Securitization - Article Archive

  • Interest only loans the ‘last weapon’ for CMBS as regional banks muscle in

    CMBS lenders are resorting to offering more interest only loans to win business as ‘desperate’ local and regional banks step up commercial real estate lending activities, prompting investor concerns about the direction of underwriting standards in the market.

    • 29 Jun 2017
  • Do as I say, not as I do, says Old Lady

    Surely peak chastisement of the financial services industry was reached this week when the Bank of England berated UK lenders for using what by any standard must seem prudent risk modelling.

    • 29 Jun 2017
  • Changing business could drive Premier League to capital markets

    The business model of Premier League football is rapidly changing, from a ticket receipt revenue driven business to one driven by sponsorship and TV rights, and by using the capital markets, football clubs can finance their operations in more sophisticated ways.

    • 29 Jun 2017
  • Funding Circle hires ABS pro, compliance chief in diversification push

    Online small business lender Funding Circle announced the hires of Joanna Karger and Richard Stevenson as the US head of capital markets and chief compliance officer respectively, as the platform looks to broaden its investor base.

    • 29 Jun 2017
  • World Bank brings pandemic deal to market to fight outbreaks

    The World Bank has issued an insurance linked securities (ILS) and derivatives offering to aid in the containment of worldwide pandemics, funding the organisation and enabling it to react quickly in the early stages of a major outbreak.

    • 29 Jun 2017
  • 100 CEOs promise real climate risk disclosure

    The drive to get companies to face up to the risk of climate change is gathering momentum. Firms with a combined market capitalisation of about $3.5tr have committed to support the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), which published its final report on Thursday.

    • 29 Jun 2017
  • Credit card ABS could be the next victim in US retail shakeout

    Private label and co-branded credit card ABS could see a spike in charge-off rates amid store closures and mounting problems in the US retail industry.

    • 28 Jun 2017
  • US private label mortgage market gains steam

    AIG priced a debut RMBS deal on Monday, while three transactions backed by seasoned performing, re-performing and non-performing loans hit the primary market this week with investor demand for non-agency RMBS paper on the rise.

    • 28 Jun 2017
  • Private equity funds get securitization treatment

    Banks have approached rating agencies with an eye on possibly securitizing portfolios of private equity fund investments, like the collateralized fund obligation that was priced last week, as credit investors search more widely and deeply for assets with yield.

    • 28 Jun 2017
  • Investors pour in to UK credit card deal

    A credit card deal from NewDay cards was priced on Wednesday to heavy demand, despite growing concern around rising levels of consumer debt in the UK.

    • 28 Jun 2017
  • Veneto and Vicenza securitizations in limbo after Intesa purchase

    Securitizations issued by the two Italian banks in liquidation, Veneto Banca and Banca Popolare di Vicenza, are in limbo, with no word from the banks themselves or Intesa Sanpaolo, which is acquiring most of their good assets, about the fates of the deals. The most recent issues from the two banks were kept for use as repo collateral with JP Morgan but both banks have plenty of outstanding placed bonds, too.

    • 28 Jun 2017
  • FIG rides high after controversial Italian bank rescues

    European financial institutions opened books on new deeply subordinated bond deals this week, just days after two regional Italian lenders were liquidated by national authorities.

    • 28 Jun 2017
  • US lev loan volume hits all-time record in first half

    Issuance of leveraged loans hit $548bn in the first half of this year, setting a record for any first or second half, according to S&P Global Ratings.

    • 27 Jun 2017
  • CAI adds to bustling container ABS market

    CAI International this week became the latest issuer to revive activity in container lease securitization as the asset class outpaces aircraft as the most active corner of transport ABS in 2017.

    • 27 Jun 2017
  • Demand drives increase for Discover card deal

    Prime credit card ABS is drawing a crowd this week, with joint leads pumping up the size of a deal from Discover Bank before pricing.

    • 27 Jun 2017
  • Italian bank resolution part of Atlante MPS plan

    The Bank of Italy has indicated that the state funded liquidation of Veneto Banca and Banca Popolare di Vicenza will free up capital from the state backed Atlante fund to finance its investment in Monte Patschi dei Siena (MPS).

