Securitization - Article Archive

  • Auto issuers may rush to market ahead of Reg AB II deadline

    October could be a month of high deal traffic for auto ABS before new amendments to current Regulation AB II disclosure requirements kick in.

    • 30 Sep 2015
  • CLO market wins risk retention debate

    European CLO issuers are off the regulatory hook following a reworking of the language defining simple, transparent and standardised (STS) securitizations.

    • 30 Sep 2015
  • CMU heralds new approach to regulation, but can it work?

    The European Commission’s action plan for Capital Markets Union in Europe was largely welcomed by market participants, but some question whether approaching financial regulation without broad legislation can work, and whether the initiatives will come in fast enough to drive growth in Europe.

    • 30 Sep 2015
  • RBS moves structured corporates team out of CIB

    RBS has moved its structured corporate financing team out of CIB, and into commercial and private banking.

    • 30 Sep 2015
  • Marketplace lenders look to scale up through securitization

    Marketplace lenders hope to breathe new life into the European securitization market with portfolios of peer-to-peer loans. But as with established asset-backed securities markets, the regulatory environment poses some concerns.

    • 30 Sep 2015
  • Loan on crowdfunded property transfers to CMBS special servicing

    Crowdfunding, a hot topic in the ABS markets recently, looks like it may have been the cause of a headache for CMBS investors this month, as a loan was transferred to special servicing potentially as the result of crowd financing on the assets.

    • 29 Sep 2015
  • NN Bank issues IPTs for new Hypenn 4 Dutch RMBS

    Nationale-Nederlanden Bank (NN Bank) has issued initial price thoughts for its Dutch RMBS transaction from its Hypenn programme.

    • 29 Sep 2015
  • ING primed for A$750m RMBS return

    ING is making a return to the Australian RMBS market with its well-established IDOL series, which is expected to free up A$750m ($526m) for the Dutch lender.

    • 29 Sep 2015
  • Deutsche, Cantor price conduit as top loan draws investor ire

    Investors pushed back this week against the largest loan in COMM 2015-CCRE26, forcing lead issuers Deutsche Bank and Cantor Commercial Real Estate to widen spreads twice from guidance before being able to price the deal on Wednesday.

    • 28 Sep 2015
  • KKR Financial braves buyers’ market in Euro CLOs

    KKR Financial hit a tough market with its €516.8m Avoca XV CLO — the first European CLO to be priced since mid-August.

    • 28 Sep 2015
  • Yellen speaks clearly: it’s analysts who can’t listen

    There is no better illustration of human diversity than a US Federal Reserve press conference. Thousands of financial specialists, mostly with similar educations and backgrounds, listen to them at the same time.

    • 24 Sep 2015
  • RBS: a bond bank laid low unnecessarily

    Investment banks, like empires, rise and fall — only rather faster. In December 1997, EuroWeek (forerunner of GlobalCapital) covered the first bond on which Royal Bank of Scotland appeared in the syndicate, as a co-manager.

    • 24 Sep 2015
  • Madden outcome not the only headwind facing marketplace lenders

    The outcome of the Madden v. Midland Funding case, which renders it illegal for marketplace lenders in the US to avoid state usury laws, may not bode well for the sector, but looming over the future of the burgeoning market is an even bigger question, writes Sasha Padbidri.

    • 24 Sep 2015
  • ECB makes big shifts in ABSPP

    The European Central Bank has handed more responsibility for ABS purchases to national central banks, in an attempt to rejuvenate an ABS purchase programme (ABSPP) described as ‘disappointing’ on Wednesday morning by ECB Governing Council member Ewald Nowotny.

    • 24 Sep 2015
  • VW shrugs off headwinds with Driver España auto deal

    Volkswagen’s Driver España deal was priced in line with guidance on Tuesday, with ABS investors undeterred by Monday’s 20% drop in the benchmark issuer’s share price as a result of its US emissions data scandal.

    • 24 Sep 2015
  • BAML’s Taurus deal a struggle amid volatility concerns

    A long awaited multi-jurisdictional CMBS from Bank of America Merrill Lynch was priced in line with expectations on Wednesday but perception of the deal's success was mixed.

