Securitization - Article Archive

  • Buyers shrug off Brexit, pile into latest GMAC UK auto deal

    GMAC UK, the UK subsidiary of GM Financial, priced its latest auto loan ABS transaction to high levels of investor demand, as buyers shrugged off any lingering concern around the triggering of Article 50 earlier this week.

    • 31 Mar 2017
  • Spanish housing bets pay off for private equity firms

    Two private equity firms that took a punt on the recovery of the Spanish housing market after the financial crisis closed successful trades in the mortgage-backed securities and IPO markets this week. The moves saw them capitalising on investor confidence in the improving macroeconomic picture and outlook for the residential housing market in the country. David Bell reports.

    • 30 Mar 2017
  • GM Financial debuts new shelf for prime autos

    GM Financial is in the market with a $989.4m offering from GMCAR, its new prime auto loan ABS shelf.

    • 30 Mar 2017
  • Cost of leverage ‘collapsing’ in UK MPL

    The steady growth of online lending in the UK compared to the frantic pace in the US could be a boon for platforms looking to tap securitization for funding, as the cost of funding diverges in both markets.

    • 30 Mar 2017
  • Volcker rule in play as Congress takes evidence

    Congressional Republicans started their attack on the Volcker Rule on Wednesday, with a fiery hearing on how the rule had damaged market liquidity and hurt companies' ability to raise capital.

    • 30 Mar 2017
  • Maturing P2P market disrupted by role of banks

    Where online lenders once set out to disrupt the traditional banking system, now it is the role of banks shaking up the online lending market. But with online lenders in Europe now reaching scale, the market is split on whether or not they should become banks.

    • 30 Mar 2017
  • GSEs pooling more affordable home loans in CRT

    RMBS investors are keeping a close watch on the credit profile of credit risk transfer (CRT) deals, as home affordability loans start to make their way into deals issued by the government sponsored enterprises (GSEs).

    • 30 Mar 2017
  • Deutsche Bank corporate trust head departs

    Steven Park, managing director and head of Americas for global transaction banking and corporate trust sales at Deutsche Bank, will be leaving the bank at the end of the month.

    • 29 Mar 2017
  • Pair of timeshare offerings hit ABS primary

    Westgate Resorts and BRE Grand Islander (BRE GI) are in the market this week with timeshare backed ABS, with investors paying particularly close attention to a high concentration of foreign obligors in the BRE GI deal.

    • 29 Mar 2017
  • Spire Partners looks to refinance first CLO

    Boutique CLO shop Spire Partners is looking to refinance its first CLO, shortly after closing its third deal earlier in March.

    • 29 Mar 2017
  • Republicans start process to 'audit the Fed'

    Republicans in the US House of Representatives passed a bill through committee on Tuesday, which critics said could hurt the independence of the Federal Reserve and its power to set monetary policy.

    • 29 Mar 2017
  • Two gone from Deutsche's insurance team

    Two bankers have left Deutsche Bank's insurance DCM and solutions team.

    • 29 Mar 2017
  • Online subprime lender heads to IPO market

    Online subprime lender Elevate has revived its plans for an IPO, as it looks to finance a growing supply of borrowers with limited access to traditional bank credit.

    • 28 Mar 2017
  • Investors diving in to Spanish mortgage credit

    Investors are eager for Spanish mortgage exposure, with two RMBS deals due to be priced this week.

    • 28 Mar 2017
  • As new issue stalls, 200 US CLOs could refi

    The primary US CLO market is moving in fits and starts in 2017, with managers again pumping the brakes in the last week. But according to JP Morgan research, over 200 legacy CLOs could still be refinanced, giving managers plenty to do in the coming months.

    • 28 Mar 2017
  • Dodd-Frank repeal less likely after healthcare failure

    The spectacular failure by Republicans to pass healthcare reform plans through the House of Representatives makes meaningful financial reform less likely.

    • 28 Mar 2017
  • Risla rolls out tax-exempt private SLABS

    Rhode Island Student Loan Authority (Risla) is marketing a tax-exempt securitization backed by private student loans, as administrative uncertainty causes the agency to hold off on using tax-exempt bonds for its refinance loan portfolio.

