Securitization - Article Archive

  • From the sublime to ridiculous in German securitization

    The German securitization market covers the best and worst of the asset class in Europe. German auto ABS is clean, short, trades tighter than anything else in Europe and never stopped issuing through the crisis. But at the other end is a ragbag of dreadful CMBS loans lurching into special servicing and default, as well as mezzanine CLOs — arguably the worst asset class the European market has ever seen. As memories of the crisis recede, buyers and sellers are moving into riskier assets — but there is a long way still to go, writes Owen Sanderson.

    • 31 Mar 2014
  • Ocwen is an ‘above average’ servicer, says Fannie Mae

    New York regulator Ben Lawsky’s latest target, non-bank loan servicer Ocwen Loan Servicing, received a mark of good standing from Fannie Mae last week after three months of regulatory headwinds. The company’s rapid growth came under the spotlight in January when Lawsky’s office held up its acquisition of $2.7bn in mortgage servicing rights from Wells Fargo, a deal still being held in limbo.

    • 31 Mar 2014
  • Merseylink makes successful start for UK infrastructure guarantee

    Merseylink, the consortium building the Mersey Gateway bridge near Liverpool, became on Friday the first borrower to benefit from the UK government’s Infrastructure UK guarantee on a public, listed bond issue.

    • 31 Mar 2014
  • Green bonds grow with SCA deal, Skanska expected tomorrow

    Two new companies are joining the green bond market. Last week SCA, the Swedish forest products group, launched a Skr1.5bn green bond and tomorrow, Skanska, the Swedish construction company, is expected to bring its first deal.

    • 31 Mar 2014
  • MS and Nomura co-lead latest Freddie STACR

    Morgan Stanley and Nomura have been mandated as co-lead managers for Freddie Mac’s fourth risk-transfer issuance, designed to reduce taxpayer credit risk, according to announcement documents.

    • 31 Mar 2014
  • Italy breaks out with first new RMBS since 2011

    Veneto Banca is set to issue the first brand new RMBS bonds from Italy since the start of the eurozone debt crisis next week, as renewed investor appetite for the country’s risk spurs the market's hopes for more normalised supply this year.

    • 31 Mar 2014
  • Lloyds fuels hope of better year for UK credit cards

    UK credit card ABS issuance has kicked off much earlier this year than last, with Lloyds mandating leads for a new sterling-denominated Penarth platform deal this week.

    • 31 Mar 2014
  • New SolarCity deal expected in April

    SolarCity could hit the market next month with a securitization double the size of its first $54.42m transaction. A strong execution could boost optimism that solar assets are gaining traction from fixed income investors and help boost the company’s shares after a recent slide in its share price.

    • 28 Mar 2014
  • Euro CLO managers unfazed by stubborn triple-As

    CVC Credit Partners priced its first European CLO of the year this week, ensuring the euro primary market’s busiest quarter for years. CLO managers told GlobalCapital they were untroubled by triple-A spreads remaining stubbornly above last year’s levels and just happy to be pricing deals again.

    • 28 Mar 2014
  • US non-bank investors increase CLO buying

    The CLO market proved its resilience to regulatory challenges this week by churning out at least three new deals, with more in the pipeline. But significant challenges are lurking beneath the positive sentiment — the SEC has launched a probe into the product, and some smaller bank investors are nervously eyeing their CLO holdings because of uncertainty around the Volcker Rule.

    • 27 Mar 2014
  • Credit card deals lead in US pipeline, as ABS cools from $6bn week

    Two credit card issuances from JP Morgan’s CHAIT shelf were upsized to strong demand, bringing card volume ahead of last year’s pace, as investors look for relative value and performance continues to improve.

    • 27 Mar 2014
  • Santander targets US investor depth again with third Motor

    Santander Consumer UK will hit the road next week for the third auto loan securitization from its Motor platform, and its lead managers are confident of a wide audience for the trade despite some investors considering spreads in the asset class too rich.

    • 27 Mar 2014
  • Credit card deals lead in US pipeline

    Two credit card issuances from JP Morgan’s CHAIT shelf were upsized to strong demand, bringing card volume ahead of last year’s pace, as investors look for relative value and performance continues to improve.

