Investors

  • Volcker rule amended

    Company hires and sector developments

    Aviation firm appoints treasurer

    Wings Capital Partners has hired Jakob Gallagher as vp, treasurer and capital markets. Prior to joining Wings, Gallagher served as vp on the MUFG aviation team who covered originations for the Americas. Prior to joining MUFG, he worked at Aircastle where he focused on capital markets and joint ventures. Jakob raised secured and unsecured .......

    Market Moves 21 August 2019

  • Red ahead

    Non-resident Aussie RMBS hits the market

    Columbus Capital is prepping a rare Australian RMBS backed by fully amortising (accounting for 86.1% of the pool) and interest-only converting to amortising investment loans to non-Australian residents. Dubbed Vermilion Trust No. 1 Bond Series 2019-1, the A$250m transaction is consequently not only exposed to macroeconomic events that affect Australia, but also to events that affect the borrowers' countries .......

    News 20 August 2019

  • CLO ESG impact assessed

    Sector developments and company hires

    ESG impact assessed

    The credit impact of environmental, social and governance (ESG) investment criteria on CLOs rated by Moody’s remains neutral, the agency says in a report. The firm adds that while restricting the pool of CLO eligible collateral has the potential to be credit negative, CLOs limited exposure to the industries subject to ESG restrictions largely mitigates .......

    Market Moves 19 August 2019

  • Whole biz downgrade announced

    Company developments and company hires

    Acquisitions

    Crescent Capital BDC is set to acquire Alcentra Capital Corp, a middle-market BDC. The transaction is the result of Alcentra Capital’s previously announced review of strategic alternatives led by an independent director committee. Under the terms of the transaction, in exchange for approximately 12.9 million shares of Alcentra Capital common stock, Alcentra Capital’s stockholders will receive approximately .......

    Market Moves 16 August 2019

  • Pricing tension

    Houlihan Lokey model leveraged in shipping deal

    Nord LB completed a landmark €2.6bn shipping non-performing loan deal with Cerberus in April that utilised Houlihan Lokey’s proprietary pricing model. The model aids pricing tension and helps keep traditional distressed investors disciplined.     

    According to Zam Khan, md at Houlihan Lokey: “We included lower cost of capital end-investors - such as sovereign wealth funds - from the .......

    News 16 August 2019

  • Consent challenges

    Transactions losing value without Libor fallback language

    Investors are working with an asset registry and communication platform to obtain noteholder consent in order to insert Libor fallback language in certain securitisations, ahead of the 2021 deadline. This is driven by concerns that transactions without fallback language are losing value compared to newer deals with the necessary language to transition to a new reference rate.

    DealVector has been .......

    News 16 August 2019

  • Brexit impact gauged

    UK ABS expected to withstand no-deal

    A no-deal Brexit scenario isn’t expected to significantly affect the economics of UK ABS transactions. However, Brexit raises challenges by splitting UK and EU regulation.  

    One risk to ABS investors from a no-deal Brexit is the potential for a recession or a sharp downturn in the UK economy, and whether this would be severe enough to prevent a meaningful .......

    News Analysis 16 August 2019

  • NPL disposals inked

    Sector developments and company hires

    ABSF tender

    The Australian Office of Financial Management is inviting tender submissions for the provision of investment management services for the Australian Business Securitisation Fund (ABSF) by 6 September (SCI 24 June). The AOFM is seeking to appoint an investment manager to assist with the evaluation of investment proposals and provide ongoing portfolio management services. The investment .......

    Market Moves 14 August 2019

  • Insurer markets CFO

    Transaction backed by 'highly diverse' PE portfolio

    Nassau Alternative Investments is marketing a collateralised fund obligation (CFO) comprising private equity (PE) fund commitments acquired by Nassau Life Insurance Company (NNY). The, largely static, transaction is dubbed Nassau 2019 CFO, and is backed by interests in a diversified pool totalling around US$375.7m in NAV of funded commitments and US$79.3m in unfunded capital commitments.

    Fitch comments that .......

    News 13 August 2019

  • STS mirage

    "Still no level playing field" despite regulation

    Despite the high bar that issuers must clear to achieve the STS designation on securitisations, the deals continue to have unfair levels of capital treatment compared with other investment products, even backed by the same underlying collateral.  A lack of incentive to invest in securitisation - even STS deals – therefore continues to remain, but the task of addressing this .......

    News Analysis 12 August 2019

  • AM acquisition

    Sector developments and company hires

    Asset management acquisition

    Assured Guaranty US Holdings is set to acquire all of the outstanding equity interests in BlueMountain Capital Management and its associated entities for approximately US$160m, subject to certain adjustments, as part of a strategic objective to diversify into fee-based revenue sources. The acquisition is expected to complete in 4Q19, subject to customary closing conditions. As .......