    • 27 Mar 2017
  • Northview rolling seasoned collateral into UK RMBS

    A new UK non-conforming RMBS transaction from the Northview Group, backed by seasoned assets including second charge mortgages, has emerged as specialist lenders continue to dominate the primary market.

    • 27 Mar 2017
  • Deutsche loses ABS boss to US rival

    After less than 12 months in the job, Deutsche Bank's head of EMEA ABS syndicate is off to a rival firm.

    • 27 Mar 2017
  • Ghose aims to double Investcorp debt fund

    Investcorp, the Bahraini investment house, wants to more than double its leveraged credit portfolio to $25bn, after buying the global debt business from 3i.

    • 23 Mar 2017
  • Spread tightening takes some shine off equipment ABS – investor roundtable

    Securitization pros at the Investors’ Conference on Equipment Finance in New York on Wednesday indicated that steady tightening of spreads across securitized assets is affecting the way some investors are approaching the equipment ABS sector.

    • 23 Mar 2017
  • Strong demand drives peripheral revival in European RMBS

    An Irish reperforming mortgage deal was sold by a Lone Star fund on Thursday, while Spanish issuer UCI mandated leads for a new prime RMBS deal as ABS investors continue to show demand for legacy and peripheral credit.

    • 23 Mar 2017
  • Washington lacks muscle for major regulatory change

    Wall Street workers hoping for a regulatory sea change under president Donald Trump are going to have to adjust their expectations, as empty posts at all levels of government are set to hinder lasting reform.

    • 23 Mar 2017
  • Post-election exuberance to fuel equipment performance in 2017, says panel

    An upbeat mood in the equipment sector since the presidential election should lead to a strong 2017 for the industry, with ABS volumes expected to keep pace with 2016 levels, said panelists at the Investors’ Conference on Equipment Finance held by ELFA and IMN on Wednesday.

    • 22 Mar 2017
  • Investors push back on tight CLO mezz debt

    Buyers of CLO mezzanine debt are pushing back against the rapid spread compression seen since since the start of the year, with activity over the past month showing a slowdown in the pace of tightening.

    • 22 Mar 2017
  • GMAC UK readies new auto ABS transaction

    GMAC UK is preparing its eighth UK auto ABS deal, backed by a £420m pool that has a higher proportion of personal contract purchase (PCP) agreements than earlier deals from the issuer.

    • 22 Mar 2017
  • Agos Ducato sees big demand for Italian consumer ABS

    Italian issuer Agos Ducato sold more notes in its latest Sunrise consumer loan deal this week than in previous offerings with the order book still being heavily oversubscribed by investors.

    • 22 Mar 2017
  • Mexican mining company debuts ABS

    Compañía Minera Autlán, the largest producer of ferroalloys in Mexico, made its first foray into the ABS market with a deal backed by trade receivables.

    • 21 Mar 2017
  • Q&A – Tad Philipp, Moody’s Investors Service

    Tad Philipp, senior vice president and head of commercial real estate research at Moody’s, is set to retire next month, bidding farewell to an industry in which he has been one of the most visible figures.

    • 21 Mar 2017
  • SLABS set to swell despite policy turmoil

    Student loan ABS volume across the refinancing, private loan and Federal Family Education Program (FFELP) sectors is expected to surge past 2016 levels, even as political uncertainty casts a shadow over the market.

    • 21 Mar 2017
  • Securitization initiatives could replace wholesale GSE reform package

    Technical reforms of Fannie Mae and Freddie Mac, such as expanding agency credit risk transfer, could replace broader Congressional attempts to overhaul the government sponsored enterprises (GSEs), according to housing policy experts speaking at Moody's US Housing & Housing Finance Conference on Tuesday.

    • 21 Mar 2017
  • EU political risk could ease CLO squeeze

    Looming macro risks and political turmoil could weigh on loan prices, potentially easing the squeeze on CLO equity investors at the bottom of the capital structure, said analysts at Prytania Investment Advisors this week.