    • 27 Mar 2014
  • Subprime auto issuers look up the credit curve

    Subprime auto specialists GM Financial and Exeter Finance are building out their operations to focus on higher quality credit, in a potential shift away from the kind of riskier lending that has worried securitization investors in recent months.

    • 27 Mar 2014
  • Rental investors unveil new trade association

    Home rental investors on Wednesday announced a new trade association to represent their interests with the US government, as policy experts begin to study how their role may impact housing and rental markets.

    • 27 Mar 2014
  • Freddie preps latest risk sharing deal amid anaemic supply

    The Federal Home Loan Mortgage Corporation (Freddie Mac) is preparing to announce a nearly $1bn risk sharing issuance with the private market, its fourth effort to shed taxpayer exposure to government guaranteed mortgage debt. News of the deal circulated around markets just as a new government sponsored enterprise (GSE) reform bill was announced in the US Congress.

    • 27 Mar 2014
  • NordLB harvests equity with securitized credit portfolio

    NordLB has placed a securitized tranche of an €11.4bn high quality loan portfolio with institutional investors, releasing between €350m and €400m of equity in the process.

    • 27 Mar 2014
  • DC zones in on alternative loan products

    Installment and peer-to-peer lenders active in the securitization space, such as Springleaf Financial, Progreso Financiero and Social Finance, are watching Washington closely this week for indications of how much support — or scrutiny — to expect from policymakers, as federal agencies and politicians weigh in on the alternative loan debate.

    • 27 Mar 2014
  • MBS investors bypass banks as Dynamic swamped by yield-seekers

    US-headquartered asset manager Dynamic Credit Partners has been inundated with commitments for its new mortgage origination platform in the Netherlands, demonstrating European investors’ willingness to bypass traditional routes for mortgage investments — such as RMBS — in order to boost returns.

    • 27 Mar 2014
  • Russia strengthens ABS backing with consumer repo

    Russian banks will be able to use consumer loan ABS as collateral for repo transactions, the country’s central bank has announced, providing more encouragement to those looking to pioneer such securitizations in the market.

    • 27 Mar 2014
  • Freddie preps latest risk-sharing deal amid anaemic supply

    Freddie Mac is preparing to announce a nearly $1bn risk-sharing issuance with the private market, its fourth effort to shed taxpayer exposure to government-guaranteed mortgage debt. News of the deal hit markets just as a new GSE reform bill was announced in Congress.

    • 27 Mar 2014
  • UK's Aldermore has capacity to soothe RMBS drought

    Aldermore Bank will offer supply-starved RMBS investors a glimpse of a brighter future when it prices its debut transaction next week, and the newcomer has plenty more capacity for securitizations.

    • 27 Mar 2014
  • Volta pulls new investors into Portugal’s electric ABS

    Energias de Portugal was able to better the size of its first electricity tariff deficit securitization by €300m with Volta II this week, as depressed supply in ABS drives investors to quirkier asset classes to deploy cash.

    • 27 Mar 2014
  • MBS investors bypass banks as Dynamic swamped by yield-seekers

    US-headquartered asset manager Dynamic Credit Partners has been inundated with commitments for its new mortgage origination platform in the Netherlands, demonstrating European investors’ willingness to bypass traditional routes for mortgage investments — such as RMBS — in order to boost returns.

    • 27 Mar 2014
  • NordLB harvests equity with securitized credit portfolio

    NordLB has placed a securitized tranche of an €11.4bn high quality loan portfolio with institutional investors, releasing between €350m and €400m of equity in the process.

    • 27 Mar 2014
  • Rental investors unveil new trade association

    Home rental investors on Wednesday announced a new trade association to represent their interests in Washington, as policy experts begin to study how their role may impact housing and rental markets.

    • 27 Mar 2014
  • Manufacturer bankruptcy worries plague solar ABS

    North American solar power provider SolarCity last week reported fourth quarter losses of $55m for 2013, keeping the firm $150m in the red for the year and prompting recommendations to sell from some equity pundits. But bond investors are taking note of plenty of other recent developments in the solar energy market, including a manufacturer’s bankruptcy, which could dampen demand for new solar-backed ABS.

