Securitization - Article Archive

  • Bullish Fed talk puts MBS supply in spotlight

    Bullish talk from the Federal Reserve on interest rate hikes points to a “live meeting” in March, raising concerns about the supply of mortgage-backed securitization (MBS).

    • 28 Feb 2017
  • Lev loan repricing trend has room to run

    Panelists on a leveraged loan and CLO panel on day two of SFIG Vegas told delegates to expect the trend of leveraged loan repricings to continue, despite some thinking it had run its course in recent week.

    • 28 Feb 2017
  • Take scalpel, not sledgehammer to CFPB

    Participants on the "Important Developments in Consumer Law and the role of the Consumer Financial Protection Bureau" panel on the second day of SFIG Vegas noted that the industry should do more to engage with the consumer watchdog, rather than advocate for the complete dismantling of the agency.

    • 28 Feb 2017
  • Online lenders to tap wider range of funds in 2017

    The marketplace lending sector should expect to see heightened deal volume and a diversification of funding among lenders in 2017, panelists told audience members in a panel session on day two of SFIG Vegas.

    • 28 Feb 2017
  • Regulatory gurus downbeat on harmonisation

    Global standardization of securitization regulation? Don’t bother, just make it easier for investors to compare different regimes, said panellists at SFIG Vegas on Monday.

    • 28 Feb 2017
  • Post-crisis ABS regulation hasn’t killed ratings shopping

    It never really went away, did it.

    • 28 Feb 2017
  • Scarborough hits Trump and GOP on “irresponsible” budget

    Television host and former Republican congressman Joe Scarborough took aim at US President Donald Trump and congressional Republicans in a keynote address on day two of SFIG Vegas, slamming the GOP’s budget proposals.

    • 28 Feb 2017
  • US risk retention rules prompt compliance worries in Europe

    The implementation of US risk retention rules is proving contentious in the European market, with questions marks being raised over the fair value calculations used in UK RMBS deals, and a common approach to the “safe harbour” route still to emerge.

    • 28 Feb 2017
  • Panel says to expect friendlier regulators under Trump

    Day two of SFIG Vegas kicked off with a post-election roundup of the regulatory landscape, with market participants on a panel telling audience members that they were hopeful that the market can expect a more collaborative regulatory environment under president Donald Trump.

    • 28 Feb 2017
  • Fitch fires WAC cap warning shot

    Fitch Ratings weighed in on the increasingly tense debate about the spread of weighted average coupon caps in European securitization, publishing a note on Friday that cautioned investors about the structures but acknowledged that they helped deals get higher ratings with less collateral.

    • 27 Feb 2017
  • Bluestep, VW power primary securitization

    Despite sections of the market decamping to Las Vegas for the SFIG Vegas conference, the primary pipeline is still moving in European structured finance, as Swedish non-conforming RMBS Bluestep No. 4 and VW’s UK ABS Driver UK Five both head for pricing on Wednesday.

    • 27 Feb 2017
  • New round of reg reform efforts on the horizon

    The first Republican attempts to scale back the Dodd-Frank Act following Donald Trump’s November presidential election victory are on the horizon, with The House Financial Services Committee gearing up to vote on a new bill as early as March.

    • 27 Feb 2017
  • Arcadia brings prime Lending Club ABS to market

    Arcadia Funds hit the ABS market this week with a rated debut transaction via Jefferies backed by prime loans originated by Lending Club, which sources say will be closely watched by the market.

    • 23 Feb 2017
  • Non-banks eye opportunities in Irish, Dutch BTL

    With prudential regulators looking to take the heat out of the UK’s buy-to-let market, and the non-bank segment already crowded, some alternative lenders such as private equity firms are targeting opportunities in nascent markets in Ireland and the Netherlands. David Bell reports.

    • 23 Feb 2017
  • Investors warming to "non-traditional" RMBS

    After issuers brought a wave of RMBS deals beyond agency and prime jumbo offerings in 2016, sources say they are expecting "non-traditional" mortgage collateral to drive volume in 2017.

