CLOs

  • Euro secondary sidelined

    The European securitisation secondary market remains quiet as participants continue sit out wider market volatility.

    "It's understandably very quiet as everyone watches what's going on in banks and financials, which is brutal to say the least," says one trader. "The majority of investors we speak to are planning on staying on the sidelines - everyone is in risk-off mode."

    However, .......

    SCIWire 9 February 2016

  • Originator fund eyes broader investment

    Blackstone/GSO Loan Financing - which currently invests predominantly in CLO income notes - is seeking shareholder approval to permit investment in all debt tranches of CLOs and loan warehouses, as well as in exposure to risk retention entities. The amendments to the investment policy will enable the company to invest in Blackstone/GSO US Corporate Funding (US MOA), a newly-formed entity.

    Job Swaps 8 February 2016

  • CLO asset slip to affect OC cushions

    So far this year over 1.4% of the assets held within US CLOs have been placed on creditwatch with negative implications or had ratings lowered, says S&P. Another 0.9% have had ratings raised or been placed on creditwatch with positive implications.

    The net result was a slight deterioration in the overall credit quality of US CLO assets, which S&P notes .......

    News Round-up 8 February 2016

  • Euro secondary lacklustre

    Friday saw another lacklustre session in the European securitisation secondary market.

    Macro market weakness once again kept investors stuck on the sidelines. Consequently, flows were light and spreads were broadly range-bound.

    Prime assets were once again the positive area with two-way flows albeit at low volumes focused at the front end of the curve. Meanwhile, non-eligible peripheral bonds remain the .......

    SCIWire 8 February 2016

  • Goldman credit team formed

    Goldman Sachs is creating a new credit group that will combine its structured and leveraged finance businesses, as well as integrate its financial and strategic advice in these areas. Americas Credit Finance Group will be led by co-heads Christina Minnis and Vivek Bantwal, following the retirement of Craig Packer, who was co-head of the bank's leveraged finance unit in the Americas.

    Minnis was the .......

    Job Swaps 5 February 2016

  • Euro secondary varies

    Volumes continue to be light in the European securitisation secondary market with performance still varying sector by sector.

    CMBS continues to be one of the strongest sectors. Prices remain well-supported and yesterday's €45m BWIC traded well.

    Prime assets are still seeing two-way flows albeit at much lower volumes than previous weeks. Buying interest in short-dated paper remains the dominant theme, though .......

    SCIWire 5 February 2016

  • US CLOs down but not out

    Despite the current downward trend in prices there are signs that US CLO secondary market is attempting to pick itself up.

    "It's not a pleasant picture for sellers right now," says one trader. "There were a couple of lists from people that had to sell yesterday and they found some really weak bids."

    The big news overnight was that the .......

    SCIWire 4 February 2016

  • STS expected losses highlighted

    Preferential capital treatment for simple, transparent and standardised (STS) securitisations would be consistent with the superior performance of STS-compliant tranches, says Fitch. However, the proposed capital charges are still significantly higher than expected losses.

    Fitch expects losses of 1% for STS-compliant deals and 4.3% for non-STS deals. "This suggests that lower capital charges for STS tranches than for non-STS tranches .......

    News Round-up 4 February 2016

  • Euro secondary difficult

    Wider market weakness continues to make life difficult in the European securitisation secondary market.

    "Yesterday conditions were once again difficult thanks to the global meltdown," says one trader. "As a result, flows and liquidity in our space were very thin."

    However, the trader adds: "We are still seeing some pockets of activity - particularly in short-term bonds across a range .......

    SCIWire 4 February 2016

  • Euro CLOs patchy

    The European CLO secondary market is currently experiencing patchy trading.

    "Overall, there's not much happening with only pockets of activity," says one trader. "There's really very little demand for 2.0s, but we are seeing interest in short 1.0s - where there is a possibility of a call or some other potential trigger to early pay-back."

    Recent focus, instead, has been .......

