Securitization - Article Archive

  • Full cap stack sales to proliferate in 2015

    A number of European banks should be able to gain capital relief by selling the full capital stack of ABS trades into the market next year, as long as the spread environment remains favourable to the practice.

    • 23 Dec 2014
  • Ocwen order could hit RMBS

    Servicer advance securitizations by Ocwen Financial, and RMBS tied to Ocwen’s servicing, could yield less for investors than expected following a $150m settlement and consent order it reached with the New York Department of Financial Services (NYDFS) last Friday.

    • 23 Dec 2014
  • Carlyle Group and Warburg Pincus lead buyout of DBRS

    The Carlyle Group and Warburg Pincus have partnered with a group of Canadian investors to purchase DBRS, the rating agency announced on Monday.

    • 22 Dec 2014
  • Investors seek new RMBS flavours in 2015 as legacy deals dwindle

    Opportunities for investors in primary and secondary residential mortgage-backed securities markets have started to dwindle because of declining liquidity in legacy RMBS, but other yieldy products might fill the gap in 2015, market participants say.

    • 22 Dec 2014
  • Year not over for Russian RMBS despite market rout

    AK BARS Bank has completed a securitization of mortgages through VTB Capital, which GlobalCapital understands will not be the last RMBS of 2014 for Russia’s domestic market even as international investors fear the country will suffer bank and corporate defaults next year.

    • 22 Dec 2014
  • Five Oaks taps Credit Suisse for next jumbo RMBS

    Five Oaks has partnered with Credit Suisse to issue a $272m RMBS deal backed by prime jumbo mortgages. The real estate investment trust partnered with JP Morgan to bring previous deals.

    • 18 Dec 2014
  • JPM CMBS widening exemplifies trend of weaker collateral

    JP Morgan’s latest CMBS deal represents a market trend in which issuers have sold investors cheaper deals backed by weaker collateral, market participants say.

    • 18 Dec 2014
  • Solar securitization looks for its big bang in 2015

    As the use of solar energy increases in the US, issuance of securitizations of various financing products for the technology is set to increase, with several new names set to print deals in 2015. But despite progress in 2014, legislation continues to be an obstacle to the growth of this market.

    • 18 Dec 2014
  • Santander tweaks Holmes to match LCR needs

    Santander UK has restructured the Holmes master trust to make sure its bonds meet the standards for the European Banking Authority’s Liquidity Coverage Ratio, so that banks will be able use Holmes RMBS notes in category “2B” of their liquidity buffers.

    • 18 Dec 2014
  • Titan 2006-2 crystallises loss on Margaux

    Proceeds from the largest loan left in Titan 2006-2 will flow through to noteholders in January, but the hefty costs of enforcing the loan and selling the property means noteholders are likely to see losses. The property sold for €268m almost a year ago, but CMBS noteholders are only set to recover around €239.5m, 90.58% of the outstanding loan amount.

    • 18 Dec 2014
  • Servicer advance securitizations expected to pick up next year

    Market participants are expecting increased issuance of servicer advance securitizations by non-bank servicers in 2015, as regulatory pressures continue to squeeze margins for non-bank servicers like Ocwen Financial, the target of yet another investigation.

    • 17 Dec 2014
  • RGA brings first reinsurance ABS since crisis

    Reinsurance Group of America (RGA) closed the first issuance of reinsurance backed ABS since the financial crisis on Tuesday. The deal was $100m larger than originally expected.

    • 17 Dec 2014
  • Man Group fires starting pistol on CLO manager consolidation

    UK hedge fund giant Man Group’s decision to buy Silvermine Capital, the US collateralised loan obligation manager, makes Silvermine "immune to risk retention" and could be the first acquisition of many as onerous risk retention rules threaten smaller CLO managers, said market participants.

