CLOs

  • Job swaps round-up - 12 May

    Amicus briefs

    The LSTA has joined The Clearing House and the American Bankers Association to file amicus briefs in cases initiated by the State of Colorado against Avant and Marlette, both of which have bank partners (WebBank and Cross River Bank respectively). In January, Colorado regulators sued the two marketplace platforms, claiming that their loans are subject to Colorado interest .......

    Job Swaps 12 May 2017

  • US CLOs unshaken

    A flurry of BWICs over the past two sessions has failed to shake the US CLO secondary market out of its torpor and this week looks set to be another quiet week overall.

    "The lull in secondary activity is continuing," says one trader. "Overall, volumes are light with the major focus on re-fis and re-sets."

    That focus goes beyond the .......

    SCIWire 11 May 2017

  • Equity holds the cards amid heavy refinancings

    While buoying European CLO deal volumes, refinancings and resets are not always favoured by senior investors that have little control over the resultant reduced margin and amended deal terms. However, if navigated adequately by the equity holders, European CLO investors across the capital stack can benefit from the refinancing/reset process and new investors continue to be drawn to the asset .......

    News Analysis 11 May 2017

  • Euro CLOs diverted

    A busy primary market is diverting focus away from the European CLO secondary market this week.

    "It's much quieter this week as we're being dominated by primary," says one trader. "There, shorter dated triple- and double-As are drifting wider, but that's not yet feeding through into secondary spreads."

    The trader expects 2.0 triple-As to edge out in line with that .......

    SCIWire 11 May 2017

  • Job swaps round-up - 5 May

    North America

    Hunton & Williams has hired John Dedyo as corporate partner to its New York office. Dedyo represents issuers, underwriters, asset managers, credit enhancers, rating agencies and investors in all aspects of privately placed and publicly offered securitisation transactions. Dedyo was previously a partner at Weil, Gotshal & Manges.

    Ares Management and Ares Commercial Real Estate (ACRE) has hired .......

    Job Swaps 5 May 2017

  • Brexit may see CLO managers up sticks

    Article 50 may have recently been triggered following the Brexit referendum, but uncertainty remains rife about what it means for CLO managers in the UK. In combination with the slow-moving STS securitisation framework negotiations, CLO managers are consequently weighing up other jurisdictions and the possibility of issuing elsewhere in Europe.

    Jonathan Bowers, senior portfolio manager at CVC Capital Partners, comments .......

    News Analysis 5 May 2017

  • Risk transfer round-up - 5 May

    Capital relief trade activity has been relatively subdued this week. However, sources report that the EIF is planning to tap the market again in two months.

    The fund completed its first EFSI risk transfer transaction last month (SCI 26 April), as part of a programme to stimulate SME lending in Europe. Not much is known about the forthcoming transaction, other .......

    News 5 May 2017

  • European CLO investor base expands

    The European CLO investor base is broadening, thanks to less perceived volatility than in the US market. As well as the stability Europe offers, panellists at IMN's European CLOs and Leveraged Loans conference last month said that low defaults and strong collateral quality is driving renewed interest in European CLOs across the capital stack.

    While European investors have dominated the .......

    Talking Point 4 May 2017

  • Job swaps round-up - 28 April

    EMEA

    Ashurst has promoted Alex Biles and Malcolm Charles to its partnership in London. Biles advises on a broad range of debt capital market products, including structured finance. Charles is a member of the firm's corporate trust and agency practice, advising on securitisations.

    Tikehau Capital has appointed Peter Cirenza as head of its London operations. His new role is aimed .......

    Job Swaps 28 April 2017

  • Risk transfer round-up - 28 April

    Deutsche Bank closed its CRAFT CLO 2017-1 this week (see SCI's capital relief trades database). The US$371m seven-year notes reference a US$5.3bn corporate loan portfolio and have a three-year call.

    Sources also suggest that Nordea is prepping another risk transfer transaction. The Nordic issuer's last trade was an €8.4bn transaction with PGGM last year (SCI 25 August 2016).

    At .......

    News 28 April 2017

  • US CLOs still slow

    The US CLO secondary market is still slow thanks to a combination of factors.