    • 23 Feb 2017
  • Non-bank UK RMBS draws strong demand

    A shortage of supply is driving strong demand for UK RMBS transactions, with deals backed by well seasoned mortgages as well as newly originated assets both attracting heavy levels of interest this week.

    • 23 Feb 2017
  • PCS looks to boost synthetic securitization with new quality label

    With policymakers discussing the possible extension of “simple, transparent and standardised” securitization to synthetic transactions, a push is underway to promote the quality and importance of the asset class.

    • 23 Feb 2017
  • Market watchers eye Trumpflation of Treasuries, mortgage rates

    A spike in 10 year US Treasury yields has pushed up mortgage rates and curtailed new mortgage production in 2017, but a slowdown in the trend has observers questioning the direction of the Treasury and mortgage markets under President Donald Trump.

    • 22 Feb 2017
  • TGI Friday’s dishes out whole business ABS

    TGIF Funding is out with guidance for a debut whole business securitization, which sources say could revive activity in the esoteric sub-sector after a lull in 2016.

    • 22 Feb 2017
  • VW to sell residual value risk in new UK auto ABS deal

    Volkswagen Financial Services is preparing to launch its fifth UK auto ABS deal backed predominantly by personal contract purchases, which contain residual value risk.

    • 22 Feb 2017
  • CLOs tests longer reinvestment periods with mixed reception

    As US CLO managers explore ways to boost returns on new deals, longer reinvestment periods could be introduced to appease equity buyers, though debt investors may not accept the trend quietly.

    • 21 Feb 2017
  • Kabbage preps small business loan deal

    Online small business lender Kabbage is marketing a $500m securitization of loans to small and medium sized businesses that will be used to refinance an existing deal from 2014.

    • 21 Feb 2017
  • Green mortgages can grow without regulatory help

    Proponents of “green mortgage loans”, lent against energy efficient homes, argue they are less likely to default and deserve a lower risk weighting than conventional mortgage lending. But it’s a long shot, and there are plenty of other ways to promote the market.

    • 21 Feb 2017
  • Securitization’s drift behind closed doors doesn’t make STS less important

    While regulators and politicians try to hash out a compromise over the “simple, transparent and standardised” securitization framework, the European ABS market is drifting further and further away from EU authorities imagine it to be. But that doesn’t mean fixing STS is any less important.

    • 21 Feb 2017
  • Leveraged credit markets should beware fickle retail space

    As US retailers start to report their Q4 earnings, the numbers demonstrate the fickle nature of an industry that the US leveraged credit markets might do better to avoid.

    • 21 Feb 2017
  • Swedish lender BlueStep Bank plans new RMBS deal

    Swedish non-conforming mortgage lender BlueStep Bank has mandated lead managers for a new euro-denominated Swedish RMBS deal, after meeting investors in January.

    • 21 Feb 2017
  • Hot CLO, loan markets prompt GSO/Blackstone loan fund raise

    Investor demand for exposure to global loan and CLO products has prompted GSO/Blackstone’s listed Loan Financing Fund, which invests in US and European senior secured loans both directly and through CLO debt, to plan a new share issue.

    • 21 Feb 2017
  • Kensington eyes mortgage prefunding with new Finsbury RMBS

    Kensington Mortgage Company mandated leads for its first RMBS deal of the year on Friday, with the new Finsbury Square transaction including a mortgage prefunding reserve for the first time.

    • 20 Feb 2017
  • HGV preps first post-spinoff timeshare ABS

    Hilton Grand Vacations (HGV) is getting ready to market its first no-grow timeshare transaction, after completing its spin-off from Hilton Worldwide in January.

    • 16 Feb 2017
  • Japanese investors being priced out as CLO demand soars

    Demand for US CLO triple-A paper is at its peak, with sources saying that competition for the bonds is squeezing out the Japanese buyer base that has long been a driver of the market.

    • 16 Feb 2017
  • Sponsor route for UK CLO managers still open, despite concerns

    Despite many UK-based CLO managers switching to the manager originator model for European risk retention in the immediate aftermath of the Brexit vote, many are returning to the sponsor route, with investors comfortable with either approach.

