Securitization

Latest News

• RMBS holders take another swing at Ocwen

  Investors in RMBS backed by mortgages serviced by troubled special servicer Ocwen Financial made allegations of their own last week, as investment firm BlueMountain claimed that some Ocwen-serviced notes had defaulted.

  • 26 Jan 2015

• Deutsche discounts Progress SFR ABS amid heavy supply

  Sole bookrunner Deutsche Bank may offer investors an extra 10bp on the senior tranche of Progress Residential’s latest single family rental securitization, if the deal prices in line with guidance released on Thursday.

  • 22 Jan 2015

• Institutional investors wolf down Dunkin' Donuts securitization

  Strong demand from institutional investors allowed Dunkin’ Brands to upsize its whole business securitization by $200m to $2.6bn on Thursday, making it one of the largest such deals in recent memory.

  • 22 Jan 2015

• CMBS steps out as Banca IMI and Cairn price fashionable deal

  Banca IMI and Cairn Capital priced and issued the first European CMBS transaction of the year this week, with the deal being used to refinance a luxury fashion complex in Milan.

  • 23 Jan 2015

• Buyers jump on first fresh ABS to drive down VW’s auto level

  Starved investors have jumped on the first fresh European flow ABS supply of the year, pushing market stalwart Volkswagen Bank close to a three times subscription level for the top rated notes of its market opening auto loan-backed transaction.

  • 22 Jan 2015

• Dutch RMBS spreads hit fresh lows but tightened lending rules to slow recovery

  Triple-A Dutch RMBS spreads in the three to five year bucket hit their lowest level since 2007 this week, helped by a stronger than expected rally in the housing market at the end of last year. But tighter lending criteria are expected to dampen a more widespread recovery in larger properties.

  • 22 Jan 2015

• Pace effect unclear as ABS is loaded into ECB bazooka

  European ABS players shrugged their shoulders on Thursday as European Central Bank president, Mario Draghi unveiled an apparently open ended programme of sovereign quantitative easing. Quoted bid levels for periphery paper were stronger, but investors were more focused on whether ABS purchases would fall by the wayside with €60bn a month being pumped into the markets.

  • 22 Jan 2015

• Originators ‘improve’ Greek RMBS performance

  Lender intervention has improved Greek RMBS performance as a significant portion of defaulted loans have reverted back to less critical delinquency or even performing status, according to a report from Fitch.

  • 23 Jan 2015

• The SEC banned who from rating what?

  The Securities & Exchange Commission’s decision to suspend Standard & Poor's from rating conduit fusion CMBS deals for one year may seem dramatic, but will have little effect on issuers and investors. Market participants have already adapted to life without the ratings agency, which has seen its market share drop by a factor of 10 since 2007.

  • 22 Jan 2015

• Top players lose share in CLOs, but not for long

  The top 10 CLO managers in the US lost market share in 2014, amid a rash of transactions from first time managers looking to cash in on a bull market in the asset class. But as the implementation of risk retention rules looms, more consolidation — such as Man Group’s acquisition of Silvermine Capital — is on the way.

  • 22 Jan 2015

• Largest SoFi ABS yet gets upgrade despite lower FICOs

  DBRS has awarded West Coast marketplace lender SoFi a small ratings upgrade for its fourth and largest yet securitization of student loan refinancings, despite noting slightly weaker collateral backing the deal.

  • 21 Jan 2015

• Another shot for MBS investors in trustee lawsuits

  Lawsuits against MBS trustees over bad mortgages originated before the financial crisis might still have a chance of being considered, after a petition filed in a US federal appellate court on Tuesday.

  • 21 Jan 2015

• VW pushing 3x as investors climb on fresh bonds

  Starved investors have jumped on the first fresh European flow ABS supply of the year, pushing market stalwart Volkswagen Bank close to a three times subscription level for its market opening auto loan-backed transaction.

  • 21 Jan 2015

• StormHarbour reveals third deal for Energias de Portugal

  StormHarbour arranged an electricity tariff deficit sale for Energias de Portugal just before Christmas, the third such transaction it has structured for the energy company but also the smallest.

  • 21 Jan 2015

• Esoteric ABS surge continues

  A trend of more esoteric ABS issuance continued this week with three deals marketing, one backed by timeshares, another by shipping containers and the third by railcar equipment.

  • 21 Jan 2015

• New housing drive to boost Indian RMBS

  An ambitious programme to provide all Indian citizens with housing by 2022 should help bolster India’s fledgling residential mortgage-backed securities (RMBS) market, which recorded issuance of just Rph53bn (€743m) in 2014. But Moody’s has warned there are tax obstacles for investors looking to participate.

  • 22 Jan 2015

• VW testing tighter with ECB to come

  Volkswagen Bank is ready to set a tight benchmark for the rest of the European ABS market to follow on Wednesday after tightening guidance on its Driver Thirteen German auto ABS to a minimum spread of 25bp on Tuesday.

