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GC Asia
Securitization - Article Archive
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Moody’s Analytics to hire two researchers for SF Portal
Moody’s Analytics is looking for two full time researchers to create research papers and webinars showcasing data from its Structured Finance Portal, which was initially focused just on CLOs but is growing into ABS and RMBS — a process which will be sped up by Moody’s Corporation’s acquisition of data provider Lewtan.
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Serone partner joins DB in CRE special situations
A former Serone Capital Management partner and seasoned structured credit professional has joined Deutsche Bank’s special situations group.
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Bank of the West to launch its first auto ABS
Bank of the West is planning its inaugural auto securitization, expected to launch next week along with the latest deal by CarMax. Both deals are expected to be fully subscribed if they price in the range of recent issuance.
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Telos prices sixth CLO of year, Covenant prices second ever
Telos Asset Management has priced its sixth CLO of the year, and has around $225m in a warehouse for its next, according to pricing sheets. Meanwhile, Covenant Credit Partners is busy ramping its second CLO, having priced on Wednesday.
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Offshore servicing could cause RMBS hiccups
RMBS backed by mortgages serviced offshore could end up with performance problems due to high turnover among oversees employees inexperienced in dealing with unique borrower queries or complaints, according to a ratings agency report. The report cites loans serviced by Ocwen, CitiMortgage, JP Morgan and Bank of America, among others.
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Wide Bay swells wave of A$ supply as Bluestone prices pre-crisis RMBS
Bluestone Group has securitized a second diverse pool of pre-crisis Australian mortgage loans, offering investors eight tranches of bonds rated as low as single-B, while Queensland-based building society Wide Bay Australia is yet to price its prime RMBS in a busy week for the Australian dollar market.
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Trafigura ABS issuance to remain rare despite increased reach
Commodities trading and logistics firm Trafigura Group found demand in both the US and Europe for its third trade receivables ABS, which settled this week. But despite attracting six new investors to the rare asset class, Trafigura’s issuance is likely to remain restrained, the firm’s global head of corporate finance told GlobalCapital.
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Moody’s rates 1st warehouse since crisis era
Moody’s has said certain structural features can protect against asset quality and operational risks to enable high investment grade ratings for warehouse securitizations, after the ratings agency awarded its first public rating of such a facility since the financial crisis to a UK vehicle this week.
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BayernLB stuns with everything-must-go sale
BayernLB managed to bring secondary ABS trading in Europe to an abrupt halt this week as dealers and investors awaited the sale of all €6.5bn of its remaining ABS portfolio. Once the dust had settled the German Landesbank said it had exceeded its price target, while ABS bankers scrambled for pricing details and suspected the trade may not have gone ahead without the ECB’s recent backing of the asset class.
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UK RMBS pipeline bulging as Paragon waits to price
Paragon Mortgages will wait until next week to price its latest buy-to-let RMBS transaction after putting out initial price thoughts on Thursday. The deal could signal the start of a run of UK RMBS, with a further three potential transactions being prepared for sale in a sterling market looking to get back on track after a recent wobble in both primary and secondary.
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LeasePlan to print the first Dutch auto ABS in 2 years
LeasePlan may price its sixth Bumper Finance car lease ABS next week. It would be the first Dutch auto ABS offered to investors in the primary market since 2012.
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ABS investors plead for rethink on cashflow model regulations
A group of ABS investors has been trying to persuade European lawmakers to object to the dropping of issuer-supplied cashflow models from incoming regulation, before what they thought was a Thursday deadline.
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Hawaii says aloha to Goldman on green energy securitization
The State of Hawaii has gained preliminary ratings for a $150m securitization which will finance loans for clean energy technologies for low and moderate income homeowners, renters and non-profit organisations in Hawaii.
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ECB hires four asset managers for November ABS purchases
The European Central Bank has named the four asset managers it has hired to scour the European ABS market for buying opportunities, and has said it will start purchasing bonds in November as it attempts to expand its balance sheet by up to €1tr.
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UK RMBS pipeline bulging as Paragon guides
Paragon Mortgages will wait until next week to price its latest buy-to-let RMBS transaction after putting out initial price thoughts on Thursday. The deal could signal the start of a run of UK RMBS with a further three potential transactions being prepared for sale.
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BayernLB ‘exceeds price target’ on ABS sale
BayernLB managed to beat the price target it set for the sale of its entire €6.5bn ABS portfolio on Tuesday, selling the assets to mainly US and Swiss banks and ending its guarantee agreement with the Bavarian state ahead of time.
