CDOs/CLOs

The Federal Reserve Bank of New York is planning on selling more assets from 20 CDOs forming part of its Maiden Lane III (ML III) portfolio. Offering circulars were released today.

McDermott Will & Emery has hired structured finance attorney Perry Sayles to its New York office as a partner in its financial institutions advisory practice group.

Despite first-half CLO volume that bested 2011’s total and put issuance well beyond the midway point of even optimistic projections for this year, CLO market participants remain somewhat cautious about how many more deals the market can absorb in the second half.

Issuance of European CLOs may be stalled, but 3i Debt Management believes that once the macro-economic picture improves, these structured finance vehicles will resume their role as important players in the region's loan market. That was part of the rationale for the London-based firm's recent acquisition of seven European CLOs from U.S. money manager Invesco.

Securitization market executives may want to reconsider their summer vacation plans. Not only are significant rules stemming from the Dodd-Frank Wall Street Reform and Consumer Protection Act likely to be issued soon, but an earlier proposal amending Regulation AB, which had been put on the backburner, may be finalized over the next few months.

ABCP looms large among the victims of Moody's bank downgrades on June 21. Some of these banks support ABCP conduits, which, in turn, saw their ratings drop. And in ABCP land, that single grade difference can make or break a conduit. It's because money market funds - ABCP's biggest investors - can only buy 'P-1' paper.

CLO volume this year has been a bright spot for leveraged loans, with nearly $18 billion in funds launching so far, according to Royal Bank of Scotland analysts.

Credit Suisse and Mitsubishi UFJ Securities are raising a $413.4 million collateralized loan obligation for Prudential Investment Management, according to a person with knowledge of the transaction.