CLOs

  • APAC solutions unit formed

    Natixis has appointed Fabrice Guesde as head of global structured credit & solutions (GSCS), Asia Pacific, to lead the newly-created unit. Based in Hong Kong, he reports to GSCS global head Emmanuel Lefort and locally to APAC fixed income head Viet-Linh Ha Thuc.

    Guesde has been with Natixis since 2006, latterly in Paris as head of credit & insurance solutions. .......

    Job Swaps 22 April 2016

  • Combo note RFC issued

    Moody's has proposed revisions to how it rates combination securities - otherwise referred to as combo notes. These products are CDOs or CLOs that typically combine their equity with either secured notes from the same transaction or other securities, such as Treasury STRIPS.

    Underlying securities for combo notes are referred to as components. Moody's says that combo note ratings may be sharply .......

    News Round-up 22 April 2016

  • US CLO patterns persist

    Activity and trading patterns in the US CLO secondary market are persisting.

    "It's still busy with the same kinds of themes continuing," says one trader. "We're generally bid on across most of the stack, non-Volcker paper is a bit behind, but there is still a bid there as well."

    Nevertheless, the trader adds: "We did see a handful of DNTs .......

    SCIWire 21 April 2016

  • CLO default risks amp up

    US CLOs are becoming more exposed to the rising number of defaulted issuers, according to Fitch's latest index results for the sector. The exception are triple-A rated tranches, which should remain shielded from potential downgrades.

    Approximately 70% of 233 deals in Fitch's index had exposure to at least one defaulted issuer in 1Q16, with 16% exposed to at least three defaulted issuers. .......

    News Round-up 21 April 2016

  • Euro secondary scrappy

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

    Sentiment remains very positive across the vast majority of securitisation sectors in line with wider markets. However, lack of supply is still hampering any sizeable cohesive trading.

    The closest to that yesterday came in Italian paper. There, following strong prints on the 11:00 Italian RMBS BWIC there was an .......

    SCIWire 21 April 2016

  • Euro CLOs active

    The European CLO secondary market continues to be active both on- and off-BWIC.

    "Despite limited direction from primary, the secondary market is still strong," says one trader. "There have been quite a few BWICs in the past couple of sessions and they continue to trade well."

    The trader continues: "Triple- and double-Bs remain the major focus. Yesterday we saw triple-Bs .......

    SCIWire 20 April 2016

  • US CLO calls climb

    US CLO calls continued to increase last year, as JPMorgan analysts estimate 76 CLO 1.0s and 13 CLO 2.0s were called. While they expect prepayments to remain light in 2016, the analysts believe the recent rally in loan prices could see an even greater rate of optional redemptions.

    The 89 CLOs called last year compare to 85 called in 2014 .......

    News 20 April 2016

  • Special situations analyst added

    TCW Group has appointed Steven Purdy to its fixed income credit research group as md and special situations analyst. He will take responsibility for analysing and identifying credit opportunities with companies in stressed and distressed situations.

    Purdy is based in Los Angeles and reports to Jamie Farnham, director of credit research. He was previously based in London with TPG Capital .......

    Job Swaps 20 April 2016

  • US CLOs remain robust

    The strong market tone in the US CLO secondary market is continuing and supporting ever-narrowing spreads.

    "The market remains robust and the consensus appears to be that we'll continue to move tighter," says one trader. "The overall positive feeling helped to ensure that secondary held up pretty well at the end of last week when things looked to be getting .......

    SCIWire 19 April 2016

  • Bidding goodbye?

    BDCs face uncertain future as market turns

    BDCs and other listed vehicles are coming under increasing pressure - not least from their shareholders - to change the way they operate in the structured credit market. In some instances, they are being forced out of the sector altogether.

    A raft of firms have already either liquidated or cut their fees so as to better align themselves with investors. .......

    News Analysis 19 April 2016

  • Distressed strategist brought in

    GSO Capital Partners has recruited David Flannery as senior md, focusing on distressed strategies in both private and public markets. He joins the Blackstone subsidiary from Anchorage Capital Group, where he focused on illiquid credit opportunities and CLOs.