    • 24 Sep 2015
  • Stakeholders criticise Blackstone’s Afren role

    Concerns over a potential conflict of interest in the process for winding up Afren, the oil exploration company, have further irked shareholders, creditors and employees of the firm, still reeling from its sudden collapse at the end of July.

    • 24 Sep 2015
  • NN Bank launches second prime Dutch RMBS

    Nationale-Nederlanden Bank (NN Bank) have mandated a new Dutch RMBS transaction from its Hypenn shelf, the fourth transaction from the programme.

    • 24 Sep 2015
  • Colony launches commercial real estate CLO

    Colony Mortgage Capital on Tuesday launched a commercial real estate CLO into a quiet Wednesday market, as many investors and traders were absent in observance of this week’s Jewish holiday.

    • 23 Sep 2015
  • ECB makes big shifts in 'disappointing' ABSPP

    The European Central Bank has handed more responsibility for ABS purchases to national central banks, in an attempt to rejuvenate an ABS purchase programme (ABSPP) described as ‘disappointing’ on Wednesday morning by ECB Governing Council member Ewald Nowotny.

    • 23 Sep 2015
  • Resi solar platform Sunlight Financial eyes securitization

    Residential solar lending platform Sunlight Financial has plans to issue a residential solar ABS, following a capital raise of $300m in debt and equity, the company announced on September 16.

    • 22 Sep 2015
  • Marketplace lender adds CMBS expert

    California-based commercial real estate marketplace lender Money360 has added CMBS expert Gary Bechtel as president. Speaking with GlobalCapital, Bechtel said the company would potentially be looking to tap the securitization market for funding in the future.

    • 22 Sep 2015
  • VW shrugs off headwinds with Driver España auto ABS deal

    Volkswagen’s Driver España deal priced in line with guidance on Tuesday, with ABS investors clearly undeterred by Monday’s 20% drop in the benchmark issuer’s share price as a result of the US emissions data scandal.

    • 22 Sep 2015
  • With risk retention, regulators are aiming a gun at their own feet

    European policymakers have identified CLOs as a way to help channel credit to SMEs. So the risk retention rule they are planning to implement makes no sense at all.

    • 22 Sep 2015
  • STACR deal launches as Freddie transitions to actual loss

    The latest risk-sharing deal from Freddie Mac launched on Thursday, as the government-sponsored agency transitions to an actual loss structure.

    • 21 Sep 2015
  • SFR giants Starwood Waypoint, Colony American Homes to merge

    The single family rental arms of Colony Capital and Starwood Capital Group announced on Monday plans to merge in a stock-for-stock transaction that will bring over 30,000 homes under the group’s collective management.

    • 21 Sep 2015
  • Germany’s Schaeffler to cut opco and holdco debt with IPO

    Schaeffler, the ball bearing maker is to conduct an IPO this year, aiming to raise several billion euros to repay debt.

    • 21 Sep 2015
  • Second Warwick deal swells before pricing

    The Co-Operative Bank’s second UK non-conforming RMBS from the Warwick shelf was priced on Thursday, swelling from £1bn to £1.65bn by the time the deal was sold.

    • 21 Sep 2015
  • Equities pulling spreads wider in ABS

    Troubled equity markets are largely behind recent widening in the European ABS markets as Volkswagen looked to sell its Spanish auto loan backed deal this week

    • 21 Sep 2015
  • Investor panelists sceptical of innovations in ABS

    The buyside, squeezed by lack of liquidity and a relatively pallid new issue market in attractively priced securitization assets, is nonetheless wary of innovations that could represent a risky move to work around regulations, panelists at Friday’s opening session at ABS East said.

    • 18 Sep 2015
  • Triple-A headed for triple digit spreads

    Strong deal flow is one of several barriers to tighter spreads in the ABS market, and some traders are predicting triple-A spreads in certain asset classes to hit 100bp in the next year.

    • 18 Sep 2015
  • "Time to rethink" housing policy - keynote

    Not just Freddie Mac and Fannie Mae, but perhaps the American dream of home ownership itself, are in need of a revamp, former heads of the Federal Housing Finance Agency and the Office of Federal Housing Enterprise Oversight said on Thursday.