    • 27 Mar 2014
  • Politics hiding behind the technocrats

    Capital requirements ought to be the soft padding that lets the market bounce around without doing any damage. But when they are too high, capital requirements, rather than economics, set the price of a security.

    • 27 Mar 2014
  • US policymakers weigh merits and dangers of alternative loan products

    Installment and peer-to-peer lenders active in the securitization space, such as Springleaf Financial, Progreso Financiero and Social Finance, are watching Washington closely this week for indications of how much support — or scrutiny — to expect from policymakers, as federal agencies and politicians weigh in on the alternative loan debate.

    • 26 Mar 2014
  • Russia strengthens ABS backing with consumer repo

    Russian banks will be able to use consumer loan ABS as collateral for repo transactions, the country’s central bank has announced, providing more encouragement to those looking to pioneer such securitizations in the market.

    • 26 Mar 2014
  • Santander targets US investor depth again with third Motor

    Santander Consumer UK will hit the road next week for the third auto loan securitization from its Motor platform, and its lead managers are confident of a wide audience for the trade despite some investors considering spreads in the asset class too rich.

    • 26 Mar 2014
  • US: GM Financial, Hertz, Colony, APRI market deals after $6bn week

    The pipeline of asset-backed issuance has simmered down after two weeks of nearly $13bn in new supply, which brought year to date volume to $48bn, in line with the $50bn that priced over the same period last year.

    • 25 Mar 2014
  • US: SolarCity in the red, a Chinese provider files for bankruptcy

    North American solar power provider SolarCity last week reported fourth quarter losses of $55m for 2013, keeping the firm $150m in the red for the year and prompting recommendations to sell from some equity pundits. But bond investors are taking note of plenty of other recent developments in the solar energy market, including a manufacturer’s bankruptcy, which could dampen demand for new solar-backed ABS.

    • 25 Mar 2014
  • 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.

    • 25 Mar 2014
  • US: CLOs resist Volcker and SEC headwinds, but some banks selling

    The CLO market is proving its resilience to regulatory challenges this week, with new deals bringing total issuance so far this year to over $20bn. But significant challenges are lurking beneath the positive sentiment — the SEC has launched a probe into the product, and some bank investors are selling their CLO holdings because of uncertainty around the Volcker rule.

    • 25 Mar 2014
  • UK's Aldermore has capacity to soothe RMBS drought

    Aldermore Bank will offer supply-starved RMBS investors a glimpse of a brighter future when it prices its debut transaction next week, and the newcomer has plenty more capacity for securitizations.

    • 25 Mar 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
  • US subprime auto issuers look up the credit curve

    Subprime auto specialists GMFinancial and Exeter Finance are building out their operations to focus on higher quality credit, in a potential shift away from the kind of riskier lending that has worried investors in recent months.

    • 24 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
  • Europe: Volta will size to demand, Aldermore and flow on the way

    Energias de Portugal has released price thoughts for its second Volta electricity receivables securitization well inside the pricing level of its debut transaction. The European ABS pipeline is set to swell this week with a debut RMBS mandate from Aldermore Bank and another flow ABS trade ready to hit the market.

    • 24 Mar 2014
  • UK: Merseylink set to print first GG project bonds

    Merseylink PLC may price the first public project bond to come with a government guarantee this week, after meeting investors for a 29 year bond that will finance a new six lane toll bridge in the North West of England.

    • 24 Mar 2014
  • Securitization breakthrough? Capital charges halved again

    The capital charges for insurers to hold securitizations have been halved again, according to the latest draft of Solvency II circulated privately from March 14.

    • 21 Mar 2014
  • Small banks may not wait for Volcker CLO fix, OCC stands its ground

    Small banks with large holdings of collateralized loan obligations may not wait for a clarification on the Volcker Rule and could start divesting their holdings very soon.

    • 21 Mar 2014
  • EIB supports Belgian greenfield project bond

    The third bond issue to use the European Investment Bank’s project bond credit enhancement was priced on Monday. It will finance the construction of a stretch of highway connecting the Belgian port of Zeebrugge with the motorway network.