    • 27 Jun 2017
  • Bank of England sounds the alarm on consumer debt

    The Bank of England has expressed concern over the rising levels of consumer debt in the UK, which increased by 10.3% in the 12 months through April 2017.

    • 27 Jun 2017
  • Ladder conduit marks CMBS split

    Non-bank commercial mortgage lender Ladder Capital priced its first commercial mortgage-backed securities (CMBS) transaction last Friday, with investors demanding more spread to compensate for lower credit quality and liquidity compared to bank offerings.

    • 26 Jun 2017
  • SoFi, College Ave add offerings to crowded ABS market

    Online lender SoFi and first time student loan ABS issuer College Avenue are bringing deals to a busy pipeline, as investor demand for new securitizations carries into the summer.

    • 26 Jun 2017
  • Euro CLO primary market in full swing

    A slew of European CLOs were priced last week, giving investors the opportunity to get their hands on new issue, refinancing and reset paper as the market heads into summer.

    • 26 Jun 2017
  • Storm and Lanark grind tight on solid investor demand

    A pair of prime RMBS transactions were priced at the end of last week to heavy demand, with over subscription and tight spreads on both offerings.

    • 26 Jun 2017
  • CS asset finance boss joins M&G loan fund

    Vaibhav Piplapure, the head of EMEA asset finance at Credit Suisse, is following former CS solutions head Jerome Henrion to run M&G’s new consumer assets fund.

    • 23 Jun 2017
  • Lehman ABS alumnus lands at PACE shop

    Sei-Hyong Park, who formerly worked in Lehman Brothers' securitization division, is now at Property Assessed Clean Energy (PACE) platform Renew Financial.

    • 22 Jun 2017
  • Spruce closes energy efficiency and solar loan portfolio sale

    Spruce Finance, which finances residential energy efficiency projects and solar installations in the US, sold a $250m loan portfolio to an undisclosed North American bank on June 21.

    • 22 Jun 2017
  • FCA Bank prices Italian auto deal with negative yield

    FCA Bank has continued the trend of issuing auto ABS notes with an effective negative yield after pricing a deal backed by Italian auto loans.

    • 22 Jun 2017
  • Spread compression sparks single asset CMBS issuance

    Single asset single borrower CMBS issuance has picked as spread tightening increases the attractiveness of CMBS financing compared to balance sheet loans.

    • 22 Jun 2017
  • Dutch and UK RMBS deals hit market

    European mortgage investors saw more issuance activity this week, driven by a variety of deals from the Netherlands and the UK.

    • 22 Jun 2017
  • Nationwide reels in spread and investors for 15 year covered

    Nationwide Building Society issued a larger than expected €1bn 15 year covered bond at an optically cheap spread this week, through close to one interpretation of fair value. The huge book supported a 10bp tightening through the process, even though some investors withdrew their orders.

    • 22 Jun 2017
  • Strong bid for Santander auto ABS

    Santander Consumer USA priced its latest Drive subprime auto ABS offering at tight spreads on Wednesday, brushing aside some of the negative headlines around its lending practices and the declining performance of subprime car loans.

    • 21 Jun 2017
  • GM Building single asset CMBS launched

    A $1.35bn single asset CMBS transaction backed by the iconic GM Building in Manhattan came to market on Wednesday.

    • 21 Jun 2017
  • Standards slipping in US non-prime mortgage lending, says Moody’s

    Representations and warranties and enforcement frameworks have been weak in non-prime US residential mortgage-backed securities, said Moody’s this week, in contrast to recent prime jumbo transactions.

    • 21 Jun 2017
  • Demand drives Mercedes deal to new post-crisis tight

    Mercedes-Benz Bank priced its latest auto ABS offering this week, Silver Arrow 8, with the deal notching yet another record for post-crisis spreads.

    • 21 Jun 2017
  • UK RMBS buyers hungry for Optimum second lien offering

    UK RMBS investors are eagerly eyeing a debut securitization from Optimum Credit, Castell 2017-1 PLC, which is backed wholly by second lien mortgages.

    • 21 Jun 2017
  • STS postponed as ABS pipeline fills to brim

    The implementation date for the European Union’s simple transparent and standardized (STS) securitization framework has been moved back to January 2019, after concerns were made by the Maltese presidency over the timeline between finalisation of the rule and its implementation.

