CLO/CDO - All Articles

  • Credit manager DFG hires Partners exec as CEO

    DFG Investment Advisers, a New York-based alternative credit manager, has appointed Rehan Virani as chief executive officer. Virani joins from Partners Group, where he was head of business development for private debt for the Americas and Asia.

    • 30 Oct 2020
  • NXT CEO Radway set to retire

    Chairman and CEO of NXT Capital, Robert Radway, will retire next year after 11 years spent at the middle market finance firm. Radway will step down as CEO on January 1, 2021, but will continue as chairman and member of the NXT Capital investment committees until his retirement at the end of next year.

    • 29 Oct 2020
  • New Jefferies CLO team said to ready first warehouse

    Jefferies smashed its way into the European CLO primary market this year, hiring a team from the market’s top ranked arranger, Citi, and igniting a hiring merry-go-round. But the boutique bank doesn’t have the balance sheet muscle of its commercial rivals, and observers questioned how it planned to compete in the commoditised world of warehouse lending. Now however, GlobalCapital understands it has sourced external funding and has at least one warehouse already in the works.

    • 29 Oct 2020
  • CLOs ditch riskiest tranche as markets widen

    The ‘normalisation’ of the CLO market has stalled, with spreads for single-B tranches now at levels where issuing makes little sense, pushing many managers to retain these notes or print lower levered deals.

    • 29 Oct 2020
  • Onex and Bain bring back pre-Covid duration in latest CLOs

    Onex Credit Partners and Bain Capital Credit each priced CLOs with five year reinvestment periods on Wednesday, the latest managers to return traditional CLO structures that were upended by the coronavirus.

    • 28 Oct 2020
  • Managers prep flurry of new CLOs in run up to election

    Crestline Denali Capital, LCM Asset Management, Anchorage Capital Group and HPS Investment Partners are the managers expected to price CLOs in the coming week, as the primary pipeline sees one last burst of activity before election headlines dominate.

    • 27 Oct 2020
  • Golub prices first TALF CLO but Fed program still lacks appeal, sources say

    Golub Capital priced the first CLO to take advantage of the Term Asset Backed Securities Loan Facility last week, selling a $678m static transaction arranged by Société Générale backed by a pool of mostly middle market loans. The deal, expected to close on October 30, may pave the way for more middle market managers to tap TALF funds, but sources remain skeptical that the program will have much impact on the wider CLO space.

    • 23 Oct 2020
  • Insurer to pay $338m for stake in credit manager Crescent Capital

    Canadian insurer Sun Life Financial said it has agreed to buy 51% of Crescent Capital Group for up to $338m to expand its asset management business into mezzanine debt, middle market lending, high-yield bonds and broadly syndicated loans.

    • 22 Oct 2020
  • CLOs with AMR option reach $4.4bn with latest deal from HalseyPoint

    HalseyPoint Asset Management has priced its second CLO with the applicable margin reset (AMR) feature embedded, broadening the use of the alternative method of repricing CLO securities to over $4.4bn of CLOs since 2017.

    • 22 Oct 2020
  • Tightening spreads revive middle market CLO issuance

    The middle market CLO segment is slowly regaining momentum, with more managers coming back to the market to take advantage of tighter spreads and a clearer picture of the financial impact of coronavirus on middle market companies.

    • 21 Oct 2020
  • Loss mitigation loans make their way into euro CLOs

    A common feature of the US CLO market known as the loss mitigation loan has begun to make its way into European deals for the first time, continuing the trend of European managers borrowing features from US peers to deal with the effects of the Covid-19 crisis.

    • 21 Oct 2020
  • CSAM raises $265m fund for CLO equity investments

    Credit Suisse Asset Management has closed its first CLO equity focused fund, raising $265m from investors.

    • 20 Oct 2020
  • Elmwood resets CLO as market slowly returns to pre-Covid formats

    Citi arranged the reset last week of a $503.9m CLO managed by Elmwood Asset Management, extending the deal with a new five year reinvestment period as CLOs slowly return to pre-Covid format.

