Securitization - Article Archive
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Prospect plans summer smash with P2P ABS
The hottest new asset class in US securitization is set for a scorching summer, with at least two more marketplace lending ABS expected in the coming weeks after Citi and SoFi tapped the market this week.
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Ashurst brings in Goldman CLO founder after exodus
Eric Bothwell has joined Ashurst’s New York CLO practice as a senior consultant and is looking to rebuild after the firm lost nine senior lawyers in two months.
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US autos continue push as summer approaches
CarMax and AmeriCredit are set to defy the summer ABS slowdown next week, as the auto market continues its recent run of issuance.
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Pramerica and Babson mark a busy CLO day with pricing
Babson Capital and Pramerica Investment Management capped a busy Thursday for the CLO market, pricing their respective vehicles and seemingly confirming 135bp as the clearing level for senior notes.
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Pramerica and Babson mark busy CLO day with pricings
Babson Capital and Pramerica Investment Management capped a busy Thursday for the CLO market, pricing their respective vehicles and seemingly confirming 135bp as the clearing level for senior notes.
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Unlocking potential of RMBS key for China securitization
Ever since China started its securitization market a decade ago, there has been a lot of talk about the vast potential for the product. And while it’s true that securitization has been developing strongly, the country’s true potential lies in the still mostly untapped residential mortgage-backed security (RMBS) sector.
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China ABS going strong despite slowdown
This year Chinese securitization has struggled to continue the momentum it showed at the end of 2014, failing to come close to the increased Rmb500bn ($82bn) quota from regulators. While there is more than one reason behind why issuance has been slow, market participants are still confident the budding asset class will come good by the end of the year.
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China securitization outlook, Part II: Unlocking the true potential of RMBS
Ever since China started its securitization market a decade ago, there has been a copious amount of talk about the vast potential for the product. While it’s true that securitization has been developing strongly, the country’s true potential lies in the yet mostly untapped residential mortgage-backed security (RMBS) sector.
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CarMax files amid quieter week for auto ABS
CarMax is looking to bring its third auto ABS of the year as the summer lull begins to take hold. Meanwhile, Flagship Credit Acceptance has priced its latest subprime deal.
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Goldman alumni look to issue non-QM RMBS
Shelter Growth Capital Partners, an investment manager that three Goldman Sachs alums founded in 2013, plans to securitize non-qualified mortgages.
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MBS litigation veteran joins Atlanta law firm
Crisis-era mortgage expert Brian Olasov has joined Carlton Fields Jorden Burt’s real estate and commercial finance practice group as executive director of financial consulting services.
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Barclays folds remainder of European ABS team into credit
Barclays has put several members of its European ABS business at risk, and is folding those left on the trading desk into its European fixed income credit trading group.
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CMBS hots up in Europe as GS readies Logistics
Goldman Sachs came out with initial spread thoughts on its CMBS backed by UK industrial assets, including Amazon warehouses, while BNP Paribas has quietly placed a CMBS backed by an Italian retail property.
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Macquarie MD heads west to CommonBond
CommonBond, the online student loan financier and recent ABS sponsor, has recruited a former Macquarie Capital managing director as its new CFO, the firm has announced.
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WinWater 'killed' by last RMBS deal
Bank of America Merrill Lynch and Credit Suisse were unable to shift a large chunk of WinWater Mortgage Loan Trust's last jumbo RMBS, said market participants.
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SolarCity: new structure, adds BAML for new ABS
SolarCity has opted for a different structure for its fourth securitization, a deal that market participants say is a sign the market is evolving and should lead to more frequent solar ABS issuance.
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Commercial real estate lender welcomes two senior hires
An CRE origination pioneer and CMBS expert have joined Hunt Mortgage Group, according to the company website.
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Hatteras closes in on first jumbo RMBS
Real estate investment trust Hatteras Financial Corp has engaged a bank and been in talks with ratings agencies for its first jumbo RMBS issuance.
