Securitization - Article Archive

  • Engine starts for Dongfeng Nissan’s VINZ 2017-1

    Dongfeng Nissan Auto Finance is set to make its annual return to the Chinese ABS market with a Rmb4bn ($580.59m) VINZ 2017-1 Retail Auto Loan Securitization.

    • 28 Apr 2017
  • Houston office CMBS priced as Starwood preps mall deal

    A new single borrower CMBS deal from Goldman Sachs was priced on Thursday, backed by 10 office properties in Houston, while a portfolio of regional malls is also said to be getting CMBS treatment in the next month.

    • 27 Apr 2017
  • Mall bears to take a mauling

    The 1978 film Dawn of the Dead satirised the mindless consumerism of 1970s America, with survivors seeking refuge in a shopping mall from flesh-eating zombies who seemed bent on returning to this once focal point of US society. A modern day remake might not hit the mark.

    • 27 Apr 2017
  • Time is ripe for PACE, solar ABS to grow investor base, says panel

    Solar and Property Assessed Clean Energy (PACE) experts at the IMN Green Investing Conference on Thursday noted that both markets will see more participation as issuance accelerates and the sectors become more sophisticated.

    • 27 Apr 2017
  • New rules set to reshape UK buy-to-let market

    Government policy is altering the landscape of the UK buy-to-let mortgage market, with changes to tax rules set to curtail participation among individual landlords and shifting the market in favour of limited companies.

    • 27 Apr 2017
  • Thunderbolt deal prices as market hypes potential for aircraft ABS

    Air Lease Corporation priced its second securitization on Tuesday, with deal watchers saying they are hoping for greater investor participation in future deals as the asset class gains momentum.

    • 26 Apr 2017
  • Double-A debt proves a tough sell for US CLOs

    US CLO double-A debt is becoming more difficult to sell as some Asian accounts hold off, leaving other investors able to push harder on stipulations in new deals.

    • 26 Apr 2017
  • Investors pour into latest UK BTL RMBS deal

    Investors continue to show near limitless demand for new UK RMBS supply, with the latest buy to let transaction heavily oversubscribed down the capital stack.

    • 26 Apr 2017
  • Confidence high in FIG as France leans to Macron

    Expectation of a victory for centrist candidate Emmanuel Macron in the French presidential election has fuelled a big rally in cash bonds this week, making conditions very supportive for borrowers returning from blackout periods and looking at executing new deals.

    • 26 Apr 2017
  • CommonBond launches in-school financing, eyes more ABS

    The online student loan refinancing platform CommonBond has launched a lending program for borrowers still in school, with the loans potentially bound for future securitizations from the company, according to chief executive David Klein.

    • 25 Apr 2017
  • Investors divided on Lone Star Irish NPL deal

    Lone Star priced its latest Irish non-performing loan RMBS to strong demand, even as some investors expressed mixed feelings about the deal structure and underlying collateral.

    • 25 Apr 2017
  • Clayton looks to grow Dutch RMBS presence

    Risk management and due diligence provider, Clayton Euro Risk, has moved to expand its Dutch footprint, hiring Maurice Wijmans as senior manager, business development for the Netherlands.

    • 25 Apr 2017
  • Policy turmoil not enough to dent latest PACE deals

    The recent noise around potentially damaging policy changes to the residential Property Assessed Clean Energy (PACE) sector had little impact on a trio of of deals that were priced on Friday and Monday.

    • 24 Apr 2017
  • US state attorneys rail against DoE student loan servicing move

    In a letter to US Department of Education secretary Betsy DeVos on Monday, attorneys general of 21 states expressed their concerns over the dismantling of “common-sense” Obama-era student loan servicing reforms.

    • 24 Apr 2017
  • Caliber scales up in non-prime RMBS with largest post-crisis deal

    Caliber Home Loans is marketing the largest non-prime, non-qualified RMBS deal since the financial crisis, with the Lone Star affiliated fund planning an offering nearly double the size of its last deal from the shelf.

    • 24 Apr 2017
  • CLO issuers question depth of EU buyer base

    The European CLO investor base may not be as deep as once thought, as managers see spreads widen in the primary market, particularly for CLO refinancings.

    • 24 Apr 2017
  • ABS relieved as Macron goes En the Marche

    Investors in France are looking ahead to June’s legislative elections under the assumption that Emmanuel Macron is set to become the next president of France on May 7 when he faces the National Front’s Marine Le Pen in a deciding vote.

