Trillion-dollar fund manager taps alternatives in yield hunt
Investors should consider alternatives such as private credit as they search for positive yield in a world of low or negative interest rates, according to asset manager Nuveen LLC.
CLOs
ETF ‘Godfather’ worried about retail traders in planned CLO fund
As the tally of corporate defaults climbs, the potential for collateralized loan obligation ETFs may pose a risk for retail investors, according to GTS Mischler Principal Reggie Browne.
Opinion Adapting CLO documentation in the midst of COVID-19
There is hope among issuers that the structural changes brought about by the COVID-19 pandemic can bolster CLO resiliency, thereby enabling market participants to better weather the next economic storm.
Greg Cioffi
Seward & Kissel’s Structured Finance and CLO Group
ABS update: S&P trims global 2020 issuance forecast by 25%
The coronavirus impact in the U.,S. alone has resulted in a 30% year-over-year decline across securitizations, CLOs and MBS.
By
Glen Fest
CLO equity slide signals years of corporate pain ahead
The big drop in CLO equity this year signals investor fear that this downturn will be more like the 1998 to 2003 period, where company defaults rise and stay elevated over the course of years, and profiting from improving prices in loans is hard.
Hard hit direct lenders still set to beat rivals, Stepstone says
he report concluded that the industry should fare well compared with its peers, but that loans to mid-sized European companies remained vulnerable to fall-out from Covid-19.
Apollo’s debt-lawsuit defeat to reshape Wall Street risk models
If creditors can now be pushed down the repayment pecking order without notice and have no recourse to fight back, they will be forced to reassess risk – and potentially demand higher interest rates – when granting loans and buying certain kinds of bonds.
BlackRock’s alternatives chief has a $23 billion war chest
The market for private investing has seen assets swell 44% over the past five years, reaching an estimated $18 trillion by the end of 2019, according to JPMorgan Chase & Co. Globally, alternative asset managers have $2.4 trillion available to spend, based on data from Preqin.
Hedge fund manager trips up as asset downgrades hit CLO
King Street's new CLO is the first European deal rated by Moody’s to fail to meet all the portfolio requirements at this milestone.
Credit firms race to hire distress experts ahead of more turmoil
Money managers including Owl Rock Partners, Pretium and PGIM are racing to add workers with restructuring and bankruptcy experience as they take in record amounts of cash to buy cheap assets battered by the economic fallout of the coronavirus pandemic.
Opinion No, CLOs will not cause the next banking crisis
An article in The Atlantic warning that collateralized loan obligations will be banks’ next downfall overestimates the risk of these securities.
Christopher Marinac
Janney Montgomery Scott LLC
Hedge funds exploit CLO weakness laid bare by corporate distress
Restricted from taking on distressed debt or debtor-in-possession loans, CLO managers are being left out of opportunities in coronavirus-related debt restructurings. "It's frustrating," says one manager. "We are supposed to be the bully, not the one being pushed around.”
Western Asset braves new CLO world with more conservative terms
Longstanding CLO manager Western Asset Management just priced its first deal of 2020, and despite the transaction's much more conservative structure, spreads doubled from its deal a year earlier.
By
John Hintze
Blackstone’s GSO fumes at Ally now revolting in distressed deal
The breakdown, described by people with knowledge of the relationship, is among the many scuffles emerging on Wall Street as the coronavirus pandemic pits distressed companies and their owners against lenders.
First European CLOs fail key test amid strain of pandemic impact
Four transactions from three managers, Alcentra, Barings and Bardin Hill, showed a breach of one or more of their so-called over-collateralization tests based on May filings.
Bain Capital raises $3.2 billion for latest distressed fund
Bain joins firms like Blackstone Group Inc., Oaktree Capital Group LLC and Carlyle Group Inc. in looking to capitalize on potential opportunities created by the coronavirus pandemic that has hammered businesses.
Zandi: Corporate debt load is worrisome, but not systemic
Leveraged loans and collateralized loan obligations do not represent an "existential" threat to the global economy or to the U.S. banking system, as some recent highly charged reports have suggested.
By
Glen Fest
CLOs are not CDOs, not even during a pandemic
There are any number of reasons to fret about America’s recovery from the coronavirus crisis. A repeat financial collapse at the hands of a structured product with a similar sounding acronym isn’t one of them.
Pimco plans to dive into CLOs for first time in a decade
The subprime mortgage meltdown turned Pacific Investment Management Co. off the CLO business for a decade. Now the coronavirus crisis is luring it back.
Middle-market lender Garrison Investment plans to wind down
The firm will offload parts of its business including its business development company, Garrison Capital Inc., and other credit vehicles.
Load More
Couldn’t load more articles. Try again.