CLOs

  • AXA IM creates two key units

    Sector developments and company hires

    AXA IM restructuring
    AXA Investment Managers intends to create a new €137bn business unit - called AXA IM Alts - as part of a wider restructuring of the business into two key divisions, with the aim of creating a simplified and more focused organisation. The other new business unit would be known as AXA IM Core. Under the leadership of .......

    Market Moves 11 March 2020

  • Dutch VAT grace period mulled

    Sector developments and company hires

    Alhambra missed payment
    A borrower of a €10m loan securitised in the Alhambra SME Funding 2019-1 transaction has missed its February interest payment. The servicer says it is in “close contact” with the borrower and does not believe it is a defaulted loan, as defined in the prospectus. The borrower expects to receive funds in the coming weeks, which will .......

    Market Moves 10 March 2020

  • Virus-related volatility

    European ABS market update

    The European securitisation market appears to be being affected by coronavirus-related volatility. Spreads have widened and there seems to be reduced appetite for risk among participants, as evident from guidance on a couple of transactions being revised wider.

    For instance, PGIM has reportedly widened the guidance for the senior tranche of its Dryden 74 CLO from an initial 94bp-95bp to .......

    Market Reports 6 March 2020

  • Bulgarian micro loan guarantees inked

    Sector developments and company hires

    Bulgarian guarantees
    The EIF has signed new guarantee agreements with Unicredit Bulbank, United Bulgarian Bank and ProCredit Bank (Bulgaria) to support the fast-growing documentary finance activity in Bulgaria. Under these agreements, the three EIF partner banks will finance Bulgarian small enterprises and small mid-caps with documentary credit lines, such as letters of credit, payment guarantees, advance payment guarantees and performance .......

    Market Moves 4 March 2020

  • IRPH index ruling 'credit negative'

    Sector developments and company hires

    CMBS property sales
    KBRA has been notified of the sale of 29 properties in the Eos (ELoC No. 35) CMBS. All of the properties are located in the Netherlands and nearly all (28) are industrial assets. As a result of the sale, an amount equal to €74.3m will be applied in mandatory prepayment of the senior loan, representing 17.9% of .......

    Market Moves 3 March 2020

  • DLT litigation ABS on the cards

    Sector developments and company hires

    Acquisition
    Pretium Partners has acquired the investment management business of Latigo Partners. Latigo co-founders David Ford and David Sabath are joining Pretium as senior mds, members of the executive committee and remain as portfolio managers of Latigo’s investment vehicles. Additional investment professionals, as well as several key operational members of the Latigo team are also joining Pretium. Founded in 2005, .......

    Market Moves 2 March 2020

  • MSR subservicing transfer agreed

    Sector developments and company hires

    EMEA
    Michael Fiebig has been appointed coo at responsAbility Investments. Fiebig will be responsible for the firm’s regional offices and central functions, such as legal, finance and business technology. Previously, he was responsible for private equity investments at responsAbility.

    MSR transfer
    Ocwen Financial Corp is set to transfer the subservicing of agency loans currently subserviced by its subsidiary PHH Mortgage .......

    Market Moves 27 February 2020

  • Green ILS framework rolled out

    Sector developments and company hires

    EMEA
    Nick Holman has joined Kartesia to lead investments in the UK from the Kartesia Senior Opportunities (KSO) I fund. Holman joins Kartesia from Santander’s structured finance team, where he was a director. He will work alongside Javier Castillo, Charles-Henri Clappier and Thomas Poehler in the KSO senior team.

    Green ILS framework
    Generali has developed a ‘Green Insurance Linked Securities .......

    Market Moves 26 February 2020

  • Strong liquidity

    European CLO market update

    Liquidity continues to be strong in the European primary CLO market, with three deals pricing last week. Notably, the Carlyle Euro 2020-1 deal was upsized to €460m from €409.8m.

    "The market has been stronger over the last few weeks. There has been robust demand and managers have been able to get the liabilities away cheaply," confirms one portfolio .......

    Market Reports 25 February 2020

  • Social factors

    Positive ESG scores for post-crisis vintages

    ESG relevance scores (ESG.RS) are more likely to be negative for seasoned securitisations, according to Fitch. The most recent issuance vintages demonstrate a balance of positive and negative ESG factors.

    Weak transaction structures prior to the crisis are identified as a factor contributing to the negative ESG.RS found in those vintages. In addition, Fitch says: “Some governance issues .......

