CLOs

  • Capital preservation

    Sharif Anbar-Colas, head of structured credit at Kartesia, answers SCI's questions

    Q: How and when did Kartesia become involved in the securitisation market?
    A: Kartesia has been involved in the securitisation market for more than 10 years and made investments in securitised products from the first fund raised in 2010. This involvement came from an appreciation of how the securitised tranches of portfolios were trading at a discount to the actual .......

    The Structured Credit Interview 9 October 2020

  • Litigation finance fund formed

    Sector developments and company hires

    Litigation finance fund formed
    Tetragon and its diversified alternative asset management business TFG Asset Management have entered into an agreement with Brandon Baer to invest in his newly-created company, Contingency Capital. The company – which is expected to formally launch on 1 November - is a multi-product global asset management business that will sponsor and manage litigation finance-related investment funds.

    Baer .......

    Market Moves 8 October 2020

  • Structured finance solutions

    Contributed thought leadership by Ocorian

    Sonal Patel, md, head of sales - Americas, Bermuda and Caribbean, and Sinead McIntosh, business development director at Ocorian, a global leader in corporate and fiduciary services, fund administration and capital markets, highlight how structured finance solutions are coming to the fore across securitisation markets

    Q: How is the securitisation industry responding to the Covid-19 fallout and .......

    Talking Point 7 October 2020

  • 'Quick fix' draft legislation published

    Sector developments and company hires

    ‘Quick fix’ draft legislation published
    The European Parliament has published draft legislative resolutions on amendments to the Securitisation Regulation and CRR in connection with STS synthetics and non-performing exposures.

    Among the proposals is a tightening of the definition of an NPE securitisation and the introduction of stricter language on risk retention, according to Rabobank credit analysts. The regulatory treatment .......

    Market Moves 6 October 2020

  • Range of moratoria take-up 'stark'

    Sector developments and company hires

    Range of moratoria take-up ‘stark’
    With payment holiday concentrations having fallen over the past few remittance periods, the range of payment holiday take-up across UK RMBS is stark, according to JPMorgan’s latest Covid-19 Payment Holiday Tracker. Reflecting data reported primarily through September and August, the report identifies zero percent (in the case of the MORTI 2020-1 deal) and 0.6% (TWIN .......

    Market Moves 5 October 2020

  • New IMA inked

    Sector developments and company hires

    New IMA inked
    Pollen Street Secured Lending (PSSL) has appointed Waterfall Asset Management as its investment manager, replacing PSC. An investment management agreement has also been signed with a new AIFM, Mirabella Financial Services. PSSL has agreed to pay PSC a sum representing the approximate balance of the unpaid base management fee, including the unexpired notice period. The PSSL board believes that .......

    Market Moves 2 October 2020

  • Repayments rated

    CLO debt repayment rates could act as a manager differentiator

    Manager differentiation has become ever more important as the Covid-crisis and its resultant CLO market impact continues to play out. Real repayment rates could become the latest tool in the manager selection process as well as an important pricing input.

    "Examining how quickly CLO rated debt is being paid down post reinvestment end date on a deal by deal basis .......

    News Analysis 1 October 2020

  • 'Dual-track' approach touted for SRT

    Sector developments and company hires

    ‘Dual-track’ approach touted for SRT
    The EBA is finalising its report on significant risk transfer and hopes to be able to publish it by year-end, according to Pablo Sinausia, policy expert at the authority. He disclosed during a TSI Congress 2020 panel today that the report builds on the EBA’s recent report on STS synthetics and will address structural features that .......

    Market Moves 1 October 2020

  • SME ABS debut for Italian fintech

    Sector developments and company hires

    SME ABS debut for Italian fintech
    Banca Valsabbina has supported fintech BorsadelCredito.it as arranger, account bank and subscriber - together with other institutional investors – of ABS notes in a €100m securitisation backed by trade receivables granted to SMEs and guaranteed by the Central Guarantee Fund for SMEs. This is the first unrated securitisation operation listed on Borsa Italiana’s ExtraMOT-PRO .......

    Market Moves 30 September 2020

  • Double-B disparity

    US CLO lower mezz misses out

    Last week saw high levels of activity across the bulk of the US CLO primary and secondary markets. However, new and very recent double-B paper has missed out.

    “The majority of the new issue debt stack has been very actively bid, but double-B spreads have not been moving as tighter as expected,” says one trader. “In the secondary, .......

