Securitization - Article Archive

  • Investors pile into Mosaic solar loan ABS

    California-based solar finance company Mosaic sold a $138.95m ABS deal late last week, with sources saying it was heavily oversubscribed.

    • 31 Jan 2017
  • Upstart issuer readies debut MPL ABS deal

    Online personal loan platform Upstart is looking to issue a debut ABS transaction in the second quarter of 2017.

    • 31 Jan 2017
  • RMBS market embraces new STACR structure

    Freddie Mac priced its first credit risk transfer (CRT) RMBS deal of 2017 on Tuesday, with a new structure offering more subordinated debt embraced by investors and saving money for the government sponsored enterprise (GSE).

    • 31 Jan 2017
  • Bumper 8 thrives with swollen sterling book

    A UK auto ABS deal from LeasePlan was priced on Tuesday, with the £400m senior tranche more than twice subscribed, underlining the positive tone in the European ABS market as 2017 gets underway.

    • 31 Jan 2017
  • Without specifics, Trump’s deregulation order just a soundbite

    Monday’s executive order from President Donald Trump pledging to cut regulation for US businesses by forcing agencies to get rid of two regulations for every one they introduce was derided by his opponents, but it isn't ridiculous. It just lacks the specifics to be taken seriously.

    • 31 Jan 2017
  • Next slug of CHL financing breaks cover

    Co-arrangers Bank of America Merrill Lynch and Morgan Stanley have announced the next chunk of financing for Cerberus’s acquisition of Capital Home Loans from Permanent TSB.

    • 31 Jan 2017
  • Falcon aircraft deal swoops into ABS primary

    A $410m aircraft securitization from Middle Eastern leasing company Dubai Aerospace Enterprise is in the pipeline, making it the first aircraft ABS deal to come to market in 2017.

    • 30 Jan 2017
  • US CLO managers push refis as primary stalls

    US CLO managers are refinancing a glut of vintage deals as they take advantage of growing demand to shave liability costs off older transactions at the expense of the primary market.

    • 30 Jan 2017
  • RMBS, covered bond spreads converge — JPM

    Research from JP Morgan ABS and covered bond analysts show generic European ABS spreads in Italy, Spain and the Netherlands trending closest to covered bonds spreads since the European Central Bank launched purchase programmes for both asset classes, in October and November 2014.

    • 30 Jan 2017
  • EBA and ESM push for public bad loans scheme

    The chair of the European Banking Authority called on Monday for the establishment of an EU-wide asset management company to deal with non-performing loans, during a seminar held at the European Stability Mechanism's headquarters.

    • 30 Jan 2017
  • UBS posts profit growth but misses out on Trump trading

    UBS investment bank delivered a 54% increase in profit before tax in the final quarter of 2016, compared to the same period in the previous year, but the bank’s inventory-light approach meant it missed out on the post US election trading boom that has benefited US competitors.

    • 27 Jan 2017
  • CFPB lawsuit draws US regs battle lines as SLABS flaws laid bare

    A US Consumer Financial Protection Bureau (CFPB) lawsuit filed against a student loan servicer has highlighted the bureau's importance just as Donald Trump gets to grips with a presidency many predict will shrink regulators’ powers. Meanwhile, writes Sasha Padbidri, the suit exposes deep flaws in student loan servicing which could affect the ABS market.

    • 26 Jan 2017
  • Non-prime RMBS market could double in 2017

    The non-prime mortgage market is on track to grow in 2017, with the number of issuers in the sector potentially set to double, according to rating agency officials and RMBS market sources.

    • 26 Jan 2017
  • Chenavari Toro fund skews to private ABS

    Chenavari’s Toro Limited fund, which targets European ABS and invests in the private equity firm’s European CLO business, is accelerating its rotation away from public ABS in favour of higher yielding private transactions.

    • 26 Jan 2017
  • Crédit Ag follows covered bond blow-out with RMBS debut

    Crédit Agricole mandated its inaugural public securitization of French home loans on Thursday, only a day after it printed a triple tranche covered bond to raise €2.5bn. The deal will be marketed next week, with launch and pricing targeted for the week of February 13.

    • 26 Jan 2017
  • RBS takes extra RMBS provision but end not in sight

    Royal Bank of Scotland announced on Thursday it was taking an extra $3.8bn provision related to its conduct in US RMBS underwriting, taking its total provision for that area up to $8.3bn. But it emphasised that it wasn’t in negotiation with the US Department of Justice over the settlement, and there could be much more to come.