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Synthetic is not a synonym for bad in securitization
Regulators, politicians and investors are right to be sceptical about synthetic securitizations as a tool for transferring risk. Pre-crisis deals were rife with confusing, and at times dishonest, documentation. But with the right approach, these deals can help banks reduce their risk and give qualified investors access to much needed yield.
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Senior PM joins Connecticut structured finance investor
Aaron Garvey is joining Marinus Capital Advisors, a specialised structured finance investor, as a senior macro trader.
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Raiffeisen leads way for synthetic securitization cure
Synthetic securitization, long taboo with investors and regulators, could be making a quiet comeback as yield hungry hedge funds help banks find ways to increase capital and reduce risk weighted assets, writes Graham Bippart.
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China securitization outlook, Part I: Sluggish volumes are no cause for concern
This year Chinese securitization has struggled to continue the momentum it showed at the end of 2014, failing to come close to the increased Rmb500bn ($82bn) quota from the regulators. While there is more than one reason behind why issuance has been slow, market participants are still confident the budding asset class will come good by the end of the year.
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AES brings first utility-sponsored solar ABS
Virginia-headquartered energy provider AES Corporation is set to become the first utility company to tap the growing market for securitizations of solar assets, the company has confirmed.
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Driven Brands whole business ABS well oversubscribed
Roark Capital’s whole business securitization of Driven Brands was well oversubscribed on Friday, allowing Roark to refinance debt it used to acquire Driven Brands.
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Flagship to launch subprime auto deal
Flagship Credit Acceptance has hit the market with its second auto transaction of the year.
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AIG affiliate sells CRT RMBS through Bermudan company
AIG's United Guaranty Corp was close to pricing a credit risk transfer issuance tied to residential mortgage insurance contracts early this week.
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Investors get Hero at a discount
The second property assessed clean energy (Pace) securitization from Hero Funding Trust this year was priced on Monday.
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Three deals priced before China disrupts market
It seemed that after the Greek crisis abated, however nominally, the European securitization market was ready to make a last sprint before heading towards the door for the summer holidays. On Friday, two ABS deals went into investors' pockets.
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Deutsche Bank offers up juicy spread for CMBS
Deutsche Bank is offering investors a juicy premium for its multi-jurisdictional Deco 2015-Charlemagne CMBS .
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UBS is 'Back in Black'
The Swiss bank was mandated for a French RMBS for Crédit Foncier de France – perhaps a surprising move for some who thought the bank was fully out of the securitization business.
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Freddie prices first jumbo CRT RMBS
Freddie Mac’s first ever credit risk transfer securitization tied to jumbo mortgages was priced on Thursday.
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Strong demand for US auto deals continues
Prime and subprime auto ABS deals encountered strong investor demand this week, with another transaction expected to be launched soon.
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JPM director retires from finance to work on DJ biz
Abhishek Mistry, JP Morgan’s executive director of mortgage research, has left the banking industry to focus on his DJ software business, a person at the bank has confirmed.
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Bavarian Sky to follow E-Carat in autos
Opel Bank (formerly part of what was GMAC) looked to wrap the sale of its E-Carat 8 deal this week, and BMW Bank announced it will follow with a deal from its Bavarian Sky German auto loan securitization shelf.
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RMBS issuers try different tactics to woo investors
Taking their cue from the successes of Precise and Paragon’s UK buy to let RMBS trades last week, three more RMBS issuers hopped into the market this week.
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Law firm copes with partner's departure
Cadwalader Wickersham & Taft is dealing with the departure of long-time US structured finance partner Robert Ughetta after several brushes with the law.
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Babson gives CLO price guidance
Babson Capital has given price guidance on its €416.2m Euro CLO 2015-1 BV, its third, with price guidance for its floating triple-A notes at 135bp over Euribor.
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Auburn oversubscribed thanks to discounts and bigger step-ups
Lead managers on Capital Home Loans post-crisis debut RMBS had books oversubscribed across all tranches on the new Auburn 9 by Wednesday afternoon, before increasing the deal size and pricing on Thursday.
