CDOs/CLOs

The Securities and Exchange Commissioner took to the podium in the convention center of the Aria Resort & Casino to express to attendees his admiration for the economic benefits of securitization – and his disagreement with the risk-retention regulatory regime that has enveloped it.

The sharp selloff in leveraged loans has created opportunity for some CLO managers, particularly those with deep pockets. Managers that can quickly acquire loans at a discount in the secondary market can still make money bundling them into collateral for bonds.

Moody’s Investors Service’s ranking of the top 10 managers of collateralized loan obligations at year-end 2015 was largely unchanged from mid-year, both in terms of deal count or AUM. But the biggest players collectively lost some market share to their mid-sized brethren.

Well, something has to. For proponents of modernization and greater efficiency in the syndicated loan, bond, swaps, and private placement markets, it’s well past time to put investors, banks, brokers and borrowers on the same technological page.

Crestline Denali Capital is preparing its first collateralized loan obligation offering since it was formed by the merger of two long-time CLO managers last fall.

The second European collateralized loan obligation of the year is the first ever by U.S. money manager BlackRock.

A last-ditch lawsuit to shield collateralized loan obligations from risk retention reaches oral argument phase on Friday.

CLO manager CreekSource has priced its latest offering at wider-than-average spreads as it targets primarily first-lien senior secured loans with better-than-average speculative-grade ratings quality.

Issuance of U.S. collateralized loan obligtions is off to a slow start, with just two deals pricing in January; a single European deal priced.

Add Southcross Energy Partners, Seventy Seven Energy, Verso Corp., and Paragon Offshore to the list of credits held by collateralized loan obligation that appear to be headed for default.