Global CLO b-wic round-up: Secondary markets rally despite ‘worst liquidity seen all year’
An adjournment in the US for Veterans Day last week still left plenty of time for the CLO secondary market to rally, thanks to Pfizer's covid-19 vaccine breakthrough and a firmer indication of the US presidential election results

Beneath the triple C: cinemas get clipped but default picture improves
14 corporate debt issuers were downgraded to triple C or below in October by Moody’s or Standard & Poor’s – hurting $3.15 billion of US CLO loans, €761.73 million of European CLO portfolios and $37.95 million of middle market CLOs loans, according to CLO-i. Cinema chains were among those to suffer last month

European CLO double Bs jump wider amid October macro worries - but seniors stand firm
The fortunes of investment grade and high yielding European CLO tranches have gone in opposite directions in the last month. In a year where relative value has shifted several times, Creditflux analysis shows that new issue European CLO double Bs have blown out by 16.5% in October versus September, while triple A-rated notes have tightened 6.7% in that time

Fed again warns of CLO risks as senior and junior spreads split
The Federal Reserve's latest financial stability report again warns of risks in CLO structures amid the continuing coronavirus pandemic

Voya adds to double A and single B CLO exposure in Q3
Voya Financial added to its total CLO investments in the third quarter, with a sharp increase in the volume of double A and single B notes on its books, according to the firm's earnings call presentation which was released today

The cost — a few basis points — is modest compared to the potency of bond buckets
If CLOs had bond buckets when Delta Air Lines issued debt, a manager could have bought the bond then rotated into the loan

B-wic appearances boost CLO equity valuations
CLO investors who use third party valuations say that CLO equity may be undervalued

Global b-wic round-up: Europe drifts wider
The CLO secondary market had a robust week with $860 million of US CLO paper and €315 million worth of European CLO bonds listed. But spreads widened off the back of concerns over lockdowns across the globe, the increased risk of downgrades and tomorrow’s US presidential election

[update] Beneath the triple C: theme parks take portfolios on downward ride
Seven corporate debt issuers were downgraded to triple C or below in September by Moody’s or Standard and Poor’s – hurting $2.16 billion of US CLO loans and €1.16 billion of European CLO portfolio. The pace of CLO loan downgrades to triple C has slowed steadily since the peak in April

Global CLO b-wic round-up: CLO mezz tranches widen amid macro concerns
Last week was busy for the primary European CLO market but not for secondary, with €1.35 billion of new issue European CLOs priced across four transactions but just €190 million of European CLO paper listed in b-wics

Questions will need answering about where a manager's fiduciary responsibility lies
A university lecturer gives Welshcake a shock with a CLO presentation that points to shady trading games

Academic highlights 1.0 CLO inflationary and cross-trading practices
CLO managers during and after the 2008 financial crisis used discretion in reporting the fair value of defaulted assets or loans downgraded to triple C, and may have inflated these fair values, according to a research presentation at Creditflux’s CLO Symposium in September

Lagging CLO triple Bs draw investors
Senior US CLO spreads have retreated to their pre-pandemic levels, but triple and double B spreads have lagged - and those wider spreads are attracting new investors into the asset class

Methodology tweaks could prove a boost for CLO warfs
Moody’s proposed CLO methodology changes could impact 8% of US and European CLO tranches positively, the rating agency says

Relative value plays swell secondary
The secondary CLO market has been revived this year as volumes shatter 2019 totals. Investors are finding that secondary values outweighs that in primary, with the added bonus of full portfolio disclosure

Investors sell downgraded CLO tranches as single Bs widen sharply
Four CLO tranches downgraded during the third quarter are featured on a b-wic today that concludes 11am New York time, offering investors a chance to cash in on the recent spike in junior CLO spreads

Six triple Bs trade in line with primary as 78-item euro CLO b-wic concludes
All 78 European bonds that appeared on a b-wic yesterday at 9am New York time (2pm UK time) traded with colour - strongly suggesting that the auction represented the unwind of a fund.

78-item b-wic hits market as European CLO spreads dislocate
A mammoth 78 item European CLO b-wic totalling €130.7 million is on sale today at 9am New York time (2pm UK time) and is rumoured to come from an investor liquidating its portfolio

All tranches fail to clear in Seix Advisors AMR refi auction
A digital Dutch auction for Seix Advisors' Mountain View CLO XIV took place yesterday, but all tranches failed to clear, according to a statement from AMR platform provider Kopentech

Seaport hires veteran for European loan trading push
Seaport Global, an investment bank focused on capital markets, has hired a leveraged finance veteran as a managing director in Emea loans trading

Global CLO b-wic round-up: CLO lower mezz tightens while equity investors strive for duration
A large supply of CLO paper flooded the secondary market last week as $1.5 billion of US CLO bonds and €370 million of European CLOs were listed, according to CLO-i

Seix CLO set to get AMR refi treatment on 29 September
A CLO managed by Seix Advisors, Mountain View XIV, is set to become the second deal to undergo an applicable margin reset (AMR) refinancing later this month,

Fair Oaks rotates to Euro CLO equity after 32% gain on double Bs
Fair Oaks Capital is starting to rotate back to CLO equity positions after taking advantage of the stabilising market and using profits from its higher-quality, more opportunistic trades earlier this year to carefully dial up the risk

Global CLO b-wic round-up: dealers get involved amid rally, but dispersion persists
The CLO secondary markets returned to form last week with $716.2 million of US CLO bonds and a further €306.5 million of European CLO paper listed. Although for both markets over half of the total volume listed came from Thursday’s scheduled b-wics