CLOs

  • Antares returns with first 2.0 CLO

    Antares Capital Advisers is in the market with its first 2.0 CLO transaction, Antares CLO 2017-1 (see SCI's deal pipeline), its first deal in more than a decade. The transaction is a cashflow SME CLO provisionally sized at US$1.8bn and backed by middle-market speculative-grade senior secured term loans.

    The US$1.035bn A class notes have been rated at Aaa .......

    News 18 April 2017

  • CLO refi value explored

    US CLO triple-A investors should target longer refis from larger managers due to the relatively steep term premium, argue Wells Fargo analysts. Investors hoping to add yield should bear in mind that single-A and triple-B tranches have been most compensated for a move down in attachment point or market value overcollateralisation.

    March refi and new issue pricing data shows CLO .......

    News 13 April 2017

  • Floating-rate ABS lacks support for growth

    Lack of demand will likely limit the growth of floating-rate ABS and CMBS in the US, despite rising interest rates. Investors may instead hedge against interest rate exposure or invest in floating-rate products with a long performance history, such as corporate CLOs.

    Fitch recently suggested that floating-rate CMBS conduits may re-emerge in the US due to rising interest rates and .......

    News Analysis 13 April 2017

  • US CLOs slow

    The US CLO secondary market is slowing down ahead of the Easter holidays.

    "It was always going to be a pretty slow week given the early finish on Thursday and Friday's close," says one trader. "But there really is very little to report."

    In addition, secondary is still hampered by so many bonds being above par, the trader notes. "Yields .......

    SCIWire 11 April 2017

  • Euro secondary ebbs and flows

    Activity in the European securitisation secondary market continues to ebb and flow.

    Trading patterns continue unchanged across ABS/MBS and CLO sectors - from time to time volumes begin to build before dissipating once again amid positive market sentiment. Last week reflected that as activity fizzled out towards the end of the week, while yesterday saw a flurry of auctions and .......

    SCIWire 11 April 2017

  • Investors 'less bullish', despite record volumes

    Global CLO supply last week hit a weekly record by count and volume for priced deals, with 29 printing at US$13.23bn-equivalent. Against this backdrop, however, JPMorgan's latest CLO survey suggests that investors are the least bullish on the sector for two years.

    Last week's total of CLOs comprised five US new issue and 21 US refinancings/resets, while in Europe there .......

    News 10 April 2017

  • Job swaps round-up - 7 April

    North America

    KeyBanc Capital Markets has hired Chris O'Neill and Jeffrey Tucker to its securitised products team. O'Neill will act as md and Tucker as director and both will report to Keith Newman and Michael Corsi, co-heads of securitised products. O'Neill was previously md at RBC, focusing on non-agency and agency MBS and ABS. Tucker was previously director in the .......

    Job Swaps 7 April 2017

  • US CLOs still strong

    US CLO secondary market tone remains strong amid lacklustre volumes.

    "Overall supply hasn't ticked up too much this week given that it's a new quarter," says one trader. "BWIC and TRACE volumes are fairly light and there's not much in the way of new issuance either so far."

    The trader continues: "The market remains strong - as soon as paper .......

    SCIWire 6 April 2017

  • Euro secondary restarts

    The turn of the quarter has restarted activity in the European securitisation secondary market.

    Flows and BWIC supply are picking up across the board this week. So far execution levels remain strong as long-standing pent up demand gets some release.

    As a result, secondary spreads remain firm amid positive market sentiment. However, the growing secondary and primary calendars are yet .......

    SCIWire 4 April 2017

  • Job swaps round-up - 31 March

    EMEA

    EJF Capital is to float its closed-ended investment fund on the London Stock Exchange. Dubbed EJF Investments, it will aim to invest in long-term, cashflow generating assets in three identified target investment areas - risk retention, capital solutions, ABS and specialty finance. Liberum Capital is acting as financial advisor on the admission and it's expected that dealings in the .......

    Job Swaps 31 March 2017

  • US CLOs surge

    Activity in the US CLO secondary market has surged this week.

