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  • April 11 2014

Securitization

Top Securitization Stories

  • Kubota, Mitsubishi lead ABS pipeline

    Kubota Credit Corp and Mitsubishi Motors Credit are bringing new deals into this week’s asset backed securities pipeline, with weekly trading volume decelerated for the Passover and Easter holidays.

    • 15 Apr 2014
  • Tricky CLO amendments could put extra pressure on equity buyers

    CLO managers may be more inclined to amend existing deals to make them Volcker-compliant now that the Federal Reserve has given bank investors an extra two years to make sure their CLO holdings conform. But that doesn’t make it any easier to do in practice, and the potential changes could put too much pressure on equity investors, CLO market participants told GlobalCapital on Monday.

    • 14 Apr 2014
  • VW’s half-point pricing pointers befuddle rivals but investors respond

    Volkswagen took the unusual step of going to one decimal place with initial price thoughts for its Driver Twelve auto ABS on Monday. While rival bankers were left confused by the strategy, investors seemed undeterred with both tranches well covered by Tuesday morning.

    • 15 Apr 2014
  • Banco BPI purchases 30% of investors’ Douro offers

    Banco BPI had a good response from investors to its tender offer for 10 bonds from its Douro RMBS platform, with the Portuguese bank deciding to buy back 30% of the bonds tendered at prices close to or just above minimum prices.

    • 15 Apr 2014

Latest News

  • Aussie RMBS picks up European slack in pre-Easter supply surge

    European investors could be offered a way out of a supply shortage in European RMBS this week with two issuers having mandated for new deals, following a swift transaction from Liberty Financial on Monday.

    • 14 Apr 2014
  • Skipton finds £500m of demand on UK RMBS return

    Skipton Building Society has sold the biggest sterling-denominated tranche of UK prime RMBS bonds of the year so far, pulling in a 1.25 times subscribed book for its first deal since 2012.

    • 11 Apr 2014
  • Mitsubishi to sell first auto ABS since 2012

    Mitsubishi Motors Credit of America is roadshowing its first auto loan ABS since 2012, as the auto sector continues to pump out deals. Elsewhere, non-traditional and equipment ABS is adding diversity to the pipeline, with deals from Kubota Credit Corp and Element Rail Leasing.

    • 10 Apr 2014
  • Santander taps yield-hungry US with bumper auto ABS

    Santander Consumer UK has priced its Motor 2014 auto ABS with a US dollar tranche some $300m bigger than either of its previous 144a format efforts, showing the benefit to European issuers of tapping into a deep and yield-hungry US investor base.

    • 10 Apr 2014
  • Volcker CLO relief effort losing momentum amid ‘regulatory incrementalism’

    The Fed’s decision to give banks two more years to make sure their CLO investments conform with the Volcker rule’s ban on deals that include bond collateral falls short of the full grandfathering regime the industry was hoping for — and risks derailing the positive momentum the market chose to believe was driving efforts to soften the impact of the rule, sources have told GlobalCapital.

    • 09 Apr 2014
  • Debt warning in Australia even as subprime arrears fall to record low

    Australian subprime mortgage loan arrears have fallen below 5% for the first time, according to a ratings agency report, just as the country’s household debt hits a record high and commentators issue warnings about a property bubble.

    • 10 Apr 2014
  • Veneto demand fuels syndicate pitches for more periphery ABS

    Veneto Banca gathered a three times subscribed book for the first public Italian RMBS deal in three years this week, strengthening ABS syndicates’ appeals to other periphery borrowers to take advantage of invester yield appetite and return to the primary markets.

    • 10 Apr 2014
  • Lehman’s ‘ghost’ recalled in latest margin debate

    The world’s biggest bond traders and asset managers, such as Bill Gross’s PIMCO, are attacking the industry’s internal regulator over a margining proposal on forward trades of mortgage-backed securities. The debate is leading some to claim regulatory overkill — but others point to the collapse of Lehman Brothers as reason enough for stronger safeguards.

    • 08 Apr 2014
  • Lloyds voices US ambition with quadruple New York hire

    Lloyds has made three external hires for its expanding credit markets team in New York, as well as transferring one banker from its London headquarters, as it looks to win more business in the US in fixed income and securitization.

    • 08 Apr 2014
  • Banks innovate as US leverage ratio set to double

    The eight largest US banks are about to face tough new restrictions that may affect their holdings of on and off-balance sheet securitizations, barely a day after regulators delivered other bad news regarding CLOs under the Volcker Rule.

    • 08 Apr 2014
  • Debut ABS from Citigroup subprime unit shows revival of riskiest lending

    Citigroup unit OneMain Financial, which was recently rumoured to be up for sale, is preparing a debut $500m consumer loan ABS backed by nonprime collateral. The deal, which follows a $592m ABS from Fortress Investment Group’s Springleaf Financial last month, highlights strong investor demand for higher-yielding and riskier credit.

    • 04 Apr 2014
  • ECB’s Mersch backs central bank criteria for ‘high quality’ securitizations

    European Central Bank Executive Board member Yves Mersch has advocated using central bank ABS eligibility criteria as a starting point for defining ‘high quality’ securitizations, and called on the ECB and Bank of England to issue a joint statement to address the “inappropriate” regulatory treatment of the asset class.

