Latest news
Latest news
Changing issuance patterns, tight mezzanine spreads and investor demand deliver bumper crop of deals
Deal follows Macquarie's acquisition of Spire, which issued previous Aurium CLOs
Pim van Schie, a portfolio manager at Neuberger, discusses rising investor appetite for CLO mezzanine tranches
More articles
More articles
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Invesco has agreed to Volckerise one of its 2013 collateralised loan obligations, as well as modifying it to include changes to Standard & Poor’s recovery ratings that could benefit equity investors. The S&P changes could provide a crucial window for Volckerisations as refinancing activity winds down, say market participants.
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Leverage levels of the single-B rated issuers that dominate European CLO portfolios are back to 2007 levels, according to Moody’s. But despite Europe’s continued deterioration of loan covenant quality and weak economic growth, the ratings agency still expects the asset class to perform strongly in 2015.
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CLO managers could escape burdensome risk retention requirements following a law suit to block the rule on grounds it was an arbitrary and capricious overstep by financial regulators. That argument has proved successful in the past, but CLO managers are not yet changing course as a result of the news. -
With 17 years under his belt at Credit Suisse Asset Management, John Popp, global head and chief investment officer of the firm’s credit investments group, has seen his fair share of ups and downs in the CLO market. GlobalCapital caught up with him to ask how CSAM is preparing for risk retention, and what the CLO market landscape could look like a few months from now.
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As one of the larger CLO managers in the US market, Prudential is less exposed to from risk retention rules than smaller names. But that doesn’t mean they’re happy about the new regulations. GlobalCapital caught up with Brian Juliano, vice president and portfolio manager for Prudential Fixed Income's US bank loan sector team, to find out why risk retention could shift risk to the high yield market, how managers may work around the rules, and why smaller shops might lose analysts.
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West Gate Horizons is close to Volckerising one of its 2013 collateralised loan obligations, as well as modifying the documentation to reflect changes in Standard & Poor’s recovery ratings. The move comes as Volckerisation efforts are slowing because of a less refi-friendly environment — although some sources say equity investors are more receptive to such changes as they may enhance liquidity.
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CVC Credit Partners priced its latest European CLO this week, with its senior notes printed at the sort of spread levels that bankers say are playing a part in attracting a fresh batch of US managers to the euro denominated market.
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CVC Credit Partners has issued guidance on its latest European CLO, at the sort of spread levels that bankers say are playing a part in attracting a fresh batch of US managers to the euro denominated market.
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Pricing of mezzanine tranches in new CLOs has tightened in recent weeks as the asset class’s relative value has increased, and the pipeline of deals looking to get done before the Thanksgiving holiday is bulging. But as lawyers wrangle with the details of risk retention rules, investors say they are already discriminating between managers based on how they plan to deal with the rules.
