CLOs

  • 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

  • US CLOs stay strong

    The strong tone in the US CLO secondary market is showing no signs of diminishing.

    "The secondary rally continues to strengthen - this wave now really seems to have some power to it," says one trader. "After significant tightening in recent weeks we've seen no fading of the bid this week."

    The trader continues: "Quality bonds are still being bid .......

    SCIWire 7 April 2016

  • Capital markets unit adds DCM director

    Macquarie Capital has appointed Warrick Booth as md in its European debt capital markets team. He will be based in London and report to Sam Newman, head of European DCM, and Stephen Mehos, head of US DCM.

    Booth will lead the syndication of debt and structured equity. He has over two decades of experience in investment banking and has held .......

    Job Swaps 7 April 2016

  • Credit alternatives pro hired

    Angel Oak Capital Advisors has recruited Manish Valecha as head of institutional alternatives. He will lead the company's efforts in the institutional investor marketplace with pensions, consultants, endowments, foundations and family offices.

    Valecha will primarily focus on marketing, product development and institutional due diligence. Prior to joining Angel Oak, he was head of research at Gapstow Capital Partners, focusing on hedge funds, .......

    Job Swaps 7 April 2016

  • Mixed impact from 'step-in' proposals

    Basel Committee proposals could increase capital charges for banks with large asset management activities. Moody's says that the proposals on step-in risk are credit positive for senior bank creditors, but could also make asset management less attractive due to increased operational costs and capital requirements.

    As part of a broader regulatory push to tackle shadow banking risk, the Basel Committee .......

    News Round-up 7 April 2016

  • Euro secondary patchy

    There is something of a pick-up in the European securitisation secondary market but activity remains patchy.

    "It's getting more active, but we're not yet back to where we were before Easter," says one trader. "Trading is still selective rather than widespread."

    The trader continues: "We've seen a few trades in UK prime, which went wider last week but has come .......

    SCIWire 7 April 2016

  • US CLO change ahead?

    The recent quiet period in the US CLO market could be about to change.

    "The lull is continuing for now, but it is just that - a lull," says one trader. "Things are about to change and get very interesting."

    The trader continues: "Volatility is low again across wider markets and CLOs have tightened significantly. I believe there is now .......

    SCIWire 6 April 2016

  • Euro secondary starts slowly

    The quarter has begun slowly in the European securitisation secondary market.

    "It's been a slow start to the week so far," says one trader. "Tone has remained positive despite the weaker macro backdrop, but clients remain on the sidelines with many still assessing the implications of the Granite Towd deal and the potential lack of future Warwick supply."

    The trader .......

    SCIWire 6 April 2016

  • STS alarm bells ring

    A list of potential pitfalls in the European Commission's STS framework has been published in a letter by 32 signatories, including some of the EU's largest banks. The signatories argue that the STS framework would not, in its current form, provide the solution for the securitisation market that it is intended to.

    The joint-letter seeks to address 10 key points .......

    News 5 April 2016

  • CDS pro shifts law firms

    Mayer Brown has added Douglas Donahue as a partner in its New York Office. He will contribute to the firm's global banking and finance practice, as well as its derivatives and structured products group.

    Donahue's practice focuses on transactional and advisory matters related to derivatives. He represents both buy- and sell-side institutions in connection with the development, structuring, negotiation and .......

    Job Swaps 5 April 2016

  • CLO indices increase eligibility

    Palmer Square Capital Management has announced a methodology change to its Palmer Square CLO Senior Debt Index (CLOSE) and the Palmer Square CLO Debt Index (CLODI). The update is effective from the latest rebalance of the indices on 31 March.

    CLOs eligible for inclusion in CLOSE now include deals that are larger than US$500m (previously US$600m). Additionally, CLOs eligible for .......

    News Round-up 4 April 2016

  • Rating agency adds sales chief

    Scope Ratings has appointed Sven Janssen to the newly-created role of chief sales and marketing officer, effective from today (1 April). He was previously head of debt capital markets at Oddo Seydler Bank and has also worked at Macquarie, Bank Metzler, Bank Sal Oppenheim and Hawkpoint Partners.

    .......

    Job Swaps 1 April 2016

  • CLO equity portions evaluated

    Additional expected defaults within US CLOs this year is prompting bondholders to direct greater focus to the equity portion within transaction restructurings, according to Fitch. The increasing presence of equity in the near term could arise from a combination of distress in commodity sectors and non-commodity issuers suffering from high pre-petition leverage, struggling business models and declining enterprise valuations.

    Fitch explains .......

    News Round-up 1 April 2016

  • US CLOs still strong

    The US CLO secondary market looks like it is set for a quieter day today, but sentiment is still strong.

    "It's relatively quiet today thanks to quarter-end, but we saw quite a bit of activity yesterday and spreads are still firm," says one trader. "A high proportion of bonds traded on the bid lists yesterday and once the new quarter .......

    SCIWire 31 March 2016
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