    • 21 Mar 2017
  • Cross River hires top Massachusetts bank regulator

    David Cotney, former commissioner of banks for the Massachusetts Division of Banks, has been tapped by Cross River Bank to join its board of directors.

    • 20 Mar 2017
  • Marlette prices latest deal tight even as firm preps layoffs

    Online personal loan platform Marlette Funding priced a marketplace loan ABS last Friday to strong demand, even as the company plans to reduce staff in order to boost profit.

    • 20 Mar 2017
  • Prime jumbo RMBS predictions jump

    RMBS market observers are updating their prime jumbo issuance predictions for 2017 on the expectation that more banks are looking to wade into the sector.

    • 20 Mar 2017
  • Spire Partners grinds CLO spreads to new tight levels

    Spire Partners set a new tight level for new issue European CLOs last Friday, as triple-A spreads continued to rally and spreads at the junior end of the capital stack also show signs of tightening.

    • 20 Mar 2017
  • Blackstone preps new Spanish RMBS

    Blackstone mandated banks last Friday to arrange a €400m securitization backed by re-performing Spanish mortgages that the private equity firm bought from CatalunyaCaixa in April 2015.

    • 20 Mar 2017
  • SoFi preps new ABS as company eyes $12bn in 2017 loan origination

    SoFi is back in the ABS market with a student loan refinancing deal, as the company eyes $12bn in new originations across market segments in 2017.

    • 16 Mar 2017
  • Volkswagen to follow Schuldschein with new French auto loan ABS

    Volkswagen is in the securitization market for the second time this month with a French auto loan deal, following closely behind a €900m Schuldschein deal that was aimed at gauging investor appetite ahead of an expected return to public unsecured debt markets.

    • 16 Mar 2017
  • Capital markets lose out as BoE hoovers up UK mortgage funding

    Rating agency DBRS outlined the sliding volumes of capital markets funding in the UK mortgage market on Thursday, estimating that Bank of England lending schemes have drawn over 30% of mortgage collateral away from public markets since the financial crisis.

    • 16 Mar 2017
  • Former Moody’s exec files suit claiming gender bias, whistleblower retaliation

    A former vice president in the CMBS group at Moody’s has filed a lawsuit against the rating agency, claiming she was the target of gender discrimination and was ultimately fired in retaliation for bringing to light illegal ratings activity.

    • 15 Mar 2017
  • Navient prices rehabbed FFELP ABS deal

    Student loan servicer Navient priced its second Federal Family Education Loan Program (FFELP) student loan ABS of 2017 on Thursday.

    • 15 Mar 2017
  • Valeant loan investors steadfast despite Ackman sell-off

    Leveraged debt investors are not quite ready to retreat from their position in Canadian drug maker Valeant Pharmaceuticals, despite long-term advocate Bill Ackman abandoning his holding in the company on Monday.

    • 15 Mar 2017
  • Funding Circle ABS performance drives ratings upgrades

    The first securitization of marketplace loans in the European ABS market — Funding Circle's SBOLT 2016-1 — is performing above expectations, said Moody’s on Monday, announcing the upgrade of four tranches of the deal.

    • 15 Mar 2017
  • FIG sentiment steady as markets await FOMC and Dutch elections

    The mood in FIG bond markets this week has been exceptionally positive, with the market expected to take the outcome of the Federal Market Open Committee’s meeting and Dutch elections in its stride after a string of well received deals bolstered confidence across the capital spectrum.

    • 15 Mar 2017
  • Marlette brings new online consumer loan ABS to market

    Online consumer lender Marlette Funding is the latest in a wave of online lenders to tap the securitization market this quarter, as ABS spreads tighten towards post-crisis lows.

    • 14 Mar 2017
  • European ABS pipeline opens with Swiss, Italian deals

    Two new transactions emerged in the European ABS market on Tuesday, with Agos Ducato returning for a new deal from its programmatic Sunrise Italian consumer loan shelf, alongside a debut Swiss auto lease deal from MultiLease.

