Latest CLO/CDO news
US leveraged finance sources have blamed a rampant CLO market for allowing borrowers to run riot in the leveraged loan market with loose covenants and declining underwriting standards, trends that look likely to escalate if leveraged lending guidelines are rolled back, writes David Bell.
London-based credit platform Hayfin Capital Management has signed an agreement to acquire US CLO manager Kingsland Capital Management, giving it exposure to US leveraged loans and high yield credit.
CLO volumes look set to finish 2017 well above 2016 levels and should grow again in 2018, according to analysts. Strong demand, particularly at the mezzanine level, is likely to anchor spreads near their currently tight levels.
Pharmaceutical company Valeant took advantage of strong conditions in the US high yield market on Monday as it issued a bigger than expected $1.5bn eight year senior note to refinance $1bn of debt due 2020.
The announcement from CVS Health that it would acquire healthcare insurer Aetna is set to result in a flood of debt in the US leveraged finance market, with the firm looking to raise around $45bn of new paper to support the $77bn deal.
Raiffeisen Bank International has securitized a €1.2bn portfolio of corporate and project finance loans from its Slovak subsidiary, Tatra banka, in what it believes is the first ever securitization of Slovak assets.
At JP Morgan’s fixed income markets 2018 outlook conference in New York on Tuesday, investors were advised to move into more defensive positions, with macro factors expected to weigh on credit next year.
Fitch Ratings has hired two experienced bankers to help expand its footprint in US leveraged finance.
With three weeks in the year still to go, US securitization volume has reached a post-crisis high of $474bn, according to S&P Global Ratings.
NatWest has taken advantage of robust market conditions and improved its capital position with a synthetic securitization of loans called Nightingale 2017-1.
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
- Prosper brings on JPM Chase veteran as board member
- LSE’s Elite club securitizes Italy SME bonds
- Capping US student loans could boost ABS – DBRS
- FNBT to launch online small biz lending platform
- Cleveland Fed responds to P2P research criticism
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|Rank||Lead Manager/Arranger||Total Volume $m||No. of Deals||Share % by Volume|
|1||Bank of America Merrill Lynch (BAML)||7,026||25||11.95|
Bookrunners of Global Structured Finance
|Rank||Lead Manager||Amount $m||No of issues||Share %|
|2||Bank of America Merrill Lynch||104,269.08||299||11.02%|
|3||Wells Fargo Securities||88,761.07||266||9.38%|