CLOs

  • Long-dated asset concentration examined

    S&P has examined the concentration of long-dated assets - assets within a pool that mature after the deal matures - within the US CLOs it rates. While CLO investors typically have limited exposure to market value risk, significant concentrations of long-dated assets may increase such exposure, the agency says.

    "We believe that a CLO with a significant concentration of long-dated .......

    News Round-up 1 May 2012

  • NCRAM CLOs finally unloaded

    Nomura Corporate Research & Asset Management (NCRAM) on Friday resigned as investment manager for Clydesdale Strategic CLO I and Clydesdale CLO 2005. The governing documents for the transactions have been amended to reflect a change in their names to Ares XIX CLO and Ares XX CLO respectively.

    The name changes reflect a purchase agreement, dated 7 April 2011, pursuant to .......

    News Round-up 30 April 2012

  • Santander tender results in

    Banco Santander has announced the results of its 33-bond tender offer, which comprised 12 RMBS, six ABS and 15 CLOs. In total, the bank indicated it would consider purchasing up to €750m and in the end bought €450.2m.

    The tender was by way of an unmodified Dutch auction. Out of the 33 bonds, 20 saw no repurchases, according to MBS .......

    News Round-up 27 April 2012

  • Primus CLO unloaded

    Primus Asset Management has assigned its rights and obligations under the existing collateral management for Primus CLO II to CypressTree Investment Management. Following the assignment, a sub-advisory agreement - under which CypressTree provides management services to the transaction - will be terminated.

    Moody's confirms that its ratings on the notes will not be withdrawn, reduced or experience other adverse action .......

    News Round-up 27 April 2012

  • Comeback kid

    CDOs broadening investor base for infrastructure assets

    CDO technology appears to be making a comeback in the infrastructure sector. The vehicles are helping to broaden the investor base for these assets.

    "They are being called infrastructure funds, credit loan funds or global loan funds. There are a few names being tried out," says David Bell, md at BNY Mellon Corporate Trust. "It is basically a bilateral loan .......

    News Analysis 26 April 2012

  • A2E brings mixed implications

    Sabre Holdings - the twelfth largest CLO holding - has launched an amend-to-extend transaction with mixed implications for CLOs, according to securitisation analysts at S&P. They note that while participation in the extension may expose transactions to market value risk, the ratings outlook on the credit has improved to positive and the extension comes with a 40% pay-down of the .......

    News Round-up 26 April 2012

  • Mixed fortunes for Euro, US primary markets

    A marked divergence in structured finance issuance trends over the past three months has been highlighted by the latest rankings in the SCI league tables for bank arrangers in the structured credit and ABS markets.

    The 1Q12 SCI league tables show that the US has seen a jump in issuance to US$78bn versus US$58bn in 1Q11, whereas Europe has seen .......

    News Round-up 25 April 2012

  • Bicent default hits CLOs

    Bicent Power, which has exposure in 80 CLOs, defaulted last Friday after a missed debt payment. Securitisation analysts at S&P note that this is a slight credit negative for deals with exposure.

    No transaction has more than 2.1% in the credit and six have more than 1%. CLOs hold a little more than 60% of Bicent's US$130m second-lien loan due .......

    News Round-up 24 April 2012

  • Clio buy-back agreed

    A sale agreement with the noteholders of Clio European CLO has been completed, pursuant to which all of the debt assets in the portfolio were sold to the noteholders. Noteholders surrendered to the issuer €179.27m class A1 notes, €59.38m class B notes, €39.1m class C notes and €134.71m subordinated notes with a principal amount outstanding equal to €412.47m. These notes .......

    News Round-up 23 April 2012

  • Vintage CLOs targeted in loan refi

    Ineos, one of the largest obligors in the CLO universe, is set to refinance about US$3.6bn of its outstanding senior loan facilities via a combination of a US$1.5bn cov-lite loan issue and a US$2.2bn secured bond issue. A total of 107 CLOs hold €624m of the issuer's existing term loan debt, of which 41 - equivalent to circa 33.84% of .......

    News Round-up 23 April 2012

  • Investors debate SME CLO supply

    Investors that are willing to invest in SME CLOs alongside other structured finance asset classes have cited concerns about a lack of liquidity on the secondary market that could prevent or delay investment.

