Latest CLO/CDO news
The three month Libor rate topped 1% for the first time since 2009 this month, raising concerns among CLO and leveraged loan players, though most sources say they are confident that credit fundamentals are strong enough to withstand rate related shocks.
Tight conditions in the European leveraged loan market are proving a boon for borrowers such as private equity houses, but CLO managers, which form a large proportion of the lending base to that market, are starting to feel the pain. CLO equity investors at the bottom of the chain will determine how far the screws can be turned, write David Bell and Max Bower.
Spreads on new issue CLO senior bonds have rallied with the first deal of the year, but mezzanine spreads look likely to widen after a deluge of lower rated paper flooded the secondary market in the past week.
Andrew Bellis, a former managing director at 3i Debt Management, has joined private markets investment firm Partners Group in London.
European CLO investors are targeting mezzanine and junior tranches of US and European deals, as wide spreads further down the capital stack lag the aggressive tightening seen in senior paper.
US CLO trading volumes last week topped the average level seen in 2016, as low supply of new issuance drove investors to the secondary market.
Carlyle released price guidance for the refinancing of its Carlyle Global Market Strategies Euro CLO 2014-2 on Monday, as the primary CLO pipeline takes a back seat to a wave of refinancing deals.
The pharmaceuticals industry is back under the microscope of US CLO players after comments on drug pricing from president-elect Donald Trump hinted at a tougher environment for drug makers under a Trump presidency.
The US CLO market is off to a slow start and managers are expecting more of the same through the first quarter of the year, as tightening in the leveraged loans market puts pressure on the economics of issuing new deals.
With pressure on banks to tighten their belts and deleverage balance sheets, in 2017 synthetic securitization could become a much bigger part of the bank treasurer’s toolkit.
Go to GlobalCapital's Securitization data pages for our dealflow database, plus details of priced European and US CLOs and structured finance bookrunner league tables.
Latest securitization people & markets news
- Morgan Stanley capital markets head to run structured credit fund
- Head CS ABS analyst jumps ship
- UK banks slip out synthetic CLOs before year-end
- ABS doesn’t mean weak underwriting -- BIS
- Tang: Europe will set ‘world standard’ for ABS risk retention
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|Rank||Lead Manager/Arranger||Share % by Volume|
Bookrunners of Global Structured Finance
|Rank||Lead Manager||Amount $m||No of issues||Share %|
|2||SG Corporate & Investment Banking||1,445.74||4||9.92%|
|3||Wells Fargo Securities||1,187.61||3||8.15%|
|5||Bank of America Merrill Lynch||831.08||4||5.70%|