Securitization - Article Archive
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Angelo Gordon likely buyer of Freddie NPLs
A special purpose vehicle believed to be controlled by hedge fund Angelo Gordon & Co, a recent sponsor of RPL RMBS, has purchased $1.08bn in NPLs from Freddie Mac.
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Clayton buys real estate valuation firms
Securitization service provider Clayton has bought two Utah companies that will add to its capabilities in assessing loan performance and valuing real estate assets.
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Investors pile in at bottom of Invitation Homes deal
The bottom tranches of Invitation Homes’ latest single-family rental securitization were seven times oversubscribed on Tuesday. Meanwhile, investors set their sights on the market’s first multi-borrower deals.
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Investors sell SDART following disclosure
Santander Consumer Holdings USA announced in regulatory filings on Monday that US regulators were still investigating the company, and secondary market sell-offs followed.
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Natixis to wait for first credit card ABS print
A first securitization of credit card receivables from French consumer lender Natixis Financement will be next week’s business.
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It’s grim up north, says Moody’s
The UK’s much maligned north-south divide extends to the mortgage market, Moody’s has shown with a report that suggests northerners are twice as likely to become “mortgage prisoners” than borrowers in other regions.
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FirstKey follows B2R with multi-borrower deal
Cerberus Capital's FirstKey Lending is marketing a single-family rental securitization backed by loans to multiple borrowers, following a similar move by Blackstone's B2R Finance on Friday.
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S&P error junks 30 bonds — so far
Standard & Poor’s has downgraded most of the securities it had reconsidered following a ratings error which impacted the agency’s default assumptions for 338 legacy, non-agency RMBS ratings.
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Wells gets new ABS co-heads as Caperton ascends
Wells Fargo has appointed new co-heads of its asset-backed finance and securitization team following Julie Caperton’s promotion to head of corporate development.
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Euro CLOs ‘better value’ than Greek RMBS
Despite Greek RMBS spreads widening to discount margins of up to 725bp as investors sweat over the country’s euro denominated future, there is better value in other products, according to JP Morgan analysts.
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Investors reveal size demands as NN Bank joins dwindling Dutch RMBS
ING-owned Nationale-Nederlanden Bank has printed its first broadly syndicated Dutch RMBS, with investors showing demand for nearly four times the size of its two year offering.
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B2R brings market's first multi-borrower rental deal
Blackstone’s B2R Finance is planning the first ever multi-borrower single-family rental securitization, the company announced on Friday.
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Two more execs leave Starwood Waypoint
Starwood Waypoint announced the resignations of two top executives last night. The announcement followed the resignation of the company’s chief accounting officer in December.
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Refi time in CLOs as loan market slows
Supply of new issue CLOs was steady this week but is still threatened by low loan supply and tightening loan spreads. Refinancings offer arrangers some hope, though.
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Eurozone left in UK’s dust as Lloyds tops £1bn
Securitizations backed by eurozone assets are beginning to pepper the primary market, but bankers are struggling to escape the irony of the European Central Bank’s intervention apparently stimulating more issuance in sterling than euros.
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Alpha Trains marks first German WBS with triple print
Alpha Trains has sold €350m of public senior secured bonds, a €250m senior private placement and a €125m junior private placement as part of its whole company securitization.
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Jumbo RMBS issuers dipping toes in non-QM
Mortgage aggregators are bringing jumbo mortgage securitizations that venture outside of the qualified mortgage box — ever so slightly.
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Speed needed in AXA’s old CLO grab
While the recent SOTUS exemption on non-Volcker-compliant CLOs is driving liquidity in legacy CLOs as a triple-A alternative with high carry, some investors are looking at even older paper.
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Private RMBS steps up as government sells risk
The US government may have failed to reduce its stake in the RMBS market, even seven years after buying out Fannie and Freddie, but the private market is finally starting to do more in the product.
