CDOs/CLOs

The share of loans in Arbor's CLOs that failed to make a scheduled payment more than doubled in the fourth quarter, according to preliminary data compiled by Banco Santander SA.

The underlying transactions pay on a pro-rata basis, but that can switch to sequential pay if performance triggers, which can be addressed, are breached.

The transaction is collateralized by at least 95% senior secured loans, cash, and eligible investments, S&P says.

Williams co-founded financial advisory and consulting firms Simatree and Galway Holdings, and is a retired NBA player and ESPN host.

A robust selection of securitized products, including ABS, CMBS, CLOs, and agency and non-agency MBS, will be included in the new fund.

In a rare glimpse into the opaque world of private credit, a recent review of credit "estimates" by S&P Global Ratings showed that the quality of debt extended by private lenders to dozens of companies whose loans are bundled into CLOs is deteriorating.

Lam, who oversees the firm's structured credit investment strategies, managed CLOs, separate accounts and commingled accounts. Lam succeeds Andrew Gordon, who will assume the role of executive chair of the board of managers.

A majority of the commercial real estate CLO's collateral has pari-passu participations, including 18 that have a related obligation for an unfunded future advance.

The bank recently hired Nikunj Gupta as head of credit structuring in order to strengthen its existing team. Gupta had previously headed up the European CLO primary business at Deutsche Bank.

Investments poised to do well include partially paid down collateralized loan obligations, which are backed by loans taken out by highly indebted corporations, called leveraged loans.