Covid-19 Crisis

Santander said to be among banks targeting first synthetic STS deals

ABS

Santander said to be among banks targeting first synthetic STS deals

European banks are rushing to finalise the first synthetic ABS transaction to achieve a ‘simple, transparent and standardised’ (STS) verification. The debut deal, which marks a turning point for the significant risk transfer market, has already been signed and is set to arrive in the coming months.

  • ABS spreads hit post-crisis tights

    ABS

    ABS spreads hit post-crisis tights

    European ABS spreads have retraced to their tightest levels since before the 2008-09 financial crisis, with BMW Bank’s Bavarian Sky Compartment German Auto Lease 6 racing to price at 10bp, the tightest in the market since July 2007, according to EuroABS data.

  • ABS

    Porsche Bank dodges residual risk with Austrian auto ABS

    Volkswagen-owned Porsche Bank is selling a rare few Austrian auto ABS deal. Sources say FACT 2021-1 may be able to price in line with recent French and Spanish auto transactions, but investors will demand a premium for its lack of ECB repo eligibility.

  • Kensington ‘green’ RMBS priced despite scepticism

    RMBS

    Kensington ‘green’ RMBS priced despite scepticism

    Kensington, the pioneer of the first social RMBS in the UK, priced the country’s first mortgage securitization with a class ‘A’ green tranche, achieving 65bp pricing for the senior notes on Thursday. However, investors said the green feature did not impact on pricing and called for “more ambitious” ESG targets.

  • BNPP announces Spanish auto capital relief trade

    ABS

    BNPP announces Spanish auto capital relief trade

    On Thursday, BNP Paribas announced Autonoria Spain 2021, an STS deal aiming to achieve significant risk transfer through a full cap-stack offering. Only one triple-A rating is listed on the senior notes, but investors say demand is still high for the deal.

  • LendInvest buffs up senior mezz with BTL RMBS

    RMBS

    LendInvest buffs up senior mezz with BTL RMBS

    Specialist buy-to-let mortgage provider LendInvest has announced Mortimer BTL 2021-1, a £280m UK RMBS backed entirely by interest only BTL mortgage loans. The issuer has grown the senior mezzanine tranches to reflect increased investor demand for senior mezzanine notes.

  • Davidson Kempner brings non-conforming legacy UK RMBS

    RMBS

    Davidson Kempner brings non-conforming legacy UK RMBS

    Davidson Kempner, through its investment vehicle Burlington Loan Management, is selling six tranches of a non-conforming UK RMBS, with Bank of America as sole arranger. A legacy portfolio of pre-financial-crisis mortgages is backing the deal.

  • Vauxhall auto ABS reflects shift in UK car market

    ABS

    Vauxhall auto ABS reflects shift in UK car market

    Vauxhall Finance, the UK auto lender owned through a subsidiary held jointly by BNP Paribas and Banque PSA Finance, intends to sell a £300m auto ABS. The latest deal contains an increased percentage of “balloon payment” contracts and used cars compared with previous deals.

  • More CLOs get ESG scores but market is sceptical

    People & Markets

    More CLOs get ESG scores but market is sceptical

    Partners Group is marketing Penta CLO 9, a new CLO with a score related to environmental, sustainable and governance factors, following three similar transactions. But market participants question whether ESG scores are likely to turn the CLO market green.

  • Venn launches Dutch RMBS with STS label

    RMBS

    Venn launches Dutch RMBS with STS label

    Venn has mandated BNP Paribas, Citi and SMBC Nikko for Cartesian 6, a Dutch prime RMBS deal which carries the STS label. Sources hope this will lead to tight pricing for the issuer.

  • Domivest prints tightest euro BTL deal on record

    RMBS

    Domivest prints tightest euro BTL deal on record

    Arrangers BNP Paribas, Barclays and Macquarie Bank sold the joint-tightest European buy-to-let RMBS since 2008 on Thursday, with Domi 2021-1 tying first place for record senior note spreads with Dutch Property Finance 2018-1.

  • European regulators' securitization report ‘missed opportunity’

    People & Markets

    European regulators' securitization report ‘missed opportunity’

    The Joint Committee of the European Supervisory Authorities (ESAs) has released its hotly anticipated report on European securitization. But market participants are calling it a missed opportunity, pointing out that it fails to address recommendations made by the High Level Forum on the Capital Markets Union to develop the market.

  • Transparency is key to unlocking ESG securitization

    The View

    Transparency is key to unlocking ESG securitization

    Securitization investors are divided over whether to open up their ESG portfolios to mortgage-backed securities that are marketed as virtuous because of their socially beneficial use of proceeds, as opposed to their green collateral. Issuer transparency will be essential if this burgeoning market is to thrive.

  • Dry supply sees Domi RMBS tighten

    RMBS

    Dry supply sees Domi RMBS tighten

    Dutch RMBS issuer Domivest released initial price thoughts for its first buy-to-let RMBS deal issued with a ‘simple, transparent and standardised’ (STS) stamp, with levels tightening off the back of limited supply in 2021.

  • ABS winds in pension investors

    ABS

    ABS winds in pension investors

    Asset managers such as Tikehau Capital are increasingly targeting their securitization offerings at pension fund investors, enticing buyers with steady returns which stand out against other products squeezed by the broader low interest rate backdrop.

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