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Securitization

Top Securitization Stories

  • SoFi to bring third securitization and enter mortgage market

    Peer-to-peer lender SoFi is planning to bring a $300m-plus securitization this November, as it seeks to broaden its appeal to institutional investors. The move comes as the firm is expanding into the mortgage and consumer loan markets in addition to its original student loan product.

    • 02 Sep 2014
  • Virgin brings back Gosforth as FLS effect melts away

    Virgin Money has mandated banks for its first new RMBS sale since 2012, in a further sign that a weakened Funding for Lending Scheme and a tightening of UK RMBS spreads is making the market tempting once more to a bigger pool of issuers.

    • 02 Sep 2014
  • Santander Consumer steps up size as it builds Bilkreditt brand

    Santander Consumer Bank is set to make good on its ambition to make its Norwegian arm a more established presence in the European auto ABS market this week after launching its first deal of the year. Bankers said the initial price thoughts on the deal indicated a tightening trend brought about by an increased number of investors coming into the name.

    • 02 Sep 2014
  • Bankers welcome VW auto deal with price debate

    Volkswagen Financial Services may take distributed UK auto ABS supply for 2014 above last year’s total by the middle of this week having put out initial price thoughts for Driver UK Two, ahead of a number of deal announcements expected for the European ABS market in the next few days.

    • 01 Sep 2014

Latest News

  • Ocwen downgrade may spur search for better servicers

    Ocwen Loan Servicing saw its subprime and special servicer quality (SQ) assessments downgraded by Moody’s Investors Service on Thursday. The move puts more pressure on banks to choose the right buyer when they offload loan servicing rights, as concerns persist around the capacity of fast-growing non-bank servicing firms and how it could weigh on the performance of mortgage collateral.

    • 29 Aug 2014
  • Italian SME CLOs 'protected against economy'

    The relatively short senior tranches of Italian SME CLO transactions are protecting them from the weak performance of the country’s SMEs, according to Fitch, thanks to strong credit enhancement levels and unique structural features.

    • 02 Sep 2014
  • Bank bid pushes CBA to huge RMBS

    Commonwealth Bank of Australia has left a A$4bn (€2.85bn) hole in the pockets of RMBS investors after quadrupling the size of its Medallion Trust Series 2014-2 transaction.

    • 01 Sep 2014
  • Lending Club IPO revives peer-to-peer securitization debate

    Lending Club announced a $500m initial public offering on Wednesday, sparking renewed speculation over how the company’s peer-to-peer lending assets could be acquired by banks and securitized.

    • 28 Aug 2014
  • Mercedes-Benz brings scarcity value to revved up auto mart

    Mercedes-Benz Bank has mandated banks for its first euro denominated auto ABS transaction of the year, with securitization bankers expecting the issuer’s scarcity value relative to other German credits to help drive it towards the tight end of the market. The deal is expected to lead precede a raft of European auto ABS to be announced in the coming days.

    • 28 Aug 2014
  • Bankers brace for ABS buying as BlackRock joins ECB team

    The European Central Bank took a big step closer to launching outright European securitization purchases this week as it hired BlackRock to help design the long-awaited plan. But ABS bankers are warning it will take time for a depleted investor pool to grow sufficiently to support president Mario Draghi’s ultimate goal of delivering more funding to the continent’s smaller companies.

    • 28 Aug 2014
  • CLO issuance continues apace as risk retention nears

    New CLOs continued to hit the US market this week even as issuance of other securitized products slumbered — and that will only continue next week after Labor Day, as regulators turn their attention to risk retention rules after passing Reg AB II on Wednesday.

    • 28 Aug 2014
  • FCA says just 1.2% of RBS mortgage advice sound

    The Financial Conduct Authority fined Royal Bank of Scotland just under £15m this week for “serious failings” in its advised mortgage sales business, saying that only two of the 164 sales reviewed were considered to meet the regulator’s standard.

    • 28 Aug 2014
  • CBA heads for increase as MBS orders top A$2.5bn

    Commonwealth Bank of Australia may print more than the A$1bn original size indicated for its Medallion Trust Series 2014-2 RMBS transaction after having the deal covered more than twice over by Wednesday morning London time.

    • 27 Aug 2014
  • Trio of countries drags down European consumer ABS ratios

    Deteriorating performance of Italian transactions was the main reason for a recent jump in delinquency rates on consumer loan asset-backed securities in Europe, a Moody’s report revealed on Wednesday. France and Spain are also contributing to the worsening figures.

