CDOs/CLOs

The U.S. economy is on solid footing except for one potential trouble spot, according to Bank of America Corp.’s Chief Executive Officer Brian Moynihan: leveraged loans -- a business the bank has dominated for a decade.

KKR is sponsoring its first middle-market CLO transaction stemming from its direct lending partnership established last year with FS Investments, according to presale reports.

Unlike Japan’s three so-called megabanks, which are under strict international capital rules because of their importance to the global financial system, many regional lenders have less stringent requirements, giving them more room to have risk assets on their balance sheets.

One of the most active investors in Europe’s CLO market may be about to test the loyalty of the managers that provide it with triple-A paper by asking for a higher spread.

A reincarnated version of collateralized debt obligations, backed by both high-yield bonds and leveraged loans, offers investors some of the best relative-value plays in fixed-income, says a Credit Suisse panelist at IMN's CLO and leveraged loan investors' conference in New York.

The $403.1 million Atlas Senior Loan Fund XIV will have seven classes of notes, as well as a combination securities tranche that will make up all or portions of three subordinate classes.

Although higher corporate debt could hurt the economy, Federal Reserve Chair Jerome Powell argued changes made since the last crisis will guard against a meltdown.

Japanese lawmakers have also begun grilling government ministers on risks tied to CLOs investments by the biggest buyer, Norinchukin Bank, which has been ramping up purchases of the highest-rated securities.

Brian T. Yorke's duties will include oversight of a newly launched CLO platform for Ostrum's U.S. advisor affiliate.

The growing debate over CLOs is a key part of fund managers’ efforts to reposition as the Federal Reserve signals its intent to keep interest rates on hold for the foreseeable future.