CDOs/CLOs

Morgan Stanley plans to repackage a downgraded collateralized debt obligation backed by leveraged loans into new securities with AAA ratings.

Moody’s Investors Service published a report today called V Scores and Parameter Sensitivities in the Global Cash Flow CLO Sector.

Clients plan to serve Belgian bank KBC with papers stating it didn’t properly warn consumers of risks involved with CDOs, according to published reports.

Managing a loan portfolio these days may feel like a roller coaster ride with no seatbelt. In the past six weeks, the car has been inching up the incline, along with secondary loan prices and the number of repayments. However, market participants believe the loan market is about to take another plunge.

PF2 Securities Evaluations, a provider of CDO security evaluations and analytics, hired Ilona Roze as a legal associate.

Financial advisory firm Capital Market Risk Advisors (CMRA) hired Peter Niculescu as partner and head of fixed income.

Departing from its usual spot in Las Vegas, the American Securitization Forum will be holding its annual 2010 conference in Washington, D.C.

Fitch Ratings has observed a larger number of asset managers removing credit impaired assets at prices below par, resulting in realized loss to CDO collateral.

This is the second of two parts of an article examining the dilemma confronting CLO mangers who wish to improve their portfolios by trading rapidly deteriorating loans for better-performing so-called "deep discount" loans. This portion focuses on the industry's call for reform and suggests solutions to this problem.

Credit organizations, including Moody's, have been increasing measures aimed at diligently and continually evaluating the limitations of financial models and the assumptions and data behind them, especially with regard to structured securities. These steps can bolster the assessment of analytical uncertainties.