CDOs/CLOs

In the week ended March 22, Moody’s Investors Service assigned new provisional or definitive ratings to seven collateralized loan obligations totalling $3.8 billion.

The catalysts were changes in the models used by Fitch, adverse selection in older mortgage pools, and the sovereign crisis in Europe.

A deposit-insurance rule change that takes effect April 1 has been spurring issuance of collateralized loan obligations, according to Barclays.

Banks are expected to start buying riskier portions of collateralized loan obligations in response to a deposit-insurance rule change that takes effect next month.

Pinebridge Investments said today it closed its first collateralized loan obligation of 2013 after upsizing the deal to $598 million.

Moody’s Investors Service has changed how it incorporates sovereign risk into structured finance transactions.

RBS Securities is arranging a $400 million collateralized loan obligation for Denali Capital LLC, according to a presale report from Moody’s Investors Service.

Senior CLO noteholders awake to the strong possibility that recent vintage deals could be called, and are taking steps to mitigate the risk, according to analysts at the Royal Bank of Scotland.

Ares Capital is preparing a collaterlize loan obligation that will acquire 70% of its intitial portfolio through a participation agreement with one of the firm's other funds.