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French join platform lending revolution
Marketplace lending in continental Europe, while lagging far behind the US and the UK, has taken a step forward as SME platform Lendix announced a tranche of institutional money committed to SME lending
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Lloyds’ Penarth tops £1bn after size increase
Lloyds Bank increased both the dollar and sterling portions of its Penarth 2015-1 credit card ABS on Thursday morning, taking the total size above £1bn.
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Volkswagen retains first Private Driver of 2015
Despite being able to command some of the tightest spreads in the European ABS market in recent years, Volkswagen Bank has opted to fully retain its latest securitization of German auto loans.
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Jumbo RMBS issuers dipping toes in non-QM
Mortgage aggregators are bringing jumbo mortgage securitizations that venture outside of the qualified mortgage box — ever so slightly.
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Settlements could be driving non-agency RMBS liquidations
Liquidations in non-agency RMBS are outpacing other asset classes as month end approaches, perhaps driven by litigation, according to market sources.
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Orchard offers Karrot as P2P investors seek scale
Orchard Platform is giving institutional investors access to a new consumer loan product from one of the US’s fastest-growing marketplace lenders.
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Mediobanca hits wide end on Quarzo
Mediobanca was set to price its first securitization in nearly four years at the wide end of guidance on Wednesday afternoon, after having the single tranche offering covered early morning.
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Vontobel sets sights on full takeover of TwentyFour
Swiss private bank Vontobel is set to acquire a 60% stake in TwentyFour Asset Management, with plans to ultimately fully acquire the UK based fixed income boutique.
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Capital One doubles down in credit card ABS
Capital One upsized its first credit card ABS issuance of the year, more than doubling the $500m in issuance the sponsor originally planned.
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Freddie STACR deal heads big day for GSEs
Freddie Mac’s second STACR issuance from its higher LTV HQ series was priced on Tuesday. Elsewhere, Fannie Mae listed its risk sharing deals abroad.
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Hedge funds driving NPL RMBS issuance
Hedge funds are driving issuance of securitizations backed by non-performing loans, and money managers are hungry for the paper.
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Ally Bank names new president
Ally Bank, the online direct banking unit of auto ABS sponsor Ally Financial, has appointed a new president to replace Barbara Yastine.
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Deutsche launches Harp CMBS
Deutsche Bank has issued initial price thoughts on Deco-2015 Harp, which will be the first Irish CMBS priced since the financial crisis.
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Dutch see ‘record high’ property turnover
Dutch houses changed hands at a record rate in December as tighter lending rules and a reduction in the maximum mortgage size eligible for government guarantee begin to bite.
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BPE structures unsecured SME loan CDO
Banco Popular Espanol has structured a two tranche €3bn securitization of unsecured Spanish SME loans, as public ABS supply from Spain remains elusive.
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Wells planning $274m NPL first
Wells Fargo Securities is marketing a $274m securitization of non-performing loans held by an affiliate of the bank, according to deal documents.
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Ocwen bites back, says investors just want foreclosures
Ocwen Financial has publicly challenged RMBS investors' arguments that collateral should be transferred to other servicers that might be more likely to foreclose on borrowers.
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Alpha Trains completes first German whole business securitization
Alpha Trains has sold €350m of public senior secured bonds, a €250m senior private placement and a €125m junior private placement as part of its whole company securitization.
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Winston & Strawn hires four in New York
Law firm Winston & Strawn is expanding its leveraged finance practice in New York, with growth in structured finance part of its strategy.
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Eurozone ABS struggles to dent UK dominance
Eurozone ABS deals are beginning to hit the primary market with greater frequency, but bankers are struggling to escape the irony of the European Central Bank’s intervention stimulating more issuance in sterling than euros.
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Basel ‘cannot justify’ mortgage risk weights
The UK’s Council of Mortgage Lenders has said the Basel Committee on Banking Supervision has presented “no evidence” to justify the higher risk weightings proposed for mortgages.
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Is UK sale right for tax payers?
Getting assets out of the public sector has an obvious appeal. But it’s not always a great trade.
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Freddie Mac brings risk-sharing deal with higher LTVs
Freddie Mac is marketing its second risk-sharing issuance of the year, which is backed by loans with lower down payments than its last one.