    • 14 Mar 2017
  • Trump admin doesn't need legislation to revamp regs

    Policy experts told the Institute of International Bankers' annual Washington, DC meeting that the Trump administration can transform the US regulatory environment, even if it can't get legislation through Congress quickly.

    • 14 Mar 2017
  • Vote now: GlobalCapital European CLO Awards

    GlobalCapital is pleased to announce the nominees for its annual European CLO awards, to be presented at IMN's 4th Annual Investors' Conference on European CLOs and Leveraged Loans on April 5.

    • 14 Mar 2017
  • Hiding info from credit scores will hurt

    A move by Experian, Equifax and TransUnion to remove tax liens and civil judgement data from consumer credit reports from July 1 will be a boon to subprime consumers in the short term, but lenders and the ABS markets could suffer in the long run.

    • 14 Mar 2017
  • Top regulator pitches modern Glass-Steagall

    A top US banking regulator this week laid out a vision of separating Federal Deposit Insurance Corporation-insured commercial banking activity from the investment and trading operations of domestic banks.

    • 14 Mar 2017
  • Soaring US CLO demand grinds spreads tighter

    Sentiment among US CLO investors is nearing a fever pitch, as buyers pile into new offerings despite debt spreads plunging to their tightest levels in recent memory.

    • 13 Mar 2017
  • Focus cooks up $800m whole biz ABS

    Focus Brands, which operates chains such as Auntie Anne's Pretzels and Cinnabon, is preparing to tap the market for whole business ABS, which industry participants at SFIG Vegas earlier this month said could see a resurgence in deal volume this year from both seasoned and first-time issuers.

    • 13 Mar 2017
  • European CLO equity buyers face supply squeeze

    CLO equity is the “belle of the European credit ball” because of the level of returns investors enjoyed in 2016, said JP Morgan analysts on Monday. But with large risk retention vehicles muscling in and loan repricing taking its toll, the landscape is set to get rougher.

    • 13 Mar 2017
  • Green securitization: an answer to several prayers

    If there was ever an idea whose time has come, it is green securitization. Action to green the economy is super-urgent, and progress so far has been worryingly slow.

    • 10 Mar 2017
  • CréditAg's $3bn capital deal starts green ABS race

    The revival of banks using securitization to free up regulatory capital could open new possibilities for accelerating the financing of a greener economy, as a ground-breaking deal demonstrated this week, write Jon Hay and David Bell.

    • 09 Mar 2017
  • Kabbage, Arcadia price pair of MPL deals

    Online small business lender and specialty debt manager Arcadia Funds each priced marketplace loan ABS transactions this week, following a wave of interest surrounding securitization as a funding tool for online lenders at the LendIt 2017 conference held this week in New York.

    • 09 Mar 2017
  • Investors still hot for Valeant debt despite looser terms

    Canadian drug maker Valeant Pharmaceuticals is hoping to complete a large debt refinancing which will extend maturities and loosen covenants, though leveraged loan investors are still likely to lap up the new debt, sources said.

    • 09 Mar 2017
  • Structured credit firm splits

    Prytania, a structured credit boutique, has formally split its corporate structure, separating its advisory and solutions business from investment management.

    • 09 Mar 2017
  • Bloomberg bids to drag ABS trading out of the dark ages

    Bloomberg is trying to drag European ABS trading into the digital age, signing up several banks to start providing quotes on its ALLQ system for core, prime European ABS asset classes. Some dealers, though, struggle to see the benefit.

    • 09 Mar 2017
  • JP Morgan's ABS syndicate head at risk

    JP Morgan's European securitized products syndicate head has been placed at risk

    • 09 Mar 2017
  • CLO primary market heats up post Vegas

    The primary CLO market has sprung to life following the SFIG Vegas conference held last week, with new transactions set to finally overtake the refinancing market that has dominated the pipeline in 2017.

    • 08 Mar 2017
  • LendIt draws record attendance, eyes new markets

    LendIt 2017, held this week in New York, drew twice the number of attendees as last year's event, with online lenders and financial technology pros discussing the potential for the market to expand to new industries and new consumers.

