CLOs

  • CLO performance to remain strong

    The performance of CLOs in the US, Europe and Asia will remain strong as a result of the improving global economy, according to Moody's. This is in spite of weaker leveraged loan underwriting, expected rising interest rates and new regulation.

    The agency says that US broadly syndicated loans (BSL) and US SME CLOs will benefit from historically low leveraged loan .......

    News Round-up 4 December 2014

  • CLO portal debuts

    US Bank Global Corporate Trust Services has launched Pivot, a specialised client portal built for CLO managers. Pivot streamlines daily cash activity and monthly reconciliation processes, allowing clients to focus on managing their portfolio.

    With a single access point for all data, pivot includes critical alerts about deal milestones, pending trades and unexpected changes to clients' portfolios. Core Pivot features .......

    News Round-up 4 December 2014

  • Stable investment

    Low-risk option attracting investors

    The overlap between stable value (SV) funds and securitisation is increasing, given that high grade ABS offers the benefits of low risk and steady, predictable returns. However, SV strategies remain somewhat constrained by the conservative nature of their financial objectives.

    SV funds are capital preservation investment options available in 401(k) and other types of savings plans. Douglas Trevallion, md at .......

    News Analysis 4 December 2014

  • US CLOs on the up

    The US CLO market is seeing increased BWIC volume and tighter spreads so far today.

    "Things are picking up a bit today with a handful more bid lists," says one trader. "In terms of price action, everything feels a little stronger across the board, but spreads are only actually moving tighter in specific areas where there is strong buying interest."

    SCIWire 3 December 2014

  • CLO specialist moves

    Ross Heller has joined RBC Capital Markets as a director, structured credit sales. He will work in CLO marketing and distribution.

    Heller arrives after five years at Nomura Securities, where he was an executive director for leveraged credit sales. He has also held roles as md at NewOak Capital and executive director at JPMorgan.

    .......

    Job Swaps 3 December 2014

  • Mezz focus for European CLOs

    Today sees two substantial primarily mezzanine tranche BWICS in the European CLO market reflecting most active part of the capital stack so far this week off-BWIC. Both auctions are due at 15:00 London time and will be watched closely given recent spread widening in the sector.

    One list totals €36.8m of original face across ten line items. It consists of: .......

    SCIWire 3 December 2014

  • Originator fee rebates tallied

    Blackstone/GSO Corporate Funding has priced the €415m Castle Park CLO, its third originator CLO. The fund has negotiated a rebate of Castle arrangement fees of €3.95m, which will be paid at closing.

    Blackstone/GSO Corporate Funding will sell approximately €240m par amount of loans to Castle at closing, representing approximately 60% of the CLO's portfolio. The fund will then acquire all .......

    Job Swaps 3 December 2014

  • US CLOs stay light

    Trading volumes are still light in the US CLO market post-Thanksgiving and are expected to stay that way.

    "It's still pretty quiet and there isn't much of major interest going out on the BWICs that there are," says one trader. He cites a list of BLUEM single-Bs that traded yesterday and a double-B OWIC due this morning as exceptions in .......

    SCIWire 2 December 2014

  • CLO returns rebound

    JPMorgan's latest Collateralized Loan Obligation Index (CLOIE) monitor report shows that the total amount of CLOs paid down in the index since the October rebalance was US$2.15bn in par outstanding, split between US$2.12bn and US$30m of pre-crisis and post-crisis CLOs respectively. The post-crisis CLOIE added US$7.65bn from 78 tranches across 16 deals at the November rebalance.

    Post-crisis CLOIE returns last .......

    News Round-up 2 December 2014

  • CLO constraints scrutinised

    Constraints in the second generation of European CLOs that restrict managers' flexibility to agree to amend and extend leveraged loans will lead to significantly higher leveraged loan default rates during the next downturn, says Fitch. The agency adds that if these covenants had been in place during the last downturn there would have been more forced restructurings, which could have .......

