Latest CLO/CDO news
Investcorp Credit Management is looking to expand its footprint in US secured corporate loans, with middle market credit and the CLO debt of other credit managers’ both targets, according to the firm’s head of US credit.
With the summer holiday season just around the corner, the flood of new issue euro ABS deals, seen following the IMN Global ABS conference, has turned into a trickle, with just one new mandate announcement on Thursday adding to three deals looking to price in conditions favouring investors.
A spike in the supply of US leveraged loans and CLOs has caused spreads to widen in both markets in recent weeks. While CLO managers are scrambling to satisfy demand for the product, critics say they should be doing more to protect the quality of the loans they are investing in.
An increase in European leveraged buyout activity is helping boost diversity in CLO pools, according to Bank of America Merrill Lynch.
Bank of America Merrill Lynch analysts said on Monday that despite Japanese investors sitting on the sidelines in recent months as spreads slip wider, improving swap rates still mean US CLO debt is an attractive opportunity.
The US CLO market has shrugged off the interruption of July 4th festivities, with five managers closing new deals so far in the shortened week and a raft of other issuers closing refinancing and reset transactions.
Euro private placement (Euro PP) transactions can be structured as loans or as bonds, depending on the preferences of both parties. But some smaller investors have withdrawn from the bond format, concerned that it brings them into the scope of MiFID II and of MAR, though market participants are hatching plans to bring them back.
After a long wave of repricing activity, the amount of new money deals has increased in the US leveraged loan market and this is helping investors gain better terms and pricing.
On top of a busy primary market CLO pipeline, a wave of expensively priced deals sold in 2016 are expected to be reset soon, but some analysts are confident the supply can be absorbed without too much disruption to spread levels.
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
- ECB to give weakest banks extra NPL time
- SFIG chief out as management issues, pay echo ASF woes
- Euro PP buyers lean to loans as MAR and MiFID bite
- THL acquires CLO manager
- Barclays’ asset finance business bounces back — and now it’s targeting CMBS too
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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)||6,103||21||10.73|
Bookrunners of Global Structured Finance
|Rank||Lead Manager||Amount $m||No of issues||Share %|
|2||Bank of America Merrill Lynch||60,472.76||166||9.92%|
|3||Wells Fargo Securities||48,082.68||138||7.89%|