CLOs

  • US CLOs seek clarity

    The US CLO secondary market is still struggling for price clarity.

    "We are seeing some secondary trading, but certainly not a lot of colour from it," says one trader. "Also, a few new deals are supposedly due to price this week, but it's getting late for that to happen. So, overall, the CLO market is struggling for definition."

    Nevertheless, there .......

    SCIWire 28 January 2016

  • Euro secondary keeps positive

    The European securitisation secondary market is holding on to the positive tone of the past few sessions.

    "Sentiment was a bit better again yesterday, flows in general are improving and prices are going higher on- and off-BWIC," says one trader. "With little primary activity technicals are supportive of secondary, so while global credit remains relatively stable that positive trend could .......

    SCIWire 28 January 2016

  • CLO 2.0 refinancing on agenda

    Moody's notes that a number of European CLO 2.0 tranches exiting their non-call periods are eligible for refinancing or repricing in 2016, including 30 2014 vintage deals and six 2013 vintage deals that exited their non-call periods in 2015. The agency says that refinancing at lower coupons would improve credit enhancement by increasing excess spread and reducing liability costs on the .......

    News Round-up 27 January 2016

  • Euro secondary on the up

    Activity and pricing levels are on the up in some sectors of the European securitisation secondary market.

    Growing positivity in broader markets yesterday helped to stimulate activity across a wider range of ABS/MBS sectors than seen in recent days. Prime assets remain the main focus, with autos and Dutch RMBS, especially STORM paper, being the biggest beneficiaries of buying interest .......

    SCIWire 27 January 2016

  • US CLO surge

    The US CLO secondary market is set for a surge in activity today, but wider market volatility may hamper it.

    "We're starting to see a bit more activity and there are a decent amount of bid lists out today compared to the past week," says one trader. "Though futures are down again this morning, which won't help."

    At the same time, .......

    SCIWire 26 January 2016

  • Energy stress surging

    The beginning of 2016 has seen a number of stressed loan issuers - particularly in the oil and gas sector - moving closer to potential default. Wells Fargo CLO strategists highlight five recently troubled names, which account for US$1.4bn in US CLO collateral, or 0.33% of the outstanding US CLO universe.

    Earlier this month, Southcross Energy Partners - which represents .......

    News 26 January 2016

  • Euro secondary similar

    Patterns in the European securitisation secondary market remain similar despite the continuing volatility in wider markets.

    "It's still pretty quiet and trends are pretty much the same," says one trader. "Broader markets are down again this morning, but little has changed in our space."

    The trader continues: "The senior prime sector is still fine and continues to grind tighter. Meanwhile, there .......

    SCIWire 26 January 2016

  • Euro secondary strengthens

    Tone in the European securitisation secondary market continued to strengthen into the last week's close on the back of positive wider markets.

    Once again, senior prime assets were the main focus on Friday, albeit with patchy and thin flows on- and off-BWIC. Secondary spreads in autos and UK RMBS held steady, but Dutch RMBS edged a little wider following the .......

    SCIWire 25 January 2016

  • STS securitisation supported

    The European Economic and Social Committee (EESC) has added its voice to calls for the introduction of a simple, transparent and standardised (STS) securitisation regime in Europe. It says securitisation can still be a secure system and can create growth through the unlocking of additional credit.

    "The risks involved in such transactions should now be clearly understood and responsibilities well .......

    News Round-up 22 January 2016

  • Euro secondary improves

    Better wider markets have improved European securitisation secondary tone once more.

    A combination of a return to form in stocks/broader credit, the ECB press conference and the successful execution of the Spanish OWIC boosted the secondary market across the board yesterday and that has continued into this morning. Nevertheless, it is only the prime and ECB-eligible peripheral sectors that are .......

    SCIWire 22 January 2016

  • EBA consults on 'implicit support'

    The EBA has launched a consultation regarding its guidelines on implicit support for securitisation transactions. The guidelines were drafted to provide clarity on what constitutes 'arm's length conditions' and when a transaction is not structured to provide support for securitisations.