    • 16 Feb 2017
  • Rabo reveals approach to covered bonds

    Rabobank said on Thursday that its new covered bond programme would be launched in soft bullet format. The bank also plans to shrink its balance sheet with further portfolio sales and securitizations.

    • 16 Feb 2017
  • 2016 Best Country Deals: Results

    GlobalCapital Asia and Asiamoney are pleased to announce the results of our Best Country Deals, recognising the standout transactions in Asia. Our thanks to everybody who took time to pitch.

    • 16 Feb 2017
  • 2016 Australia Deals and Investment Bank of the Year: Results

    GlobalCapital Asia and Asiamoney are pleased to announce the results of our annual awards, recognising the best banks and transactions in Australia. Our thanks to everybody who took time to pitch.

    • 16 Feb 2017
  • 2016 China Deals and Investment Bank of the Year: Results

    GlobalCapital Asia and Asiamoney are pleased to announce the results of our annual awards, recognising the best banks and transactions in China. Thanks to everyone who took time to pitch and our congratulations to the winners.

    • 16 Feb 2017
  • Top Republicans step up attacks on Fed policy, Yellen

    Emboldened Congressional Republicans ramped up attacks against the US Federal Reserve on Wednesday, taking aim at the central bank’s role in negotiating international financial rules and its bond purchase programmes. But chair Janet Yellen was defiant, and said the Fed would remain a part of the Basel negotiations.

    • 15 Feb 2017
  • Mariner launches inaugural consumer ABS offering

    Mariner Finance, a consumer finance company with 200 branches in the US, has launched a debut ABS offering backed by unsecured personal loans.

    • 15 Feb 2017
  • Crédit Ag lands RMBS debut

    Crédit Agricole priced its debut public French RMBS deal on Wednesday, after the bank reported full year results clearing the path for the deal.

    • 15 Feb 2017
  • Funds eye Europe's €2tr of NPLs as Greece seeks to divest

    Specialist funds in Europe are looking forward to a feast of non-performing loan sales, with Portugal and Greece set to join Italy as hotspots.

    • 15 Feb 2017
  • Quiet primary belies strong conditions in FIG

    Healthy secondary movement and successful new deals from Deutsche Bank and a second tier Italian name suggest investors are hungry for more FIG paper, though the market has been quiet this week.

    • 15 Feb 2017
  • AmEx makes ABS return with oversubscribed deal

    Strong fundamentals and a rally in ABS spreads led bankers to increase the size of a credit card ABS transaction from American Express on Monday.

    • 14 Feb 2017
  • CRT outperforming other RMBS

    Fannie Mae and Freddie Mac's credit risk transfer (CRT) programmes have outperformed other non-agency RMBS, with the first loss pieces of recent deals yielding 5% on average in January, according to JP Morgan research.

    • 14 Feb 2017
  • RMBS market must play fair as looser regs beckon

    A spate of mortgage securities issuance has been welcomed with enthusiasm among RMBS investors lamenting the state of the sector post-crisis, but in order to keep investors’ trust, issuers need to stick to practices that are beyond reproach, especially as the possibility of regulatory easing looms large.

    • 14 Feb 2017
  • More value in older CLOs, says TwentyFour AM

    With primary European CLO spreads hitting some of their tightest levels since the financial crisis, better value could be found in more seasoned deals coming up for refinancing, said TwentyFour Asset Management on Monday.

    • 14 Feb 2017
  • With retail in trouble, Deutsche Bank says short CMBS

    Deutsche Bank is telling investors that it may be time to place bets against the CMBS market, as mounting problems in the retail sector threaten the health of some post-crisis bonds heavily exposed to lower quality retail properties.

    • 13 Feb 2017
  • Renovate America, Greenworks partner for commercial PACE financing

    Residential Property Assessed Clean Energy (PACE) platform Renovate America is teaming up with commercial PACE finance firm Greenworks Lending to expand in commercial PACE lending.

    • 13 Feb 2017
  • RBC esoteric ABS head lands at Lord Capital

    Joseph Lau, managing director and head of non-traditional securitizations at RBC Capital Markets, has landed at New York-based Lord Capital after leaving the bank in January.

