Mutual Fund Regulations Vex Market Pros

January 29, 2021

Similar concerns surround the mezzanine pieces of agency risk-transfer deals. And in each case, the fund operator would have to be prepared to justify the marks. "The biggest impact will be on the trickier, hard-to-value bonds, which have to document why they value it at a certain price," said Adam Murphy, president of data company Empirasign.

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Asset-Backed Alert

Eager Investors Push CMBS Spreads Together

January 29, 2021

Empirasign has shown very light trading in CRE CLOs since the onset of the pandemic, but a staffer there confirmed that some recent trades priced near and even slightly over par, including subordinate slices of a 2018 deal from Granite Point Mortgage and a 2017 deal from Arbor Realty.

Commercial Mortgage Alert

Cashflows Resume for CLO Equity

November 20, 2020

This period is following the same pattern, with the $219 million of equity that has changed hands on the secondary market so far this month on track to exceed the October total of $293.3 million, according to Empirasign.

Asset-Backed Alert

CLO MONTHLY INSIGHT: September’s rally peters out as uncertainties grow about pandemic flare-ups and flow of BWICs.

October 01, 2020

€1.2bn of European CLOs were offered on BWICs during September, according to Empirasign's data.


CLO Secondary: $2B CLO BWICs past 5-days, $211M AAA list cover 98-100

August 21, 2020

Asset managers sold multiple $80 million to $211 million AAA BWICs Monday to Thursday, according to Empirasign.

LFI Insights

Empirasign Updates Trading Tool

May 08, 2020

Empirasign, which supplies trading data on commercial MBS and other structured products, has added a new feature to help traders navigate dislocated markets. The enhancements to Empirasign's My Portfolio offering are designed to make it easier for traders to identify multiple tranches of deals and set up alerts whenever those bonds are in the market. Adam Murphy, the New York firm's founder and president, said it had long considered adding such capabilities, but the financial-market turmoil brought on by the pandemic made it a no-brainer. Empirasign began notifying clients of the new feature last week. "It is now more important than ever to look at the entire capital structure, even if you are only a subs buyer or a triple-A buyer," Murphy said. "Obviously, all the cashflows are linked." ...According to Empirasign, the number of formal bid solicitations swelled from a weekly average of 95 in January and February, with a combined principal balance of $2.7 billion, to 159 offerings totaling $6.6 billion in March. The weekly average for April was 137 offerings with a combined face value of $5.2 billion.

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Commercial Mortgage Alert

Empirasign Adds to Data Flow

May 08, 2020

Empirasign has added a feature to its deal-tracking technology that instantly notifies users when any tranche of a selected securitization appears on a bid list. The tool previously offered access to secondary-market activity only on a tranche-by-tranche basis. The update also includes a summary of all recent market activity for each deal on a client's "watch list." The new feature launched on May 4, with New York-based Empirasign characterizing it as a response to increased demand for timely information across all deal classes amid the coronavirus crisis. "More than any time in recent memory, people should be watching the entire capital stack," president Adam Murphy said. The notifications are delivered via Bloomberg message or email. The volume of asset- and mortgage-backed bonds available on the secondary market ballooned in March, with $12.4 billion out for bid the week of March 16, according to Empirasign. Many of the bonds didn’t trade, however, and offering volume tapered off to $2.3 billion the week of April 27.

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Asset-Backed Alert

CLO bottom rung cheapens due to downgrades

May 05, 2020

Last week secondary CLO 2.0 flows dropped to $791 million (30% did not trade), from $1.06 billion the prior week, according to BWIC data provider Empirasign. CLO AAA to A classes tightened 10 basis points (bps).

Alternatives Watch

Property bonds trading on Wall Street point to grim outlook for embattled hotel chains

April 23, 2020

Traders circulated a list of five mezzanine mortgage bonds tied mostly to national, extended-stay hotel chains at price talk of about 63 cents to 72 cents on the dollar, according to bond data and tracking platform Empirasign. "Price talk" only reflects what Wall Street dealers think bonds could fetch on the open market, not actual trading levels, but they are widely used as a gauge of market sentiment. Four parcels, with a combined $23.5 million face value, ended up trading hands Thursday, leaving only an $8.4 million slug of BB-rated bonds out in the cold, according to Empirasign.


Why the commercial mortgage bond market looks dire right now

March 25, 2020

"Last week, most of the lists weren’t even getting bids," said Adam Murphy, founder of Empirasign, a platform that tracks bond-trading activity. He also said that some sellers this week instead are turning to "all-or-nothing" lists. "The reason for that can be twofold," he said. "Either you get a margin call and need to liquidate multiple positions simultaneously. Or it's people trying to find a more expedient method of transacting."


Securitized Credit Bid-List Volume Hits Highest Level Ever

March 18, 2020

Securitized credit markets have seen the highest volume ever of so-called Bids Wanted in Competition, or BWICs, for sale in the secondary market over the last two weeks, according to data from Empirasign Strategies. "We're seeing that the volumes are so high that a sizable portion of these BWICs are not even receiving bids," said Adam Murphy, founder and president of Empirasign, a firm that tracks capital markets trading. "There just seems to be a universal race for cash." This includes BWICs across ABS, CLOs, CMBS, and RMBS, Murphy told Bloomberg News. Last week saw 1,018 structured-finance BWICs up for sale, the highest number ever, according to Empirasign. Each BWIC is a bid list containing many different bonds, often from the same asset class. This week has already seen 711 BWICs attempting to trade in the secondary, "and it may be on pace to be the new No. 1," Murphy said.

Bloomberg News

Meltdown Spreads to Structured Finance

March 13, 2020

According to Empirasign, bid lists containing $4.5 billion of asset- and mortgage-backed bonds hit the market during the March 9-12 span, up from $455 million the previous week.

Asset-Backed Alert

CLOs Jump on Leveraged-Loan Rout

March 13, 2020

From March 9-11, $2.1 billion of bid lists went out for offers, up from 1.5 billion for the entire preceding week and $728.5 million the week before that, according to Empirasign.

Asset-Backed Alert

CLO Equity Trading Picks Up

December 20, 2019

Bids on nearly $77 million of equity from five CLOs flowed in on Dec. 18 and 19, according to Empirasign.

Asset-Backed Alert

Investors Return to Secondary Market

December 20, 2019

According to Empirasign, an average of 95 bid lists totaling $1.3 billion circulated in each of the last three full weeks (excluding Thanksgiving week), with nearly 95% of those bonds changing hands.

Commercial Mortgage Alert

Global CLO Roundup: Sizing up risks going into year-end

October 21, 2019

A handful of CLO equity tranches were offered in the secondary last week, according to data from Empirasign Strategies, including a control equity piece on a 2015 vintage CLO.

LCD News

CLO Secondary Trading On the Rise

October 18, 2019

CLO paper appeared on formal bid lists 131 times in the first half of the year, up from 123 times in the second half of last year and just 86 times in the 2018's first half, according to data provider Empirasign.

Commercial Mortgage Alert

CLO Holders Shrug Off RAIT Filing

September 13, 2019

According to data collected by Empirasign, trading in the CLOs has been light since the REIT started having problems in late 2017.

Commercial Mortgage Alert

Warning signs are flashing in funds that buy leveraged loans

August 27, 2019

Looking to catch a bid: Listings for CLOs with low ratings spike in 2019


Empirasign adds real time ABS 'canary'

August 16, 2019

Securitisation data provider Empirasign has added a new functionality which will use regulatory filings to give ABS traders a 'canary' for new issuance and repurchase events.

Alt Credit

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