    • 27 Aug 2014
  • Ally retains two classes of non-prime auto ABS

    Ally Financial priced its $750m non-prime auto ABS on Tuesday afternoon, with all tranches oversubscribed save two subordinated classes, which were retained.

    • 26 Aug 2014
  • UK mortgages down as lenders eye RMBS

    Restrictions on UK mortgage lending introduced in April are having a cooling effect on the housing market, according to figures from the British Banking Association. But with mortgage approvals still up 12% year-on-year, UK lenders — including a potential debut issuer — will have plenty of assets to hand for an anticipated return to RMBS next month.

    • 26 Aug 2014
  • CBA to set latest benchmark for Aussie RMBS

    Commonwealth Bank of Australia has mandated banks for its second Medallion Trust RMBS of the year, setting price guidance for the senior notes 10bp inside the corresponding level achieved on its first deal in February, as RMBS funding continues to cheapen for Australian banks.

    • 26 Aug 2014
  • Venture debt backed ABS face Moody’s downgrades

    Asset backed securities issued by firms that lend to venture capital backed tech start-ups could be downgraded by up to two notches if Moody’s changes its ratings approach to include its default correlation framework.

    • 26 Aug 2014
  • Ally set to follow AmeriCredit with wider pricing

    Guidance on Ally Financial’s latest non-prime auto loan securitization is up to 25bp wider than where its last deal from the same shelf priced. The deal comes after AmeriCredit paid up last week for its latest subprime auto ABS, amid increased regulatory scrutiny of the auto lending sector.

    • 25 Aug 2014
  • Deutsche and Monroe break ground with 50% originator CLO

    Deutsche Bank and middle-market lender Monroe Capital have priced one of the first US collateralised loan obligations to use a 50% originator structure in order to comply with European risk retention rules, enabling a large European institutional investor to buy a big chunk of the senior tranche.

    • 22 Aug 2014
  • Risk retention on horizon after Reg AB II vote

    The Securities and Exchange Commission is holding a meeting this Wednesday to vote on amendements to Regulation AB II, which could force issuers of securitized debt to disclose more loan-level data about the collateral backing their deals. Once done with Reg AB II, regulators are likely to turn their attention to risk retention rules.

    • 25 Aug 2014
  • Big September for Europe ABS as VW hits UK

    Volkswagen Financial Services is set to print just its second UK auto ABS transaction in September, and European ABS bankers predict the deal could have plenty of competing supply next month as issuers try to take advantage of a build-up of cash on investors’ balance sheets.

    • 21 Aug 2014
  • Correction time for subprime autos as AmeriCredit squeezes through

    US auto lender AmeriCredit paid up for its latest subprime loan securitization this week, after a period of widening in the sector sparked by increased regulatory scrutiny. While the deal did get away successfully, market participants were left wondering why it was brought to market in such poor conditions.

    • 20 Aug 2014
  • Investors charge small premium for Delta Lloyd’s swap cost escape

    Delta Lloyd paid a small premium to investors for the lack of a standard interest rate swap in its latest RMBS transaction, according to arranger ABN Amro, which has been fielding calls from a number of issuers keen to explore swap alternatives with costs becoming an increasing irritation for RMBS issuers.

    • 20 Aug 2014
  • UK wage stagnation threatens RMBS performance

    Mark Carney, the Bank of England's governor, and his fellow Monetary Policy Committee members are not the only ones who should be worried about meagre wage growth in the UK, according to Standard & Poor’s, which has warned stagnant wages could translate into poorer RMBS performance in the next few quarters.

    • 22 Aug 2014
  • GMAC’s crisis-era Dutch RMBS hit by downgrades

    Fitch has downgraded a number of RMBS tranches from GMAC RFC Nederland’s E-MAC NL series originated in the run up to the financial crisis, saying the pipeline of potential defaults mean losses are set to accelerate further.

    • 21 Aug 2014
  • Delta Lloyd goes swapless for return to Dutch RMBS

    ABS bankers confessed themselves disappointed on Tuesday when they learned Delta Lloyd would not be publicly syndicating its first RMBS since 2012, but they perked up when they saw the Dutch insurer had decided to forego an interest rate swap and instead introduce an innovative cap.

    • 19 Aug 2014
  • Well covered AYR Issuer another victory for struggling CMBS product

    Avenue Capital’s AYR Issuer student housing CMBS priced on Thursday was another sign that there is enough appetite for the product to make it viable for a wide range of assets. But bankers are frustrated with the lack of translation from rumour into fact in the European public market.

    • 22 Aug 2014
  • BOQ to visit Europe for next REDS ABS

    Bank of Queensland has broken a recent silence in Australian ABS by mandating banks for its first REDS EHP programme transaction of the year, and will be visiting European investors just as supply in the region is expected to ramp up.

