CLOs

  • US CLO secondary spikes

    The US CLO market is seeing a big spike in secondary market activity this week ahead of ABS East and expected reset activity.

    “There’s over US$500m on BWICs today”, says a trader, “which is the busiest day in several months. I would guess it’s because of the ABS east conference on the following Monday…people are trying to get stuff done before .......

    Market Reports 12 September 2018

  • Short duration in demand

    Spreads diverge between long and short CLO paper

    The volume of US paper in the secondary CLO market is down in the first week of September, with spreads diverging between long and short paper.

    “At this stage,” says a trader, “it’s hard to find short paper as people don’t want to sell it because it’s very competitive to buy. For the longer paper spreads are widening .......

    Market Reports 11 September 2018

  • Market moves - 7 September

    New hires and company developments in the structured finance industry

    CRT expert wanted

    Banca IMI is hiring a senior risk transfer solutions structure for its Milan office. The bank wants a candidate with experience in capital markets and investment banking with a top tier Italian or European investment bank, consultancy firm, rating agency, fund or asset manager and ideally with experience of origination activities and analysis experience of tier one .......

    Market Moves 7 September 2018

  • Increased obligations weighed

    ESMA outlines expanded reporting requirements

    ESMA last month published final draft technical standards on the new reporting requirements to be implemented under the Securitisation Regulation (SCI 24 August). The standards - released ahead of the 1 January deadline - are set to usher in new levels of due diligence required on the part of the seller, meaning investors will expect more information to .......

    News Analysis 6 September 2018

  • Market moves - 31 August

    The latest hires and company developments in the structured finance market

    Acquisition

    Moody’s Corp is set to acquire all outstanding shares of Reis in an all-cash transaction valued at approximately US$278m. By combining Reis’s extensive data with Moody’s Analytics’ specialised capabilities, the firm aims to enhance analytical practices in the CRE market and contribute to the efficiency and liquidity of capital flows. Under the terms of the merger agreement, .......

    Market Moves 31 August 2018

  • Market moves - 24 August

    The week's structured finance hires and company developments, all in one place.

    Consent solicitation

    NN Bank has issued a consent solicitation seeking investor approval for the early redemption of the Hypenn 3 Dutch RMBS, of which the class A1 tranche has already been redeemed. The class A2 tranche has an outstanding balance of €467m and a FORD of 17 June 2020, according to Rabobank credit analysts. Together with Hypenn 3, NN Bank’s Arena 2014-2 .......

    Market Moves 24 August 2018

  • CLO issuer explores new ground

    Blackstone/GSO in middle-market first

    GSO Capital Partners, a Blackstone subsidiary, is marketing its first CLO backed by a portfolio of primarily first lien, senior secured middle-market loans. The US$510.71m transaction, dubbed Diamond CLO 2018-1, will also include some allocation to broadly-syndicated speculative grade senior secured term loans.

    S&P has assigned provisional ratings on the transaction of  triple-A on the US$277.50 class A-1 .......

    News 23 August 2018

  • Firms favour floating rate

    Investors find value in range of SF asset classes

    US investors are seeing relative value in a number of pre- and post-crisis securitised asset classes, including non-agency legacy RMBS, TruPS CDOs and US BSL CLOs. While firms’ allocations to different sectors may vary, the overriding theme is a move away from fixed rate products, with further interest rate rises expected.

    As a result, floating rate products are of growing .......

    News Analysis 22 August 2018

  • Market moves - 17 August

    Company developments and new hires in the structured finance sector

    Acquisitions

    Vistra has completed the acquisition of the corporate services business of Deutsche Bank’s global transaction banking division. The corporate services business will now be rebranded under the Vistra umbrella. The acquisition broadens the company’s presence in seven of the existing locations across Europe, the Cayman Islands and Mauritius, providing further scale and expertise in these jurisdictions and involves management .......

    Market Moves 17 August 2018

  • SMEs supported

    Supranationals driving new credit ecosystem

    A new ecosystem is gaining traction in the securitisation market, with supranational institutions stimulating organic origination by non-bank lenders. By facilitating the flow of credit and acting as a bridge to the capital markets, the prevalence of their activity – especially in the SME sector – is creating a new sub-category of transactions.

    Supranational institutions are a key .......

    News Analysis 16 August 2018

  • Market moves - 10 August

    Company developments and new hires in the structured finance sector

    CDOs transferred
    Dock Street Capital Management     has replaced Deerfield Capital Management as collateral manager of the Knollwood CDO and Mid Ocean CBO 2001-1 transactions. Moody’s has confirmed that the move will not impact its ratings on any of the notes issued by the issuers. For more CDO manager transfers, see SCI’s database.

