Securitization
Top Securitization Stories
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CIT Group exits student loans as Nelnet muscles for growth
CIT Group, a commercial bank, will exit the student loan business by selling its remaining portfolio of $3.6bn in federal loans to Nelnet, a dominant issuer of student loan ABS. The deal comes as supply from a federal loan program winds down and investors look to whole loan transfers to help boost new ABS volumes.
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Investors warn on ratings race for new rental loan deals
Morningstar Credit Ratings is forging ahead to rate conduit-style securitizations of home rental loans, an offshoot of the single-borrower deals from Blackstone Group and Colony Capital. Credit graders’ eagerness to rate an inaugural transaction, however, has some fixed income investors openly lamenting the post-crisis rating process, which they believe remains flawed.
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VW lands biggest auto ABS since ‘07 after puzzling price pointers
Volkswagen Bank printed the largest auto loan securitization since the onset of the financial crisis this week, despite its leads leaving rival syndicate teams nonplussed by deciding to go to one decimal place with initial price thoughts on the senior notes.
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CFF remains coy on cap structure of debut prime RMBS
Crédit Foncier de France is set to sell the first securitization of French home loans since before the financial crisis, after officially mandating leads for its long-awaited prime RMBS debut. But the issuer refused to be drawn on intense speculation that it will look to place the full capital stack with investors.
Latest News
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Risk profiles stand out in Q1 auto tiering—Wells
Fast-paced growth and higher net losses in the subprime auto space stoked investor concerns last year, prompting more credit tiering among the issuers. A Wells Fargo report evaluates where investors showed the most demand in the first quarter this year compared to 2013.
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Underwriting standards weaker than pre-crisis, say Euro CLO managers
European CLO managers and investors believe underwriting standards in Europe’s leveraged loan market are weaker now than before the 2008 financial crisis, but that with limited primary activity in the leveraged buyout market cov-lite loans are still not a “major issue” in Europe.
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B2R Finance chalks up rental loans for multi-borrower securitization
Blackstone Group’s buy-to-rent mortgage unit, B2R Finance, which closed its first residential loan in February, intends to source enough supply for a first-of-its-kind securitization of around $300m.
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Kubota, Mitsubishi lead ABS pipeline
Kubota Credit Corp and Mitsubishi Motors Credit brought new deals into this week’s asset backed securities pipeline, with weekly trading volume decelerated for the Passover and Easter holidays.
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Yorkshire backs UK mid-tier for RMBS growth
Yorkshire Building Society and its fellow mid-tier lenders can look forward to a more active future in RMBS, its treasury team told GlobalCapital this week after fully retaining the issuer’s fourth mortgage securitization.
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Aussies pick up European slack in RMBS supply surge
European investors were given a way out of an RMBS supply shortage on their own continent this week as three Australian issuers sought to capitalise on an ever-growing bid for their paper from foreign investors.
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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.
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Fitch sees expansion for Chinese leasing ABS after rule change
Changes to rules governing financial leasing companies in China should limit the risk of originator/servicer defaults and make the issuance of leasing ABS deals possible in the country, according to analysts at Fitch Ratings.
People News
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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.
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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.
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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.
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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.
Top ABS Stories
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Comments? Questions? Tips?
Will Caiger-SmithSecuritization 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+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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Securitization Milestones Dinner
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Securitization Milestones Dinner 2014
On May 28, GlobalCapital will be holding its first awards dinner for the US securitization market since before the financial crisis, to recognise industry participants that have helped the market recover. Read on for the awards shortlist.
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US CLO Deal of the Year Award 2013
Voting has now closed for the GlobalCapital US CLO Deal of the Year Award, which will be presented at IMN's CLO Conference in New York on April 22.
Most Viewed
- Underwriting standards weaker than pre-crisis, say Euro CLO managers
- CFF remains coy on cap structure of debut prime RMBS
- Investors warn on ratings race for new rental loan deals
- VW lands biggest auto ABS since ‘07 after puzzling price pointers
- B2R Finance chalks up rental loans for multi-borrower securitization
Featured Bank Profiles
Latest news and league table performance
Opinion
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Reverting to crisis business models
Originate to distribute, the business model oft quoted as one of the primary causes of the subprime mortgage crisis in the US, and by extension, the rest of the financial crisis, is back. But this time it’s different, apparently, or at least backwards.
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Risk weighting fiasco makes a farce of regulation
The risk weights for securitization have been halved, again, in the latest version of Solvency II. Naturally the market is pleased to be further out of the regulatory dog house, but the way risk weights (and therefore careers, businesses and economies) can be slashed at the stroke of a pen ought to give pause for thought.
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EBA misses the point on encumbrance
The European Banking Authority’s effort to improve transparency on balance sheet encumbrance has come to nothing. The draft guideline, which will be finalised by June, is practically useless because it doesn’t include emergency central bank liquidity, which is the largest and most important source of encumbrance. But that’s probably just as well, for if this disclosure became public knowledge, it would create just the sort of negative feedback loop that brought down the UK’s Northern Rock.
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Regulators must act on securitization before it is too late
When Mario Draghi said — for the second time— that the ECB would consider buying ABS to boost Europe’s economic prospects, everyone took note. Everyone, it seems, except Europe’s regulators, who have shown a reluctance to change their anti-securitization tack. It is time for them to swallow some pride and roll back the harshest securitization regulation — before it is too late.
CLO
| Issuer | Arranger | Size ($M) |
|---|---|---|
| NXT Capital Investment Advisers, NXT CLO 2014-1 | Wells Fargo | 357.44 |
| H.I.G. Whitehorse Capital, Whitehorse VIII | Morgan Stanley | 574.75 |
| Blackrock, Magnetite VIII CLO | Wells Fargo | 612.41 |
Bookrunners of Global Structured Finance
| Rank | Lead Manager | Amount $m | No of issues | Share % |
|---|---|---|---|---|
| 1 | JPMorgan | 22,169.53 | 47 | 11.59% |
| 2 | Bank of America Merrill Lynch | 21,725.71 | 56 | 11.36% |
| 3 | Citi | 20,856.97 | 48 | 10.91% |
| 4 | Barclays | 15,507.18 | 39 | 8.11% |
| 5 | Deutsche Bank | 15,269.96 | 36 | 7.99% |
Financing Record (MBS)
| Issuer | Price | Total Amount ($ Millions) |
|---|---|---|
| ERL 2014-1 | 100.00 | 32.00 |
| ERL 2014-1 | 100.00 | 220.80 |
| ERL 2014-1 | 100.00 | 87.50 |
Priced Deals
| Issuer | Maturity | Size |
|---|---|---|
| Intesa Sanpaolo | 17-Apr-19 | 1000 |
| 3CIF | 22-Apr-19 | 1500 |
| Allied Irish Banks | 16-Apr-19 | 500 |
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% |