    • 08 Mar 2017
  • Vote now: GlobalCapital US Securitization Awards

    GlobalCapital is pleased to present the nominees for the annual US ABS awards, recognizing excellence across the structured finance industry.

    • 08 Mar 2017
  • Lone Star to sell new Irish re-performing mortgage deal

    A Lone Star investment vehicle has mandated banks to arrange a new Irish RMBS deal backed by performing and re-performing mortgages.

    • 08 Mar 2017
  • BNPP subsidiary lands debut UK consumer ABS deal

    Creation Consumer Finance, an indirectly owned subsidiary of BNP Paribas Personal Finance, sold a debut consumer loan ABS deal on Wednesday. The £570m ($694.44m) transaction was the first bank-originated UK consumer loan deal to be seen in several years.

    • 08 Mar 2017
  • FIG shrugs off looming risks as primary booms

    FIG issuers have jumped into red hot primary markets in all currencies this week, and a growing pipeline suggests there will be little let-up in activity, despite weaker secondary markets and looming political and economic events that threaten to dent confidence.

    • 08 Mar 2017
  • Panel urges lenders to open up to non-prime borrowers

    Lenders and other financial institutions need to shed their stereotypes about non-prime borrowers and consider alternative data sources to help expand their access to credit, speakers told conference attendees on day two of LendIt USA 2017 on Tuesday.

    • 07 Mar 2017
  • JPM eyes new risk transfer after OCC rebuke

    JP Morgan has not given up on issuing a risk transfer RMBS deal that achieves balance sheet relief, despite its first attempts being shot down by the US Office of the Currency Comptroller (OCC) last month.

    • 07 Mar 2017
  • Gender parity in securitization also means policing language

    The controversial all-male panel discussing Women in Securitization (WiS) at the SIFG conference in Las Vegas brought up valid points, but the industry must realize that lasting change has to include policing language.

    • 07 Mar 2017
  • Alcentra takes direct lending capital to €5.7bn with new fundraise

    Alcentra’s latest fundraising effort for its European direct lending strategy has closed, with recent commitments of €4.3bn taking the firm’s committed capital for the lending strategy to more than €5.7bn.

    • 07 Mar 2017
  • Bipartisan support for fintech needed to boost availability of credit — LendIt

    Policy experts speaking on day one of the LendIt 2017 conference in New York on Monday called for more bipartisan support of financial technology if the sector is to thrive, emphasizing the need for greater focus on extending credit to underserved borrowers.

    • 07 Mar 2017
  • For funds shorting CMBS, retailers’ turnaround plans are key

    Hedge funds are shorting two synthetic indexes of post-crisis CMBS deals, with a third index being talked as the next target. Observers say that ailing retailers’ turnaround strategies are exactly what will play into the success of the trade.

    • 06 Mar 2017
  • Fixed income registers muted reaction to bullish Fed talk

    Federal Reserve chair Janet Yellen has given a clear indication that the central bank is set to raise interest rates this month, but the reaction in fixed income markets has been muted with investors not convinced it is a sign of an aggressive hiking strategy this year.

    • 06 Mar 2017
  • Lending Club chief says market will thrive in 2017, signals more ABS

    Online lending will thrive after withstanding a slew of bad press in 2016, said Scott Sanborn, president and chief executive of Lending Club, in a keynote address at LendIt USA 2017, while he also signalled more frequent issuance of ABS from the platform.

    • 06 Mar 2017
  • European CLOs hit tight levels with new deal

    Chenavari Investment Managers priced its third ever European CLO at its tightest levels last week, though triple-A spreads were a touch wider than other recently issued deals as sources say manager tiering is creeping into the European market.

    • 06 Mar 2017
  • Crédit Ag frees capital for $2bn of green loans

    The world of green finance has intersected with that of synthetic securitization for what may be the first time, in a $3bn risk transfer deal that could show a way to free up banks’ balance sheets to expand green lending.