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VW tightens curve with Private Driver
Volkswagen Bank has priced its fourth Private Driver auto ABS transaction of the year well inside its last publicly offered effort.
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JPMorgan Chase tweaks agency risk sharing structure
JPMorgan Chase's first foray into agency risk sharing issuance makes slight adjustments to the template set by Freddie Mac's STACR deals and Fannie Mae's CAS transactions. Investors have been quick to purchase recent risk sharing deals because of a structure that limits losses when mortgages become delinquent.
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MBS resilient to end of QE3 and eventual rate hikes
The US mortgage-backed securities market should not be overly affected by the Federal Reserve's decision to end its asset purchase programme, said analysts this week, adding that when the Fed eventually raises interest rates, recent regulation could in fact offset declines in MBS issuance.
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Monroe seeks retention ‘holy grail’ with first broadly-syndicated CLO
Monroe Capital, which recently sold the first US middle market CLO to comply with European risk retention rules, is searching for ways to make its first broadly syndicated CLO compliant not just with European risk retention rules but also the US version of the rules, which was finalised last week.
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BayernLB's giant ABS liquidation result ‘positive’
BayernLB’s everything-must-go sale of its remaining €6.5bn of ABS holdings appears to have been met with a strong response from buyers, bankers said on Wednesday.
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Aussie wave swells with Wide Bay
Queensland-based building society Wide Bay Australia has added to a busy week for Australian ABS by releasing price thoughts on an A$300m prime RMBS transaction.
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Paragon looks for sterling strength in buy-to-let
Paragon Mortgages has mandated banks for its 21st RMBS transaction and could price the deal as early as Friday, as it looks to get the sterling denominated market back on track after a recent wobble in both primary and secondary.
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FIG market ready for post-AQR supply
Conditions look ripe for FIG issuance after the results of the comprehensive assessment on Sunday — syndicate bankers have picked additional tier one, in particular, as the asset class to keep an eye on in November — and supply looks set to pick up once blackout periods end and a first borrower takes the plunge and hits the market.
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Wyndham guidance comes amid high demand for timeshare ABS
Pricing guidance was released for Wyndham’s latest timeshare ABS deal on Tuesday, as hotel operators continue to take advantage of cheap financing with new timeshare deals.
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Navistar ABS faces risk from parent
Navistar Financial’s first dealer floorplan ABS of 2014 which was priced this week could be hampered if financial troubles worsen at the issuer’s parent, truck and engine firm Navistar International Corporation.
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Crestline and Citizens look to CLO market
Texas-based hedge fund sponsor Crestline Investors has joined forces with loan investor Denali Capital to create a CLO platform and has already set the ball rolling for its first deal. Meanwhile, Citizens Financial Group is also looking at bringing a CLO.
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Increase in crude oil transport could offset regs effect on railcar ABS
An increase in the transport of crude oil by rail and a proposal to tighten regulations around high-hazard train tank construction in the US should help avoid tank railcar concentration among recent railcar securitizations and keep credit quality on track, according to a new report by Standard & Poor’s.
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ABS investors plead for Article 8b rethink as deadline looms
A group of ABS investors is trying to persuade European lawmakers to object to the European Securities and Markets Authority’s (ESMA) decision to drop a requirement for issuer supplied cash flow models from incoming regulation, before the window for doing so closes on Thursday.
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Senvion’s London IPO to follow €500m bond sale
India’s Suzlon Energy intends to list a 25% stake in its German unit Senvion SE on the London Stock Exchange, if the placement of a €500m bond goes ahead by year end, group chairman Tulsi Tanti said in a press interview in Mumbai.
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LeasePlan to bring Netherlands’ first auto ABS for over two years
LeasePlan could price its sixth Bumper Finance car lease ABS next week. It would be the first Dutch auto ABS offered to investors in the primary market since 2012.
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Weaker collateral in latest Invitation Homes rental deal
Blackstone's Invitation Homes has secured preliminary triple-A ratings from Kroll and Morningstar for its third single-family rental securitization of the year, despite concerns over the deal's high leverage and low incomes from the rental properties in the portfolio.
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Specialty finance companies bear brunt of GM probe fallout
Investigations and increased scrutiny in the subprime auto lending sector have made it harder for speciality finance companies to launch new securitizations, an ABS syndicate head at a global investment bank told GlobalCapital this week.
