CLOs

  • Keeping it private

    Public European middle market CLOs are struggling, but private deals are booming

    The success of middle market CLOs in the US and the ever-present search for yield has led to much talk about the European market following suit. However, the European middle market is much smaller than its US counterpart and has different hurdles to overcome. Consequently, public deals such as Alhambra SME Funding 2018-1 (SCI 18 December 2018) have .......

    News Analysis 6 August 2019

  • CLO head hired

    Sector developments and company hires

    BUMF 6 injunctions granted

    Final injunctions have been granted against Greencoat Investments (GIL) (including against its directors, which include Clifden IOM No.1, Rizwan Hussain, Rajnish Kalia and Alfred Oyekoya), Greencoat Holdings (GHL), Portfolio Logistics (PLL), Patrick Anthony FitzSimons, Maria Stoica and Oyekoya in connection with Business Mortgage Finance 6 (SCI 17 July). A court order has also .......

    Market Moves 2 August 2019

  • Performance model revealed

    Innovative approach highlights smaller manager outperformance

    Smaller, less well-known CLO managers often outperform their larger competitors, a new analytical model has revealed. The innovative approach utilises a mutual-fund-like analysis and the S&P LSTA index to assess manager performance and potentially bring greater clarity to performance trends.

    Traditionally, assessing CLO manager performance has involved using certain metrics to look at the underlying pool of loans in a .......

    News Analysis 2 August 2019

  • Dual-tranche deal finalised

    Standard Chartered targets wide distribution

    Standard Chartered has completed a dual-tranche capital relief trade that references an undisclosed US$2bn portfolio of corporate loans from the UK, Dubai, India and Africa. Dubbed Gongga CLO, the transaction is the bank’s second application of the dual-tranche technique (SCI 14 November 2018) and it is set to continue utilising a wide distribution strategy.   

    The transaction is split .......

    News 2 August 2019

  • Affordable loan credit insurance risk transfer closed

    Sector developments and company hires

    Affordable CIRT closed

    Fannie Mae has executed a new credit insurance risk transfer (CIRT) transaction that, for the first time, covers a pool of primarily single-family affordable loans. These covered loans are delivered to Fannie Mae with a short-term lender repurchase obligation, provided primarily by state housing finance agencies, which serves as the initial loan credit enhancement. Dubbed CIRT LR .......

    Market Moves 31 July 2019

  • New podcast now live

    The operational steps to setting up a CRT and more...

    In this week's podcast, the team discuss the operational steps taken when putting together a capital relief trade, as well as some of the concerns surrounding disclosure requirements in securitisation and capital relief trades. It then rounds off with an insight into the recent securitisation from impact investor, ResponsAbility, which helps fund small businesses in emerging markets, throughout the globe.

    News 31 July 2019

  • Winding up order issued for Clifden

    Company hires and sector developments

    Clifden wind up

    A winding-up order has been issued by the High Court of Justice of the Isle of Man, Chancery Division in respect of Clifden IOM No.1 and PricewaterhouseCoopers has been appointed official receiver of the firm. The move follows a Part 8 claim issued by Clifden, naming RMAC No. 1 series 2006-NS1, 2006-NS2, 2006-NS3, 2006-NS4 and 2007-NS1 .......

    Market Moves 29 July 2019

  • Closer look

    US CRE CLOs are booming, but caution is advised

    A landmark US CRE CLO is currently marketing and grabbing investors’ attention. Away from the deal, some aspects of the sector’s rapid growth are ripe for greater scrutiny.

    STWD 2019-FL1 is being brought by Wells Fargo, BAML and Citi and is targeting pricing before month-end. If it goes through as hoped, at US$1.1bn it will be the largest ever CRE .......

    News Analysis 29 July 2019

  • BMO SRT launched

    BMO expands mid-market exposure

    Bank of Montreal (BMO) has completed a five-year financial guarantee that references US and Canadian senior secured and unsecured corporate loans. Dubbed Manitoulin USD Algonquin 2019-1, the transaction differs from previous Manitoulin deals due to the additional numbers of mid-sized corporate borrowers in the portfolio.   

    The risk transfer trade features a replenishment period and complies with risk retention rules. .......

    News 26 July 2019

  • Mortgage firm completes residuals sale

    Company hires and sector developments

    Residual sale

    Charter Mortgages is set to sell its residual economic interest in the Precise Mortgage Funding 2019-1B RMBS to JPMorgan - which managed the sale process and purchased the RC2 certificates for onward sale - for a cash consideration of £6.2m. The transaction is expected to complete on 31July and will generate a pre-tax gain of £28.8m and a .......

    Market Moves 26 July 2019

  • Ratings efficiency

    NAIC decision to boost CLO of one volumes?

