CLOs

  • 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

  • Positive returns for CLOIE

    The total amount of CLOs paid down in JPMorgan's CLOIE index since the August rebalance through 30 September was US$2.59bn in par outstanding, split between US$1.18bn and US$1.41bn of pre-crisis and post-crisis CLOs. US$6.5bn across 74 tranches from 15 deals was added to the post-crisis CLOIE segment at the August rebalance.

    All CLOIE sub-indices saw positive returns last month. The .......

    News Round-up 4 October 2016

  • Euro CLOs slumber

    Activity in the European CLO secondary market has ground to a halt.

    "Nothing has really happened in the last week or so," says one trader. "The only action of any note has been in short 1.0s and 2.0 triple-Bs."

    The momentum of the mid-September rally has disappeared thanks to external factors, the trader suggests. "Macro headlines, particularly surrounding European financials .......

    SCIWire 4 October 2016

  • Highland beefs up

    Highland Capital Management has hired Brad Eden as global head of marketing and investor relations. It is a newly created position as the firm continues to build out its international business development team.

    Eden has more than 30 years' experience in a range of institutional investment roles, including co-founding Fund Evaluation Group - an independent institutional consulting firm. He will .......

    Job Swaps 3 October 2016

  • US CLO status quo

    The US CLO secondary market is currently little moved by events surrounding it.

    "Overall, these are interesting times in the primary CLO and loan markets, but that's not feeding through into the secondary market," says one trader. "Volumes are light at the moment - it's still very much the status quo."

    The trader continues: "With the OPEC news hopefully encouraging .......

    SCIWire 29 September 2016

  • US CLOs limited

    The US CLO secondary market is yet to experience the usual post-conference volume boom.

    "Everyone's now back from ABS East, but unusually for just after a conference supply is fairly limited," says one trader. "A lot of people are hesitating and still trying to figure out where we're going from here, even though there's seems to be plenty of real .......

    SCIWire 27 September 2016

  • CLO market 'focus on technicals'

    The US CLO market is focussed on technicals, with fundamentals and credit concerns taking a back seat, according to Wells Fargo analysts. They add that the outlook for continued or increasing overseas investment in CLOs remains a primary concern.

    While many industry participants at this week's ABS East conference are bullish on Q4 spread tightening, the Wells Fargo analysts comment .......

    News Round-up 22 September 2016

  • Reported CLO WAS levels diverging

    Deal-reported weighted average spread (WAS) of collateral in European CLOs has been rising, while for US CLOs it has been falling. This has pushed WAS test cushions close to breaching for US CLOs and is expected to impact equity cash distributions.

    Unlike computed WAS, reported WAS typically includes the Libor-floor benefit. While the reported WAS in US CLOs has been .......

    News 22 September 2016

  • Dock Street brought in for CRE CDO

    Dock Street Capital Management has been named as replacement collateral administrator to JPMorgan-CIBC 2006-RR1. Under the terms of the appointment, Dock Street will now assume all responsibilities, duties and obligations of the collateral manager under the applicable terms of the collateral administration agreement.

    Moody's says there will be no rating impact, in part due to Dock Street's experience and capacity to .......

    Job Swaps 21 September 2016

  • High CLO supply

    US CLO supply last week was the highest for the year as four new issues and two refis priced for a total of US$3.61bn. The rolling four-week average of new issuance has been trending higher all year and has reached US$2.3bn.

    Year-to-date supply is US$58.9bn on 136 CLOs. According to JPMorgan figures, this includes 16 US refis at US$5.46bn. The .......

    News 20 September 2016

  • Virtus expands European arm

    Virtus Partners has made three senior hires as it expands its European activities. Dean Fletcher is hired as chief strategy officer, Dermot Caden as head of European Regulated Fund Administration and Jennifer Nolan as senior director of its Dublin arm.

    Nolan has over 15 years' industry experience, having previously worked at BNY Mellon Corporate Trust for nine years. She has .......

    Job Swaps 19 September 2016

  • Software firm acquires GFS

    SS&C Technologies has acquired Wells Fargo Global Fund Services (GFS), adding 250 employees to its business. They will serve over 130 global fund relationships and help build on the administrator's ability to handle complex asset classes.

    Both firms hope to benefit from the deal with SS&C gaining from GFS' fund administration expertise, which includes a wide range of complex strategies .......

    Job Swaps 16 September 2016

  • US CLOs easing up

    The US CLO secondary market rally is easing up ahead of next week's ABS East Conference, but activity still remains solid.

    "There's been around a 5bp tightening in the last few sessions in the triple-As to single-As, but it's slowed up a little with the Bs," says one trader. "Good names in double-Bs are hitting in and around the low .......

    SCIWire 15 September 2016

  • Euro CLOs stay active

    The European CLO secondary market is continuing to see healthy levels of activity.

    "There's been lots of secondary supply over the past week and we've seen some aggressive two-way trading in both 1.0s and 2.0s," says one trader. "However, 2.0 levels are still pretty much unchanged, though double-Bs have moved a little tighter despite the recent weakness in rates and .......

    SCIWire 15 September 2016
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