John S. Hintze

Questions remain around switching benchmarks that could result in unexpected refinancings

High hopes for 2022 crashed when Russia invaded the Ukraine, which left hundreds of aircraft stranded in Russia. But sector consolidation could lead to more deals.

The drop in CLO issuance from Q1 volume raised no alarms, coming off last year’s record $187 million issuance, and experts see strong production for 2022.

Despite perceptions that smaller companies are riskier, they pose less risk to investors. Realized loss rates are lower, and they deliver higher returns.

CLOs technically fall under the new disclosures and prohibitions for private-fund umbrella, but do not appear to be the proposed rule’s intended target.

The U.S. economy is relatively insulated from the events unfolding in Eastern Europe. Western Europe may be affected indirectly by higher energy prices.

The amendments effectively broaden the rule’s impact to include fixed-income securities, prompting several major industry groups to address SEC Chairman Gary Gensler.

There are few safe investments today, and as inflation shows the biggest increase in 40 years, one opportunistic investor blasts CLOs’ risk versus returns.

A broader investor base, rising inflation and higher interest rates are likely to result in significant demand for CLO bonds, which have experienced few defaults.

The platform enables structuring of the entire transaction, including covenant tests and trigger levels, and the distribution of interest and principal cash flows, but professionals need more time to become comfortable with DLT.

ABS issuance performance is largely neutral, with exceptions for stepped up volume, including auto. Inflation and COVID-related risks could overhang the industry.

Delinquencies fell in nearly every commercial-loan category, at trend anticipated to continue.

Sponsor mitigates aviation industry’s Covid woes with structural features including novel element.

Auto-related issuers seek funding as end to Libor and 2021 approach.

The deal carries relatively low leverage and high subordination.

Stronger collateral and less credit enhancement reflect lessening pandemic risk.

Moody’s: Rapidly evolving electronic-vehicle technology poses collateral risk also for traditional rental-car ABS.

One downgrade stemmed from a default, with three others warning of pending defaults.

Adjustments to Fitch’s CLO rating criteria place numerous deals under observation, but so far only rating upgrades have resulted.

Still relying on Libor, Brightwood SPV Advisors is approaching the market with its first collateralized loan obligation transaction of 2021, which is structured similarly to its last CLO priced in December 2020 and illustrates what a difference a year can make in terms of pricing.