Securitization - Article Archive

  • Marketplace loan ABS gets newcomer with Earnest offering

    California-based online consumer lending platform Earnest is marketing EARN 2016-A, a debut rated transaction backed by student loans.

    • 28 Jan 2016
  • US CMBS spreads gap out on back of macro woes, fundamental uncertainty

    The 2016 CMBS pipeline opened up this week, but investors were quick to demand wider spreads to compensate for not only macroeconomic volatility, but what observers say is a deepening uncertainty in CMBS market fundamentals.

    • 28 Jan 2016
  • Mezz spreads widen in CLO secondary market

    Mezzanine CLO spreads have widened in the secondary trading as credit markets remain under pressure from the widespread volatility that has characterized the year so far.

    • 28 Jan 2016
  • Principality draws £475m with Friary

    Principality Building Society priced its Friary No.3 prime UK RMBS deal on Thursday afternoon, landing £475m in what one banker called a ‘tricky’ market.

    • 28 Jan 2016
  • USAID-backed securitization to boost Armenian microenterprises

    Microfinance loans originated by Armenian lenders have been bundled into the country’s first securitization, in a $2m deal coordinated and backed by the US Agency for International Development (USAID).

    • 28 Jan 2016
  • Syndicate veteran to run credit sales at Lloyds

    One of Lloyds Bank's most senior syndicate officials will switch jobs and run credit sales for the firm.

    • 28 Jan 2016
  • FFELP woes hold back issuance, but hope remains

    The near-term prospect for new Federal Family Education Loan Program (FFELP) ABS issuance is uncertain against the backdrop of market volatility and the threat of widespread downgrades, but market players are still hoping for a strong showing for the beleaguered asset class in 2016.

    • 27 Jan 2016
  • WinWater to sell jumbo RMBS

    WinWater Home Mortgage is looking to sell its first prime jumbo RMBS transaction of the year in a deal structured by Wells Fargo and Bank of America Merrill Lynch.

    • 27 Jan 2016
  • Italy attempts NPL fix with controversial state guarantee

    Italy hopes a new deal with the European Commission will encourage the securitization of non-performing loans, which have stunted the recovery of the Italian banking sector. But market insiders are unconvinced it will work, writes David Bell.

    • 27 Jan 2016
  • NEF markets third equipment ABS

    National Equipment Finance (NEF) this week re-entered the ABS market with its third equipment lease and loan ABS, over a year since its last transaction in October 2014.

    • 26 Jan 2016
  • Post-crisis RMBS called without loss

    Three post-crisis US prime jumbo RMBS transactions have been called without incurring any loss, according to Fitch Ratings.

    • 26 Jan 2016
  • VW strips emissions scandal safety net from ABS deal

    Volkswagen has removed an €89m reserve fund from its VCL Master Residual Value transaction, after the company said that none of the CO2 emissions affected vehicles would be repurchased by the seller.

    • 26 Jan 2016
  • Beijing Hyundai searches for Autopia with Rmb1.5bn ABS

    Beijing Hyundai Auto Finance is set to make its mark on the Chinese auto ABS sector for the first time with its Rmb1.5bn ($228m) Autopia China 2016-1 Retail Auto Mortgage Loan Securitization Trust.

    • 26 Jan 2016
  • CIG marketing first rated subprime auto deal

    California-based auto lender CIG Financial re-entered the market on January 21 with its first rated subprime auto loan ABS, after a year-long hiatus from the product.

    • 25 Jan 2016
  • HPA lands first SFR deal of 2016

    Home Partners of America launched HPA 2016-1 on Monday, the first single family rental (SFR) transaction of 2016.

    • 25 Jan 2016
  • Babson, Voya price first US CLOs of 2016

    The first US CLO deals of 2016 were priced on Monday, after being held up last week by investor concerns over widespread volatility that wreaked havoc across financial markets.

    • 25 Jan 2016
  • Turmoil in oil markets casts shadow over US CLOs

    The weakening credit quality of exploration and production and oilfield services companies is threatening to take its toll on the US CLO market.

    • 25 Jan 2016
  • First Dutch RMBS of 2016 draws €1.8bn as dovish Draghi boosts market

    Obvion pulled in €1.8bn with its latest offering from the Storm programme last Friday afternoon, with execution of the deal benefiting from the improved market sentiment following Mario Draghi’s dovish speech on Thursday. David Bell reports.