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Lewtan could help Moody’s Analytics grow in RMBS, Europe
Moody’s Corporation has acquired Lewtan Technologies, a Massachuesetts firm which could help Moody’s Analytics’ expand its presence into residential mortgage-backed securities and the European securitization market.
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Market moving BWICs hit ABS, Italians firm
The major ABS dealers were being kept busy preparing a single bids wanted in competition (BWIC) offering of around €3bn on Monday, which includes everything from CMBS to UK prime RMBS. Traders said the potential impact of the sale would keep many investors quiet in the next couple of sessions, but notes that Italian ABS was not coming under much pressure despite a poor showing from a number of issuers in the European stress tests.
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Bluestone back with pre-crisis Aussie RMBS
Australian mortgage provider Bluestone Group is set to securitize a second diverse pool of pre-crisis Australian mortgage loans this week, having offered investors eight tranches of bonds rated as low as single-B, while Macquarie Leasing is also sounding out investors for its third auto ABS of the year.
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Altisource SFR ABS could be victim of Ocwen fallout
Altisource Residential (Resi) is believed to be on pace to acquire enough single-family rental properties to issue its first securitization early next year. But the latest Ocwen Financial investigation could derail those plans.
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Stockland successfully places Australia’s first green bond, but no blowout
Stockland, one of Australia’s largest property developers, on Thursday launched the first green bond from an Australian issuer. The €300m bond, rated A-, was sold into a European market that had recovered well from a bout of turbulence last week, and was fully placed with high quality investors. But it was no blowout.
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Immediate manager tiering in store as risk retention hits CLOs
Recent spread volatility in the US CLO market calmed down this week, with several deals pricing back around the 150bp mark over Libor. Issuance is expected to continue to increase as managers try to lock in assets under management before risk retention rules come into effect in late 2016 — but the rules could force smaller managers out of business and cause serious legal headaches for those that remain.
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Hotels tap cheap financing with timeshare ABS
Timeshare ABS issuance has picked up as hotel operators have taken advantage of cheap funding. But some investors think spreads have got too narrow for timeshare-backed notes because macroeconomic factors could make it more difficult for operators to manage and sell timeshare properties.
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This was never about ABS — the ECB is rudderless
The European Central Bank put a lot of effort into telling everyone securitization’s direct link to the real economy was the reason it deserved to be the principal target of asset purchases. Now that illusion has been shattered by reports it is considering corporate bond purchases, the ECB should just get on with the broad-based cash injection it clearly intends.
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EIB backs ABS guarantees to spark wider SME lending
The European Investment Bank has said public sector guarantees could kick start ABS volumes in Europe and potentially double the size of the market, which it said was critical to improve small and medium-sized lending in some countries where SME ABS is “non-existent”.
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Stockland first Aussie green bond no blowout
Stockland, one of Australia’s largest property developers, on Thursday launched the first green bond from an Australian issuer. The €300m bond, rated A-, was sold into a European market that had recovered well from a bout of turbulence last week and was fully placed with high quality investors. But it was no blowout.
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Ford’s demand untouched by volatility, spreads drop
Ford Credit Europe Bank’s second Globaldrive German auto ABS of the year was priced this week with a similar level of demand to its first, and at lower spreads, as secondary trading in the European ABS market remained cautious.
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Euros in vogue with sterling in the wings
More euro-denominated transactions are ready to hit the European ABS pipeline this month, but drawing out sterling transactions is proving a tougher assignment for syndicate teams who are battling against well funded issuers and anticipation of European Central Bank purchases.
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ECB tightening may hit ABS participation
More investors than ever before expect securitization volumes to rise in the next 12 months, according to Fitch's latest quarterly investor poll. But active ABS investors are concerned that the spread tightening attributed to the European Central Bank’s impending purchases will render returns in the asset class insufficient to grow or even maintain investor participation.
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No single-As from SCF but mezz on table
Santander Consumer Bank’s Finnish arm decided against selling its first ever single-A rated Class C bonds this week, but the issuer joined Ford in the primary market during a week of cautious secondary trading.
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EIB backs ‘catalytic’ guarantees for ABS
The European Investment Bank has said public sector guarantees could have a catalytic effect on ABS volumes in Europe and potentially double the size of the market, which it said was critical to improve small and medium-sized lending in some countries where SME ABS is “non-existent”.
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ABS purchases to leave ECB with ‘minimal credit risk’
The European Central Bank’s focus on senior ABS tranches for its purchase programme means it will be taking on “minimal” credit risk, according to figures from Fitch, while the ratings agency also rejected the idea that the programme would lead to looser lending practices in Europe.
