CLOs

  • Euro secondary improves

    Tone in the European securitisation secondary market is improving in line with broader market sentiment, but activity remains limited away from VW.

    "Yesterday was very quiet again, but that is typical of quarter-end," says one trader. "However we did start to see bids back in VW ABS and it had stabilised at its wides by the close. This morning it .......

    SCIWire 1 October 2015

  • US CLOs stay tough

    Times are still tough in the US CLO secondary market.

    "The focus has primarily been on double- and triple-Bs, but even there liquidity has been very thin," says one trader. "In particular, it's been really tough for double-Bs across 2.0, but 1.0s have held up relatively well."

    Nevertheless, the trader adds: "Overall, we're wider across the board in double- and .......

    SCIWire 30 September 2015

  • Euro secondary drifts

    European securitisation secondary spreads are continuing to drift wider.

    "Yesterday was very quiet and today looks to be the same," says one trader. "Clients are definitely sidelined as market sentiment weakens."

    The trader continues: "There are a number of factors impacting sentiment both internal and external to ABS - there's the broader macro picture obviously, combined with our US equivalent .......

    SCIWire 30 September 2015

  • US CLOs still searching

    Amid broader market volatility and commodity concerns the US CLO secondary market is still searching for some price transparency.

    "There's a lot of focus on deals with a lot of commodity exposure for obvious reasons," says one trader. "Consequently buyers are shying away from CLOs with metals and mining exposure, but stuff without appears to be trading fairly realistically."

    As .......

    SCIWire 29 September 2015

  • Fund liquidity proposals weighed

    Last week, the US SEC voted to propose tighter liquidity rules for open-end funds, including mutual funds and ETFs. While the rules would lead to several changes, the most significant one for CLO investors could be regarding liquidity buckets.

    The SEC's proposed rules would formalise the 15% limit on illiquid assets which currently serves as a guideline, classify assets into .......

    News 29 September 2015

  • Loan ratings, CLO defaults correlated

    Default rates for leveraged loans in US CLO portfolios from 2007 to 2012 varied considerably across major CLO managers, though they did reflect the ratings of those loans, Moody's reports. Pro forma default rates came in somewhat higher than realised default rates during the same period, while the US speculative grade corporate default rate came in between the pro forma .......

    News Round-up 29 September 2015

  • Euro secondary weakens

    The European securitisation secondary market has weakened further on the back of broader market sell-offs and continuing VW concerns.

    "Equity and credit markets are weaker and so are we," says one trader. "In particular the weakness in VW ABS has filtered through into the whole of the low beta space and with that weak it's extremely difficult to get anything .......

    SCIWire 29 September 2015

  • US CLOs put to the test

    Continuing seller-heavy activity is testing the US CLO secondary market.

    "We're approaching month- and quarter-end so the flurry of lists of the past few days is continuing," says one trader. "Broad market volatility is of course a factor, but it's more about sellers testing the market and re-pricing risk."

    The trader continues: "A lot of the lists circulating today are .......

    SCIWire 28 September 2015

  • Euro secondary stays thin

    Liquidity remains thin in the European securitisation secondary market.

    Last week ended as anticipated with many players staying on the sidelines as a selling bias prevailed and bid-offers moved ever wider. Even flows in CLOs diminished as the relatively hectic BWIC schedule saw a flurry of DNTs. Overall, away from prime assets, secondary spreads have edged out further.

    Today currently .......

    SCIWire 28 September 2015

  • Euro CLO activity surges

    The European CLO secondary market is seeing a surge in activity this week.

    "It's been a busy week this week primarily driven by BWICs," says one trader. "It's mostly been about selling, but there are still some buyers left in the market."

    The majority of sellers are either hedge funds or asset managers, the trader notes. "So, I'd say most .......

    SCIWire 25 September 2015

  • Euro secondary still selective

    The European securitisation secondary market continues to see trading across the board, but only on selected names.

    Secondary spreads closed unchanged yesterday on, once again, patchy activity on- and off-BWIC. Most sectors saw some action, but prime assets remain the strongest performer. Autos were much quieter than the previous session with only the German programmes edging wider.