    • 21 Jun 2017
  • Textainer prices new deal amid container ABS revival

    The container lease ABS market continued to pump out new supply this week, with Textainer Marine Containers hitting the market for the second time this year and market players forecasting strong container trade growth over the next two years.

    • 20 Jun 2017
  • Insurer AIG steps into US mortgage bond market

    American International Group (AIG) has launched a debut prime jumbo RMBS deal backed by collateral described by Fitch Ratings as among the strongest seen since the financial crisis.

    • 20 Jun 2017
  • Gloomy Carney address could portend TFS extension

    Bank of England governor Mark Carney’s caution on the UK economy in his Mansion House speech on Tuesday could be an early warning for the UK RMBS market that the Term Funding Scheme (TFS) won't end soon, an unwelcome development for supply starved investors.

    • 20 Jun 2017
  • STS implementation to be deferred to 2019

    The application date for the ‘simple, transparent and standardised’ (STS) framework for European securitization and amendments to the capital requirements ratio (CRR) rules will be deferred until January 2019, according to sources close to the final trialogue discussions, which concluded earlier this month.

    • 20 Jun 2017
  • Marlette latest to price in wave of MPL ABS

    Marketplace loan originator Marlette Funding this week priced its latest securitization on the heels of last week's breakout deals from Lending Club and Upstart.

    • 19 Jun 2017
  • Shopping mall CMBS set for strong reception despite retail sector woes

    CMBS issuers are set to flood the primary pipeline with new offerings, including single asset deals backed by retail properties, in a sign that investors have yet to cool to the sector despite a stream of negative headlines around bricks and mortar retail.

    • 19 Jun 2017
  • EU summer ABS pipeline fills up

    The European ABS pipeline is full to bursting as summer gets underway, with a range of issuers looking to take advantage of tightening spreads and rampant investor demand.

    • 19 Jun 2017
  • UK credit card deal hits ABS primary

    A UK ABS transaction backed by non-prime credit card receivables is being pitched to investors this week, as buyers closely eye tightening spreads across ABS assets and an uncertain near term economic outlook.

    • 19 Jun 2017
  • Mosaic Lines Up Second Securitization

    Solar lending platform Mosaic is preparing to launch its second asset-backed securitization just four months after sealing its inaugural ABS offering writes Fotios Tsarouhis.

    • 16 Jun 2017
  • GBP set new Social Bond Principles, guide brown issuers

    Enthusiasm for green and social bonds is mounting, and revisions to the Green Bond Principles (GBP) announced this week may give the market a further lift. Many of the same debates still exercise market participants as in the past, but they appear less daunted by these conundrums.

    • 15 Jun 2017
  • Market dials in for cellphone bonds

    Verizon Communications priced its second ABS deal of the year this week, attracting strong investor demand.

    • 15 Jun 2017
  • Landmark deals, SoFi bank charter generate buzz in MPL

    News of securitizations from Lending Club and Upstart, in addition to SoFi’s application for a bank charter, were the talk of the week, with market players pointing to these events as milestones for the marketplace lending industry.

    • 15 Jun 2017
  • If it ain't prime, it's subprime

    A trend in the US over the past couple of years has involved securitization issuers doing everything possible to avoid using the term subprime. Such verbal chicanery does their market no favours.

    • 15 Jun 2017
  • EU green finance group considering reg cap cuts

    Cutting regulatory capital charges for green loans is one idea being considered by the EU’s High Level Expert Group on Sustainable Finance, which is due to make its first report on July 18.

    • 15 Jun 2017
  • ABS begs for ECB to exit

    The structured product market is booming, with rampant investor demand leading to record-breaking tights in asset classes such as auto ABS. This has sparked fresh calls for the European Central Bank (ECB) to stop buying up paper in the market, writes Sam Kerr.

    • 15 Jun 2017
  • Welk returns to timeshare ABS market

    Welk Resort Group is marketing a small timeshare offering after a two year absence, adding to the wave of esoteric issuance that has washed over the ABS market.

    • 14 Jun 2017
  • New Lending Club ABS deal structure a draw for investors

    Lending Club’s debut self-sponsored club deal offering, which was priced on Wednesday, drew praise from investors, who hailed the new deal structure.

