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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Credit Suisse Asset Management is looking for a new credit analyst to join its credit investments group in London, as it gears up to issue its first euro CLO of the year.
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CLO market participants could not agree on the potential impact of a Republican majority in the Senate on risk retention and the Volcker rule — two of the regulatory developments that have weighed on the market this year. -
Moody’s Analytics is looking for two full time researchers to create research papers and webinars showcasing data from its Structured Finance Portal, which was initially focused just on CLOs but is growing into ABS and RMBS — a process which will be sped up by Moody’s Corporation’s acquisition of data provider Lewtan.
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Telos Asset Management has priced its sixth CLO of the year, and has around $225m in a warehouse for its next, according to pricing sheets. Meanwhile, Covenant Credit Partners is busy ramping its second CLO, having priced on Wednesday.
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Monroe Capital, which recently sold the first US middle market CLO to comply with European risk retention rules, is searching for ways to make its first broadly syndicated CLO compliant not just with European risk retention rules but also the US version of the rules, which was finalised last week.
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Texas-based hedge fund sponsor Crestline Investors has joined forces with loan investor Denali Capital to create a CLO platform and has already set the ball rolling for its first deal. Meanwhile, Citizens Financial Group is also looking at bringing a CLO.
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Recent spread volatility in the US CLO market calmed down this week, with several deals pricing back around the 150bp mark over Libor. Issuance is expected to continue to increase as managers try to lock in assets under management before risk retention rules come into effect in late 2016 — but the rules could force smaller managers out of business and cause serious legal headaches for those that remain.
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A secondary option for risk retention in collateralised loan obligations, proposed by the FDIC in the final version of the Dodd-Frank rules on Tuesday, has been dismissed as “completely unworkable” by a senior executive at the Loan Syndications and Trading Association.
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Continued spread pressure in the US CLO market has forced managers completing deals in the past two weeks or so to swallow higher spreads to get their deals over the line, with many hoping they can take advantage of softness in the underlying leveraged loan market to make up for the wider print.
