Creditflux

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

CLO market gauges counterparty risk as it predicts economic cycle will turn
Credit is showing symptoms of a cycle in its latter stages, according to CLO market participants. While this makes loan and manager selection important, participants are increasingly focusing on counterparty risk.

Protiviti hires ex-structured credit specialist to head European lender due diligence
Consulting firm Protiviti has hired a former structured credit specialist as head of European lender due diligence and risk management

Loan managers can start to be selective
The portfolio overlap in European CLOs - at roughly 45% - is 10% higher than in the US. But newcomers and smaller managers stand a good chance of differentiating themselves

Xtract: CLOs may be further squeezed by one-week Libor Election
There are 30 loans which could, at the drop of a hat, switch to one-week Libor benchmarks, according to a report by Xtract Research

Experienced CLO specialist joins Pretium
Pretium Partners moved into CLO management a year ago and now has $2 billion in AUM in this space thanks to a couple of acquisitions. It has now hired a portfolio manager to deal with the additional AUM

European CLO PM rumoured to be joining CIFC from large asset manager
CIFC Asset Management looks to have made a major breakthrough in its bid to establish a European credit business with the $17 billion asset manager rumoured to be hiring the head of European performing credit at a large global credit firm

Investors debate merits of bond buckets as regulators revisit Volcker rule
CLOs with bond buckets could return in the US as federal agencies have signalled their willingness to roll back certain parts of the Volcker rule

Growth in UK loan issuance sparks sterling CLO revival
Strong sterling denominated leveraged loan issuance relative to euro issuance in western Europe has inspired securitisers to launch CLOs in the British currency

The expanding middle
Our analysis of mid market CLOs reveals that managers have distinguished themselves with the overlap between mid market US CLO portfolios being approximately 5%

European CLO manager diversification is increasing, conference hears
European CLO managers have begun to pursue an active management strategy, says IMN panel

Portfolio manager central to European CLO expansion to leave Neuberger
One of the key figures behind the launch of Neuberger Berman’s European CLO business is set to leave the firm

Term structure is being developed for floating rate benchmark SOFR, says LSTA
The Secured Overnight Financing Rate, known as SOFR, is being developed into a term structure

CLO debt investors resist equity investor push for Libor toggle
“If spreads weren’t collapsing we wouldn’t be hearing about this," says PGIM's Edwin Wilches

2018 US CLOs are highly ramped at closing, but this could decline, says Fitch
New US CLO portfolios at closing have been ramped by over 83% on average every month this year, according to research from Fitch Ratings