    News Round-up 1 December 2014

  • No cov-lite switch for mid-market

    A sampling of middle-market loans by Moody's suggests that a substantial majority still have financial maintenance covenants. This is credit positive because these covenants provide lenders a mechanism to manage their exposure in a deteriorating credit situation, but the average number of covenants per loan has declined over the past four years.

    Moody's sampled 30 middle-market loans for which it .......

    News Round-up 27 November 2014

  • REIT promotes risk md

    Robert Rush has taken the role of chief risk officer at Two Harbors Investment Corp. Paul Richardson, who has served in that role over the past several years, will remain in his role as partner and chief risk officer for Pine River Capital Management, the parent of the company's external manager.

    Rush has served as Two Harbors' md for risk .......

    Job Swaps 27 November 2014

  • Paper trades ahead of Thanksgiving

    The US secondary markets have not shut down just yet, with SCI's PriceABS data picking up price talk and cover prices for US ABS, CLOs, CMBS and RMBS yesterday. In ABS there was more than US$100m out for the bid on BWICs, with supply divided between autos, credit card, equipment and student loan ABS.

    Each of .......

    Market Reports 26 November 2014

  • CLO retention relief sought

    The LSTA has filed suit against the US Fed and SEC, seeking relief for CLOs from the final risk retention rule and "to protect an important source of financing for American companies". The association says that it and the industry strongly believe that the agencies did not fulfil their legal responsibilities when finalising the rule.

    It adds that the move .......

    News Round-up 25 November 2014

  • US CLOs closing out

    Year-end is at the forefront of US CLO traders' thoughts, but that's not to say the market is quiet.

    "We saw robust volume yesterday and it's very busy for a Friday today, especially in 1.0 deals, with a high proportion of lists overall from non-bank entities," says one trader. "We're also seeing sales of quite a few tranches that are .......

    SCIWire 21 November 2014

  • CLO team formed

    Lupus Alpha has expanded its team with the addition of four members from Main First Asset Management. Norbert Adam, Klaus Ripper, Michael Hombach and Stamatia Hagenstein will form a specialised fund management team in January, focused on CLOs. Lupus Alpha intends to issue several CLO strategies for institutional investors, as well as policy-compliant mutual funds.

    .......

    Job Swaps 21 November 2014

  • Eclectic list fails to trade again

    A large proportion of the re-issued large eclectic BWIC of European assets from a bad bank (SCIWire passim) has failed to trade.

    The 37 line €276.502m auction was due at 14:00 London time today. However, 29 lines did not trade, including all of the SME CLOs on the list and all bar one of the CDOs.

    The bonds that did .......

    SCIWire 19 November 2014

  • Strong forecast for Asia

    Credit quality across the Asian securitisation and covered bond markets will remain strong overall in 2015, says Moody's. This is due to relatively healthy economic growth levels and falling corporate default rates in the region.

    Chinese auto loan ABS default and delinquency rates are expected to rise from 7.3% in 2014 to 7% in 2015, due to projected slower GDP .......

    News Round-up 19 November 2014

  • US CLOs get ahead

    US CLO market participants are looking to capitalise on this week's healthy BWIC volumes in advance of the usual Thanksgiving lull.

    "Everyone is looking to get ahead of the likely holiday slowdown next week," says one trader. "Volumes are strong if not at recent highs, but there is activity and interest across the board."

    In particular, the trader cites investor .......

    SCIWire 19 November 2014

  • Quiet CLO market looks ahead

    The European CLO market has remained quiet over the last week. A sizable list due to trade on Wednesday could liven it up.

    "It has been really quiet again," says one trader. "We have been looking increasingly at US paper because the supply in Europe has been weak."

    A lot of the reduced activity in Europe's markets has been attributed .......

    Market Reports 17 November 2014

  • ECB wait continues

    While most of the market is waiting for the ECB, a European CLO list of non-eligible paper has been announced for the middle of the week. "That is a mixed bag from a legacy seller; it is not the kind of paper we normally look at, but it could be interesting," says one trader.

    Beyond that, the trader suggests BWIC .......

    SCIWire 17 November 2014
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