The rate at which loans backing CLOs default has historically varied significantly between managers, according to a study published last month by Moodys Investors Service.
Despite a steep selloff in leveraged loans, few CLO managers are rushing to sell securities in the expectation of being able to source collateral quickly. That's because bargains are concentrated in the oil and gas sectors.
The CLO industry would love to have more explicit guidance from regulators on rules requiring managers to keep skin in the game of these deals; unfortunately, that guidance is not likely to come any time soon.
As the trough of the interest rate cycle comes to end, the conference will play host to more talk of how resilient the underlying credits often consumers are in securitizations.
That was the second lowest monthly level this year, and it brings volume for the first eight months of the year to $73.7 billion.
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.
Firm: Broadmoor Consulting LLC
In the news: Marketplace Lenders Are a Systemic Risk
As concerns mount about the riskier loans being packaged into commercial mortgage backeds, several banks have come up with a new strategy for making deals more attractive to investors. They are boosting exposure to both high quality and highly leveraged mortgages.Current Issue