CDOs

In the week ended March 22, Moody’s Investors Service assigned new provisional or definitive ratings to seven collateralized loan obligations totalling $3.8 billion.

The catalysts were changes in the models used by Fitch, adverse selection in older mortgage pools, and the sovereign crisis in Europe.

A deposit-insurance rule change that takes effect April 1 has been spurring issuance of collateralized loan obligations, according to Barclays.

Banks are expected to start buying riskier portions of collateralized loan obligations in response to a deposit-insurance rule change that takes effect next month.

Pinebridge Investments said today it closed its first collateralized loan obligation of 2013 after upsizing the deal to $598 million.

Moody’s Investors Service has changed how it incorporates sovereign risk into structured finance transactions.

RBS Securities is arranging a $400 million collateralized loan obligation for Denali Capital LLC, according to a presale report from Moody’s Investors Service.

Senior CLO noteholders awake to the strong possibility that recent vintage deals could be called, and are taking steps to mitigate the risk, according to analysts at the Royal Bank of Scotland.

Ares Capital is preparing a collaterlize loan obligation that will acquire 70% of its intitial portfolio through a participation agreement with one of the firm's other funds.

JP Morgan Securities is marketing a $399 million collateralized loan obligation for Greywolf Capital Management, the firm's first deal since the financial crisis.

Analysts at Bank of America Merrill Lynch have a beef with new rules from the Basel Committee on Banking Supervision (BCBS) that spell out how much regulatory capital needs to be set aside for securitizations.

As many as 20 board members have resigned from the American Securitization Forum in a dispute over control of the trade group.

Europe's first collateralized loan obligation after the financial crisis, called Cairn CLO III B.V., has features that are common in U.S. CLOs issued over the past two years that limit credit risk, according to a Moody's Investors Service.

Spreads in the primary market have tightened so much that equity holders are calling collateralized loan obligations issued as recently as 2011 in order to fund new deals more cheaply.

Spreads in the primary market have tightened so much that equity holders are calling collateralized loan obligations issued as recently as 2011 in order to fund new deals more cheaply.

3i Group plc has closed on a $500 million deal dubbed Jamestown CLO II; it is a refinancing of the $400 million Fraser Sullivan CLO V.

Wells Fargo Securities is marketing a $516 million collateralized loan obligation for Octagon Credit Investors, according to a presale report published by Standard & Poor’s.

It’s been a long time coming, but Europe is about to see its first collateralized loan obligation since the financial crisis, a €300 million deal from Cairn Capital.

Columbia Management and the Carlyle Group both priced collateralized loan obligations this week in line with initial guidance; the senior tranches of both deals had spreads of Libor plus 130 basis points.