    • 20 Aug 2014
  • GM Financial subprime deal ‘struggling’ amid market malaise

    A new $1bn subprime auto ABS from GM Financial’s AmeriCredit unit was said to be struggling on Tuesday afternoon, with market participants saying it was strange to see the deal hit the market barely a week after GM Financial revealed it had been subpoenaed by the US Justice Department.

    • 19 Aug 2014
  • AmeriCredit brings new subprime deal after secondary wobble

    GM Financial’s subprime auto lending unit, AmeriCredit, is in the market with a new subprime auto loan securitization, just a week after its legacy paper traded at a discount following the Justice Department’s increasing focus on the sector.

    • 18 Aug 2014
  • BMW drops return to South African auto ABS

    BMW Finance has abandoned its return to the South African auto loan securitization shelf it set up with Standard Bank in 2011, blaming volatility in the wake of the rescue of African Bank earlier this month.

    • 18 Aug 2014
  • ECB influence revealed as Solvency II tweaks mean concessions for ABS

    ABS experts have suggested to GlobalCapital that new revisions to ABS capital charges for insurers are a welcome demonstration of European Central Bank influence over regulators. But they insisted the changes will have little impact on the market because they focus on lower-rated assets in a market dominated by triple-A paper.

    • 14 Aug 2014
  • South Carolina sells student loan ABS

    South Carolina Student Loan Corporation has sold a $501m student loan asset-backed security, according to rating agencies.

    • 13 Aug 2014
  • Italian recession hits pharma ABS

    Italy’s moribund economy, which officially slipped back into recession this week, is taking a heavy toll on the country’s pharmacists with 25 of the 146 borrowers in the Pharma Finance 3 SME ABS having now defaulted.

    • 13 Aug 2014
  • Bayview preps latest NPL RMBS

    Bayview Financial and Bank of America Merrill Lynch are planning a new $93.5m non-performing loan securitization, which could be priced this week.

    • 12 Aug 2014
  • Fitch to cap 'new and untested' Chinese autos at AA

    Fitch has said it will cap the international rating of Chinese auto ABS transactions at AA because of the market’s immaturity, but it is expecting a rapid expansion in the next few years as financing products penetrate further into the world’s biggest car market.

    • 14 Aug 2014
  • Shrunken Toro CLO highlights investor risk fears

    Chenavari Investment Managers’ downsized European CLO 2.0 debut was the latest in a clutch of ABS transactions that have had a hard time placing riskier paper in recent weeks, as a broad sell-off across markets has hit the primary market for securitizations in Europe.

    • 12 Aug 2014
  • Crédit Agricole targets structured ABCP from Europe shelf

    Crédit Agricole has adapted the documentation of its European asset backed commercial paper (ABCP) programme to enable it to issue floating rate structured notes, in what Moody’s said is the first such move by a bank sponsored conduit outside the US.

    • 12 Aug 2014
  • Guidance ranges set for Honda and VW

    Syndicates have issued price guidance on new deals this week for Honda Motor Company and Volkswagen Financial Services as the August pipeline continues to slowly churn out deals.

    • 12 Aug 2014
  • Subprime start-ups at risk if auto investigation widens

    Smaller subprime auto lenders in the US could face increased credit tiering in the asset backed securities market if investigations into GM Financial and Santander Consumer USA’s lending standards continue to disquiet investors, said analysts on Monday.

    • 11 Aug 2014
  • AmeriCredit trades at a discount following Justice subpoena

    Asset-backed paper from GM Financial’s subprime auto unit AmeriCredit traded at a discount on Monday in response to the Justice Department's focus on the sector.

    • 11 Aug 2014
  • CLO fund eyes role as euro originator as deal flow improves

    Fair Oaks Income Fund, the first CLO fund to float on the London Stock Exchange since the financial crisis, has said developments in the European market have opened the door to it becoming an originator.

    • 11 Aug 2014
  • Billion dollar deals pick up with Honda, VW

    Honda Motor Company and Volkswagen Financial Services are preparing to sell auto securitizations this week of over $1bn, following a brief slowdown in benchmark-sized transactions.

    • 11 Aug 2014
  • F&P prices rare NZ card securitization

    Fisher & Paykel Finance has priced NZ$283.25m of credit card ABS, the first time credit card receivables have been used as collateral for a transaction in Australia or New Zealand for a number of years.

    • 11 Aug 2014
  • Pub restructuring hits latest hiccup

    The launch of a crucial restructuring of Punch Taverns securitizations was delayed again on Monday after the pub group’s management said it needed more time to work with certain stakeholders.

