CLOs

  • EMEA ratings transition positive

    EMEA structured finance securities continued to experience a decrease in downgrade activity and an increase in upgrade activity in 1H15, compared to 2013, according to Moody's latest transition study for the region. The 12-month downgrade rate for EMEA structured finance decreased from 16% to 4.8%, while the 12-month upgrade rate rose from 6.9% to 37.8% over the same period.

    The .......

    News Round-up 2 December 2015

  • OC cushions survive energy slump

    While US CLOs have so far avoided the worst of the energy sector's economic woes, the triple-C and single-D buckets in CLO 2.0 deals have crept up throughout the year, notes S&P. Further adverse moves could impact OC cushions, but they remain stable for now.

    "The effects of price declines within the US broadly syndicated loan (BSL) market have started .......

    News Round-up 2 December 2015

  • Hedge fund goes private

    BlueCrest Capital Management is to transition to a private investment partnership and will return to its clients the US$8bn it currently manages for them. Following the transition, BlueCrest will only manage assets on behalf of its partners and employees.

    BlueCrest will continue to trade all current major strategies and retain its offices around the world. Strong growth in employees and .......

    Job Swaps 2 December 2015

  • Post-crisis double-Bs keep outperforming

    The total amount of CLOs paid down in JPMorgan's CLO Index (CLOIE) in November was US$2.41bn in par outstanding, split between US$2.26bn and US$0.15bn of pre-crisis and post-crisis CLOs. The post-crisis index added US$5.7bn across 70 tranches from 13 deals at the November rebalance.

    Pre-crisis triple-A discount margins widened 10bp, while post-crisis triple-A DMs widened 4bp. Post-crisis CLOIE saw negative .......

    News Round-up 2 December 2015

  • Volcker amendments implemented

    An extraordinary resolution has been passed by St Paul's CLO III noteholders that amends the investment management agreement to comply with the Volcker Rule. Under the amendments, noteholders have the option to hold notes with different voting rights in respect of resolutions to remove or replace the CLO manager. This involves splitting each class of rated notes into three separate .......

    News Round-up 2 December 2015

  • Euro secondary picking up

    Activity in the European securitisation secondary market is starting to pick up.

    "Yesterday was very quiet again with not a lot of flows or BWICs," says one trader. "However, it appears to be picking up today and the BWIC calendar is building for the rest of the week, though involving a lot of off-the-run securities."

    The most active sector yesterday was .......

    SCIWire 2 December 2015

  • US CLO slow return

    The US CLO secondary market is slowly getting back to some semblance of normality after a quiet holiday-shortened week last week.

    Yesterday only saw one BWIC and one OWIC, both primarily involving equity pieces. In both cases more than usually extensive colour was released.

    The 2.0 equity OWIC had two line items trade - BHILL 2013-1X E at 71a and .......

    SCIWire 1 December 2015

  • European outlook improves

    European structured finance will benefit next year from an improved macroeconomic landscape, consumer confidence and a more competitive lending environment, which will boost asset performance, says Fitch. The rating agency has changed its asset performance outlook to stable/positive for 2016.

    Asset performance outlooks for several individual markets have improved as GDP growth and lenders' greater appetite to underwrite loans to .......

    News Round-up 1 December 2015

  • Asian delinquency trends to diverge

    Moody's forecasts that delinquency rates for structured assets in Asia (ex-Japan) will diverge in 2016. China and Singapore are generally expected to show rising delinquency trends, while performance in India and Korea should exhibit strength.

    "China's gradual economic slowdown will trigger a slight rise in delinquencies from current low levels across a range of asset classes in the country, while .......

    News Round-up 1 December 2015

  • Euro secondary lull continues

    The lull in activity seen at the end of last week in the European securitisation secondary market carried over to another quiet session yesterday.

    With most secondary market participants pre-occupied with month-end there was little investor activity and only very patchy and light flows from dealers, nor were there any European BWICs. However, market tone remained positive with spreads broadly .......

    SCIWire 1 December 2015

  • Euro secondary slumbers

    The European securitisation secondary market is taking it easy through the US public holiday but market tone is staying strong.

