CDOs/CLOs

Earlier this week, Citigroup underwrote a new $500 million CLO, ending a year-long drought that saw no new vehicles consisting of widely syndicated loans.

Citigroup has underwritten $500 million for a new CLO that will be managed by FS COA Management, an affiliate of Fraser Sullivan Investment Management. And the CLO could price this week, according to Bloomberg.

New York-based Cohen & Co. has hired veteran fixed income sales executive David Clifford as its national sales manager for fixed income.

Standard & Poor's lowered its ratings on 29 tranches from nine U.S. CDO of ABS deals as well as removed 12 of these ratings from CreditWatch negative.

Babson Capital Management closed five CLOs with over $1.7 billion under management. Included in the transaction are Victoria Falls CLO, Diamond Lake CLO, Clear Lake CLO, Summit Lake CLO, and St. James River CLO.

Standard & Poor’s would like input from loan market participants on a proposed metric that would estimate a CLO’s recovery value.

At the onset of the credit crisis, market participants expected a wave of consolidation in the CLO market. The wave turned out to be little more than a ripple, with less than 5% of the CLO market making management changes during the last year and a half, according to analysts at Citigroup Global Markets.

CLO managers don't want the exit doors closed on them.

Euromax IV MBS S.A. (Euromax IV) triggered an event of default following a breach of its event of default overcollateralization ratio trigger. It’s likely to be the first of several European collateralized debt obligations to experience event of defaults triggered by a similar situation, Fitch Ratings said.

BNP Paribas appointed Giovanni Pini as head of ABS strategy and Olivier Morand-Duval as European head of ABS trading. Perry Inglis also joined as head of ABS valuation and origination.