    • 26 Jan 2017
  • US CLO issuance down 32% in 2016

    New issue CLO volume dropped 32% year over year in 2016, according to Fitch, despite a year end flurry of issuance as the market raced to get deals done ahead of new risk retention rules.

    • 25 Jan 2017
  • Global CLO managers eye third-party risk retention solutions

    Third party risk retention funds are looking increasingly attractive to global CLO managers, after the onset of US risk retention rules and potential stiffening of European rules make the CLO business more capital intensive.

    • 24 Jan 2017
  • Canadian ABS issuers tap deep US pockets

    The Bank of Montreal priced a dollar-denominated credit card securitization on Wednesday, with deal watchers saying they expect the market for cross-border ABS transactions to flourish in 2017.

    • 24 Jan 2017
  • CLO market eyes extended triple-A rally

    Spreads on triple-A paper from new issue US CLOs are expected to touch the 130bp over Libor area for a deal from Octagon Credit Investors later this month, though observers say the market could tighten further.

    • 24 Jan 2017
  • LeasePlan mandates for UK ABS return

    Fleet management solutions provider LeasePlan has mandated leads for its first UK auto lease ABS deal in five years.

    • 24 Jan 2017
  • New US administration unlikely to radically reform GSEs

    US Treasury secretary nominee Steve Mnuchin’s statement during his confirmation hearing that he did not support the recapitalisation and release of Fannie Mae and Freddie Mac should confirm observers’ suspicions that the new administration is not going to prioritise the reform of the government sponsored enterprises (GSEs).

    • 24 Jan 2017
  • Solar ABS matches 2016 levels with new SolarCity deal

    SolarCity has announced a $145m solar ABS transaction, the second such deal of 2017, which puts the first month of the year on par with primary activity in all of 2016.

    • 23 Jan 2017
  • Strong demand seen for SoFi consumer ABS

    SoFi priced the first marketplace loan ABS deal of 2017 late last week to heavy investor demand, as appetite for consumer ABS outpaces supply in January.

    • 23 Jan 2017
  • Mount Street snaps up WestLB €29bn loan book

    UK-based loan servicer Mount Street has bought EAA Portfolio Advisers, along with its contract to manage a €29bn loan and ABS portfolio of former WestLB assets, more than doubling the servicer’s assets under management.

    • 23 Jan 2017
  • CLO market shrugs off 1% Libor rate

    The three month Libor rate topped 1% for the first time since 2009 this month, raising concerns among CLO and leveraged loan players, though most sources say they are confident that credit fundamentals are strong enough to withstand rate related shocks.

    • 19 Jan 2017
  • Navient in crosshairs of CFPB lawsuit

    The Consumer Financial Protection Bureau (CFPB) announced on Wednesday that it is suing student loan servicer Navient for “systematically and illegally” failing borrowers by creating obstacles to loan repayment.

    • 19 Jan 2017
  • Gridlock in CLOs as managers feel loan squeeze

    Tight conditions in the European leveraged loan market are proving a boon for borrowers such as private equity houses, but CLO managers, which form a large proportion of the lending base to that market, are starting to feel the pain. CLO equity investors at the bottom of the chain will determine how far the screws can be turned, write David Bell and Max Bower.

    • 19 Jan 2017
  • US CLO senior spreads rally, but mezz set to widen

    Spreads on new issue CLO senior bonds have rallied with the first deal of the year, but mezzanine spreads look likely to widen after a deluge of lower rated paper flooded the secondary market in the past week.

    • 19 Jan 2017
  • Former 3iDM CLO manager joins Partners Group

    Andrew Bellis, a former managing director at 3i Debt Management, has joined private markets investment firm Partners Group in London.

    • 19 Jan 2017
  • RMBS investors see future beyond prime jumbo

    The US RMBS market will see diversity beyond prime jumbo deals in 2017 as investors range further afield for more varied credit and higher yields, said market participants.

    • 18 Jan 2017
  • Mosaic offering thaws solar ABS primary pipeline

    California-based solar finance company Mosaic is preparing to hit the ABS primary market with an offering backed by loans on residential rooftop solar systems, the first such transaction since early 2016.

    • 18 Jan 2017
  • Morgan Stanley capital markets head to run structured credit fund

    Claus Skrumsager, co-head of EMEA capital markets at Morgan Stanley, will join the firm’s investment management unit as portfolio manager and head of private structured credit solutions, a new role leading a team and fund which has yet to be established, but which is likely to involve deploying institutional capital into a wide range of illiquid assets.

