Structured Credit

Babson: 2Q CLO Issuance Inverses 1Q Spread Trends

In a reversal from first-quarter trends, Babson Capital reports that spreads tightened slightly in both the U.S. and Europe for AAA paper in CLO 2.0 issues while lower-rated mezzanine tranches saw widening spreads of 20 bps.

TPG, PineBridge Add Nearly $1B to U.S. CLO Pipeline

TPG Institutional Credit Partners and PineBridge Investments are in the market with two collateralized loan obligations totaling nearly $1 billion.

Volcker Rule Extension Comes with Big Catch

The Federal Reserve’s two-year deadline extension for banks to conform their collateralized loan obligation holdings to the Volcker Rule already has a troubling limitation, an industry trade group spokesman said Wednesday at a CLO conference in New York.

LSTA Bemoans Catch in Extension of CLO Volcker Compliance

A Federal Reserve limitation on the two-year extension it granted banks to bring CLO holdings into Volcker Rule compliance will end up harming divestiture efforts, a trade group spokesman said.

Leveraged Loans Surge in Q1

Leveraged loan issuance of $276 billion in the first three months of 2014 was down from this period a year ago. But it still ranks as the third-highest volume on record since 1987.

Securitization at Lowest Volume Since 2009

Asset-backed and mortgage-backed securitization volume is at its lowest year-to-date volume since 2009, a steep drop from its position at this point last year, according to Dealogic.

January Proves Active for HY New Issues

January was an active month for high yield bonds on the primary market and was the most active month since this past October.

More Muscle for BDCs?

Business development companies, which have become important lenders to small and medium sized companies, could get some additional financial muscle, potentially putting them in more direct competition with banks.

CLO Managers Preparing to Exclude Bonds

Managers aren’t waiting around to see if collateralized loan obligations get a last-minute reprieve from the Volcker Rule. Some recently priced deals, by managers including Columbia Management Investment Advisors and Black Diamond Capital Management, have provisions for excluding investments in corporate bonds.

3i Debt Management Adds Portfolio Manager

3i Debt Management named Michael Curtis as a portfolio manager based in its London office. Curtis was most recently a portfolio manager with Alpstar Capital.

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Matthew Natcharian

Head of Structured Credit

Firm: Babson Capital Management

In the news: CLO Investors Flocking to AAA Paper

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