    • 14 Jun 2017
  • Investors race to get in on latest auto ABS

    Santander Consumer Bank has taken pole position with its latest auto ABS offering by printing at the tightest spreads the securitization market has seen since the crisis.

    • 14 Jun 2017
  • Enter Stage Entertainment for €355 div recap

    Dutch musical theatre group Stage Entertainment, producer of shows including The Lion King and Mamma Mia!, debuted in the leveraged finance market this week for a €355m term loan to pay a dividend recapitalisation to sponsor CVC, after the latter’s majority investment in the firm in 2015 was unusually an all equity deal.

    • 14 Jun 2017
  • Euro CLO market builds momentum

    A number of new European CLOs are in the works, with European issuers taking advantage of positive momentum following the Global ABS conference in Barcelona last week to print new deals.

    • 14 Jun 2017
  • UK banks hit holdco despite political uncertainty

    Investors may require a higher premium of UK banks as they return to the capital markets following last week’s general election, which has made the future of the nation’s politics very uncertain.

    • 14 Jun 2017
  • Domino’s Pizza adds dough to ABS delivery

    The bookrunners of a refinancing transaction for Domino’s Pizza increased the size of the deal before pricing on Monday, amid a spike in deal activity for whole business ABS.

    • 13 Jun 2017
  • Renovate America promotes Moore to chief lending officer

    Property Assessed Clean Energy (PACE) provider Renovate America has promoted Patrick Moore, the president of its licensed lending subsidiary, to the newly created position of chief lending officer.

    • 13 Jun 2017
  • UK doesn’t have a clue on Brexit

    Financial analysts and investors trying to make sense of what the UK general election result means for the upcoming Brexit negotiations should take a step back and ignore what they read for some time. The British government is clueless on its approach to Europe.

    • 13 Jun 2017
  • Natixis hires new global structured credit head

    Natixis has appointed Emmanuel Issanchou as global head of structured credit and solutions, based in London.

    • 13 Jun 2017
  • Mercedes markets over €1bn of Silver Arrows

    Mercedes-Benz Bank (MB Bank) is looking to sell $1.1bn of senior auto ABS notes, backed by a portfolio of German retail auto loan receivables.

    • 13 Jun 2017
  • Lending Club markets first sponsored deal

    San Francisco-based online platform Lending Club is sponsoring its first multi-seller securitization, which is backed by a portfolio of near-prime consumer loans.

    • 12 Jun 2017
  • Diplomatic crisis with Qatar may hurt aircraft ABS – S&P

    The severance of trade and transport ties between Qatar and several Gulf states on June 5 could negatively impact aircraft ABS transactions with exposures to Qatar Airways, according to a recent research note by S&P Global.

    • 12 Jun 2017
  • Three auto deals hit market following Global ABS

    Investors are looking at three auto ABS offerings, from Santander Consumer Bank, Mercedes-Benz Bank and FCA Bank, following the Global ABS conference.

    • 12 Jun 2017
  • Twin Bridges BTL RMBS marketing as TFS continues to hurt supply

    Twin Bridges 2017-1, a UK buy-to-let RMBS deal issued by Fortress subsidiary Paratus AMC, is being marketed to RMBS investors eager for exposure to UK mortgages.

    • 12 Jun 2017
  • Banks set to finance own NPL exits through guarantees

    Italian banks are the most likely financiers of their own non-performing loan (NPL portfolio sales, thanks to the structure of the government guarantee scheme, and the difficulty of executing large NPL trades with external finance. Portugal, too, looks set to go down the same road.

    • 08 Jun 2017
  • Triton latest to price in wave of container lease ABS

    Triton Container Finance is the fifth container lease ABS to price this year, making it the busiest period for esoteric asset class since 2014.

    • 08 Jun 2017
  • French regulator calls for single European authority

    A senior French regulator floated the idea of having a single European financial supervisor this Wednesday, which he said would help ease concerns over “regulatory arbitrage”.

    • 08 Jun 2017
  • European ABS buyers seek toehold in US mortgage credit

    US mortgage credit risk transfer and single family rental bond sellers hopped across the pond this week to tap up new European investors for their credit products, with Freddie Mac and Colony American Finance speaking on a panel at Global ABS in Barcelona on Thursday.