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When RMBS are safer than covered bonds
Covered bonds and RMBS share important similarities, as both the European Central Bank and Bank of England acknowledged last year in a discussion paper. As the two asset classes evolve, the vastly different regulatory regimes applied to each should become more difficult to justify.
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BAML adds to chorus of concern on buyer base
Bank of America Merrill Lynch analysts are concerned that European investors could shy away from poor volumes in their own region in favour of the US market.
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Irish CMBS leads building European pipeline
Scepticism over the European Central Bank’s ability to stimulate meaningful eurozone ABS issuance is alive and well, but there have been further signs this week that increased risk appetite is broadening the scope of supply hitting the primary market.
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EDP trims third off TDR spread in face of BTPs
Energias de Portugal (EDP) printed its third tariff deficit receivables (TDR) securitization some 100bp inside its second on Wednesday, though the deal was only slightly oversubscribed.
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Brits Abroad: UK lenders seek investors as trio hit foreign currency market
Lloyds Bank will be the next UK lender to leverage foreign demand for its assets, after compatriots Santander UK and Paragon found favour in both dollars and euros this week.
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ASF’s Deutsch raising cash for new hedge fund
Tom Deutsch, the controversial executive director of the American Securitization Forum, is understood to be working with a partner to raise money for a new securitization focused hedge fund.
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UK to close book on Lehman era with £13bn mortgage sale
The UK government wants to leverage surging demand for exposure to the country to offload some £13bn of mortgages it acquired from Northern Rock after the collapse of Lehman Brothers, writes Tom Porter.
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The big CLO-down? Loan scarcity puts brakes on dealflow
Despite a glut of new CLO issues this week, a slowdown in US leveraged loan supply has led to a drop in the creation of new asset warehouses this year, according to market participants.
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Buyer calls 'end of the cycle' for subprime auto
Increased delinquencies in subprime auto ABS are beginning to bite, with one asset manager that bought a large slice of Prestige Financial’s last issue turning down the firm's latest deal.
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BNY Mellon hires from Citi for new trustee position
BNY Mellon’s corporate trust business has hired Citi’s former global head of issuer services to fill a new role covering corporate and insurance clients.
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Brits abroad: Lloyds’ Penarth next in dollars
Lloyds Bank will be the next UK lender to leverage US demand for its assets after mandating leads for a dollar denominated credit card securitization.
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EDP trims third off TDR spread in face of BTPs
Energias de Portugal (EDP) printed its third tariff deficit receivables (TDR) securitization some 100bp inside its second on Wednesday, though the deal was only slightly oversubscribed.
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Savills targets SEB real estate business
Real estate investment manager Cordea Savills is lining up an acquisition of SEB Asset Management, which will see it cooperate with the Swedish banking group to provide services to its clients.
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Large resecuritization BWIC moving RMBS markets
A large all-or-nothing bid list for a legacy, non-agency RMBS resecuritization is set to trade this Friday and has been moving markets, traders have told GlobalCapital.
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Quicker settlements in sight as loan trustee ditches fax machines
Participants in the leveraged loan and CLO markets could begin to see an improvement in “woeful” settlement times as new technology replaces inefficient and outdated processes.
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Ford prime auto deal solves for Fed uncertainty
Ford Motor Credit has added a new component to its auto ABS platform to attract investors otherwise concerned over rising interest rates.
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Bankers welcome deeper pipeline led by Irish CMBS
Scepticism over the European Central Bank’s ability to stimulate meaningful Eurozone ABS issuance is alive and well, but there have been further signs this week that increased risk appetite is broadening the scope of supply hitting the primary market.
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Ex-ING syndicate man joins Belgian central bank
Régis Lanove, formerly of ING's syndicate desk, has joined the National Bank of Belgium.
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Barclays FIG syndicate veteran switches to treasury
An experienced FIG and ABS syndicate official at Barclays is moving to the bank's treasury team as head of long term unsecured funding and capital issuance.
