CLOs
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Improved tone
European and US CLO market update
A better tone in the CLO market has emerged on both sides of the Atlantic post SFIG Vegas. Mezzanine tranches, in particular, have benefitted from a tightening trend.
The CLO market ended February roughly unchanged or, in some cases, a little softer versus the end of January, one trader notes. While CLO primary activity re-emerged over the course of last .......
Market Reports 5 March 2019
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Wave of opportunity
Investors capitalised on 4Q18 volatility in US CLO market
Volatility seen in the CLO market at the end of last year provided managers and investors with a wealth of opportunities, according to panellists at SFIG Vegas this week. Unfortunately, this volatility has contributed to a more muted and challenging issuance environment so far this year.
Angie Long, cio and portfolio manager at Palmer Square, commented that 4Q18 provided a .......
News 1 March 2019
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'Long term solution needed'
Day three from SFIG Vegas
The last full day at SFIG Vegas was again abuzz with strong attendance and widespread optimism.
One panel looked at UK firms looking to issue transactions into the US market. Brian Wiele, md at Barclays, commented that one of the steps needed at the moment to boost the sector is re-educating US investors on UK securitisations, as awareness of UK .......
News 27 February 2019
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Structured finance 'well positioned' for downturn
Second day at SFIG Vegas sees continued optimism
Day two at SFIG Vegas saw a bountiful turnout of attendees, all looking to hear the latest on structured finance and to meet the main movers and shakers in the industry. A standout panel looked at how structured finance is prepared for a turn in the turn in the credit cycle, while other notable discussions looked at the revival of .......
News 26 February 2019
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CLO manager shake-up
Company hires and sector developments
Derivatives continuity
Market Moves 26 February 2019
The US CFTC and the Bank of England have issued a joint statement aimed at reassuring market participants of the continuity of derivatives trading and clearing activities between the UK and US, after the UK’s withdrawal from the EU. The measures that will be in place by end-March include: information-sharing and cooperation arrangements to support the effective cross-border .......
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A strong start
Day one at SFIG Vegas
Moods appear to be running high at the start of SFIG Vegas 2019. Despite being only a half day, attendance already seems to be strong and the panels have so far been near to full.
A highlight of the afternoon was the the CRE CLO market update, where panellists spoke to a well attended room and generally voiced positive sentiments about .......
News 25 February 2019
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Law firm boosts derivatives capability
Company hires and sector developments
CLO firm promotions
Churchill has announced the promotion of Mat Linett, md, from deputy head of underwriting and portfolio management to head of underwriting and Eric Wieczorek to md, underwriting and portfolio management. Additionally, the firm announced several more promotions across the investment and finance teams, effective 1 March 2019.
Derivatives expansion
Dentons has expanded its derivatives practice with the .......
Market Moves 22 February 2019
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Tough stance
ESMA insists on private securitisation disclosures
On 31 January, ESMA published a document that amends its draft regulatory technical standards (RTS) on securitisation disclosures. The initial RTS covers both public and private securitisations and it was rejected by the European Commission, following a market backlash (SCI 5 October 2018).
The amendments take into account the Commission’s criticisms of the original RTS ......
News Analysis 22 February 2019Premium Content
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CLO partnership launched
Sector developments and company hires
CDS trends discussed
Mayer Brown has commented on trends in single-name CDS credit event determinations. It notes that the Sears CDS case cited “numerous examples of commercial practice and legislative history in support of the decision [and] raises serious questions as to the degree to which the determination committees (DCs) are (and will in future determinations be) influenced by such .......
Market Moves 21 February 2019
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Stand-out performer
Systematic role for structured credit
Funds focused on structured credit were, as a whole, stand-out performers in 2018. Of the 50 US structured credit funds tracked by Gapstow Capital Partners, 88% had a positive year, implying that there continues to be a role for structured credit more systematically in diversified credit portfolios.
The Gapstow Credit Index finished 2018 up by 1.5%, with steady .......
News Analysis 21 February 2019
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TruPS flurry
CLO activity expected to pick up post-conference
US CLO activity is relatively quiet after a long weekend but is expected to pick up after ABS Vegas. A flurry of TruPS CDO activity is keeping traders engaged.
