CLOs

  • Tikehau takes over senior debt funds

    Tikehau Capital has reached an agreement with Lyxor UK to manage the investments of Lyxor's European senior debt funds. The deal will allow Tikehau to expand its leveraged loans and CLO business from €1.9bn AUM to €2.6bn.

    Tikehau will replace Lyxor as investment manager of Lyxor's four European senior debt funds, while Lyxor's European senior debt operational team will join .......

    Job Swaps 25 October 2016

  • Euro secondary starts slow

    It was a slow start to the week in the European securitisation secondary market, but a large CDO liquidation should generate some interest today.

    Yesterday was quiet across the board thanks to an element of supply fatigue as the well-established pattern of primary focus linked to flurries of BWICs continued into the end of last week and was met with .......

    SCIWire 25 October 2016

  • US CLO supply spike

    There is a spike in supply in the US CLO secondary market today.

    "It's a busy day today with a few more BWICs than we've seen in recent days," says one trader. "There's plenty of mezz and equity in for the bid and that'll provide a lot of data points on the follow."

    The pick-up in secondary supply is no .......

    SCIWire 20 October 2016

  • Refinancing activity accelerates

    US CLO refinancing volume has shot up this month, impacting 14 deals for a total value of US$6.2bn so far, versus US$3.7bn seen during the whole of September. The increase in activity has created a clear term structure at the triple-A level.

    Deutsche Bank CLO analysts note that for refinancing CLOs at or near the end of their reinvestment periods, .......

    News 20 October 2016

  • Fresh CLO credit deterioration

    CLO credit quality deteriorated in July across all cohorts, having stabilised in the spring and early summer, says Moody's. This deterioration was particularly pronounced for US CLO 1.0 deals.

    The median WARF for US CLO 1.0s increased from 2527 to 2575, while the median WARF for US CLO 2.0s increased seven points to 2852. European CLO 1.0s' median WARF also .......

    News Round-up 20 October 2016

  • BDC performance picks up

    With the exception of the oil and gas sector, US middle market performance continues to improve and optimism across the sector strengthen, which DBRS considers as positive for BDCs. Issuance of new middle market loans in 1H16 was subdued, however, as M&A activity was moderate and wider pricing kept many middle market companies on the sideline.

    Concerns about energy exposure, .......

    News Round-up 20 October 2016

  • Euro secondary unmoved

    The European securitisation secondary market remains unmoved by continuing strong new issue volumes.

    The primary market is still attracting the majority of focus, but secondary continues to tick over with pockets of trading throughout euro and sterling ABS, CLOs and MBS. An overall slight buying bias is ensuring that tone remains positive and secondary spreads are unchanged across the board .......

    SCIWire 20 October 2016

  • US CLOs stay firm

    The US CLO secondary market is staying firm despite strong primary activity.

    "The market is holding up pretty well in the face heavy new issuance," says one trader. "Some are saying they expect new issuance to eventually win out and push spreads wider, but we've certainly not seen that yet with volumes being absorbed reasonably well."

    The trader continues: "The .......

    SCIWire 18 October 2016

  • Asset manager adds credit vet

    Medley Management has appointed David Richards as an md and portfolio manager of its Sierra Total Return Fund. He will be based in New York.

    Richards is a member of the board at American Capital and serves on its executive, audit and strategic review committees. He was previously a portfolio manager at Pine River Capital Management and has also worked .......

    Job Swaps 18 October 2016

  • Tikehau creates new job role

    Tikehau Capital has appointed Henri Marcoux to the new position of deputy md. He will be based in Paris and report to Antoine Flamarion and Mathieu Chabran.

    Marcoux will supervise and coordinate the corporate and finance functions within Tikehau Capital, which currently manages €8.7bn invested in all asset classes. He has 21 years of experience in audit and financial management, .......

    Job Swaps 18 October 2016

  • Euro secondary patterns persist

    Trading patterns in the European securitisation secondary market seen towards the end of last week are continuing into this.

