional, corporate and high net worth clients. We enable our clients to effectively price and trade illiquid securities, such as high yield and distressed debt, bankruptcy claims, NPLs, MBS, CLOs, CDOs and CSOs. .......

    Provider Profile 10 February 2010

  • Asian CLOs ramp up

    Deals in China, Malaysia and Singapore emerge

    

    CLO issuance across the Asia Pacific region is on the rise once more following a hiatus in recent months, with transactions in the works in China, Malaysia and Singapore.

    "All of a sudden, it seems everywhere you look across the region deals are being prepped. We are hearing about CLOs either in more unusual places - notably China and .......

    News 6 December 2006

  • Investment and management

    Pierre Emmanuel Juilliard, head of Structured Finance, AXA IM, answers SCI's questions this week

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    Pierre Emmanuel Juilliard

    Q: When, how and why did your firm become involved in the structured credit markets?
    A: We have been involved in structured credit since the early 1990s - initially it was a tactical move to spice up our fixed income portfolios. We bought our first ABS in 1992; our first .......

    The Structured Credit Interview 16 August 2006

  • Bear brings new ABS CDO

    A round up of this week's structured credit news

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    Bear brings new ABS CDO
    In a new twist on the normal CDOs of ABS, Bear Stearns has launched the EUR450m Colonnade I, a partially synthetic CDO of European mezzanine ABS, for the Morgan Stanley Global Proprietary Credit Group. Typically CDOs of ABS are cash, and although this has in some ways been made to look like a cash deal it .......

    Market Moves 16 August 2006
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