    • 11 Aug 2014
  • Moody’s supports CFF’s MBS transfer

    Moody’s has backed a transfer of relatively risky assets from Crédit Foncier de France (CFF) to its parent BPCE as credit positive.

    • 11 Aug 2014
  • Peers slam “aggressive” Westfield CMBS as leads blame investor regs fear

    Crédit Agricole and Deutsche Bank postponed Westfield's £750m CMBS this week, claiming some investors were concerned with a lack of risk retention in the deal’s structure. But market participants scoffed at the suggestion and said the pricing was aggressive and the timing poor, suggesting the leads were simply scared of not getting the deal away.

    • 07 Aug 2014
  • Hot air fear intensifies as ECB seeks ABS consultant

    More market participants are starting to question the European Central Bank’s ability to successfully revive the European asset-backed securities market after another Mario Draghi press conference went by without further detail on Thursday, except for the president saying a consultant would be hired to advise on its promised ABS purchase programme.

    • 07 Aug 2014

People News

  • Mayer Brown hires LatAm structured expert in DC

    Mayer Brown is welcoming back an expert in Latin American project finance, structured finance and acquisition financing to its Washington, DC office.

    • 02 Sep 2014
  • Up-and-coming CLO shop adds analyst

    A new North Carolina-based CLO manager is continuing to build up its small team, adding another analyst with the eventual aim of run high-diversity portfolios.

    • 27 Aug 2014
  • One in, one out at CIFC board

    CIFC Asset Management, one of the most active CLO managers in the US, has appointed a former Ares Management senior partner to its board of directors. Another CIFC board member has resigned.

    • 26 Aug 2014
  • Moelis-backed CLO manager hires analyst from CIFC

    A CLO manager set up earlier this year by Moelis Asset Management has hired a fund analyst from CIFC Asset Management to join its growing team.

    • 18 Aug 2014
  • Lloyds goes for securitization growth as RBS’s structured exodus accelerates

    Lloyds Banking Group is continuing its push into the US credit and asset-backed securities markets but is taking a very different approach to that of Royal Bank of Scotland, whose Connecticut office had several more structured credit departures this week amid its retrenchment in the country.

    • 13 Aug 2014
  • Another CLO expert leaves RBS

    A well-known face on CLO conference panels is the latest departure from Royal Bank of Scotland’s US office in Stamford, Connecticut, as the bank sheds its staff in that market.

    • 14 Aug 2014
  • RBS continues cuts into US mortgage team

    At least two more mortgage experts have left Royal Bank of Scotland in Connecticut as the bank shrinks its US footprint across multiple businesses.

    • 13 Aug 2014
  • CLO experts leave RBS for CIFC

    CIFC Asset Management has picked up two CLO bankers from Royal Bank of Scotland's US headquarters in Stamford, Connecticut, as the UK government-owned bank retrenches from the market.

    • 13 Aug 2014
  • Ignis veteran leaves for TwentyFour AM

    Ignis Asset Management’s former head of credit is leaving the firm to join Twenty Four Asset Management, following Ignis’s takeover by Standard Life last month.

    • 11 Aug 2014
  • Credit Suisse veteran to lead new hires at Element

    Element Financial Corporation has added six US structured products experts to its transportation finance team in Connecticut, including a managing director from Credit Suisse.

    • 08 Aug 2014
  • FGB adds two to structured finance team

    First Gulf Bank has added two people to its structured finance team. Anand Bangur and Mehdi Raza have joined the group’s debt markets and syndications team under former Standard Chartered banker Steve Perry, who was hired by FGB in September 2013.

    • 07 Aug 2014
  • Cantor bids to build in mortgages and CLOs

    Cantor Fitzgerald is looking to acquire residential mortgage origination firms as it moves to “aggressively” expand its capabilities in that market, its CEO, Shawn Matthews, told GlobalCapital. The firm is also looking to move into the CLO market.

    • 05 Aug 2014
  • Prytania appoints Henderson FI head as next CEO

    Henderson Global Investors will lose its head of fixed income next week to London-based asset manager The Prytania Group, which is replacing retiring chief executive Joe Cook.

    • 23 Jul 2014
  • CRE bankers to join loan servicer

    Commercial real estate loan servicing firm Hatfield Philips has plundered two commercial real estate professionals from banks to head up its newly launched debt advisory team and its marketing team.

    • 22 Jul 2014
  • Fledgling CLO shop looking to expand

    A young North Carolina CLO manager is looking to expand its small team with three new hires in the next couple of months, according to a person at the firm.