    • 20 Mar 2014
  • RMBS to unlock capital for French banks with full cap stacks

    Some of France’s biggest banks are set to give the country’s meagre RMBS market a boost this year as they set up programmes in response to regulator pressure to free up capital for SME lending.

    • 20 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
  • US pipeline healthy with new deals priced, others marketing

    The US pipeline came in strong with over $5bn in new issuance by Thursday, as a number of new deals began marketing for the weeks ahead.

    • 20 Mar 2014
  • Colony Capital follows Blackstone’s lead with $514m single family rental deal

    Colony Capital, one of the largest institutional investors in single family rental properties, is roadshowing a $513.6m securitization that, if successful, could help spur along similar deals. It is the third firm to begin marketing a home rental securitization in recent weeks.

    • 20 Mar 2014
  • UK guarantee for Mersey bridge, HSBC wins Hinkley

    Electricité de France has mandated HSBC as adviser on its project financing for the new Hinkley Point nuclear power station in Somerset, which it plans to finance using the UK government’s infrastructure guarantee.

    • 20 Mar 2014
  • Unilever brings green bonds to sterling, and to industrial sector

    Unilever launched its first green bond this week, and priced the issue 1bp through its own curve, bankers estimated.

    • 20 Mar 2014
  • ‘Brand new’ demand for Italian structured credit drives Reni CMBS

    Reni SPV Srl, a fixed rate Italian retail CMBS placed by BNP Paribas this week, has again demonstrated the kind of appetite for Italian ABS paper that has bankers hoping for stronger public issuance from the sector this year.

    • 20 Mar 2014
  • Gatwick raises £350m bond to pay off last takeover loans

    Gatwick Airport, London’s second airport, launched its fifth bond on Thursday, raising £350m to repay the last of the bank debt at its secured funding vehicle. The deal is part of a wider refinancing.

    • 20 Mar 2014
  • US bank withdrawal broadens scope for CLO structures

    The US CLO market continued its recent run of good form this week, despite continued uncertainty over whether bank investors will be given relief from the Volcker rule. The exit of some of those buyers could inspire structures that cater to non-bank investors, said market participants.

    • 20 Mar 2014
  • Canadian card issuance supplements US investor appetite

    US investors snatched up $1bn of a Canadian credit card ABS offered by Royal Bank of Canada on Wednesday, providing welcome supply to a parched market.

    • 20 Mar 2014
  • Europe too expensive for strong Aussie RMBS

    Australian RMBS arrears are at historically low levels, and Deutsche Bank analysts are expecting another robust year for supply and credit performance from the sector. But swap costs are stopping European markets benefiting from new Australian issuance.

    • 20 Mar 2014
  • Ratings agencies warn on Spanish SME and real estate ABS

    Spain’s attempt to make it easier for companies to avoid liquidation will add uncertainty to recovery expectations on corporate and SME loans, according to Fitch Ratings. Moody’s, meanwhile, sees no improvement in Spanish SME collateral performance this year because of the high insolvency rate.

    • 20 Mar 2014
  • Russian RMBS boosted by Petrocommerce, Vozrozhdenie

    Russia’s Bank Petrocommerce sold its first RMBS deal this week, and compatriot Bank Vozrozhdenie is set to follow with its third. As more private investors enter the market, issuance in Russia is expected to pick up this year.

    • 20 Mar 2014
  • Real estate collateral rules to hit Italian lenders

    Italian banks’ real estate-heavy loan books mean they are particularly susceptible to a European Central Bank requirement to mark to market loan collateral as part of its asset quality review, according to Moody’s.

    • 20 Mar 2014
  • Natixis set for Beaugrenelle syndication after mall refi

    Natixis could syndicate the debt tied to the Beaugrenelle shopping mall in Paris as early as next month, after completing the refinancing of 12 French shopping malls owned by CBRE Global Investors’ retail fund.