    Flannery also previously worked at Bank of America Merrill Lynch, in various roles that included chief risk officer of global banking and markets and .......

    Job Swaps 19 April 2016

  • Euro secondary stable

    The European securitisation secondary market continues to be stable despite wider market vacillation yesterday.

    A buying bias across asset classes remains apparent, but limited secondary supply is keeping activity patchy. Bolstered by new issuance UK RMBS is seeing some action and spreads are holding up despite the evolving Brexit story. Selective trading in CMBS and some high profile prime names .......

    SCIWire 19 April 2016

  • CVC CLO stake sold

    Electra Partners has made a £19m investment in CVC Credit Partner's Cordatus Loan Fund VI. The €400m CLO is backed by leveraged loans issued by predominantly private equity-backed companies in Europe.

    The transaction has a 13-year life and will be invested in approximately 100 individual credits. Electra's investment is a majority interest in the CLO's equity and was made through .......

    News Round-up 18 April 2016

  • Euro CLOs stay active

    The recent uptick in activity in the European CLO secondary market is continuing.

    "There's more activity across the board thanks mainly to primary continuing to tighten, which gives people comfort that primary and secondary are more aligned," says one trader. "Consequently, the secondary market appears to be getting back to normal."

    However, the trader continues: "That said, it can still .......

    SCIWire 14 April 2016

  • US CLOs add variety

    It looks set to be another busy day in the US CLO secondary market with today's auction schedule involving more than mezz paper for once.

    "People keep putting out lists and they continue to trade well, we're even seeing some decent size triple-As today," says one trader. "Primarily it's still all about the bottom of the stack where, for example, .......

    SCIWire 13 April 2016

  • On the rebound

    US CLO spreads, issuance rallying

    The December to February period was the worst experienced by the US CLO market since the financial crisis, but the subsequent rally in commodities and high yield has enabled most of the returns lost during that period to be regained. Cleaner portfolios of new deals, together with tightening spreads, are expected to support a growing primary market for the rest .......

    News Analysis 13 April 2016

  • Euro secondary selective

    Trading continues to be selective across the European securitisation secondary market.

    "Yesterday we saw some action in prime," says one trader. "On BWIC there was a reasonably large Dutch RMBS list that traded at very tight levels - four-year STORM in the +25 area, for example. At the same time, UK prime saw two-way flows and having been under a .......

    SCIWire 13 April 2016

  • US CLOs continue

    The positive trend in the US CLO secondary market is continuing.

    "Demand for bonds continues and consequently they continue to trade well," says one trader. "It's very noticeable that the number of line items that actually trade is much higher than it was even a month ago."

    The trader continues: "We're now into the fifth week of this rally and .......

    SCIWire 12 April 2016

  • Retail heads CLO fears

    Retail is seen as the most troubling non-commodity sector for the global CLO market, according to the results of JPMorgan's latest quarterly client survey. It stands way ahead of the healthcare and technology sectors in joint second, receiving 3.3 times more votes from respondents.

    The question surrounding non-commodity sectors emanates from recent volatility in high yield credit markets and broader macro concerns. .......

    News Round-up 12 April 2016

  • Euro secondary solid

    The European securitisation secondary market remains solid but fairly quiet.

    Tone remains firm across the board though activity is still patchy. An uptick in flows and secondary supply in the middle of last week fizzled out by Friday and yesterday was no different with only very select pockets of activity, which is keeping spreads range-bound.

    Notably, Italian paper did manage .......

    SCIWire 12 April 2016

  • Special forces

    ABS dealer tiering emerging via departures, specialisation

    Credit Suisse's recent decision to exit securitised trading in Europe highlights the reshaping of the ABS frontier that is underway across the region. Against the backdrop of regulatory pressures and capital constraints, many dealers are adopting a narrower, more specialised approach.

    In its announcement, Credit Suisse said the reason for ceasing its European ABS trading operations is due to a .......

    News Analysis 8 April 2016
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