  • 20 Jan 2015

• Progress pricing similar to Invitation Homes, but less leverage

  Progress Residential is marketing its first single-family rental (SFR) securitization of 2015. Initial price thoughts for the issuance are comparable to a deal that Invitation Homes priced last week, even though Progress’s deal is less leveraged.

  • 20 Jan 2015

• Auto performance down but pipeline still strong

  Regular auto ABS issuers are not expected to encounter much difficulty launching new deals in the prime or subprime space, despite declining performance, as Credit Acceptance Corp leads a pack of auto lenders marketing new deals this week.

  • 20 Jan 2015

• Spanish supply hopes grow as SME CLO spreads tighten

  Scope Ratings believes conditions are now favourable for a revival of publicly distributed Spanish SME CLOs, as the decrease in spreads being demanded for investment grade tranches allows for economically viable transactions once more.

  • 20 Jan 2015

• UK group sells motorway services CMBS

  Extra MSA Group, which owns a portfolio of 18 motorway service areas (MSAs) in the UK, has securitised half of them in a private £220m commercial mortgage-backed bond just before Christmas.

  • 19 Jan 2015

• Gatehouse preps Shariah compliant structure for CMBS breakthrough

  Shariah compliant lender Gatehouse Bank kicked off a roadshow on Monday for its first commercial rental backed security (CRBS). The bank created the new Shariah compliant structure in order to break into the recovering European CMBS market, and the collateral features on the new product could eventually allow tighter pricing than conventional CMBS, a senior Gatehouse banker told GlobalCapital.

  • 19 Jan 2015

• Two out of three is bad for Tesco CMBS

  Standard & Poor’s became the second ‘big three’ ratings agency to cut UK supermarket group Tesco to junk status last week, and its commercial mortgage-backed debt is suffering the consequences.

  • 19 Jan 2015

• ‘Reeling’ CLO market searches for first pricing

  The US CLO market was still yet to see its first deal pricing of 2015 on Thursday, with a confluence of regulatory and market-driven factors putting serious pressure on demand. But that isn’t stopping some banks from taking an aggressive stance on new issuance.

  • 15 Jan 2015

• Investors urged to jump in to euro ABS as tightening trend starts to re-emerge

  While some ABS market participants remain extremely unimpressed by the pace of European Central Bank purchases so far, many are now expecting the scheme to gather pace as the process becomes more streamlined and are urging any investors not positioned for a another rally to become so.

  • 15 Jan 2015

• Raters stop short of Ocwen RMBS downgrades

  Ratings agencies are monitoring the possibility of a mortgage servicing right (MSR) fire sale in California closely, but they have stopped short of downgrading structured products tied to the beleaguered servicer.

  • 15 Jan 2015

• Spire to unveil new euro CLO platform

  Spire Partners has hired a European investment bank to arrange its inaugural European collateralised loan obligations (CLO) transaction, as fellow US managers consider their own debuts.

  • 15 Jan 2015

• DLJ Mortgage Capital to bring jumbo RMBS

  DLJ Mortgage Capital is partnering with Credit Suisse to bring an RMBS issuance backed by 525 jumbo mortgages totaling $381.6m in principal.

  • 15 Jan 2015

• Santander to double down in Vegas

  Santander Consumer UK has lined up a series of meetings with investors at ABS Vegas in February, to discuss what would be the fourth dual sterling and dollar offering of auto ABS from its Motor programme in as many years.

  • 15 Jan 2015

• New TIG fund targets esoteric ABS

  US hedge fund TIG Advisors has launched a new fund to target illiquid securitized products that do not quite fit into its Securitized Asset Fund, with a focus on esoteric asset classes like aircraft ABS and peer-to-peer loan securitizations.

  • 14 Jan 2015

• Invitation Homes opens big year for SFR ABS

  Invitation Homes is marketing the first single family rental (SFR) securitization of 2015, a $540.854m deal backed by a single first-lien, interest-only loan.

  • 14 Jan 2015

• Two Harbors comes but jumbo RMBS still small-time

  Jumbo RMBS issuance in the US is trending upward as Two Harbors markets its first deal of the year, but market participants say a lot more volume is needed before a secondary market can develop in the sector.

  • 14 Jan 2015

• CLOs rue oil exposure

  Of the 68 US loan borrowers that have suffered price drops of more than 5 percentage points in the past 30 days, some 35 are in the oil and gas industry or related sectors, compared to just five two months ago, Morgan Stanley analysts wrote on Wednesday.

  • 15 Jan 2015

• Upgrades loom as UK non-conforming story improves

  The performance of UK non-conforming residential mortgage-backed securities market improved in the three months ending November 2014, according to Moody's, which has a positive view on the country’s housing market and is eyeing upgrades to 17 trades.

  • 15 Jan 2015

• VW preps ABS market opener as supply lines up for February

  Volkswagen Bank has named leads for what will likely be the first European ABS print of 2015 next week. Bankers anticipate seeing only one or two more deals in January but they are preparing for a busy February and March.

  • 14 Jan 2015