    There are currently .......

    SCIWire 24 September 2015

  • Real return for US CLOs

    US CLO secondary market activity is experiencing something of a real return to form following the extended summer lull.

    "We are finally returning to something like normal post-Miami," says on trader. "However, people are still reflecting on the Fed and that will continue to hang over the market for some time."

    Nevertheless, the trader adds: "There's now a fair amount .......

    SCIWire 23 September 2015

  • Euro secondary picks up

    The European securitisation secondary market is seeing a pick-up in activity.

    Amid a spike in broader market volatility and the evolving Volkswagen story, secondary activity and client enquiries grew significantly from recent levels yesterday. Inevitably attention was focused around auto ABS with a flurry of bonds across European jurisdictions offered for sale, most traded but transparency on pricing levels was .......

    SCIWire 23 September 2015

  • US CLO flurry

    The US CLO secondary market is experiencing a flurry of activity today, but looks set to quieten down again for the rest of the week.

    "We're seeing a burst of activity today post-conference," says one trader. "But with the Jewish holiday over the next two days and Friday being effectively a half day I don't expect to see much more .......

    SCIWire 22 September 2015

  • Euro secondary solid

    The European securitisation secondary market is staying solid despite distractions from elsewhere.

    Broader market volatility thanks to the Volkswagen story failed to feed through into the ABS market as autos for the most part held firm yesterday. VCL bonds edged wider by only a couple of points while spreads across the remainder of the auto sector were unchanged with buyers .......

    SCIWire 22 September 2015

  • Euro secondary mixed

    The European securitisation secondary market continues to experience mixed fortunes amid thin liquidity.

    It was another mixed day on Friday with some ABS/MBS sectors, notably Portugal, ending the week softer as broader market tone weakened, while CLOs continued to lack direction. However, relatively strong flows were seen in UK prime and Greek RMBS benefitted from pre-election interest. This morning's open .......

    SCIWire 21 September 2015

  • Euro secondary keeps quiet

    The European securitisation secondary market was once again quiet yesterday and looks likely to stay the same today.

    Secondary spreads remained fairly stable yesterday, though some softening of tone continues in the peripheral space. Volumes remained low in both flow and BWIC trading across the board in advance of the Fed announcement. On a Friday amid slightly weaker broader markets .......

    SCIWire 18 September 2015

  • NewStar buys CLO manager

    NewStar Financial has agreed to acquire Feingold O'Keeffe Capital (FOC) Partners. The transaction will close in 4Q15.

    FOC Partners is an alternative asset management firm based in Boston, established in 2001 by PIMCO high yield pair Andrea Feingold and Ian O'Keeffe. The firm manages six CLOs and two hedge fund strategies.

    NewStar will retain FOC Partners' investment team and support .......

    Job Swaps 17 September 2015

  • Non-bank lending risks noted

    Moody's says that non-banks can aid European policymaker initiatives to fund small businesses by packaging their loans into structured deals. However, the agency warns that information asymmetry can expose such deals to a potential misalignment of interest between investors and portfolio managers.

    In light of recent efforts by European policymakers' efforts to grow the non-bank lending market, Moody's expects securitisation .......

    News Round-up 17 September 2015

  • CLO equity acquired

    Fair Oaks Income Fund has entered into binding contracts to acquire, in the primary market, US$26m notional of Ares XXXV CLO equity notes. The investment represents 68.5% of the Ares Management transaction's total equity.

    This CLO's current target portfolio has a principal value of US$400m across an expected 177 unique bank loan issuers, with an expected weighted average exposure per .......

    Job Swaps 17 September 2015

  • Euro secondary stalemate

    The European securitisation secondary market stalemate is continuing as participants stay on the sidelines apart from for selected assets.

    "Things haven't changed much despite the better tone in global markets," says one trader. "In particular, off-the-run assets, such as CMBS and UK non-conforming, remain difficult to move, though UK non-conforming liquidity has slightly improved on the back of further pricing details .......

    SCIWire 17 September 2015
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