    • 17 Dec 2014
  • Sankaty tweaks CLO 2.0 structure for Rye Harbour

    Sankaty Advisors and Citigroup have priced Rye Harbour CLO, a €350m European CLO 2.0 with a few structural tweaks from the standard deal. Like most new-style collateralised loan obligations, the deal will be 90% senior secured, with strict limits on unhedged non-euro assets.

    • 17 Dec 2014
  • Lloyds structures chunky SME repo trade

    Lloyds Bank has structured Lingfield 2014 I, a £3.2bn SME ABS backed by secured loans to medium sized enterprises.

    • 17 Dec 2014
  • Dick Clark Productions ABS to rock in the new year

    Dick Clark Productions (DCP) is planning to securitize the fees and revenues from its group of televised event programmes ahead of this year’s Dick Clark’s New Year’s Rockin’ Eve with Ryan Seacrest.

    • 16 Dec 2014
  • A flight to quality for student loan ABS

    Uncertain macroeconomics and wary international investors have inspired a flight to US assets, including student loan ABS which market participants say has experienced an increase in secondary market trading along with solid and stable investor participation near year end.

    • 16 Dec 2014
  • Securitization shouldn’t over-promise on real economy benefits

    Securitization has come a long way in the past two years, not least in the minds of regulators. But the industry needs to start managing expectations. It is not going to solve Europe's problems on its own.

    • 16 Dec 2014
  • Award: European CLO of the Year 2014

    At IMN's European CLOs and Leveraged Loans Conference in London on March 9, GlobalCapital will be presenting 2014's European CLO of the Year Award to the winning manager and arranger, as voted by the market. Read on for more details.

    • 16 Dec 2014
  • Final version of Theatre CMBS restructuring breaks cover

    The restructuring of two UK hospital property securitizations, Theatre (Hospitals) No 1 and 2, has finally been executed by most of the parties to the deal, with the restructuring adviser, Lazard, circulating the agreement to the final parties in a notice published on Tuesday.

    • 16 Dec 2014
  • ESMA criticises European RMBS ratings but won't name sinners

    The European Securities and Markets Authority has criticised the rating process for European mortgage securitizations after a study of the four largest rating agencies that it began in October 2013.

    • 16 Dec 2014
  • Cantor Fitzgerald taps two for loan trading

    Cantor Fitzgerald has added two whole loan trading experts to its mortgage and mortgage-backed securities team, as part of a strategic expansion into whole loan trading.

    • 15 Dec 2014
  • Manager tiering could widen pricing for York’s CLO debut

    Investors may demand wider pricing than is currently being talked about for York Capital Management’s debut collateralised loan obligation, as incoming risk retention rules lead to increased price tiering between established managers and newer entrants, according to market participants.

    • 15 Dec 2014
  • CAO departure fails to dent Starwood SFR debut in secondary

    The resignation of Starwood Waypoint’s chief accounting officer (CAO) just after the pricing of the issuer’s first single family rental (SFR) securitization has been seen as a red flag by some market participants, but secondary market trading has not suggested a negative reaction to his departure.

    • 15 Dec 2014
  • Russian RMBS leans on state with new assets planned for next year

    Despite the turmoil in the wider Russian markets, the Russian domestic asset-backed market may still have a bright long term future — but the asset class will need heavy support from state institutions.

    • 15 Dec 2014
  • European Investment Bank buys new Italian RMBS

    The European Investment Bank and Société Générale’s asset backed commercial paper conduit are buying parts of a new residential mortgage backed security for a group of Italian cooperative banks, according to a prospectus filed with the Central Bank of Ireland.

    • 15 Dec 2014
  • Starwood Waypoint CAO resigns after just 4 months

    Starwood Waypoint Residential Trust filed an SEC notice on Friday stating that the company’s chief accounting officer John Farias resigned from his post on Monday. His resignation comes as Starwood Waypoint seeks to finalise its first single-family rental securitization.

    • 12 Dec 2014
  • York Capital aims for CLOs with debut deal

    Credit Suisse has been handed arranger duties on a new collateralised loan obligation from debut New York issuer York Capital Management, according to a person familiar with the situation.