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US Treasury reviews marketplace lending
The US Treasury is looking into regulation of the burgeoning marketplace lending sector, raising the possibility of ‘skin in the game’ rules for platforms and potentially ushering in the development of a secondary market.
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Goldman joins DB in CMBS pipeline
Goldman Sachs has announced it intends to sell a £646m loan to Logicor, a unit of private equity giant Blackstone, on a portfolio of 42 industrial properties in the UK.
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SoFi adds CS as joint lead for next ABS
Marketplace lender SoFi is set to bring its latest securitization in the next few days, adding Credit Suisse as a joint lead manager alongside Morgan Stanley and Goldman Sachs, according to a person familiar with the transaction.
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Basel firms up rule for simple securitizations
The Bank for International Settlements on Thursday released its final criteria for simple, transparent and comparable securitizations, standards which should lower capital charges for deals that qualify.
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Chew departs RHB structured finance team
Paul Chew, head of structured finance for RHB Bank Singapore has left the firm.
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Citi and Prosper advance P2P ratings but triple-A still challenging
Citi has received a single-A rating from Moody’s for a securitization of consumer loans originated through online lending platform Prosper, the second deal of its type to be publicly rated.
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Former head trader at RBS joins minority investment bank
Patrick Beranek has been hired by the Mischler Financial Group’s capital markets division as the managing director of structured products, according to the company website.
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New subprime auto deal on the way
Flagship Credit Acceptance is bringing its second subprime auto transaction of the year, four months after its last outing.
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Freddie Mac close to first jumbo risk transfer deal
Freddie Mac is close to selling a securitization of jumbo mortgages in what market participants are calling a threat to one of the only remaining parts of the US non-agency market.
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Tikehau keeps CLO momentum with hire
Tikehau has followed the pricing of its debut €354.7m CLO with a new hire for the business, as it builds up its team for a €1bn-€2bn programme.
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Initial price thoughts out for Towd Point RPL RMBS
Bank of America Merrill Lynch and JP Morgan sent initial price thoughts to potential investors in Towd Point Mortgage Trust’s new securitization of re-performing mortgages on Wednesday.
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Lloyds appoints head of New York ABS syndicate
Lloyds Bank has promoted a senior ABS trader in New York to be head of its North America ABS syndicate, according to an announcement from the firm.
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Securitization taps on full flow
Taking their cue from the successes of Precise and Paragon’s UK buy to let RMBS trades last week, three more RMBS issuers plan to price their deals this week.
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E-CARAT 8 adds to pipeline purge
Along with the three RMBS deals that have IPTs on screen, the successful pricing of German auto ABS E-CARAT 8 will virtually empty the visible European securitization pipeline.
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RBC bringing its first aircraft ABS
RBC Capital Markets has grabbed its first engagement as a bookrunner on an aircraft ABS issuance, according to a source close to the deal.
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Cap markets head leaves Carlyle real estate sub
Capital markets head Doug Lee has left Carlyle Group subsidiary Metropolitan Real Estate, according to a source at the company.
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Deutsche, Morgan Stanley launching new PACE deal
Deutsche Bank and Morgan Stanley have started marketing a new PACE securitization from HERO Funding Trust, according to a source working on the transaction.
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Members Equity sells its second post-crisis Oz RMBS
Members Equity Bank priced a A$1.5bn Australian RMBS, its first of the year.
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DB losing account bank biz on downgrade
Deutsche Bank has been removed as account bank from at least two securitizations following Standard & Poor’s downgrade of the bank’s credit rating to BBB+.
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Legacy non-agency RMBS widens on big sales
Legacy non-agency RMBS spreads widened last week as some investors took advantage of new liquidity to sell legacy paper.
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CFPB could tap auto ABS enforcer as new number two
The architect of the US Consumer Financial Protection Bureau’s enforcement strategy against non-bank auto lenders could take over as the agency’s deputy director, sources say.
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New round of US auto transactions flood market
Bankers working on NextGear’s $433.33m dealer floorplan ABS are planning to price the issuance midweek, amid another surge of deals for the asset class.
