CLOs

  • Euro CLOs switch

    Activity in the European CLO secondary market has switched from sporadic to fluid this week.

    "The market has become a lot more fluid over the past week or so," says one trader. "With that has come continued tightening across the capital structure in both 2.0s and 1.0s."

    The trader continues: "We've seen good two-way flows across the board. There's not .......

    SCIWire 28 July 2016

  • US CLOs to be tested

    The US CLO secondary market is continuing to rally, but will be tested by a busy BWIC schedule today.

    "The market's still running up significantly, but there is also a sense of caution at the same time," says one trader. "This wariness is directed towards the potential for a catalyst to suddenly disrupt tightening. Hence, there is also an element .......

    SCIWire 26 July 2016

  • Euro secondary slow

    The summer slowdown is manifesting itself across the bulk of the European securitisation secondary market.

    "It's been very quiet in the past few days with flows down significantly and BWIC volumes subdued," says one trader. "That's all thanks to the lack of volatility and the start of the summer lull."

    However, the trader adds: "We have seen some enquiries in UK .......

    SCIWire 26 July 2016

  • Placed issuance up

    €74.5bn of securitised product was issued in Europe in 2Q16, according to AFME's latest data snapshot. This represents an increase of 30.9% from 1Q16 (€56.9bn) and an increase of 49.3% from 2Q15 (€49.9bn).

    Of this volume, €29.1bn was publicly placed (representing 39.1%), compared to €14.3bn placed in 1Q16 (representing 25.1% of that quarter's total) and €28.4bn placed in 2Q15 (56.9%). .......

    News Round-up 22 July 2016

  • US CLOs rolling on

    The US CLO secondary market is maintaining its momentum, particularly in the middle of the stack.

    "It's been a very fast, one-way express since Brexit," says one trader. "The rally has been particularly strong in mezzanine."

    Spreads among short-dated, top tier mezz names have benefitted the most from the positive sentiment, the trader adds. "Double-Bs have spiked, and we are .......

    SCIWire 21 July 2016

  • Tortoise assists management buyout

    Tortoise Credit Strategies has assisted key Bradford & Marzec employees in completing a management buyout and has been confirmed as the successor manager of B&M CLO 2014-1. The investment decision process and core investment team at Bradford & Marzec will remain the same.

    Bradford & Marzec employees and management now own around 37% of the firm, with Tortoise investments holding .......

    Job Swaps 21 July 2016

  • Euro secondary firm

    Spreads across the European securitisation secondary market are remaining firm.

    Wider market positivity is feeding in to European ABS/MBS and generating improving market sentiment. While activity remains sporadic with volumes varying significantly from session to session spreads are flat to slightly tighter across the board this week so far.

    In CLOs, limited supply is continuing to support spreads across the .......

    SCIWire 21 July 2016

  • CLO relative value highlighted

    Respondents to JPMorgan's latest quarterly client survey view CLO relative value as more compelling than other asset classes this quarter, compared to the 2Q16 survey. Spreads have tightened, but yield compression in broader markets likely explains this result, according to CLO strategists at the bank.

    Survey respondents were also asked to assess appropriate pricing for top-tier, mid-tier and lower-tier managers .......

    News Round-up 19 July 2016

  • Euro CLOs sporadic

    Activity in the European CLO secondary market is sporadic in terms of volume and types of participant.

    "Activity is fairly strong, but it feels dealer led," says one trader. "2.0s are changing hands at quite high levels and seems like they will tighten further - so dealers are trying to get ahead of the market and position themselves now."

    However, .......

    SCIWire 19 July 2016

  • US CLOs rejuvenated

    The US CLO secondary market is continuing to exhibit strong activity after a positive start to this week.

    "The last few days have been the busiest that I've experienced since the UK's EU referendum vote," says one trader. "There have been strong bids across the entire capital structure and we are finally seeing activity return to pre-Brexit levels."

    The market's .......

    SCIWire 14 July 2016

  • Step-up tranches refinanced

    Four US CLOs - ACAS CLO 2013-2, Carlyle Global Market Strategies CLO 2014-3 and Neuberger Berman CLO XII and XVI - have been refinanced over the last two weeks. None of the refinancings were plain vanilla, with three having been driven by the desire to refinance step-up tranches.