    • 25 Jan 2016
  • Italian lease ABS deal priced amid volatility

    Monte dei Paschi di Siena rode out a turbulent week to price a €761.3m lease ABS deal last Thursday afternoon, attracting a strong level of real money investment.

    • 25 Jan 2016
  • SolarCity prices loan backed ABS deal

    SolarCity, the largest residential solar developer in the US, has priced a $185m securitization, the first backed entirely by loans made to homeowners for the financing of solar panel installation.

    • 22 Jan 2016
  • US CLO 1.0 defaults increase

    The median default holdings among US CLO 1.0 defaults grew by 19bp from September to October 2015 to 1.75%, according to CLO research from Moody's Investors Service.

    • 22 Jan 2016
  • Navient deal kicks off 2016 SLABS

    Student loan servicer Navient has jump started the student loan ABS market with the first private student loan ABS deal of the year, as analysts predict stronger performance for the asset class in 2016.

    • 21 Jan 2016
  • RMBS settlement marks turning point for crisis-era litigation

    The RMBS market may be nearing the final chapter of legal efforts to call large institutions to account for the financial crisis.

    • 21 Jan 2016
  • Italian utilities boost minibond ABS deal

    Four new Italian water utility companies have joined an innovative minibond securitization arrangement in the Veneto region that enables small public sector operators to reduce their reliance on traditional bank channels for infrastructure investment.

    • 21 Jan 2016
  • Volatility slows first CLOs as debt investors hunt wider spreads

    Volatility has slowed the pricing of the first US CLO deals of the year as debt investors seek wider spreads amid deepening uncertainty in the broader markets.

    • 20 Jan 2016
  • Longer loan terms in auto ABS spur talk of weaker performance

    Ally Bank and Ford Credit are the latest issuers to feature higher proportions of longer term loans in their auto ABS offerings, creating talk of weaker performance in both prime and sub-prime lending sectors.

    • 20 Jan 2016
  • Volkswagen plans Spanish auto ABS return

    Volkswagen Finance is planning to tap the Spanish auto ABS market for the second time in four months, with a new €665m deal that is likely to price wider than last September’s deal.

    • 20 Jan 2016
  • ABS market welcomes Storm in Dutch RMBS

    The European ABS market is rolling on despite wider market volatility, with Obvion releasing what market participants have described as “attractive” price thoughts for its Storm 2016-1 Dutch RMBS deal.

    • 20 Jan 2016
  • Guidance for first CMBS of 2016 sets ominous tone

    The CMBS market is edging closer to some of the most bearish predictions for spreads in 2016 only three weeks into the year.

    • 19 Jan 2016
  • Risk retention to hit CLO issuance in 2016

    The US CLO market will likely see issuance fall this year, despite a flurry of deals in the last quarter of 2015, as concerns over risk retention continue to keep the market awake at night.

    • 19 Jan 2016
  • Enova sells first P2P ABS offering via Jefferies

    Chicago based online lender Enova has kicked off the 2016 marketplace loan ABS pipeline with a private, unrated securitization led by Jefferies.

    • 19 Jan 2016
  • CS markets BlackRock CLO as supply set to fly

    Credit Suisse is marketing a new €410m CLO from BlackRock Investment Management, which could be priced before the end of January, as Bank of America Merrill Lynch predicts net supply in European CLOs in 2016 will be positive for the first time since 2008.

    • 19 Jan 2016
  • Football clubs unlock transfer fees with ABS

    A specialist capital solutions provider has priced a $73m securitization backed by player transfer fees and media rights receivables owed to a group of European football clubs, the first football related ABS deal since the financial crisis.

    • 18 Jan 2016
  • Issuers line up to follow Virgin in RMBS

    Following Virgin Money’s well subscribed, market-opening UK prime RMBS deal, Obvion is set to print a large Dutch RMBS deal, while Principality Building Society has mandated leads for a third UK RMBS deal from its Friary shelf.

    • 18 Jan 2016
  • Basel slashes planned ABS trading charge

    The Basel Committee on Banking Supervision (BCBS) published its final version of new rules for trading assets at banks. The rules will push up market risk regulatory capital requirements by 40% – but are still far less punitive than the industry had feared, especially for the securitization market.

