Securitization - Article Archive

  • Blackstone in line for Popular properties

    Banco Santander is in exclusive talks with US private equity firm Blackstone to sell a controlling stake in Banco Popular’s €40bn real estate and non-performing loan portfolio.

    • 31 Jul 2017
  • Office, hotel, bioresearch assets surface in CMBS pipeline

    Single borrower CMBS deals dominated the US CMBS market last week, with a Blackstone hotel portfolio priced slightly wide of guidance and a New York office building deal priced just inside initial levels.

    • 31 Jul 2017
  • Prosper increases risk appetite with latest ABS

    Online consumer lender Prosper priced its second multi-seller securitization from its PMIT shelf this week, which pools riskier loans compared to its previous transaction.

    • 31 Jul 2017
  • Moody's slaps most UK ABS collateral with negative outlook

    Moody's changed its outlook for collateral backing a range of UK ABS sectors to negative on Monday, citing weakening economic data and rising consumer debt as likely to impact securitization performance.

    • 31 Jul 2017
  • European ABS issuance jumps to €71.6bn in second quarter

    European securitization issuance in the second quarter topped €71bn, an increase of 91% from the first quarter according to the Association for Financial Markets in Europe (AFME).

    • 31 Jul 2017
  • THFC sells £186m tap of No 3 bond, its biggest yet

    The Housing Finance Corp, the conduit for UK housing association bond issuance, prevented there being a third day running without corporate bond issuance in Europe, by pricing a £186m tap of its THFC Funding No 3 bond on Friday.

    • 28 Jul 2017
  • EU plans ‘accelerated loan security’ to deal with NPL pile

    The European Commission is consulting until October on ways to deal with Europe’s non-performing loan problem, and has outlined plans for a new contractual instrument, called the ‘accelerated loan security’, to protect secured creditors from default — without enforcing security through the courts.

    • 28 Jul 2017
  • Updated: Nissan’s China JV returns to auto ABS

    Nissan’s Chinese joint venture has returned to investors with its latest auto ABS, offering a single tranche worth around Rmb2.52bn ($373.8m).

    • 28 Jul 2017
  • Floating rate floodgates open in CMBS

    A slew of commercial properties are being financed with floating rate CMBS debt in recent weeks, with banks eager to satisfy high levels of investor demand for floating rate bonds.

    • 27 Jul 2017
  • Neuberger Berman closes CLO risk retention fund

    CLO manager Neuberger Berman said on Thursday that it had closed its CLO risk retention vehicle with around $450m of committed capital to invest in risk retention financing.

    • 27 Jul 2017
  • Macro fundamentals fuel growth in aircraft ABS

    Global macroeconomic conditions, including a rise in aircraft portfolio sales, could boost growth for aircraft ABS, industry observers said this week.

    • 27 Jul 2017
  • Private equity backed Dutch lender to slash funding costs in new ABS

    Chenavari owned Qander Consumer Finance is close to pricing its second Dutch consumer loan deal, with the firm expected to lock in funding at less than half the cost of its last outing to the ABS market.

    • 27 Jul 2017
  • Better ratings lure issuers to whole biz ABS market

    Whole business ABS, which saw a crowded pipeline the first half of the year, is set to continue a strong run as franchises shift from corporate bonds to securitization for better ratings and a broader buyer base.

    • 26 Jul 2017
  • Multifamily lending to hit record volumes in 2017, says Freddie

    Government sponsored enterprise Freddie Mac said it expected multifamily loan originations to hit new highs in 2017, as CMBS market sources eye a bigger portion of the multifamily pie going to agency lenders instead of conduit deals.

    • 26 Jul 2017
  • BlackRock mortgage vehicle launches second RMBS deal

    A BlackRock UK mortgage securitization vehicle, London Wall Capital Investments, mandated leads for its second RMBS deal on Tuesday, as several asset managers shift away from traditional buy-side roles and into securitization-funded direct mortgage lending.

    • 26 Jul 2017
  • Senior bonds in focus for US new issue CLOs

    PGIM and Octagon were active in the US CLO market on Monday and Tuesday this week, as new CLO formation is said to be building momentum despite the difficulty of attracting equity investors given the squeeze on returns at the bottom of the structure.

