CLOs

  • TPG moves into CRE CLOs

    TPG RE Finance Trust (TRTX) is marketing an inaugural US$932.4m CRE CLO. The transaction, entitled TRTX 2018-FL1, is the second-largest CRE CLO to be issued post-crisis and will initially be collateralised by 26 mortgage assets, secured by 63 properties.

    Moody's and KBRA have assigned expected ratings of Aaa/AAA to the US$491.831m class A notes and KBRA has provisionally assigned triple-A to the US$72.259m .......

    News 2 February 2018

  • CLO reissues debut

    The first two US CLO reissues closed this week, adding another US$1.12bn to Anchorage Capital Group's AUM. A reissue differs to a refinancing or reset as it involves calling a pre-existing CLO and rolling the assets into a new SPE.

    JPMorgan arranged both reissues - the US$508.75m Anchorage Capital CLO 3-R and the US$614.15m Anchorage Capital CLO 4-R - following .......

    News 31 January 2018

  • US CLOs on the up

    Pricing levels across the US CLO secondary market have kept increasing through January.

    "Everything is getting tighter in secondary," says one trader. "Meanwhile, new issue spreads are tightening and then those bonds are trading up in the secondary market too."

    The driver behind spreads narrowing is currently a simple one, according to the trader. "For the past two or three .......

    SCIWire 31 January 2018

  • Euro secondary picking up

    Activity in the European securitisation secondary market is gradually picking up, albeit from a low starting point.

    December saw a significant drop in volumes and left secondary spreads unchanged on the month. Since the start of 2018 trading activity has slowly increased week on week, but still remains intermittent and a pick-up in BWIC supply has only been evident over the .......

    SCIWire 31 January 2018

  • Market moves - 26 January

    North America

    Schulte Roth & Zabel has elected Stephen Schauder as a partner in the structured finance and derivatives group, working with co-heads Craig Stein and Boris Ziser. Schauder joined the firm as an associate in 2015 after having previously worked at Stroock & Stroock & Lavan in the structured finance department.

    CIFC has hired Jay Huang as md, senior .......

    Market Moves 26 January 2018

  • CRE CLO market tapped

    Värde Partners is tapping the market with a debut US$368.1m cashflow CRE CLO. The transaction, entitled VMC Finance 2018-FL1, is expected to close on 8 February and comprises 24 first-lien whole loans and pari-passu participations secured by commercial real estate properties spread across 12 US states.

    Moody's and KBRA have assigned ratings of Aaa/AAA to the US$200.6m class A notes .......

    News 25 January 2018

  • Going green

    Current status of green ABS market discussed

    Representatives from Clifford Chance, TMF and Ygrene Energy Fund recently discussed the current status of green ABS during a live webinar hosted by SCI (view the webinar here). This Q&A article highlights the main talking points from the session, including the established asset classes, those that are developing, and what is next for the sector.

    Q: As the .......

    Talking Point 25 January 2018

  • Market moves - 19 January

    Acquisitions
    RenaissanceRe Ventures is set to acquire a minority shareholding in Catalina Holdings (Bermuda), with the aim of helping the business to explore a wider range of transaction structures. The agreement is subject to regulatory approval and is expected to close concurrently with the majority acquisition of Catalina by affiliates of Apollo Global Management. Aditya Dutt, president of Renaissance Underwriting Managers, will .......

    Market Moves 19 January 2018

  • Carillion liquidation met with cautious optimism

    The Irish stock exchange announced this week that a company, believed to be liquidated construction giant Carillion, triggered a credit event for HSBC's US$300m CLN dubbed 'Metrix portfolio distribution'. Despite the event, the market's initial reaction remains cautiously optimistic given the sturdy performance of synthetics over the last four years.

    Metrix was closed at end-2015 (see SCI's capital relief trades .......

    News 19 January 2018

  • CLO collateral defaults eyed

     Defaulted collateral in US 2.0 CLOs rose through December, as increased leveraged loan defaults filtered through from November. While defaults in European 2.0 CLOs have remained steady, CLO managers have notably moved out of previously heavily weighted positions to boost performance.

    Defaults in the S&P LCD/LSTA leveraged loan index last month rose above 2% for the first time since June .......

    News 16 January 2018

  • Scenario analysis

    Elena Rinaldi, portfolio assistant at TwentyFour Asset Manag...

