Securitization - US Archive

  • Banks intensify margin calls for CLO warehouses

    Banks intensify margin calls for CLO warehouses

    Banks have started sending CLO managers notice to post more collateral against open warehouses after prices of the underlying leveraged loans dropped steeply to an average of about 76 cents this week, according to market sources.

  • Virus crash grips private label mortgage markets

    Virus crash grips private label mortgage markets

    The private label mortgage market fell into the grip of the Covid-19 crisis this week as shocks to commercial property assets and an end to a decade of US job growth put non-agency CMBS and RMBS in jeopardy.

  • Fitch, S&P downgrade commercial ABS outlook

    Fitch, S&P downgrade commercial ABS outlook

    S&P Global Ratings and Fitch Ratings adjusted their views on the most at-risk commercial ABS asset classes, namely aircraft and whole business securitizations, as the Covid-19 crisis puts even the largest and most well-established issuers to the test.

  • ABS cheers TALF 2.0 but bemoans limited scope

    ABS cheers TALF 2.0 but bemoans limited scope

    The Federal Reserve continued its roll-out of initiatives to support the economy through the Covid-19 crisis this week, including the revival of the term asset-backed loan facility (TALF). However, market participants say the program is incomplete as long as it omits certain asset classes, specifically private label CMBS, and worry that some sectors will buckle without the support of the central bank.

  • World Bank pandemic bond still weeks away from trigger

    World Bank pandemic bond still weeks away from trigger

    The pandemic bond issued by the World Bank still has one more hurdle to clear before triggering and releasing funds for use by countries struggling with the coronavirus. But it will still take a couple of weeks at least to reach that point.

  • Bankers get the orders to steer clear of aircraft ABS

    Bankers get the orders to steer clear of aircraft ABS

    Many investment banks are circulating orders for bankers not fund any committed debt transactions in the aircraft sector, including ABS deals, a decision spurred by market volatility from Covid-19. On top of restrictions on in-person meetings, macro factors such as city lockdowns and travel bans are putting a damper on the new issue pipeline.

  • CP experts welcome aid but want reassurance

    CP experts welcome aid but want reassurance

    Market participants have welcomed moves by the US Federal Reserve and Treasury, the Bank of England and the European Central Bank to restore order in commercial paper markets. This normally placid funding source has been under severe stress in the past week as investors and dealers shun risk amid the escalating coronavirus crisis. But market participants are still seeking further reassurance.

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