    Despite low volumes yesterday spreads remained firm to slightly tighter across the board. UK non-conforming and buy-to-let bonds are still the most active areas and remain better bid, primarily from the Street. At the same time, peripherals continue to generate .......

    SCIWire 27 November 2015

  • BDC shareholder activism eyed

    Depressed share price valuations and governance concerns have ignited shareholder activism campaigns against three business development companies (BDCs) over the last several months. Fitch believes the heightened dialogue may lead to strengthened oversight, which would be beneficial for BDC creditors, provided other equity-friendly measures are not over-emphasised.

    Four fund managers - respectively TPG and Highland, Elliot Management and River North .......

    News Round-up 26 November 2015

  • Euro secondary activity fades

    Activity in the European securitisation secondary market is fading away thanks to the US public holiday, but sentiment remains positive.

    "We're quietening down now with Thanksgiving today," says one trader. "Also a lot of people are being distracted away looking at primary and the BMW deal in particular."

    Secondary tone appears to remain strong however. "UK non-conforming and buy-to-let seniors .......

    SCIWire 26 November 2015

  • Bank's LatAm exit raises concerns

    Deutsche Bank's decision to close its operations in Argentina and Mexico is credit negative for the Argentine and Mexican securitisations for which it acts as trustee or common representative, says Moody's. Deutsche Bank Argentina acts as trustee in 36 securitisations, while Deutsche Bank México acts as common representative in 1,300 transactions.

    The bank's decision to close its operations in Argentina .......

    News Round-up 25 November 2015

  • Euro secondary stays strong

    Despite weaker global markets and reduced volumes the European securitisation secondary market is still showing some strong signs.

    "Yesterday was a bit quieter with flows minimal across most sectors as a result of weakness in broader credit thanks to increasing global political tension," says one trader. "However, we saw some strong activity and prints around BWICs."

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

    SCIWire 25 November 2015

  • Euro secondary UK focused

    The heightened focus on UK RMBS is continuing in the European securitisation secondary market.

    "Overall, secondary is somewhat quiet," says one trader. "With Thanksgiving coming, today will be another day to get a few things done but away from UK RMBS there's not much broad-based trading."

    The trader continues: "Both UK prime and buy-to let were very busy yesterday. It's .......

    SCIWire 24 November 2015

  • Trups CDOs quiet

    The US Trups CDO market is quiet again after a small flurry of BWIC activity last week.

    "It's pretty quiet across the Trups CDO sector," says one trader. "There were a few lists last week, but participation was light so there wasn't much action off the lists and a lot of DNTs etc on them."

    The market is likely to .......

    SCIWire 23 November 2015

  • Asset manager expands board

    David Richards has been appointed to American Capital's board of directors after it voted to increase its size to 10. He will become a member of the board's executive committee and its audit, compliance and valuation committee.

    Richards recently joined the firm from Pine River Capital Management, where he was a portfolio manager focusing broadly on financial sector investments. Prior .......

    Job Swaps 23 November 2015

  • Euro secondary undented

    A typically quiet Friday has failed to dent the positive tone in the European securitisation secondary market.

    After a pick-up in activity earlier in the week, Friday was typically quiet across most sectors. Nevertheless, market sentiment remained strong and spreads closed the day broadly unchanged.

    Continued trading around the Granite redemption means UK prime remains the main focus. Friday again .......

    SCIWire 23 November 2015

  • Carve out?

    CMU CLO treatment weighed

    The European Council has published its first compromise proposal in respect of the Securitisation Regulation forming part of the CMU action plan (SCI 2 October). The newly proposed Article 5a appears to misunderstand the practices of the CLO market, however, adding to the industry's disappointment at the treatment of the sector.

    Article 5a requires originators, sponsors and original lenders to .......

    News Analysis 20 November 2015

  • Euro secondary accelerates

    The recent uptick in the European securitisation secondary market accelerated further yesterday.

    A noticeable pick up in flows was seen across the board. As a result, prices were broadly either unchanged or edged a little higher.

    Stronger but still selective activity was seen in Autos, CLOs and CMBS. At the same time, peripherals held firm with continued buying interest in Italian .......

    SCIWire 20 November 2015
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