CLOs

  • 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

  • CLO 2.0 A2E mulled

    The issuer for Cairn CLO III - the first-ever European CLO 2.0 deal - intends to make a number of amendments to the transaction to bring it line with market developments, including risk retention requirements. If executed, the proposal would effectively refinance the deal and extend the non-call, reinvestment and maturity dates of the notes.

    CRNCL 2013-3 priced before European .......

    News Round-up 16 September 2015

  • Euro secondary lull continues

    The European securitisation secondary market's summer lull has morphed into a September one with liquidity still very thin across the board.

    "There's still very little going on other than a few BWICs," says one trader. "For September it's bad and we can't even blame the summer anymore."

    The trader continues: "What little secondary activity there's been has focused around prime .......

    SCIWire 16 September 2015

  • Slight return for US CLOs

    The US CLO secondary market is making something of a return but remains hidebound by thin liquidity.

    "It feels like the market is coming back a little bit, but volumes are still very low," says one trader. "It's going to be another tough week this week with the Jewish holiday today and tomorrow combined with the Miami conference from Wednesday."

    That said, the .......

    SCIWire 14 September 2015

  • CLO manager acquired

    Rothschild Merchant Banking (RMB) has acquired West Gate Horizons Advisors, combining the latter's expertise in US leveraged loan credit with its focus on European senior leveraged loan credit products. The transaction leaves RMB with €3.3bn in private debt under management.

    West Gate becomes a wholly owned subsidiary of RMB's parent company, Rothschild North America, as part of the deal. However, the firm will continue .......

    Job Swaps 14 September 2015

  • US, European issuance forecast

    S&P projects that US securitisation issuance levels for 2015 and 2016 will experience moderate year-over-year growth, but will not reach the pre-crisis levels of 2006 and 2007. The agency forecasts issuance of US$474bn and US$537bn in 2015 and 2016 respectively, up from a total of US$462bn in 2014.

    "Although many securitisation products are benefiting from an improving economy and are likely to see increased issuance, .......

    News Round-up 14 September 2015

  • Euro secondary stays stable

    The European securitisation secondary market closed out Friday fairly quietly but with spreads still appearing stable after a mixed week.

    Transparency was hampered by a higher than normal proportion of DNTs or colour not released on BWICs, but overall market tone remains positive and secondary spreads are broadly unchanged at this morning's open. CLOs and prime ABS/MBS continue to be the main .......

    SCIWire 14 September 2015

  • CLO co-head appointed

    Natixis has appointed Alex Zilberman as co-head of US CLOs and structured credit in its global structured credit and solutions (GSCS) Americas operations. He will jointly manage the group alongside Mike Hopson, with both reporting to deputy head of GSCS Americas, Hank Sandlass.

    Zilberman will focus on increasing Natixis' presence in the CLO broadly syndicated loan market. His experience ranges .......

    Job Swaps 11 September 2015

  • Equity gap

    CLO equity approaches diverging

    A two-tier system is emerging within US CLO equity as large investors competitively expand their mandate while smaller players move out of the market. This emerging gap is also manifested in a wave of manager consolidation, as risk retention remains a dominant concern.

    "BDCs are providing the most interesting story in the equity market right now," says Oliver Wriedt, co-president .......

    News 10 September 2015

  • TICC terms revised

    TICC Capital has revised the terms over its agreed acquisition by Benefit Street Partners (BSP). The revisions include a permanent annual base management fee reduction to 1.5% from 2%, as well as a commitment by various members and affiliates of BSP and TICC Management to purchase a minimum of US$20m of TICC's common stock within twelve months following entry into the agreement.

    Job Swaps 7 September 2015

  • Euro secondary ticks up

    Broader market improvement on the back of the message from the ECB and the Chinese holiday has extended into the European securitisation secondary market with a slight uptick in activity and some improvement in pricing levels.

    Flows continued to revolve around the usual suspects with sterling-denominated prime and peripherals, especially Italy, benefitting the most. At the same time, the CLOs .......