    ABS is an asset class that lends itself well to detailed underwriting, from onsite due diligence through to cashflow and risk modelling. Specifically within the CLO sector, once TwentyFour Asset Management has reviewed the manager and the collateral, we focus on stress testing and sensitivity analysis. The hypothetical question "what if?" plays a fundamental role in assessing the resilience of .......

    Talking Point 12 January 2018

  • Euro 2.0 CLO programme debuts

    Natixis has closed its first European managed cashflow CLO 2.0 deal. Dubbed Purple Finance CLO 1, the €308.4m transaction is managed by Natixis Investment Managers affiliate Natixis Asset Management and is backed by primarily senior secured euro-denominated leveraged loans and bonds issued by European borrowers.

    Moody's and S&P have assigned Aaa/AAA ratings to the CLO's €173.70m class A notes (which .......

    News 11 January 2018

  • CRE servicing composition tracked

    Dwindling CMBS and CRE CDO issuance posed a significant challenge for commercial mortgage servicers over the past decade. As such, servicers have sought greater exposure to loans from non-CMBS investors - including life insurance companies and the GSEs - to maintain portfolio volumes.

    US CMBS and CRE CDO loans made up 61% of the unpaid principal balance of the portfolios .......

    News 8 January 2018

  • CRTs coming to America?

    Capital relief trades (CRTs) have become an established feature of the European securitisation market, with multi-billion euro deals frequently issued to achieve regulatory capital relief (see SCI's capital relief trades database). Although these transactions have not yet been embraced by US banks, that is expected to change.
     
    Rumours of US CRTs in the offing continue to circulate. Sources suggest .......

    News Analysis 8 January 2018

  • Market moves - 5 January

    Acquisitions/Investments
    SoftBank Group Corp     has acquired Fortress Investment Group for US$3.3bn in cash and now – along with its subsidiaries – owns all outstanding Fortress shares. Fortress shareholders approved the transaction last summer and all necessary regulatory approvals have now also been received. As a result of the acquisition, each outstanding Fortress class A share has been converted into the right to .......

    Market Moves 5 January 2018

  • Job swaps round-up - 22 December

    CDS options clearing

    LCH's CDSClear has become the first platform to clear credit index options, with post-trade services for both dealer-to-dealer and dealer-to-client flows provided by MarkitSERV. The service is expected to benefit members and clients in a number of ways, including full cross-margining of options with indices and single-name CDS, multilateral netting from facing a single counterparty (LCH) and .......

    Job Swaps 22 December 2017

  • Project finance risk transfer completed

    Santander has completed a synthetic risk transfer securitisation, transferring risk on a €2.3bn portfolio of loans originated in Spain and other EU countries. Scope Ratings has rated the transaction triple-A.

    The synthetic project finance CLO references a portfolio of 241 loans originated by Banco Santander. The deed was executed yesterday, 21 December.

    Scope has rated the €1.514m A tranche at .......

    News 22 December 2017

  • Embracing a tactical approach

    David Moffitt, head of tactical investment opportunities at LibreMax Capital, answers SCI's questions

    Q: How and when did LibreMax Capital become involved in the securitisation market?
    A: LibreMax Capital was established in October 2010 by founding cio Greg Lippmann and founding president Fred Brettschneider, who previously worked at Deutsche Bank and Credit Suisse together. The firm - which focuses exclusively on .......

    The Structured Credit Interview 22 December 2017

  • IFRS 9 volatility persists

    The Bank of England did not disclose any data on the capital impact of IFRS 9, following the recent PRA stress tests, as had initially been expected - although subsequent statements by the central bank signal no overall impact for stress-based capital requirements. However, sources in the capital relief trade market note that the need for managing IFRS 9 volatility .......

    News Analysis 20 December 2017

  • Broad-based recovery underlined

    The global securitisation markets continued their broad-based recovery in 2017, with total issuance reaching about US$850bn-equivalent through November, an increase of 27% over the approximately US$667bn-equivalent recorded in full-year 2016. Volumes have been supported by economic growth and more market participants embracing securitised products in order to diversify funding sources and add yield.

    The US recorded US$478bn in new issue securitisation volume .......

    News Analysis 20 December 2017

  • Risk transfer round-up - 15 December

    Barclays has returned to the capital relief trade market with another Colonnade transaction. Colonnade UK 2017-1 financial guarantee references a £2.6bn corporate portfolio. Under the senior guarantee, Barclays will buy protection for both principal and interest, which is a typical feature of Colonnade transactions (SCI 8 September).

    The deal follows rumours of another corporate risk transfer transaction from Italian lender .......

    News 15 December 2017
×