CLOs

  • GSO/Blackstone tops global CLO AUM

    The top 10 US CLO managers once again accounted for around 29% of AUM in 2016 (SCI 22 February 2016), while the top 10 European managers accounted for 59%, according to Moody's latest CLO manager league tables. However, there were a few changes to the composition of the rankings over the year.

    The most notable changes in the US top .......

    News 22 February 2017

  • Ratings expansion outlined

    KBRA has named Jim Nadler ceo, with co-founder Jules Kroll stepping down from the position. The move coincides with the rating agency's plans to expand into rating European securitisations and CLOs.

    Nadler will retain the title of president, which he has held since KBRA was established in 2010, while Kroll will remain chairman. Kroll intends to spend more time on .......

    News 22 February 2017

  • Euro CLO retention strategies weighed

    Two European CLOs have priced since the US risk retention rules came into effect on 24 December (excluding refinancings) and both are structured to enable the manager to satisfy both European and US risk retention requirements. Several deals structured before the risk retention deadline and some refinanced deals priced recently have also been dual compliant.

    European transactions can remain exempt .......

    News 21 February 2017

  • Euro secondary quiet

    It was a quiet start to the week across the European securitisation secondary market thanks primarily to the US public holiday.

    As a result, little has changed - sentiment remains positive, the demand for paper is still strong and sellers are few and far between as the belief continues that it is not yet the time for extensive profit-taking. Overall, .......

    SCIWire 21 February 2017

  • US CLOs ease up

    Activity in the US CLO secondary market looks to be easing up ahead of the President's day weekend.

    In a strong start to the week in BWIC volume terms, the bottom of the stack saw some stepping off as the percentage of DNTs for equity and weaker mezz names picked up on Tuesday. However, yesterday saw a return to the .......

    SCIWire 16 February 2017

  • Refi wave puts WAS under stress

    US CLO portfolio weighted average spread (WAS) is decreasing due to the ongoing wave of refinancings across the sector. The number of CLOs failing WAS tests is rising as a result.

    If a loan held by a CLO is repriced and then the CLO rolls into the new loan, the WAS should theoretically drop. JPMorgan CLO analysts note, however, that .......

    News 15 February 2017

  • Risk retention trends emerging

    Different retention strategies have emerged for US CLOs and CMBS leading up to and since the implementation of risk retention rules on 24 December 2016, with varying benefits also arising, such as a perception of increased quality in such deals. For the broader ABS market, however, approaches are still taking shape.

    There are five main strategies for risk retention: a .......

    News Analysis 9 February 2017

  • US CLOs focus on equity

    The bottom of the stack has been the main focus for US CLO secondary market this week.

    "It's a snow day in New York today, so it could be pretty quiet with a few lists being cancelled," says one trader. "But so far this week we've seen a lot more equity than anything else - it has accounted for about .......

    SCIWire 9 February 2017

  • Euro secondary patchy

    Activity in the European securitisation secondary market continues to be patchy.

    Friday saw a relatively quiet session after a pick-up over the previous two days, but yesterday saw a flurry of activity and a couple of BWICs that traded strongly. Focus in ABS/MBS continues to surround peripheral paper, while CLOs remain most interested in lower mezz. Overall, sentiment is still .......

    SCIWire 7 February 2017

  • Healthcare reforms spur CLO concerns

    Healthcare reforms in the US could have a dramatic effect on US CLO valuations, prompting some investors to reduce their exposure to healthcare names across their CLO investments. The healthcare sector is the second largest within US CLOs, accounting for an average 11.8% exposure in post-crisis deals, meaning that President Trump's intention to replace the Affordable Healthcare Act (ACA) and .......

    News 6 February 2017

  • First Euro CLO brings innovation

    The first new issue European CLO of the year, St Paul's CLO VII, has priced. The €414m deal was arranged by Deutsche Bank for ICG, with the bank noting that a structural novelty in certain tranches enables investors to take a rates view.

    The class B3 and C2 notes of the CLO do not have Euribor floor protection to begin .......

