CLOs & Structured Credit

Highlights

• 10 May 2012
  • CLO Interest: Redemptions will continue
    Optional redemptions of US broadly syndicated CLOs will continue, particularly among those with strong over-collateralization levels and declining equity payouts, our newsletter says. Also discussed: the significant percentage of CLO notes whose reinvestment periods ended or will end during 2011-12, the concentrations of lower-quality credits rising in European CLOs, the mostly stable performance of US CLO performance in February, the decline of performance in Europe, among other topics... Full Report
• 30 Apr 2012
  • CLO Interest: PE-Sponsored firms pose modest risk
    Most CLOs have modest exposure to PE-sponsored firms, says our newsletter, while at the same time, CLOs will benefit from opportunities arising because of banks’ more stringent capital requirements. Also discussed: the rise in default rates we expect for SME transactions from Southern Europe, among other topics... Full Report
• 23 Apr 2012
  • Structured notes/repackaged securities exposed to weakening sovereign and bank credit
    Following the placement of the ratings on 131 banks and securities firms on review for downgrade on 15 February, we placed on review for downgrade our ratings on (i) 151 directly linked structured notes/repackaged securities comprising 71 deals in the US and 80in Europe; and (ii) 39 indirectly linked structured notes/repacks, comprising one US deal and 38 European deals. Additionally, we downgraded the ratings of three repackaged securities with direct exposure to European sovereigns whose ratings and outlooks we have downgraded... Full Report