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Auto ABS to launch off back of Fed statements
New auto ABS issuance is expected to price after the Federal Open Market Committee’s statement tomorrow.
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Blue Elephant P2P ABS prices close to BlackRock
New York fund Blue Elephant Capital Management has managed to price an unrated $71m securitization of consumer loans originated through Prosper close to where BlackRock printed its rated deal in February.
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Five Oaks readies its own jumbo RMBS platform
Five Oaks Investment Corp is on pace to acquire enough jumbo mortgages to launch its own securitization platform by the second quarter, the company announced on Monday.
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BNP Paribas merges HY and levfin in wider syndicate rejig
BNP Paribas has restructured reporting lines on its syndicate desk, including giving one person responsibility for loans, high yield bonds and leveraged finance.
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Paragon euros fly in on 3.3x subscription
Paragon Mortgages is looking to leverage good demand for the senior notes of its Paragon 22 buy-to-let RMBS, with leads testing 10bp inside initial guidance on the euro portion.
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ABS spreads lag as ECB pulls QE trigger
ABS traders are braced for another round of European ABS spread compression as the European Central Bank ramps up its sovereign bond purchases, but prices have been stubborn so far.
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Santander targets £1bn of Fosse RMBS
Santander UK has set a £1bn maximum size on its three tranche, dual currency Fosse UK master trust RMBS, after pulling in demand equivalent to over £1.6bn.
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Voya hires Citi for 2012 CLO refi
Voya Alternative Asset Management, which rebranded from ING US Investment Management in 2014, is refinancing two CLOs it issued in 2012.
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Servicers still afoul of CFPB transfer rules
Many mortgage servicing rights transfers have not complied with rules finalised by the Consumer Financial Protection Bureau two years ago, according to a staffer at the agency.
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MSR industry calls time on overzealous regulation
Regulators should loosen their scrutiny of special mortgage servicing companies, like Ocwen Financial and Nationstar mortgage, to avoid a capacity crunch in the sector, said industry heads on Monday.
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Santander adds two year to Fosse RMBS in dollar delivery
Santander UK left ABS Vegas last month in little doubt about the level of demand for more dollar denominated securitizations, and has duly obliged with its latest UK prime RMBS.
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Paragon euros preferred as price stickiness persists
Investors have shown a slight preference for the euro portion of Paragon’s latest buy-to-let RMBS, while guidance on the sterling portion is 5bp wide of its last deal.
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Yield search leads AXA to vintage US CLOs
AXA Investment Managers has responded to investor yield hunger by raising an expected $250m fund to invest short term at the mezzanine level in 1.0 era US CLOs.
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Resimac sneaks non-con into huge week of Aussie RMBS
Resimac printed a A$375m Australian non-conforming RMBS on Friday, punctuating a A$4bn plus week dominated by prime deals in the Aussie market.
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Autostrada Brescia issues first bond under new Italian project law
Autostrada Brescia Verona Vicenza Padova has issued the first public bond to benefit from a recent Italian project bond law, a €600m five year secured transaction.
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Prestige hires first compliance officer ahead of new subprime deal
Prestige Financial Services hired its first compliance officer ahead of a $400m subprime auto securitization the company is planning.
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Moody’s Analytics moves compliance to the cloud
Moody’s Analytics has added a new tool to its web-based Structured Finance Portal to help financial institutions assess the potential accounting and regulatory treatment of securitization investments.
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Bluestone unveils seven trancher as esoteric ABS appeal
Australia-based Bluestone Group has begun marketing its debut buy-to-let UK RMBS, as demand for deals out of reach of the European Central Bank supports more esoteric products.
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Barclays fears investor drain on ECB’s watch
Barclays has calculated the European Central Bank’s intervention will shrink the investor-placed Eurozone ABS market by some €35bn this year alone, forcing buyers to look elsewhere.
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Volcker exemption ushers CLO buyers in from the cold
US regulators have given sentiment in the European CLO market a boost by clarifying that non-US banks can own and trade CLOs that do not comply with the Volcker rule.