    SCIWire 3 February 2016

  • CLO manager takeover completed

    Conning has completed its acquisition of CLO and high yield bond specialist Octagon Credit Investors (SCI 6 November 2015). As of 31 December 2015, Octagon managed US$12.6bn in assets. It is headquartered in New York.

    .......

    Job Swaps 3 February 2016

  • Business development leader added

    ZAIS Group has appointed Gregory Barrett as head of client relations and business development. He reports to ceo Michael Szymanski and is based in Red Bank, New Jersey.

    Barrett will work with the firm's client relations team, portfolio managers and cio to lead and create distribution strategies for ZAIS. He will also be responsible for client service for investors.

    Barrett .......

    Job Swaps 3 February 2016

  • US CLOs see slight return

    The US CLO secondary market is seeing a slight return to life.

    "The market is picking up a bit and there are few things going on," says one trader. "But it's still more about people feeling around for levels and direction."

    The trader continues: "There are a few equity axes flying around for both the newer vintage more liquid stuff .......

    SCIWire 2 February 2016

  • CLO concerns 'beyond commodities'

    Focus on industry-wide commodity-related stress could overshadow defaults of isolated non-commodity issuers that are prevalent in US CLOs, says Fitch. Millennium Health, which filed for Chapter 11 bankruptcy in November (SCI 10 November 2015), provides a recent example.

    Millennium Health was held in more than 50 Fitch-rated CLOs. The agency notes that its default was the main reason behind a .......

    News Round-up 2 February 2016

  • Euro secondary still slow

    It continues to be a slow start to the month for the European securitisation secondary market.

    "It was very quiet again yesterday," says one trader. "There was one Italian CMBS BWIC that traded well, but that aside very little happened in our market."

    The trader continues: "Today has started similarly quietly. It looks likely to be more of the recent .......

    SCIWire 2 February 2016

  • Distressed credit vet tapped

    Black Diamond Capital Management has appointed Todd Arden as senior md and co-chief credit officer. He will have responsibility for co-managing Black Diamond's underwriting processes and credit exposures, as well as sourcing stressed and distressed investment opportunities for the firm's funds.

    Arden will be based in Black Diamond's Greenwich, Connecticut office, and brings over 20 years of experience in the .......

    Job Swaps 1 February 2016

  • Euro secondary quiet

    Month-end made for a relatively quiet session on Friday for the European securitisation secondary market and today is starting out in similar fashion.

    Despite limited activity secondary market tone remains broadly positive in line with improving wider credit. Prime assets are once again leading the way and spreads in the sector continue to edge in.

    At the same time Italian .......

    SCIWire 1 February 2016

  • CIFC sale considered

    CIFC has retained JPMorgan to assist it in exploring a range of strategic alternatives to enhance shareholder value and capitalise on its industry-leading platform. Such alternatives may include a sale of the company or the sale of a stake in the company to a strategic investor, with the objective of accelerating its growth and diversification initiatives.

    CIFC says it has .......

    Job Swaps 29 January 2016

  • Euro secondary sees more of the same

    It was a case of more of the same in the European securitisation secondary market yesterday.

    Flows dried up a little yesterday, but the market remained relatively stable and saw a continuation of recent trading patterns. Dutch RMBS spreads edged in a little further and buying interest continued to be seen in peripherals, especially Spanish bonds.

    At the same time, .......

    SCIWire 29 January 2016

  • Law firm promotes SF pros

    Cadwalader has elected new partners and made promotions to special counsel, with a number of structured finance and credit derivatives lawyers rising through the ranks. These include Dorothy Mehta, Bonnie Neuman, Amy Ray, Kahn Hobbs and Nathan Spanheimer.

    Mehta is based in New York. She is a partner in the firm's financial services group and a leader in its investment management .......

    Job Swaps 28 January 2016

  • US CLOs seek clarity

    The US CLO secondary market is still struggling for price clarity.

    "We are seeing some secondary trading, but certainly not a lot of colour from it," says one trader. "Also, a few new deals are supposedly due to price this week, but it's getting late for that to happen. So, overall, the CLO market is struggling for definition."

    Nevertheless, there .......

    SCIWire 28 January 2016
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