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Multi-borrower SFR ABS held up
Market participants including Colony American Finance have been talking about the first multi-borrower single family rental securitizations for months. But operational complexities could hold the asset class’s debut back even longer.
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RMBS holders should prepare for Ocwen ‘worst case’
Allegations made by New York financial watchdog Benjamin Lawsky that loan servicer Ocwen Financial backdated thousands of letters to borrowers, preventing them from appealing denials of loan modifications, could lead to increased servicing disruption and significant costs for residential mortgage-backed security (RMBS) investors, said analysts on Wednesday.
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Jumbo deals weather regulatory storm
JP Morgan and Citi announced jumbo RMBS deals this week, bucking a trend in which many would-be issuers have opted to retain jumbos on balance sheet rather than launch securitizations.
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Ford demand unscathed by volatility, spreads drop
Ford Credit Europe Bank’s second Globaldrive German auto ABS of the year was priced on Wednesday with a similar level of demand to its first and at lower spreads, as secondary trading in the European ABS market remained cautious.
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ECB tightening will hit ABS participation, say investors
More investors than ever before expect securitization volumes to rise in the next 12 months, according to Fitch's latest quarterly investor poll. But active ABS investors are concerned that the spread tightening attributed to the European Central Bank’s impending purchases will render returns in the asset class insufficient to grow or even maintain investor participation.
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FIG returns to life ahead of AQR
Activity in the FIG market picked up on Wednesday after a sluggish start to the week, with Goldman Sachs and Wells Fargo both announcing euro denominated trades. The issuers are likely to benefit from improved sentiment compared to earlier in the week and a dearth of supply from European issuers ahead of the results of the Asset Quality Review and stress tests, which will be released on Sunday.
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Private student loan ABS still dragging
Student loan ABS issuance has declined in recent years as underwriting standards have improved, and the majority of deals that have come to market have been backed by federal student loans under the defunct Federal Family Education Loan Program (FFELP). Issuance could continue to drag for a while yet, according to Standard & Poor's.
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Arranger risk retention ‘a unicorn’ says LSTA exec
A secondary option for risk retention in collateralised loan obligations, proposed by the FDIC in the final version of the Dodd-Frank rules on Tuesday, has been dismissed as “completely unworkable” by a senior executive at the Loan Syndications and Trading Association.
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Auto ABS hit by risk retention paradox
New risk retention rules, which will require securitization sponsors to retain a 5% stake in new issuances, could impact auto ABS deals more than mortgage-backed ones. The rules, mandated by Dodd-Frank in response to the financial crisis, were finalised by the FDIC on Tuesday — but some observers say they will penalise the wrong asset class.
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This was never about ABS — the ECB is rudderless
The European Central Bank put a lot of effort into telling everyone securitization’s direct link to the real economy was the reason it deserved to be the principal target of asset purchases. Now that illusion has been shattered by reports it is considering corporate bond purchases, the ECB should just get on with the broad-based cash injection it clearly intends.
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No Santander single-As despite solid demand
Santander Consumer Bank’s Finnish arm has decided against selling a small tranche of single-A rated Class C bonds in its third auto ABS transaction.
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Scope builds ABS team, sets up shop in covered
Scope Ratings has hired two directors from rival ratings agencies to join its structured finance team, as well as expanding into covered bond ratings.
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Correction coming for non-bank mortgage originators
The Federal Housing Finance Agency's plans to open up credit in the mortgage market were welcomed by banks and investors yesterday, but non-bank mortgage originators could still be in trouble.
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New reps and warranties for STACR deals
Clarifications on representations and warranties of mortgages purchased by Fannie Mae and Freddie Mac could apply to the agencies’ risk-sharing deals, a Freddie Mac spokesperson told GlobalCapital following comments by Federal Housing Finance Agency director Melvin Watt on Monday.
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New York P2P investor plans Prosper loan securitization
Blue Elephant Capital Management, an investment manager that acquires loans from marketplace lending platforms, expects to print its first securitization of loans made by peer-to-peer lender Prosper within the next couple of months. Eaglewood Capital, a similar firm to Blue Elephant, today closed its second securitization of Lending Club loans.
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Prudential first to back Swansea Bay tidal lagoon
Prudential, the UK insurance company, has become the first investor to commit construction funding for a tidal power project off the Welsh coast.
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Euros in favour as sterling issuers bide time
More euro-denominated transactions are ready to hit the European ABS pipeline this month, but drawing out sterling transactions is proving a tougher assignment for syndicate teams who are battling against well funded issuers and anticipation of European Central Bank purchases.