    "There's been something of a quarter-end surge," says one trader. "BWIC activity has picked up over the last few days to recalibrate pricing and clean-up positions."

    The trader continues: "It's been mostly mezz in for the bid and everything continues to trade well especially 2012-2014 deals. Spreads haven't moved .......

    SCIWire 30 March 2017

  • US CLOs sporadic

    Activity in the US CLO secondary continues to be patchy.

    "We're now just seeing sporadic buying and selling," says one trader. "Even though it's quarter-end so people are anxious to get stuff done and there's plenty of money out there, investors are finding there isn't much value to be had."

    The trader continues: "At current levels no one wants to .......

    SCIWire 28 March 2017

  • Euro, US CLO diversity compared

    European CLO collateral pools have better average ratings, measured as lower WARF scores, and slightly lower weighted average coupons compared to US CLOs. However, European CLOs are smaller and lack liquidity compared to US CLOs, according to Morgan Stanley's European CLO factbook.

    European CLOs are generally smaller than US CLOs, at €582m on average, while the median average loan facility .......

    News 28 March 2017

  • Euro secondary unmoved

    The European securitisation secondary market remains unmoved by wider market volatility.

    The see-saw in equities and broader credit over the past two sessions has not been reflected in secondary spreads, which continue to hold firm. Indeed, sentiment remains positive and demand continues to outstrip supply.

    Nevertheless, activity overall remains light with only some rotation activity and patchy flows in key .......

    SCIWire 28 March 2017

  • Job swaps round-up - 24 March

    North America

    Alcentra has hired Brandon Chao as svp in New York, joining from Omega Advisors, where he was a senior analyst for structured products and corporate credit. He will report to the firm's global head of structured credit, Hiram Hamilton, who is relocating to the New York office in April. Hamilton was previously executive director and head of the .......

    Job Swaps 24 March 2017

  • Risk transfer round-up - 24 March

    Deutsche Bank is believed to have priced its CRAFT CLO 2017-1 capital relief trade this week (SCI 17 March), with market sources suggesting that the deal met with "good appetite from investors". The US$357m transaction printed at Libor plus 10.75%, having been upsized from US$200m on strong demand.

    .......

    News 24 March 2017

  • Euro CLOs mixed

    Tone and spreads remain strong in the European CLO secondary market, but activity levels are still down.

    "It's a weird market at the moment - it feels quiet, but we are still trading," says one trader. "Clip sizes have gone up so volumes are growing, but the number of trades has gone down. At the same time, a large chunk .......

    SCIWire 23 March 2017

  • Bespoke analysis needed for US retail

    Although some US retailers continue to underperform, investors should be wary of taking a wholly negative view on the sector, according to Morgan Stanley CLO analysts. They point out that with broadly strong US retail sales and growing personal income, problems lie only in certain subsectors within the segment.

    The Morgan Stanley analysts note that retail continues to play a .......

    News 22 March 2017

  • US CLOs solid

    The US CLO secondary market remains solid as momentum rebuilds following last week's interrupted activity.

    "It's still not incredibly busy, but it's an interesting market and bonds are trading," says one trader. "There are no truly big buyers right now, though there aren't any major concerns about fundamentals."

    Mezz remains the most active part of the stack, but price moves .......

    SCIWire 21 March 2017

  • Term curve dislocations 'provide opportunities'

    Carlyle recently priced what is believed to be the first post-crisis US CLO to feature a six-year reinvestment period - the US$612m Carlyle US CLO 2017-1. As the new issue CLO term curve evolves, JPMorgan CLO analysts suggest that investor market segmentation provides opportunities to add alpha when the term curve becomes mispriced.

    "In theory, bonds with longer reinvestment periods .......

    News 21 March 2017

  • Euro secondary ticks over

    The European securitisation secondary market continues to tick over.

    Activity remains patchy across the board with sporadic BWICs and light bilateral volumes. Further distraction has emerged with a handful of new ABS, CLO and RMBS deals now actively marketing, but overall tone is still positive and secondary spreads continue to hold in or tighten.

    The past couple of sessions remained centred .......

    SCIWire 21 March 2017
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