Creditflux

Loan trading round-up: CLO managers fall out of love with First Data
An analysis of loan trading among CLO managers in February shows that First Data is falling down the pecking order with managers selling $182 million of the company's loans

LSTA's Coffey floats five-point plan for Libor replacements
"Unlike Brexit, a benchmark is definitely going to happen", the audience at the IMN European CLO and Leveraged Loan conference heard 

Debut manager touts non-ethical CLO
“We are looking at this as a sort of Darth Vader of CLOs,” says the firm's portfolio manager

US CLO managers look to scale flat WALs in search of flexibility
The anticipation of a downturn in the credit cycle has made investors turn their attention toward document provisions that give CLO managers flexibility

Investcorp hires ex-Medley structured credit head as John Fraser retires
Investcorp has appointed a CLO specialist as co-head of US credit, following the retirement of the firm’s previous sole US credit head

Affinion skipped interest payment impacts small number of CLOs
Only two CLO managers could be affected by the debt of Affinion Group, who skipped its scheduled 19 Feb interest payment ($22.2 million) to its first-lien 2022 term loan holders 

Loan sell-off leaves some CLO warehouses out of the money
The December sell-off in the loan market may have been good for CLO equity but it left many warehouses out of the money, according to several sources

Tail wags dog as European CLOs' 108bp benchmark drags loans
European CLOs usually price on the back of where underlying loans are printing, but this year the reverse looks to be true

CLOs are not like CDOs, says Barclays, but warns of loan quality impact
CLOs are far removed from the kinds of structured products that contributed to the 2008/09 global financial crisis, Barclays has argued in a wide-ranging research piece this week

Podcast: Secondary loans rebound, CLOs widen and covenants deteriorate
Creditflux, Debtwire and Xtract discuss the current state of the market  

First Data takeover foreshadows inflows for CLOs that hold the debt
CLO managers that hold portions of First Data Corporation’s $11.5 billion syndicated term debt could find themselves with lots of cash to redeploy later this year if Fiserv completes its acquisition of the financial services company

JP Morgan makes big hire to its global credit trading desk
An experienced banker who has covered CLOs, CSOs, loan TRS and credit derivatives, has joined JP Morgan after leaving BNP Paribas 

CLO issuance will temper as market remains in 'exploratory mode', notes BAML research
Following a bout of volatility in the loan market, CLO issuance will be tempered as debt and equity investors rediscover correct pricing levels, according to a new research paper published this week by Bank of America Merrill Lynch

CLOs can survive defaults, but it could be death by triple Cs
Covenant deterioration in the leveraged loan market has caused sleepless nights for CLO managers who worry that when defaults start to rise, recovery rates will be lower than in past downturns. But market participants are expressing concern that ratings, rather than defaults, pose a greater risk to the market

Loan rout gifts CLOs a par-building Christmas present
Correction time is here, as Charlie Brown once (almost) sang, building par and cheer. Fun for all that managers call their favourite time to... deal

European CLO volumes to drop in 2019, but mezz could benefit, says BNP Paribas
Demand for European leveraged loans will be lower in 2019 due to lower CLO issuance, predicts BNP Paribas

Deutsche Bank refinances CLO backed with trade finance assets
Deutsche Bank has brought a $3.5 billion CLO backed by trade finance that includes a first-loss piece issued at par

Pro Mach packs biggest punch for CLOs as lev loan index takes a tumble
 The US manufacturer's $819 million Term Loan B, due March 2025, dropped 0.76% on Monday from Friday’s close

Till debt us do part: CLOs have and hold David's Bridal loans as they plummet 10.87%
CLOs hold $26.63 million exposure to David’s Bridal, which filed for Chapter 11 bankruptcy on Monday

US clothing brand default leaves CLOs exposed
As many as 100 CLOs are among the holders of debt issued by FullBeauty, which defaulted on 31 October on an interest payment to its $345 million second lien loans  

Kicking the tyres: CLOs survive examination as bankruptcies tick higher
US CLOs are weathering the turbulence triggered by a couple of bankruptcies in the broadly syndicated loan universe, namely US retailer Sears and American Tire Distributors. Those bankruptcies, filed on 15 and 4 October, respectively, have failed to dent CLO structures

BlueMountain hires ex-Deutsche levloan and high yield analyst
The new hire will support portfolio managers responsible for the firm's investments in CLOs

LSTA asks for return of CLO bond buckets as part of Volcker reform
The Loan Syndication and Trading Association is advocating the return of high yield bond baskets within US CLO portfolios in what could be another sign of the shackles being loosened on CLO regulation in the US

Pension fund hires portfolio manager to oversee loan and CLO investments
PensionDanmark has hired a senior portfolio manager to oversee its credit investments

CLO managers give ESMA requirements a test run
This year has already broken records for the European CLO market, but a new dose of regulatory uncertainty could put that growth at risk