CLOs

  • Mixed blessing

    Retention rules not so onerous for CRE CLOs

    Risk retention requirements raise interesting issues for the CRE CLO sector. The typical CRE CLO model already includes holding the bottom of the capital stack, but the way in which that is done may well fall foul of the regulators' rulebook.

    The fact that CRE CLO sponsors frequently retain 10% or more of the bottom of the capital stack should .......

    News Analysis 20 December 2016

  • Coupon clippers

    Euro CLO refi activity to accelerate

    Refinancing activity is expected to accelerate in Europe in the coming year as the cost of funding encourages more CLO managers to employ the option. Anticipating the impending refinancing wave is deemed significant from both a market value and portfolio management perspective.

    "Most European CLO 2.0 deals include provisions for refinancing within the documentation," says Angus Duncan, partner at Cadwalader, .......

    News Analysis 16 December 2016

  • US CLOs keep tight

    US CLO secondary spreads are keeping tight as demand continues.

    "Secondary is still very tight despite the continued flow of re-sets," says one trader. "In particular, the double-B rally continues but is still offering relative value and seeing strong demand."

    The trader adds: "Overall we have created a market where people are happy to chase paper. As a result, secondary .......

    SCIWire 15 December 2016

  • 'Mixed effects' from rate hikes

    The US Federal Reserve has raised interest rates from 0.25% to a range of 0.50%-0.75%, which will have varied implications for structured finance, according to Moody's. The rating agency adds that it expects the Fed to raise rates three more times in 2017 to 1.25%-1.50% year-end.

    Moody's comments that US consumers are generally "well-positioned to cope with rising debt expenses .......

    News Round-up 15 December 2016

  • Euro issuance drops

    €40.2bn of securitised product was issued in Europe in 3Q16, according to AFME's latest securitisation data report. This represents a decline of 46.5% from 2Q16 (€75bn) and a decline of 30.3% from 3Q15 (€57.6bn).

    Of the €40.2bn issued, €16bn was placed (representing 39.8% of issuance), compared to €29.3bn placed in 2Q16 (representing 39.1%) and €18.6bn placed in 3Q15 (representing 32.3%). .......

    News Round-up 15 December 2016

  • Euro secondary unmoved

    The Fed's announcement yesterday appears to have had little effect so far as the European securitisation secondary market resolutely sticks to recent patterns.

    There continue to be pockets of activity across the ABS/MBS secondary market. Tone generally remains positive and spreads unchanged with the exception of Portuguese paper, which continues to edge wider.

    However, CLOs are busier in comparison with .......

    SCIWire 15 December 2016

  • Replacement chiefs named

    Och-Ziff Capital Management has named Alesia Haas cfo and David Levine chief legal officer. Current cfo Joel Frank and chief legal officer David Becker have each decided to retire.

    Haas previously served as cfo and head of strategy for OneWest Bank. Her prior experience includes senior finance, investment and strategy roles with Merrill Lynch and General Electric.

    Levine has been .......

    Job Swaps 14 December 2016

  • US CLOs stay strong

    The US CLO secondary market remains strong.

    "There's not a huge amount going on because of the time of year, but what is trading is trading pretty well," says one trader. "In fact we're trading more CLOs above par than ever before."

    Investor appetite is now evident throughout the capital structure, the trader notes. "For a long time the bottom .......

    SCIWire 13 December 2016

  • Euro ABS/MBS ticks over

    The European ABS/MBS secondary market continues to tick over.

    As with the previous week it's been a solid if unspectacular start to this. BWICs continue to drive the action and trade well. For now, sentiment remains positive, albeit with some softening of tone in weaker peripherals, especially Portuguese names.

    There are currently three BWICs on the European ABS/MBS schedule for .......

    SCIWire 13 December 2016

  • Innovative CLO structured

    AllianceBernstein subsidiary AB Private Credit Investors has priced its inaugural middle-market CLO. Dubbed ABPCI Direct Lending Fund CLO I, the US$351.3m transaction has a unique feature, whereby a pro-rata percentage of both the collateral and notes can be partitioned off into separate entities (ABPCI Direct Lending Fund CLO I First Static Subsidiary and ABPCI Direct Lending Fund CLO I Second .......