    • 19 Oct 2020
  • Yield hunters reawaken CLO chimera

    The quest for yield has reawakened the market for an unusual form of CLO that pools both leveraged loans and high yield bonds to form a hybrid product. The structure has reappeared despite volatility in credit markets caused by the coronavirus crisis, with issuance escalating recently and set to rise as more CLO managers try to take advantage of opportunities — not just in loans but also the $1.2tr high yield bond market, writes Paola Aurisicchio.

    • 15 Oct 2020
  • SEC spots clouds on CLO market horizon

    November’s US election and regulatory issues are major concerns for the US CLO market, together with another possible wave of defaults in leveraged loans, the SEC has said.

    • 14 Oct 2020
  • Fixed rate US CLO repricings gather pace as election threatens supply

    Tightening spreads on triple-A rated CLO tranches has prompted a wave of refinancings and resets of fixed rate tranches over the last two weeks. Market sources expect the trend to continue as CLO managers look to save on costs.

    • 14 Oct 2020
  • Z Capital Group expands its credit team

    Z Capital Group has expanded its credit team with the addition of Egidio Carlino as director and Jordan Shrem as senior associate.

    • 13 Oct 2020
  • Spreads on triple-A US CLOs grind tighter with CVC Credit deal

    Spreads on primary triple-A rated CLO paper moved tighter with the latest deal from CVC Credit Partners, priced on Friday, as managers look to get deals done in the narrow window before the US presidential election on November 3.

    • 12 Oct 2020
  • CLO managers switch strategies as mezz softens

    CLO managers took different approaches to deal with a primary market last week in which prices softened all the way down the capital structure from the tights of late September. One manager, PGIM, even opted not to issue single-B rated notes, using a delayed draw structure instead.

    • 12 Oct 2020
  • CLOs weathering the storm but risks still loom, says SEC

    The Securities and Exchange Commission in a report published this week said the agency recognized that the CLO market has fared reasonably well through the crisis, but warned that “disruption brought on by the COVID-19 economic shock is still ongoing" and that their outlook could change.

    • 08 Oct 2020
  • Trans-Canada invests $110m with Pretium Partners

    Trans-Canada Capital, which manages the assets of Air Canada’s pension plans, is investing $110m with Pretium Partners in search of structured and corporate credit opportunities that may emerge as a result of the market volatility in 2020.

    • 07 Oct 2020
  • Permira plans to step up ESG approach in next Providus CLO

    Permira Debt Managers is looking at a new, enhanced ESG approach for its next Providus CLO, going beyond the negative screening seen so far in the market and committing to a minimum ESG score across the portfolio.

    • 07 Oct 2020
  • New Mountain and Sixth Street price debut CLOs

    New Mountain Capital and Sixth Street Partners took advantage of stabilised market conditions to each price their inaugural CLOs this week.

    • 06 Oct 2020
  • CLOs return to pre-Covid format, but deals slow ahead of election

    Pre-Covid CLO structures are making a gradual comeback as managers rush to market ahead of the election, with a deal from New York Life Investment Management arranged by Jefferies priced with a traditional five year reinvestment period.

    • 05 Oct 2020
  • Churchill hires middle market CLO portfolio manager

    New York-based Churchill Asset Management, an investment specialist affiliate of Nuveen, has hired Kelli Marti as managing director and CLO portfolio manager to boost the firm’s middle-market CLO business.

    • 05 Oct 2020
  • Responsible investing gains a foothold in US CLOs

    A rare environmental, social and governance (ESG) themed CLO was priced this month by Palmer Square Capital Management, setting the tone for the still-early days of ESG securitization in the US and hinting at bigger things to come for socially responsible CLOs.

    • 01 Oct 2020
  • Where are the missing CLO managers?

    As CLO spreads have rallied towards pre-Covid levels, some CLO managers have come to market with their second new issues since the pandemic first hit, taking advantage of loan prices still largely under par to ramp new issues quickly. But the new landscape is missing some of the market’s most well-known managers, and there’s a stubborn tail of pre-Covid warehouses still to shift.

    • 01 Oct 2020
  • Santander pre-places €2.2bn risk-transfer SME deal with EIB

    The European Investment Bank has taken down a €2.2bn synthetic balance sheet CLO originated by Santander CIB, executing a significant risk transfer to free up exposure to a Spanish SME portfolio.

    • 01 Oct 2020