    Market Moves 9 August 2019

  • Senior mezz eyed

    CRT issuers target asset managers

    Banks are targeting asset managers for the senior mezzanine tranches of dual-tranche capital relief trades, given that the market for the senior mezzanine remains less deep relative to that of the junior mezzanine tranche. Asset managers are drawn to the risk/return profile of the senior mezzanine, although their approach to capital relief trades will likely remain opportunistic going forward. .......

    News Analysis 9 August 2019

  • Track record

    Middle market origination processes scrutinised

    A deteriorating credit environment is expected to prove challenging for new US middle market loan platforms, whose fee revenue may not be enough to support them through stressful periods. Against this backdrop, a manager’s track record, alignment of interest and competitive advantages should be among investors’ primary considerations.

    David Heilbrunn, senior md and head of product development, capital .......

    News Analysis 9 August 2019

  • New ventures

    Asset manager building out structured credit strategies

    BlueBay is expanding its structured finance and CLO investment strategies. As well as aiming to launch a US focused structured credit strategy this year, the firm is looking at the possibility of issuing a debut CLO in 2020.

    In line with this expansion, BlueBay hired Sid Chhabra last year as partner and global head of structured credit and CLOs and, more recently, .......

    News Analysis 9 August 2019

  • NPL disposals sealed

    Two banks offload Italian loan portfolios

    Two disposals of Italian non-performing and performing loans (NPLs) originated by Unicredit and ING have been sealed. The first transaction comprises a portfolio of unsecured SME NPLs while the second, from ING, comprises performing and non-performing real estate leasing positions.

    ING’s disposal was valued at €1.6bn by gross book value, consists of 4,000 performing and non-performing real estate .......

    News 8 August 2019

  • Alt credit co-head hired

    Company hires and sector developments

    Alt credit co-head nabbed

    Ares has hired Joel Holsinger to its credit group as co-head of alternative credit, effective immediately. Holsinger will serve on the Ares management committee and work alongside Keith Ashton as co-head of alternative credit to expand the firm's global coverage of the US$4trn alternative credit sector. Ares' alternative credit strategy pursues asset-focused direct investments primarily in North America and Europe across .......

    Market Moves 7 August 2019

  • JV agreed

    Intesa readies UTP securitisation

    Intesa San Paolo has reached an agreement with Prelios that involves the securitisation of a €3bn (GBV) corporate and SME unlikely-to-pay portfolio. The deal follows a similar NPL agreement with Intrum that was finalised last year and is part of a wider joint venture trend (SCI 14 December 2018).

    The agreement consists of a 10-year contract for .......

    News 7 August 2019

  • Whole biz debut double

    Early learning, pet supply franchises securitised

    Two US whole business securitisations are marketing, representing debut transactions from both firms. The deals comprise the US$250m Primrose Funding 2019-1, from an early childcare education company and the second is a US$355m ABS dubbed PSP Funding 2019-1, from a company that provides pet supplies.

    Primrose Funding 2019-1 comprises US$10m class A1 notes and US$265m class Bs, both provisionally rated .......

    News 6 August 2019

  • CLO partner appointed

    Sector developments and company hires

    CLO firm partner promotion

    DFG Investment Advisers has promoted Timothy Milton to partner. Since joining the firm in 2014, Milton has been responsible for the management of the Vibrant Capital CLO platform in his capacity as co-portfolio manager. In addition, Eduardo Cabral has joined DFG’s credit research team as an md, having been a portfolio manager and senior .......

    Market Moves 6 August 2019

  • CLO head hired

    Sector developments and company hires

    BUMF 6 injunctions granted

    Final injunctions have been granted against Greencoat Investments (GIL) (including against its directors, which include Clifden IOM No.1, Rizwan Hussain, Rajnish Kalia and Alfred Oyekoya), Greencoat Holdings (GHL), Portfolio Logistics (PLL), Patrick Anthony FitzSimons, Maria Stoica and Oyekoya in connection with Business Mortgage Finance 6 (SCI 17 July). A court order has also .......

    Market Moves 2 August 2019

  • Performance model revealed

    Innovative approach highlights smaller manager outperformance

    Smaller, less well-known CLO managers often outperform their larger competitors, a new analytical model has revealed. The innovative approach utilises a mutual-fund-like analysis and the S&P LSTA index to assess manager performance and potentially bring greater clarity to performance trends.

    Traditionally, assessing CLO manager performance has involved using certain metrics to look at the underlying pool of loans in a .......

    News Analysis 2 August 2019
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