CLOs

  • 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

  • SMART CLO objections flagged up

    The potential disposal of non-performing assets, as previously proposed by SMART SME CLO 2006-1, has been opposed by noteholders who assert that it would be in breach of the terms of a CDS between the issuer and swap counterparty, Deutsche Bank Frankfurt. As well as problems with the CDS, the noteholders have identified issues with the bank account agreement.

    The .......

    News Round-up 5 December 2016

  • Euro CLO involvement to broaden

    The European CLO investor base should broaden in 2017, with some interest from institutions in east Asia, says Moody's. The agency anticipates €13bn-€15bn of new European CLO issuance across 30-35 new transactions, compared to €14.6bn from 37 transactions in 2016 so far.

    "We expect US CLO managers to enter the European market. That said, investor interest in multi-currency deals will .......

    News Round-up 2 December 2016

  • Post-crisis single-Bs outperform

    The total amount of CLOs paid down in JPMorgan's Collateralised Loan Obligation Index (CLOIE) since the October rebalance through 30 November was US$9.62bn in par outstanding, split between US$1.96bn and US$7.66bn of pre-crisis and post-crisis CLOs. US$17.3bn was added to the post-crisis CLOIE across 182 tranches from 40 deals at the November rebalance.

    CLOIE extended a streak of five straight .......

    News Round-up 2 December 2016

  • US CLOs keep busy

    The busy end to November has continued into December for the US CLO secondary market.

    "Secondary is a little busier than it has been," says one trader. "Trading desks have had a very good year and are now looking to position themselves for next year."

    This week's pick-up in secondary volumes is being assisted by a couple of additional factors, .......

    SCIWire 1 December 2016

  • Recovery analysis RFC issued

    S&P is requesting feedback on its structured finance recovery analysis of US RMBS, US and Canadian CMBS and global CLOs. The rating agency's intention is to provide information that looks beyond its first-dollar-of-loss credit ratings in cases where its credit ratings are limited because of timeliness of payments, and to facilitate greater credit differentiation within its existing credit rating categories.

    News Round-up 30 November 2016

  • CLO performance predicted

    US CLO performance should be stable in 2017 as corporate defaults recede, says Moody's. Despite a weak macro outlook, European CLO performance should also be stable.

    The credit quality of loans in new US CLOs is anticipated to weaken, despite regulatory discipline, as investor demand for loans outstrips supply. CLO credit quality is not expected to change substantially, with the .......

    News Round-up 30 November 2016

  • US CLOs pick-up

    US CLO BWIC volumes are picking up post-Thanksgiving.

    "We're seeing a spike in BWIC volume over the next few days, which isn't unusual after a long holiday-related gap in activity," says one trader. "Today primarily involves single-As and some double-As driven by a long list from a large insurance company testing the market; while tomorrow's highlight is a sizeable equity .......

    SCIWire 29 November 2016

  • Euro secondary surge

    There is a surge in activity throughout the European securitisation secondary market.

    Activity has picked up across the board following the US holiday last Thursday and this week is seeing a notable pick-up in BWICs either side of month-end. Until now the buying bias remains and spreads have held up in the majority of sectors. However, continuing concern around the .......

    SCIWire 29 November 2016

  • Digging deeper

    US CLOs becoming 'riskier', but investors remain optimistic

    A recent JPMorgan study of 48 US CLOs shows that from 2013 to date there has been an average increase in WARF score from 2,719 to 2,899, while yields have decreased on average 48bp. The findings suggest that investors are not being adequately compensated, but market participants remain optimistic about the sector.

    Mike Terwilliger, md and global portfolio manager for .......

    News Analysis 28 November 2016

  • French firm makes senior hire

    Cartesia has hired Jérôme Anglade as partner and md. He will be in charge of the CLO and structured credit business, working alongside Tanguy Boullet and Hadrien Carré.

    Anglade has 20 years' experience in structured credit, including 11 years at Morgan Stanley in London, where he was responsible for the European structured credit business. He also has experience in marketplace .......

