KopenTech Blog – Page 5 – Market-building trends and news to help you innovate and improve

01/18/2021

AMR Refinancing Results: Mountain View CLO XIV

On January 14, 2021, KopenTech held an online refinancing AMR auction for Seix’s Mountain View CLO XIV. Classes A1 through D totaling $348 million all cleared below the cap margin. The maximum acceptable spread level. Over $1.3 billion in bids...

Online Refinancing (AMR)

01/12/2021

CLO Secondary Market Trends: December 2020 Edition

BWIC Volumes: December BWICs saw a slight rebound above the 2020 average traded volume, with 3.15 B traded. US CLO BWIC Trends, 2020: TRACE VolumesTRACE reports all CLO trades involving FINRA members, including those done outside of BWICs. December was...

CLO Market Trends

12/24/2020

AMR: First Auction Results

KopenTech conducted the first Applicable Margin Reset (AMR) refinancing auction on January 30, 2020 for TCW CLO 2019-1. The AMR procedure, a low-cost alternative to traditional refinancing through an arranging bank, consists of a secondary auction process in which broker-dealers...

Online Refinancing (AMR)

12/10/2020

CLO Secondary Market Trends: November 2020 Edition

BWIC Volumes: November was the 3rd slowest month of 2020 for BWIC trading as focus has shifted to primary. US CLO BWIC Trends, 2020: TRACE VolumesTRACE reports all CLO trades involving FINRA members, including those done outside of BWICs. TRACE...

CLO Market Trends

12/01/2020

AMR Investor Guide. Auction-based, multi-dealer electronic CLO refinancing: Applicable Margin Reset (AMR).

A More Efficient Process for Refinancing CLOs Updated December 2020 Applicable Margin Reset (AMR) was developed in 2015 by alternative asset manager Sancus Capital Management to find a solution to risk retention and to streamline CLO refinancing. AMR differs from...

Online Refinancing (AMR)

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)

11/02/2020

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...

CLO Market Trends