    • 06 Mar 2017
  • Renew to tap Natixis for April PACE deal

    Residential and commercial Property Assessed Clean Energy (PACE) lender Renew Financial will hit the ABS market in April with a new deal, and will tap Natixis to lead the transaction, sources tell GlobalCapital.

    • 02 Mar 2017
  • BlueStep sells rare Swedish RMBS deal as BNP readies Laser

    Non-conforming Swedish lender BlueStep Bank sold its fourth RMBS deal on Thursday, with both euro and Swedish krone notes placed with investors.

    • 02 Mar 2017
  • Angel Oak debuts rated non-prime RMBS

    Angel Oak, an originator of non-prime and non-qualified mortgages, is marketing its first rated non-QM deal, a $146.47m transaction backed by 529 loans with a weighted average borrowers credit score of 698.

    • 02 Mar 2017
  • FRNs capture issuers’ fancy as rate hike looms

    China Development Bank jumped on the floating rate note (FRN) bandwagon this week, bagging $3bn equivalent and adding its name to a list of issuers that recently sold bonds in the format. With demand rather than supply driving deals, and with interest rate hikes looming, the stage is nicely set for more FRN trades, writes Addison Gong.

    • 02 Mar 2017
  • VW’s UK ABS prices at tight end

    VW’s UK auto lease ABS, Driver UK Five, priced its £340m 2.02 year class ‘A’ at 45bp, the tight end of the mid-high 40s guidance, as the issuer aimed to re-establish its pricing in the market after last year’s emissions manipulation scandal.

    • 01 Mar 2017
  • Carige firms up NPL securitization plan

    Banca Carige outlined its plan on Tuesday for a €950m NPL securitization, as part of its plan to manage down its bad loan book, which will also include a €2.4bn spin-off to a separate management vehicle.

    • 01 Mar 2017
  • FIG issuers push pedal on pricing in buoyant primary

    Financial institutions have commanded very attractive pricing levels for new issues this week, as an influx of cash in fixed income markets has shown investors are still finding value in bank credit despite the fact that spreads grind ever tighter and tighter.

    • 01 Mar 2017
  • SAIC-GMAC set for Rmb4bn auto ABS return

    SAIC-GMAC Automotive Finance is set to make its first auto ABS appearance this year with a Rmb4bn ($582m) Rongteng 2017-1 Retail Mortgage Loan Securitization — the first time it is securitising a subsidised portfolio.

    • 01 Mar 2017
  • PACE appetite goes global, say SFIG speakers

    The Property Assessed Clean Energy (PACE) ABS sector is getting attention from a broader group of investors outside the US, as frequent issuance of the energy efficiency bonds brings the asset class into the mainstream.

    • 01 Mar 2017
  • CLO equity sentiment buoyant compared to SFIG 2016

    CLO equity investors at SFIG Vegas were in an upbeat mood in a panel discussion on Monday, but with rate rises and political risks looming they said this was no time to get comfortable.

    • 01 Mar 2017
  • Growth of CRT could lead to complacency around GSE reform

    The positive track record of the government-sponsored enterprises’ credit risk transfer programmes could result in less urgency among market players to reform Fannie Mae and Freddie Mac, according to speakers on a panel at SFIG Vegas.

    • 01 Mar 2017
  • Commercial solar lenders plot growth

    There is plenty of room for growth in commercial solar securitization, SFIG Vegas attendees heard on Tuesday, and lenders need capital markets access to fund it. But lack of scale in the market is a key hurdle, creating a ‘catch 22’ situation.

    • 01 Mar 2017
  • Eliminate implicit bias to boost gender parity — Men of WiS

    An all-male Women in Securitization (WiS) panel at SFIG Vegas — a detail that sparked some controversy prior to the convention — concluded that unintentional implicit bias at all levels of an organization has stifled gender diversity among senior management in most financial services companies.

    • 01 Mar 2017
  • Home prices aiding defaults, but equity loans a concern

    Rising home prices are leading to lower rates of mortgage defaults, but an increasing number of borrowers taking out home equity loans could offset strengthening housing fundamentals, said market participants this week.

    • 01 Mar 2017