    Effective 2 August, Highland Capital Management .......

    News 10 August 2018

  • Second Magdalena deal priced

    Santander SME portfolio attracts further investor interest

    Santander has completed its second FT Pymes Magdalena risk transfer transaction. The €166.3m CLN references a €2.5bn Spanish SME portfolio and pays three-month Euribor plus 8.85%.

    The portfolio comprises a diversified and granular portfolio of Spanish SMEs -including self-employed borrowers - a market where Santander holds a dominant position. Protection has been bought on 95% of the reference portfolio.

    The .......

    News 8 August 2018

  • Market moves - 3 August

    Company developments and new hires in the structured finance sector

    Acquisitions
    Savills Investment Management is set to acquire a 25% interest in DRC Capital. In addition, the partners of DRC have granted Savills Investment Management a call option to acquire the remaining 75% interest in DRC on the third anniversary of the completion of the initial transaction. Dale Lattanzio, ceo and managing partner of DRC, will join the board of Savills .......

    News 3 August 2018

  • Market moves - 27 July

    Company developments and new hires in the structured finance sector.

    Acquisitions

    American Mortgage Consultants (AMC), has announced the acquisition of certain personnel and the operations center of Des Moines, Iowa-based The Barrent Group. This transaction will establish a market presence for AMC in the Midwest and adds more than 50 residential mortgage professionals to its platform, further enhancing the firm’s client service capabilities. AMC plans to hire up to 150 .......

    Market Moves 27 July 2018

  • Ireland still 'favoured' securitisation destination

    Irish CLOs may see post-Brexit boost

    The Central Bank of Ireland recently published figures stating that the total value of assets in Irish special purpose entities (SPEs) has fallen €58.9bn this year. While a striking number, this has little relation to the use of SPEs for securitisation and nor has it affected ongoing activity involving the acquisition and securitisation of portfolios of Irish non-performing loans.

    Conor .......

    News 25 July 2018

  • Testing time

    European ABS succumbs to widening pressures

    Poor new issue execution has seen the European securitisation market finally succumb to widening pressure, in line with other credit markets. A number of short-term and long-term factors are at play, but the true test of the sector will be when participants begin putting cash to work after the summer.

    Cartesian 3 and Sunrise SPV 40 were among the headline .......

    News Analysis 24 July 2018

  • Market moves - 20 July

    A weekly breakdown of new hires and company developments in the global structured finance industry.

    Acquisition agreed

    Stone Point Capital’s Trident VII fund is set to acquire Sabal Capital Partners, with Sabal Investment Advisors, Sabal Investment Holdings and their managed funds also merged into the Sabal platform to create a vertically integrated lending, servicing and investment management platform focused on the small balance commercial real estate sector. Sabal will continue to be operated by its .......

    Market Moves 20 July 2018

  • CLO investor breaks into US

    UK firm thinking long term, credit cycle in sights

    Pearl Diver Capital recently opened its first US office and also closed two new CLO funds. While the loan and CLO markets still seem to be immune from macroeconomic disruption, the company is preparing for a potential change in the credit cycle.

    Matthew Layton, partner at Pearl Diver Capital, comments that the firm recently closed Pearl Diver Capital (PDC) Fund .......

    News 20 July 2018

  • Inaugural infrastructure CLO markets

    Singapore-supported firm's first transaction backed by Asia, ME project finance loans

    Clifford Capital is marketing an inaugural US$480m CLO. The transaction, dubbed Bayfront Infrastructure Capital, is backed by 37 bank-syndicated senior project finance and infrastructure loans to projects in Asia-Pacific and the Middle East.

    Moody’s has assigned provisional ratings to the transaction of Aaa on the US$320.6m class A notes, Aa3 on the US$72.6m class B notes and Baa3 on the .......

    News 18 July 2018

  • European CMBS surge continues

    Structural nuances also on the rise

    European CMBS is experiencing a bumper year and new deals continue to hit the market, making 2018 the strongest year for traditional, floating-rate CMBS since 2015. While investors are unlikely to lose any sleep just yet, many of these new transactions feature structural nuances that draw comparisons with transactions seen before the financial crisis.

    Although there have been other bumper .......

    News Analysis 6 July 2018

  • Multi-currency CLO launched

    Large transaction appeals to broad investor base

    Barclays has launched an unusual multi-currency CLO based on a £4.5bn portfolio of corporate loans made by the bank to borrowers in the UK and Europe. The transaction, dubbed Sirius Funding, will be managed by Barclays and comprises three large tranches denominated in euro, US dollar and sterling, respectively.

    Moody’s and Scope have assigned ratings of Aaa/AAA on the €1.265bn .......

    News 29 June 2018
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