After the 2008 financial crisis, credit funds paid pennies on the dollar for fixed-income securities trading at distressed levels – then made a fortune as the market recovered. Now, to repeat the trick …
Government Buys AAA CLO New Issues, Pipeline Grows
Last Thursday’s action by the Federal Reserve included the reigniting of a collateralized loan obligation (CLO) buyback program, but with conditions …
More Funds Shorting CMBS Credit Stress as Long Investors Return
Investors that heeded the Canyon Partners Joshua Friedman’s suggestion to short commercial real estate (CRE) and hold cash last March on Bloomberg TV feel like they won the lottery today. The world’s …
$50bn Hedge Fund Ochs-Ziff Bets Big on Aircraft Lease
Ten months ago, Ochs-Ziff partnered with GE Capital Aviation Services, a dominant player in the global aircraft leasing business, in a $700m ABS freeing up cash by securitising leases on 24 planes to 16 airlines. Now, the New-York based hedge fund and asset manager has closed a repeat deal …
North American Pension Funds Suffer Swap Losses on Collateralized Debt
North Americanan pension funds that invested in credit by selling protection on unfunded synthetic CDO (CSO) tranches have suffered mark-to-market losses of more than 90%, say well placed market …
Debate Brews on CDO Valuations
CDO professionals are using imperfect valuation models. While they concede it is almost inconceivable that a CDO will be liquidated, net asset value still remains an important test for not overpaying on a …