    • 11 Dec 2014
  • Edsouth Services planning student loan ABS

    Edsouth Services is planning a $302.8m student loan securitization backed by rehabilitated FFELP loans, according to a Fitch presale published on Wednesday.

    • 11 Dec 2014
  • More seats to fill at Fitch amid US structured credit boom

    Fitch Ratings has grown its structured credit ratings team in the US significantly over the past 18 months or so and is continuing to do so, with several more positions to fill as the market grows, especially in collateralised loan obligations.

    • 11 Dec 2014
  • Varied ABS in 2015 as Italy hits €6bn

    This year’s European ABS issuance volumes have only just crept above those of 2013, but there has been a greater variety of deals encouraged by tighter spreads and the resurgence of certain asset classes. Banca Popolare dell’Alto Adige’s resale of RMBS notes this week exemplified a trend that is set to strengthen in 2015 as deal economics improve.

    • 11 Dec 2014
  • Fear over cheer for ABS as Basel sticks to its guns

    The Basel Committee on Banking Supervision spoiled ABS experts’ quiet December for the third year in a row this week, proposing criteria for ‘high quality’ securitizations at the same time as finalising capital rules for the product that bankers argue will strangle the market.

    • 11 Dec 2014
  • NewDay cards mean sterling ends on a high

    UK credit and store card provider NewDay priced what is likely to be the last sterling denominated ABS of the year this week, ensuring the currency ends the year on a high after a tricky run in recent weeks. The deal also offers hope of increased issuance next year for UK credit card ABS.

    • 11 Dec 2014
  • The ECB’s ABS purchases may be over before they’ve begun

    Since making its decision to purchase asset backed securities, the policy message from the European Central Bank has floated somewhere between credit easing and quantitative easing. One won’t work, and the other should have nothing to do with ABS.

    • 11 Dec 2014
  • Three of five priced wide for B&A Bank as MyState plans more regular RMBS

    Bendigo and Adelaide Bank sold a full stack of Australian RMBS notes this week, its second mortgage backed deal of the year, with three tranches sold at the wide end of guidance and one tranche inside guidance.

    • 11 Dec 2014
  • No on the run trading for new timeshare ABS

    A timeshare backed ABS issuance by Gold Key Resorts this week was fully subscribed, mostly by a group of smaller insurance companies, market participants said. The notes are expected to remain with primary investors, unlike deals by more regular issuers that have seen a lot of on the run trading by larger money managers.

    • 11 Dec 2014
  • Blurred lines between middle market and broadly syndicated CLOs

    Loosening language around what types of assets collateralised loan obligations can hold could lead to more middle market loans making their way into broadly syndicated loan CLOs, market participants told GlobalCapital this week.

    • 11 Dec 2014
  • More varied ABS supply for 2015 as Italy hits €6bn

    This year’s European ABS issuance volumes have only just crept above those of 2013, but there has been a greater variety of deals encouraged by tighter spreads and the resurgence of certain asset classes. Banca Popolare dell’Alto Adige’s resale of RMBS notes this week exemplifies a trend that is set to strengthen in 2015 as deal economics improve.

    • 11 Dec 2014
  • More fear than hope for ABS as Basel serves up December double

    The Basel Committee on Banking Supervision spoiled ABS experts’ quiet December for the third year in a row on Thursday, proposing criteria for ‘high quality’ securitizations at the same time as finalising capital rules for the product that bankers argue will strangle the market.

    • 11 Dec 2014
  • CPS to tap cheap financing in latest subprime deal

    Consumer Portfolio Services (CPS) is taking advantage of low benchmark rates to launch a new deal cheaply despite wider spreads, market participants say.

    • 10 Dec 2014
  • Auto issuance expected to defy headwinds in 2015

    Market participants are expecting 2015 to be an even bigger year than 2014 for prime and subprime auto ABS issuance, even as rising delinquencies and strong competition among issuers push up yields for new transactions.

