Securitization - Article Archive

  • Deutsche Bank eyes budding European PACE market

    Deutsche Bank is looking to get in on the ground floor of the European Property Assessed Clean Energy (PACE) market as the sector opens up across the Atlantic, with sources saying the bank wants to offer its services as a bookrunner for future PACE ABS deals on the continent.

    • 31 May 2017
  • US CLO managers pinched by low supply, fee sharing

    CLO managers are preparing for a quiet summer as a barren leveraged loan market continues to dampen warehouse formation, while sources report equity investors are increasingly asking for a cut of managers’ fees as equity returns dwindle.

    • 31 May 2017
  • Issuers churn out new European CLOs

    CLO managers are set to price two new European transactions in the coming days, joining a wave of European securitization issuers pumping out deals ahead of the Global ABS conference next week.

    • 31 May 2017
  • EU lawmakers settle on STS deal, ending long fight over ABS in Europe

    The European Parliament, Commission and Council have ended a years long standoff over the treatment of European securitization, reaching political agreement over the ‘simple, transparent, standardised’ (STS) ABS framework on Tuesday. GlobalCapital assesses the impact.

    • 31 May 2017
  • Securitization breakthrough as Europe agrees on STS

    European lawmakers came to a political agreement on Tuesday night on the framework for the simple transparent and standardised (STS) securitization regulation, which has been debated over the better part of the last two years.

    • 31 May 2017
  • Apollo prices fourth aircraft ABS transaction

    Apollo Aviation Management priced its fourth ABS transaction at the end of last week, selling a no-grow deal that will finance a fleet of 32 aircraft.

    • 30 May 2017
  • Signet to pull out of financing biz with loan sales, outsourcing

    Jewellery retailer Signet Jewelers announced plans last week to sell down and outsource its consumer financing business, and said it would eliminate “material credit risk” from its balance sheet.

    • 30 May 2017
  • The old with the new: plotting the course for European CLOs

    The European CLO market has reached a juncture. The asset class has performed well over the past two years, with spreads ratcheting to post-crisis tights while a broader range of investors from across the globe have been drawn to the sector.

    • 30 May 2017
  • The EU’s simple and standard ABS framework is anything but

    Is there a way to marry European political will with a strong and stable securitization market? Sam Kerr dives into the struggle that has dogged European securitization and looks at the highly politicised debate over the future of ABS under the European Union’s ‘simple, transparent and standardised’ framework

    • 30 May 2017
  • Millennial bug: US CMBS tackles retail sickness

    Generational changes affecting the way consumers in the US shop, work and live, could be set to transform the nation’s commercial real estate market. The plight of shopping malls, and the wider retail sector, is the topic that has caused most immediate concern in the CMBS market. But that’s not the only factor that market participants should be concerned about, writes David Bell

    • 30 May 2017
  • Banking on the underbanked: shedding the subprime stigma

    The number of underbanked borrowers in America has grown since the financial crisis as their access to mainstream forms of credit has narrowed. Sasha Padbidri examines how some companies are working to erase the subprime stigma, experimenting with alternative methods of underwriting

    • 30 May 2017
  • Turning on the spigot for US consumer ABS

    The US consumer finance market has come a long way since the depths of the global financial crisis. By most metrics, the market has not just climbed back to the peak but is continuing to rise to new heights. ABS has become a key part of that ascent, as lenders look to extend both secured and unsecured consumer credit.

    • 30 May 2017
  • California shopping mall carved up for CMBS

    A $185m single borrower CMBS offering is in the market this week, backed by a loan that is part of a larger financing package for a California shopping mall owned by Simon Property Group, with the remaining debt expected to be packaged into future conduit deals.

    • 30 May 2017
  • UK sovereign fund is a good idea for all parties

    A plan buried in the Conservative Manifesto calling for the creation of UK sovereign wealth funds should be taken on whichever party finds itself in power next month.

    • 30 May 2017
  • European ABS gets crowded as yield hunt intensifies

    European bond buyers are on a desperate hunt for yield amid negative interest rates in other sectors. But with limited supply and soaring demand, ABS issuers are seeing heavy oversubscription in new deals, particularly for mezzanine debt.