    The most plain vanilla of the refinancings was for Neuberger Berman CLO .......

    News 14 July 2016

  • Euro secondary stays light

    Flows in the European securitisation secondary market continue to be light though sentiment remains positive.

    "It's been pretty quiet in general with little end-user activity and BWICs few and far between," says one trader. "However, everyone for choice is still a better buyer and looking for assets."

    The trader continues: "As with wider credit the tone across ABS/MBS is strong. .......

    SCIWire 14 July 2016

  • ABL vet joins middle market firm

    Monroe Capital has hired asset-based lending veteran Marc Adelson as originations md. He will join Ben Marzouk and Lee Stern in the firm's New York office.

    Adelson has more than 30 years of experience providing financing to middle market companies. He was previously cco at Medallion Financial and president of its asset-based lending business. Before that, he was ceo and .......

    Job Swaps 13 July 2016

  • US CLOs confident

    The US CLO secondary market is exhibiting a more confident tone almost three weeks on from the destabilising effect of the Brexit vote.

    "High yield has been climbing every day lately and is now approaching 105 after being at 104 yesterday," says one trader. "That's reflective of the risk-on sentiment we're seeing right now."

    The trader adds that a number .......

    SCIWire 12 July 2016

  • Euro secondary strengthens

    Supported by the wider market rally the European securitisation secondary market is strengthening and spreads are edging in.

    This week has again started with light flows, but many sectors are now back to around pre-Brexit levels as sentiment continues to improve in line with seeming greater political/central bank certainty. Once more, CLOs are leading the way in terms of both .......

    SCIWire 12 July 2016

  • Conformance period extended

    The US Fed has extended the conformance period for the Volcker Rule to 21 July 2017. While the extension was largely anticipated by market participants, the timing was later than most expected, coming only two weeks before the previous extension date expires on 21 July 2016.

    The extension allows banking entities to continue divesting ownership in legacy covered funds - .......

    News Round-up 11 July 2016

  • Brexit ratings outlook 'unchanged'

    Fitch has reassured the market that no more UK structured finance rating actions are expected in the near term following the country's vote to leave the EU. However, terms of the exit could present tail risks, including mortgages and leveraged loans experiencing longer-term underperformance.

    Fitch says that the elevation in risk premiums following the UK vote to leave the EU will weaken private .......

    News Round-up 8 July 2016

  • Global issuance trends diverging

    S&P reports that that there is a clear divide in recent structured finance issuance trends, with the US, Europe and Australia all seeing recent declines and countries such as Brazil, Argentina, China and Canada witnessing increases. The agency attributes declines in the former group to both broader volatility and a host of recent regulations governing capital charges and liquidity ratios.

    Amid strong underlying .......

    News Round-up 8 July 2016

  • CPT metric provides CLO insight

    DFG Investment Advisers had the highest collateral portfolio turnover (CPT) among US CLO managers in 2015. According to the new portfolio turnover metric from Moody's, American Money Management Corp had the lowest rate.

    Managers' CPT rates vary by month, but are largely consistent over longer periods. Moody's believes that CPT data can reveal important insights about CLO manager performance, particularly .......

    News Round-up 8 July 2016

  • Manager options outlined

    If Brexit concludes with the UK outside of the EU passporting regime, UK entities may be limited in acting as managers of and risk-retention holders for European CLOs (SCI 30 June). An informal survey of presale documents undertaken by Wells Fargo structured products analysts indicates that of the 84 outstanding 'sponsor retention' European CLOs, 51 have UK-based managers, 24 do .......

    News 6 July 2016

  • CLO equity distributions dropping

    Equity distributions for US CLOs continued their decline in 1H16, a trend that started in 2013 for 1.0 vintages. S&P says that this is due to higher funding costs and a drop in the spread of the assets held in the transactions.

    Loan prepayment levels were high in 2013, and 2014 saw a steady stream too. Because these deals are .......

    News Round-up 6 July 2016
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