    • 13 Feb 2017
  • Paratus to capitalise on tight UK RMBS spreads with new deal

    Paratus AMC, the former GMAC-RFC entity that is now a subsidiary of Fortress Investment Group, has mandated leads for a new UK non-conforming RMBS deal backed by predominantly interest-only mortgages in an example of private equity backed non-bank lenders stepping up their securitization activity.

    • 13 Feb 2017
  • Managers' CLO risk retention vehicles could squeeze equity buyers

    Third party CLO equity investors could struggle to compete in a market in which managers have highly capitalised retention vehicles they can utilise to invest in both their own and other managers' equity, said industry sources this week.

    • 13 Feb 2017
  • Cerberus gets new Auburn buy-to-let deal away

    US private equity firm Cerberus Capital Management sold the latest piece of its Capital Home Loans buy-to-let mortgage portfolio in a new securitization deal last Thursday, with pricing of the deal suggesting demand is strong for scarce BTL collateral.

    • 13 Feb 2017
  • Issuer prices rare turboprop aircraft ABS

    An inaugural aircraft ABS deal from Elix Aviation Capital backed by leases on turboprop aircraft was priced on Thursday, reflecting the potential for deal diversification in the fast growing sector.

    • 09 Feb 2017
  • Global managers slow to ramp new CLOs as appetite soars

    CLO managers in the US and Europe are struggling to source loans, often pricing new deals with levels of collateral that are well below normal and thereby increasing uncertainty in the asset class. But views in each market diverge on the implications of the trend, as US CLO investors continue to show insatiable appetite, while their European counterparts cool their heels in the hope that spreads come off their historical lows. David Bell and Sam Kerr report.

    • 09 Feb 2017
  • European CLOs on pause as investors cool off

    After an impressive 2016, the best year for European CLO formation since the financial crisis, the market is taking a breather, as managers struggle to source loan collateral and investor appetite for the debt at tight spreads cools off.

    • 09 Feb 2017
  • Barclays lures Kalra back from Goldman, names senior credit team

    Barclays has announced several senior appointments in its credit trading business, including the rehire of Shrut Kalra from Goldman Sachs to co-head European high grade on the derivatives side.

    • 09 Feb 2017
  • CFPB drama not an obstacle for latest Navient ABS

    Student loan servicer Navient’s tussle with the Consumer Financial Protection Bureau (CFPB) in January was mostly background noise for the company’s no-grow Federal Family Education Loan Program (FFELP) securitization, which was priced tightly on Wednesday.

    • 08 Feb 2017
  • Cerberus prices mega RPL RMBS

    Cerberus Capital Management priced a large re-performing loan RMBS deal through its First Key Mortgage Arm on Wednesday, with investors showing heavy demand for the bonds.

    • 08 Feb 2017
  • Amazon shifts loan risk with revolving facility

    Amazon Lending, which provides inventory financing to a selectively chosen group of micro, small and medium sized businesses that sell on the Amazon marketplace, is shifting the risk on those loans off its balance sheet with a new secured revolving credit facility.

    • 08 Feb 2017
  • Long awaited UK student loan sale breaks cover

    The UK government delivered a potential boost to Europe’s stagnant securitization market on Monday with its announcement that it plans to raise £12bn through securitizing part of its book of student loans by the end of 2021. The first deal from the scheme, backed by around £4bn of loans, is expected this year.

    • 08 Feb 2017
  • ‘Insatiable’ demand drives ABS tighter

    ABS spreads, fuelled by intense demand from bond buyers, are approaching their post-crisis tights and investors said that there is room to go tighter still.

    • 07 Feb 2017
  • Equity buyers push CLO refis over new issues

    Third party CLO equity investors are a driving force behind the wave of CLO refinancings at the expense of new issuance, as pricey leveraged loans make returns on new deal equity less attractive.

    • 07 Feb 2017
  • Jefferies readies first rated prime Lending Club ABS

    Jefferies is underwriting a rated marketplace loan ABS for Arcadia Funds that will see prime consumer loans from Lending Club bundled into a securitization for the first time, sources told GlobalCapital on Tuesday.

