It follows in the footsteps of other CLO managers, including Apollo, KKR and Pinebridge, in taking advantage of a dramatic reduction in yield spreads over the past few months; the deal may also be amended to put it in compliance with the Volcker Rule.
The growing advantages for borrowers is most keen through institutional term loan Bs, which increasingly benefited last year from fewer maintenance restrictions and cheaper pricing to overtake high yield bonds as the leveraged finance instrument of choice for sponsors.
Christian Aufsatz was named managing director and head of European structured finance operations; he was previously in charge of commercial mortgage backed securities ratings.
The deal, DELFT 2017, is backed by 157.73 million in non-conforming, first-lien home loans originated by specialty lender ELQ Portefeuille that have been acquired by Morgan Stanley Principal Funding.
Storm 2017-1 B.V. includes five classes of notes, led by a senior Class A tranche that will comprise 93.02% of the notional value of the portfolio. The 'A' notes carry preliminary triple-A ratings from Moodys Investors Service and Fitch Ratings.
A nascent private bond market in France is expected to grow significantly over the next two years, and could complement, or possibly compete with, securitization of loans to small and medium-sized enterprises.
A policy fight is threatening the recovery of collateralized loan obligations in Europe.
European collateralized loan obligations issued pre-financial crisis are nearing the end of their reinvestment periods, yet the maturities of the loans that serve as collateral continue to shift further out into the future.
The latest generation of European CLOs may expose investors to a risk that didnt exist in most collateralized loan obligations issued before the financial crisis: fluctuations in foreign exchange rates.
With Global ABS around the corner, its only fitting that we turn our attention to Europe.
Treasurer, Head of Asset Management
Firm: NewStar Financial
The wireless carrier, though only rated single-B, has more leeway from existing investors to enter into a transaction like this than even some investment-grade companies.Current Issue