KopenTech in the Press
Rival platforms battle to control electronic trading of CLOs
The need for new ways to trade CLO is here. New electronic platforms are designed to bring CLO trading out of the age of dinosaurs. Kopentech also gives investors the option to trade with each other, cutting out the banks. Separately, the platform can refinance CLOs using the AMR process.
CLO Trading Startup Is Now Allowing Investors to Cut Out Banks
An online platform is now allowing money managers to trade collateralized loan obligations directly with one another, without banks standing in between. KopenTech, a firm that provides CLO refinancing, data analytics, and electronic trading services, has launched direct trading among investors, according to a statement seen by Bloomberg. The platform saw its first trade between two investors last Thursday, Jill Scalisi, chief engagement officer, said in an interview.
Debt Advisors issued $339.18 CLO 2022-1 with innovative online AMR refinancing
Jefferies set the price on Wednesday for the $339.18 million ICG US CLO 2022-1 managed by ICG Debt Investors. The AMR refinancing feature was incorporated across the debt stack, including the fixed-rate tranches.
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.