CLOs

S&P's review of leveraged-loan deals across multiple sectors found only 17% of lenders have provisions that would disallow borrowers from transferring collateral assets to unrestricted subsidiaries outside lender reach.

According to Kroll, this is the middle-market lender's first securitization of growth-opportunity loans made to venture-capitalized software firms that have yet to develop earnings or substantial assets.

The $5 billion financing package may also include around $1 billion of secured debt that would be sold to investors, as well as about $1.7 billion in letters of credit that would be split among participating banks

Members of the House Financial Services Committee cited leveraged lending, cybersecurity and the switch to a new interest rate benchmark among potential systemic risks that keep them up at night.

Natalya Michaels, recently of Artisan Partners, will be a managing director with a focus on marketing, investor relations as well as expanding the firm's investor and product base.

Collateralized loan obligations in Europe are running low on fuel, prompting some investors to seek greater protection that may slow the market even further.

Ratings agencies have argued recently that the population of loans whose ratings fall below the lowest single-B rating – the lowest rung above the highly speculative triple-C ratings layers – will grow significantly in an economic downturn.

Modifiable and splittable/combinable tranches are part of a new feature emerging in the CLO market which is intended to partially set off the negative impact to holders of CLO debt associated with the call feature.

CBAM Partners announced the hiring away from AXA Investment Managers an executive with significant experience in the CLO and European debt markets to assist in the launch of its European credit strategies business.

Managers appear to be increasingly safeguarding portfolios from a potential downturn by dumping distressed assets.

The manager will have four years to actively buy and trade loan assets in THL Credit Lake Shore MM CLO II, compared to two in THL's debut deal from March.

The $435.5 million Crown Point CLO 8 is a broadly syndicated collateralized loan obligation that has a “significantly below average” WARF of 2678, indicating a portfolio with a greater share of safer leveraged loans than other CLOs.

Assured Guaranty will pay $160 million to buy out majority shareholder Affiliated Managers Group Inc. and the founders. The insurer will also invest an additional $590 million in the firm and its funds.

Newly promoted partner Timothy Milton is co-portfolio manager for the Vibrant CLO platform, while veteran portfolio manager Eduardo Cabral joins as managing director.

Moody’s said the Fed’s cuts – the first in a decade by the central bank – will boost real estate and consumer ABS collateral by helping lenders uphold underwriting standards and provide affordable debt options to borrowers.

The 14 deals priced the week of July 22 included 10-year deals that have bought 2019 volume to $73 billion, or just shy of the comparable $75 billion mark in 2018, which had record total volume of $129 billion.

CLO manager ZAIS Group acted as adviser on the transaction as part of its recent push into ESG and impact investing via the securitization markets.

The initial public offering of 1.2 million shares of Eagle Point Income Co. raised $23.1 million.

Peter Antoszyk and David Hillman, co-heads of Proskauer Rose LLP’s private credit restructuring group, think the dry powder that investors have access to will help ease restructurings.

The U.S collateralized loan obligation market largely bid farewell to its biggest buyer earlier this year. Now Japan’s Norinchukin Bank is back.