    • 18 Jan 2017
  • Morgan Stanley legacy Dutch RMBS deal priced

    Morgan Stanley closed on Wednesday its Delft 2017 securitization of legacy Dutch nonconforming mortgages, originated by a former Lehman Brothers lender.

    • 18 Jan 2017
  • Bluestep Bank to update investors on Swedish RMBS shelf

    Swedish non-conforming mortgage lender Bluestep Bank is meeting investors next week in Stockholm to update them on its securitization programme, the only active RMBS shelf in the Swedish mortgage market.

    • 18 Jan 2017
  • FIG issuers look to break new ground in quieter week for primary

    FIG primary market activity slowed ahead of reporting season this week, though Phoenix Group Holdings printed the first ever tier three bond in sterling and BPCE was preparing to open the Samurai market for senior non-preferred.

    • 18 Jan 2017
  • Head CS ABS analyst jumps ship

    David Zhang, who headed securitized products modeling at Credit Suisse, has left the bank to join fixed income research and analytics firm MSCI.

    • 17 Jan 2017
  • MPL deal flow opens up with SoFi consumer ABS

    SoFi became the first online lender to offer a new securitization in 2017, bringing to market an unsecured consumer loan transaction to open up the marketplace loan ABS pipeline.

    • 17 Jan 2017
  • Consistency in charters could improve fintech regulation

    A letter published by The Conference of State Banking Supervisors (CSBS) on Friday is the latest in a round of opposition to the Office of the Comptroller of the Currency’s (OCC) fintech charter proposal. But the charter could help to streamline regulation of the fragmented industry.

    • 17 Jan 2017
  • Secondary CLO volume jumps past 2016 average

    US CLO trading volumes last week topped the average level seen in 2016, as low supply of new issuance drove investors to the secondary market.

    • 17 Jan 2017
  • EU CLO investors eye fat mezzanine debt spreads

    European CLO investors are targeting mezzanine and junior tranches of US and European deals, as wide spreads further down the capital stack lag the aggressive tightening seen in senior paper.

    • 17 Jan 2017
  • Obvion hits post-crisis tight in Dutch RMBS

    Obvion priced its €2bn Storm 2017-1 RMBS at a record low spread for for five year Dutch RMBS paper since the financial crisis, and the lender has said it will continue to look to build on its range of RMBS transactions.

    • 16 Jan 2017
  • Euro CLO refi activity chugs on amid primary pause

    Carlyle released price guidance for the refinancing of its Carlyle Global Market Strategies Euro CLO 2014-2 on Monday, as the primary CLO pipeline takes a back seat to a wave of refinancing deals.

    • 16 Jan 2017
  • US mortgage applications decline year over year

    The latest figures from the Mortgage Bankers Association show a small increase in mortgage applications during the first week of January, but year over year volume is down sharply.

    • 13 Jan 2017
  • MPL issuance on hold as market navigates regs, Trump transition

    The outlook for marketplace lending securitization issuance in 2017 is hazy, as lenders navigate new regulatory terrain and prepare their businesses for operating under a Donald Trump presidency.

    • 12 Jan 2017
  • Investors piling into Europe’s ‘bullish’ RMBS market

    The European ABS market is riding a wave of what market participants describe as “mass bullishness” that is encouraging opportunistic sellers to securitize legacy assets, some of which date back to before the credit crisis. David Bell reports.

    • 12 Jan 2017
  • Pharma back in focus for CLOs after Trump comments

    The pharmaceuticals industry is back under the microscope of US CLO players after comments on drug pricing from president-elect Donald Trump hinted at a tougher environment for drug makers under a Trump presidency.

    • 12 Jan 2017
  • Don’t put down America’s post-crisis watchdog

    The latest round of Republican calls in the US for president-elect Donald Trump to fire the Consumer Protection Financial Bureau (CFPB) head Richard Cordray and roll back the agency’s influence is a real threat to American consumers.

    • 12 Jan 2017
  • Non-conforming Scandinavian lender eyes capital markets

    Swedish lender Bluestep Bank is said to be considering a new non-conforming RMBS deal, with the lender expected to host an investor day this month.

    • 12 Jan 2017
  • Private auto deals dominate sparse ABS pipeline

    Hyundai Capital America and Consumer Portfolio Services (CPS) each priced private, 144A offerings on Tuesday, while a public deal from Ford is slated to enter the market in the coming week in what has been an otherwise slow start to 2017 primary issuance.

