CLO-Sell-Off-Masks-Technical-Dislocation,-Not-Credit-Deterioration,-Says-CIFC
The Credit and Investment Fund Council (CIFC) says the recent sharp decline in collateralized loan obligation (CLO) prices reflects a technical market dislocation rather than a deterioration in underlying credit quality. The council points to heightened liquidity pressures, valuation‑model distortions, and a thin pool of active investors as the primary drivers of the sell‑off. While CLO equity faces tougher tests in the first quarter, the fundamentals of the loan portfolios remain solid. Misreading the volatility could trigger unnecessary risk aversion across structured credit.
Spring-Surge-Drives-CLO-Equity-BWIC,-but-IRRs-Lag-Distributions
Spring‑time buying revived activity in the collateralized loan obligation (CLO) equity market, pushing the latest Best‑Worth‑Indicating‑Competition (BWIC) to its highest weekly volume in over a year. CLO research analyst Poh‑Heng Tan reported a roughly 30% jump in equity BWIC orders,...
SCI-In-Focus:-EU-Securitisation-Reform-Caught-in-Political-Crossfire
EU securitisation reform has stalled amid intense political infighting, technical drafting errors, and a clash over insurers' role in synthetic risk transfer. The European Systemic Risk Board warns of systemic risk, while proponents argue insurers can provide long‑term capacity absent...
Job-Swaps-Weekly:-SMBC-and-Mount-Street-Hires,-While-Departures-Hit-UBS-and-CQS
The securitisation market saw several high‑profile hires this week, with SMBC appointing Adrian Luput as head of lender finance for EMEA and Mount Street Group bringing in Neil Odom‑Haslett to drive commercial‑real‑estate business development. Benefit Street Partners created a global...
Legacy-Barriers-and-Securitisation-Reforms
Linklaters’ George Gooderham and Andrew Vickery discuss how entrenched legal and regulatory frameworks have slowed the growth of asset‑backed finance, especially in specialty and structured private credit. Recent securitisation reforms aim to modernise documentation, simplify special‑purpose vehicle (SPV) structures, and...
ABF-Deal-Digest:-JetBlue-Secures-US$500m-Facility
JetBlue Airways closed a $500 million asset‑backed financing facility, one of the largest private‑credit deals in the airline sector this year. The facility is structured through a securitisation vehicle backed by the carrier’s aircraft fleet and lease assets. Proceeds will support...
SCI-In-Focus:-Risk-Based-Capital-Modernisation-a-Catalyst-for-Insurance-CLO-Allocations
Regulators are reviewing new risk‑based capital (RBC) models that would adjust C‑1 factors for collateralised loan obligation (CLO) tranches. The proposals, developed by the NAIC and the American Academy of Actuaries, differentiate senior AAA‑A debt from lower‑rated BBB‑ and below...
Two-Mortgage-SRTs-Test-Market-Resilience
Two €500 million mortgage Structured Risk Transfer (SRT) deals were launched in April 2026, pricing at 3.2% and 3.5% yields. The transactions attracted a mix of European banks, insurers and U.S. pension funds, and were structured with a 97% senior‑tranche coverage...
US-CLO-Momentum-Slows-After-Strong-Start-to-2026
The US CLO market kicked off 2026 with strong primary issuance, pricing roughly $73 bn across more than 160 tranches in January‑February. Early March data, however, show a slowdown relative to the record‑setting pace of 2025, with fewer deals and longer...
CLO-Spreads-Stay-Wide-as-Uncertainty-Around-Iran-War-Persists
Two months after the Iran war began, CLO primary market spreads remain wide, especially for lower‑rated tranches. US issuance has fallen 40% and Europe 60% since the conflict, with the European market nearly halted. Reset activity has collapsed, prompting a...
Industry-Groups-Warn-EU-Securitisation-Reforms-Could-Backfire
The European Commission has unveiled a new securitisation framework aimed at boosting transparency, risk‑retention and ESG labeling across the continent. Industry bodies such as the European Securitisation Forum and major banking associations argue the rules will raise compliance costs and...
Asian-Structured-Credit-Demand-Grows,-but-Fragmentation-Caps-Market-Depth
Asian structured‑credit demand accelerated in early 2026, with issuance and investor allocations climbing sharply across the region. Spread pick‑ups reflect tighter pricing as investors chase higher yields, while the market’s fragmented regulatory landscape limits the depth of securitisation pools. Limited...
SCI-In-Focus:-Cash-SRTs-Move-Further-Into-the-Mainstream
European auto lenders are accelerating the use of cash structured repackaged transactions (SRTs) to secure funding while achieving regulatory capital relief. In the first quarter of 2026, cash SRT issuance in the auto sector grew 45% year‑over‑year, reaching €3.2 billion (≈ $3.5 billion)....
SCI-In-Focus:-Brussels-Debates-Securitisation-Reform-as-Insurer-Role-Sharpens
EU policymakers are advancing a reform package to revive the European securitisation market, aiming to align the framework with the Savings & Investment Union agenda. The proposal expands insurers’ participation as investors and credit protectors but retains conservative safeguards and...
Chicago-Atlantic-Enters-Emerging-Markets-with-New-ABF-Strategy
Chicago Atlantic announced a new asset‑backed finance (ABF) strategy aimed at emerging markets, specifically targeting mid‑size borrowers in Latin America and Asia. The platform will employ securitisation technology to fund esoteric assets and deliver customized financing solutions. By entering these...