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Cerberus tweaks Auburn to cut extension risk
The capital structure on Auburn 9, the new buy-to-let RMBS sponsored by Cerberus Capital Management, has been tweaked to increase the step-up margin, reflecting investor nervousness about extension of the bonds.
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Center Parcs to buy back 'B' notes with £560m bond
Center Parcs UK, the holiday resort group being bought by Brookfield Property Group, issued a £560m high yield bond this week.
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RMB FX reforms to boost RMB usage, says HSBC
Reforms in China's foreign exchange system and capital account will see the renminbi take on a greater role in the global economy, leading to an "inevitable" inclusion of the currency in the Special Drawing Rights (SDR) basket of the International Monetary Fund (IMF), HSBC said in a July 20 report.
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Oil price casts shadow over Mexico’s ambitious energy reforms
Mexico’s energy reforms are a game-changer, with some saying oil and gas output could be doubled over the next 10 years, meaning the country could become one of the top five producers in the world, rivalling the likes of Iraq and China. However, the oil price needs to recover first for the ambitious programme to be fully realised. Philip Moore reports.
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Structured finance expert joins solar finance company
Khalil Qasimi, a former mergers and acquisitions head at Exelon, has joined commercial solar finance company Empower Energies as senior director of structured finance.
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Three banks propose social addition to Green Bond Principles
Three banks will publish on Monday a set of principles for social and sustainability bonds, which they suggest should be added as an appendix to the Green Bond Principles.
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Three banks propose social addition to Green Bond Principles
Three banks will publish on Monday a set of principles for social and sustainability bonds, which they suggest should be added as an appendix to the Green Bond Principles.
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Intex Solutions sets up shop in Shanghai
Structured finance analytics provider Intex Solutions has set up an office in Shanghai as it looks to meet the demands of China’s emerging securitisation market.
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Ravenous investors push GSE risk transfer spreads tighter
Fannie Mae’s third credit risk transfer securitization of the year was well oversubscribed and tightly priced, as more investors than ever pile into the asset class.
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Atlanta MBS lawyer takes two to Bryan Cave
Former name partner Rick White of Busch White Norton has rejoined Bryan Cave's real estate capital markets team in Atlanta, Georgia, bringing two colleagues with him.
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Carlyle rides out volatility, prices CGMS CLO 2015-2
Carlyle’s €414m Carlyle Global Market Strategies CLO 2015-2 priced late last Friday as the vehicle bore through a bumpy final two weeks of its marketing period.
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Fast-growing SFR ABS sponsor hires CFO
B2R Finance, which issued its first single-family rental ABS deal earlier this year, has hired a former senior executive at American Express and Fannie Mae as its CFO.
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Spark lit in ABS market as pipeline builds
The ABS pipeline in Europe is emptying fast, with deal after deal being announced on Thursday as issuers look to make up for lost time.
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Deutsche to serve up second multijurisdictional CMBS
Deutsche Bank is looking to sell what would be the second multijurisdictional CMBS in Europe since the crisis, a month after JP Morgan sold the first, backed by DoubleTree hotel properties in the UK and Amsterdam.
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Paragon and Precise reignite Europe's securitization market
Paragon Group and Precise Mortgages both launched and priced their UK buy-to-let RMBS deals on Thursday, paying higher spreads than on their last such deals.
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Fannie prices risk transfer deal, increases size
Fannie Mae’s third credit risk transfer securitization of the year has been priced, with the final size exceeding the sponsor's initial target.
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New US auto deals hit the road after busy week
World Omni Financial and Enterprise Fleet Management are marketing new auto deals which may go live next week, following a bumper week for the asset class.
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Freddie close to full risk-off on all STACRs
Freddie Mac is close to obtaining reinsurance coverage for all of the retained portions of its risk transfer securitizations, a vice-president at the firm told GlobalCapital.