    • 20 Mar 2014
  • Endesa among candidates for Spanish electricity deficit deals

    Endesa is among the candidates to revive the supply of Spanish electricity tariff receivables securitizations, despite concern from Fitch Ratings that the level of tariff deficit generated by the electricity system in Spain has become less sustainable.

    • 20 Mar 2014
  • US bank withdrawal broadens scope for CLO structures

    The US CLO market continued its recent run of good form this week, despite continued uncertainty over whether bank investors will be given relief from the Volcker rule. The exit of some of those buyers could inspire structures that cater to non-bank investors, say market participants.

    • 20 Mar 2014
  • Asset managers poised to cut private mortgage holdings

    Hedge funds and other fast money firms are seeing a weakening bid for private-label RMBS paper, as real money accounts at asset managers prepare to rebalance their holdings of the assets.

    • 19 Mar 2014
  • Oaktree preps second biggest REO/NPL issuance in a year

    Oaktree Capital Management is marketing a BBB- rated securitization, which will be the second largest issuance of non-performing loans and real estate owned (REO) properties since January 2013. Oaktree is one of several non-banks and alternative asset-managers offloading such assets through securitization markets.

    • 19 Mar 2014
  • American Homes 4 Rent promises deal ‘within 60 days’

    American Homes 4 Rent, the country’s second largest institutional owner of single family rental properties, is promising investors a securitization deal within 60 days. A successful transaction could help spur other issuers to access the market and would secure fresh capital for the firm, allowing it to resume new acquisitions at full pace.

    • 19 Mar 2014
  • Cabela’s sells its first deal in 2014 amid healthy card performance

    Credit card securitization performance is showing healthy signs of improvement and a slowly increasing pace of issuance, with card deals such as Cabela’s latest $255m deal continuing to provide fixed-income investors a consistent and safe buy for their books, according to credit analysts’ assessments.

    • 19 Mar 2014
  • HSBC advises on Hinkley Point, brings Mersey bridge bond

    Electricité de France has mandated HSBC as adviser on its project financing for the new Hinkley Point nuclear power station in Somerset, which it plans to finance using the UK government’s infrastructure guarantee.

    • 19 Mar 2014
  • Unilever prices £250m debut green bond through its curve

    Unilever launched its first green bond today, and priced the £250m issue 1bp through its own curve, bankers estimated. The deal found a strong reception, with £850m of demand, of which about two thirds came from investors managing funds with socially responsible mandates.

    • 19 Mar 2014
  • Europe too expensive for strong Aussie RMBS

    Australian RMBS arrears are at historically low levels and Deutsche Bank analysts are expecting another robust year for supply and credit performance from the sector. But swap costs are stopping European markets benefitting from new Aussie issuance.

    • 19 Mar 2014
  • Russian RMBS boosted as Vozrozhdenie registers for more

    Russia’s Bank Vozrozhdenie has registered to sell what would be its third domestic RMBS deal, with issuance in the country expected to pick up this year as more private investors enter the market.

    • 19 Mar 2014
  • Peripheral seniors take centre stage in FIG

    It hasn’t been as turbulent a week in the FIG market as some thought it might, but then again, the week isn’t over.

    • 19 Mar 2014
  • Oaktree preps second biggest REO/NPL issuance in a year

    Oaktree Capital Management is marketing a BBB- rated securitization which will be the second largest issuance of non-performing loans and real-estate-owned (REO) properties since January 2013. Oaktree is one of several non-banks and alternative asset-managers offloading such assets through securitization markets.

    • 18 Mar 2014
  • US pipeline healthy as Springleaf prepares to price

    The US pipeline is looking comfortable after last week’s $6.8bn of supply, with Springleaf Financial looking to price its new consumer loan ABS and Redwood Trust releasing presales for a new RMBS.

    • 18 Mar 2014
  • Mortgage bankers move out of Carrington

    An entire team at Carrington Holding Company has left the firm, which has been trying to straddle both the buy and sell-side of the distressed mortgage markets.

    • 18 Mar 2014
  • Perth Airport pulls sterling bond debut, issues in A$ instead

    Australia’s Perth Airport has abandoned its attempt to issue its first sterling bond, after investors demanded more spread for its sub-benchmark size than the company was willing to pay.