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ABS primary shrugs off widening as SCB Finland mulls mezz
Santander Consumer Bank’s Finnish arm could sell Class C auto ABS bonds for the first time on Tuesday, undeterred by a widening across European ABS last week as the market opened with a stronger tone on Monday morning.
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GSE plan could resurrect RMBS
More agency RMBS could be coming to the market if an agreement between Fannie Mae, Freddie Mac and mortgage lenders to clarify liabilities and relax the government sponsored enterprises’ mortgage purchasing standards is reached as expected. The agreement comes as Freddie Mac prepares two new risk-sharing deals.
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Eaglewood brings P2P deal as institutions reach for sector’s yields
Eaglewood Capital, a boutique investment firm focused on securitizing peer-to-peer loans, is about to close its second securitization of consumer loans originated by Lending Club.
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CircleBack beefs up staff
Online consumer lending platform CircleBack Lending, which has teamed up with Jefferies to securitize up to $500m of the loans it originates, is “aggressively” expanding its staff to deal with increased business.
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Navient rebuffs servicing concerns on student loan ABS
Navient Corp’s latest private student loan ABS issuance, which settles next week, comes amid regulatory criticism over poor servicing in the industry. But the Sallie Mae spin-off disclosed improved private loan performance on Wednesday and rebuffed assertions that borrowers were unable to refinance their loans.
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Weary Punch bondholders hit by ratings
Punch Taverns’ bondholders had only just finished celebrating the culmination of the pub group’s seemingly endless securitization restructuring saga, when late last week Fitch and Standard & Poor’s delivered another blow by assigning much lower ratings than Moody’s to several tranches.
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CLO managers forced to ‘bite bullet’ at wider levels
Continued spread pressure in the US CLO market has forced managers completing deals in the past two weeks or so to swallow higher spreads to get their deals over the line, with many hoping they can take advantage of softness in the underlying leveraged loan market to make up for the wider print.
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EBA calls for big rethink on ABS regs with ‘high quality’ vision
The European Banking Authority has called for a systematic review of the “entire regulatory framework applicable to securitizations” to better align its treatment with other asset classes, alongside proposing the first concrete definition of a ‘qualifying’ securitization.
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Yorkshire pushes RMBS through volatility
Yorkshire Building Society is preparing to price its first RMBS transaction of the year on Friday morning at the end of a torrid week of secondary trading that has sent comps for the deal bouncing around in a 10bp range.
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Sentiment dive fails to sink ABN Amro’s Dolphin
ABN Amro priced its €500m five year Dolphin RMBS at the tight end of guidance on Wednesday morning, demonstrating the relative resilience of core ABS to a broader market slump and placing the trade directly between recent prints from Dutch rivals Aegon and Obvion.
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Ford takes up auto primary challenge
With not enough bonds to go around and the European Central Bank throwing money at their asset class, Europe’s ABS issuers have had precious little to worry about in the primary market of late. But the market widened across the board this week amid a sharp global sell-off, and, as a result, Ford Credit Europe Bank will face a tougher market for its Globaldrive German auto ABS transaction next week.
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JP Morgan to sell on crisis-era UK RMBS
JP Morgan is at the head of a consortium that has acquired a £2.7bn portfolio of legacy performing UK residential mortgages from the UK government’s bad bank, and has structured the assets into two RMBS transactions to syndicate to investors.
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FGA Capital’s auto success fuels hopes for more mezz
FGA Capital demonstrated strong appetite for Italian mezzanine debt this week, selling €22.5m of single-A rated bonds well inside guidance and fuelling hopes that more issuers can gain capital relief from selling subordinated notes.
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ECB to appoint multiple PMs, grow headcount 10-20 for ABS purchases
The European Central Bank intends to appoint more than one external portfolio manager to scan the market for ABS transactions to buy, while its asset purchase programme will add between 10 and 20 to its headcount overall, GlobalCapital understands.
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EBA calls for big rethink on ABS regs with ‘high quality’ vision
The European Banking Authority has called for a systematic review of the “entire regulatory framework applicable to securitizations” to better align its treatment with other asset classes, alongside proposing the first concrete definition of a ‘qualifying’ securitization.
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Exeter subprime faces used car plummet
Non-bank auto finance company Exeter Finance Corp issued a $500m subprime auto ABS deal on Wednesday amid turmoil in US markets and steady criticism over subprime auto financing.