    News Round-up 12 December 2016

  • Independent directors named

    TICC Capital Corp has appointed two new independent directors - Richard Neu and George 'Chip' Stelljes - to its board. The appointments expand the number of directors on the TICC Capital board to seven, five of whom are independent. The pair will serve on the company's audit, nominating and corporate governance, valuation and compensation committees.

    Neu previously served as a .......

    Job Swaps 9 December 2016

  • Upstart firm poaches CRE vets

    World Class Capital Group has bolstered its team with several former Credit Suisse hires. The firm has brought on board Paul Smyth, Chris Callahan and Cary Williams, as well as bringing in Jeremy Stoler and Ed Mikus, who will both join in January.

    Smyth is now executive md for World Class Capital and was previously chief credit officer for Credit Suisse's .......

    Job Swaps 9 December 2016

  • US CLOs robust

    The US CLO secondary market remains robust.

    "Everyone is now back from the conference in California and the tone remains positive," says one trader. "Secondary spreads continue to be robust in the face strong new issuance."

    The trader continues: "In contrast to the headwinds we were facing after the conference last year people are now cautiously optimistic. The belief is .......

    SCIWire 8 December 2016

  • Euro secondary keeps positive

    Tone across the European securitisation secondary market continues to be positive.

    After a quiet start to the week, yesterday saw a flurry of BWICs from a range of sectors driving activity, most of which were easily absorbed and traded in line with expectations. Consequently, the bulk of secondary spreads remain unmoved.

    Today sees more supply from a variety of sectors, .......

    SCIWire 8 December 2016

  • Risk retention preparedness polled

    Maples Fiduciary has surveyed its US CLO manager clients to provide an update on manager strategies and preparedness for risk retention. The findings suggest that overall preparedness has increased, compared to the firm's last survey in February, while implemented or planned strategies have been refined ahead of the impending deadline.

    The Maples Fiduciary survey results show that 89% of respondents .......

    News Round-up 6 December 2016

  • Arrow enters Italian market

    Arrow Global Group is entering the Italian market with the acquisition of Zenith Service. It will purchase the servicing business for €17m, subject to regulatory approval by the Bank of Italy.

    Zenith is a leading master servicer in the €168bn Italian structured finance market and also services salary assignment loans (CQS). As of June 2016, the estimated stock of the .......

    Job Swaps 6 December 2016

  • North American outlook 'stable'

    Stability will likely remain for structured finance ratings in the US and Canada next year, although some modest asset-level deterioration is likely as performance in many sectors has peaked, says Fitch. The rating agency adds that annualised net losses for subprime auto ABS could reach 12% in 2017, particularly for less established sub-prime issuers Fitch does not rate.

    The rating agency .......

    News Round-up 6 December 2016

  • Euro secondary quiet

    The European securitisation secondary market has had another quiet start to the week.

    Italy was unsurprisingly the main focus yesterday, but as with broader markets securitisation secondary was little moved and flows were light. Italian paper has edged out a few basis points and there was some softening of tone in other peripherals, but for the most part ABS/MBS secondary .......

    SCIWire 6 December 2016

  • Chinese CLO outlook 'negative'

    The performance of assets backing Chinese auto loan ABS and RMBS will be stable throughout 2017, but negative for CLOs, according to Moody's. The rating agency adds that future deals with high exposures to China's lower-tier cities or industries facing overcapacity issues will underperform.

    Chinese auto ABS collateral is expected to be of good credit quality, so delinquencies will remain .......

    News Round-up 5 December 2016

  • CLO vet recruited

    Fifth Street Finance Corp has appointed Patrick Dalton as ceo and a member of the board, effective on 2 January 2017, succeeding Todd Owens. Concurrently, Ivelin Dimitrov will step down as president, cio and a member of the board.

    Dalton joins Fifth Street from Gordon Brothers Finance Company, where he served as president, ceo and chair of the investment committee .......

    Job Swaps 5 December 2016

  • Allianz absorbs credit manager

    Allianz Global Investors (AllianzGI) has added Sound Harbor Partners to its private debt platform. AllianzGI will acquire Sound Harbor's assets for an undisclosed sum and the Sound Harbor team will join AllianzGI.

    The acquisition will allow AllianzGI's clients to access US private credit investment funds managed by a team with a track record of outperformance. The Sound Harbor team, led .......

    Job Swaps 5 December 2016
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