CLOs

  • Minority interest acquired

    Dyal Capital Partners has acquired a passive minority interest in the controlling company of Chenavari Investment Managers. Chenavari will continue to be led by ceo and co-cio Loic Fery and co-cio Frederic Couderc, who will retain complete control over the firm's operations and investment process.

    Dyal's strategic minority interest will be passive with no oversight of Chenavari's governance. The vast .......

    Job Swaps 8 October 2015

  • Euro secondary return continues

    Activity and prices in the European securitisation secondary market continue to return to normal, but liquidity is still below usual levels for this time of year.

    "We saw flows across all asset classes yesterday," says one trader. "Even UK non-conforming is taking off having been very quiet recently."

    Peripherals are continuing their rise of recent days. "Prices are up noticeably, .......

    SCIWire 8 October 2015

  • US CLOs suffer

    The US CLO secondary market continues to suffer from a lack of liquidity for a variety of reasons.

    "We're seeing a decrease in liquidity," says one trader. "That's to some extent being driven by bank regulation - bank balance sheets are skewed toward investment grade, which obviously reduces liquidity in non-investment grade, and those balance sheets are now required to .......

    SCIWire 7 October 2015

  • Growing options for European SMEs

    New debt market instruments which have been developed over recent years will increase funding flows to European SMEs and mid-caps, says Moody's. This will allow these firms to access more flexible, less expensive financing, potentially through securitisation.

    New funding options range from SME bond markets and private debt funds to peer-to-business lending. However, the rating agency notes that bank lending .......

    News Round-up 7 October 2015

  • Under pressure?

    Credit deterioration affecting 2.0 CLOs

    The percentage of US CLO 2.0 loans trading below 90 continues to rise, reaching a year-to-date peak of more than 8% last month. Credit quality erosion is limiting origination and impacting pricing, with manager performance coming under greater scrutiny as a result.

    "Certainly the market value overcollateralisation deterioration is apparent across the CLO 2.0 space. We are seeing dispersion among .......

    News Analysis 7 October 2015

  • ILS lawyer brought back in

    Cadwalader, Wickersham & Taft has appointed Matthew Feig to its capital markets group in New York, where he will focus on risk-linked securities and structured finance. He previously spent seven years with the firm, before leaving for Stroock & Stroock & Lavan.

    Feig returns to Cadwalader as special counsel to the ILS team, which is led by Malcolm Wattman and .......

    Job Swaps 7 October 2015

  • Euro secondary accelerates

    The pick-up in activity and pricing levels in the European securitisation secondary market is accelerating.

    Yesterday saw a further improvement in sentiment on the back of the same in broader markets. As a result, flows increased, though liquidity is still very patchy, and spreads were broadly flat to slightly tighter. Prime spreads, including autos, continue to hold firm, but it .......

    SCIWire 7 October 2015

  • Euro CMBS leader appointed

    DBRS has appointed Christian Aufsatz to its London office, where he will lead the European CMBS team. He was previously head of European securitised products strategy at Barclays.

    At Barclays, Aufsatz led analysis and research for European securitised products, with a focus on CMBS and CLOs. He previously spent eight years at Moody's, where he became team leader for EMEA .......

    Job Swaps 6 October 2015

  • CLO pro poached

    Seix Investment Advisors has appointed John Wu as md of structured capital markets for its leveraged finance platform. He will play a key role in expanding the firm's CLO business, which it says is a "strategic priority".

    Wu joins Seix from CIFC Asset Management, where he served as co-head of structured products, senior portfolio manager and md. He oversaw various .......

    Job Swaps 6 October 2015

  • Euro secondary slowly improves

    Tone and activity are slowly picking up in the European securitisation secondary market.

    Bolstered by stronger broader markets sentiment in most secondary sectors has improved, which is helping to stabilise spreads and encourage participants to return, but liquidity remains generally thin. In prime, autos led the way yesterday notably in VW assets, whereas in peripherals Portuguese bonds saw the biggest .......

    SCIWire 6 October 2015

  • US CLOs keep busy

    The US CLO secondary market looks set for another busy week after last week's uptick in activity.