    News 24 February 2020

  • VAT switch

    European CLO managers hit with backdated bill

    Dutch tax authorities have changed their interpretation of VAT law in connection with CLO management fees, impacting an estimated 30% of European CLO SPVs. Dutch lawyers disagree with the change and are appealing the decision, but it remains unclear how long the appeal process will take and whether CLO managers will have to pay the bill in the meantime.

    News 24 February 2020

  • Minority equity interest acquired

    Sector developments and company hires

    Equity interest acquired
    Affiliated Managers Group has acquired a minority equity interest in Comvest Partners. The Comvest management team will be investing 100% of the transaction proceeds directly into future funds to support the firm’s growth initiatives. Following the transaction, the senior partners of Comvest will continue to own a significant majority of the equity of the business.

    HPI .......

    Market Moves 20 February 2020

  • Auction house

    Online AMR, BWIC matching services debut

    January was a breakthrough month for KopenTech for two reasons. Not only did the firm execute its first online applicable margin reset (AMR) auction (SCI 19 February 2019), but its BWIC matching platform also went live.

    Anthony Schexnayder, head of business development at KopenTech, says both services are designed to facilitate liquidity and transparency across the .......

    News Analysis 19 February 2020

  • Manager discretion

    Direct lending securitisations on the rise

    A growing number of direct lending funds are raising debt via securitisation of their shares. A carefully considered approach is needed when assessing the credit risk of such debt, however, given the large discretion managers have to build highly non-granular investment portfolios.

    Traditionally, direct lending funds have issued shares with equity-type properties to raise financing. But recent regulations .......

    News 19 February 2020

  • Ares co-founder steps down from board

    Sector developments and company hires

    North America
    Ares Management Corporation has appointed Kipp deVeer to its board. Concurrently, John Kissick - a retired co-founder of Ares - is stepping down from the board. DeVeer, who joined the firm in 2004, is a partner and head of the Ares Credit Group. He serves as a member of the Ares executive management committee and the firm’s management .......

    Market Moves 17 February 2020

  • ArrowMark acquires investment platform

    Sector developments and company hires

    Acquisition
    ArrowMark Partners     has acquired the bank investment platform and assets of StoneCastle Asset Management. As a closing condition of the transaction, stockholders approved a new investment management agreement between the company and StoneCastle-ArrowMark Asset Management - a subsidiary of ArrowMark - and elected eight directors, constituting its board. Sanjai Bhonsle has been elected as the company’s ceo and chairman.  .......

    Market Moves 14 February 2020

  • CRT upgraded due to 'substantial' increase in CE

    Sector developments and company hires

    Canadian MBS ETF
    BMO Asset Management has launched a new stable of ETFs trading on the TSX, including the first MBS ETF in Canada. Dubbed BMO Canadian MBS Index ETF, the offering aims to provide unique exposure to a segment of the MBS market fully guaranteed by the Canada Mortgage and Housing Corporation (CMHC). The pools each have a term .......

    Market Moves 12 February 2020

  • Equity issue

    Loan repricing expectations weigh heavy on CLOs

    The widely expected wave of loan repricing is weighing heavily on the CLO market. Equity investors and managers alike are having to face up to harder times ahead.

    “Loan repricing matters a lot in equity, but it’s not a huge issue further up the stack,” says Craig Bergstrom, managing partner and cio at Corbin Capital. “It’s potentially negative .......

    News Analysis 11 February 2020

  • CMBS trustee assumption refuted

    Sector developments and company hires

    EMEA
    Michael Newell has joined Cadwalader, Wickersham & Taft as a partner in London. A member of INREV’s Public Affairs Committee, Newell was previously a partner at Norton Rose Fulbright. His focus is the formation of real asset funds, credit funds and hedge funds, as well as technology and emerging market focused private equity funds.

    North America
    KBRA has named .......

    Market Moves 10 February 2020

  • GSE Libor transition deadlines released

    Sector developments and company hires

    ECOWAS prepping ABS
    The Commission of the of the Economic Community of West African States (ECOWAS) and the World Bank are developing a securitisation of payments related to the cross-border power trade in West Africa. In order to address the low access of the West African population to electricity, ECOWAS member states are pooling efforts through the development of an .......

    Market Moves 6 February 2020

  • Rating agency shuffles senior US staff

    Sector developments and company hires

    EMEA
    Pan-European special situations and credit trading lawyer Justin Conway has joined McCarthy Denning as a partner in its banking and finance department. Conway, a dual-qualified solicitor in both England and Wales and New Zealand, was previously a partner at Jones Day. He has extensive experience in advising clients on all aspects of debt, investment and loan portfolio trading across key .......

    Market Moves 5 February 2020
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