    • 10 Dec 2014
  • MyState plans more regular RMBS issuance

    MyState Financial plans to issue RMBS transactions every 12 to 15 months from now on, after releasing guidance for the latest deal from its ConQuest platform on Wednesday.

    • 10 Dec 2014
  • S&P recovery ratings offer hope as Invesco Volckerises

    Invesco has agreed to Volckerise one of its 2013 collateralised loan obligations, as well as modifying it to include changes to Standard & Poor’s recovery ratings that could benefit equity investors. The S&P changes could provide a crucial window for Volckerisations as refinancing activity winds down, say market participants.

    • 09 Dec 2014
  • Buy and holds expected for First National Holdings' tax lien ABS

    Asset managers are expected to buy and hold all of a $90m tax lien ABS by First National Holdings, due to the relative stability but small size of the asset class.

    • 09 Dec 2014
  • The ABS purchase programme could be over before it’s even begun

    Since making its decision to purchase asset backed securities, the policy message from the European Central Bank has floated somewhere between credit easing and quantitative easing. One won’t work, and the other should have nothing to do with ABS.

    • 09 Dec 2014
  • GlobalCapital Asia/Asiamoney regional capital markets awards 2014, Part III: Bonds

    For the third part of our annual awards, we cover Best Local Currency Bond, Best Securitization, Best High Yield Bond, Best Investment Grade Corporate Bond, Best Financial Bond, Best Sovereign Bond, Best Local Currency Bond House and Best G3 Bond House.

    • 09 Dec 2014
  • European banks ‘committed’ to ABCP despite MMF fears

    Asset backed commercial paper issuance by European banks should remain stable next year despite the impeding effects of incoming money market fund regulations on the make-up of conduit portfolios, according to Fitch.

    • 09 Dec 2014
  • S&P cuts 61 antipodean RMBS ratings

    Standard & Poor’s has lowered ratings on over 40% of the Australian and New Zealand RMBS tranches placed on negative watch after the agency’s downgrade of mortgage insurance provider Genworth last month.

    • 09 Dec 2014
  • Three out of five wide for Australia’s B&A Bank

    Bendigo and Adelaide Bank sold a full stack of Australian RMBS notes on Tuesday, its second mortgage-backed deal of the year, with three tranches were sold at the wide end of guidance and one tranche inside guidance.

    • 09 Dec 2014
  • NewDay sitting comfortably in top four with card ABS

    Demand for NewDay Cards’ UK credit card securitization has jumped since Friday, with the top four classes of the £300m transaction now comfortably covered.

    • 08 Dec 2014
  • Holidays and credit work make BPAA wait

    An Italian public holiday could keep Banca Popolare dell’Alto Adige from pricing its secondary reoffering of RMBS notes until the middle of this week, with accounts also taking time to do credit work on the rare name.

    • 08 Dec 2014
  • Paragon to add 10% to latest RMBS portfolio

    Paragon Mortgages is set to add £23.4m of prefunded loans to the portfolio backing its 21st residential mortgage backed transaction this week, though the move will not affect the deal’s ratings.

    • 08 Dec 2014
  • Arrears will rise with rates, warns BoE

    The Bank of England has warned that raising interest rates from their record low of 0.5% could increase the number of UK mortgage borrowers at risk of falling into arrears by a third, as stagnant incomes remain a key concern for the UK economy.

    • 08 Dec 2014
  • Orchard launches first marketplace loan database

    Orchard Platform on Friday launched the first marketplace lending database to streamline the due diligence process for institutional investors in marketplace loans. Efficiencies and loan data standardisation from the platform could bolster the securitization market for marketplace loans.

    • 05 Dec 2014
  • UK budget to back alternative finance revolution

    The UK chancellor of the exchequer, George Osborne's Autumn Statement, announced a major boost for alternative finance through peer-to-peer (P2P) markets. Retail investors could soon use the tax exempt individual savings allowance wrapper to put money into P2P, unlocking a pool of capital worth more than £400bn for the sector.