    • 24 Apr 2017
  • Avant returns to ABS market with new deal

    Subprime marketplace lender Avant is readying its first ABS transaction of 2017.

    • 20 Apr 2017
  • No country for fast cash

    Buyers of UK assets are in for a hair raising ride if they attempt to make a quick quid off sterling rallies and depreciations despite what seems like a measured response to news of a general election on June 8.

    • 20 Apr 2017
  • Online shopping fuels demand for industrial exposure in conduit CMBS

    With CMBS investors shunning exposure to weak retail properties, industrial warehouse assets benefitting from the rise of online shopping are an attractive alternative for conduit lenders. Tough competition however makes sourcing assets a challenge.

    • 20 Apr 2017
  • Capital markets brace for French election 'nightmare'

    The capital markets have quieted in the run up to the first round of the French presidential election on Sunday, with investors hanging back and positioning themselves to navigate any volatility in the event of what could be a surprise, but nightmarish, result.

    • 20 Apr 2017
  • EIB invests in first synthetic securitization under Juncker plan

    Commerzbank has sold the first synthetic securitization to the European Investment Bank (EIB) under the European Fund for Strategic Investments, otherwise known as the ‘Junker Plan’, which aims to encourage lending and investment across Europe.

    • 20 Apr 2017
  • China adds five banks to NPL ABS pilot scheme

    Beijing this week picked five commercial banks as the second batch of a pilot programme that allows the issuance of asset-backed securities using their non-performing loans (NPLs).

    • 20 Apr 2017
  • Morningstar hires new CMBS ratings chief

    Morningstar Credit Ratings has hired Charles Citro as head of its CMBS ratings business.

    • 19 Apr 2017
  • Anti-PACE bills could inflict serious wounds - panel

    Property Assessed Clean Energy (PACE) industry experts warned that anti-PACE bills introduced by congressional lawmakers this month could "inflict serious wounds" on a multi-billion dollar industry if passed in their current form.

    • 19 Apr 2017
  • Middle market CLOs eye Asian, insurance company cash

    Antares Capital Advisers’ first middle market CLO in the 2.0 era was this week rumoured to have attracted the interest of Asian investors, potentially unlocking another big source of funding for a market that is also attracting larger volumes of insurance company money.

    • 19 Apr 2017
  • Mortgage slowdown drives Dutch RMBS supply concerns

    Dutch mortgage origination slowed in March, accentuating supply concerns for RMBS hungry investors, and shining a spotlight on competition for Dutch mortgage collateral.

    • 19 Apr 2017
  • Market cheers B&B mortgage bonanza

    A last minute decision by UK Asset Resolution (UKAR) to sell a larger than expected chunk of Bradford & Bingley mortgages was a development welcomed by the market, even as investors bought into the deal at very tight levels.

    • 19 Apr 2017
  • Revving up: Mercedes-Benz, Ford price auto loan ABS

    Daimler’s subsidiary Mercedes-Benz Auto Finance priced its first transaction under the Silver Arrow China series in 2017, while Ford Automotive Finance (China) also wrapped up its auto loan ABS, Fuyuan 2017-1.

    • 19 Apr 2017
  • Dollars in focus as blackouts and elections curb euro supply for FIG

    US banks having been piling back into the dollar market after publishing their results for the first quarter of 2017, while upcoming elections in the UK and France have helped subdue supply in euros.

    • 19 Apr 2017
  • Thunderbolt aircraft deal strikes ABS primary

    Air Lease Corporation is marketing its second term securitization, Thunderbolt (TBOLT) 2017, amid increasing interest in the sector from a range of fixed income buyers.

    • 18 Apr 2017
  • BMO sets up RMBS vehicle for breakthrough mortgage deal

    Bank of Montreal has set up a securitization vehicle that could issue its first RMBS deal soon, backed by C$2bn of uninsured prime mortgages, as analysts said new lending rules could spark the emergence of a Canadian private label RMBS market.

    • 18 Apr 2017
  • US CLO triple-As defy spread widening trend

    Managers priced four new issue US CLOs last week, as unsatisfied demand helped triple-A spreads to grind even tighter despite softening in the rest of the capital stack.

    • 18 Apr 2017
  • A hard Brexit beats a clueless Brexit

    Capital markets seem content with UK Prime Minister Theresa May’s election confidence on the back of commanding poll data but investors be wary of shocks on polling day. A move meant to shore up May could instead lead to more uncertainty.