    Job Swaps 28 November 2016

  • CLO firm nabs sales pair

    Palmer Square Capital has hired Brad McClintock and Michael Daniel for its business development team. They will focus on expanding the firm's investor outreach across its fund and separately managed accounts.

    McClintock takes up the role of svp in business development at Palmer Square Capital. Prior to this role, he was svp in institutional sales for Scout Investments.

    Daniel will .......

    Job Swaps 25 November 2016

  • Cov-lite CLO prepped

    Highbridge Capital Management subsidiary HPS Investment Partners is in the market with a new CLO (see SCI pipeline), which will allow up to 80% of the loans in its collateral pool to be covenant-lite. HPS Loan Management 10-2016 has been provisionally rated by S&P and sized at US$410.4m.

    The US$249m class A1 notes have been provisionally rated triple-A. .......

    News Round-up 24 November 2016

  • US CLO slowdown

    The slowdown towards the Thanksgiving holiday looks to have begun in the US CLO secondary market.

    Yesterday saw a flurry of BWIC activity, which made for a slightly busier than of late Monday. However, the five lists that went through didn't buck recent pricing trends, though there was some surprise in that no colour at all was released from the .......

    SCIWire 22 November 2016

  • Euro CLOs mixed

    European CLOs are experiencing mixed fortunes in the secondary market depending on maturity and part of the stack.

    "Overall, secondary volumes are down as everyone prepares for year-end," says one trader. "However, we're still doing a fair bit in investment grade flows - particularly triple-As of all vintages - but any bids for non-IG 2.0 paper are now opportunistic ones."

    SCIWire 22 November 2016

  • Fine tailoring

    CLOs to remain buoyant into 2017, despite loan fund competition

    Open-ended loan funds in Europe have grown in volume, attracting institutional investors hungry for yield, while fears over a Fed rate rise has reversed outflows from loan funds in the US. Although loan funds globally could pose a threat to CLOs in terms of issuance and investor appetite, the sector will continue to be buoyed by investors that employ a .......

    News Analysis 18 November 2016

  • US CLOs trundle on

    The US CLO secondary market continues to trundle on in a positive manner albeit without a resurgence in activity.

    "It's stayed quieter this week and certainly any expectation of a post-Trump victory sell-off hasn't materialised," says one trader. "People are looking for volatility before they act, but for now there's none in the CLO space."

    Indeed, the trader continues: "I .......

    SCIWire 17 November 2016

  • Investment firm adds advisors

    Strategic Value Partners has added Goran Puljic and David Weaver to its advisory council. Puljic was previously a partner at Oak Hill Advisors, while Weaver was chairman and ceo of Jefferies International.

    Puljic has 30 years of experience in financial services, mainly in CLOs and structured products. He was co-head of Oak Hill's corporate structured products group until stepping down .......

    Job Swaps 17 November 2016

  • CLO vet poached

    Nassau Re has hired Alex Jackson as md for bank loan portfolio management. In his new role, he will be focused on building out the firm's CLO management and bank loan investment portfolios.

    Prior to Nassau Re, Jackson headed Insight Investments' bank loans team in affiliation with Cutwater Asset Management and BNY Mellon. Before joining Cutwater in 2013, he was .......

    Job Swaps 17 November 2016

  • US CLOs slow

    Activity in the US CLO secondary market continues to be very light post-election and last Friday's holiday.

    "It's very, very slow with no volume to speak of on BWIC," says one trader. "The most notable list today is a mix of mezz and equity, but we're not even sure if all of that will trade and the seller is often .......

    SCIWire 15 November 2016

  • CLO duo promoted

    Oaktree Capital has promoted James Turner and Madeleine Jones to jointly lead the European credit team. This comes after Shannon Ward announced her departure to take up a new role in Los Angeles, although she will stay on for a period to ensure a smooth transition.

    Turner has been with Oaktree since 2001 and was previously co-portfolio manager for Oaktree's .......

    Job Swaps 15 November 2016
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