CLOs

  • 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

  • Euro secondary softens

    Declines in the bond market have begun to feed into the European securitisation secondary market.

    While sentiment continues to be generally positive across secondary, investor interest appears to have thinned since the end of last week with the spike in rate volatility. At the same time, some softness is appearing in spreads in certain sectors.

    Peripheral and UK RMBS are .......

    SCIWire 15 November 2016

  • US CLOs unmoved

    US CLO secondary spreads remain unmoved despite the election result.

    "It's certainly been interesting," says one trader. "If you'd told me two days ago that we'd have a Trump victory and CLOs would be unchanged I would've said you were crazy, but that's what's happened."

    The trader continues: "A lot of dealers came in in the middle of the night .......

    SCIWire 10 November 2016

  • Euro CLO refis anticipated

    Strong issuance in Q3 of €4.63bn broke the quarterly record for the European CLO 2.0 market. Lower spreads at the top of the stack could incentivise older 2.0 transactions to refinance, which the secondary market should start to price in.

    That previous record quarter was Q2, when €4.56bn was issued. Back in 3Q15, issuance was just €2.5bn.

    Issuance for the .......

    News Round-up 10 November 2016

  • Healthcare exposure highlighted

    Moody's reports that the healthcare sector is the largest industry exposure among the European CLO 2.0 deals it rates, accounting for 14% of collateral. While the credit quality of the issuers is slightly lower than for the broader CLO 2.0 universe, the rating agency has a positive outlook for the sector due to a number of market and fundamental factors.

    News Round-up 10 November 2016

  • Euro secondary stable

    The European securitisation secondary market remains stable despite wider market volatility.

    The continuation of the buying bias and positive tone seen in secondary ABS/MBS in recent weeks ensured all sectors remained insulated from the big moves seen in equities and broader credit yesterday. Consequently, spreads were unchanged on the day and have stayed the same into this morning's open.

    Inevitably .......

    SCIWire 10 November 2016

  • Manager makes double grab

    ZAIS Group has hired Ahrash Daneshvar and Iris Arrington to its London office. Daneshvar takes up the role of md and Arrington, vp of client relations.

    In his new role, Daneshvar will work on ZAIS's credit derivatives and quantitative trading strategies. He brings nearly two decades of structured credit and derivatives experience to the firm, after spending ten years at .......

    Job Swaps 9 November 2016

  • US CLOs resilient

    The US CLO secondary market continues to hold up in the face of primary activity and the US election.

    "New issues, refis and resets keep coming, but secondary has remained resilient in spite of the high volume of supply," says one trader. "We continue to see good demand throughout the capital structure, but particularly in triple-As at the moment, which .......

    SCIWire 8 November 2016

  • Duration extension considered

    Fair Oaks Income Fund reports that the commitment period of the master fund ended in June. The company has subsequently introduced a redemption mechanism to return to shareholders capital realised from the fund and has made its first distribution under that mechanism.

    However, Fair Oaks Capital believes that there is an ongoing opportunity to invest in US and European CLOs .......

    News Round-up 7 November 2016

  • Och-Ziff debuts Euro CLO

    Och-Ziff Europe Loan Management has priced its debut European CLO - the €413m OZLME. The senior notes continued the slew of sub-110bp prints seen last month (see SCI's new issue database).

    Rated by Moody's and S&P, the transaction comprises €230m Aaa/AAA rated class A notes (which priced at three-month Euribor plus 103bp), €63m Aa2/AA class Bs (plus 165bp), .......

    News Round-up 7 November 2016

  • US CLOs strong

    Levels and activity are still strong in the US CLO secondary market, particularly lower in the stack.

    "It's pretty busy in secondary even though the mad rush to print new issues is continuing," says one trader. "We're seeing a lot of mezz and equity going through at the moment - there are triple-A buyers out there, but not in force."