    • 18 Apr 2017
  • Republican PACE plan conflicts with wider anti-CFPB stance

    A trio of Republican senators this month unveiled a proposal to bring Property Assessed Clean Energy (PACE) loans in line with other consumer debt products under the watch of the Consumer Financial Protection Bureau. Yet their rhetoric sends a conflicting message, in the context of the party's wider criticisms of the agency.

    • 18 Apr 2017
  • Investors push back on tight spreads for latest Irish RMBS

    European investors bought into an Irish RMBS offering from Mars Capital late last week, but the pricing of the deal suggested some push back from buyers on steadily tightening European RMBS spreads.

    • 18 Apr 2017
  • Robust ICG activity propels Citi’s first-quarter performance

    Citi reported last Thursday that its robust investment banking revenues, together with the sale of its legacy assets, helped to boost the bank’s profit for the first quarter of 2017.

    • 17 Apr 2017
  • Exeter prices auto ABS, as subprime concerns loom

    Subprime auto issuer Exeter Finance priced EART 2017-2 on Wednesday, its second subprime auto ABS of the year, hitting the market at a time of growing concern over declining vehicle prices and rising borrower delinquencies in the sector.

    • 17 Apr 2017
  • Sunnova prices latest residential solar ABS

    Houston-based residential solar finance company Sunnova priced a debut ABS transaction this week, putting the issuance volume of solar ABS year to date higher than in the whole of 2016.

    • 14 Apr 2017
  • DRB prices private student loan ABS

    Darien Rowayton Bank on Thursday priced DRB 2017-A, a $307.45m private student loan ABS transaction, as the market for student loan deals picks up momentum in the second quarter.

    • 13 Apr 2017
  • Rare container lease ABS enters pipeline

    Shipping container leasing company Seaco Global is making a splash in the ABS primary market with a rare offering backed by leases on shipping containers.

    • 13 Apr 2017
  • Banks at risk from drought, reveals groundbreaking research

    A glimpse of the future has arrived with the publication of a report modelling the credit risk banks face from drought. The effect on loan portfolios could be severe — and the research illustrates the new kinds of risk management banks will have to do as the world’s climate becomes more volatile.

    • 13 Apr 2017
  • B&B securitization greeted with heavy investor demand

    Investors piled into the UK government’s securitization of a portfolio of Bradford & Bingley buy to let mortgages, as buyers snap up sterling backed mortgage assets in the absence of meaningful new supply.

    • 13 Apr 2017
  • ABS investors divided over credit scoring overhaul

    Recently announced plans by consumer credit reporting agencies Equifax, Experian and TransUnion to remove tax lien and civil judgement data from their credit reports have generated huge buzz in the market, but ABS investors are undecided on how the move will impact the credit quality of future deals.

    • 12 Apr 2017
  • S&P signals concerns on office property refinancing risk

    Most focus in US commercial real estate has been on the ailing retail sector, but S&P Global Ratings analysts said this week that the office sector was worth a closer look, as the largest quarter in the CMBS maturity wall gets under way this month.

    • 12 Apr 2017
  • Loosening US mortgage lending rules? What could go wrong?

    It is obvious that there is no love lost among Republicans for the Consumer Financial Protection Bureau and its director, Richard Cordray. However, one GOP congressman’s recent tirade against the CFPB’s mortgage lending rules is worrying given the experience of the housing bust.

    • 12 Apr 2017
  • Flurry of managers rush EU CLO primary

    The Carlyle Group, CQS Investment Management, Bain Capital and Spire Partners were in the market with CLOs this week, sprinting to get deals out the door ahead of the Easter break.

    • 12 Apr 2017
  • CLO equity buyers eye risk retention, warehouse first loss pieces

    Risk retention financing and warehouse first loss pieces are becoming increasingly attractive trades for European CLO equity buyers as they face growing competition from US buyers and junior debt investors creeping down the capital stack.

    • 12 Apr 2017
  • Debut Tidewater card deal washes into ABS primary

    A debut subprime credit card securitization from Tidewater Finance Company is being marketed despite mounting concerns over the subprime sector.

    • 11 Apr 2017
  • KKR invests in Italian NPL servicer

    KKR has bought into Italian non-performing loan servicer Sistemia in a deal for an undisclosed value, but which gives the private equity firm access to a fee pool that could be around €25bn.

    • 11 Apr 2017
  • GOP congressman renews fight against CFPB mortgage rules

    Efforts were renewed this week to rein in the power of the Consumer Financial Protection Bureau, with a Republican congressman taking aim at the agency’s mortgage underwriting rules.

