CLOs

  • US CLOs lose momentum

    The US CLO secondary market looks to have lost its momentum as quickly as it appeared yesterday.

    The high proportion of DNTs seen across yesterday's BWICs combined with broader market volatility looks to have stemmed selling volume for now. As the market awaits the Fed later today there are only two CLO auctions due and only limited bilateral activity elsewhere. While .......

    SCIWire 16 December 2015

  • Euro secondary split

    Activity and price direction in the European securitisation secondary market is currently split in two key sectors.

    "In common with broader credit, overall volumes are low and liquidity is very thin," says one trader. "It's a result of both the time of year and the volatility in global markets."

    However, within securitisation secondary it continues to be a story of .......

    SCIWire 16 December 2015

  • US CLO supply surge

    After a quiet few days US CLO BWIC supply has picked up today.

    "We're seeing a lot more lists today," says one trader. "I don't think it's anything to do with the Fed tomorrow, it looks like it's just sellers trying to get in ahead of any more bad stuff in commodities."

    List volume aside, the market is exhibiting the same .......

    SCIWire 15 December 2015

  • Euro secondary hangs on

    European securitisation secondary spreads are mostly hanging on despite increasing broader market volatility but there are some signs of softening.

    In the end, a handful of BWICs emerged yesterday and provided the main focus. However, the highlight, a double-B CLO list, for the most part did not trade. The covers released indicated spread widening in the sector, though the trend .......

    SCIWire 15 December 2015

  • Euro secondary stays slow

    It was, as anticipated, another quiet day in the European securitisation secondary market on Friday and today looks likely to be little different.

    Year-end liquidity thinning continues to hold sway across all sectors. However, market tone remains positive despite broader credit weakness and secondary spreads are generally holding up.

    There are currently no BWICs on the European schedule for today.

    .......

    SCIWire 14 December 2015

  • Deutsche debuts landmark CLO

    Deutsche Bank has closed a US$3.5bn synthetic CLO, which it claims is the largest-ever securitisation of trade finance assets to hit the market. TRAFIN 2015-1 uses an innovative structure that enables it to hedge a globally diverse short-term trade finance portfolio of corporate and financial institutions via the sale of a first loss tranche.

    Deutsche structured, arranged and placed the first loss .......

    News Round-up 11 December 2015

  • Friend request

    CLO managers look for allies as deadline looms

    None of January's US CLOs were risk retention-compliant at issuance, but change has swept the market as 20% of those issued in September and 19% of those issued in October were. However, finding adequate solutions has proved tough enough for large managers, with smaller ones in an even more precarious position.

    Risk retention has been on the horizon for some .......

    News Analysis 11 December 2015

  • Euro secondary slowdown

    The end of year slowdown in the European securitisation secondary market looks to be increasing.

    Flows were generally light again yesterday as year-end liquidity thinning becomes increasingly evident. Consequently, spreads moved very little. CLO BWICs once again dominated the day with most bonds trading flat to slightly lower than recent prints.

    Then at 14:30 is an eight line 47.25m mixed .......

    SCIWire 11 December 2015

  • US CLOs stutter

    After a slight pick-up earlier in the week the US CLO secondary market is stuttering once more.

    "It's very quiet again," says one trader. "That's not unusual at this time of year, but at last week's conference people weren't as upbeat as usual and predictions for next year are for a fall in new issuance."

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

    SCIWire 10 December 2015

  • US outlook stable with caveats

    The outlook for US structured finance is stable to positive overall next year, says Fitch. However, the rating agency notes that certain subsectors bear watching for signs of trouble.

    Over 87% of Fitch's rating outlooks remain either stable or positive heading into 2016 as collateral quality remains excellent, with solid performance metrics and robust structural protections. "That said, it is .......

    News Round-up 10 December 2015

  • Euro secondary mixed

    It's turning into a typically quiet December across most of the European securitisation secondary market, but there is some healthy activity in a couple of sectors.