    The capital requirements regulation (CRR) foresees restrictions on implicit support to securitisations due to significant supervisory concerns and the belief .......

    News Round-up 21 January 2016

  • Euro CLOs suffer

    The European CLO secondary market is suffering under heavy selling pressure.

    "Activity is almost entirely driven by selling from accounts," says one trader. "The only demand we are seeing is for short-dated bonds and there is none whatsoever for 2.0 paper."

    Consequently, the trader continues: "We're seeing BWIC after BWIC in the 2.0 space. However, we're seeing no colour from .......

    SCIWire 21 January 2016

  • Manager invests in structured experience

    Alberta Investment Management Corporation (AIMCo) has strengthened its relationship with DFG Investment Advisers through the acquisition of a minority ownership stake in the asset manager's holding company. DFG's expertise is in structured credit and leveraged corporate debt markets and has an institutional client base in North America and Asia.

    .......

    Job Swaps 21 January 2016

  • US CLOs light

    The holiday-shortened week has not produced the usual boost to activity and volumes in US CLO secondary market continue to be light.

    "Especially with the lack of primary activity you'd expect an uptick in secondary, but total visible BWIC volume is light," says one trader. "Prices are falling, which is making sellers reluctant, but month-end is coming and that will only .......

    SCIWire 20 January 2016

  • CLO issuance set to drop

    The pace of new US CLOs coming to market could be set to decline as looming risk retention takes a stranglehold, according to Fitch. The rating agency's observation comes despite a December flurry which saw 15 new deals.

    However, new issuance overall for 2015 was down from the previous year, at US$93.1bn in 2015 from US$116.2bn in 2014. There are also fewer .......

    News Round-up 20 January 2016

  • Euro secondary story unchanged

    Yesterday's improvement in broader markets did not change the story in the European securitisation secondary market and this morning's macro weakness is likely to keep it that way.

    "Yesterday things were a bit better overall and credit indices came in some way," says one trader. "However, little changed in our sector."

    Instead, recent trends continue, the trader says. "Senior prime .......

    SCIWire 20 January 2016

  • Swaps allow for higher ratings

    Cross-currency swaps that mitigate the effect of foreign exchange controls have enabled Moody's to assign ratings above the applicable foreign currency bond ceilings to foreign currency-denominated securitisation transactions, says the rating agency. Without these features such ratings would not be attainable.

    "To mitigate the transferability and convertibility restrictions, an offshore swap counterparty typically receives local currency payments from an onshore .......

    News Round-up 19 January 2016

  • CLO structural tweaks emerging

    Moody's expects more multi-currency deals to emerge within the European CLO market in 2016, with sterling-denominated exposures becoming the preference. The agency also predicts that new CLO structures overall will adapt to market changes in a strong fashion.

    For example, many of the new structures will share similar characteristics to their 2015 counterparts, with subordination likely to remain around 41% - .......

    News Round-up 19 January 2016

  • Euro secondary hesitant

    It was an unsurprisingly quiet day yesterday in the European securitisation secondary market as participants appear hesitant to return to the fray.

    As a result of the US holiday and continuing broader market volatility it was a quiet session yesterday even for a Monday. Many investors remained sidelined and appear to be waiting for some signs of broader credit stability .......

    SCIWire 19 January 2016

  • Mid-market platform bolstered

    Kayne Anderson Capital Advisors has hired James Hunt as managing partner and ceo of its middle market credit platform. He will lead this arm of the asset manager as it continues to provide debt capital solutions to mid-market clientele with first and second lien secured debt, last-out financing, unitranche and mezzanine financing.

    Previously, Hunt was the founding chairman, ceo and .......

    Job Swaps 18 January 2016

  • Euro secondary resilient

    The European securitisation secondary market remained resilient into Friday's close despite broader market volatility.

    That volatility continues to ensure that activity is patchy, however. Nevertheless, the last session of the week was reasonably busy for a Friday as technicals, notably lack of supply, continue to support spreads and fuel buying interest.

    The major beneficiaries are still ECB-eligible peripherals, CMBS and .......

    SCIWire 18 January 2016
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