Investments

Risk retention rules that Japan's Financial Services Agency has proposed for securitizations may not apply to U.S. collateralized loan obligations after all, according to the LSTA.

Guggenheim, Carlyle Group, Credit Suisse and Blackstone have launched four deals totaling €1.74 billion, all with AAA spreads of at least 100 basis points over Euribor.

The only change to the deal is a slightly smaller prefunding amount; one loan that had been expected to be acquired after settlement has already been closed.

Cadogan Square CLO XIII DAC will be Credit Suisse Asset Management's fourth euro-denominated CLO issued in the past 12 months.

That's significantly wider than 121 basis points average for new CLOs backed by broadly syndicated loans that were issued in December.

GoldenTree's $757 million CLO is the first deal seeking to price in the 2019 primary market, while Octagon Credit Investors is refinancing a $791.5M, 2014-vintage CLO (for a second time).

It may not signal a recession, but structured finance pros are still preparing for a more risk-off environment.

The Japan Financial Services Agency is considering increasing capital requirements for holdings of securitizations if the sponsors do not have "skin in game."

A few took advantage of deep discounts to scoop up collateral for new deals on the cheap; others swapped out some of their weakest credits for more highly rated loans.

Citigroup's residential mortgage originations declined 23% and its home-loan revenue dropped by 35% year-over-year in the fourth quarter of 2018, as the company continued to distance itself from home loans.

Z Capital's $350M CLO can hold up to 50% of its assets in risky triple-C rated assets, giving it a wide cushion to bulk up on the growing supply of single-B loans near the CCC-rating threshold.

The market has not seen a prolonged period of widening spreads since an eight-month period before early 2016, which was the launching point for a nearly two-year run of AAA spread narrowing.

The deal, dubbed Hercules Capital Funding Trust 2019-1, comes just two months after the business development company completed a $200 million transaction.

Steven Mastrovich joins the firm a week after the departure of partner and CRE/CLO specialist Steven Kolyer for Sidley Austin.

The global asset manager is sponsoring its first post-crisis CLO in a €409.8 million transaction that priced through Barclays on Monday.

Since Nov. 21, investors have withdrawn a net $14.88B from the loan fund market amid concerns the Fed will limit rate hikes in 2019; the exodus makes loans even more of a buyer's market for CLOs.

Steven Kolyer, a 27-year veteran of law firm Clifford Chance, was recruited to build out the burgeoning practice advising lenders and arrangers in bridge-loan CRE financing.

This year saw elation over the rollback of risk retention for CLOs give way to concerns about leveraged lending, the 1st post-crisis downgrade of a subprime auto deal, the 1st AAA for commercial PACE, and much, much more.

The single-family rental market could benefit from more consistent loan terms and expanded secondary mortgage market opportunities, Freddie Mac found in a preliminary test of expanded involvement in the sector.

They differ slightly from those released earlier by the Fed-convened ARRC, including language making it easier to ditch a SOFR-derived benchmark in favor of a new benchmark that has yet to be developed.