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

11/15/2022

CLO Market Trends: October 2022 Edition

Volatility continues to drive higher trading volumes, new issue is close to 2022 lows. Guest Speaker: Dagmara Michalczuk, Tetragon Credit Partners BWIC Volumes A shaky US economy continues to drive price volatility and as a result, trading volumes continue to...

Electronic Trading/Monthly Activity Reports

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: Secondary Market Liquidity

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

NEW: 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/Products Releases

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

November: CLO Secondary Market Trends

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...

Monthly Activity Reports

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)

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

October: CLO Secondary Market Trends

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 Activity Reports

09/30/2020

Seix Mountain View XIV Auction DNTs Amid Wider Spreads

The September 29, 2020 AMR auction for Seix Mountain View CLO XIV concluded without any of the subject tranches receiving a margin reset. Although multiple bids were submitted significantly below the margin cap, demand was insufficient to fill the full...

Electronic Trading/Online Refinancing (AMR)