CLOs

  • BP raises $10bn in new revolving facility

    BP raises $10bn in new revolving facility

    BP, the UK oil and gas company, has set up a new $10bn revolving credit facility, as oil companies look to shore up their cash positions in response to the twin maladies of Covid-19 and a drop in oil prices.

  • CLO market to survive crisis credit wringer but will change

    CLO market to survive crisis credit wringer but will change

    CLO players have been resolute that deal structures will withstand the pressure on corporate credit, and that the product has been tested by worse. But even though the market expects to weather the coming storm, industry veterans are predicting a new landscape after the virus crisis subsides, writes Paola Aurisicchio.

  • The virus crisis is a proving ground for CLOs

    The virus crisis is a proving ground for CLOs

    CLOs are under acute stress as the coronavirus pandemic wreaks havoc on corporate credit, but the situation presents an opportunity for the market to prove itself to sceptics.

  • S&P adds 15 deals to list of at-risk CLOs

    S&P adds 15 deals to list of at-risk CLOs

    S&P Global Ratings placed another 15 CLOs on rating watch with a negative outlook over the weekend, flagging deals with a growing exposure to loans facing downgrades as the coronavirus crisis drags on.

  • ABS secondary disappointed with lost ECB appetite

    ABS secondary disappointed with lost ECB appetite

    The ABS secondary market had not seen an increase in purchases from the European Central Bank as of Thursday, when the central bank’s Pandemic Emergency Purchase Programme was supposed to officially start buying. ECB head Christine Lagarde invoked the spirit of her predecessor by promising to do 'whatever it takes' to save the euro from the coronavirus pandemic, but the start of the programme has left ABS traders citing miscommunication between the central bank and the securitization market.

  • Why senior CLO paper is so cheap

    Why senior CLO paper is so cheap

    European triple-A rated CLO spreads have blown out further and faster than other securitized products, and further than may be justified by the collapse in leveraged loan prices. That may mean more of these bonds have found their way to leveraged investors than market studies assumed.

  • Banks intensify margin calls for CLO warehouses

    Banks intensify margin calls for CLO warehouses

    Banks have started sending CLO managers notice to post more collateral against open warehouses after prices of the underlying leveraged loans dropped steeply to an average of about 76 cents this week, according to market sources.