    • 11 Apr 2017
  • Funding Circle to stop property lending

    UK based online lender Funding Circle will stop lending for property development by mid-2018, it said on Monday, as it looks to expand its core small business lending product to new international markets.

    • 11 Apr 2017
  • Rhode Island Student Loan Authority sells latest SLABS deal

    A tax exempt student loan ABS deal issued by the Rhode Island Student Loan Authority was priced on Friday, with a large real money account said to be a major investor in the transaction.

    • 10 Apr 2017
  • Latest CMBS prices, as US buyers skew away from retail exposures

    Bank of America Merrill Lynch, Wells Fargo and Morgan Stanley priced a $1bn CMBS conduit deal at the end of last week, as investors steer towards bank-originated assets and away from seasoned deals with higher levels of retail exposure.

    • 10 Apr 2017
  • Blackstone structures rare UK CMBS deal

    US private equity firm Blackstone closed a UK CMBS deal last week, backed by a loan secured on a London office property that was previously securitized in a Morgan Stanley CMBS deal which was repaid in 2012.

    • 10 Apr 2017
  • Precise to spring more BTL paper on UK RMBS market

    Non-bank lender Precise has mandated leads for a new £300m RMBS transaction, backed by prime UK buy-to-let properties, despite two legacy BTL deals backed by £11.8bn of Bradford & Bingley BTL mortgages surfacing last week.

    • 10 Apr 2017
  • Mercedes-Benz readies auto loan ABS comeback

    China’s auto ABS market is heating up after a third deal was announced within a week. Mercedes-Benz Auto Finance’s Silver Arrow China 2017-1 is the latest, featuring two hard credit enhancements and a liquidity support of a general reserve amount.

    • 10 Apr 2017
  • Congress takes aim at PACE finance

    Congressional lawmakers last week proposed legislation targeting the Property Assessed Clean Energy (PACE) program for homeowners, a measure they say is aimed at protecting consumers from predatory lending.

    • 07 Apr 2017
  • Ygrene, Renovate deals heat up PACE pipeline

    The Property Assessed Clean Energy (PACE) ABS pipeline, which saw a flurry of activity towards the end of last year but has been quiet so far in 2017, has come alive, with Renovate America and Ygrene Energy marketing new deals.

    • 06 Apr 2017
  • Spire and Citi take home GlobalCapital's EU CLO awards

    On Wednesday, April 5, GlobalCapital presented its annual European CLO awards at the IMN Investors' Conference on European CLOs and Leveraged Loans in London.

    • 06 Apr 2017
  • Goldman’s special trade

    While Goldman is a joint lead on Blackstone’s piece of the Bradford & Bingley sale, its involvement is very different to that of Citi and BAML. Those firms were hired by UK Asset Resolution, the seller of the mortgages, but Goldman was brought in by Blackstone.

    • 06 Apr 2017
  • Fed discusses shrinking MBS exposure

    The US Federal Reserve could start reducing its mortgage backed securities holdings in 2017, something that the market may welcome given the drop in supply seen so far this year.

    • 06 Apr 2017
  • UK government tries to shake ghost of privatisations past

    The UK government is selling almost £16bn of state assets into the securitization market this month, but is trying to make sure unwarranted profits from the deals flow back to the Treasury, following criticisms of the last round of privatisations. David Bell, Owen Sanderson and Sam Kerr report.

    • 06 Apr 2017
  • US duo hit Europe with debut CLOs

    New Jersey based asset manager Onex Credit Partners has closed its first European CLO, while fellow US manager HPS has also launched a first deal in the European market.

    • 06 Apr 2017
  • Timid UK government will hurt taxpayers

    Governments are often pilloried for privatisations, sometimes for years afterwards. It’s hard for them to win, with one of the biggest risks being taking the blame for underpricing the asset.

    • 06 Apr 2017
  • Ford starts engine for Rmb3bn auto ABS ride

    Ford Automotive Finance (China) is readying its Rmb3bn ($435m) auto ABS transaction, its first this year and its sixth on the Mainland. But investors hoping for some new features will be disappointed, as the new transaction shares similar features with its last two outings in 2016.

    • 06 Apr 2017
  • EU ministers gear up to tackle €1tr NPL problem

    The EU’s finance ministers will hold a debate on Friday about non-performing loans (NPLs), during an informal Economic and Financial Affairs Council (Ecofin) meeting in Malta. The debate aims to start work on a European strategy for bringing down NPLs, though some argue this should be tackled at national level.

