Securitization

Latest News

• SolarCity to announce third solar ABS

  SolarCity, which last November sold the market’s first-ever solar asset-backed security, is preparing to announce a third deal over twice the size of its second issuance in April and four times the size of its inaugural transaction last year.

  • 22 Jul 2014

• Italian SMEs cut out banks with first minibond ABS

  A group of eight Italian water utility companies have issued asset-backed securities backed by their own minibonds, in a novel technique that its structurers hope can be replicated to unlock funding for small and medium-sized companies throughout Europe and offer them an alternative to bank borrowing.

  • 22 Jul 2014

• Private investors prove thirst for SME ABS

  IKB Leasing has been inundated with orders for its first public syndication of German SME ABS since the financial crisis this week, but private buyers were fighting for what was left after the European Investment Bank supported the deal from an early stage.

  • 23 Jul 2014

• Chenavari may puncture July lull with Volckerised Toro CLO

  Chenavari has opened books on its euro denominated and Volcker compliant Toro CLO, while two rivals may follow closely with their own euro deals after a quiet month so far for the asset class in Europe.

  • 22 Jul 2014

• Annual issuer United Auto returns after 14 month hiatus

  United Auto Credit plans to sell this week a $175.6 million securitization tied to loans it makes to subprime borrowers, the issuer’s first transaction in 14 months. The deal comes as analysts see heightened activity from less established auto issuers and credit risks evolve in the sector.

  • 21 Jul 2014

• Supply at risk as TLTRO to reduce incentives for SME ABS to ‘zero’

  The way borrowing allowances are calculated under the European Central Bank’s latest flagship cheap funding programme may put ABS at a further disadvantage to covered bonds, according to analysts at Bank of America Merrill Lynch, who are concerned their recently lowered 2014 supply forecast for securitization in Europe should be cut again as a result.

  • 21 Jul 2014

• MEB heads for size increase on strong IOIs

  Australia’s Members Equity Bank is likely to increase the size of its first RMBS transaction of 2014 this week, and has asked offshore buyers to finalise their orders by the close of play on Tuesday so pricing can be brought forward to Wednesday.

  • 21 Jul 2014

• VW prices flat to BMW with debut Chinese auto ABS

  Volkswagen Financial Services has now sold auto ABS in 11 jurisdictions, having priced its long awaited renminbi debut on Monday in line with a virtually identical June deal from German competitor BMW Bank.

  • 21 Jul 2014

• Citigroup’s One Main to sell $1.2bn subprime loan deal

  Citigroup’s One Main Financial is expected to sell next week a $1.2bn subprime consumer loan ABS, which would be over twice the size of its debut deal earlier this year. At least three other asset-backed securities are also lining up to be sold next week.

  • 18 Jul 2014

• BlackRock preps $4.4bn auction after mega subprime sale

  BlackRock will manage next Tuesday a $4.38 billion sale of Alt-A residential mortgage-backed securities in a second and even bigger sale than the record $3.7bn subprime RMBS sale it managed for UBS AG this week.

  • 17 Jul 2014

• Demand not the problem for euro CMBS

  Goldman Sachs’s Moda CMBS became the latest European commercial property backed transaction to draw a heavy oversubscription this week, but CMBS structurers’ optimism is being tempered by the difficulty of finding appropriate assets for a more homogenised post-crisis market.

  • 16 Jul 2014

• Bulging US pipeline dashes hopes for quiet July

  ABS issuers are holding Wall Street hostage, with plans of July trips to the Shore dashed by a rash of new ABS sales filtering into the pre-August pipeline.

  • 16 Jul 2014

• Private buyers have capacity to support reduced ABS retention

  Data from the Association for Financial Markets in Europe on Wednesday showed European ABS issuers placed even fewer bonds with private investors in the second quarter than they did for the same period in 2013, a source of growing frustration to buyers scratching around the market for paper as the summer lull begins to take hold.

  • 16 Jul 2014

• UK housing association to sell retained bonds

  Affordable housing lender Longhurst Group will hold an investor call next week for a sale of previously retained bonds, using the release of its full year results on Thursday to drum up interest in the deal.

  • 17 Jul 2014

• Portuguese RMBS set wider, Spain dragged in

  Senior Portuguese RMBS bonds have found buyers at a level some 30bp wider in spread terms than they were before investors lost faith in the health of Banco Espírito Santo last week, while some offered Spanish RMBS have struggled to find suitable homes, traders told GlobalCapital on Wednesday.

  • 16 Jul 2014

• Smaller CLO managers face tiering threat as leverage concerns increase

  Smaller and less established US CLO managers without a proven track record could see their paper being indiscriminately sold off if volatility hits the underlying leveraged loan market, participants have told GlobalCapital.

  • 15 Jul 2014

• Aircraft issuers take flight to unsecured debt

  Ryanair and Qantas are among the airlines and lessors ramping up their issuances of unsecured debt, which could push them away from the asset-backed market.

  • 16 Jul 2014

• Barclays to sell first credit card ABS in two years

  Barclays will sell the first securitization of credit cards from its Gracechurch programme since June 2012 by the end of this week, in the latest sign that the UK ABS supply freeze may be thawing with the impending absence of cheap funding from the Bank of England.

  • 15 Jul 2014

• Postal Savings Bank to return China to RMBS

  Postal Savings Bank of China is preparing to sell the first mortgage-backed security in the country since 2007 this month, as its domestic securitization market takes another step towards rebirth after a false start in the years before the financial crisis.