    News Analysis 30 September 2020

  • Mezz CLO fund closed

    Sector developments and company hires

    Mezz CLO fund closed
    Pearl Diver Capital has completed the final closing of its eighth closed-end CLO investment fund, PDC Opportunities VIII, at US$400m. Launched with a target raise of US$300m, the fund hit its hard cap, with LPs represented by public pension systems, corporate pension plans, high net-worth family offices and endowments. The fund is designed to invest opportunistically .......

    Market Moves 29 September 2020

  • European evolution

    European CLO market changing post-Covid

    European CLO structures are evolving post-crisis, including the introduction of static deals only previously seen in the US. Such innovation combined with relative value opportunities could spur further market growth.

    Dasha Sobornova, partner at Mayer Brown, says: “When the market opened up there were features that were quite different to what we were used to seeing in CLO .......

    News Analysis 28 September 2020

  • Revolver exposures on offer

    Sector developments and company hires

    Revolver exposures on offer
    Goldman Sachs is in the market with a balance sheet synthetic securitisation referencing a portfolio of predominantly investment-grade senior unsecured revolving loan facilities. Dubbed Goldman Sachs Bank USA credit-linked notes due 2025, the transaction comprises two classes of S&P-rated CLNs for a total of US$184.8m.

    The transaction documentation links the ability of Goldman Sachs to .......

    Market Moves 25 September 2020

  • Private credit fund formed

    Sector developments and company hires

    Private credit fund formed
    FrontWell Capital Partners has launched with committed seed capital of more than US$350m from a group of international investors. Headquartered in Toronto, the firm aims to provide transitionary senior debt financing - including asset-based and cashflow loans - to middle-market companies in the US and Canada.

    FrontWell is led by founder and ceo Patrick Dalton, who previously .......

    Market Moves 23 September 2020

  • Into the light?

    European CLOs continue to improve

    The European CLO market is seeking to build on its relatively stable foundations of recent months as prices move ever-tighter. Notwithstanding the broader ramifications of a continuing global pandemic, the sector looks set to be leaving the darkest days of March and April behind.

    Last Friday saw the tightest post-Covid print yet in the European CLO primary market, .......

    News 21 September 2020

  • Tech crazy

    Securitizations of tech assets finding favour in Covid world

    Securitizations of technology assets are proving popular with US investors in the Covid marketplace, according to a new Moody’s report based on interviews with “dozens” of structured finance issuers, arrangers and investors around the world.

    In particular, securitizations of data centres, both as a constituent asset of CMBS transactions and corporate ABS deals, have caught the eye of buyers, say .......

    News Analysis 18 September 2020

  • Missing piece

    Lack of equity investors holding back CLO growth

    The CLO primary market is fully back to post-summer business with three new deals pricing yesterday, 10 September and a bulging pipeline either side of the Atlantic. However, the lack of equity investors is holding the sector back from greater long-term growth.

    The deals that priced yesterday brought this holiday-shortened week’s total to five already and continued the .......

    News Analysis 11 September 2020

  • Multi-level Libor exposure eyed

    Sector developments and company hires

    Multi-level Libor exposure eyed
    Japanese securitisations with exposure to Libor on multiple levels will face the highest risks in the transition away from the benchmark rate when it is phased out at end-2021, Moody's notes. Around 20% of Japanese structured finance transactions the agency rates have Libor exposure and, in some cases, there is Libor exposure through notes, as well .......

    Market Moves 9 September 2020

  • Euro CLO payment mismatch grows

    Sector developments and company hires

    Euro CLO payment mismatch grows
    The payment frequency mismatch between underlying loans and European CLOs is growing as loan issuers switch to semi-annual payments to manage risks in the Covid crisis, according to Fitch. The agency reports an increase in the share of semi-annual obligations among quarterly-paying Fitch-rated CLOs to around 50% of the portfolio balance in July 2020, from .......

    Market Moves 8 September 2020

  • Reporting template RTS published

    Sector developments and company hires

    Reporting template RTS published
    Seven Commission Delegated and Implementing Regulations comprising the technical standards in connection with the details to be made available by the originator, sponsor and SSPE in a securitisation transaction subject to the Securitisation Regulation have been published in the EU Official Journal. Publication means that the reporting templates RTS will be effective on 23 September, after .......

    Market Moves 4 September 2020

  • CMBS cure rates eyed

    Sector developments and company hires

    CMBS cure rates eyed
    August US CMBS remittance data shows declining 30-plus day delinquency rates, as consent and forbearance agreements came into force and the country reopened. Within post-GFC conduit deals, 30-plus day delinquencies fell 40bp month-on-month to 8.1%, while SASB delinquencies improved 34bp to 7.4% and CRE CLOs improved 30bp to 2.4%.

    Contributing to this improvement in delinquencies .......

    Market Moves 3 September 2020
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