CDOs/CLOs

The Federal Reserve Bank of New York plans to sell $7 billion from its Maiden Lane III portfolio which will include assets from seven CDOs .

Issuance of collateralized loan obligations, which had been running well ahead of last year’s levels, now appears to be on hold until credit markets stabilize, according to Bank of America Merrill Lynch.

Middle market CLOs have remained relatively scarce since the financial crisis, as it is still difficult for deal sponsors to get financing to warehouse loans to small and medium-sized companies.

Originators of private student loans can't seem to catch a break. Two years ago, the federal government stopped guaranteeing these loans, leaving them unsecured; more recently, there's been a push in Congress to make student loans dischargeable in bankruptcy. The loans are also attracting scrutiny from the recently empowered Consumer Finance Protection Bureau.

The Carlyle Group isn’t the only market player seeing opportunity in adversity. In a move that might seem counterintuitive, in light of conditions in the European CLO market, 3i Debt Management is buying the majority of Invesco’s CLO business in the region.

3i Debt Management is buying the majority of Invesco’s European collateralized loan obligation business, the companies said today.

Standard & Poors last week upgraded 17 tranches from four CLOs. The rating agency upgraded four tranches to 'AAA' and downgraded a tranche from 'BB' to 'B'.

Golub Capital Partners has priced a $411 million collateralized loan obligation backed by broadly syndicated loans, according to a report by Standard & Poor’s.

JPMorgan has established price guidance on a $513.35 million CLO it is marketing for Carlyle Investment Management, according to Reuters.

The Federal Reserve Bank of New York today resumed its auction of Maiden Lane III's holdings in the Duke CDO. Bids are due on Thursday, May 24.