    • 30 May 2017
  • Atlante fund gets exclusive securitization rights for MPS

    The Atlante II fund, the Italian bank-backed investment vehicle tasked with tackling the mountain of Italian non-performing loans, has been given the exclusive right to securitize the €1.6bn portfolio of Banca Monte dei Paschi di Siena (MPS).

    • 30 May 2017
  • Japanese big hitter steps into US middle market CLOs

    Japan's Norinchukin Bank is understood to have invested in US middle market CLOs for the first time, the latest chapter in the evolution of the bank’s CLO investing strategy, writes David Bell. It accompanies a growing surge of liquidity in middle market lending in what could be a breakout year for the sector.

    • 25 May 2017
  • Capital calculations last item blocking EU ABS plan

    European Union (EU) member states are conducting last-minute talks on how to calculate capital requirements in the draft framework for European securitizations.

    • 25 May 2017
  • Morningstar flags $100m of CMBS, as retail woes hit Rue21

    Morningstar Credit Ratings has identified the most vulnerable US CMBS loans with exposure to teen fashion chain Rue21, with $100m of CMBS debt said to be vulnerable to default if the company decides to close more stores.

    • 25 May 2017
  • 'UK sovereign wealth funds' could tap capital markets

    The Conservative Party has laid out plans for a number of UK sovereign wealth funds which will be used to fund investment in UK infrastructure and the economy. But for the idea to succeed, observers said the funds must be kept out of any short-term political wrangling.

    • 25 May 2017
  • Buyers go mad for insurance premium ABS

    A novel ABS transaction backed by insurance premium payments drew heavy demand this week, with buyers piling into the bonds throughout the capital stack.

    • 25 May 2017
  • UK RMBS primary market springs to life

    The UK RMBS market is picking up steam following the pricing of the year’s first prime offering from Principality Building Society and a buy-to-let offering backed by prime mortgages.

    • 25 May 2017
  • Seacube prices as outlook for containers improves

    New Jersey-based Seacube Container Leasing priced a container lease deal on Wednesday amid growing industry buzz around the once sluggish asset class.

    • 24 May 2017
  • Risk retention rules spawn third party growth, engineering

    Risk retention sponsors are hiring third party firms to help accurately value their horizontal strips of US CLO equity, although the growth of bank financing is also encouraging more managers to adopt the vertical approach to the regulation.

    • 24 May 2017
  • VW leans on politicians for STS solution

    Volkswagen has called on EU politicians to come up with a market friendly solution to the 'simple transparent, standardised' (STS) securitization framework when the trilogue talks resume at the end of the month.

    • 24 May 2017
  • The Annual GlobalCapital US Securitization Awards: The Winners

    On Tuesday, May 23, GlobalCapital held its fourth annual securitization industry awards dinner at the Plaza Hotel in Manhattan.

    • 24 May 2017
  • Four-tranche success for SAIC-GMAC’s second 2017 ABS

    SAIC-GMAC Automotive Finance has made a rapid return to the China auto ABS market with its second deal of 2017. This time around, the firm opted for four tranches with its Rmb4bn ($580m) Rongteng 2017-2 Retail Auto Mortgage Loan Securitization.

    • 24 May 2017
  • Carrefour prices French card deal

    Carrefour Banque has priced Series 2017-1 of its Master Credit Cards Pass Compartment France series, selling the bonds at the tight end of price guidance.

    • 23 May 2017
  • Credit slips as multifamily competition grows

    Multifamily CMBS underwriting standards have been slipping, according to JP Morgan analysts, as growing appetite from the government sponsored enterprises (GSEs) drives competition among agency and private label lenders.

    • 23 May 2017
  • Blockchain platform eyes ABS market for funding

    Secured Automated Lending Technology (Salt), a Denver-based blockchain company, is eyeing the securitization market to finance its growth, chief executive Shawn Owen tells GlobalCapital.

    • 23 May 2017
  • CofE’s fund performance either luck, judgement or divine inspiration

    The strong performance of the Church of England’s investment fund over the last decade either proves that the Church Commissioners have worked out a prudent investment formula, predicated on patience or they are benefiting from the aid of the ultimate market mover.