    News Round-up 3 February 2017

  • US CLOs still strong

    The US CLO secondary market continues to see strong demand.

    "There are a lot of refis out in the market, but the bid is still strong for secondary bonds," says one trader. "At the same time, there's dealer research out there saying that the arb isn't great for new issues, so primary supply could remain limited."

    Consequently, the trader adds: .......

    SCIWire 2 February 2017

  • Securitisation prospects polled

    Fiscal policy uncertainty is the top concern cited by respondents to Morgan Stanley's 1Q17 global securitised products investor survey, accounting for 28% of the responses. Nevertheless, half of those polled expect their allocation to securitised products to stay in line with their current allocation, while 36% expect to increase their allocation, compared with 37% in 3Q16.

    The Morgan Stanley survey .......

    News 2 February 2017

  • CLOIE pay-downs pick up

    The total amount of CLOs paid down in the JPMorgan Collateralized Loan Obligation Index (CLOIE) since the December rebalance through 31 January was US$16.98bn in par outstanding, split between US$2.69bn and US$14.28bn of pre-crisis and post-crisis CLOs. The post-crisis CLOIE added US$16.3bn across 170 tranches from 38 deals at the January rebalance.

    CLOIE total returns for the month were 0.33% .......

    News Round-up 2 February 2017

  • US CLOs slow

    It looks set to be a slow couple of days in the US CLO secondary market.

    The slowdown seen at the end of last week is carrying over in to this and around month-end. BWIC volumes have dropped considerably over the past few sessions and tomorrow's schedule currently looks little different. There are still some flurries of bilateral trading, but .......

    SCIWire 31 January 2017

  • Carlyle appoints senior consultant

    The Carlyle Group has named Craig Farr as a senior consultant with the global credit group. He will help Carlyle to develop new strategic initiatives and partnerships across the group's credit platform, including structured credit and distressed credit.

    Farr was previously global head of capital markets and credit at KKR. He has also worked at Citigroup and at Salomon Brothers .......

    Job Swaps 31 January 2017

  • Academy adds structured products pair

    Academy Securities has made two additions to its structured products group, poaching Steve Kenney and Pierce Derkac from CapRok Capital. They will focus on multiple asset classes within structured products, including RMBS, CMBS, ABS, CDOs and CLOs.

    Kenney and Derkac join as svps. Kenney was a senior member of the sales and trading team within securitised products and special situations .......

    Job Swaps 31 January 2017

  • Euro secondary sluggish

    Activity across the European securitisation secondary market remains sluggish.

    After a small pick-up in activity on Wednesday and Thursday, last week closed with volumes easing and has opened this in similar fashion thanks to a combination of wider market volatility and month-end. Nevertheless, sentiment remains positive across securitisation secondary and BWICs when they do appear continue to trade strongly, which .......

    SCIWire 31 January 2017

  • Placed issuance up

    €59bn of securitised product was issued in Europe in 4Q16, an increase of 26.9% from 3Q16 (€46.5bn) and a decrease of 19% from 4Q15 (€72.8bn), according to AFME figures. Of this, €31.1bn was placed (representing 52.7%), compared to €21.5bn placed the previous quarter (46.2%) and €15.7bn placed in 4Q15 (21.6%). Placed securitisation grew by 16% in 2016, compared to 2015's .......

    News Round-up 27 January 2017

  • US CLO mezz pauses

    US CLO secondary market mezz rally is pausing for breath this week so far.

    "Superficially it's still very active with a lot of paper coming in for the bid, but the volume of non-investment grade paper is half of what it was last week," says one trader. "Investment grade guys are still buying, but below that spreads are pretty much .......

    SCIWire 26 January 2017

  • CLO 2.0s face less EOD value risk

    European CLO 2.0 transactions face less event of default-driven market value risk than CLO 1.0s, says Moody's. None of the European 2.0 deals the agency rated in 2016 have mezzanine or junior OC EOD triggers, which had been common among CLO 1.0s.

    CLO 2.0s rated by Moody's typically require exclusively the initial senior most outstanding notes' OC, rather than the .......

    News Round-up 26 January 2017
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