CLOs
-
Window of opportunity?
Japanese ruling may benefit US CLO market
The introduction of Japanese risk retention rules could provide a boost for US middle market CLOs, while volatility in Europe has opened up RMBS opportunities.
While most US middle market CLOs are risk retention compliant, most BSL CLOs are not, says a trader. They suggest that a risk retention ruling for Japanese investors might therefore “make them more likely to .......
News 13 February 2019
-
Insurance firm expansion
Sector hires and company developments
Insurance firm expansion
Nassau Re is expanding into additional specialty finance asset classes as it grows assets under management in a three-pronged move. First, the firm has established Nassau Private Credit (NPC), which will invest directly in CLO equity and related investments for third-party institutional investors. Second, under its Nassau CorAmerica brand, it will expand its existing real estate .......
Market Moves 12 February 2019
-
Staying selective
David Heilbrunn, senior md and head of product development,...
Q: How and when did Churchill Asset Management become involved in the securitisation market?
The Structured Credit Interview 11 February 2019
A: Churchill was established in 2006 by The Bear Stearns Merchant Bank, the private equity affiliate of Bear Stearns. At the time, I was a senior member of the firm’s CLO business and, given my experience creating and working with successful middle market loan managers, I was .......
-
European middle market maturing
US MM sector set to grow following BDC no-action letter
The middle market securitisation sector is only set to grow in the US, with relaxed regulatory constraints paving the way for BDCs to securitise their exposures. While the equivalent European sector is some way behind the US, the private debt market is now regarded as a “vanilla” asset class with institutional investor buy-in, suggesting middle-market securitisations will result after further .......
News Analysis 8 February 2019
-
BoE, ESMA seal no-deal plan
Company hires and sector developments
No-deal agreement sealed
ESMA has agreed Memoranda of Understanding (MoUs) with the Bank of England (BoE) for the recognition of central counterparties (CCPs) and of the central securities depository (CSD) established in the United Kingdom (UK), that would take effect should the UK leave the European Union (EU) without a withdrawal agreement, the no-deal Brexit scenario.
US
Market Moves 5 February 2019
-
SCI Start the week - 4 February
A review of securitisation activity over the past seven days
Transaction of the week
Bank of Montreal has printed a US and Canadian leveraged loan capital relief trade dubbed Manitoulin. The US$92.5m 7.3-year financial guarantee pays Libor plus 12.75%.
The transaction has been rated as triple-A on the class A notes, single-A on the class B notes and triple-B on the class C notes. Further features include the presence of .......
News 4 February 2019
-
Staying strong
MetLife Investment Management speaks to SCI about the year ahead
Q: What’s your general outlook for the structured finance sector in 2019?
William Moretti, head of structured finance, MetLife Investment Management: “On the whole, I’d say that structured finance is in a much better position to face another potential downturn than it was in 2007, before the last crisis. There have been a number of structural improvements to transactions and .......
The Structured Credit Interview 1 February 2019
-
Euro ABS deals mooted
Company hires and sector developments
European RMBS transactions mandated
A pair of European RMBS transactions have been mandated, marking the first European securitisations of the year, barring CLOs. The first is a UK RMBS, dubbed Lanark 2019-1, from Clydesdale Bank, which has mandated BAML, BNP Paribas, Citi and Wells Fargo for the transaction, subject to market conditions. The second, from Italian lender Cassa di .......
Market Moves 31 January 2019
-
CLO UCITS launched
Company hires and sector developments
CDS publication launched
Jochen Felsenheimer, md at XAIA Investment, Wolfgang Klopfer, chairman of the management board of XAIA Investment and Ulrich von Altenstadt, md of XAIA Investment have co-authored a new publication looking at the evolution, functioning and regulatory environment of CDS. Titled, Credit default swaps: trading strategies, valuation and regulation, it also looks at the modeling and valuation of .......
Market Moves 30 January 2019
-
CMBS tender launched
Company hires and sector developments
BUMF tender
Greencoat Investments has launched a tender offer for the Business Mortgage Finance 4, 5, 6 and 7 CMBS. Fixed purchase prices for the bonds range from 0.50% to 101% per £1,000/€1,000/US$1,000 in principal amount of notes and an additional 0.50%-10% per £1,000/€1,000/US$1,000 is available as an early tender premium. The early tender deadline is 8 February .......