    • 23 May 2017
  • Goldman prices CMBS as issuers prep another $2.7bn for issuance

    Goldman Sachs priced a conduit CMBS transaction on Friday, while issuers this week prepare to offer investors another $2.7bn of bonds in a busy run up to the annual CREFC industry conference in the first week of June.

    • 22 May 2017
  • Aircraft, drug royalty ABS fill crowded esoteric pipeline

    A $150m drug royalty offering from DRI Capital, a Toronto-based healthcare royalty fund manager, and a $612m aircraft ABS from Apollo Aviation Management have hit the market as bids heat up for esoteric ABS paper in the second quarter.

    • 22 May 2017
  • Eurotunnel prices €2bn debt restructuring

    Eurotunnel Group, the owner and operator of the Channel Tunnel, has completed its €1.98bn debt restructuring.

    • 22 May 2017
  • Issuers crowd European CLO primary pipeline

    A flood of European CLO paper washed through the primary pipeline in the past week, with issuers across asset classes flipping the switch following a lull in the wider euro ABS market.

    • 22 May 2017
  • Beijing Hyundai goes big with Autopia China 2017-1

    The leads have priced the senior fixed rate notes of Beijing Hyundai Motor Group’s Rmb3.5bn ($508.7m) Autopia China 2017-1 Retail Auto Mortgage Loan Securitization Trust, its largest ABS in the country to date.

    • 22 May 2017
  • Bull run can charge through Trump but not forever

    Wednesday’s sharp fall in the S&P 500, as the political storm around US president Donald Trump’s links with Russia intensified, has not turned into a market rout... yet. Equities bankers, indeed, are convinced it is a blip, saying investor appetite for stocks remains strong.

    • 18 May 2017
  • Aircraft ABS pros call for greater standardization

    Aircraft ABS could find a bigger buyer base and issuance could become more frequent if deals were less bespoke, said panelists at the Annual North America Airfinance Conference in New York this week.

    • 18 May 2017
  • Liquidity surge in middle market lending drives CLO boom

    A flood of capital into the US middle market is fuelling a rise in CLO issuance, with the product also set to expand into Europe for the first time.

    • 18 May 2017
  • Euro pipeline fills up ahead of Barcelona ABS confab

    The European ABS market shifted to high gear this week, as market participants prepare to head off to Barcelona for Global ABS on June 6.

    • 18 May 2017
  • Buyers weigh negative yields as spreads plummet

    European ABS spreads have plunged to new tights, but for many investors, effective negative yields are still a better alternative to holding cash.

    • 18 May 2017
  • Pair of student loan refi ABS enter pipeline

    Online lenders Earnest and SoFi are each marketing student loan refinancing transactions this week, as rumors of Earnest putting itself up for sale percolate in the market.

    • 17 May 2017
  • Hotel heavy single borrower deal hits hot CMBS market

    A $754m CMBS deal backed by a single loan secured by a portfolio of hotel assets hit the primary market this week, with demand for the highly leveraged deal reflective of the widespread bullishness in the wider fixed income markets, say sources.

    • 17 May 2017
  • Trilogue breakdown drags out STS talks

    Disagreements between the European Parliament, Council and Commission over the final look of its 'simple, transparent and standardised' (STS) securitization framework halted talks this week, dragging out discussions until the end of the month when EU legislators will have to meet again to try and hammer out a deal.

    • 17 May 2017
  • Huge demand drives BMW auto ABS to post-crisis tight levels

    BMW Bank priced Bavarian Sky 6 this week, its first auto ABS transaction of the year, with surging investor demand driving pricing for European auto ABS to the tightest levels since the crisis.

    • 17 May 2017
  • Obvion markets second Green Storm deal

    Dutch mortgage lender Obvion is marketing its second ever green RMBS transaction, Green Storm 2017, on the back of heavy investor demand for its debut green deal last year.

    • 17 May 2017
  • Capital trades lead FIG supply boom

    Bank treasury departments have spied a golden opportunity to make headway on the riskiest parts of their funding strategies this week, but bankers are keeping their eyes peeled for sign that the mountain of supply is pushing bond spreads wider in secondary.