    SCIWire 4 September 2015

  • CLO commodity exposure 'negative'

    US CLO 2.0s' exposure to oil and gas and to metals and mining increased slightly in 1H15, which is a credit negative according to Moody's. With commodity market stresses moving into the credit market, CLOs with the largest exposures could suffer credit losses on their junior notes should there be widespread and correlated distress among related issuers.

    Of the CLO 2.0s .......

    News Round-up 3 September 2015

  • Euro secondary still slow

    Despite hopes for a post-August spike, volumes in the European securitisation secondary market are still only growing slowly.

    "It's still pretty quiet and could take a while to really get going," says one trader. "This week has been slower than we hoped as broader market volatility continues and people are also waiting on the ECB today and the growing primary schedule .......

    SCIWire 3 September 2015

  • US CLOs becalmed

    A late Labor Day combined with continuing broader market volatility has becalmed the US CLO secondary market.

    "We're in a holding pattern and it's really, really quiet," says one trader. "It's not unsurprising given the position of Labor Day this year - even though we're in September this is effectively the last week of summer."

    Consequently, the trader adds: "I .......

    SCIWire 2 September 2015

  • CLO slice financing considered

    Although the US CLO market has now surpassed its pre-crisis size, the number of managers issuing CLOs has decreased. With risk retention set to cull numbers further, vertical slice financing could provide managers with a solution.

    There were 181 CLO managers issuing before the crisis, but only 126 post-crisis. A Citi survey suggests risk retention rules will mean only 80-100 managers .......

    News 2 September 2015

  • CLO negative returns persist

    The total amount of CLOs paid down in JPMorgan's CLO index (CLOIE) since the July rebalance through 31 August was US$5.88bn in par outstanding, split between US$4.04bn and US$1.84bn of pre-crisis and post-crisis CLOs. The post-crisis CLOIE added US$10.8bn, with 135 tranches from 26 deals at the August rebalance.

    The CLOIE total index experienced negative returns in the month of .......

    News Round-up 2 September 2015

  • Euro CLOs seek clarity

    The European CLO secondary market is seeking clarity on pricing levels following a very quiet summer.

    "It's been very quiet - the bulk of activity in August was in triple- and double-A 2.0s, with very little in 1.0s, and there's been next to nothing so far this week," says one trader. "So, it's very difficult to tell where clearing levels .......

    SCIWire 2 September 2015

  • CLO drilling exposure weighed

    Moody's has placed 11 offshore drilling companies under review for downgrade, five of which have loans held in outstanding US CLOs. Wells Fargo structured products analysts suggest that the potential downgrades present key, yet difficult to model, risks to CLO investors.

    The five companies with exposures in CLOs are: Transocean; Seadrill Partners; Ocean Rig; Paragon Offshore; and Pacific Drillings. A total of 445 CLO funds have .......

    News 1 September 2015

  • CLO 1.0 potential scouted

    The US CLO 1.0 market may now be well onto the home straight, but that does not mean there is not still value to be found. Illiquidity is a risk and certain plays depend on the timing of when deals are called, but investors able to handle these factors can still generate alpha.

    JPMorgan analysts estimate there is still US$80.6bn .......

    News 1 September 2015

  • US CLO shift

    The US CLO secondary market is still refusing to completely give in to the summer doldrums and today sees BWIC supply shift up the capital stack albeit with low volumes persisting.

    Yesterday's flurry of mezz paper on BWIC traded reasonably well although there were a relatively high proportion of DNTs. Today sees sellers focusing on senior tranches with only two fairly .......

    SCIWire 28 August 2015

  • Euro secondary lacks conviction

    Despite an improving overall tone, the European securitisation secondary market continues to lack conviction.

    Even though broader market concerns are shelved for now yesterday was extremely quiet thanks to month-end and the summer lull. What small pockets of activity there were revolved around short-dated prime assets, some peripheral paper and a few major CMBS names.

    With a UK bank holiday .......

    SCIWire 28 August 2015
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