CLOs

  • US CLOs on the up?

    While still quiet the US CLO secondary market appears to be on the up.

    Market sentiment looks to be improving on the back of some stronger trading levels in secondary and tighter pricing in primary over the past week. However, secondary volumes remain typically low for August and the BWIC calendar is currently sparse for the remainder of this week.

    SCIWire 17 August 2015

  • Structured credit pro tapped

    Lloyds has bolstered its financial institutions business with the appointment of Thomas Sandberg as associate director. He will join the bank's relationship solutions team, which is responsible for delivering bespoke solutions to financial institutions, as well as providing strategic advice around navigating regulatory and economic change.

    Sandberg joins from Bank of America Merrill Lynch, where he was vp of the Nordic .......

    Job Swaps 14 August 2015

  • Euro secondary stays calm

    The European securitisation secondary market continues to stay calm in terms of both activity and price volatility.

    Summer illiquidity along with broader market volatility, albeit reduced, kept most market participants on the sidelines again yesterday. Activity continued in pockets with autos and a handful of CLOs being the main signs of life, though spreads overall remained unmoved.

    Nevertheless, with wider .......

    SCIWire 14 August 2015

  • US CLOs pick up

    Activity in the US CLO secondary market has picked up slightly over the past 24 hours.

    "Activity has ticked up a little," says one trader. "But it's still only at moderate levels for August."

    The trader continues: "We saw a bit more trading overall yesterday, but we're still range-bound. It doesn't seem like there's a lot of focus on CLO .......

    SCIWire 13 August 2015

  • US CLO credit weakening

    US CLO credit quality weakened slightly between the first and second quarters of 2015, according to Moody's latest 360-degree report on the sector. The most notable change was a rise in the number of companies rated B3 or lower with negative outlooks, which could suggest an increase in default rates.

    Although somewhat improved from last year, high-yield corporate credit standards .......

    News Round-up 13 August 2015

  • Euro secondary stays insulated

    The European securitisation secondary market remains quiet despite broader market volatility.

    "It's still pretty slow," says one trader. "We've remained insulated from the China news, but it's August so the market is illiquid."

    The latest THRONES deal remains the chief talking point. "Price talk on the new deal is weak and while that should have a knock-on impact in secondary .......

    SCIWire 13 August 2015

  • Equity exits spark concerns

    Investors have been left in doubt over the potential impact of two BDCs shifting their focus away from US CLO equity, accordings to Wells Fargo structured product analysts. In one case, a Benefit Street Partners (BSP) affiliate is set to acquire TICC Management (SCI 5 August), while the other concerns THL Credit (TCRD).

    Specifically, a BSP proxy filing stated that TICC's portfolio .......

    News 12 August 2015

  • Euro secondary limps on

    Despite broader market volatility the European securitisation secondary market continues to limp along on very thin volumes.

    "There's not a great deal happening with only a few BWICs and a couple of OWICs due all this week," says one trader. "We're fully into summer and the weaker macro picture isn't helping."

    So far, the European ABS/MBS market has been insulated .......

    SCIWire 12 August 2015

  • US CLOs head sideways

    Recent low volumes and sideways price moves look set to continue in the US CLO secondary market.

    "Last week was quiet and it's even quieter this," says one trader. "It's really turned into an unusually slow summer and it looks like we'll be trading sideways until mid-September because of when Labor Day falls and expectations over the Fed."

    Secondary supply .......

    SCIWire 11 August 2015

  • Oil exposure affects CLOs

    The percentage of US CLO 2.0 loans trading below 90 has increased above 6% for the first time since the start of the year, with a clear inverse relationship to oil prices. Meanwhile, having steadily climbed for years, the percentage of US loans with Libor floors has also finally fallen.

    A continued fall in oil prices - and rise in .......

    News 11 August 2015

  • CLO credit quality remains strong

    Moody's has released its debut 360-degree report of the European CLO market and its 2Q15 performance, analysing macroeconomic and financial market conditions, high yield corporate sector trends and credit conditions that correlate with credit quality. The report adopts the same approach that the agency recently used in its report on the US CLO market's performance in 1Q15 (SCI June 3).

    The .......

