CDOs/CLOs

Demand is booming this year for securitized debt, as sales have not only recovered following last year’s Covid-induced dip, but are even eclipsing the pace of previous strong years.

Strong growth, continued low-cost borrowing and an oil rally are all contributing to a friendly backdrop for high-yield issuance.

Managers expect to be holding portfolios of loans priced to potentially different benchmarks, which could present a major challenge in trading assets and re-calculating note coupons currently tied to the outgoing reference rate.

STWD 2021-FL2 is pricing a $1.27 billion managed commercial real estate commercial loan obligation that allows the issuer to reinvest principal proceeds.

Deals, trends and research in structured finance and asset-backed securities for the week of April 9-16

Fewer obligors with troubled loans improved default exposure for managers of broadly syndicated CLOs, and provided deeper cushions for overcollateralization tests.

United follows in the footsteps of recent deals by Michaels Cos. and Triton Water Holdings Inc. that favored loans over bonds.

The new venue, which is being tested by both banks, will ultimately be a central place for trading desks to see data for structured credit and other underlying collateral markets, the companies said in a statement Monday. They’re planning to launch within a year and hope the effort will lead to more participation in the market.

CoreLogic, known in the real estate industry for its home-price indexes, plans to sell a $4 billion offering to help finance its buyout by Stone Point Capital and Insight Capital.

Many of the biggest whales in collateralized loan obligations are returning to the $900 billion market after spending much of last year on the sidelines, a shift that could make one of Wall Street’s biggest credit machines run even hotter.