    The primary market remains the main focus, but flurries of BWICs continue to bolster secondary activity. A few DNTs aside, line items in all sectors and parts of the capital structure continue to trade well. Despite some skittishness in broader markets secondary .......

    SCIWire 18 October 2016

  • Middle market pro recruited

    Churchill Asset Management has recruited Leland Richards as an md. He will report to Randy Schwimmer, senior md and head of origination and capital markets.

    Richards joins Churchill with more than 15 years of experience in middle market finance and strong relationships with leading middle market private equity firms and lenders. He previously worked at GE Capital, where he served .......

    Job Swaps 17 October 2016

  • CLO vet poached

    Brian Horton has joined Onex Credit as a portfolio manager. He will work with fellow portfolio manager Paul Travers to continue growing the firm's CLO platform.

    Horton was previously md, portfolio manager at Covenant Credit Partners. Before that, he was svp, senior portfolio manager at ING Investment Management.

    .......

    Job Swaps 12 October 2016

  • Euro secondary solid

    The European securitisation secondary market remains solid in the face of strong supply.

    Yesterday was relatively slow thanks to the US public holiday, but last week was busy up until with Friday's close as BWICs across ABS/MBS and CLOs continued to emerge as investors sought to make room for the current hefty amount of new issuance. With much of the .......

    SCIWire 11 October 2016

  • Combo note criteria updated

    Moody's has updated its methodology for rating securities backed by both secured debt and equity tranches of CLOs, following a request for comment on its proposals (SCI 2 August). The updated methodology aims to account for the risks associated with a potential refinancing of the CLO secured debt tranches in such securities and will result in the ratings of a .......

    News Round-up 10 October 2016

  • Spread divergence highlighted

    Moody's reports that three-quarters of the 2006-2007 vintage CLOs it rates have junior note coupons that exceed their portfolio WAS. Further, current OC levels for seven of these transactions are not high enough to significantly reduce the risk of future interest coverage test failures, given the expected fall in WAS-WAC difference and the performance of the underlying portfolios.

    CLO junior .......

    News Round-up 7 October 2016

  • CLO expertise added

    Amherst Pierpont Securities has hired Erez Biala as md and head of structured credit trading and origination. He is tasked with establishing the firm's structured credit trading and origination platform and will lead its efforts to capitalise on current market opportunities in the CLO and related structured credit markets.

    In particular, Biala will be responsible for growing Amherst Pierpont's presence .......

    Job Swaps 7 October 2016

  • US CLOs patchy

    Volumes have been patchy in the US CLO secondary market this week.

    "Yesterday there were a decent amount of BWICs and they traded well," says one trader. "Today is back to being pretty quiet again as it was earlier in the week."

    Quieter days are a result of no more than participants taking pause after the active summer and strong .......

    SCIWire 6 October 2016

  • Risk retention preparedness polled

    With the US risk retention effective date just under three months away, JPMorgan CLO analysts say they have uncovered some industry progress in their latest CLO client survey, but more is needed. They note that the majority of respondents (71%) agree that less than half of US CLO managers appear to have a clearly defined risk retention strategy.

    Only 2% .......

    News 5 October 2016

  • CLO shop formed

    Eagle Point Credit Management, GreensLedge Holdings and Sumitomo Mitsui Trust Bank have jointly established Marble Point Credit Management, a new credit service provider and investment platform focused on the US CLO market. The aim is to provide a 'one stop shop' for all services required in the CLO issuance process by leveraging each party's expertise and functions.

    The three firms .......

    Job Swaps 5 October 2016

  • US CLO shift

    Attention has shifted away from the US CLO secondary market.

    "The market is very quiet right now," says one trader. "We are seeing a lot of activity in the re-set/refinancing/new issue space and secondary is having to take a back-seat to that."

    At the same time, the trader reports: "There are a lot of bonds sitting on dealer inventory that .......

    SCIWire 4 October 2016
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