    • 25 Jul 2017
  • Nelnet prices SLABS as FFELP spreads grind tighter

    Student loan servicer Nelnet priced a Federal Family Education Loan Program (FFELP) securitization to new tights on Tuesday, reflecting strong demand for the bonds despite headwinds in the sector.

    • 25 Jul 2017
  • Price talk floated for rare Dutch mixed MBS offering

    Joint lead bookrunners HSBC and ABN Amro released price guidance on Tuesday for a rare Dutch MBS offering backed by buy-to-let and owner occupied residential mortgages, as well as loans on mixed use commercial properties.

    • 25 Jul 2017
  • OCC 'support' for fintech is great, but now what?

    Acting Comptroller of the Currency Keith Noreika’s support of granting national bank charters to fintech companies is positive for the industry, but until the OCC actually provides clear and specific guidelines, the banking charter for fintech firms is a pipe dream.

    • 25 Jul 2017
  • CMBS mart eyes more engineered retention solutions

    The US CMBS market is exploring different ways of complying with risk retention beyond the structures used so far, with new methods of dealing with the rule being seen among non-banks and in the single borrower market.

    • 24 Jul 2017
  • CMBS loses ground to portfolio lenders as US CRE debt grows

    In a mid-year outlook of the global structured finance markets, analysts from S&P Global Ratings pointed out the rise of private portfolio lenders in commercial real estate, at the expense of a struggling CMBS market.

    • 24 Jul 2017
  • Trading spikes in non-agency RMBS as market digests trustee case

    Trading in non-agency US RMBS was busy last week, with sellers outweighing buyers as the market grapples with the fallout from trustee Wells Fargo’s decision to hold on to investor cash in a handful of crisis-era deals last month.

    • 24 Jul 2017
  • NYC readies tax lien ABS

    The City Of New York is marketing a rare $68m tax lien transaction, as part of its annual run to the securitization market.

    • 24 Jul 2017
  • DRB prices refi SLABS deal

    Darien Rowayton Bank (DRB) priced a new student loan refinancing offering, Laurel Road Prime Student Loan Trust 2017-B, on July 26.

    • 24 Jul 2017
  • Rare CMBS, credit card collateral surface in European ABS market

    Activity is dwindling in the European ABS market as the summer draws on, but investors still have opportunities to buy off the run deals with a rare Swiss franc denominated Austrian CMBS deal and a Spanish credit card deal being marketed this week.

    • 24 Jul 2017
  • Willis preps rare aircraft engine lease ABS

    Willis Lease Finance Corp. is returning to the ABS market with a transaction backed by aircraft engine operating leases, the first securitization from the company in five years.

    • 20 Jul 2017
  • Federal judge dismisses lawsuits against Renovate America

    A federal judge dismissed a trio of lawsuits this week accusing Property Assessed Clean Energy (PACE) lender Renovate America and its government bond-issuing partners of violating the Truth in Lending Act (TILA) and Home Ownership and Equity Protection Act (HOEPA).

    • 20 Jul 2017
  • US private label mortgage market stages comeback

    A decade after the shutdown of the US RMBS market, private label issuance is picking up steam again, with a growing number of both prime and non-prime lenders tapping hot capital markets for funding away from the government sponsored enterprises (GSEs).

    • 20 Jul 2017
  • BMO set to launch risk transfer securitization

    Bank of Montreal is set to launch a synthetic ABS deal this week, shifting the risk on a $1.5bn portfolio of US and Canadian large corporate loans, with several European banks also understood to be working on risk transfer deals over the summer.

    • 20 Jul 2017
  • Social housing Reit brings IPO despite worries on state support

    In the UK’s lively market for real estate investment trust (Reit) and other fund listings, yet another deal was launched on Thursday. Triple Point Social Housing Reit hopes to raise up to £200m, joining the niche of social housing Reits, which has been growing fast — even though experts are worried government budget cuts could hit the sector’s finances.

    • 20 Jul 2017
  • Think before EU speak

    “What were they thinking?” cried the European ABS market this week as the full impact of what originally seemed like an innocuous ban on an already illegal mortgage product became clear.

    • 20 Jul 2017
  • Late EU rule on MBS threatens NPL solution and legacy market

    European authorities' last minute change to regulatory proposals for European securitizations has the potential to cripple the supply of MBS backed by legacy mortgages by banning any European transaction that contains what regulators classify as self-certified loans. Sam Kerr reports.