    • 17 Sep 2015
  • RMBS 3.0 heralds headache for rating agencies

    RMBS 3.0 is starting to take shape, but rating agencies are going to have a tough time assigning value to all the bells and whistles that industry groups are working to hang on the new structure.

    • 17 Sep 2015
  • US Pace securitization market primed to explode

    Issuance of property assessed clean energy (Pace) loan securitization is set to “explode,” according to industry figures.

    • 17 Sep 2015
  • New look for post-crisis ABS but is it better?

    Financial crisis hindsight has been a favorite topic of discussion at ABS industry events since, well, the financial crisis. “Where did we go wrong?”, “How could we have known?”, “The market had never seen a widespread default in etc. etc.”

    • 17 Sep 2015
  • Are CLOs nearing the end of the cycle? Pros debate

    The CLO market is approaching a set of both new and familiar challenges, including regulation and sector specific risk, but credit deterioration is at the top of concerns for some market participants.

    • 17 Sep 2015
  • Pace securitization primed to explode

    Issuance of property assessed clean energy (Pace) loan securitization is set to “explode,” according to industry figures.

    • 17 Sep 2015
  • Are CLOs nearing the end of the cycle? Pros debate

    The CLO market is approaching a set of both new and familiar challenges, including regulation and sector-specific risk, but credit deterioration is at the top of concerns for some market participants.

    • 17 Sep 2015
  • RMBS 3.0 heralds headache for rating agencies

    RMBS 3.0 is starting to take shape, but rating agencies are going to have a tough time assigning value to all the bells and whistles industry groups are working to hang on the new structure.

    • 17 Sep 2015
  • Investment grade and leveraged loans, news in brief — September 18, 2015

    Borealis — Ardian — Com Hem — Tikehau — Technicolor

    • 17 Sep 2015
  • Post-crisis, ABS has a different look, but it's not necessarily better

    Financial crisis hindsight has been a favorite topic of discussion at ABS industry events since, well, the financial crisis. “Where did we go wrong?”, “How could we have known?”, “The market had never seen a widespread default in etc. etc.”

    • 17 Sep 2015
  • Co-op to brave heavy market conditions in UK RMBS sector

    The traditionally small investor base for UK RMBS has been hit with a wave of supply over the past three months. CarVal, Mars Capital, Precise and Paragon have all brought large UK RMBS deals to the market, and bankers have questioned whether the investors can continue to absorb this high level of supply.

    • 17 Sep 2015
  • VW to tap strong euro auto ABS demand

    BNPP, HSBC, and Volkswagen Financial Services are expected to price the €665m Driver España Two Spanish auto loan ABS deal next week.

    • 17 Sep 2015
  • BAML to test investor appetite for multi-jurisdictional CMBS

    Bank of America Merrill Lynch has circulated initial price thoughts on its €177m Taurus 2015-3 DAC CMBS deal, the securitization of two loans to Starwood Capital’s MStar Europe commercial real estate joint venture with M7 Real Estate.

    • 17 Sep 2015
  • Mizuho ramps up in structured as high yield head departs

    Mizuho International is pushing to upgrade its structured solutions business with two experienced banker hires, but has indicated a retreat from high yield by saying it will not replace its exiting European head of high yield credit trading.

    • 17 Sep 2015
  • Irish RMBS performance should see boost from increased restructuring

    Irish late stage mortgage arrears remain among the highest in Europe. According to Moody’s, the increased use of long term restructuring options has improved the country's mortgage arrears crisis, but it is far from resolved.

    • 17 Sep 2015
  • WiS working group to help women over hurdles in ABS

    Women in Securitization, a Structured Finance Industry Group initiative, laid out key methods for women to overcome the challenges they face at a packed panel discussion on Wednesday.

    • 16 Sep 2015
  • HQS 'scarlet letter' threatens to isolate US

    The US risks becoming “incredibly isolated” in its approach to securitization regulation, as Europe and potentially other regions implement standards for high quality securitization, delegates at IMN’s ABS East conference heard.

    • 16 Sep 2015
  • Marketplace lending hits headwinds

    A recent ruling restricting marketplace lenders' ability to avoid usury laws could have a big impact on the secondary market for loan purchasing, said conference panellists at Wednesday's session on marketplace lending.