    • 14 Jan 2016
  • Time is ripe for C-PACE securitization in US mart

    Market participants are optimistic that a commercial Property Assessed Clean Energy (C-Pace) securitization will hit the market in the second half of 2016, as issuers look to increase origination volumes.

    • 14 Jan 2016
  • Damp mood at CREFC bash as market braces for CMBS turmoil

    The skies were grey over the annual CREFC industry event in Miami Beach this week, matching the mood of CMBS market players who agreed that the good times of the past four years were behind them and that they should brace for a tumultuous 2016.

    • 14 Jan 2016
  • First SFR deal of 2016 tests new approach

    The first single-family rental (SFR) deal of the year could introduce the market to a new tenant focused approach to investing.

    • 14 Jan 2016
  • Securitization soothes troubled Monte dei Paschi

    Concerns about non-performing loans and capital levels at the world’s oldest bank, Monte dei Paschi di Siena, have not deterred the Italian issuer from preparing a new €1.4bn securitization of leases to domestic small and medium enterprises. David Bell reports.

    • 14 Jan 2016
  • Multi-currency Virgin Money deal attracts healthy demand

    Virgin Money's prime UK RMBS transaction Gosforth Funding 2016-1 is set to be priced on Friday, with the deal attracting strong demand across all three currencies on offer.

    • 14 Jan 2016
  • German auto ABS moves tighter with Ford

    German auto ABS pricing retraced slightly on Thursday as Ford Credit Europe sold its Globaldrive transaction, with market participants hoping the asset class can avoid further emissions scandal driven volatility.

    • 14 Jan 2016
  • CLO market lifts off with Babson, Voya deals

    The waiting game is over for CLO investors as the market hums to life following a slow start to the year.

    • 14 Jan 2016
  • AXA IM poaches Natixis ABS trader

    AXA Investment Managers has hired Natixis ABS trader The Duy Nguyen as a senior portfolio manager in its structured finance team.

    • 14 Jan 2016
  • RealtyMogul hires, plans inaugural securitization

    Online real estate lender RealtyMogul has hired Michelle Paretti as senior managing director and head of originations and underwriting, as the marketplace lender plans its first ever securitization in 2016.

    • 13 Jan 2016
  • Virgin Money deal shows dollar spreads widening in UK RMBS

    Leads have released initial price thoughts for Virgin Money's prime UK RMBS transaction, Gosforth Funding 2016-1, with pricing suggesting dollar denominated UK RMBS has moved wider in comparison to euro and sterling tranches.

    • 13 Jan 2016
  • Freddie Mac to sell $99m small balance multifamily deal

    Freddie Mac has announced FRESB 2016-SB11, a $98.97m securitization of small balance multifamily loans.

    • 13 Jan 2016
  • Varde readies UK CMBS deal for syndication

    Varde has mandated leads for a secondary placement of its £184.6m ($265.96m) MagniFinance CMBS transaction, which the issuer retained in December last year.

    • 13 Jan 2016
  • VW drives past BMW for tightest priced China auto ABS

    Volkswagen kicked off the Chinese auto ABS market this week, raising Rmb2.99bn ($460m) from the sector’s tightest priced transaction yet.

    • 13 Jan 2016
  • Investors look hungry for big Italian lease ABS

    MPS Leasing and Factoring Spa, a wholly owned entity of Banca Monte dei Paschi di Siena, is launching a €1.4bn securitization of leases to Italian small and medium enterprises (SMEs), with secondary trading levels suggesting investors are hungry for Italian paper.

    • 12 Jan 2016
  • German auto ABS spreads stay sticky with Ford deal

    Ford Credit Europe has opened books on its Globaldrive 2016-A transaction, with initial price thoughts and secondary trading levels suggesting top rated German auto ABS has found a new benchmark level.

    • 12 Jan 2016
  • TRID causing headaches in mortgage sector

    Mortgage lenders and securitizers are still working their way through new residential mortgage disclosure regulation and are growing concerned over compliance issues relating to the Consumer Financial Protection Bureau's (CFPB) TILA-RESPA Integrated Disclosure (TRID) rule.

    • 12 Jan 2016
  • Freddie Mac prices first STACR deal of 2016

    Freddie Mac on Wednesday priced the $996m STACR 2016-DNA1 deal, the first agency credit risk transfer (CRT) transaction of 2016.

    • 11 Jan 2016
  • PGGM and Santander close €2.3bn synthetic securitization

    Pensioenfonds Zorg en Welzijn (PGGM) and Banco Santander have closed a €2.3bn synthetic securitization of a portfolio of Spanish small and medium enterprise loans.