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Blythe Masters to chair subprime auto ABS sponsor
Blythe Masters will serve as non-executive chairman of the board of directors at Santander Consumer USA Holdings, the consumer lender and subprime auto loan securitizer has announced.
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There are ways to fix FFELP ABS, says Deutsche
Issuers do have some options to improve the performance of FFELP student loan ABS, according to research analysts at Deutsche Bank.
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ICG announces two senior hires for European loans business
Intermediate Capital Group, the specialist asset manager, has made two additions to its 35-strong credit fund management team in Europe.
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TwentyFour brings in £250m for fund
TwentyFour Asset Management has raised £250m for its UK Mortgages Fund, which will invest in whole loans with an aim to securitize them in the future.
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Precise remains at initial levels as leads offer guidance
Precise has issued a capital stack and guidance on its buy-to-let RMBS, with the senior class remaining at the spread offered at the initial thoughts stage.
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Amex upsizes after large reverse enquiry
Strong investor demand after a couple of quiet weeks in ABS allowed American Express and Capital One to increase the size of credit card deals this week.
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More agency RMBS coming as banks up originations
Banks have disclosed that they originated more residential mortgages last quarter, but market participants say the loans will only be securitized in agency deals.
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400 Capital hires former RMBS banker
Structured credit investor 400 Capital Management has hired a new director with a background in investing and banking within residential and commercial mortgage debt.
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Paragon’s offered spread jumps 30bp from March
In the four months since Paragon priced its last UK buy to let RMBS, the lender’s outstanding bonds — along with much of the rest of the market — have drifted lower in price as Greece cast the pall of uncertainty over global capital markets.
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Auburn gets a makeover as Cerberus nears acquisition
The Auburn UK buy-to-let RMBS platform is making its return under a new owner, months after Lloyds TSB attempted to sell Auburn 8 but pulled the deal.
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Santander Consumer brings Drive deal in busy week for autos
Santander Consumer USA is bringing a new deal this week off its recently resuscitated Drive Auto platform for deep subprime auto loans.
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Issuer under ratings review launching new FFELP ABS
Nonprofit student lender Access Group Inc is launching a new Federal Family Education Loan Program (FFELP) ABS issuance, at the same time as Fitch Ratings is reviewing some of its earlier deals for downgrades.
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CLO manager replaces outgoing CFO
US middle-market lender and CLO manager Fifth Street Finance has promoted Steven Noreika to CFO, replacing Richard Petrocelli, who is leaving the firm.
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Barclays launching new whole business deal
Barclays plans to launch a $460m whole business securitization by auto services company Driven Brands next week, a source at the bank said.
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Greece wins a stay of execution, but pipeline still frozen
Despite having marketed their deals weeks ago, ABS issuers seem to still be sitting on the sidelines at the moment though markets reacted exuberantly to the news that Greece had struck a deal with its creditors.
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Macquarie Bank grinds spreads in on German RMBS
Macquarie became the only issuer to hit the European ABS market last week when it priced a €186.54m German RMBS deal.
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Carlyle rides out volatility to price CGMS CLO 2015-2
Carlyle’s €414m Carlyle Global Market Strategies CLO 2015-2 priced late Friday as the vehicle bore through a bumpy final two weeks of its marketing period.
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European ABS hits a milestone, says S&P
European ABS has hit a post-crisis marker, as default rates continue to decrease and deals are upgraded, according to S&P.
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Mortgage bond PM departs Citadel
Sam Choi, a mortgage bond portfolio manager at Citadel in New York, is no longer working for the firm, according to a GlobalCapital source.
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New rule could mean FFELP prepays, says Deutsche
The US government's proposal to expand student debt relief could mean better recoveries for investors in securities backed by student loans, according to Deutsche Bank.
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Investors oversubscribe to Cabela's credit card ABS
A $400m securitization of Cabela’s credit card receivables was oversubscribed by the time it was priced late on Wednesday, a source familiar with the deal said.
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Wyndham priced too tight for some investors
Wyndham Consumer Finance’s timeshare ABS issuance was priced a little too tightly for some investors in a slow week for ABS.