    • 16 Sep 2015
  • Seven years on, ratings reform still needs work

    Seven years after the crisis brought the reliability of credit ratings into question, parts of the sector are still in need of reform, issuers, investors and ratings officials told a standing room only crowd on day one of ABS East.

    • 16 Sep 2015
  • Issuers and investors hit Miami in droves for ABS East

    The heat was very much on in Miami, where IMN registered more than 4,000 attendees for its 21st annual ABS East conference, held at the Fontainebleau in Miami Beach this week.

    • 16 Sep 2015
  • Mizuho ramps up in structured solutions with co-head hires

    Mizuho International has hired two experienced bankers as co-heads of structured solutions, as it makes a push to upgrade its offering of structured products to clients.

    • 16 Sep 2015
  • ABS East, Miami Beach: The official news service

    GlobalCapital is once again proud to be the lead media partner for IMN’s ABS East conference in Miami Beach. We’ll be providing you with daily conference news online and in our ABS East daily papers, which you will find around the Fontainebleau on Thursday and Friday.

    • 16 Sep 2015
  • Granite sale could drive supply shock in UK RMBS

    Banco Sabadell is rumoured to be interested in acquiring Granite, UK Asset Resolution’s portfolio of bad bank assets. The Spanish bank's acquisition of the assets could shock the supply-demand dynamic in the UK RMBS sector.

    • 16 Sep 2015
  • Ford Auto Finance (China) expands funding channel

    Auto finance companies are set for a return to the Chinese interbank bond market for the first time in five years, with Ford launching an Rmb2bn ($314m) trade on September 17.

    • 16 Sep 2015
  • Agencies ready common securitization

    Fannie Mae and Freddie Mac are on track with the development of the common securitization platform and issuance of the single security, but investors who were hoping the platform could do anything to aid in the resurgence of the private label MBS market were disappointed.

    • 15 Sep 2015
  • HEARD IN THE HALLS

    • 15 Sep 2015
  • Smaller size expected for Co-op’s second Warwick Finance UK RMBS deal

    The second deal from Co-op’s residential mortgage portfolio looks set to be a more modest transaction than the first, due to more challenging market conditions driven by high levels of supply and a limited investor base.

    • 15 Sep 2015
  • Rating agencies approach a crossroad in CMBS

    Last month Moody’s Investors Service announced it would be taking comments on a proposal to loosen its criteria for rating single borrower CMBS. Let's hope this is not part of a ratings race to the bottom.

    • 15 Sep 2015
  • CMBS players eye shake-up as S&P nears end of ban

    Ratings on CMBS conduit deals have been a big talking point in 2015, and Standard and Poor’s is set to wade back into the market at a time observers say is a low point in the current cycle for CMBS loan underwriting.

    • 15 Sep 2015
  • Wave of supply weighs on CMBS in September

    Investors in both CMBS primary and secondary markets are bracing themselves for a glut of issuance this month, as numerous factors are conspiring to potentially drive spreads out further from two-year wides seen in August.

    • 15 Sep 2015
  • Q&A with Eric Thaller, Prosper Marketplace

    This year is shaping up to be a breakout year for marketplace lending. Lenders are once again on track to double their origination volumes and more platforms having been tapping securitization as a funding source. Total loan originations could hit $25bn this year, up from $11bn in 2014, and the year so far has seen nearly $1.6bn of loans securitized, up from around $900m last year.

    • 15 Sep 2015
  • Auto ABS leads structured finance sector with almost $80bn in issuance

    Early September was a period of active issuance for auto ABS, with five transactions in the market, and four already priced, wrote S&P analysts.

    • 14 Sep 2015
  • No pricing clarity after CMBS pair price

    Bank of America and UBS priced BACM 2015-UBS7 Monday afternoon, just ahead of the launch of Citi and Goldman Sachs’ CGCMT 2015-GC33, though investors say the considerable difference in the pricing of the deals’ super senior triple-A bonds failed to provide a hint on where spreads may head for the rest of the month.