    News Round-up 11 August 2015

  • Euro CLO 2.0 bond re-priced

    The class A noteholder of Carlyle Global Market Strategies Euro CLO 2013-1 has approved the reduction of the margin on the notes from 130bp to 115bp and the elimination of its right to remove/replace the collateral manager (SCI 31 July), with effect from the 17 August IPD. The move marks the first time that a European CLO has been 'Volckerised' .......

    News Round-up 11 August 2015

  • Euro secondary winds down

    The European securitisation secondary markets continue to wind down as seasonal factors hold sway.

    "We're really in summer mode now with not a lot of flows," says one trader. "Activity is down to a minimum with little BWIC supply and no major credit news to stimulate trading."

    One piece of relevant news did however come from the similarly quiet primary .......

    SCIWire 11 August 2015

  • US CLOs keep quiet

    The US CLO secondary market looks set to keep to the relatively quiet trend of recent weeks.

    Despite ever-present hopes of a pick-up in activity the combination of Friday's non-farm payrolls fuelling September rate rise speculation and mid-August illiquidity is encouraging reticence in the US CLO secondary market, which makes another quiet start to the week likely. However, since the NFP .......

    SCIWire 10 August 2015

  • OC degradation analysed

    The average par NAVs and overcollateralisation (OC) cushions in US balance sheet CLOs fell in almost half of the quarterly issuance seen in 2Q15, according to Wells Fargo structured product analysts. In most quarterly issuance samples they studied, over 40% of deals experienced OC degradation between 1Q15 and 2Q15.

    The Wells Fargo analysts believe that the decrease in OC is .......

    News 10 August 2015

  • Euro secondary limited

    Activity in the European securitisation secondary market remains limited as seasonal illiquidity prevails.

    Nevertheless, Autos alongside Dutch and UK prime continue to see some signs of life. At the same time, there is selective demand for Italian, Portuguese and Spanish paper.

    Today, currently sees one BWIC on the schedule - at 14:30 London time there is a single €700k line .......

    SCIWire 10 August 2015

  • ABS lawyers promoted

    Katten Muchin Rosenman has named nineteen new partners, among them Christina Burgess and Don Macbean for structured finance and securitisation. Burgess' experience includes ABS and MBS, with an emphasis on prime and sub-prime automobile loan and lease, dealer floorplan receivable and equipment lease securitisations and warehouses. Macbean's practice encompasses structured energy and commodity-related transactions, market-value CLOs and structured derivatives transactions.

    .......

    Job Swaps 7 August 2015

  • Law firm continues SF push

    Bryan Cave has appointed Rachel Kelly as a partner in its financial services group. She arrives from Macfarlanes, where she had been head of structured finance and capital markets, having previously been a partner in Clifford Chance's structured debt group.

    Kelly specialises in structured finance and debt capital markets, particularly CLOs. She advises clients on a number of areas, including real estate finance, infrastructure and .......

    Job Swaps 7 August 2015

  • Euro secondary on the up

    Yesterday was another positive day in European secondary, though today looks to be quiet.

    Secondary activity improved again yesterday with higher levels of end-user involvement than in recent days. Nevertheless, volumes remain fairly light and patchy.

    In line with recent patterns prime assets led the way, but there were also pockets of activity in CLOs, CMBS, Italian ABS/MBS and UK .......

    SCIWire 7 August 2015

  • Cairn majority stake sold

    Mediobanca has agreed to acquire RBS' 51% majority interest in Cairn Capital Group. The majority will be purchased from Cairn Capital's institutional shareholders, following which RBS will have no remaining interest.

    The acquisition is part of Mediobanca's strategy to continue developing its alternative asset management business through a number of strategic partnerships. As part of the transaction, Mediobanca will be providing .......

    Job Swaps 6 August 2015

  • Negative net issuance posted

    US CLO prepayments narrowly exceeded new issuance in July, resulting in the first negative net issuance month since January 2014. Deutsche Bank figures put new issue volumes at just under US$7bn and prepayments at just over US$7bn for the month.

    Part of the explanation for the unusually large payments in July is that many CLOs pay quarterly. But the prepayment .......

    News Round-up 6 August 2015
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