    • 04 Dec 2014
  • CPS planning subprime auto ABS

    Consumer Portfolio Services (CPS) is planning a $267.5m auto ABS backed by subprime auto loans originated by the specialty finance company’s network of partnering auto dealers.

    • 04 Dec 2014
  • Targets limited as ECB limps to €368m

    The European Central Bank’s first foray into the European ABS market predictably underwhelmed market participants this week, and the central bank will have precious few opportunities to add to its meagre tally before Christmas. But some of those looking at the covered bond market are saying a slower rate of purchase may be no bad thing.

    • 04 Dec 2014
  • Euros dominate in Clydesdale’s UK RMBS as supply winds down

    Clydesdale Bank’s Lanark 2014-2 RMBS transaction was priced this week with a euro portion €250m larger than the issuer’s previous offering, reflecting a large bid for euro denominated UK RMBS as investors snapped up some of the last supply of the year.

    • 04 Dec 2014
  • Europe braces for P2P securitization as KLS signs up

    Europe’s first securitization of peer-to-peer (P2P) loans could be in investors’ hands within months, after KLS Diversified Asset Management signed a landmark deal with UK based platform Funding Circle this week that will see the fund manager invest £132m ($206.9m) in small British businesses and thrust the product into the capital markets. Tom Porter reports.

    • 04 Dec 2014
  • Barclays warns ABS mezzanine may not jump

    European ABS bankers believe the success of the European Central Bank’s ABS purchase programme (ABSPP) in improving real economy lending is all down to whether its actions will stimulate sales of mezzanine bonds to free up bank capital. But Barclays’ analysts were not holding their breath this week.

    • 04 Dec 2014
  • Fitch: ECB will boost SME CLO volumes

    While the majority of the European ABS market is shuddering at the thought of the European Central Bank crowding out private investors with its purchase programme, Fitch expects SME CLO activity to be buoyed by the central bank’s actions.

    • 04 Dec 2014
  • B&A and Mystate to build on Westpac’s jumbo RMBS

    New mandates from Bendigo and Adelaide Bank and MyState Financial this week showed Australian issuers are not taking their foot off the RMBS gas in the run-up to Christmas, despite the Australian dollar investor base absorbing another A$2.7bn of supply from Westpac on Thursday.

    • 04 Dec 2014
  • Volatile pricing for Starwood's first SFR ABS

    Price guidance for the senior tranche of Starwood Waypoint’s first single family rental securitization was released on Thursday, and it was 10bp higher than bank syndicates’ initial price thoughts. Widening for the senior tranche was offset by tighter than expected guidance at the bottom of the deal’s waterfall.

    • 04 Dec 2014
  • European CLO leverage ‘at 2007 levels’

    Leverage levels of the single-B rated issuers that dominate European CLO portfolios are back to 2007 levels, according to Moody’s. But despite Europe’s continued deterioration of loan covenant quality and weak economic growth, the ratings agency still expects the asset class to perform strongly in 2015.

    • 04 Dec 2014
  • B&A Bank keeps Aussie RMBS rolling after Westpac jumbo

    Bendigo & Adelaide Bank added another A$600m (€409m) of Australian RMBS to the pipeline on Thursday, and though larger than the issuer’s previous offering this year the size pales in comparison to a deal from Westpac priced moments earlier.

    • 04 Dec 2014
  • Investors fear jumbo RMBS despite strong collateral

    Jumbo RMBS issuance has picked up with new and repeat issuers coming to market with deals backed by strong collateral. However, while regular pre-crisis issuers are beginning to come back, the same cannot be said on the demand side where institutional investors are still wary of representations and warranties for new deals.

    • 03 Dec 2014
  • DriveTime subprime auto ABS cheap for triple-A

    DriveTime’s subprime auto ABS was priced cheaper than recent subprime issuance, a development investors have attributed to rising delinquencies in subprime auto ABS and a recent enforcement action against DriveTime.

