Highland Capital hires Smith to business development team with CLO focus

Highland_Capital_Management_597435_i0Highland Capital Management has hired Felicia Smith as managing director to its business development team. She will be responsible for identifying and developing new relationships with institutional clients, with a particular focus on raising assets for Highland’s CLO and credit platforms.

Based in Dallas, TX., Smith will report to Josh Terry, head of structured products and trading for Highland Capital Management.

Smith joins Highland from Santander Consumer USA (SCUSA), where she served as vice president of capital markets, and prior to SCUSA Smith worked in sales and trading at J.P. Morgan Chase, and as an analyst at J.P. Morgan Private Bank.

Highland Capital Management is an SEC-registered investment adviser which, together with its affiliates, has roughly $19 billion of assets under management. – Staff reports



Crestline Investors partners with Denali to expand loan, CLO business

crestlineCrestline Investors announced today that it has partnered with Denali Capital to expand a CLO platform under the broader Crestline suite of investment products. The business will operate under the name Crestline Denali Capital.

Denali has had a relationship with the principals of Crestline since it began operating in 2001. “The new alliance adds a well-established CLO manager to the Crestline family of product offerings and utilizes Denali Capital’s expertise in sourcing and managing syndicated senior loans and related assets for the purpose of structuring and managing high-quality CLOs and other funds,” the firms said in a statement.

Under the new agreement, Crestline will sponsor a series of new CLOs, the first of which it said is underway, to be managed by Crestline Denali Capital. The firm will also position itself to pursue other investment strategies in the loan asset class.

Fort Worth, Texas-based Crestline is an alternative investment management firm, which manages about $8 billion in client assets across separately managed accounts and commingled funds for institutional investors.

Oak Brook, Ill.-based Denali currently has approximately $1.5 billion of assets under management through various funds, mainly CLOs. – Staff reports


Leveraged Loans: US braces for risk retention as volatility hits – CLOs

CLO roundup 2014-10-20 chart 1

Broader market volatility gave the CLO market cause for concern last week with widening liability spreads threatening to disrupt the new-issue pipeline over the coming weeks. Still, for others, the sharp drop in loan prices created opportunity, with one of last week’s transactions widely rumoured to be a print and sprint. This week should again be eventful with two industry conferences and the anticipated release of the U.S. risk retention rules.

Against this backdrop, U.S. CLO new-issue volume in the year-to-date rose to $101.01 billion by the end of the week, from 187 deals, according to LCD. During the same period a year ago the market had issued $61.42 billion from 127 CLOs. – Staff Reports

For more news, analysis, and data on the leveraged loan market and CLO segment check out or Loan Market Primer.


Onex Credit Partners launches European platform with Baker hire

ONEXOnex Corporation announced today that Stephen Baker will join the Onex Credit Partners team as it establishes a London office to expand the platform to Europe. Initially, the platform will focus on placement of European CLOs.

Onex Credit manages approximately $4.7 billion through several debt strategies. Onex Credit recently completed its largest CLO to date, offering approximately $1 billion in securities and loans in a private-placement transaction believed to be the first broadly syndicated U.S.-dollar CLO structured to comply with European risk-retention requirements.

Prior to joining Onex Credit, Baker was based in London as a senior portfolio manager with CQS, and has also held senior leadership roles in leveraged credit, syndications, and corporate finance with Scotia Capital, Bank of America, Barclays, and Canadian Imperial Bank of Commerce.

Private equity firm Onex Corporation has offices in Toronto, New York, and London. At Onex Credit Partners, Onex manages and invests in leveraged loans, CLOs, and other credit securities. The company has roughly $22 billion of assets under management, including $6 billion of Onex capital, in private equity and credit securities. Onex invests its capital directly and as the largest limited partner in each of its funds. – Sarah Husband

Follow Sarah on Twitter for the latest CLO market news and insight.


CVP and Macquarie enter agreement to issue CLOs

Credit Value Partners, LP and Macquarie Group are collaborating on the creation of a series of CLOs, according to a company statement.

Under the arrangement, Macquarie will provide equity capital, warehouse financing facilities, and structured credit expertise toward the creation of these CLOs.

The CLOs are expected to be comprised mainly of institutional leveraged loans and will be managed by CVP.

The arrangement benefits CLO investors through the combined expertise of CVP and Macquarie in investment management, origination and structured credit.

In addition, the availability of equity capital financing from Macquarie could help with the risk-retention regulation when it comes into effect.

The strategy mirrors a similar arrangement established between Macquarie and Sound Harbor last October.

The arrangement does not prevent CVP from doing CLOs with other equity providers.