  • 15 Jul 2014

• Fannie M2s widen as fourth deal hits screens

  The riskiest portion of Fannie Mae’s $2.05bn risk-sharing RMBS is on target to sell on Wednesday at a wider spread than previous deals, which could be due to waning novelty in the sector.

  • 15 Jul 2014

• Fannie Mae prepares largest risk-sharing deal to date

  US housing giant Fannie Mae will soon announce its fourth and largest residential mortgage risk-sharing deal, two months after the chief US housing regulator ordered the agencies to triple their issuances into the private market.

  • 11 Jul 2014

• MTF finds offshore support for kiwi dollar auto trade

  Motor Trade Finances has increased the size of its New Zealand dollar auto ABS by a third after a “broad mix” of domestic and foreign investors participated in the rare sale.

  • 15 Jul 2014

• Hooters deal supported by 'robust' structure

  The Hooters Girls are on the road with orders to sell, but this time they’re not marketing a 'delightfully tacky yet unrefined' chicken wing special.

  • 14 Jul 2014

• Babson drawn back to European CLOs but arbitrage threat persists

  Babson Capital has joined an extensive pipeline of prospective European CLO 2.0 issuers, looking to print its second post-crisis euro transaction. Bankers are looking forward to robust supply for the second half of the year, but concerns remain over the effect of a strong loan market on overall returns.

  • 14 Jul 2014

• IKB to market first post-crisis SME ABS

  IKB Leasing will meet investors in Europe this week ahead of its second lease and hire purchase securitization backed by loans to German SMEs. The amount of senior bonds available is curtailed by European Investment Bank involvement but the deal offers some decent sized mezzanine tranches.

  • 14 Jul 2014

• SoFi's second securitization courts controversy on execution and ratings

  It took only 40 minutes for more than 30 institutional investors to take down $250m in bonds backed by student debt offered by SoFi, the US peer-to-peer lending startup. And it took only two months for Standard & Poor's to go from saying peer-to-peer securitizations were not ready to be assigned public ratings to agreeing to rate one, writes Matt Scully.

  • 10 Jul 2014

• Scale of ECB’s ABS task laid bare by analysts

  European Central Bank officials have met with at least one big European bank this week about an attempted revival of the continent’s ABS market. The central bank needs all the help it can get, with ABS analysts suggesting other credit easing measures are acting against that goal.

  • 10 Jul 2014

• US CLO managers eye Europe as Chenavari targets dual demand

  At least three more US CLO managers are considering launching debut European CLO 2.0 transactions, GlobalCapital understands. The move further increases the potential pool of European issuers, which has already exceeded expectations this year and comes as Chenavari launches a rare deal complying with both US and European regulations.

  • 10 Jul 2014

• Investors happy to take meagre spreads in auto ABS with supply about to dry up

  GMAC Bank and BMW Bank were ushered ever closer to the tight end of the European auto ABS market this week by an investor base preparing for a supply drought as many ABS syndicates price their final transactions before the summer.

  • 10 Jul 2014

• AH4R elbows into competition for most-distressed assets

  American Homes 4 Rent, which this month jump-started talk of consolidation among smaller North American investor-landlords, is entering a broader competitive market to acquire an even more distressed kind of residential asset than it originally sought.

  • 11 Jul 2014

• Finra exempts smaller firms from TBA margin rules

  The US Financial Industry Regulatory Authority voted on Thursday to impose margin requirements on transactions of mortgage-backed securities, but included key exemptions that will make it easier for smaller firms to comply.

  • 11 Jul 2014

• SoFi celebrates S&P’s about-face on peer-to-peer

  Peer-to-peer startup SoFi on Wednesday celebrated its second sale of bonds backed by student debt. The deal carried a breakthrough rating from Standard & Poor’s, which just two months ago said it was uncomfortable assigning public ratings to peer loan securitizations.

  • 09 Jul 2014

• Columbus keeps Aussie RMBS ticking with acquired ANZ loans

  Non-bank mortgage lender Columbus Capital is preparing to sell its first Australian RMBS of the year, which will be the second securitization of the Origin loan portfolio it acquired from Australia and New Zealand Banking Group (ANZ) in 2012.

  • 10 Jul 2014

• Paragon sees slower demand but locks in tightening

  Paragon Mortgages’ latest buy-to-let RMBS deal was priced tight to its outstanding paper on Wednesday afternoon, despite attracting only half the number of investors as its previous effort this year.

  • 10 Jul 2014

• Deutsche prices Par-Four CLO, Volcker compliance reaches Europe

  Deutsche Bank on Wednesday priced Par Four Investment Management’s Tralee III CLO, as it was announced that the arranger is also working on a new Volcker-compliant European CLO to be managed by London-based hedge fund Chenavari. The euro deal comes at a time when large US bank investors in CLOs are being increasingly selective about new deals, based on managers’ willingness to 'Volckerise' existing deals.

  • 09 Jul 2014

• Rate reduction ABS to colour weekly pipeline

  A rare rate reduction ABS may be announced in the US this week following the sale of four other deals that were priced by Wednesday’s close.

  • 09 Jul 2014

• Solvency II stamps harder on insurance ABS holdings

  The European ABS market continues to miss out on insurance buyers because of punitive capital charges under Solvency II, as Bank of America Merrill Lynch data shows the holdings of the continent’s 30 largest insurance companies have fallen by more than 40% since 2008.

  • 09 Jul 2014

• Pepper Australia tackles educational battle to refi US notes

  Pepper Australia, in its push to broaden demand for Australian securitization paper, is appealing to US money funds to refinance an RMBS it issued last year — but a lack of familiarity with the foreign asset class is forcing syndicators to spend extra time educating prospective buyers.

  • 08 Jul 2014