    • 03 Dec 2014
  • Euros dominate in Clydesdale’s Lanark RMBS

    Clydesdale Bank’s Lanark 2014-2 RMBS transaction was priced on Wednesday afternoon with €250m more euro denominated notes than the issuer’s previous offering, while the sterling portion was £75m lower.

    • 03 Dec 2014
  • Don’t expect much from ABS mezz, warns Barclays

    European ABS bankers believe the success of the European Central Bank’s ABS purchase programme (ABSPP) in improving real economy lending is all down to whether its actions will stimulate sales of mezzanine bonds to free up bank capital. But Barclays’ analysts aren’t holding their breath.

    • 03 Dec 2014
  • Goldman moves in on Bankia real estate sell-off

    Goldman Sachs has got in on a recent surge of asset sales from Bankia, picking up a diverse portfolio of real estate loans from the nationalised Spanish lender.

    • 03 Dec 2014
  • Aircraft ABS issuers learning to fly

    Aircraft ABS issuance has been strong over the last few weeks as investors have subscribed to new deals in what market participants call a vote of confidence for the US economy. Now two debut issuers have taken advantage of the strong market conditions.

    • 02 Dec 2014
  • Longer loans back Nissan's auto ABS

    Nissan is planning to issue its second auto ABS of the year backed by prime loans originated and serviced by the auto company’s captive finance arm. The transaction is the latest in a series of prime deals backed by longer term loans.

    • 02 Dec 2014
  • ECB opportunities limited as it limps to €368m of ABS

    The European Central Bank’s first foray into the European ABS market has predictably underwhelmed market participants, and the central bank will have precious few opportunities to add to its meagre tally before Christmas. But there are those looking at the covered bond market and saying a slower pace of purchases may be no bad thing.

    • 02 Dec 2014
  • ECB purchases will boost SME CLO issuance, says Fitch

    While the majority of the European ABS market is shuddering at the thought of the European Central Bank crowding out their private investors with its purchase programme, Fitch expects SME CLO issuance to be buoyed by the central bank’s actions.

    • 02 Dec 2014
  • Structured shake-up at AXA IM

    AXA Investment Managers has combined its fixed income and structured finance divisions into one, with the structured finance team split into two platforms, which the fund manager says will make it more aligned with how clients think about their investments.

    • 02 Dec 2014
  • Prime jumbo RMBS at risk, Fitch says

    Prime jumbo RMBS is at risk of payment disruptions caused by borrower defaults on adjustable rate mortgages originated before the financial crisis, according to Fitch.

    • 01 Dec 2014
  • Clifford Chance launches US RMBS practice

    Clifford Chance, the UK based global law firm, has tapped a team of five lawyers from Bingham McCutchen to bolster its structured finance practice in Washington, DC. The additions are a big move by Clifford Chance into both the RMBS and consumer ABS space.

    • 01 Dec 2014
  • Starwood Waypoint SFR to price wider

    Pricing information was released for Starwood Waypoint Residential Trust’s first single family rental (SFR) securitization on Monday.

    • 01 Dec 2014
  • Virgin picks up £363m more in credit cards

    Virgin Money has acquired another chunk of credit card assets from Bank of America’s MBNA as it looks to build its footprint in the product, with the UK challenger bank set to take full control of its developing cards business next year.

    • 01 Dec 2014
  • Mystate builds on return to RMBS funding

    Mystate Financial has hired banks for a new Australian residential mortgage-backed transaction, almost exactly a year since its last offering.

    • 01 Dec 2014
  • Italy and Ireland join quickening run of retentions

    An SME ABS from Italy and an RMBS transaction from Ireland have taken retained transaction in Europe to €125bn for the year so far, around a quarter more than 2013’s total as deal economics remain prohibitive for many originators.

    • 01 Dec 2014