CLOs

  • US CLO shift

    Attention has shifted away from the US CLO secondary market.

    "The market is very quiet right now," says one trader. "We are seeing a lot of activity in the re-set/refinancing/new issue space and secondary is having to take a back-seat to that."

    At the same time, the trader reports: "There are a lot of bonds sitting on dealer inventory that .......

    SCIWire 4 October 2016

  • Positive returns for CLOIE

    The total amount of CLOs paid down in JPMorgan's CLOIE index since the August rebalance through 30 September was US$2.59bn in par outstanding, split between US$1.18bn and US$1.41bn of pre-crisis and post-crisis CLOs. US$6.5bn across 74 tranches from 15 deals was added to the post-crisis CLOIE segment at the August rebalance.

    All CLOIE sub-indices saw positive returns last month. The .......

    News Round-up 4 October 2016

  • Euro CLOs slumber

    Activity in the European CLO secondary market has ground to a halt.

    "Nothing has really happened in the last week or so," says one trader. "The only action of any note has been in short 1.0s and 2.0 triple-Bs."

    The momentum of the mid-September rally has disappeared thanks to external factors, the trader suggests. "Macro headlines, particularly surrounding European financials .......

    SCIWire 4 October 2016

  • Highland beefs up

    Highland Capital Management has hired Brad Eden as global head of marketing and investor relations. It is a newly created position as the firm continues to build out its international business development team.

    Eden has more than 30 years' experience in a range of institutional investment roles, including co-founding Fund Evaluation Group - an independent institutional consulting firm. He will .......

    Job Swaps 3 October 2016

  • US CLO status quo

    The US CLO secondary market is currently little moved by events surrounding it.

    "Overall, these are interesting times in the primary CLO and loan markets, but that's not feeding through into the secondary market," says one trader. "Volumes are light at the moment - it's still very much the status quo."

    The trader continues: "With the OPEC news hopefully encouraging .......

    SCIWire 29 September 2016

  • US CLOs limited

    The US CLO secondary market is yet to experience the usual post-conference volume boom.

    "Everyone's now back from ABS East, but unusually for just after a conference supply is fairly limited," says one trader. "A lot of people are hesitating and still trying to figure out where we're going from here, even though there's seems to be plenty of real .......

    SCIWire 27 September 2016

  • CLO market 'focus on technicals'

    The US CLO market is focussed on technicals, with fundamentals and credit concerns taking a back seat, according to Wells Fargo analysts. They add that the outlook for continued or increasing overseas investment in CLOs remains a primary concern.

    While many industry participants at this week's ABS East conference are bullish on Q4 spread tightening, the Wells Fargo analysts comment .......

    News Round-up 22 September 2016

  • Reported CLO WAS levels diverging

    Deal-reported weighted average spread (WAS) of collateral in European CLOs has been rising, while for US CLOs it has been falling. This has pushed WAS test cushions close to breaching for US CLOs and is expected to impact equity cash distributions.

    Unlike computed WAS, reported WAS typically includes the Libor-floor benefit. While the reported WAS in US CLOs has been .......

    News 22 September 2016

  • Dock Street brought in for CRE CDO

    Dock Street Capital Management has been named as replacement collateral administrator to JPMorgan-CIBC 2006-RR1. Under the terms of the appointment, Dock Street will now assume all responsibilities, duties and obligations of the collateral manager under the applicable terms of the collateral administration agreement.

    Moody's says there will be no rating impact, in part due to Dock Street's experience and capacity to .......

    Job Swaps 21 September 2016

  • High CLO supply

    US CLO supply last week was the highest for the year as four new issues and two refis priced for a total of US$3.61bn. The rolling four-week average of new issuance has been trending higher all year and has reached US$2.3bn.

    Year-to-date supply is US$58.9bn on 136 CLOs. According to JPMorgan figures, this includes 16 US refis at US$5.46bn. The .......

    News 20 September 2016

  • Virtus expands European arm

    Virtus Partners has made three senior hires as it expands its European activities. Dean Fletcher is hired as chief strategy officer, Dermot Caden as head of European Regulated Fund Administration and Jennifer Nolan as senior director of its Dublin arm.