    • 11 Jan 2016
  • HIG hires real estate structured finance expert

    HIG Capital has hired Graham Emmett as managing director in the real estate team as the firm looks to grow its activities in the European real estate structured finance market.

    • 11 Jan 2016
  • Guidance revealed for ABMT 2016-1

    Pricing guidance for the first private label RMBS deal of the year, ABMT 2016-1, has been released by book-runner Wells Fargo.

    • 11 Jan 2016
  • Optimism in European ABS despite slow start

    Market players are broadly positive about the outlook for the European ABS market in 2016, despite a slow start to primary issuance and wider volatility in the financial markets.

    • 11 Jan 2016
  • ABS primary kicks off 2016 with nearly $2bn of subprime auto offerings

    AmeriCredit Financial Services, DriveTime Car Sales Co. and Westlake Financial Services have opened up the 2016 ABS pipeline with close to $2bn worth of subprime auto offerings.

    • 08 Jan 2016
  • Annaly revamps RMBS team, looks to CRT

    Mortgage real estate investment trust (Reit) Annaly Capital Management has appointed David Finkelstein to head its RMBS business and is predicting that the trajectory of RMBS in 2016 will be partly determined by the agency credit risk transfer (CRT) market.

    • 08 Jan 2016
  • Capital markets head leaves StormHarbour

    StormHarbour’s head of capital markets, appointed last January, has left the firm.

    • 08 Jan 2016
  • TwentyFour bolsters UK mortgage fund with new hire

    TwentyFour Asset Management has hired ABS banker Silvia Piva to work on its listed UK residential mortgage fund.

    • 08 Jan 2016
  • Further rate hikes could hit 2016 CLO issuance

    The potential for further interest rate hikes from the Federal Reserve is going to increase the pressure on the CLO market in 2016.

    • 07 Jan 2016
  • CommonBond hires Starr, plans to issue more ABS

    CommonBond has kicked off 2016 with the hire of Beth Starr as vice president and head of capital markets. Meanwhile, CEO David Klein tells GlobalCapital that the online lender is planning to ramp up its ABS activity in the coming year.

    • 07 Jan 2016
  • Despite concerns, CMBS 2.0 outperforms legacy, says Fitch

    CMBS deals issued since the crisis have outperformed earlier pre-crisis deals, according to Fitch Ratings, despite widespread concern that underwriting is deteriorating across newer vintages.

    • 07 Jan 2016
  • US residential PACE securitization on track for strong 2016 – Renovate America

    Renovate America’s capital markets head and managing director Craig Braun anticipates “very robust” issuance for residential Property Assessed Clean Energy (PACE) loan securitization this year, as the asset class prepares to shake off the regulatory headwinds of 2015.

    • 07 Jan 2016
  • Public sector called on to help green securitization

    A report from the Climate Bonds Initiative, to be published in the first quarter of this year, will argue that public sector help is needed to foster the development of a green securitization market in Europe.

    • 07 Jan 2016
  • Banca MPS sells €1bn non-performing loan portfolio

    Banca Monte dei Paschi di Siena (BMPS) has sold a €1bn portfolio of non-performing loans to a securitization vehicle financed by Deutsche Bank affiliates.

    • 07 Jan 2016
  • Ford Credit to launch new German auto deal

    Ford Credit Europe (FCE) has lined up leads for a new €610m German auto ABS deal from its Globaldrive shelf, the first European ABS deal to be announced this year.

    • 07 Jan 2016
  • EC urged to align covered bonds and ABS

    The Dutch government has urged the European Commission to address the “unbalanced” regulatory treatment of securitization compared with covered bonds, complaining of “disproportionate” incentives to invest in covered bonds versus ABS.

    • 07 Jan 2016
  • Virgin Money to bring multi-currency UK prime RMBS

    Virgin Money has mandated leads for a new UK prime RMBS deal from its established Gosforth shelf, which will be issued in multiple currencies and will look to attract US investors with a 144A registration.

    • 07 Jan 2016
  • Freddie Mac pitches first STACR deal of 2016

    Freddie Mac has announced STACR 2016-DNA1, the first agency credit risk transfer deal of 2016.