    • 17 May 2017
  • Investors ride with Toyota on rare China ABS offering

    Toyota Motor Finance (China) Co priced the senior notes of its Rmb3bn ($434.5m) Glory 2017 Phase I Auto Loan Credit Asset-backed Securities on Tuesday. The deal had some rarity value as it is only the second auto ABS offered by the originator in China in three years.

    • 17 May 2017
  • Evolving structures, new collateral mark new era for aircraft ABS — panel

    Aircraft ABS transactions have benefited from changes in deal structures and new collateral since the market restarted in 2013, said panelists at the Annual North America Airfinance Conference on Tuesday. However, speakers also warned that broader market events like the bankruptcy of Italian airline Alitalia could be problematic for outstanding transactions.

    • 16 May 2017
  • As portfolios shrink, CMBS servicers turn to GSEs

    The four largest commercial mortgage servicers in the US are successfully battling a decline in the volume of outstanding CMBS loans by ramping up their involvement in deals from the government sponsored enterprises, said Morningstar Credit Ratings on Monday.

    • 16 May 2017
  • Hot potato with Italian NPLs doesn't help

    There is no easy answer to the non-performing loan problem that continues to weigh on Italian banks, but rather than a lasting solution it's touted to be, the Atlante fund is nothing more than a short term fix.

    • 16 May 2017
  • ECB publishes final leveraged lending guidelines

    The European Central Bank published its final guidelines on leveraged lending on Tuesday, clarifying issues that arose during the consultation period beginning in September. The guidelines are set to be implemented later this year.

    • 16 May 2017
  • Banca Sistema hits primary with rare Italian ABS

    Banca Sistema is hitting the road this week with a consumer ABS deal backing loans tied to employees' pensions and salaries, known as Cessione del Quinto (CDQ) and Delegazione di Pagamento loans (DP) loans.

    • 16 May 2017
  • SAIC-GMAC makes rapid return with Rmb4bn auto ABS

    Less than two months since its last ABS outing, SAIC-GMAC Automotive Finance has already set its sights on its second China auto ABS of the year. The four-portion Rmb4bn ($580m) Rongteng 2017-2 Retail Auto Mortgage Loan Securitization is set to open next Monday.

    • 16 May 2017
  • VW prints Rmb4.5bn Driver China six auto ABS

    Volkswagen (VW) priced the senior class A and class B portions of its Rmb4.5bn ($652.66m) Driver China Six Trust on May 12. The originator opted for a pure static asset pool for its first 2017 ABS outing, having gone down the revolving route in its last transaction.

    • 16 May 2017
  • Prosper makes ABS return

    Online consumer lender Prosper has returned to the securitization market with PMIT 2017-1, following an agreement made in February by a consortium of institutions to purchase up to $5bn worth of Prosper loans over the next 24 months.

    • 15 May 2017
  • $1.5bn of office, hospitality single asset CMBS priced

    Three single asset single borrower deals totalling nearly $1.5bn were placed in the US CMBS market last week, while another single borrower deal and a new conduit from Goldman Sachs have been added to a busy second quarter pipeline.

    • 15 May 2017
  • Principality markets first UK prime RMBS of 2017

    Principality Building Society is hitting the market with the first UK prime RMBS deal of 2017 as investors cry out for supply, which has been crippled by the Bank of England’s Term Funding Scheme.

    • 15 May 2017
  • Premium Credit marketing insurance finance ABS

    Premium Credit is hitting the road this week with a new consumer ABS deal backed primarily by financing for insurance premiums.

    • 15 May 2017
  • Five Guys, Church's Chicken serve up whole business ABS feast

    Burger chain Five Guys and fried chicken franchise Church’s Chicken are in the market with ABS transactions this week, hoping investors have room for more after a particularly filling start to 2017 for whole business securitizations.

    • 11 May 2017
  • Fannie and Freddie to lure international cash with new vehicles

    Fannie Mae and Freddie Mac, the US's government sponsored mortgage giants, plan to ramp up their credit risk transfer programmes by roping in Reit and international investors. Both institutions face their capital buffers being reduced to zero next year, raising the prospect of additional taxpayer burdens, writes David Bell.

    • 11 May 2017
  • CFPB shines a light on small biz lending

    The Consumer Financial Protection Bureau (CFPB) is looking to better understand changes underway in the small business lending sector, issuing a request for information on how borrowers are faring and how the market is shifting toward alternative sources of financing.

