CLO/CDO

ABS Daily

  • CLO senior spreads tighten again with Invesco

    CLO senior spreads tighten again with Invesco

    Spreads on triple-A notes have once again begun to tighten, following a pause while the market digested the heavy flow of new supply. Market participants expect further tightening could follow from June.

  • CLO managers look to fat triple-Bs to boost insurance appeal

    CLO managers look to fat triple-Bs to boost insurance appeal

    Investor appetite for triple-B CLO notes has been a powerful lever encouraging managers to tweak regular CLO structures to boost the size of this tranche and diverting excess spread to shore up the rating. Colloquially known as ‘Kroll deals’, from the rating agency that rates these issues, some managers have structured tranches as large as $100m to satisfy insurers’ quest for yield. But the structure relies in part on sourcing loans at low prices.

  • First UK SME CLO in the works after senior funding deal

    UK small business lender SME Capital could bring one of the first true SME CLO deals in Europe to market, once it builds up a large enough pool of collateral. The lender has just announced a funding deal with structured credit funds Prytania and Scio Capital, which will allow it to expand its lending capacity and build towards a full sized portfolio.

  • Canyon resets and increases its Covid-era deal

    Canyon resets and increases its Covid-era deal

    Covid-era deals looking for cheaper liability stacks are beginning to flood the market with refi and reset transactions, as they hit the end of their one year non-calls. Canyon Capital has reset and increased the size of Canyon CLO 2020-1, cutting 74bp off the margin of a senior tranche originally priced in May 2020.

  • Centerbridge joins growing ranks of hybrid CLO managers

    Centerbridge joins growing ranks of hybrid CLO managers

    More managers are eyeing the rare US CLO structure which combines both leveraged loans and high yield bonds, in search of more flexibility, and to capitalize on the mispricing between the high yield and leveraged loan markets.

  • New issue CLOs turn to fully syndicated equity

    New issue CLOs turn to fully syndicated equity

    New issue CLOs are increasingly selling equity to multiple buyers, leaving no single investor with a majority position — signalling an end to the difficulties of last year, which saw managers without their own equity or committed partners struggle to come to market.

  • WhiteStar eyes acquisition candidates in European CLO build-out

    WhiteStar eyes acquisition candidates in European CLO build-out

    WhiteStar Asset Management’s expansion into London could include the purchase of an existing CLO platform, according to chief executive Gibran Mahmud. The Texas-based firm, run by the former Highland Capital Management team, announced last week that it had opened a London office headed by executive chairman Gordon Neilly.

  • MM CLO market set to follow BSL issuance frenzy

    MM CLO market set to follow BSL issuance frenzy

    Middle-market CLO issuance is set to accelerate towards the hectic pace set by broadly syndicated loan deal, driven by the large primary backlog and attractive market spreads. Top tiers managers are expected to issue more middle-market (MM) CLOs throughout this year and smaller managers are coming back to the market with their first deals of the year.

  • IFC doubles Agricole risk transfer, expects wave of EM deals

    IFC doubles Agricole risk transfer, expects wave of EM deals

    Crédit Agricole has struck a new synthetic risk transfer deal with the International Finance Corporation, in which it will shed about 90% of the risk on $4bn of emerging market trade finance loans. The IFC expects to use securitization more to help banks in developing countries cope with the effects of the coronavirus pandemic.

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