KopenTech in the Press
KopenTech's 'all-to-all' CLO trading platform goes live
Thanks to GlobalCapital and Tom Lemmon for covering our All-to-All trading platform launch! We're excited to share that in the first week, we've successfully completed $49 million in trades, showcasing the viability and benefits of our anonymous trading protocol. The positive response from buy-side firms and dealers is encouraging, and we're focused on expanding this innovative approach market-wide.
Busy US CLO market sends encouraging signals for start of 2024
In an interview with Victoria Thiele from GlobalCapital, Rob Shrekgast emphasized that the US CLO market is showing strong momentum. November saw the highest dealer interest in CLO tranches in the past year at $825 million. Rob Shrekgast anticipates this momentum to continue into early 2024, citing increased bids for CLO bonds and confidence among buyers and sellers.
Trading Platform KopenTech Launches New CLO Trading Protocol
In a significant move for the financial markets, as reported by Scott Carpenter in Bloomberg, KopenTech has launched an “all-to-all” trading platform for collateralized loan obligation (CLO) securities. This innovative approach is a game-changer, enabling a more inclusive and efficient trading environment where all market participants, including dealers and buy-side firms, can engage in anonymous trading through an electronic platform.
US CLO market healthy despite secondary trading drop
In a recent interview with Victoria Thiele from GlobalCapital, Rob Shrekgast emphasized that despite a weakening loan market and wider mezzanine spreads in October, the US CLO new issuance activity remains robust. CLO new issuance increased to $11.9bn in October, making it the second-busiest month of the year. With BWICs falling to $3.9bn in October, Shrekgast suggests sellers are cautious amid market uncertainty.
Katayama Credit in US market for debut CLO
Rob Shrekgast in his interview with GlobalCapital highlights the evolving dynamics in the CLO market, with tier one managers achieving mid-160bp spreads on triple-A notes, while debut managers, paying at around 205bp-210bp. Despite the tightening spreads seen in the capital stack throughout the year, Shrekgast cautioned that further tightening might be harder to achieve.
Creaky credit sparks ‘high’ dispersion in CLO pricing
Article by Nathan Tipping on Risk.net discusses the resurgence of dispersion in credit markets following 18 months of central bank rate hikes. This trend is particularly noticeable in collateralized loan obligations (CLOs), where pricing has become fragmented, as evident from data provided by KopenTech. The dispersion is attributed to various factors, including differing manager reputations, changing loan market dynamics, and variations in market value of over-collateralization (MVOC) profiles.
US CLO market in good health despite spluttering primary
Great article by Tom Lemmon in GlobalCapital on how the US CLO market is fundamentally in good health, featuring KopenTech's Rob Shrekgast. According to Rob, despite a slow start in new issuances in the US CLO market during the first half of the year, the market remains healthy. Successful BWIC volumes, an indicator of market health, have remained steady around $2 billion each month, suggesting market participants are calm and sellers are comfortable with market conditions.
U.K. Crisis Spills Into U.S. Junk Debt
Matt Wirz from The Wall Street Journal has a great story where he highlights how European investors are selling CLOs to meet margin calls due to the currency and government bond crisis in UK financial markets. The US financial institutions and banks have been buyers of these securities at lower prices. Investors can view the upcoming CLO trading pipeline and dealer inventory on our KTX trading platform. Read the full WSJ story here.