Latest CLO/CDO news
Wells Fargo analysts said that the biggest risk for CLOs next year was loan rating downgrades putting strain on the structures, although the bank is not expecting to see an increase in loan defaults despite the rise of late cycle lending behaviour.
Investment adviser Alexandria Capital is teaming up with credit firm and CLO investor Eagle Point Credit Management to bring CLO investing opportunities to more family offices and high net worth individuals.
The Special Situations Group at Goldman Sachs has structured private financing vehicles based in Luxembourg, which package up bundles of loans made by the group with an average rating of B/B-. The vehicle will also hold risk retention interests for Goldman-sponsored securitizations.
Apollo-sponsored RCCH Healthcare Partners made investor-friendly changes to the bonds and loans it sold this week to support its acquisition of LifePoint Health, widening the pricing as well as tightening the covenants in the debt package.
LibreMax, the securitization-focused hedge fund started by famed crisis-era ABS trader Greg Lippmann, is betting on the continued bull run of the CLO market with the acquisition of Trimaran Advisors.
Credit Suisse Asset Management increased the size of its latest CLO by over $200m on Thursday, with ICG also pricing a new deal this week to bring year to date volumes in the US to $112bn.
The sterling overnight index average (Sonia), the rate chosen to replace sterling Libor by regulators, may suffer from a “bifurcation of… sterling money markets” after Brexit, according to a Bank of England Sonia Oversight Committee.
The high yield bonds being issued to support Apollo’s acquisition of hospital group LifePoint Health include carve-outs that allow the private equity firm to pay itself dividends by securitizing LifePoint’s property and equipment without falling foul of additional debt and restricted payments covenants.
Kroll Bond Rating Agency has won a mandate for its first CLO rating, after hiring staffers from S&P Global and Goldman Sachs earlier this year to break into the booming corner of the securitization market.
Some US high yield analysts have said markets “oversold” last week and are expecting spreads to rebound after they slipped to their widest level in a year.
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
- Goldman Special Situations Group issues loan-backed notes
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- European Parliament pushes for tougher impact disclosures
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- Sudden stop for conduits could drain €130bn from Europe’s banks
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Latest news by market and league table performance
|Rank||Lead Manager/Arranger||Total Volume $m||No. of Deals||Share % by Volume|
|2||Bank of America Merrill Lynch (BAML)||8,264||27||10.34|
Bookrunners of Global Structured Finance
|Rank||Lead Manager||Amount $m||No of issues||Share %|
|2||Bank of America Merrill Lynch||94,721.79||272||8.85%|
|4||Wells Fargo Securities||82,597.19||239||7.72%|