    • 10 Apr 2014
  • CORRECTED: Deutsche may compete with the rental lenders it finances

    Deutsche Bank is understood to be in discussions to write large loans directly to mid-sized home rental investor landlords, in a move that could complicate relationships with its institutional clients that are actively lending to the same borrowers.

    • 07 Apr 2014
  • Tighter arbitrage having no impact on CLO asset selection, says Moody’s

    The declining arbitrage levels in the European broadly syndicated loan CLO market are not leading managers to change their approach to asset selection, Moody’s analysts told GlobalCapital on Tuesday.

    • 08 Apr 2014
  • BMW leads auto and biker ABS assault in US

    BMW Financial Services, DriveTime Car Sales Company, Flagship Credit Acceptance and Harley Davidson are preparing to sell new ABS deals this week as the auto sector continues to churn out deals. Citigroup’s non-prime consumer lender OneMain Financial is also preparing its debut securitization.

    • 07 Apr 2014
  • ECB’s Mersch backs central bank criteria for ‘high quality’ securitizations

    European Central Bank Executive Board member Yves Mersch has advocated using central bank ABS eligibility criteria as a starting point for defining ‘high quality’ securitizations, and called on the ECB and Bank of England to issue a joint statement to address the “inappropriate” regulatory treatment of the asset class.

    • 07 Apr 2014

People News

  • Lloyds hires plant flag for US fixed income expansion

    Lloyds has hired three bankers for its expanding credit markets team in New York, as well as transferring another, Wesley Fallan, from its London headquarters, as it looks to win more business in the US in fixed income and securitization.

    • 10 Apr 2014
  • SG prepares for project bond boom with Robinson hire

    Société Générale has hired Stewart Robinson from RBC Capital Markets to be European head of project bonds on its syndicate desk in London.

    • 10 Apr 2014
  • Barclays loses EMEA structuring head to Credit Suisse

    A senior securitization structurer at Barclays has left the firm and is bound for Credit Suisse, GlobalCapital understands.

    • 25 Mar 2014
  • Tilden Park hires new esoteric ABS head

    Tilden Park Capital Management is preparing to beef up its asset-backed securities activity with a new hire from One William Street Capital to lead the firm’s esoterics desk.

    • 24 Mar 2014
  • King leads RMBS bankers out of broker-investor Carrington

    US residential real estate transaction firm Carrington, which has been trying to straddle the buy- and sell-sides of the distressed mortgage markets, lost a team led by former Citadel and JP Morgan banker William King.

    • 20 Mar 2014
  • Marks out of BNPP, Egan steps in

    Christopher Marks, head of global DCM at BNP Paribas, left the bank on Thursday morning, GlobalCapital understands.

    • 27 Mar 2014
  • BNPP makes senior cuts to NY MBS desk, appoints new co-heads

    BNP Paribas is said to have cut around two dozen employees from its New York front office, including its MBS desk, with a managing director, a head bond trader and the team’s head of interest rate sales among the casualties. The bank has also appointed three staffers to co-head the mortgage bond sales and trading group.

    • 28 Feb 2014

Top RMBS Stories

Comments? Questions? Tips?

Will Caiger-Smith
Securitization Editor
+44 (0)207 779 7323 
will.caiger-smith@globalcapital.com

Matt Scully
New York Reporter
+1 212 224-3243
matthew.scully@globalcapital.com

Tom Porter
European Securitization Editor
+44 (0)207 779 7324
tom.porter@globalcapital.com

Top CMBS Stories

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Mark Goodes
+44 (0)207 779 8605
mark.goodes@globalcapital.com

George Williams
+44 (0)207 779 8274
george.williams@globalcapital.com

 

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James Barfield
+1 212 224-3445
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CLO

IssuerArrangerSize ($M)
Aegon USA Investment Management, LLC, Cedar Funding 2014-3Jefferies389.25
Halcyon Loan Management, Halcyon 2014-2Citi569.53
Shenkman Capital Management, Washington Mill CLOBAML520.63

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
1 JPMorgan 22,169.53 47 11.59%
2 Bank of America Merrill Lynch 21,725.71 56 11.36%
3 Citi 20,856.97 48 10.91%
4 Barclays 15,507.18 39 8.11%
5 Deutsche Bank 15,269.96 36 7.99%

Financing Record (MBS)

IssuerPriceTotal Amount ($ Millions)
ERL 2014-1100.0032.00
ERL 2014-1100.00220.80
ERL 2014-1100.0087.50

Priced Deals

IssuerMaturitySize
Intesa Sanpaolo17-Apr-191000
3CIF22-Apr-191500
Allied Irish Banks16-Apr-19500

bookrunners of European Structured Finance

Rank Lead Manager Amount $m No of issues Share %
1 JPMorgan 2,240.24 5 12.62%
2 VTB Capital 1,601.44 4 9.02%
3 RBS 1,570.47 3 8.85%
4 Deutsche Bank 1,387.85 4 7.82%
5 Santander 1,275.84 4 7.19%