Market Moves 28 January 2019
-
CLO arbitrage remains challenging
Octagon reset in focus
The currently marketing Octagon 21 reset highlights challenges in the CLO arbitrage.
One trader says they will be participating in the deal, higher up the capital stack. “The manager is issuing the reset to try to improve the transaction which has become quite challenged, with some defaults and troubled credits."
The trader adds that the manager has tried to improve .......
News 25 January 2019
-
CLOs rebound
US CLO market update
US CLO spreads have tightened from December and the pipeline is bulging, as confidence returns to the market.
“Investors have been coming back to the market, so spreads have tightened and deals are being done. Triple-B mezz pieces, for example, have been pricing in the mid- to high-300s,” says one trader.
However, European CLO spreads are tighter .......
Market Reports 25 January 2019
-
New ILS unit launched
Sector developments and company hires
ABS outfit launched
US Bancorp has launched a new ABS lending business, providing non-recourse commitments secured by consumer and commercial receivables. Bo Weatherly - who joined the firm in 2016 - will serve as md for the new business, based in Charlotte, North Carolina. He has brought together a team of established industry experts, each with an average .......
Market Moves 25 January 2019
-
CLOs retain top ranking
Quarterly SCI data update
CLOs remained the top asset class in terms of deal count for European and US new issuance in 4Q18, according to SCI data - although the numbers are down on those posted in Q3 (SCI 23 October 2018), reflecting market volatility in the final quarter of the year. In contrast, CLO BWIC volumes rose in both regions.
.......
News Analysis 24 January 2019
-
Alt investor boosts global presence
Sector developments and company hires
Europe
Palamon has hired Aqib Kadar as director of tax and structured finance. Kadar was previously at PwC where he was a director in M&A tax.
Global
Värde Partners has appointed Elena Lieskovska and Haseeb Malik to partner, and promoted Brad Bauer to deputy cio. Based in London and Singapore respectively, Lieskovska is head of European .......
Market Moves 24 January 2019
-
Slow start
European ABS and CLO market update
The European ABS market is experiencing its “slowest start to a year since 2011” as STS and Brexit uncertainty dampen primary activity. Attention is being focused on secondary trading and CLO issuance.
“CLOs have started the year fairly well,” says one portfolio manager. “The latest St Paul’s CLO has just been announced, and there are a few more already in .......
Market Reports 23 January 2019
-
Two depart at ILS firm
Sector developments and company hires
Europe
M&G Investments has appointed Vincent Charles-Gervais as portfolio manager within its ABS division. Charles-Gervais will report to James King, head of ABS portfolio management, and will be based in London. Charles-Gervais has 15 years’ experience in structured and alternative credit and joins from ICG where he was a portfolio manager for ICG alternative credit. Prior to that .......
Market Moves 22 January 2019
-
Pepper up
European ABS market update
European secondary market activity is picking up, following a quiet start to the year. However, the new issue pipeline remains sparse, with only four CLO managers lining up deals.
“We’re not hearing of anything imminent,” confirms one portfolio manager. “There is talk of a UK master trust issuer potentially tapping the market – it already delivers to .......
Market Reports 22 January 2019
-
Latest SCI podcast available
SCI podcast episode four is now live
SCI’s latest podcast is now live. This month the team round up asset class performance from 2018 and look ahead to the expectations for 2019.
2018 was a landmark year, with US new issue supply outpacing maturing debt for the first time since 2007. Furthermore, while non-mortgage ABS and structured credit have had positive net issuance since 2014, last year .......
News 21 January 2019
-
CRT growth continues
Tighter pricing trend points to expanding market
The year 2018 saw a flurry of capital relief trades referencing various asset classes that were priced at tighter levels compared to previous years. Such activity is a reflection of the good performance of the underlying collateral and increased investor allocations in the market, suggesting a growth trend that is set to continue in 2019.
According to James ......
News Analysis 18 January 2019Premium Content
-
Innovative ILS transaction launched
Sector developments and company hires
Auto ILS closed
AlphaCat Managers has securitised a non-standard passenger auto insurance portfolio. “This innovative transaction creates new ILS market opportunities in securitizing broader classes of insurance risk. We look forward to working with more MGAs and insurers. "The bilateral transaction comprises a private placement of two tranches of notes: a US$6.67m senior note and a US$3.33m junior .......
Market Moves 18 January 2019