    SCIWire 2 November 2016

  • Combo repacks emerging

    Several CLO combo notes on downgrade watch, following Moody's updated methodology for the instrument (SCI 10 October), have been resolved via dual-tranche repacks with the aim of keeping the rating stable. The rating agency is reviewing 38 securities backed by CLO debt and equity tranches after adding a refinancing scenario to its approach.

    Moody's will no longer assign new ratings .......

    News 2 November 2016

  • Limited upside for CLOs?

    The total amount of CLOs paid down in JPMorgan's Collateralized Loan Obligation Index (CLOIE) since the September rebalance through 31 October was US$13.02bn in par outstanding, split between US$3.37bn and US$9.66bn of pre-crisis and post-crisis CLOs. US$8bn was added to the post-crisis CLOIE last month across 94 tranches from 22 deals.

    All CLOIE sub-indices have now seen positive monthly total .......

    News Round-up 2 November 2016

  • Euro secondary patchy

    Activity in the European securitisation secondary market continues to be patchy.

    After a primarily quiet week last week, Friday saw a slight pick-up in volumes, which followed through into Monday in advance of month-end. However, activity across the board remains patchy and is further hampered by European public holidays this week and broader market volatility driven by negative headlines in .......

    SCIWire 2 November 2016

  • Flurry of CLOs continues

    US CLO issuance rose last quarter, along with refinancing activity on existing CLOs, according to Fitch's latest Global CLO Market Trends Quarterly. The agency reports that 36 US CLOs totalling over US$18bn came to market in 3Q16, higher than the US$16.5bn (39 CLOs) figure seen in 2Q16.

    In fact, September claimed the highest volume of issuance, with 15 CLOs totalling .......

    News Round-up 28 October 2016

  • US CLOs partly pause

    Aside from a busy equity space, the US CLO secondary market is taking something of a pause.

    "Last week and this secondary overall has been bit quieter," says one trader. "People are generally happy to take a breather after the previous few weeks being so busy."

    The trader adds: "CLO market focus continues to be on primary issuance on both .......

    SCIWire 27 October 2016

  • CLO defaults slow down

    US CLO loan defaults have slowed down in Q3, though the pull-back will be short-lived, according to Fitch's latest index for the sector. The agency attributes the slow-down to debt restructuring of several defaulted companies over the past quarter.

    The CLO index though remained flat at 6.4% of the US$135.7bn portfolio, indicating the temporary nature of the slow-down. The energy .......

    News Round-up 26 October 2016

  • Credit manager adds partner

    River Birch Capital has recruited a former Pine River Capital Management portfolio manager. Gaurav Tejwani joins the firm in New York as a partner.

    Tejwani was co-head of structured credit at Pine River. He was previously part of the Y-Point Financials team which moved to Pine River, and before that he worked in credit derivatives and structured credit at Barclays .......

    Job Swaps 26 October 2016

  • US CLOs tick over

    US CLO secondary market continues to tick over despite continued distraction from primary.

    After a busy end to last week, secondary activity and the BWIC calendar is light so far this week as focus remains on primary. Secondary spreads continue to hold firm across the bulk of the capital structure as a buying bias prevails and supply continues to be .......

    SCIWire 25 October 2016

  • Group sells debt division

    3i Group has sold its debt management business, 3iDM, to Investcorp. The sale will generate £222m in cash for 3i and an exceptional profit on disposal of £36m, subject to closing adjustments that are dependent on the transaction's completion date.

    The proceeds of the deal will be reinvested in 3i's private equity and infrastructure divisions. The transaction is set to .......

    Job Swaps 25 October 2016

  • Tikehau takes over senior debt funds

    Tikehau Capital has reached an agreement with Lyxor UK to manage the investments of Lyxor's European senior debt funds. The deal will allow Tikehau to expand its leveraged loans and CLO business from €1.9bn AUM to €2.6bn.

    Tikehau will replace Lyxor as investment manager of Lyxor's four European senior debt funds, while Lyxor's European senior debt operational team will join .......

    Job Swaps 25 October 2016
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