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Aussie quartet sell A$4bn in a week as major banks return and prices firm up
The return of two Australian major banks to securitization this week helped put more than A$4bn equivalent of new RMBS and auto ABS bonds on the market.
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Italy ABS back as Mediobanca eyes consumer
Mediobanca will be the next periphery issuer to step out of a post-crisis pattern of privately sold and retained transactions, as tightened spreads and the ECB’s presence give lenders more confidence in primary market demand.
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Buyers unfazed by Obvion tightening as they buy €1.9bn in ‘ruined market’
European ABS is now the very definition of an issuer’s market, according to some ABS bankers, who watched investors snap up nearly €2bn of Obvion RMBS on Thursday despite the lender pricing five year notes where it was pricing two years barely six months ago.
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Wyndham timeshare deal too tight for real money
Wyndham Consumer Finance's latest timeshare ABS issuance is expected to launch too tightly for long money investors who used to be big buyers of esoteric products.
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Aussie quartet sell A$4bn in a week as prices firm up
The return of two of the Australian major banks to securitization this week helped put over A$4bn equivalent of new RMBS and auto ABS bonds on the market.
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3i and CS take home GC’s euro CLO award
At IMN’s London CLO conference on Monday, GlobalCapital presented 3i and Credit Suisse with the Euro CLO of the Year 2014 Award for 3i’s Harvest IX CLO. The deal received the most votes from market participants out of a shortlist of five.
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Buyers undeterred by Obvion tightening
Investors had taken the order book for Obvion’s single tranche Dutch RMBS to well over €2bn on Thursday, despite the lender pricing five year notes where it was pricing two years barely six months ago.
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Subprime auto ABS tighter, but losses up
Subprime auto ABS spreads have tightened since the start of the year even as performance has declined and transaction sponsors have reached further down the credit stack for new issuance.
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More NPLs on the way for rental deals
Market participants expect Freddie Mac to come to market more frequently with non-performing loans, with the government sponsored enterprise’s next NPL sale expected to come as soon as April.
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Obvion coming ‘super tight’ in Dutch fives
Rabobank and Société Générale have guided investors to high 20bp area for Obvion’s single five year tranche of Dutch RMBS in Storm 2015-1, the latest benchmark for a market entering new territory at the tight end.
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Bluestone stretches stack on first Celeste RMBS
Australia based Bluestone is looking to sell up to seven tranches of notes in its securitization of buy-to-let mortgages acquired in its takeover of Basinghall Finance.
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Moody’s Analytics moves regulatory compliance to the cloud
Moody’s Analytics has added a new tool to its web-based Structured Finance Portal to help financial institutions assess the potential accounting and regulatory treatment of securitization investments.
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The CLO market can grow up without losing its teeth
It’s easy to make short term arguments that standardising CLO documentation and improving execution transparency hurts managers, or investors, or banks. But it doesn’t have to.
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CLO diversity covenants become ‘best practice’
Recently priced European CLOs have had greater portfolio diversity written into their structures thanks to additional covenants, according to Fitch.
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Barclays blames ECB for buyers deserting ABS
Barclays has calculated the European Central Bank’s intervention will shrink the investor-placed Eurozone ABS market by some €35bn this year alone, forcing buyers to look elsewhere.
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Stonegate pushes new online MBS platform with new CTO
Stonegate Mortgage has hired a new chief technology officer, who will push the development of a new online platform to facilitate investment in mortgages and mortgage-backed securities.
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Santander targets deep subprime with return of Drive
Santander Consumer USA, which is under regulatory scrutiny for its subprime auto securitization operations, is bringing the first ABS issuance from its Drive platform since 2006.
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Private becoming public for periphery ABS
Renewed appetite for securitizations from Europe’s periphery has brought another issuer out of the post-crisis pattern of privately sold and retained transactions.
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UK extends supply lead as Bluestone roadshows debut
Australia based Bluestone Group has begun marketing its debut UK RMBS, as demand for deals non-eligible for European Central Bank purchase supports the non-prime market.