CDOs

Originators of private student loans can't seem to catch a break. Two years ago, the federal government stopped guaranteeing these loans, leaving them unsecured; more recently, there's been a push in Congress to make student loans dischargeable in bankruptcy. The loans are also attracting scrutiny from the recently empowered Consumer Finance Protection Bureau.

The Carlyle Group isn’t the only market player seeing opportunity in adversity. In a move that might seem counterintuitive, in light of conditions in the European CLO market, 3i Debt Management is buying the majority of Invesco’s CLO business in the region.

3i Debt Management is buying the majority of Invesco’s European collateralized loan obligation business, the companies said today.

Standard & Poors last week upgraded 17 tranches from four CLOs. The rating agency upgraded four tranches to 'AAA' and downgraded a tranche from 'BB' to 'B'.

Golub Capital Partners has priced a $411 million collateralized loan obligation backed by broadly syndicated loans, according to a report by Standard & Poor’s.

JPMorgan has established price guidance on a $513.35 million CLO it is marketing for Carlyle Investment Management, according to Reuters.

The Federal Reserve Bank of New York today resumed its auction of Maiden Lane III's holdings in the Duke CDO. Bids are due on Thursday, May 24.

Standard & Poor's today released research on the role of credit ratings in the financial system.

Barclays Capital says there appears to be a “floor” on 'AAA' CLO spreads, at least until there is some better news out of Europe.

The Federal Reserve Bank of New York has postponed the sale scheduled for today from its Maiden Lane III portfolio.

Morgan Stanley isn’t the only bank marketing a CLO this week; its competitors are shopping at least four other deals.

Two New York Senate Committee chairmen have raised the possibility of investigating bond insurer MBIA’s behavior in applying for a transformation of the company in 2008 and 2009.

Federal Deposit Insurance Corp. (FDIC) General Counsel Michael Krimminger will be leaving the agency later this month to join the law firm of Cleary Gottlieb Steen & Hamilton as a partner in its Washington, D.C., office.

Moody's Investors Service today commented on how it evaluates the effect of global and bank credit deterioration in Europe on structured finance securities.

Morgan Stanley is arranging a $470 million CLO for LCM Asset Management.

On the first day of a trial in a lawsuit brought by banks to undo bond insurer MBIA’s split into two companies, the judge made clear she wanted the proceedings to focus on legal rather than factual issues.

MJX Asset Management is planning what appears to be its first CLO since the financial crisis.

Assured Guaranty posted a small profit for the first quarter of 2012 and on Thursday announced a deal with Deutsche Bank over soured MBS.

MBIA lost more than a half billion dollars in the 1Q12. The company’s adjusted pre-tax loss was $548 million in the quarter, compared to a $25 million profit in the first quarter of 2011. Its adjusted book value slipped to $32 a share from $34.50.

Middle market CLOs have remained relatively scarce since the financial crisis, as it’s still difficult for deal sponsors to get financing to warehouse loans to small and medium-sized companies.