    "The secondary market is still holding up quite well despite broader credit concerns," says one trader. "Flows in general are very quiet, but we are continuing to see strong activity in some sectors via BWICs."

    SCIWire 10 December 2015

  • Euro CLOs BWIC-driven

    The European CLO secondary market is being dominated this week by a spike in BWIC volume.

    "Everything is BWIC-driven this week - away from the auctions not a lot is happening," says one trader. "Things have widened, but we're still seeing strong execution."

    The trader continues: "There have been a lot of mezz lists in particular, but they're still clearing .......

    SCIWire 9 December 2015

  • US CDO/CLO pick up

    The US CLO secondary market is picking up a little, while activity in the Trups CDO sector is outperforming recent levels

    "CLOs are getting a little busier again as we head into year-end," says one trader. "Buyers are still fairly cautious though and the bid-ask in mezz is still pretty wide so the bonds that are changing hands are restricted .......

    SCIWire 8 December 2015

  • Collaboration to boost UK lending

    A series of exclusive agreements signed by RBS with three separate investment partners - AIG Asset Management, Hermes Investment Management and M&G Investments - will boost access to capital for UK businesses backed by private equity. Mid-market firms will be able to borrow up to £100m in a single transaction that can be co-funded by all four lenders.

    Each transaction .......

    Job Swaps 8 December 2015

  • Euro secondary slows

    Yesterday saw a fairly slow session across the European securitisation secondary market, but it could yet pick-up again before year-end.

    "Yesterday was quiet, but it's too early to be thinking of year-end just yet," says one trader. "The areas of activity there were still bode well for the remainder of this week and hopefully next."

    The main focus yesterday was .......

    SCIWire 8 December 2015

  • Euro secondary unmoved

    Despite initial post-ECB softening on Friday across broader markets, the European securitisation secondary market remains unmoved.

    Liquidity remains thin across securitisation secondary and that in part helped to ensure spreads closed Friday unchanged. Nevertheless, tone remains positive and pockets of buying activity continue to be seen.

    Where those pockets appear prices are even edging slightly up. Once again, prime assets .......

    SCIWire 7 December 2015

  • Euro secondary holds up

    The European securitisation secondary market is holding up amid weakness in broader credit following the ECB press conference yesterday.

    Secondary spreads saw little ECB impact yesterday - with the changes to the ABSPP already factored in, most sectors closed the day unchanged. Flows were patchy and name specific with prime RMBS and autos once more at the forefront, while peripherals .......

    SCIWire 4 December 2015

  • US CLOs dormant

    The US CLO secondary market has failed to shake off its pre-Thanksgiving dormant state.

    "It's a very slow day today," says one trader. "That's partly because quite a few people are away at a conference in California, but overall the market is dormant and looks unlikely to shake that off - right now it really seems like everyone is just .......

    SCIWire 3 December 2015

  • Euro secondary keeps busy

    The upswing in activity in the European securitisation secondary market is continuing.

    Yesterday saw a pick-up in trading across the board both on- and off-BWIC. Notably, prime assets returned to form and a strong buying bias, in Dutch RMBS in particular, saw spreads in both ABS and MBS generally tighten.

    Meanwhile, Portuguese paper continued to outperform in peripherals and ended the day slightly .......

    SCIWire 3 December 2015

  • CLO projections remain strong

    US and European CLOs should continue to perform well in 2016, says Moody's. However, loan collateral is expected to remain weakened and default rates are projected to rise in US and Chinese CLOs.

    "US CLOs will perform well next year, with loan defaults rising slightly but remaining low overall due to tighter underwriting standards," says Moody's svp Algis Remeza. "And .......

    News Round-up 2 December 2015

  • EMEA ratings transition positive

    EMEA structured finance securities continued to experience a decrease in downgrade activity and an increase in upgrade activity in 1H15, compared to 2013, according to Moody's latest transition study for the region. The 12-month downgrade rate for EMEA structured finance decreased from 16% to 4.8%, while the 12-month upgrade rate rose from 6.9% to 37.8% over the same period.

    The .......

    News Round-up 2 December 2015
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