    • 18 Mar 2014
  • Ratings agencies warn on Spanish SME and real estate ABS

    Spain’s attempt to make it easier for companies to avoid liquidation will add uncertainty to recovery expectations on corporate and SME loans, according to Fitch Ratings. Moody’s, meanwhile, sees no improvement in Spanish SME collateral performance this year because of the high insolvency rate.

    • 18 Mar 2014
  • ‘Renewed periphery demand’ drives Reni CMBS

    Reni SPV Srl, a fixed-rate Italian retail CMBS placed by BNP Paribas, has again demonstrated the kind of appetite for Italian ABS paper that has bankers hoping for a little more public issuance from the sector this year.

    • 18 Mar 2014
  • US: CLO issuance slows after bumper month as market waits for regulators

    The US CLO market is cooling down after four busy weeks, as participants wait for regulators to provide guidance on possible changes to the Volcker rule to stop banks from having to sell their investments in certain CLOs. The pressure is now on, after the House Financial Services Committee overwhelmingly voted to protect banks from the rule.

    • 17 Mar 2014
  • American Homes 4 Rent promises single family rental deal ‘within 60 days’

    American Homes 4 Rent, the country’s second largest institutional owner of single family rental properties, is promising investors a securitization deal within 60 days. A successful transaction could help spur other issuers to access the market and would secure fresh capital for the firm, allowing it to resume new acquisitions at full pace.

    • 17 Mar 2014
  • Belgian greenfield project bond for €578m uses EIB enhancement

    The third bond issue was priced today using the European Investment Bank’s project bond credit enhancement – this time to finance the construction of a stretch of highway near Zeebrugge in Belgium.

    • 17 Mar 2014
  • US: Asset managers poised to cut private mortgage holdings

    Hedge funds and other fast money firms are seeing a weakening bid from real money accounts for private-label RMBS paper, having already generated strong carry and price returns from the asset class. And as the market begins to cool, real money accounts are preparing to rebalance their holdings of these assets.

    • 17 Mar 2014
  • Cartesian reveals strong bid for Dutch mezz

    Traditional Dutch RMBS investors embraced rare mezzanine tranches in Venn Partners’ Cartesian Residential Mortgages 1 transaction, which was priced on Friday through the firm's new lending platform, Ember VRM.

    • 17 Mar 2014
  • Real estate collateral rules to hit Italian lenders

    Italian banks’ real estate-heavy loan books mean they are particularly susceptible to a European Central Bank requirement to mark to market loan collateral as part of its asset quality review, according to Moody’s.

    • 17 Mar 2014
  • Clydesdale feeds €300m to starving euro buyers

    Investors finally got their hands on some UK RMBS paper in euros on Friday as Clydesdale Bank priced £600m equivalent across two tranches in the latest deal from its Lanark platform.

    • 14 Mar 2014
  • US: Fast money sellers see demand, but buyers show less risk-taking

    Fast money accounts are still seeing strong demand for lists of mortgage-backed securities offloaded in the secondary market, but there are signs that the transfer of this paper to real money managers may have run its course, according to market participants.

    • 14 Mar 2014
  • Europe: S&P alters Skellig ratings after CLO default warning

    Standard & Poor’s has downgraded the lowest-rated tranche of the amortising €425m Skellig Rock CLO. The move comes after the ratings agency warned earlier this week that it anticipated a “steady stream” of CLO loan defaults in Europe this year.

    • 14 Mar 2014
  • Europe: S&P alters Skellig ratings after CLO default warning

    Standard & Poor’s has downgraded the lowest-rated tranche of the amortising €425m Skellig Rock CLO. The move comes after the ratings agency warned earlier this week that it anticipated a “steady stream” of CLO loan defaults in Europe this year.

    • 14 Mar 2014
  • Babson, GSO CLOs strong in defiance of US value

    Blackstone’s credit arm, GSO Capital Partners, will look to emulate the demand garnered by Babson Capital this week after releasing the structure for its first euro CLO of the year. Bankers feel the European market is in fine shape despite some investors seeing better relative value in the US market.

