Rising idiosyncratic risk leads to calls for high yield index tranche fix from traders2 months ago
As sources of funding dry up for the weakest borrowers in the credit market, some correlation traders are calling for an overhaul of CDX NA HY index tranches to make trades on wide-end dispersion more effective.
Thomas Cook CDS auction sets initial midpoint at nine cents2 months ago
An auction to settle CDS referencing Thomas Cook Group has derived an initial market midpoint of 9.125 cents, implying protection buyers will receive a pay-out on contracts in the region of 89 cents
Spectre of low loan recoveries fails to spook CLO market3 months ago
CLO managers and equity investors are optimistic despite recent reports which suggest that future US loan recovery rates will be lower than during the financial crisis.
Thomas Cook is a lesson for CLOs on unsecured bonds, says TwentyFour AM4 months ago
The liquidation of UK travel operator Thomas Cook this week has underscored that “unsecured debt has no place in CLOs,” according to a note by Aza Teeuwen, portfolio manager at TwentyFour Asset Management
Galapagos failure-to-pay credit event posed to DC as bond grace period lapses6 months ago
The Credit Derivatives Determinations Committee has accepted a request to rule on whether Galapagos Holding, a former iTraxx Crossover index constituent, has triggered a failure-to-pay credit event
CLO managers process Fusion bankruptcy implications7 months ago
12 CLO managers hold $185.2 million exposure to the debt of the cloud services company, which filed for Chapter 11 bankruptcy
Steinhoff CDS auction in limbo due to lock-up and CVA8 months ago
A date to settle CDS referencing Steinhoff Europe had still to be agreed as Creditflux went to press — more than a month on from when the EMEA Determinations Committee (DC) ruled that the company had triggered a failure-to-pay credit event.
Direct lenders split over best way to manage loan restructuring9 months ago
Direct lenders are divided on how best to set up internally when dealing with loans that require restructuring. Some managers argue that a deal should be restructured via the original deal team
- The prognosis for pharma and healthcare companies is not good, with a rise in bankruptcies in the past two years and Aceto Corporation, Novum and Pernix Sleep already filing this year9 months ago
Direct lender suspends withdrawals amid large loan default, reports Bloomberg11 months ago
A borrower comprising 25% of a direct lender's portfolio has defaulted on a loan - leading to the fund suspending withdrawals and redemptions to investors
Parker Drilling CDS auction deliverables trade in low 50s1 year ago
There will be two deliverable obligations into an auction to settle credit default swaps referencing Parker Drilling, the Americas Credit Derivatives Determinations Committee has decided
US clothing brand default leaves CLOs exposed1 year ago
As many as 100 CLOs are among the holders of debt issued by FullBeauty, which defaulted on 31 October on an interest payment to its $345 million second lien loans
Kicking the tyres: CLOs survive examination as bankruptcies tick higher1 year ago
US CLOs are weathering the turbulence triggered by a couple of bankruptcies in the broadly syndicated loan universe, namely US retailer Sears and American Tire Distributors. Those bankruptcies, filed on 15 and 4 October, respectively, have failed to dent CLO structures
Seven deliverables valid for Sears CDS auction, as seven others split DC panel1 year ago
There will be seven obligations deliverable into an auction on 14 November to settle credit default swaps referencing Sears Roebuck Acceptance Corp, the Americas Credit Derivatives Determinations Committee has decided. But members of the 15-strong DC were split over whether to include another seven potential deliverables that did not make the cut
Lynn Tilton files for voluntary bankruptcy for Zohar CLOs1 year ago
The drawn-out legal battle involving Zohar CLOs has taken a new turn, with the Zohar funds on Monday filing voluntary petitions for relief under Chapter 11 of the US Bankruptcy Code
Strengthen CDS definitions to stop engineered defaults, say lawyers1 year ago
The likelihood of stamping out manipulation in the credit default swaps market – namely the practice of staging credit events – is remote, say market sources
Investors nod through wind up of 1.0 euro CLOs2 years ago
CLOs may have weathered the storm of the financial crisis far better than other structured products, but the tally of CLO defaults is quietly growing
281 CLOs set to be affected as Avaya files for bankruptcy3 years ago
The CLO market was hit by its first high-profile default of 2017 yesterday, after Avaya filed for bankruptcy.
Investors call for default review as CMBS bonds face wipeout3 years ago
Investors have called for an expert review of a credit event in a 2007 synthetic securitisation after the default left all but the triple A notes facing a total loss
US leveraged loan defaults will stay low for some time, says Fitch3 years ago
The US leveraged loan default rate is on track to end the year at 2%, according to a report from Fitch Ratings. The rating agency estimates that next year will be stable with default rates in the region of 2%
Moody's highlights low recoveries in energy credit catastrophe3 years ago
Recovery rates for lenders to oil and gas companies were “catastrophic” in 2015, according to a report published yesterday by Moody’s.
BNP Paribas AM euro CLO makes history by triggering event of default3 years ago
A 2004 vintage CLO managed by BNP Paribas Asset Management has hit an event of default, according to a notice available on CLO-i
Three 2.0 CLOs placed on negative watch by S&P as defaults rise3 years ago
Standard & Poor’s has placed three US CLO 2.0 tranches on negative watch in the last week, citing weakening credit quality and declining spreads in the deals’ underlying portfolios
Energy credits account for 49% of problem loans, reports Fitch3 years ago
Energy companies are still overrepresented in the list of near-term default risks, according to research published yesterday by Fitch Ratings.
Puerto Rico CDS settles with little open interest3 years ago
CDS auction brings settlement of 58 cents on the dollar for defaulted island
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