Rising mortgage interest rates increased the market share of jumbo loans, ARMs and expanded-credit mortgages in the second quarter, while the agency market shrank. The result was a downturn in securitization rates. (Includes data chart.)
A sharp decline in restructuring of existing CLO deals overshadowed a substantial increase in new BSL securitization during the second quarter of 2022. (Includes two data charts.)
CLOs managers are responding to tough market conditions by making changes to their products, for example proposing to remove buckets for discounted assets.
Investors are showing little demand for new issuance of CLOs and trading in the secondary market. CLOs are being sold off and are meeting with few potential buyer options.
The SEC’s proposal on disclosure requirements and other standards for hedge funds, private equity funds and venture capital funds could have negative impacts for CLOs, SFA and others warn.
A sharp decline in refinance and restructuring activity helped drive issuance of U.S. CLO sharply lower in the first quarter. Volume was up, however, in CRE deals. (Includes two data charts.)
The Structured Finance Association is evaluating the most popular corporate ESG frameworks to see how they could be applied in the securitization industry.
When looking at activity by rating services in 2020, the SEC found problems involving ABS and CLOs, among other issues. The regulator as usual didn’t identify the offenders.
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