    Last week saw an increase in secondary activity with focus primarily around 2.0 triple-As, double-Bs and triple-Bs. With macro concerns and quarter-end causing a volatility spike, price transparency evaporated and kept some investors on the sidelines.

    Consequently 2.0 spreads across the stack moved .......

    SCIWire 5 October 2015

  • Negative returns for post-crisis CLOIE

    The total amount of CLOs paid down in JPMorgan's Collateralised Loan Obligation Index (CLOIE) since the August rebalance through 30 September was US$1.45bn in par outstanding, US$1.37bn of which comprises pre-crisis bonds. The post-crisis CLOIE added US$7.4bn across 85 tranches at the August rebalance.

    The post-crisis index suffered negative total returns in each category during the month, especially at the .......

    News Round-up 5 October 2015

  • Euro secondary mixed

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

    For the most part ABS/MBS is still being hampered by very thin liquidity and prices are softening across the board. Prime assets continue to benefit from a buying bias albeit only in pockets. Unsurprisingly autos remain the main focus and are seeing reasonably healthy two-way flows, though spreads continue .......

    SCIWire 5 October 2015

  • Capital clarity

    CMU securitisation package receives market approval

    The release of the European Commission's Capital Market Union (CMU) action plan has been hailed for reducing capital requirements and outlining a succinct and centralised definition for simple, transparent and standardised (STS) securitisation. However, key concerns remain over Solvency 2 capital recalibrations.

    The action plan introduces amendments to the Capital Requirements Regulation and a new overall securitisation legislation. The latter .......

    News Analysis 2 October 2015

  • ESMA reports on rating agencies

    ESMA has published two sets of technical advice and a report on the regulation of credit rating agencies in the EU. These papers consider measures to provide stronger controls around credit ratings for structured finance instruments and to reduce reliance on credit ratings.

    The report finds that regulation has improved the governance and operation of rating agencies but that it .......

    News Round-up 2 October 2015

  • Euro CLO growth continues

    European CLO issuance continues to show strong growth, with Fitch counting 38 new transactions in the 12 months to July 2015. This is 36% higher than the same period a year earlier and includes 10 new post-crisis managers, with manager strategies varying.

    Loan supply has been 47% lower so far in 2015 than it was in the same period last .......

    News Round-up 2 October 2015

  • Agency seeks above-currency comments

    S&P is requesting comments on proposed changes to its methodology for assigning ratings above the foreign currency ratings on the sovereigns in a multijurisdictional structured finance transaction. The proposed criteria would constitute a global framework.

    Few rating changes are expected if the proposed criteria are adopted. From a test on CDOs, CMBS, ABS and covered bonds, the rating agency expects .......

    News Round-up 2 October 2015

  • SCI conference line-up unveiled

    Panellists have been confirmed for SCI's 8th Annual Securitisation Pricing, Trading and Risk Seminar, which is being held on 7 October in New York. The event is being held at Bank of America's offices at 250 Vesey Street (formerly Four World Trade Center).

    The conference programme consists of a series of roundtables and panel debates focusing on issues affecting the .......

    News Round-up 1 October 2015

  • New fund targets SF investment

    Franklin Templeton Investments has launched the Franklin K2 Long Short Credit Fund, which will invest in a variety of credit strategies. It aims to provide investors with access to a select group of hedge fund managers in a single diversified portfolio, while providing daily liquidity.

    Franklin Templeton acquired hedge fund solutions provider K2 Advisors in 2012. The new fund aims .......

    News Round-up 1 October 2015

  • Agency proposes new rating type

    S&P has issued a request for comment on its proposed criteria for assigning a new rating type. It would be specific to the financial obligations which structured finance special-purpose entities enter into with banks or other entities on the issuer's credit risk under a contract such as a swap or liquidity facility.

    The new counterparty instrument rating (CIR) would address an .......

    News Round-up 1 October 2015

  • Euro secondary improves

    Tone in the European securitisation secondary market is improving in line with broader market sentiment, but activity remains limited away from VW.

    "Yesterday was very quiet again, but that is typical of quarter-end," says one trader. "However we did start to see bids back in VW ABS and it had stabilised at its wides by the close. This morning it .......

    SCIWire 1 October 2015
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