    • 08 Jun 2017
  • ABS market pins hopes on Tory victory

    ABS market professionals are hoping for a Conservative victory in Thursday's UK general election, with many saying they are dreading the uncertainty if the vote results in a hung parliament.

    • 08 Jun 2017
  • New Verizon ABS deal hits primary

    Verizon Communications is marketing its second securitization of the year, backed by contract payments on mobile phones.

    • 07 Jun 2017
  • IFRS 9 could boost risk transfer market

    New IFRS 9 accounting rules could give issuers another reason to enter the risk transfer market, according to panellists at the balance sheet synthetics session at the Global ABS conference on Wednesday.

    • 07 Jun 2017
  • PE firms prepare to take on Greek NPL challenge

    Private equity firms are stepping up their interest in Greece, with a number of institutions understood to be setting up Greek servicers, a first step towards bidding for NPLs in the country.

    • 07 Jun 2017
  • Change from the ground up to promote gender balance

    The Women in ABS panel at Global ABS in Barcelona on Wednesday told attendees in the audience that, on balance, gender diversity is still lacking in financial services, and to increase the numbers of female senior management the industry must do more to empower women from the start of their careers.

    • 07 Jun 2017
  • Brigade lines up for euro CLO debut as market tightens

    Brigade Capital is lining up for its debut European CLO, as GSO Capital printed a deal at a post-crisis record tight of 83bp over Euribor. But the sector could go tighter still, according to panellists and audience members at the CLO managers’ roundtable at the Global ABS conference in Barcelona on Wednesday. That’s important though, with underlying assets looking more expensive than ever.

    • 07 Jun 2017
  • RMBS issuers waiting for liquidity flood to ease

    Despite quantitative easing measures contributing to persistent shrinking in the size of the European RMBS market, panellists at Global ABS on Wednesday were optimistic that the tapering of central bank funding schemes would see a resurgence of supply, as new non-bank lenders grow market share and banks look to refinance retained deals.

    • 07 Jun 2017
  • Risk retention bid heats up as buyer base expands

    Investor demand for risk retention notes is heating up, with new buyers being drawn into the expanding market as private equity firms look to shift the bulk of risk retention requirements to third parties.

    • 07 Jun 2017
  • Risk retention review should be formality

    Sources close to the Maltese presidency of the European Council have downplayed the importance of the regular reviews of risk retention rules, agreed under the new rules for 'simple, transparent and standardised' securitizations last week.

    • 07 Jun 2017
  • STS technical standards could take up to 12 months

    Regulatory technical standards (RTS) related to the simple, transparent, standardised (STS) European securitization framework could take as long as 12 months to finalise, which would leave almost no time between RTS finalisation and STS implementation.

    • 07 Jun 2017
  • Popular sale gives investors first sight of BRRD in practice

    European regulators applied the bank resolution and recovery directive (BRRD) for the first time this week, giving investors plenty of food for thought in an otherwise quiet period for the FIG market.

    • 07 Jun 2017
  • Barclays ABS strategist returns to Kroll

    Barclays US structured credit strategist Brian Ford has returned to Kroll Bond Ratings in New York after a two year stint at the investment bank.

    • 07 Jun 2017
  • Upstart shops debut ABS offering

    Online personal loan platform Upstart is the newest entrant to the marketplace loan ABS pipeline.

    • 06 Jun 2017
  • EU risk retention to be up for review every three years

    Risk retention levels in European securitization are to be reviewed at least every three years by the European Systemic Risk Board (ESRB), according to a paper released by the government of Malta on Monday.

    • 06 Jun 2017
  • As STS fog clears, Global ABS to focus on new themes

    The 21st annual Global ABS event kicked off on Tuesday in Barcelona, with attendees and the event organizer saying that the 2017 event will shift focus from previous years, with more focus on new and emerging themes which have characterized European securitization over the past year.

    • 06 Jun 2017
  • Brace yourself for DeVos and her game of loans

    Education Secretary Betsy DeVos has clearly demonstrated that she’s not working in the interests of American students, and Senator Elizabeth Warren’s call for a watchdog to hold her accountable is sorely needed.