    • 14 Mar 2014
  • EDP prepares second Volta electricity securitization

    Energias de Portugal will this month return to the asset class it pioneered in Portugal last year, after mandating leads for the second transaction from its fledgling Volta platform.

    • 14 Mar 2014
  • S&P sees stream of CLO defaults in Europe

    Standard & Poor’s is anticipating a “steady stream” of CLO portfolio loan defaults through the remainder of this year as pre-crisis vintages exit their reinvestment periods, even as improving economies and investor appetite for corporate debt boosts credit quality.

    • 14 Mar 2014
  • Springleaf markets $367m consumer loan ABS

    The recently restructured Springleaf Financial, of which Fortress Investment Group is a majority shareholder, is preparing its fourth sale of bonds backed by secured and unsecured consumer loans since January last year, evidence of the firm's move away from its mortgage business and into the small dollar consumer credit market.

    • 14 Mar 2014
  • Aegon impresses with bumper Saecure as prime RMBS returns

    Aegon drew praise from rival bankers for the size of its latest Saecure transaction this week, with prime RMBS trades from Venn Partners and Clydesdale Bank still to come to relieve investors that have been starved of supply so far this year.

    • 14 Mar 2014
  • Fizzing CLO market crashes Volcker lobbyists’ party

    Ten billion dollars of new US collateralised loan obligations have torpedoed banks’ case for an exemption in the Volcker Rule to prevent them having to sell off their holdings of the structured product. The argument that uncertainty over the rule’s impact is strangling the credit market appears significantly weakened after the busiest four week period for CLO sales since before the financial crisis, write Matthew Scully and Will Caiger-Smith.

    • 14 Mar 2014
  • Don’t pretend green can be standardised

    The launch of the first green bond index is a coup for Solactive and the Climate Bonds Initiative, though neither of them has put an enormous amount of work into it.

    • 13 Mar 2014
  • Private label RMBS biggest loser from GSE reforms

    While pundits have quickly dismissed any chance of legislation to wind down Fannie Mae and Freddie Mac moving forward any time soon, market participants have been quick to scour the proposal to assess how certain interests are faring in Washington. While builders and bankers may be revelling at certain aspects of the proposal, private-label RMBS issuers may be the biggest losers, according to a top securitization banker.

    • 13 Mar 2014
  • First green bond index offers definition of market

    Solactive, the German index provider, has launched the first index of green bonds — the fast-growing category of bonds with proceeds earmarked for specifically enviromental uses. The initiative was welcomed by some market participants as a move that could raise the profile of green investment and help fund managers. But it is also the first formal delineation of the green bond market — an issue that could prove controversial, writes Jon Hay.

    • 13 Mar 2014
  • Green shoots as spring thaw floods US market with $6bn in new ABS

    A green auto ABS from Toyota Financial Services was the highlight of $6bn of securitizations in the US in one of the biggest weeks of new issuance so far this year. Market participants hope that the Toyota deal will be followed by more green ABS as the sector gains traction.

    • 13 Mar 2014
  • Springleaf markets $367m consumer loan ABS

    The recently restructured Springleaf Financial, of which Fortress Investment Group is a majority shareholder, is preparing its fourth sale of bonds backed by secured and unsecured consumer loans since January last year, evidence of the firm's move away from its mortgage business and into the small dollar consumer credit market.

    • 13 Mar 2014
  • Subprime issuers look for opportunity amid consistent investor demand

    Investors remain committed to the subprime auto sector despite its deteriorating performance over the past year, and issuers are taking advantage of that demand, panelists at a conference hosted by Standard & Poor’s said on Tuesday.

    • 13 Mar 2014
  • When there’s blood on the Street, buy MSRs

    Regional banks and private equity firms smell blood in the air amid negative headwinds for non-bank mortgage servicers, and they're pouncing on the chance to compete for lucrative mortgage servicing rights sold by the largest banks.

    • 13 Mar 2014
  • First Green Bond Index offers market definition, Unilever preps deal

    Solactive, the German index provider, has launched the first index of green bonds – the fast-growing category of bonds with proceeds earmarked for specifically enviromental uses.

    • 13 Mar 2014