    • 06 Jan 2016
  • New kids of finance start playing with the grown-ups

    Alternative finance has gone from quirky novelty to mainstream global industry in just a couple of years. But can it maintain this sharp growth and truly become an alternative to bank loans which are still the finance instrument of choice for most businesses? Chris Wright reports.

    • 06 Jan 2016
  • Blockchain: wisdom of crowds begins in blind competition

    Blockchain, the technology underlying bitcoin, is coming to a back office, and clearing house, and bank, and front office near you. Instead of one authority keeping records, everyone will. That’s the idea, anyway, of a wave of start-ups rushing to build workable applications. How will clarity emerge from this ferment, and just how will it change the business of capital markets? Jon Hay reports.

    • 06 Jan 2016
  • Investors hope for SLABS rebound after rough 2015

    Student loans had a tough 2015 — it was the worst performing ABS asset class of the year according to some. The threat of widespread rating downgrades on Federal Family Education Loan Program ABS sparked a sell-off that eventually spread to private student loan bonds. However, with the new year comes renewed hope for improved performance. Sasha Padbidri reports.

    • 06 Jan 2016
  • Despite underwriting concerns, CMBS 2.0 outperforms legacy, Fitch says

    CMBS deals issued since the crisis have outperformed earlier pre-crisis deals, according to Fitch Ratings, despite widespread concern that underwriting is deteriorating across newer vintages.

    • 06 Jan 2016
  • DBRS brings banking experience to home market

    Former TD Securities deputy chair has joined ratings agency DBRS to head up its Canadian business.

    • 06 Jan 2016
  • Ford to kick off Euro ABS with new German auto deal

    Ford Credit Europe (FCE) has lined up leads for a new €610m German auto ABS deal from its Globaldrive shelf, the first European ABS deal to be announced this year.

    • 06 Jan 2016
  • China auto ABS seeks early start with Driver China Three

    The Chinese auto ABS market is revving up for 2016 with Volkswagen poised to launch a Rmb2.99bn ($460m) Driver China Three next week.

    • 06 Jan 2016
  • Two Harbours sets quality bar high with year's first RMBS

    The first RMBS deal of 2016 could set a trend for the rest of the year, with transactions continuing to favour high quality mortgage collateral.

    • 05 Jan 2016
  • CommonBond makes capital markets hire, plans more ABS

    CommonBond has kicked off 2016 with the hire of Beth Starr as vice president and head of capital markets. Meanwhile, CEO David Klein tells GlobalCapital that the online lender is planning to ramp up its ABS activity in the coming year.

    • 05 Jan 2016
  • Climate Bonds Initiative looks to public sector to help green securitization

    A new report from the Climate Bonds Initiative, to be published in the first quarter this year, will argue that public sector efforts are required to facilitate the development of a green securitization market in Europe.

    • 05 Jan 2016
  • Cantor conduit deal kicks off 2016 CMBS pipeline

    Issuers are wasting no time in January, with Cantor Commercial Real Estate announcing a $703.6m conduit deal on Monday to kick off the 2016 new issue pipeline.

    • 04 Jan 2016
  • US, European P2P markets to take bigger strides in 2016

    The US marketplace lending space was forced to overcome a slew of obstacles in 2015, while the budding industry saw the entrance of institutional players to the game, in addition to a growing number of platforms tapping securitization. Meanwhile, in Europe, market players anticipate a maiden securitization in 2016, but a sensitive ABS market could pose problems. Sasha Padbidri and David Bell report.

    • 04 Jan 2016
  • Banca MPS offloads €1bn non-performing loan portfolio

    Banca Monte dei Paschi di Siena (BMPS) has sold a €1bn portfolio of non-performing loans to a securitization vehicle financed by Deutsche Bank affiliates.

    • 04 Jan 2016
  • ABS shows resilience in troubled auto sector

    The auto industry will remember 2015 for the wrong reasons, but the resilience of the European auto ABS market during this time of turmoil points to the continuing importance of securitization for car makers, writes David Bell.

    • 04 Jan 2016
  • CMBS to face its demons in 2016

    After five years of steady improvement, the CMBS sector in 2016 is staring down more uncertainty than at any point since the financial crisis. Once a vague threat in the distant future, new regulation will become reality. This, coupled with Fed liftoff and ever increasing liquidity constraints will put pressure on CMBS spreads, which are already wide. Can the market find a reason to hope? Max Adams finds out.

    • 04 Jan 2016