    • 11 Jan 2017
  • Leveraged loan prices blocking new CLO pipeline

    The US CLO market is off to a slow start and managers are expecting more of the same through the first quarter of the year, as tightening in the leveraged loans market puts pressure on the economics of issuing new deals.

    • 11 Jan 2017
  • ABI, Cerved say Italian bad loan growth slowed in 2016

    A report from the Italian banking association ABI and credit management company Cerved said on Wednesday that growth in bad Italian business loans slowed in 2016, although the southern region showed no sign of improvement.

    • 11 Jan 2017
  • Morgan Stanley to securitize legacy loans from former Lehmans lender

    Morgan Stanley is preparing a securitization of legacy assets originated by Lehman Brothers’ former Dutch mortgage lending unit.

    • 11 Jan 2017
  • Tricky trades find smooth execution in super start for FIG

    Extraordinarily strong issuance conditions in the euro and sterling markets have bred a rush of new supply in the second week of 2017, allowing rarer names to price trickier deals across a broad range of asset classes.

    • 11 Jan 2017
  • Agency CRT deals set for structural changes in 2017

    Fannie Mae and Freddie Mac are set to change the structure of their credit risk transfer (CRT) programmes, looking to entice more investors and offer more attractive yields in the coming year.

    • 10 Jan 2017
  • Consumer ABS market awaits outcome of latest CFPB fight

    The latest call from Republican senators Ben Sasse and Mike Lee for the incoming president to dismiss Consumer Protection Financial Bureau (CFPB) head Richard Cordray is being closely watched by ABS players.

    • 10 Jan 2017
  • HUD premium cut is political posturing

    The move by the US Housing and Urban Development (HUD) secretary Julian Castro to reduce mortgage insurance premiums is a politically motivated one designed to pressure the incoming Trump administration. As such it brings the agency into the political arena at a time when non-partisanship should be the goal of one of the foremost housing authorities in the US.

    • 10 Jan 2017
  • Europe’s ‘versatile’ ABS market draws debate

    Analysts warned this week of securitization’s drift into a private, bilateral and less visible type of market at the expense of the public market, despite last year's primary pipeline churning out the highest volume of publicly syndicated bonds since 2011.

    • 10 Jan 2017
  • CPS deal revives subprime auto pipeline

    Subprime auto lender Consumer Portfolio Services (CPS) is in the post-holiday market with a $206.32m subprime auto loan securitization, kicking things off for the sector in 2017.

    • 09 Jan 2017
  • Redwood kicks off 2017 RMBS calendar

    Redwood Mortgage sold the first prime jumbo RMBS transaction of the year on Wednesday, pricing a $339.5m deal from its Sequoia Mortgage Trust series.

    • 09 Jan 2017
  • Mortgage banking industry divided on FHA premium cut

    The decision by departing Housing and Urban Development (HUD) director Julian Castro to cut the Federal Housing Administration (FHA) mortgage insurance premiums by 25bp has been met with a mixed response from the mortgage finance industry.

    • 09 Jan 2017
  • EIF inks €360m Italian SME loan guarantee scheme

    The European Investment Fund (EIF) has signed an agreement with six regional Italian credit institutions to guarantee €360m of loans to Italian small and medium enterprises (SMEs) over the next three years.

    • 09 Jan 2017
  • Obvion kicks off Storm RMBS programme for 2017

    Obvion, the most active issuer in the Dutch RMBS market last year, will kick off the market in 2017 with a new prime transaction from its Storm shelf.

    • 09 Jan 2017
  • Synthetic ABS's comeback is an organic development

    With pressure on banks to tighten their belts and deleverage balance sheets, in 2017 synthetic securitization could become a much bigger part of the bank treasurer’s toolkit.

    • 05 Jan 2017
  • Hyundai lease deal opens US consumer ABS market

    Hyundai is in the market with a $931.49m auto lease securitization, kicking things off for the primary consumer ABS market in 2017.

    • 05 Jan 2017
  • American Airlines EETC deal ready for takeoff

    American Airlines has opened up the esoteric ABS pipeline in 2017 with a nearly $1bn enhanced equipment trust certificate (EETC) offering to fund the purchase of new aircraft.