    • 20 Jul 2017
  • Charter Court prices prime UK RMBS deal

    UK mortgage lender Charter Court Financial Services has priced its latest RMBS deal to strong investor demand and tight spreads.

    • 20 Jul 2017
  • National Collegiate legal fiasco spells trouble for ABS

    Beyond recent headlines around missing paperwork on $5bn worth of delinquent private student loans, ongoing legal tussles between several National Collegiate Student Loan Trust (NCSLT) transaction parties do not bode well for at least 15 outstanding ABS.

    • 19 Jul 2017
  • Bumper Blackstone hotel deal checks into CMBS market

    A $1.4bn single borrower CMBS deal hit the market on Wednesday, as the pipeline for single asset/single borrower deal bulges with floating rate borrowers keen to refinance deals ahead of further rate hikes.

    • 19 Jul 2017
  • Barclays makes PACE debut as ABS underwriter

    Barclays is hopping on the Property Assessed Clean Energy (PACE) bandwagon, acting as an underwriter for Renovate America’s latest residential PACE deal.

    • 19 Jul 2017
  • Private SME CLOs offered to European investors

    CLO market sources say direct lending to European SMEs is growing quickly, with some lenders now approaching investors to gauge their interest in investing in private SME CLOs.

    • 19 Jul 2017
  • Dutch consumer ABS marketing

    A Dutch consumer ABS deal is being marketed to investors this week, expanding the range of Dutch collateral on offer this year following the sale of several mortgage and auto deals.

    • 19 Jul 2017
  • ECB quantitative tightening ‘could be the spark’ for FIG spreads to widen

    Questions over what the US Treasury plans to do with its balance sheet and how the European Central Bank (ECB) will approach quantitative tightening are focusing opinion in the FIG market, according to one investor.

    • 19 Jul 2017
  • Legacy CMBS investors suffer heavy losses

    Pre-crisis CMBS loans were in the spotlight this week, after a raft of property liquidations in three deals wiped out $410m of bonds, while Fitch reported that delinquencies jumped in June by the highest amount for six years.

    • 18 Jul 2017
  • CPS gets strong pricing for subprime auto ABS

    Consumer Portfolio Services (CPS) achieved a new tight for the pricing of its third subprime auto ABS deal of the year, reflecting continued strong demand for the bonds despite headline risks in the sector.

    • 18 Jul 2017
  • ECB needs to signal end of ABSPP

    The ECB should take a bold step this week to signal the end of the ABSPP, something which many in the market would welcome.

    • 18 Jul 2017
  • Summer pipeline stays active for European CLOs

    The European CLO primary market is going strong as the market heads into late summer, with a slew of deals sold over the last week and buyers eyeing more to come.

    • 18 Jul 2017
  • RNHB markets mixed MBS transaction

    A Dutch buy-to-let RMBS offering from RNHB, which is expected to be priced next week, is piquing the interest of investors with commercial real estate exposure on top of the residential collateral pooled in the deal.

    • 18 Jul 2017
  • CMBS needs another reboot to stop risks piling up

    The US CMBS market is becoming more concentrated, with a smaller number of lenders structuring more deals exposed to the same properties. Lenders will have to make the CMBS experience a better one for borrowers if they want to pump life back into the market.

    • 17 Jul 2017
  • Navient prices fourth 2017 FFELP SLABS deal

    Navient is back in the student loan ABS market this week, pricing its fourth Federal Family Education Loan Program (FFELP) deal on Tuesday.

    • 17 Jul 2017
  • Trinity on track with first rail car ABS deal of 2017

    Trinity Industries is bringing a rare rail car lease offering from its TRIP shelf after a three year break from the ABS market.

    • 17 Jul 2017
  • Insurance companies swoop on junior CLO debt as fast money holds off

    Long term investors such as insurance companies and pension funds are buying more mezzanine and junior CLO debt as spreads compress. Meanwhile, asset managers and hedge funds appear to be taking more defensive positions in what they say has become a rich market.

    • 17 Jul 2017
  • UniCredit’s sub debt bounces after NPL sale agreement

    UniCredit said on Monday that it had signed transfer agreements for the sale of its flagship non-performing loan (NPL) securitisation, supporting valuations on its subordinated debt instruments.

