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Securitization

Top Securitization Stories

  • Headline risk doesn’t faze CarFinance, ACAR

    CarFinance and American Credit Acceptance this week both sold subprime auto ABS at cheaper levels than any deal they have issued over the past two years, despite an increase in headline risk.

    • 30 Jul 2014
  • Bayview sells unrated RPL after scuppered deal

    Bayview Financial is foregoing the ratings process on a securitization of once-defaulted mortgages after a ratings disagreement in May scuppered an attempted transaction.

    • 30 Jul 2014
  • Lehman RMBS holders set to cash in

    A £44m block of Eurosail 2007 6NC A2A is up for sale on Thursday afternoon, following a restructuring process that could have made the holders as much as 40 points.

    • 30 Jul 2014
  • Thrones price thoughts match secondary

    Citi has circulated initial price thoughts on its Thrones 2014 No. 1 RMBS, the second deal it has managed to fund a Mars Capital portfolio. The senior tranche is being shown at 105bp-110b, in line with the 105bp indicated for Thrones 2013-1, and broadly in line with BAML’s Moorgate Funding 2014-1, priced in early May.

    • 30 Jul 2014
  • CIFC and Black Diamond prep new CLOs after record quarter

    CIFC Asset Management and Black Diamond Capital Management are soon to hit the US market with new CLO deals, with new issuance showing no sign of abating after the most active quarter since the inception of the market, according to data from Fitch Ratings.

    • 29 Jul 2014

Latest News

  • Hatfield hopes to hold Deco 15 mandate with noteholder call

    Hatfield Philips has invited noteholders to a special update call on its strategy for servicing Deco 15 Pan Europe 6, as it tries to consolidate its hold on the servicing mandates in the CMBS. Cheyne Capital had tried to remove it from the Main loan and Plus Retail loan at the end of May.

    • 29 Jul 2014
  • LCR implementation delay may help ABS

    Implementation of the liquidity coverage ratio (LCR) in Europe is set to be delayed by 10 months according to a leak last week of a draft European Commission document. The treatment of ABS in the LCR, seen by the industry as unfavourable compared to covered bonds, was not changed in the leaked draft, but the delay could provide time to hammer out the details of more equitable regulatory treatment, said bankers on Monday.

    • 28 Jul 2014
  • Blackstone’s US rental unit chases European investors

    Blackstone Group’s rental home unit Invitation Homes may be opening up its latest securitization to the European market, two months after paying US investors more than anticipated for every tranche of its last deal.

    • 28 Jul 2014
  • Auto execs speak out to defend subprime credits

    Subprime auto executives are pushing back against a wave of negative reports that they say inaccurately draws parallels between their lending practices and those in the pre-crisis US subprime mortgage business. The fightback comes as at least two smaller auto financiers plan new asset-backed securities.

    • 28 Jul 2014
  • Westfield deal emerges to bring volume to European CMBS

    Crédit Agricole and Deutsche Bank have started officially marketing a single tranche CMBS transaction tied to the Westfield Stratford shopping centre in East London, which will put more than twice the volume of bonds on the market as the next biggest European deal this year.

    • 28 Jul 2014
  • Avoca looks to break spread boundary with euro CLO

    Avoca Capital is looking to break through a recent 135bp over Euribor lower limit for senior European CLO notes its second euro denominated deal of the year, which some bankers see as the start of a predicted primary market tightening for the asset class.

    • 28 Jul 2014
  • ‘Hurricane Isaac ABS’ to be sold next week

    Benchmark sized deals are taking a backseat this month as smaller deals hit the market in full force, including a utility rate securitization that will help finance costs incurred by Hurricane Isaac, which hit the Louisiana coast in 2012.

    • 24 Jul 2014
  • SolarCity, Hooters, One Main price latest deals

    A spate of asset-backed securities totaling $3.85bn were sold Thursday afternoon this week, including the latest from SolarCity, a debut from Hooters Restaurant Group and a billion dollar consumer loan ABS from One Main Financial.

    • 24 Jul 2014
  • Deutsche and PE firms in Romanian loan grab

    Deutsche Bank and private equity firms AnaCap Financial Partners and HIG Capital have completed the acquisition of a €495m portfolio of non-performing loans backed by property and land in Romania from Volksbank Romania.

    • 28 Jul 2014
  • UCI sees big response for 2014’s first Spanish RMBS tender

    Unión de Créditos Inmobiliarios was able to repurchase almost half of the bonds it invited investors to tender last week, with bondholders responding to some healthy premiums to secondary market prices in what was the first Spanish RMBS tender of the year.