A trader says the TruPS CDO market is currently "by appointment only" but highlights a portfolio of PRETSL B tranches - totalling US$87m - out for the bid tomorrow (See SCI's BWIC Calendar). Investor appetite .......
News 20 February 2019
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Law firm nabs SF vet
Company hires and sector developments
Europe
Latham & Watkins has recruited Jeremiah Wagner as a partner in its finance department, based in London. Wagner’s practice focuses on advising banks, private equity funds, asset managers, insurance companies and pension funds on a variety of complex structured finance, securitisation and derivatives transactions. He joins the firm from Cadwalader’s London office, where he was a partner.
Market Moves 20 February 2019
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Lacking clarity
Libor transition still fraught with challenges
With only two years to go until Libor is officially phased out in 2021, a number of questions still remain about the ramifications for structured finance transactions. Aside from the lack of concrete replacement, there are also questions about legacy deals, assets and liabilities and swaps complications as well as the possibility for bondholder disputes.
One of the most pressing issues .......
News Analysis 19 February 2019
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CLO firm restructure
Company hires and sector developments
Acis restructuring confirmed
The US bankruptcy court in Dallas has confirmed Acis Capital Management's Chapter 11 restructuring plan, following its conversion from an involuntary bankruptcy case initiated by former head of Highland Capital Management's structured products team and founder/former partner in Acis Joshua Terry (SCI 9 November 2018). Upon emergence from bankruptcy, Acis will be owned and .......
Market Moves 19 February 2019
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AMR auction due
Caution over anchor investors, arrangers remains
The first US CLO applicable margin reset (AMR) auction on the KopenTech platform is likely to occur in February 2020, at the end of the respective deal’s non-call period and two years after the auction service provider’s launch (SCI 30 January). However, while many CLO managers recognise the value of including a low-cost, streamlined refinancing option in their .......
News 19 February 2019
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Italian auto firms fined
Company hires and sector developments
CLO hire
Geoffrey Horton has joined Barclays as vp, CLO and loan strategist in London. He was previously a CLO and commercial ABS research associate at Wells Fargo in the US.
Italian auto firms fined
The Italian Competition and Markets Authority (Autorità Garante delle Concorrenza e del Mercato or the ICA) recently fined nine captive auto finance companies a total .......
Market Moves 15 February 2019
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Bank expands credit derivatives business
Company hires and sector developments
Credit trading expansion
HSBC has hired Asgar Rahemtulla as a director in credit trading. In his new role, Asgar will be responsible for trading European iTraxx index products. He joins HSBC from Bluecrest where he was a Partner and worked as a portfolio manager. Prior to this he spent eight years at Goldman Sachs in a variety of roles including .......
Market Moves 14 February 2019
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Window of opportunity?
Japanese ruling may benefit US CLO market
The introduction of Japanese risk retention rules could provide a boost for US middle market CLOs, while volatility in Europe has opened up RMBS opportunities.
While most US middle market CLOs are risk retention compliant, most BSL CLOs are not, says a trader. They suggest that a risk retention ruling for Japanese investors might therefore “make them more likely to .......
News 13 February 2019
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Insurance firm expansion
Sector hires and company developments
Insurance firm expansion
Nassau Re is expanding into additional specialty finance asset classes as it grows assets under management in a three-pronged move. First, the firm has established Nassau Private Credit (NPC), which will invest directly in CLO equity and related investments for third-party institutional investors. Second, under its Nassau CorAmerica brand, it will expand its existing real estate .......
Market Moves 12 February 2019
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Staying selective
David Heilbrunn, senior md and head of product development,...
Q: How and when did Churchill Asset Management become involved in the securitisation market?
The Structured Credit Interview 11 February 2019
A: Churchill was established in 2006 by The Bear Stearns Merchant Bank, the private equity affiliate of Bear Stearns. At the time, I was a senior member of the firm’s CLO business and, given my experience creating and working with successful middle market loan managers, I was .......
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European middle market maturing
US MM sector set to grow following BDC no-action letter
The middle market securitisation sector is only set to grow in the US, with relaxed regulatory constraints paving the way for BDCs to securitise their exposures. While the equivalent European sector is some way behind the US, the private debt market is now regarded as a “vanilla” asset class with institutional investor buy-in, suggesting middle-market securitisations will result after further .......
News Analysis 8 February 2019