    • 11 May 2017
  • KKR unit wins Greece NPE licence

    KKR’s Pillarstone platform has been granted a licence by the Bank of Greece to manage non-performing exposures for Greek banks.

    • 11 May 2017
  • Carlyle seeks cov-lite amendment

    Carlyle is attempting to get an amendment on a 2015 CLO, Carlyle Global Market Strategies Euro 2015-3, to raise the covenant-lite limits in the deal to 90% from 80%.

    • 11 May 2017
  • MEP Paul Tang talks STS, Brexit and future of EU ABS

    Member of the European Parliament Paul Tang speaks with GlobalCapital about STS, Brexit and the role of securitization in Europe.

    • 11 May 2017
  • Nomura hires Citi's Jallot as EMEA markets head

    Nomura has hired Frederic Jallot from Citi as head of global markets for EMEA.

    • 11 May 2017
  • Toyota, Beijing Hyundai set for annual auto ABS rides

    Toyota Motor Finance (China) Co is back with its Rmb3bn ($434.5m) Glory 2017 Phase I Auto Loan Credit Asset-backed Securities, while Beijing Hyundai Motor Group is looking to launch its first auto ABS transaction of the year. Both deals are set to open next week.

    • 11 May 2017
  • SoFi looks to deepen buyer base with S&P stamp on latest ABS

    A $530m consumer loan offering from online lender SoFi is expected to garner interest from a bigger group of investors than previous deals, with S&P Global Ratings tapped to rate an offering from the issuer's consumer loan shelf for the first time.

    • 10 May 2017
  • Smaller players losing out in CMBS conduit market

    US risk retention rules have created a more concentrated CMBS conduit market in the six months since the regulation was implemented, as mortgage brokers and investors favour larger lenders at the expense of smaller non-bank originators.

    • 10 May 2017
  • HPS prices debut European CLO

    HPS Investment Partners has priced its first-ever European CLO, the first new issue deal to be priced in May and the 13th of 2017.

    • 10 May 2017
  • Italy’s Atlante fund buys first securitization

    Atlante II, the Italian rescue fund designed to take bad loans of the balance sheets of distressed Italian banks, has financed its first securitization.

    • 10 May 2017
  • MPL industry rights itself after year of turmoil, but cyclical concerns persist - panel

    The marketplace lending industry is back on course after a year of damaging headwinds, said panelists at a PeerIQ event on Tuesday, but there are divided views over crisis contingency plans.

    • 09 May 2017
  • GSEs unveil proposals to boost credit to underserved housing sectors

    Government sponsored enterprises Fannie Mae and Freddie Mac have submitted proposals to extend their activities into under-served areas of the housing market, including mobile homes, rural housing and preserving affordable housing.

    • 09 May 2017
  • Eurotunnel moves ahead on debt refinancing

    Eurotunnel, the operator of the Channel Tunnel, is hitting the road again to refinance the notes in its whole business securitization, Channel Link Enterprises Finance plc.

    • 09 May 2017
  • Rare movement in container pipeline with Textainer deal

    The container ABS sector is seeing some activity return with a container lease ABS from Textainer Marine Containers, as market players shrug off last year’s Hanjin woes.

    • 08 May 2017
  • Freddie Mac mulls STACR switch to target REIT investors

    Freddie Mac is considering changing the structure of its structured agency credit risk (STACR) transactions, to open up the market to much bigger participation from real estate investment trust (REIT) investors.

    • 08 May 2017
  • Macro backdrop lends mixed outlook to US CLO rally, say analysts

    Technical factors have driven US CLO spreads to record tight levels, and analysts have said there could be further room for the rally to run — though concerns around a falling oil price and reflation rate mean mezzanine tranches may have more limited potential for further tightening.

    • 08 May 2017
  • EIF backs Spanish SMEs as part of funding initiative

    The European Investment Fund has agreed to guarantee 50% of a portfolio of Spanish SME credit originated by nine banks.

    • 08 May 2017
  • BMW Bank marketing latest German auto ABS

    BMW is marketing its latest German auto ABS, Bavarian Sky Germany 6.

