CLOs

FORT CRE 2018-1 will include four loans recycled from the prior deal, including one that Kroll has identified as a loan of concern due to weak operating performance.

The sponsor appears to be paying for the privilege; the deal is structured with a super senior tranche of notes that benefits from considerably more subordination than the senior tranche of its prior deal.

Both managers are pricing their 3rd CLOs of 2018; the 135 basis point spread on Zais' is among the widest this year for a deal backed by broadly syndicated loans.

The pool includes loans for 23 new construction, converted or acquired assets, each in a pre-stabilization phase awaiting refinancing through a permanent agency takeout loan.

Guggenheim joins GSO/Blackstone and Bain Capital as longtime CLO managers expanding into the SME space this year.

We are one year deeper into an already extended credit cycle, so it’s even more important to focus on market complacency.

More collateralized loan obligations are failing weighted-average lift tests due to the dearth of available loans whose near-term maturities could provide some relief to portfolios.

Eagle Point's CEO criticized "hyperbole" about growing risks in leveraged loans and CLOs, noting the benefits that price volatility can present to equity buyers.

The structured credit specialist will more than double its $2.9 billion in assets by acquiring a portfolio of three collateralized loan obligations that Trimaran Advisors runs from KCAP Financial.

The $600 million FORT CRE 2018-1 is more highly leveraged than the private equity group's debut transaction in August 2016, it is also actively managed and includes a $50 million tranche of revolving notes.

According to presale reports, PGIM is marketing a $509.5 million Dryden 61 CLO transaction in the states, while also prepping a €411 million Dryden 66 Euro CLO portfolio.

The transaction is one of only three CRE CLOs issued post crises with a collateral balance of $1.0 billion or more, according to Kroll Bond Rating Agency.

The firm's risk profile has not altered, executives said on a third-quarter earnings call Wednesday; it remains "appropriately cautious."

The €411 million deal puts it in the small club of UK managers that have completed three or more transactions in 2018.

The New York-based firm is adding 4.9 years to the reinvestment period of the $518.6 million Neuberger Berman CLO XVIII.

The $597 million AREIT 2018-CRE2 is also slightly less concentrated than the sponsor's inaugural deal, completed in February.

The London-based manager is including two classes of fixed-rate notes, including a rare triple-A rated nonvariable-rate tranche, in its €412 million Contego VI DAC portfolio.

The Federal Reserve is getting more concerned about risks from the leveraged loan market, with a key official saying it's now taking a "closer look" at whether banks are chasing deals without adequately protecting themselves against losses.

It seems a lot of CLO managers who were worried about competing amid heavy supply in the fourth quarter have put issuance on hold until 1Q 2019.

S&P also upgraded five more senior tranches of the deals citing paydowns, which in one CLO was accelerated by the diversion of interest from sub notes.