    • 05 Jan 2017
  • UK banks slip out synthetic CLOs before year-end

    Barclays, Lloyds, RBS and Santander UK all priced synthetic CLOs for risk transfer purposes just before the year-end, honing their capital positions for full year 2016 reporting. Most of the deals focused on large corporates, an asset class that fuelled much of last year’s boom in risk transfer trades, as banks seek ways to get ahead of increased Basel risk weights.

    • 05 Jan 2017
  • GE Money Bank to securitize retained French RMBS

    Three senior tranches of a French RMBS transaction retained by GE Money Bank in France last year will be syndicated in the public market, opening up the European primary ABS pipeline in 2017.

    • 05 Jan 2017
  • Prime credit card charge-offs hit record low

    The charge-off rate for prime credit cards hit a new low in December, with market watchers predicting that the sector should be able to withstand rate hikes in the coming year.

    • 04 Jan 2017
  • European CLO refinancing picks up pace

    Activity in the European ABS market is being driven by issuer appetite for CLO refinancing that has gathered momentum over the otherwise quiet festive period, while a debut European CLO from US issuer HPS Investment Partners could soon surface.

    • 04 Jan 2017
  • ABS doesn’t mean weak underwriting -- BIS

    There is no evidence to suggest securitization weakens credit standards, according to a Bank for International Settlements study of Italian loans to small and medium sized enterprises published on Tuesday.

    • 04 Jan 2017
  • Marble Point acquires ACAS CLO Management

    Connecticut-based CLO manager Marble Point Credit Management has acquired American Capital CLO Management for an undisclosed sum, the latest in a spate of industry mergers.

    • 03 Jan 2017
  • Bank, MPL partnerships to persist in 2017

    The introduction of a national banking charter for financial technology companies by the Office of the Comptroller of the Currency (OCC) at the end of last year will not be a big disruptor of the bank partnership model in 2017, said industry sources this week.

    • 03 Jan 2017
  • Bank of Ireland closes €3bn risk transfer deal

    Bank of Ireland has structured a synthetic securitization to transfer the risk exposure on a pool of €2.9bn business banking and corporate loan assets to a small group of international investors.

    • 03 Jan 2017
  • Tang: Europe will set ‘world standard’ for ABS risk retention

    Dutch MEP Paul Tang, the European Parliament’s rapporteur for the “simple, transparent and standardised” securitization framework, has defended his proposed amendments to the bill, arguing that Europe will set a “new world standard” for risk retention requirements through the measures.

    • 03 Jan 2017
  • Financial institutions bond awards

    FIG issuers had a tough time navigating the primary markets in 2016, which was speckled with periods of intense volatility.

    • 03 Jan 2017
  • Legacy assets: the future of dealing with the past

    Sales of legacy and non-core loans have soared to new heights in the last two years. But making a dent in the €2.3tr still on bank’s balance sheets will only get more difficult in 2017, writes Graham Bippart.

    • 01 Jan 2017
  • Push and pull: levloan tensions to drive CLO dynamics in 2017

    Leveraged loans are likely to be a prized commodity in 2017 as demand will continue to outstrip supply, leaving CLO managers scrounging around for whatever they can find to ramp up their portfolios. Sam Kerr reports.

    • 01 Jan 2017
  • Esoteric ABS set to clear political and policy hurdles in 2017

    Esoteric ABS was a focus for investors hunting for yield in 2016. The market for these assets blossomed, as issuers were lured by attractive relative value in comparison to other sources of financing. But rising interest rates, the potential for trade wars under a new US president and fits of capital markets volatility top the list of concerns for market players this year. Max Adams reports.

    • 01 Jan 2017
  • P2P disruptors looks to join the establishment

    As European marketplace lending grows and matures, the sector is becoming increasingly embedded in the financial systems that it once looked to disrupt. David Bell reports.

    • 01 Jan 2017
  • Green ABS ready to blossom, despite looming policy threats

    The renewable energy ABS sector had a year of sharp growth in 2016. Property Assessed Clean Energy (PACE) ABS was a strong source of bonds backed by green assets. Market players hope for a similarly successful 2017, but industry fragmentation and a new US administration may hinder growth. Sasha Padbidri reports.

    • 01 Jan 2017
  • BofE stimulus drives diversity in UK RMBS

    The arrival of the Bank of England’s Term Funding Scheme sparked fears that it would be the death of the UK mortgage-backed securities market. But while some bank issuers may scale back public bond plans in 2017, a sharp rally in spreads has brought new sellers into play, changing the nature of the market. David Bell reports.

    • 01 Jan 2017