    • 17 Jul 2017
  • EIB sets up green bond 'Rosetta Stone'

    The European Investment Bank (EIB) and other market actors are working on a system to match investors’ views on what is a ‘green’ bond with suitable deals in the market.

    • 14 Jul 2017
  • EU panel calls for European green bond standard, duty of sustainability

    A European green bond standard and a classification system for sustainable assets were two of the suggestions issued on Thursday by a group of experts advising the European Union on how to make the financial system sustainable — one of the commitments in the Paris Agreement, writes Jon Hay.

    • 13 Jul 2017
  • Valeant sheds $500m of debt to clear path through 2019

    Valeant Pharmaceuticals, the largest single company exposure in the US CLO market, announced a $500m debt redemption on Thursday with one investor saying debt holders would struggle to find similar returns in the current loan market.

    • 13 Jul 2017
  • Low yields spark esoteric ABS buying frenzy

    Prolonged low interest rates and more mature whole business and container industries have drawn investors to play in the growing world of ‘non-traditional’ ABS, with demand for esoteric asset classes expected to stay strong in the second half of the year.

    • 13 Jul 2017
  • Lawsuit threat looms for US ABS

    The Consumer Financial Protection Bureau (CFPB) has passed a rule on Monday to eliminate arbitration clauses, which stop consumers bringing class action lawsuits, in a move which could hurt the US securitization market and cause more legal trouble for the big banks. But Republicans have dug in and vowed to fight the rule.

    • 13 Jul 2017
  • Single asset CMBS picks up with retail properties in focus

    More commercial real estate properties are flowing into the single asset, single borrower CMBS market as large loans come up for refinancing, with four deals out in the market this week in addition to a new conduit deal.

    • 13 Jul 2017
  • Market sees no easy NPL fix despite Commission's plan

    The European Commission laid out a plan this week to shrink Europe’s mountain of toxic debt, but sources with an eye on the non-performing loans market say that a solution will be harder to come by than the Commission’s proposal suggests.

    • 13 Jul 2017
  • Barclays adds two in European ABS trading push

    Barclays has hired two vice presidents in London as part of an effort to refresh its European ABS sales and trading group.

    • 13 Jul 2017
  • BMW Swiss auto ABS features rare currency swap

    BMW’s latest auto lease deal featured a unique currency swap mechanism to allow the issuer to issue a euro denominated ABS deal backed by leases in Swiss francs.

    • 13 Jul 2017
  • RBS settles RMBS claim for $5.5bn

    RBS has settled with the Federal Housing Finance Agency over its underwriting of US RMBS, paying $5.5bn for the agency to withdraw its litigation, though it will receive $754m back under an indemnity. Much of the charge was already provisioned, meaning the bank will record an extra charge of only $196m in its second-quarter numbers.

    • 13 Jul 2017
  • SoFi preps new deal, aims for 12 in 2017

    Online lender SoFi is on track to sell its eighth ABS of the year this month.

    • 12 Jul 2017
  • Wells under fire over legacy RMBS trust issues

    Legal wrangling over crisis-era US RMBS took another turn this week, following trustee Wells Fargo’s decision to hold on to $94m of investor proceeds from $540m of called bonds to fund legal costs relating to RMBS lawsuits. The move has shocked the market and prompted Fitch Ratings to put $2.2bn of similar bonds on rating watch negative, writes David Bell.

    • 12 Jul 2017
  • Swiss auto deal prices tight

    BMW sold the latest European auto ABS transaction on Wednesday, with demand driving pricing tighter than initial talk.

    • 12 Jul 2017
  • HSBC, ABN Amro win Dutch RMBS mandate

    RNHB Hypotheekbank has mandated HSBC and ABN Amro to arrange its first RMBS offering of the year.

    • 12 Jul 2017
  • Central bank concerns send corp bond investors on yield hunt

    The direction of central bank policy is increasingly coming to govern Investment grade and high yield bond investors' hunt for yield, with many of the latter now looking to triple-C rated paper to better hedge against the risk of rate hikes.

    • 12 Jul 2017
  • US CLO curve flattens as investors creep down capital stack

    The US new issue CLO market sparked back into life this week, with four new deals sold in addition to refinancing and reset activity. Investors have shifted down the capital structure and driven the US CLO credit curve to its flattest level in three years.