    • 28 Jul 2014
  • Mission for Mars: exit UK mortgages from housing market peak

    Mars Capital is looking to price its second capital markets exit of a purchased mortgage portfolio next week after mandating Citi to sell Thrones 2014-1, a UK non-conforming RMBS transaction backed by loans originated at the peak of the country’s housing market in 2007 and 2008.

    • 24 Jul 2014
  • BES receives $834m corporate loan in repackage deal

    Banco Espirito Santo has used a Luxembourg special purpose vehicle to repackage two classes of dollar notes into a corporate loan that bears no interest but repays fixed amounts on various payment dates.

    • 24 Jul 2014
  • Silver Bay announces, Invitation Homes preps, ARPI slowed by Moody’s

    Blackstone Group’s Invitation Homes has added a new deal to the securitization pipeline, as Silver Bay Realty Trust Corp markets its first single family rental deal this week. American Residential Properties Inc., another potential debut issuer, may also soon have a deal in hand – if they can overcome a snag with Moody’s Investors Service.

    • 22 Jul 2014
  • Rail issuer says new rules won't impact ABS

    Incoming US safety rules that would phase out certain railway cars and impose retrofit requirements on others will not materially affect rail car lease securitizations, according to an issuer in the sector.

    • 24 Jul 2014
  • Credit Suisse scores again in second BlackRock RMBS sale

    Credit Suisse on Tuesday won two separate bids for a combined $4.4bn pool of legacy residential mortgage-backed securities sold by BlackRock. The sale comes one week after BlackRock sold a record-breaking $3.7bn pool of subprime mortgage-backed securities, also to Credit Suisse.

    • 22 Jul 2014
  • LCR drives Australian bank bid to triple size of MEB’s RMBS

    A strong bid from Australian banks looking to bolster their stock of liquidity coverage ratio (LCR) assets has helped Members Equity Bank triple the size of its SMHL 2014-1 RMBS and price a few basis points tighter than the last comparable deal.

    • 23 Jul 2014
  • 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

People News

  • 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
  • Mitaty to replace Ahern as SocGen's securitization head

    Société Générale CIB has promoted Laurent Mitaty to global head of securitization and distribution solutions, following Jim Ahern's departure to Moody's.

    • 11 Jun 2014
  • SocGen's Ahern joins Moody's

    Jim Ahern, former global head of securitization at Societe Generale, is joining Moody's as head of structured finance Americas, looking after primary business and surveillance ratings.

    • 03 Jun 2014
  • Citi expands CLO head’s remit

    Citi has combined its structuring groups for credit and residential real estate products, expanding the responsibilities of its head of European CLOs and several directors to reflect the reorganisation.

    • 03 Jun 2014
  • RBS to cut US CLOs, agency RMBS threatened

    Cuts to Royal Bank of Scotland’s US non-agency mortgage business may extend to its collateralised loan obligation syndicate and distressed debt businesses, and may also lead to a “rationalisation” of its agency RMBS trading desks, GlobalCapital understands.

    • 28 May 2014

Top RMBS Stories

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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

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Mark Goodes
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CLO

IssuerArrangerSize ($M)
Carlyle Investment Management LLC., CSAM 2014-3Citi815.80
Sound Point Capital Management, Sound Point CLO VIMorgan Stanley631.75
Alcentra NY, LLC, Shackleton I-RJefferies402.30

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 28 Jul 2014
1 JPMorgan 39,754.53 97 10.49%
2 Citi 38,263.92 96 10.10%
3 Bank of America Merrill Lynch 35,924.95 98 9.48%
4 Barclays 31,529.48 76 8.32%
5 Credit Suisse 27,820.58 75 7.34%

Financing Record (MBS)

IssuerPriceTotal Amount ($ Millions)
SolarCity Corp 2014-299.9941.50
SolarCity Corp 2014-2100.00160.00
Seaco Container 2014-199.97199.90

Priced Deals

IssuerMaturitySize
Credit Mutuel Nord Europe30-Jul-19300
Admiral Group25-Jul-24200
Talanx23-Jul-26500

Bookrunners of European Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 29 Jul 2014
1 JPMorgan 4,076.46 11 9.67%
2 Deutsche Bank 3,489.39 10 8.27%
3 Bank of America Merrill Lynch 2,737.00 7 6.49%
4 RBS 2,666.67 6 6.32%
5 Barclays 2,655.81 8 6.30%
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