    • 08 May 2017
  • Euro house prices accelerating but UK growth slows

    House prices across Europe increased in 2016, but in the UK, while prices are still going up, the rate of growth has begun to to slow.

    • 08 May 2017
  • Dongfeng Nissan steers Rmb4bn VINZ 2017-1 ABS

    Dongfeng Nissan Auto Finance priced its Rmb4bn ($580.59m) VINZ 2017-1 Retail Auto Loan Securitization on Thursday last week — the originator’s fifth in China.

    • 08 May 2017
  • Don’t re-engineer risk retention

    Rules are made to be broken — even the ABS risk retention rules it seems. But structured finance officials should think long and hard hard about whether they want to return to a world where credit quality is an afterthought.

    • 04 May 2017
  • Hedge funds lever up CLO equity as yields slip

    Investor thirst for leverage has been intensifying in the US CLO market over the last six months. But while demand is hottest for levered bets on rated debt tranches, GlobalCapital understands that two banks have offered hedge funds leverage on equity tranches, one of the riskiest things an investor can do in structured finance. David Bell reports.

    • 04 May 2017
  • Coinstar mints first whole business ABS

    Sole lead Guggenheim on Thursday priced a $900m whole business deal from Coinstar Inc., a debut securitization from the owner and operator of self-service coin counting machines.

    • 04 May 2017
  • Investors pile into CIBC credit card deal

    Bookrunners doubled the size of a credit card securitization from CIBC on Thursday to meet demand from US investors hungry for Canadian ABS.

    • 04 May 2017
  • Banc of California eyes commercial PACE market

    Banc of California is eyeing a move into the Property Assessed Clean Energy (Pace) market, looking to provide funding for the growing commercial Pace sector.

    • 04 May 2017
  • Market doubts potential for Italian NPL cure-all

    The success of recent Irish and Spanish non-performing loan securitizations has been a boon for beleaguered banks but anyone hoping for the same model to work for Italy will be sorely disappointed, said market participants.

    • 04 May 2017
  • ESNs set for regulatory lift

    The idea of a new European Secured Note (ESN) asset class has struggled to get off the ground, but with a regulatory push and normalising monetary policy, it could at last be set for take off.

    • 04 May 2017
  • VW kicks off 2017 with Rmb4.5bn Driver China transaction

    Volkswagen Finance (China) is returning to the ABS market with its Rmb4.5bn ($652.66m) Driver China six, having sold three auto ABS in the Mainland last year.

    • 04 May 2017
  • Lipstick Building, 75 Broad Street prepped for CMBS

    Loans on a pair of New York office buildings will back two separate single asset CMBS offerings in coming weeks, with more conduit volume also expected, as analysts predict deal volume to surge past 2016 levels following a slow start to the year.

    • 03 May 2017
  • Longer reinvestment periods produce mixed results for EU CLOs

    Extending reinvestment periods for European CLOs will benefit managers and equity investors but could have negative implications for credit overall, said S&P Global Ratings in its first quarter CLO performance report.

    • 03 May 2017
  • Japanese buyers widen manager lists as CLO bid heats up

    Japanese CLO buyers are widening their investment mandates to include a broader range of managers and, for the first time, are looking at refinancing transactions.

    • 02 May 2017
  • Bank of England should reassess TFS

    As Brexit appears to be a damp squib, at least for now, the Bank of England should consider ending its Term Funding Scheme to bring UK mortgage funding back to normal levels.

    • 02 May 2017
  • Commerzbank CLO priced, as HPS preps EU debut

    The primary European CLO market is getting crowded, with Commerzbank pricing a new issue deal at the end of last week and HPS Investment Partners readying a debut European transaction.

    • 02 May 2017
  • FMSB firms up new issue rules

    The FICC Markets Standards Board (FMSB) published the final version of its guidelines on best efforts primary market syndications for fixed income in Europe on Tuesday, as it now looks to move on to tackling secondary market impacts of the new issue process.

    • 02 May 2017
  • CS to lead CleanFund's debut commercial PACE ABS

    Credit Suisse has been tapped to lead the first ever commercial Property Assessed Clean Energy (PACE) ABS transaction, a $40m-$75m offering from CleanFund Commercial Capital.

    • 01 May 2017