    • 06 Apr 2017
  • IHS Markit prepping agency CRT index

    Data and index provider IHS Markit is in talks with participants in the agency credit risk transfer (CRT) sector to develop a tradeable index that tracks the performance of outstanding CAS and STACR bonds issued by Fannie Mae and Freddie Mac.

    • 05 Apr 2017
  • Cross River Bank sues state of Colorado

    New Jersey-based Cross River Bank filed a declaratory judgment action against the state of Colorado this week, looking to protect its ability to extend credit and sell loans across the country, as well as the broader bank partnership model that some online lending platforms have adopted.

    • 05 Apr 2017
  • Private equity mortgage exits heat up with Irish NPL deal

    A Lone Star fund has launched a new securitization backed by non-performing Irish mortgages originated by Bank of Scotland, the second deal backed by Irish legacy assets to emerge this week as private equity firms look to exit post-crisis mortgage investments in Europe’s periphery.

    • 05 Apr 2017
  • Cov-lite not yet a problem for EU CLOs, but recovery data unclear

    Speakers at the IMN Investors’ Conference on European CLOs and Leveraged Loans, held in London on Wednesday, said that “covenant lite” loans in CLOs are not yet a problem for the market, but warned the audience that recovery rates have yet to be truly tested.

    • 05 Apr 2017
  • European CLO managers eye more fluid global investor base

    The global CLO investor base is becoming increasingly fluid, with US, European and Japanese investors moving between markets based on relative value and credit quality with greater ease, attendees at the IMN Investors’ Conference on European CLOs and Leveraged Loans heard on Wednesday.

    • 05 Apr 2017
  • BMW gears up for China auto ABS return

    BMW Automotive Finance (China) Co is looking to launch its first auto loan asset-backed securities of the year, with bookbuilding for the Rmb4bn ($580.7m) Bavarian Sky China 2017-1 set to kick off on April 10.

    • 05 Apr 2017
  • Residential PACE lender hires former GSE bigwig

    Paige Wisdom, the former chief enterprise risk officer at Freddie Mac, has joined residential Property Assessed Clean Energy (PACE) lender Renovate America as chief financial officer.

    • 04 Apr 2017
  • Navient should drop the customer-friendly claims

    As Navient braces itself ahead of a fight with the Consumer Financial Protection Bureau, it's arguing it's just an arm's length student loan servicer — while continuing to claim a more customer-friendly approach on its website.

    • 04 Apr 2017
  • New issue CLOs take a back seat to refis in historic quarter

    Issuance of US CLOs reached record levels in the first quarter of the year, but the number of new deals paled in comparison to refinancing and resets of legacy transactions.

    • 04 Apr 2017
  • Blackstone, Prudential launch securitizations of £11.8bn B&B mortgage book

    Funds managed by Blackstone and Prudential launched securitization deals backed by their acquisitions of £11.8bn of Bradford & Bingley buy-to-let mortgages from UK Asset Resolution on Tuesday, with a consortium of UK banks set to hoover up the bulk of the notes.

    • 04 Apr 2017
  • Mars Capital to securitize crisis-era Irish mortgages

    Oaktree Capital Management affiliate Mars Capital is marketing a securitization of crisis-era Irish mortgages, with a pan-European roadshow taking place this week.

    • 04 Apr 2017
  • CLO managers stomach energy loan repricing frenzy

    CLO managers have been forced to endure a wave of term loan B repricings from energy sector obligors in the first quarter of the year, as demand for leveraged loans allows borrowers to refinance at more attractive levels.

    • 03 Apr 2017
  • Sunnova set to launch debut securitization

    Sunnova Energy Corp. is preparing to issue an inaugural ABS transaction backed by contracts tied to residential rooftop solar systems.

    • 03 Apr 2017
  • Fed's Dudley sounds alarm on impact of student debt on mortgage market

    William Dudley, president and CEO of the Federal Reserve Bank of New York, issued a warning on Monday about the potential long term negative impact of soaring US student debt levels on homeownership.

    • 03 Apr 2017
  • Bradford and Bingley securitization on the cards

    The £11.8bn sale of two Bradford and Bingley buy-to-let mortgage portfolios to Blackstone and Prudential plc, is likely to lead to securitization, GlobalCapital understands.

    • 03 Apr 2017
  • UK RMBS appetite drives tight pricing for Northview deal

    Northview Group priced its latest RMBS offering on Friday at tight spread levels, as investor interest in UK non-bank RMBS remains elevated.

    • 03 Apr 2017