    Nolan has over 15 years' industry experience, having previously worked at BNY Mellon Corporate Trust for nine years. She has .......

    Job Swaps 19 September 2016

  • Software firm acquires GFS

    SS&C Technologies has acquired Wells Fargo Global Fund Services (GFS), adding 250 employees to its business. They will serve over 130 global fund relationships and help build on the administrator's ability to handle complex asset classes.

    Both firms hope to benefit from the deal with SS&C gaining from GFS' fund administration expertise, which includes a wide range of complex strategies .......

    Job Swaps 16 September 2016

  • US CLOs easing up

    The US CLO secondary market rally is easing up ahead of next week's ABS East Conference, but activity still remains solid.

    "There's been around a 5bp tightening in the last few sessions in the triple-As to single-As, but it's slowed up a little with the Bs," says one trader. "Good names in double-Bs are hitting in and around the low .......

    SCIWire 15 September 2016

  • Euro CLOs stay active

    The European CLO secondary market is continuing to see healthy levels of activity.

    "There's been lots of secondary supply over the past week and we've seen some aggressive two-way trading in both 1.0s and 2.0s," says one trader. "However, 2.0 levels are still pretty much unchanged, though double-Bs have moved a little tighter despite the recent weakness in rates and .......

    SCIWire 15 September 2016

  • CLO UCITS fund debuts

    Fair Oaks Capital has launched the first UCITS fund to offer global access to senior secured corporate loans through investments in CLOs. The Fair Oaks Dynamic Credit Fund is actively managed, with a strong emphasis on bottom-up fundamental credit analysis.

    The fund primarily seeks exposure to investment grade rated CLO securities on a long-only basis, with no leverage used at .......

    News Round-up 14 September 2016

  • US CLOs keep busy

    The US CLO secondary market is continuing to see a healthy amount of lists in the lead up to the ABS East conference next week.

    "We're seeing a lot of volume today, which includes a large equity-dominated BWIC," says one trader. "I wouldn't expect everything to trade, but there are some interesting pieces in there that will likely go."

    Meanwhile .......

    SCIWire 13 September 2016

  • Chinese issuance gains momentum

    China's structured finance market will continue expanding in both scope and scale, with increased asset class diversification, says Fitch. A total of CNY193.4bn of Chinese structured finance transactions were issued in 2Q16, representing a 96% year-over-year increase.

    In its latest quarterly publication on Chinese structured finance, the rating agency says the increase in issuance was principally driven by 242% growth .......

    News Round-up 13 September 2016

  • Euro secondary unmoved

    The European securitisation secondary markets have been unmoved by recent broader market volatility.

    Tone continues to be positive across the board and secondary spreads were generally insulated from last week's wider market sell-off. Whereas, boosted by the stronger macro sentiment seen yesterday afternoon widespread tightening looked set to resume at this morning's open.

    Shortage of primary supply continues to be the .......

    SCIWire 13 September 2016

  • CIFC pair jump ship

    MidOcean Partners has hired Spencer Potts and Ruth Lane from CIFC, with the former coming in as head of business development and the latter as head of investor relations. They join following the recent announcement that FAB Group is set to acquire CIFC for approximately US$333m (SCI 23 August).

    Prior to joining MidOcean, Potts was head of business development at .......

    Job Swaps 9 September 2016

  • US CLOs still tightening

    The US CLO secondary market is continuing its summer surge into September.

    "The key theme is that spreads are continuing to tighten, particularly in the senior territory," says one trader. "Double-As and triple-As are trading either close to or above par. There is also a triple-A BWIC today that includes some decent names and should perform similarly."

    Meanwhile, the spread .......

    SCIWire 8 September 2016

  • Euro CLO rally continues

    The widespread tightening in the European CLO secondary market is continuing.

    "We saw the rally accelerating in the second half of August and that's kept going in September so far," says one trader. "Tightening hasn't been the usual summer result of just a handful of trades - there were a lot of flow trades in August and that's carried on .......

    SCIWire 8 September 2016
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