    • 18 Jul 2014
  • CIFC loses one but middle-market project continues

    CIFC is forging ahead with its new middle-market CLO platform, despite losing a managing director to a specialist middle-market lender.

    • 15 Jul 2014
  • RBS exodus continues as Cantor nabs two

    Cantor Fitzgerald has hired two bankers from Royal Bank of Scotland’s US office in Stamford, Connecticut, as the UK-based lender implements deep cuts to its North American asset-backed securities business.

    • 11 Jul 2014
  • Dismissed RBS trader finds home at Nomura

    Nomura has hired an ex-Royal Bank of Scotland CDO trader to work on its London CLO trading desk, a year after he lost a lawsuit contending that he was unfairly fired from RBS.

    • 10 Jul 2014
  • AXA brings SF team founder back as head

    AXA Investment Managers has made the very definition of an experienced hire for its structured finance team, bringing back one of its founders as head of the business.

    • 10 Jul 2014
  • Stehli builds Mizuho CLO team with new hire

    Jim Stehli, the veteran of UBS’s CDO losses who joined Mizuho earlier this year to build a CLO origination team, has hired a CLO structurer from Cantor Fitzgerald.

    • 08 Jul 2014
  • Apollo hires two for structured credit investment

    Apollo Global Management has made two new hires within its structured credit investment team in the US, bringing on a former sell-side CLO structurer from Bank of America Merrill Lynch and a trader from Citi.

    • 02 Jul 2014
  • SCIO grows team DB with syndicate appointment

    SCIO Capital has added to its ranks of former Deutsche Bank structured credit bankers with the appointment of a new head of syndicate.

    • 01 Jul 2014
  • RBS cuts extend to ABS

    Two senior ABS bankers have left Royal Bank of Scotland's US headquarters in Connecticut, one month after the bank announced a strategic “repositioning” that may affect as many as 400 of its US staff.

    • 27 Jun 2014
  • NewOak hires CRE securitization veteran

    NewOak Advisors has hired a former commercial real estate and structured credit analyst at Standard & Poor’s as a managing director in its Credit Services group. The new hire will help NewOak build up its collateral validation, servicer oversight and other credit management functions.

    • 26 Jun 2014
  • Raiffeisen Russia hires VTB securitization pair

    Raiffeisen Bank has hired a team of two from VTB to develop its Russian domestic market securitization business, ahead of a new securitization law which will take effect from July 1.

    • 24 Jun 2014
  • Guggenheim shows full house with hires across fixed income

    Guggenheim Securities has plucked away three veteran origination experts from rival firms in its bid to grow its fixed income business, which is expanding on multiple fronts, including esoteric ABS, leveraged loans and emerging markets.

    • 19 Jun 2014
  • Commerzbank hires securitization pro after long hiatus

    Commerzbank has hired Patrizia Canziani, a senior ABS origination banker, in a sign that it may be prepared to recommit to the business after a long period with a tiny primary securitization operation.

    • 19 Jun 2014

Top RMBS Stories

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Will Caiger-Smith
Securitization Editor
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will.caiger-smith@globalcapital.com

Matt Scully
New York Reporter
+1 212 224-3243
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Tom Porter
European Securitization Editor
+44 (0)207 779 7324
tom.porter@globalcapital.com

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CLO

IssuerArrangerSize ($M)
BlueMountain Capital Management, BlueMountain CLO 2014-3Citi612.05
Silvermine Capital Management, ECP 2014-6Citi879.10
CIFC Asset Management LLC, CIFC 2014-IVMorgan Stanley626.50

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 01 Sep 2014
1 JPMorgan 44,231.71 107 10.11%
2 Citi 43,338.90 107 9.91%
3 Bank of America Merrill Lynch 38,388.03 108 8.78%
4 Barclays 37,285.66 95 8.52%
5 Credit Suisse 36,262.48 89 8.29%

Financing Record (MBS)

IssuerPriceTotal Amount ($ Millions)
VOLT 2014-NPL599.84123.80
VOLT 2014-NPL598.0624.30
TCMLT 2014-NPL198.4535.50

Priced Deals

IssuerMaturitySize
UBS03-Sep-211500
UBS05-Sep-161500
Deutsche Bank15-Apr-19700

Bookrunners of European Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 4,076.46 11 4.63%
2 Deutsche Bank 3,489.39 10 3.97%
3 Bank of America Merrill Lynch 3,307.26 8 3.76%
4 RBS 2,666.67 6 3.03%
5 Barclays 2,655.81 8 3.02%