GC Asia
-
New issue slow to build, but managers price burst of CLO refis and resets
A wave of CLO refinancings and resets rolled in this week, fueled by tightening spreads on triple-A paper, with sources expecting the trend to continue alongside a slowly building new issue pipeline.
16 Jan 2020 -
Loan repricing accelerates but can CLOs keep up?
Some of the largest issuers in the leveraged finance universe are repricing their loans, cutting 50bp or more from their margins on the back of strong market conditions and proven performance since the loans were raised. That is putting pressure on CLO managers and equity holders, whose liabilities are tightening too, but more slowly, blocking repricing of the bonds and squeezing returns, write Owen Sanderson and Tom Brown.
16 Jan 2020 -
Nouryon, Fluidra continue repricing trend in leveraged loans
Dutch chemicals giant Nouryon is attempting an elephantine repricing of a €5.6bn loan. Nouryon is following Spanish Fluidra, a pool manufacturer, which announced a €300m repricing on Tuesday, and UK-based data company Refinitiv, which set a more favourable price for its €2.33bn loan last week.
15 Jan 2020 -
UK’s PRA loosens tight conditions on risk transfer
The UK’s bank regulator, once one of the world’s toughest, has eased some of its conditions around the synthetic risk transfer market, allowing the UK’s biggest lenders to sell balance sheet CLOs on similar terms to their European Central Bank-regulated peers.
15 Jan 2020 -
Corporate primary faces test in secondary spread behaviour
European corporate bond specialists are keeping an eagle-like watch on how well new issues trade in the immediate aftermarket. Any widening could kick off a trend towards higher new issue premiums.
15 Jan 2020 -
Middle market to expand as CLO investor interest grows
The middle market segment of the CLO industry is attracting the attention of more investors this year amid enduring low yields in fixed income as higher returns on middle market paper and stronger covenants steer more traditional CLO buyers into the space.
14 Jan 2020 -
Röhm buyout loan returns to syndication
Advent’s buyout of German chemicals company’s Evonik’s acrylic unit last year is still haunting the leveraged loan market. The banks are relaunching syndication of €977m and $612m of term loan Bs, hoping that investors will find the credit more attractive this time around than when it was first syndicated.
14 Jan 2020 -
Constellis default could drive big CLO losses, Moody's says
Over 200 CLOs could be hit with losses as a result of a default by security and defense firm Constellis, according to Moody’s.
10 Jan 2020 -
Sustainability loans need rating agencies
The sustainability-linked loan market is a glorious mess.
10 Jan 2020 -
New CLO managers flock to Europe to prey on downgrades
The European CLO market is marking the new year by bracing itself for a series of corporate downgrades. Ellington, a US CLO manager, has been sounding out the European market about bringing an ‘enhanced CLO’ in the first half of the year, which would allow for up to 50% of the portfolio to be debt rated triple-C or below, a far cry from the standard 7.5%.
09 Jan 2020
