CDOs/CLOs

CLO managers who accept lower interest payments on loans risk running afoul of deal covenants; but if they take their money back, there are few attractive options for putting it back to work

KKR is undertaking a rare refinancing of a 2014-vintage collateralized loan obligation that does take advantage of a one-time exemption from risk retention requirements.

The Trump Administration’s anti-regulatory agenda has yet to permeate the Securities and Exchange Commission, which remains opposed to relief for collateralized loan obligations.

The $9.8 billion of new collateralized loan obligation issued during the month outstripped the volume of deals being refinanced for the first time this year.

The Massachussetts Educational Financing Authority is issuing $162.23 million of private student loan revenue bonds; Fannie Mae obtains more front-end credit risk transfer; Canadian Tire Bank taps credit card market.

At an industry conference Thursday, three former banking and capital markets regulators – including former U.S. comptroller Eugene Ludwig – joined in the chorus of industry voices doubting that any near-term relief from Dodd-Frank rules is on the table.

A recent challenge to the legality of leverage lending guidance could have broad implications for issuers, underwriters and investors in corporate loans. But the end result could be added complexity, rather than a wholesale easing of restrictions

Much of the discussion at an industry conference in New York Wednesday was devoted to the potential complications that could result from rolling back rules enacted by the previous administration under Dodd-Frank.

A panel of retail industry analysts explored how several department store and specialty retailers face hard times in an environment in which sales declines, high leverage and competition from online retailers are pressuring many brick-and-mortar chains' ability to service their speculative-grade debt obligations.

CLOs are increasingly negotiating with investors for longer reinvestment periods. S&P Global takes a less favorable view of the practice than the other two major rating agencies, Fitch Ratings and Moody’s Investors Service.