    • 14 Sep 2015
  • BAML to test investor appetite for multi-jurisdictional CMBS

    Bank of America Merrill Lynch has circulated initial price thoughts on its €177 million Taurus 2015-3 DAC CMBS deal, the securitization of two loans to Starwood Capital’s MStar Europe commercial real estate joint venture with M7 Real Estate.

    • 14 Sep 2015
  • Co-op goes for size in uncertain market

    The Co-operative Bank is going for size once again with its second UK non-conforming RMBS deal from the Warwick shelf.

    • 14 Sep 2015
  • CarVal offloads former Future Mortgages UK portfolio

    CarVal Investors were back in the UK non-conforming RMBS sector this week with Dukinfield Plc, a deal backed by a legacy portfolio of mortgages acquired from former lender Future Mortgages.

    • 11 Sep 2015
  • Australia heats up with Citi’s A$1.2bn RMBS

    Citi has kept the red hot Australian RMBS market going with a A$1.2bn ($860m) transaction that priced on September 11. And similar to Commonwealth Bank of Australia’s (CBA) deal this month, Citi too was able to print a much bigger deal than initially planned.

    • 11 Sep 2015
  • ABS deal volume builds up for September

    The volume of new issuance is steadily growing, with five auto deals currently in the market, three of which are expected to price late this week.

    • 10 Sep 2015
  • Carmakers’ euro and sterling auto ABS deals priced

    Mercedes-Benz’s Silver Arrow S.A. Compartment 6 deal was priced at a tighter spread than initial price thoughts on Tuesday, demonstrating a strong level of investor demand for euro auto loan ABS, while Volkswagen’s Driver UK Three sterling auto loan deal was priced in line with expectations.

    • 10 Sep 2015
  • SAIC-GMAC ABS sticks to the middle lane

    Auto finance companies are taking the Chinese ABS market by storm this year with SAIC-GMAC adding to the surging volumes with a Rmb3bn ($471m) transaction this week. Even though pricing came just slightly above the middle of guidance, bankers on the trade said it was a level the company was more than happy to take.

    • 10 Sep 2015
  • Wave of supply weighs on primary, secondary CMBS markets

    Investors in both CMBS primary and secondary markets are bracing themselves for a glut of issuance this month, as numerous factors are conspiring to potentially drive spreads out further than the two-year wides seen in August.

    • 09 Sep 2015
  • Wilmington Trust adds talent from Deutsche, BNY and Wells

    Structured finance veterans Rick D’Emilia, Ben Jordan and Steve O’Neal are the latest additions to the firm’s capital markets structured finance team, a spokesperson told GlobalCapital.

    • 09 Sep 2015
  • Carmakers’ euro and sterling auto loan ABS deals priced

    Mercedes-Benz’s Silver Arrow S.A. Compartment 6 deal was priced at a tighter spread than initial price thoughts on Tuesday, demonstrating a strong level of investor demand for euro auto loan ABS, while Volkswagen’s Driver UK 3 sterling auto loan deal priced in line with expectations.

    • 09 Sep 2015
  • Prytania favours Curry for biz dev

    Shaun Curry has joined asset manager Prytania to cover institutional business development across the globe with the exception of the United States.

    • 09 Sep 2015
  • Price talk out on latest SFR offering

    Price talk was out on Tuesday for the latest single-family rental securitization, American Homes 4 Rent 2015-SFR2.

    • 08 Sep 2015
  • Five deals enter post-Labor Day ABS pipeline

    This week sees four auto transactions and one equipment deal heading up the September pipeline.

    • 08 Sep 2015
  • Is securitization the Betamax of finance?

    What if securitization was just a convenient halfway house before the next evolution of finance?

    • 08 Sep 2015
  • Lack of issuance hinders ECB ABSPP

    Due to new purchases failing to match redemptions, holdings in the European Central Bank ABS purchase programme fell for the first time last week. ECB Governing Council member Ewald Nowotny admitted that the programme was failing, blaming a lack of structured products in the market for the €100m fall in holdings.

    • 08 Sep 2015
  • A&O hires structured finance partner from Latham

    Allen & Overy has hired a new partner from Latham & Watkins for its real estate finance group.

