Latest CLO news

• Rough end to the summer in sight for US ABS, say analysts

  

  The US securitization market has shrugged off macroeconomic turmoil in recent weeks and months, but investors that think sector operates in a vacuum may be due a shock before the end of the summer, according to analysts, writes David Bell.

  • 16 Aug 2018

• CLO resets needed to build ‘runway’ for downturn

  

  Tom Majewski, chief executive of US CLO equity investment firm Eagle Point, said on Tuesday that the firm was focused on resetting existing CLOs in which it held majority equity positions, in order to improve the arbitrage in the structures and also build “runway” for the company to benefit when the loan market eventually suffers a downturn.

  • 15 Aug 2018

• BAML securitization outlook turns bearish

  

  Bank of America Merrill Lynch analysts turned bearish on securitization markets this week, saying that the growing US-China trade war and a flatter US Treasury curve were strong reasons to start taking risk off the table.

  • 13 Aug 2018

• US levfin volumes jump after strong earnings season

  

  Both the US high yield and leveraged loan markets absorbed a flurry of deals at the end of last week after second quarter results painted a strong picture for corporate earnings.

  • 13 Aug 2018

• Weakness in UK retail pressures euro CLOs

  

  Bank of America Merrill Lynch Analysts in a note this week pointed to weakening in UK retail businesses as a pressure point for European CLOs, citing recent poor performance across such sectors as clothing and restaurants.

  • 08 Aug 2018

• Frontier hit with downgrade after earnings disappoint

  

  S&P Global Ratings downgraded telecoms company Frontier Communications to triple-C status on Friday, swelling the proportion of the low-rated bucket in CLOs holding the debt.

  • 06 Aug 2018

• Debate over CLOs misses the mark

  

  Concerns voiced over the growth of collateralised loan obligations (CLOs) shows that many commentators on both sides of the debate are still too blinded by the hangover of the 2008 crisis to appreciate the nuances of the next one.

  • 02 Aug 2018

• July unusually quiet for US corporate borrowers

  

  Across the credit spectrum, US corporate borrower inactivity made for a July that was exceptionally quiet, compared to typical summer volumes.

  • 01 Aug 2018

• CLO volume tapers but supply surge looms

  

  A new deal from Carlyle is the only CLO to have emerged in the primary market so far this week, following just two new deals last week. Spreads have firmed up on the lower supply and better macro backdrop, but with as many as 35-40 deals in pipeline the slowdown might not last long.

  • 31 Jul 2018

• CLOs are no threat to financial stability, says BAML

  

  The CLO and leveraged loan markets, despite running at white-hot levels, do not represent the same level of systemic risk to the financial system as the subprime RMBS model did during the last credit cycle, said Bank of America Merrill Lynch analysts on Monday.

  • 30 Jul 2018

CLO news archive