CDOs/CLOs

U.S. CLO Managers March to Europe

Deal economics of European CLOs are improving, trumping regulatory challenges and a shortage of collateral

Standard & Poor's Sounds Alarm on Covenant-Lite Loans in CLOs

Corporate borrowers continue to take advantage of strong demand for loans to re-price existing debt, and this is putting a squeeze on some of the biggest buyers of loans—collateralized loan obligations.

Fitch Ratings does not expect to either upgrade or downgrade any European collateralized loan obligations for the remainder of 2013.

The Loan Syndications and Trading Association and the Securities Industry and Financial Markets Association have jointly developed a pair of proposals to help collateralized loan obligations comply with the U.S.'s new Foreign Account Tax Compliance (FACTA) tax regulations.

Issuance of new U.S. collateralized loan obligations is likely to level off after ‘skyrocketing’ in the first quarter, according ot Fitch Ratings.

Pramerica has adjusted the structure of a €300 million CLO it priced this month, presumably to reflect the fact that an unusually large portion of the collateral is in fixed-rate bonds, as opposed to floating rate loans.

Seix Investment Advisors is returning to the CLO market for the first time since the financial crisis with a $400 million deal.