Investments

Stuart Morrissy, a leveraged finance specialist, joins the law firm from the New York office of Milbank, Tweed, Hadley & McCloy.

The $308 million Deepath CLO 2018-1 has an unusually large allowance for riskier triple-C loans of up to 17.5% of the portfolio.

The $153.7 million Peaks CLO 3 also features a high ceiling for triple-C-rated loans and for "current-pay" loans that meet one or more criteria for default.

New Penn Financial will change its name to NewRez at the start of 2019, reflecting its acquisition earlier this year by New Residential Investment Corp.

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.

Consolidation is coming in the mortgage industry, but a protracted timetable will continue to constrict industry profits.

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.