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Five Oaks looks to launch own shelf
Five Oaks Investment Corp. plans to acquire more jumbo mortgages and aspires to launch its own RMBS shelf by the end of next year, following the completion of the company’s first securitization last week.
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American Capital continues transatlantic strategy with new CLO
American Capital, which earlier this year brought one of the first US collateralised loan obligations to comply with European risk retention rules, is aiming to replicate the success of that deal with a new CLO it announced this week.
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A-BEST mezz tightening encouraging for Italian issuers
FGA Capital, Fiat's car finance joint venture with Crédit Agricole, sold €22.5m of single-A rated bonds well inside guidance on Wednesday. Bankers away from the trade said that was a good indication of demand for mezzanine debt from Italy, which the European Central Bank hopes will increase as it backs the securitization market.
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Sentiment slump fails to down tight-end Dolphin
ABN Amro priced its €500m five year Dolphin RMBS at the tight end of guidance on Wednesday morning, demonstrating the continued resilience of core ABS to a broader market slump and placing the trade directly between recent prints from Dutch rivals Aegon and Obvion.
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JPM combines debt syndicate, O’Grady and LoBue to co-head
JP Morgan is bringing all of its fixed income syndicate teams together under new global co-heads Ryan O’Grady and Bob LoBue.
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Nomura loses credit sales chief
Nomura’s head of leveraged credit sales has left the bank’s New York office.
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Longer loans for Volkswagen's $1bn auto ABS
Volkswagen’s $1bn prime auto ABS deal received triple-A ratings from Standard & Poor’s Rating Services and Fitch Ratings on Tuesday. The deal is backed by a greater share of extended-term loans than the issuer’s last deal — a growing trend in auto lending.
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JP Morgan to sell on crisis-era UK RMBS
JP Morgan is at the head of a consortium that has acquired a £2.7bn portfolio of legacy performing UK residential mortgages from the UK government’s bad bank, and has structured the assets into two RMBS transactions to syndicate to investors.
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Ford picks up auto baton as core ABS refuses to budge
Ford Credit Europe Bank on Tuesday mandated banks for its second Globaldrive German auto ABS transaction of the year, with bankers expecting another tight post-ECB print as core ABS spreads in European continue to shrug off broader market volatility.
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Non-bank servicing could be a house of cards
Non-bank mortgage servicers might not be able to overcome regulatory interventions as their share prices deteriorate, and holders of mortgage-backed securities could see interruptions in cash flows as a result, according to market sources.
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Weaker underwriting for prime autos
Prime auto lenders have been financing their loans more cheaply in the ABS markets in recent months, despite weaker collateral performance and longer maturities.
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Raters battle for third SoFi securitization, quarterly issuance on way
San Francisco-based peer-to-peer lender SoFi is in talks with three ratings agencies regarding its third securitization of student loan refinancings, which is set to hit the market in the first week of November and should lead to regular quarterly issuances from the company.
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Longer and cheaper: Dignity refinances £595m securitization
Dignity, the UK funeral services business, has completed the refinancing of its whole business securitization, issued in 2002. The exchange offer and issue of new notes allows it to extend the average maturity of its bonds from 10 to 22 years, and still save £7m a year of interest costs.
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Weary Punch bondholders hit again by low S&P and Fitch ratings
Punch Taverns’ bondholders had only just finished celebrating the culmination of the pub group’s seemingly endless securitization restructuring saga, when late last week Fitch and Standard & Poor’s delivered another blow by assigning much lower ratings than Moody’s to several tranches.
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Citi preps first Aussie RMBS for three years
Investors will be able to buy Citi-branded Australian RMBS for the first time for more than three years this month, after Citibank Australia mandated for a new deal from its Securitised Australian Mortgage Trust platform.
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FGA Capital eyes 20bp saving with Italian ABS after ECB news
Fiat's car finance joint venture with Crédit Agricole, FGA Capital, is heading for a significant improvement on spread levels for its latest A-BEST loan securitization, in the first public Italian collateral-backed deal since the European Central Bank outlined the scope of its forthcoming asset purchases.
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Tighter spreads bode well for risk transfer and real economy lending
European banks are slowly reengaging with risk transfer trades, with half a dozen in the market and the outlook improving as ECB actions promise to make such trades more.
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A perfect storm brews in CLOs
The eternal tussle between equity and triple-A investors in collateralised loan obligations intensified this week, as a widening in triple-A CLO spreads drove down equity returns even further and forced some arrangers and managers to make concessions in order to lock senior debt investors into their deals.