    • 06 Jun 2017
  • Firm eyes €5bn market for euro PACE bonds

    Global New Energy Finance laid out ambitious plans to bring the property assessed clean energy (PACE) loan market to Europe on Tuesday, with managing director Davide Cannarozzi telling Global ABS delegates in Barcelona that the firm was aiming to launch PACE programmes in four European cities in 2020.

    • 06 Jun 2017
  • Panel fears Solvency II reforms could come too late

    Changes to Solvency II meant to encourage insurers to invest in ABS may come be too late given the dramatic drop in market participation in the past few years, speakers said on a panel on day one of Global ABS.

    • 06 Jun 2017
  • AGs urge DeVos to speed up student loan forgiveness

    Attorneys general from 18 states called upon US Department of Education secretary Betsy DeVos on Monday in a letter to stop delaying student loan forgiveness for borrowers victimised by fraudulent for-profit colleges.

    • 05 Jun 2017
  • Subprime headlines pose problems for issuance

    Investors are beginning to show hesitance around subprime auto ABS as cracks begin to show in the sector.

    • 05 Jun 2017
  • UK BTL deal, Euro CLO pair price in Barca run up

    UK buy-to-let deal Oat Hill No.1 and a pair of European CLOs were priced on Friday, as market participants prepared to descend on Barcelona for Global ABS, which kicks off Tuesday.

    • 05 Jun 2017
  • US CLO managers push on despite tricky loan backdrop

    A strong run in the US CLO new issue market has seen $10bn of paper priced in each of the last two months, despite new issuance of leveraged loans.

    • 05 Jun 2017
  • Confidence, conviction, and NPL sales

    Banking is the business of confidence and trust. While the real work of cleaning up balance sheets is important, being seen to act swiftly, decisively and comprehensively is just as important. Impressions matter — whatever the underlying reality.

    • 05 Jun 2017
  • Intertrust appoints global head of capital markets from BAML

    Corporate and private equity services provider Intertrust has appointed a new global head of capital markets from Bank of America Merrill Lynch.

    • 02 Jun 2017
  • Domino’s on the way to market with $2bn ABS delivery

    Domino’s Pizza is preparing to serve up a $2bn whole business ABS transaction, the largest such deal to enter the increasingly crowded esoteric securitization market in 2017.

    • 01 Jun 2017
  • Securitization industry success: a win for the little guy?

    The European securitization industry’s “simple, transparent and standardised” regulatory framework has finally been pushed through, with industry practitioners as well as supportive bureaucrats in Brussels saying it will help boost the flow of lending to Europe’s small and medium enterprises (SMEs). Time will tell if those businesses actually feel the benefit.

    • 01 Jun 2017
  • Eurozone DMOs blast sovereign securitizations, but investors positive

    Sovereign debt management offices (DMOs) have lambasted proposals for creating common eurozone ‘safe assets’ in the form of sovereign bond-backed securities (SBBS). The European Commission said this week it planned to review the idea — and is likely to find a more optimistic tone from investors.

    • 01 Jun 2017
  • ING head of securitization leaves

    Martin Nijboer, the head of global capital markets and securitizations at ING, has left the company GlobalCapital understands.

    • 01 Jun 2017
  • UniCredit finds way to fund NPL sale fast

    UniCredit’s flagship non-perfoming loan (NPL) sale, Project Fino — which stands for “failure is not an option” — will only raise 40% of its cash up front, with UniCredit granting Pimco and Fortress, the buyers of the €17.7bn portfolio, more than three years to pay the rest.

    • 01 Jun 2017
  • ABS issuers rev engines ahead of Barcelona bash

    A flurry of issuers is hitting the European primary ABS market in the run up to the Global ABS conference next week in Barcelona.

    • 01 Jun 2017
  • War to restore European securitization moves on after STS victory

    The next steps in the war to restore European securitization will be risk weights, Solvency II, and the end of excess central bank liquidity, according to market participants who cheered last Tuesday’s agreement on the structure of a ‘simple, transparent and standardised’ (STS) label for European securitizations.

    • 01 Jun 2017
  • US CLO refi steam runs out as equity buyers eye resets

    US CLO equity holders are shifting their focus away from the low hanging fruit of refinancing transactions towards CLO resets, which give equity investors the benefit of longer reinvestment periods as well as cheaper liability costs.

    • 01 Jun 2017