Eagle Point's CEO criticized "hyperbole" about growing risks in leveraged loans and CLOs, noting the benefits that price volatility can present to equity buyers.
The structured credit specialist will more than double its $2.9 billion in assets by acquiring a portfolio of three collateralized loan obligations that Trimaran Advisors runs from KCAP Financial.
The $600 million FORT CRE 2018-1 is more highly leveraged than the private equity group's debut transaction in August 2016, it is also actively managed and includes a $50 million tranche of revolving notes.
According to presale reports, PGIM is marketing a $509.5 million Dryden 61 CLO transaction in the states, while also prepping a €411 million Dryden 66 Euro CLO portfolio.
The transaction is one of only three CRE CLOs issued post crises with a collateral balance of $1.0 billion or more, according to Kroll Bond Rating Agency.
The firm's risk profile has not altered, executives said on a third-quarter earnings call Wednesday; it remains "appropriately cautious."
The €411 million deal puts it in the small club of UK managers that have completed three or more transactions in 2018.
The New York-based firm is adding 4.9 years to the reinvestment period of the $518.6 million Neuberger Berman CLO XVIII.
The $597 million AREIT 2018-CRE2 is also slightly less concentrated than the sponsor's inaugural deal, completed in February.
The London-based manager is including two classes of fixed-rate notes, including a rare triple-A rated nonvariable-rate tranche, in its €412 million Contego VI DAC portfolio.
The Federal Reserve is getting more concerned about risks from the leveraged loan market, with a key official saying it's now taking a "closer look" at whether banks are chasing deals without adequately protecting themselves against losses.
It seems a lot of CLO managers who were worried about competing amid heavy supply in the fourth quarter have put issuance on hold until 1Q 2019.
S&P also upgraded five more senior tranches of the deals citing paydowns, which in one CLO was accelerated by the diversion of interest from sub notes.
The $462.3 million VMC 2018-FL2 will be backed by 25 properties, two of which will be acquired after the deal closes.
Fitch Ratings and Moody's Investors Service each rate a single collateralized loan obligations with exposure to debt of the former retail giant.
The rating agency feels that “late-cycle credit behavior” is allowing less established issuers to rely on the securitization market more heavily for funding.
The reinvestment period of $457.8 million Palmer Square CLO 2013-2 is being extended for another four years; there are also changes to the capital stack.
The senior tranche of Oak Hill European Credit Partners VII has an assumed coupon that is inside of the market average for September.
LCM 28 can pay noteholders across the capital stack based on three-month Libor or "any applicable" alternative – including one-month Libor.
The Oak Brook, Ill.-based manager is adding interest-only notes as well as a subordinate, single-B rated tranche in an extension of a 2016 CLO.
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