CVP, based in Greenwich, Conn., specializes in managing portfolios of high-yielding corporate loans and opportunistic credit investments, with over $1.75 billion of regulatory assets under management. The CVP team was formed within Credit Suisse Asset Management Group in 2008 and became an independent firm in 2010. CVP is led by Don Pollard, and the firm’s CLO platform is headed by Joe Matteo.

The firm priced its CVP Cascade CLO-2 in July this year via Credit Suisse, marking the manager’s second U.S. CLO under management. –Sarah Husband

Follow Sarah on Twitter for the latest CLO market news and insight.


CLO roundup: U.S. nears volume record as Europe AAAs see new low

The CLO market returned to form last week as eight managers printed deals in the U.S. and Europe, for a total of $3.88 billion, according to LCD. Of this, the U.S. priced six for $2.8 billion, while Europe priced two for just over $1 billion. Global volume stands at $110.56 billion in the year to date, according to LCD.

Year-to-date issuance in the U.S. is $95.87 billion from 177 deals, nearing the all-time high of $97.01 billion in 2006. Given the near-term pipeline, which holds at least six CLOs for roughly $3 billion, it’s highly likely the record will be broken this week. In the same period last year, issuance stood at $60 billion from 124 deals.

LCD subscribers can click here for full story, analysis, and the following charts:

  • Recent deals
  • European arbitrage CLO issuance and institutional loan volume
  • Deal pipeline
  • Global CLO volume

. - Sarah Husband

Follow Sarah on Twitter for the latest CLO market news and insight.


Ervin Pilku joins Cantor to trade CLOs, CDOs, and TruPS

Cantor_Fitzgerald_logoCantor Fitzgerald has appointed Ervin Pilku as a managing director with a focus on trading CLOs, CDOs and TruPS, according to market sources. Based in New York, he started his new role last month.

Pilku was previously head of fixed income trading at White, Weld & Co. Prior to that, he worked at Tejas Securities Group trading CLOs, CDOs and ABS. – Staff reports


CLO roundup: Europe supply passes FY forecast, US pipeline builds

Europe saw the bulk of the action this week, pricing three new CLO transactions, against two for the U.S. market. The ABS East conference, taking place at the start of the week, dampened new-issue activity stateside, leaving the European CLO market to step into the spotlight on two counts: supply and spreads.

LCD subscribers can click here for full story, analysis, and the following charts:

  • Deal pipeline
  • US arbitrage CLO issuance and institutional loan volume
  • Global CLO volume

. - Sarah Husband


Leveraged Loans: CLOs drive investor mart as retail remains in red

Investor market chart 1_550px

In the third quarter, the investor base for new-issue leveraged loans grew even more dependent on CLO funding amid (1) retail outflows from loan funds and (2) ongoing reticence by banks and securities firms to play in loans in which they don’t have an arranger role.

Banks, in fact, were again bit players during the first three quarters of 2014, taking a record-low 9.9% of non-arranger allocations to leveraged loans, according to LCD’s analysis, down from 14.1% in 2013. Banks’ share in the third quarter was in line, at 9.8%.

LCD subscribers, please click here for full story, analysis, and the following charts:

  • Share of institutional volume rate four-B or higher
  • Number of loan investor groups
  • Visible inflows to the loan asset class
  • Primary market for institutional loans
  • Average AAA CLO spread
  • Share of S&P/LSTA Index bid below par and single-B YTM
  • Repricing volume
  • Primary market for institutional loans
  • Relative-value players’ share of allocations and high-octane volume
  • Primary allocations of 2014 institutional loans by investor type
  • Number of managers that issued a 2.0 CLO
  • Average CLO size
  • CLO and Index outstandings
  • CLO outstandings as a share of S&P/LSTA Index
  • CLO outstandings
  • Assets under management 2Q 2014

– Steve Miller

Follow Steve on Twitter for an early look at LCD analysis, plus market commentary.



Leveraged loans: CLO Supply picks up as Europe heads for record month

The new-issue market kicked back into action last week, with six new deals pricing globally. While IMN’s ABS East conference in Miami over the next couple of days should curtail U.S. supply until later in the week, Europe is expecting a trio of pricings any time now, and is poised for a strong September, deal-wise.

Global volume in the year-to-date stands at $101.54 billion, according to LCD.

Of this, $89.86 billion comes from U.S. issuance of 166 deals, with another five CLOs pricing last week totaling just over $3 billion. Issuance in the same period last year stood at $56.74 billion from 117 deals. - Sarah Husband

LCD subscribers can click here for full story, analysis, and the following charts:

  • Deal pipeline
  • US arbitrage CLO issuance and institutional loan volume
  • European arbitrage CLO issuance and institutional loan volume