KopenTech Blog – Page 2 – Market-building trends and news to help you innovate and improve

11/15/2020

When is the Best Day to Hold a CLO BWIC?

The standard BWIC process is inherently inefficient; it requires humans to communicate frequently during a narrow window of time and with limited price transparency. The more human involvement there is in any process, the more potential there is for biases...

Electronic Trading

11/15/2020

AMR in the Secondary Market

Applicable Margin Reset (AMR) is beginning to gain broad acceptance in the CLO market, especially since the coronavirus pandemic has led to widened spreads in the CLO primary pipeline. The feature, which is designed to make the refinancing process quicker...

Online Refinancing (AMR)

11/13/2020

E-bidding Functionality for CLO BWICs

What E-bidding functionality offers: Submit bids with a single click Centralized bid management across all BWICs Real-time bidding synchronized across all users Complete log of historical bidding See E-bidding flow: Step 1:Request for E-Bidding Access– Client requests acceptance for electronic...

Electronic Trading/Main Features

11/02/2020

Introducing Barometers of CLO Secondary Liquidity

Introducing Barometers of CLO Secondary Liquidity Global markets have been turbulent during 2020 and the CLO market was no exception. In fact, the fallout from the coronavirus pandemic has been compared to historic market downturns such as the Great Depression...

Electronic Trading

10/16/2020

CLO Refinancing: Applicable Margin Reset

Collateralized Loan Obligations (CLOs) are arbitrage vehicles. CLO equity has a residual claim to the portfolio’s principal and interest after all liabilities have been paid. A larger difference between what a CLO takes in and what it pays out means...

Online Refinancing (AMR)

10/06/2020

CLO Secondary Market Trends: October 2020 Edition

BWIC Volumes: October is the first month since July to see a decrease in BWIC volumes. US CLO BWIC Trends, 2020: TRACE VolumesTRACE reports all CLO trades involving FINRA members, including those done outside of BWICs. TRACE data reports that...

Monthly CLO Secondary Market Trends

09/25/2020

AMRs: Similar to BWICs?

The AMR auction process is in many ways similar to the secondary BWIC (“bids-wanted-in-competition”) trading process for structured products. Yet, AMR offers additional improvements, mainly around the certainty of execution, which, as a result, should bring in more participation from...

Electronic Trading/Online Refinancing (AMR)

09/05/2020

CLO Secondary Market Trends: September 2020 Edition

BWIC Volumes: September had the third-largest monthly BWIC volume in 2020 with a steady increase from July’s lull. US CLO BWIC Trends, 2020: TRACE VolumesTRACE reports all CLO trades involving FINRA members, including those done outside of BWICs. TRACE data...

Monthly CLO Secondary Market Trends

08/12/2020

CLO Secondary Market Trends: August 2020 Edition

BWIC Volumes: August had the third-largest monthly BWIC volume in 2020, 33% higher than July’s. US CLO BWIC Trends, 2020: TRACE Volumes: TRACE reports all CLO trades involving FINRA members, including those done outside of BWICs. TRACE data confirm August...

Monthly CLO Secondary Market Trends

07/31/2020

CLO Secondary Market Trends: July 2020 Edition

BWIC Volumes: After three months of increased trading activity to begin the COVID era, BWIC volumes dropped to pre-pandemic levels: $2.34/2.87 Bn traded/posted. US CLO BWIC Trends, 2020: TRACE Volumes: TRACE reports show July having the lowest CLO/CDO volumes of...

Monthly CLO Secondary Market Trends