-
NEW YORK-Widespread talk of a meltdown in the U.S. housing market - and the effects it might have on the structured finance market through the RMBS sector - have not diminished the popularity of carry trades in the cash CDO market. Indeed, the power play continues to attract a lot of hedge fund and similar fast-money players, said several analysts at the Bond Market Association's (BMA) CDO Investors Conference held here last week.
October 9 -
The International Swaps and Derivatives Association last week unveiled a protocol that will allow cash settlement across a broad spectrum of credit derivative products - including single name index tranches and plain vanilla credit derivatives. The protocol is essentially the same as those used for half-a-dozen credit events since the May 2005 bankruptcy of automotive supplier Collins & Aikman Corp. to settle covered index trades.
October 2 -
Commercial loan provider CapitalSource has priced its most flexible ABS transaction to date, a $1.5 billion revolving cash flow CLO.
October 2 -
Maxim Group is preparing to bring its first CDO to the market following the departure several months ago of its CDO group head Wing Chau. Maxim shelved its CDO group, Maxim Advisory, after Chau and several key staff members left. Now, under the name Maxim Capital Management, and with former Bear Stearns managing director Doug Jones at its head as president and chief investment officer, the team is preparing to emerge again as a regular CDO manager.
October 2 -
Far from going quietly into the night, the third quarter of the ABS market came to a close with a final week that saw slightly wider HEL spreads and the absence of Fitch Ratings from a stream of home equity loan ABS deals.
October 2 -
Driven by investor demand and the availability of new structures, commercial real estate CDO issuance has reached nearly $30 billion so far this year, compared to only $14.5 billion in 2005 and $6.4 billion in 2004. While the sector has continued to perform well, Fitch Ratings last week warned that the pace of upgrades it has been enjoying is not likely to continue.
October 2 -
Still on a roll in the world of CLO issuance, private equity firm The Carlyle Group announced the close of its ninth U.S. high yield fund last week Carlyle High Yield Partners IX (CHYP IX).
October 2 -
Perils associated with natural disasters have become more intense since 1997. Just as the insurance-linked securities sector has adjusted to these changes by developing new structures to absorb risks associated with such events as winter/ice storms, floods and tornadoes, Moody's Investors Service recently unveiled its expanded approach to rating the bonds.
October 2 -
CLO and leveraged loan spreads are expected to remain at or near tights as credit fundamentals in the corporate sector remain robust against a backdrop of deterioration within the U.S. housing market, Bear Stearns analysts wrote last week.
October 2 -
Full Credit to Book (Equal if Joint) U.S. Public ABS Market/144A Market Managers Proceeds (mils) Rank Mkt. Share # of Issues JP Morgan 10,300.2 1 17.0 20 Citigroup 8,956.9 2 14.8 14 Wachovia Corp 6,815.8 3 11.2 13 Barclays Capital 6,739.9 4 11.1 11 Deutsche Bank AG 5,395.6 5 8.9 12 Banc of America Securities LLC 4,248.3 6 7.0 8 Royal Bank of Scotland Group 4,019.0 7 6.6 8 Credit Suisse 3,466.3 8 5.7 7 HSBC Holdings PLC 2,389.3 9 3.9 3 Merrill Lynch & Co Inc 1,847.5 10 3.0 4 Industry Total 60,676.6 - 100.0 68 Source: Thomson Financial
October 2
