CLO/CDO

  • 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 ratings 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.

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