    CLO of one activity is rising, as direct lenders seek to broaden their syndication channels and insurers put money to work in ratings-efficient investments. NAIC’s recent move to no longer accept certain private fund ratings could further boost volumes.

    The ‘CLO of one’ phenomenon is driven by ratings-sensitive investors and direct lenders seeking to package direct lending funds .......

    News Analysis 26 July 2019

  • Esoteric ABS head announced

    Sector developments and company hires

    Esoteric ABS head named

    MUFG has hired Keith Allman as md and head of esoteric ABS, effective August 14 and he will be responsible for the coverage of all US esoteric ABS assets. Allman brings 17 years of structured-finance and aviation experience as a banker at Deutsche Bank and Citigroup, and most recently as an investor at Loomis Sayles & .......

    Market Moves 23 July 2019

  • ABS head named

    Company hires and sector developments

    Euro ABS head appointed

    Santander has hired Francesco Dissera as head of continential Europe, securitisation, based out of Milan. He was previously md and partner, head of structuring and advisory at StormHarbour.

    PM appoitment duoble

    Man GLG has hired Patrick Kenney and Santiago Pardo as portfolio managers to its credit business in London. Prior to this, Pardo worked in credit .......

    Market Moves 22 July 2019

  • Co-ceo named

    Sector developments and company hires

    Co-ceo named

    Värde Partners has named Ilfryn Carstairs as co-ceo, alongside co-founder George Hicks, effective from 1 January 2020. Hicks intends to transition to an executive chair role in 2022. Carstairs will retain his role as partner and global cio, overseeing the firm’s global investment strategy and co-chairing its investment committee. Based in Singapore since 2017, he joined Värde Partners .......

    Market Moves 19 July 2019

  • Additional resources for disclosure published

    Sector developments and company hires

    Agri-investing appointment

    Arable Capital Partners has appointed Matt Reus a vp in the Bellevue, Washington office. He is responsible for transactional work and due diligence on acquisitions, financial analysis, portfolio management and assisting in overall investment strategy. Reus has 12 years of direct investment, investment banking and fixed income experience, including with securitisation transactions. He was previously with Cascadia Capital .......

    Market Moves 18 July 2019

  • Bank fined over MBS trading failures

    Company hires and sector developments

    Agency heads announced

    Morningstar Credit Ratings (MCR) has named Erin Stafford as head of the combined DBRS/MCR North American CMBS group and Quincy Tang as head of the combined US RMBS group, having both served in similar positions at DBRS. The pair will report to Claire Mezzanotte, who will be the head of global structured finance following the .......

    Market Moves 17 July 2019

  • US CLOs slow down

    US CLO market update

    Activity is easing up across the US CLO market driven by both macro and seasonal factors.

    “In general new issue pricing is spotty – prices are really moving around,” says one trader. “It seems like there are places in the capital structure and with certain issuers where the underwriters are having trouble finding buyers. At the same time, .......

    Market Reports 17 July 2019

  • Simulation solution?

    Monte Carlo methodology utilised in effort to more accurately value CLO reset options

    New research takes a fresh approach to the longstanding issue of valuing call options in US CLOs. In particular, it aims to make the problem more tractable in the increasingly complex case of reset options.

    The report from the North America securitised products strategy team at Morgan Stanley Research explains: “The economics of the call option have evolved .......

    News 16 July 2019

  • Fund founder guilty of fraud

    Company hires and sector developments

    African solar plan approved

    The African Development Bank Group has approved an innovative multinational financing programme for Distributed Energy Service Companies (DESCOs), which would see 900,000 households in sub-Saharan Africa – about 4.5 million people - gain access to solar power by 2025.

    The DESCOs Financing Program promotes securitisation financing techniques to address barriers to accessing finance for DESCOs, while .......

    Market Moves 15 July 2019

  • Green investment partnership launched

    Company hires and sector developments

    Green investment

    Amundi and the EIB have signed a partnership to launch the Green Credit Continuum investment programme, which is designed to foster the development of the green debt market beyond the existing green bonds, supporting small-scale green projects and financing SMEs and mid-caps. The agreement has three components: a diversified fund will invest in green high yield corporate bonds, .......

    News 12 July 2019

  • Investment chief appointed

    Sector developments and company hires

    Business Mortgage Finance 6 update

    Business Mortgage Finance 6, the issuer, has informed noteholders that on 4 July 2019 it issued a claim against the Issuer issued a claim against the following defendants in the High Court of Justice in London: Greencoat Investments, Greencoat Holdings Limited, Portfolio Logistics Limited, Alfred Oyekoya, Patrick FitzSimons and Maria Stoica. The claim seeks declarations .......

    Market Moves 10 July 2019
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