    In a recent seminar hosted by Fitch, investors also indicated a general lack of triple-A SME CLO supply as most European SME CLO transactions are retained by .......

    News Round-up 20 April 2012

  • Alternative credit group acquired

    THL Credit Advisors is set to acquire McDonnell Investment Management's Alternative Credit Strategies (ACS) group. ACS manages approximately US$2.5bn in broadly syndicated bank loan and high yield bond assets in CLOs, separate account, long-only and opportunistic fund formats.

    Led by James Fellows, Brian Good, Robert Hickey and Michael Herzig, the ACS team will join THL Credit Advisors' capital markets investment .......

    Job Swaps 19 April 2012

  • Newly-formed credit shop strengthened

    Stephen Hickey has joined CVC Credit Partners (CCP) as member of the management committee, partner and chief risk officer. He will be based in New York and have global responsibilities, including chairing the newly-formed global portfolio committee, overseeing investments and the development of the firm's business and products.

    Hickey joins from Goldman Sachs, where he spent 20 years in various .......

    Job Swaps 18 April 2012

  • HCA seeking loan extension

    HCA, the fourth largest CLO holding, is launching a loan extension. Securitisation analysts at S&P view the move as a credit negative for some transactions.

    HCA is seeking to extend the maturity on term loans maturing in November 2012 and November 2013 to February 2016. Of the 199 CLOs exposed to these loans, 37 mature before the proposed loan extension .......

    News Round-up 17 April 2012

  • Positive CDO ratings trend noted

    S&P upgraded 750 classes of structured credit notes in 1Q12, over a 75% jump from the 426 upgrades recorded in the previous quarter. Upgrades of US CLOs contributed significantly to the overall increase.

    In terms of downgrades, the 241 S&P took is the lowest number in any quarter since 2007. The rating activity boosted the overall upgrade-to-downgrade ratio to 3.1 .......

    News Round-up 17 April 2012

  • New Europe credit head named

    Doug Henderson has joined Oak Hill Advisors in London as partner. He joins from Goldman Sachs and will lead the firm's European performing credit business.

    Henderson succeeds Richard Munn, who is stepping down from his full-time commitment to the firm to become a senior advisor. Henderson was chairman of the European credit finance group in Goldman's investment banking division, responsible .......

    Job Swaps 16 April 2012

  • Preps CLOs facing refi risk

    Fitch has downgraded three classes of notes from the Preps 2005-2 and Preps 2007-1 SME CLO deals, due to the increased balance of the principal deficiency ledger (PDL). At the same time, the agency has affirmed the transactions' remaining three classes of notes, as well as the ratings of Preps 2005-1 and Preps 2006-1.

    The downgrades are primarily driven by .......

    News Round-up 12 April 2012

  • ELLI default rate on negative trend

    The S&P ELLI index rose to 5.3% in March from 4.9% in February, based on par amount outstanding, and is now at its highest level since July 2010. European asset-backed analysts at RBS note that the increase in the default rate was driven by a rise in the absolute volume of ELLI constituents falling into distress (the numerator of the .......

    News Round-up 12 April 2012

  • Fund manager picks president

    William Bohnsack has been promoted to president at Oak Hill Advisors. He has been coo at Oak Hill since 2001 and one of the firm's four senior partners since 2005.

    Bohnsack joined Oak Hill in 1993 and became partner in 1999. During his time at the firm he has worked as a senior professional investing in performing and distressed debt, .......

    Job Swaps 5 April 2012

  • CLO survey highlights regulatory concern

    JPMorgan has published the results of its latest CLO client survey, based on responses from 79 accounts. The results suggest that regulatory reform remains a key concern among market participants.

    Indeed, respondents pointed to risk retention as the most damaging regulation to CLO new issues, noting that the market is still waiting for guidance on risk retention as set out .......

    News Round-up 5 April 2012

  • Key person clauses modified

    The investment management agreements for the Stone Tower Credit Funding I, Stone Tower CDO, II, III, IV, V, VI, VII and Cornerstone CLO transactions have been amended to modify the definition of 'key person'. The amendment adds the names of two Apollo Global Management executives and one Stone Tower Fund Management (STFM) executive, and removes the names of two STFM .......

    News Round-up 2 April 2012
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