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 was an active month for high yield bonds on the primary market and was the most active month since this past October.
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.
Managers arent 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 named Michael Curtis as a portfolio manager based in its London office. Curtis was most recently a portfolio manager with Alpstar Capital.
Los Angeles-based TCW Group closed the $400 million Figueroa CLO 2013-2, its second collateralized loan obligation of the year. The CLO consists of syndicated secured leveraged loans.
Investors participating in a roundtable organized by Standard & Poor's remain keen on buying CLOsespecially in the primary marketbut they are also wary of emerging risks linked to more leverage and covenant-lite loans in the pools.
The final version exempts syndicated loans from a ban on proprietary trading; there's also a carve-out allowing banks to hold and lend money to CLOs.
Barclays expects issuance of collateralized loan obligations in 2014 to be similar to this years total, in the range of $75 billion to $80 billion.
The 335 million Euro-Galaxy III CLO has a number of features that address the region's scarcity of collateral, including variable funding notes.