Based on a review of about 700 U.S. CLOs rated by S&P, the average exposure to energy companies is only about 3.3%; thats a much lower concentration than these companies have in overall junk bond and leveraged loan markets, at 17%.
CIFC Asset Management is in the market with its fifth collateralized loan obligation of the year, according to Fitch Ratings.
The impact of falling oil prices has extended beyond the debt of exploration and production companies to some of their biggest creditors - collateralized loan obligations.
The American Bankruptcy Institutes Commission to Study the Reform of Chapter 11 has released its long-awaited report; it includes a number of proposals that could reduce recoveries for secured creditors, including collateralized loan obligations
The 36% credit enhancement on the senior notes is below the average for recent collateralized loan obligations, according to Fitch Ratings.
The limited number of buyers able to write big tickets allows them players to dictate terms.
Risk-retention rules could thin the ranks of CLO managers; the industry was hoping for a workaround, but what it got is pretty much unworkable.
The U.S. market for collateralized loan obligations would shrink by 75% if proposed risk-retention rules are implemented, according to the Loan Syndication and Trading Association.
DFG Taps Goldman Vet, Barclays Bulks Up on CMBS, Ares Adds Jeffrey Kramer and the ASF Retains Mike Williams as Policy Adviser
A shift in the leveraged loan market has intensified grumbling among CLO managers about the way Standard & Poors rates the senior tranches of these deals.
Vice President of Regulatory Compliance
Firm: Clayton Holdings
In the news: How Ability-to-Repay Rules Could Reshape RMBS Market
Unlike their existing risk-sharing programs, which have drawn $12.5 billion of private capital into the mortgage market by referencing $454 billion of mortgages since their July 2013 inception, some of the latest deals transfer the first loss sustained when a homeowner stops making payments.Current Issue