    "So many bonds are trading at a premium that it makes trades difficult because it's hard for there to be a meeting of minds on value," says one trader. "Also, with so much of the market becoming callable everyone is expecting to be refi'd out of positions, .......

    SCIWire 27 April 2017

  • Euro secondary stifled

    The hoped for boom in the European securitisation secondary market this week is being stifled.

    Market sentiment remains very positive bolstered by the rally in wider markets, but sellers remain thin on the ground as most investors seek to retain current positions. Consequently, flows and BWIC volumes have eased as the week has progressed, but secondary spreads are holding firm across the .......

    SCIWire 27 April 2017

  • Bill to repeal Dodd-Frank scrutinised

    Hearings are scheduled for today on a draft bill published last week by House Republicans which would repeal much of the Dodd-Frank Act. The Financial CHOICE Act would repeal risk retention rules for CLOs and all other asset classes except residential mortgages and would also repeal Volcker Rule restrictions on banks owning the debt securities of CLOs that hold anything .......

    News 26 April 2017

  • CLO refinancing capacity gauged

    New issue CLO spread tightening is expected to remain a key contributor to refinancing activity across the sector. US$50bn-US$60bn refinancing capacity remains for US CLOs under the SEC no-action letter (SCI 21 July 2015), according to Wells Fargo figures.

    The no-action letter limits eligible refis to CLOs within four years of issuance that were issued before 24 December 2014. Wells .......

    News 25 April 2017

  • Euro secondary boosted

    The European securitisation secondary market has been boosted by the first round result in the French presidential election.

    Trading activity picked up yesterday and the BWIC calendar is slowly growing albeit from very low recent levels. The elements of softness seen last week have reversed and secondary spreads across ABS/MBS and CLOs are flat to slightly tighter.

    There are currently two .......

    SCIWire 25 April 2017

  • European hot spots highlighted

    CLOs and RMBS are seen as the main growth areas in the European securitisation market at present. Drivers include a broadening of the investor base for the former and continued bank deleveraging for the latter.

    AFME data for 1Q17 shows that pan-European CLOs led placed European securitisation issuance, followed by UK RMBS and Dutch RMBS. Volumes across these sectors totalled .......

    Talking Point 24 April 2017

  • Self-syndication cost savings considered

    Demand for CLO debt remains high, fuelling suggestions that easy access to investors could encourage issuers to cut out arrangers. While CLO managers may find the idea of making savings through self-syndication attractive, it could prove to be a false economy.

    "In an effort to save costs, issuers may entertain the thought of taking on the job normally done by .......

    News Analysis 24 April 2017

  • Job swaps round-up - 21 April

    North America

    Morningstar has hired Charles Citro as md for CMBS ratings and analytics, based in New York, reporting to Vickie Tillman, president of Morningstar Credit Ratings. Most recently, Citro was senior md at Cushman and Wakefield within the asset surveillance group.

    Nations Equipment Finance has hired Susan O'Donovan as cfo. She was previously at Castleton Commodities International as executive .......

    Job Swaps 21 April 2017

  • US CLOs slumber on

    The slumber seen in the US CLO secondary market pre-Easter is continuing.

    Despite broadly positive market sentiment, volumes continue to be light as investors look to hold on to the paper they have. As result, secondary spreads across the capital structure and vintages are unchanged over the past week or so.

    There are two BWICs on the US CLO calendar .......

    SCIWire 20 April 2017

  • Euro CLO relative value discussed

    Identifying relative value in the current loan environment, where asset spreads are compressing, was a key theme at IMN's recent European CLOs and Leveraged Loans conference. Against the backdrop of rising refinancing and reset volumes, call optionality and manager style emerged as strong contenders.

    From a relative value perspective, Natixis ABS/CLO trader Peter Cui said that in terms of carry, .......

    Talking Point 19 April 2017

  • Antares returns with first 2.0 CLO

    Antares Capital Advisers is in the market with its first 2.0 CLO transaction, Antares CLO 2017-1 (see SCI's deal pipeline), its first deal in more than a decade. The transaction is a cashflow SME CLO provisionally sized at US$1.8bn and backed by middle-market speculative-grade senior secured term loans.

    The US$1.035bn A class notes have been rated at Aaa .......

    News 18 April 2017
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