The trust preferred securities used as collateral were originally issued by banks and insurance companies between 2002 and 2007 and the vast majority were originally held in nine bank and insurance TruPS CDOs that have since been redeemed.
Since 2013, CLO Managers have been issuing notes with rates that are initially low, but step up after 18 to 24 months, betting that they can refinance them more cheaply; so far their success has been mixed.
The Loan Syndications and Trading Association said Tuesday that it was postponing implementation until Sept. 1 in order to address a potential loophole benefiting international buyers.
The rating agency is rethinking just how risky the hybrid securities are in light of the way that they are treated when deals are refinanced; it may stop rating them altogether.
After years of bulking up on shared national credits, a number of regional banks are cutting back because of the heartburn from problem oil and gas loans. A few lenders are refusing to budge, but many will have no choice if they want to dilute the energy risk on their books.
The limited number of buyers able to write big tickets allows them players to dictate terms.
Managing Director, Structured Products
Firm: Guggenheim Securities
State student loan authorities sense a business opportunity helping graduates who are gainfully employed lower their payments. Their low-cost funding could put them in competition with banks and marketplace lenders.Current Issue