    • 08 Sep 2015
  • ECB allows private covered bonds as repo collateral

    The European Central Bank amended its collateral rules last week to allow banks to post non-marketable collateral for its regular monetary operations, as long as it is packaged in covered bond-style dual recourse instruments.

    • 07 Sep 2015
  • Obvion sets the mood for European ABS

    Investors are back in their seats and clearly hungry for paper, as illustrated by the final book size on Obvion’s recent Storm Dutch prime RMBS, but spreads aren’t likely to shoot back to pre-summer levels as macroeconomic uncertainty abides.

    • 07 Sep 2015
  • Citi keeps momentum going for Australian RMBS

    Citi has been quick to capitalise on the reopening in the Australian RMBS market with a new A$500m ($346m). It follows hard on the heels of Commonwealth Bank of Australia’s (CBA) recent A$2bn trade that came after a jittery period in markets.

    • 07 Sep 2015
  • CBA trumps volatile markets with bigger A$2bn RMBS

    The recent volatility experienced across global markets proved no obstacle to a RMBS trade from Commonwealth Bank of Australia. While the jittery market did force CBA to price at the investor-friendly end of guidance, the Australian bank managed to raise A$2bn ($1.4bn), double what it originally conveyed.

    • 04 Sep 2015
  • Equipment deals lead esoteric ABS pipeline

    The esoteric ABS market this week saw Commercial Credit Group bring a new deal and John Deere Capital price its transaction.

    • 03 Sep 2015
  • Four auto deals to market in September

    The auto sector enjoyed a surge in post-summer issuance after two weeks of sluggish deal flow.

    • 03 Sep 2015
  • Market weighs XO as hedge for CLOs

    The touting of Crossover tranches as a hedge for CLO investments has prompted debate in the market, with some seeing the instrument as adding a useful tool while others remain sceptical.

    • 03 Sep 2015
  • European ABS issuers burn rubber after bank holiday

    The European structured finance pipeline got off to an energetic post-summer start, with a UK auto ABS, a German auto ABS, two UK non-conforming RMBS, a UK prime RMBS and a Dutch prime RMBS all being prepared to hit the primary market.

    • 03 Sep 2015
  • BAML to test CMBS spreads with multijurisdictional deal

    The European CMBS market is about to get its third post-crisis multi-jurisdictional CMBS, after more than a month of silence in the primary market for the asset class.

    • 03 Sep 2015
  • CMBS players eye shakeup as S&P nears end of ban

    The end of S&P’s CMBS conduit ratings ban in a few months could start a fight between the agencies for market share — at the expense of credit standards.

    • 03 Sep 2015
  • CBA all set for A$1bn RMBS return

    Commonwealth Bank of Australia (CBA) is back in the RMBS market with an A$1bn ($718m) transaction that is due to price on Friday.

    • 03 Sep 2015
  • Storm battles poor weather in securitization

    Dutch mortgage lender Obvion has braved the difficult conditions in the European securitization primary markets to launch a new deal.

    • 03 Sep 2015
  • Four come to market and one prices in ABS primary

    Auto ABS sees traffic build up for this September while equipment ABS gains momentum with a tightly priced deal.

    • 02 Sep 2015
  • Reitaly finally crosses the line, with a discount

    Goldman Sachs has priced its Reitaly CMBS, after initially postponing it and then restructuring the deal to give more protection to the most senior bondholders.

    • 02 Sep 2015
  • Survey reveals big appetite for SME ABS

    Investors are hot on SME ABS, expecting the asset class to grow over the next two years, according to a survey by specialty lender Amicus.

    • 02 Sep 2015
  • CMBS spreads under pressure as September rolls in

    A heavy September pipeline and market volatility are set to put pressure on new issue CMBS conduit spreads for the foreseeable future.

    • 01 Sep 2015
  • Equipment ABS leads post-summer pipeline

    John Deere Capital Corp and Commercial Credit Group Inc will be bringing equipment deals into the market after two weeks of low deal flow for the asset class.

    • 01 Sep 2015
  • Ex-RBS FIG and securitization boss quits Virgin Money

    Lee Rochford has stepped down as chief financial officer of Virgin Money, effective immediately.

    • 01 Sep 2015