Top stories on creditflux.com: from a key investor leaving to a pipeline growing plump
17 March
SVB and the case of the missing CLO exposure
Failing bank SVB held an alarming 92% of its roughly $117 billion investment portfolio in US treasuries and government-sponsored MBS. The remainder was formed of yet more fixed-rate in the form of municipal and corporate bonds.
Truist’s Francis Mitchell: “Not all depositories fully appreciate interest rate risk, which has led to some taking on sub-optimal risk adjusted returns.”
2 March
Insurers draw battle lines after NAIC proposal
“The fracture in the insurance community is now obvious,” says Paul Forrester, partner at Mayer Brown after insurers which don’t invest in CLO equity argued for higher capital charges for those which do.
10 March
Ares sells CLO anchor equity positions
The firm offloaded 2017 CLO equity in deals managed by Carlyle, LCM and Steele Creek.
13 March
Credit Suisse global and US CLO heads to join CIBC
Global CLO head Brad Larson and head of US CLO syndication Gabrielle Garcia leave just days before Credit Suisse’s troubles escalate into a sale.
13 March
CLO market observes SVB collapse with trepidation
“Regional bank stocks are down pretty hard today,” says Dan Ko, portfolio manager at Eagle Point Credit Management. “Some of them are triple A buyers who have more pressing matters on their hands than CLO primary activity right now.”
14 March
Crystal expands into IG tranches with new global fund
BK Investment Grade VIII will invest in single A and triple B CLO tranches.
16 March
Credit Suisse European CLO exposure hits zero
A Carlyle Group CLO warehouse is liquidated, following a similar fate to CSAM and Five Arrows deals.
16 March
CLO portfolio manager parts ways with Hayfin
Asha Narayan has parted ways with Hayfin in London. She joined in September 2021.
20 March
Credit Suisse/UBS deal to create $5 trillion asset manager
The emphasis will be on wealth and asset management, according to a statement released by UBS as it acquires Credit Suisse.
23 March
JPY CLO repacks re-emerge as manager plans new US CLO
Moody’s says it has assigned a provisional Aaa rating to repackaged CLO notes linked to a forthcoming CLO managed by Trinitas Capital Management.
28 March
Deutsche Bank European CLO head leaves
Nikunj Gupta has left Deutsche Bank, with ex-Credit Suisse official Dimitris Papadopoulos lined up to replace him.
31 March
Pressure mounts as CLO warehouses turn stale
Some 64% of US CLO warehouses have been running for over nine months as the primary market remains shut.
3 April
CLO head set to leave Morgan Stanley EV
Michael Kinahan is retiring from Morgan Stanley Eaton Vance at the end of the year.