KopenTech in the Press
AMR assists CLO managers to cure asset-liabilities mismatch
In an interview with Bloomberg, Chief Engagement Officer Jill Scalisi notes that because the auction is a secondary-market transaction, it is exempt from adhering to regulators’ guidance to switch CLO liabilities to SOFR. This allows refinancing to stay with Libor until CLO collateral largely switches to SOFR avoiding costly mismatch for CLO equity.
HalseyPoint CLO II's LIBOR-Based CLO Liabilities Renewed via AMR
AMRs are categorized as secondary trades, the CLO securities are not subject to regulatory guidance that recommends a replacement benchmark such as SOFR.
HalseyPoint Keeps LIBOR-Linked CLO Notes after AMR Digital Refinancing
HalseyPoint Asset Management has cut the funding costs of its HalseyPoint CLO II by 80 bps, managing to keep the notes linked to Libor by selecting a digital AMR Dutch auction to reprice the notes. KopenTech received over $640 million of bids making the auction 2.1x oversubscribed.
KopenTech launched CLO Issuance Monitor
KopenTech is aggregating information on collateralized loan obligations new issues and repricings. CLO primary data is organized in 5 standardized tabs and if offered to investors and CLO syndicate desks but information on competitor transactions is limited to deal summaries.
MUFG prices $383M reset of AMR-eligible Mountain View CLO XIV
Seix Investment Advisors has completed a reset of its Mountain View CLO XIV via MUFG, a deal that was previously refinanced via Applicable Margin Reset auction in January of 2021. Originally a short transaction, with 1 year of non-call and 3 years of reinvestment, this deal is now extended into an additional 5-year reinvestment period with 2 years of non-call.
Jefferies prices $409M Zais 2021-17 CLO with AMR across the stack
ZAIS Group issued its first CLO since September 2020, ZAIS 2021-17, priced by Jefferies and incorporated an auction-based online refinancing feature, called Applicable Margin Reset (AMR). It is the 16th CLO to implement AMR refinancing and brings the total AMR AUM to over $6.8 Bn.
TCW resets their twice AMR-refinanced 2019 CLO
TCW closed a reset of their vintage $406MM TCW CLO 2019-1 AMR CLO, extending the reinvestment period to August 2026 and its non-call to November 2023. The CLO refinanced two times via AMR, first in January 2020 and the second time in January 2021.