    • 07 Feb 2017
  • Goldman Sachs extends funding line to UK specialist lender

    UK specialist lender, Together, which offers residential, commercial and personal loans, has agreed a £90m four year funding facility with Goldman Sachs Private Capital.

    • 07 Feb 2017
  • Selling student loans: Gilty parties

    The UK government’s decision to sell off part of its student loan portfolio is unlikely to deliver value for taxpayers. If it’s short of cash, it has a highly functional capital market ready to provide it — at better rates than the student loan deal could ever match.

    • 07 Feb 2017
  • For big banks, the shine should be coming off Trump

    The first weeks of the Trump administration have been chaotic. So much so that the big banks may be re-evaluating their once rosy outlook for the economy under an 'outsider' president.

    • 07 Feb 2017
  • AnaCap scoops up €177m of Italian loans from Barclays

    Barclays has agreed to sell a pool of performing and non-performing corporate loans and small and medium sized enterprise loans with a book value of €177m to private equity firm AnaCap Financial Partners.

    • 07 Feb 2017
  • Freddie Mac broadens CRE risk transfer efforts

    Freddie Mac has sold a debut risk transfer securitization backed by multifamily loans, expanding its programme of transferring commercial mortgage risk to the private market.

    • 06 Feb 2017
  • Navient readies $1bn FFELP student loan ABS

    Student loan servicer Navient is in the market with a $1bn student loan ABS offering, forging ahead with its securitization plans while it contends with allegations around its debt collection practices from the Consumer Financial Protection Bureau (CFPB).

    • 06 Feb 2017
  • US primary CLO pipeline comes alive

    A flurry of US CLOs were priced at the end of last week, jump starting the primary market after a long period of deal refinancings and resets.

    • 06 Feb 2017
  • UK government unveils £12bn student debt securitization plan

    The UK government has formally unveiled plans to sell off £12bn of student loans in a series of securitization deals, launching a brand new asset class of ABS backed by income contingent student loans.

    • 06 Feb 2017
  • Climate impacts are here, get ready for 3C warming, warns Cicero

    Cicero, the climate research institute at Oslo University, has produced a report to help investors work out where they face risks from climate change, with red, orange and yellow flags for the severity and immediacy of threats.

    • 03 Feb 2017
  • Republicans keen for Trump regime to oust CFPB boss

    Republicans keen to start dismantling US financial regulatory infrastructure have the director of the Consumer Financial Protection Bureau, Richard Cordray, in their sights. But removing him may not be straightforward.

    • 02 Feb 2017
  • Rare turboprop deal enters busy aircraft pipeline

    The aircraft ABS market is seeing an increasing whirl of activity, with lease securitizations from Elix Aviation Capital and Middle Eastern lessor Dubai Aerospace Enterprise (DAE) coming to market in January.

    • 02 Feb 2017
  • Fired-up Republicans target Fed independence

    US president Donald Trump has fellow Republicans in Washington, DC fired up with his aggressive approach to government. Now they look to be planning an assault on the independence of the Federal Reserve and other bodies as they tear into post-crisis regulation, writes Sam Kerr.

    • 02 Feb 2017
  • Buy-to-let behemoth creeps closer as Cerberus slips out

    Final bids for Bradford & Bingley’s £16.3bn portfolio of buy-to-let mortgages are due in two weeks, but the buy-to-let RMBS market is shrugging off the potential glut of issuance. Meanwhile, frequent issuer Paragon has turned to the Bank of England for funding, leaving conditions supportive for Cerberus Capital Management's largest buy-to-let deal yet.

    • 02 Feb 2017
  • SoFi hits primary with first dual-compliant MPL deal

    SoFi has launched a $561m student loan refinancing transaction, the first marketplace loan ABS offering to be compliant with both European and US risk retention rules.

    • 01 Feb 2017
  • Deutsche Bank sells first European CLO of 2017

    Deutsche Bank arranged the first new issue European CLO of the year, St Pauls VII, for ICG on Tuesday.

    • 01 Feb 2017