    • 11 Jul 2017
  • Prosper gearing up for second ABS of 2017

    Online consumer lender Prosper is preparing to issue its second multi-seller securitization from its PMIT shelf this summer, following its return to the ABS market earlier this year.

    • 11 Jul 2017
  • Loss of London will make Europe less attractive

    The loss of London as a cohesive financial centre would probably lead to a splintered European financial market, which would be a blow to the continent’s attractiveness for global financial firms.

    • 11 Jul 2017
  • Northview markets new RMBS shortly after RMS 30 pricing

    Northview Group is looking to sell its second RMBS deal of the month, coming to market soon after its non-conforming RMS 30 offering was sold last week.

    • 11 Jul 2017
  • Acquisition finance firm turns to securitization in rare deal

    A rare acquisition finance securitization was marketed to select European investors this month, a departure for a type of transaction usually financed by banks or dedicated funds.

    • 11 Jul 2017
  • CFPB blocks arbitration clauses for consumer finance products

    The Consumer Financial Protection Bureau (CFPB) handed down a rule on Monday eliminating arbitration clauses that bar consumers from bringing class action lawsuits, a move that could spell trouble for some ABS asset classes.

    • 10 Jul 2017
  • US CMBS volumes surge as lenders up their game

    US CMBS volumes have raced past last year’s figures, with CMBS lenders competing harder on pricing with other forms of commercial real estate financing, despite lingering concerns over the retail sector and credit fundamentals.

    • 10 Jul 2017
  • Castlelake bond buyers shrug off Qatar crisis headwinds

    The trade and transport volatility caused by the diplomatic crisis in Qatar did not stop investors from purchasing Castlelake LP’s latest aircraft securitization, which analysts say could be impacted by the situation.

    • 10 Jul 2017
  • European Commission seeks NPL fix

    The European Commission on Monday announced that will consult with industry participants for a solution to the eurozone's non-performing loan issue, with an eye to developing a more efficient secondary market to move the paper off bank balance sheets.

    • 10 Jul 2017
  • NewStar Financial snaps up Fifth Street CLO biz

    NewStar Financial has added around $726m of assets under management after buying Fifth Street Asset Management’s middle market CLO business, which had two outstanding deals.

    • 07 Jul 2017
  • Issuers price UK, Dutch securitizations

    A UK auto ABS transaction and a Dutch prime RMBS deal were both priced this week as the European ABS market gets rolling in the second half.

    • 07 Jul 2017
  • Falcon closes debut US trade finance securitization

    Boutique trade finance firm Falcon Group closed a debut dollar-denominated trade finance securitization on July 5, as part of the company’s funding diversification strategy.

    • 06 Jul 2017
  • CAN Capital resumes lending after six month pause

    Online small business lender CAN Capital, is resuming its loan origination program following a recapitalization by asset manager Varadero Capital.

    • 06 Jul 2017
  • Natixis, Ivanhoe bring debut US green CMBS deal

    Natixis and Ivanhoé Cambridge have teamed up to sell the first green CMBS deal in the US, backed by an energy efficient Manhattan office building, in a move that could encourage other real estate lenders to follow as interest builds in using securitization as a tool for green financing.

    • 06 Jul 2017
  • Italy: a long road to the inevitable

    The process to save the world's oldest bank, Monte dei Paschi di Siena, has dragged on long enough to feel like it may have been, appropriately perhaps, the world's longest winded bank rescue. For such an investment of time and manpower, the fact that the final resolution is a large bill for the Italian taxpayer is disappointing.

    • 06 Jul 2017
  • European ABS pricing divorces from grim macro reality

    The ABS market in Europe is booming, with deals across asset classes pricing at the tightest levels since the crisis. Rampant demand and record tight spreads, however, do not reflect the wider macroeconomic picture in Europe, and investors and issuers say they are growing concerned that ABS pricing has become detached from reality, writes Sam Kerr.

    • 06 Jul 2017
  • Cadwalader boosts US ABS practice with new hire

    Cadwalader Wickersham & Taft has hired a former associate general counsel at Goldman Sachs for its securitization practice in Washington, DC.

    • 06 Jul 2017
  • Banca Carige issues NPL deal

    Italy’s Banca Carige has hit the market with a non-performing loan securitization utilising the Italian government's GACS guarantee scheme, and will place the mezzanine and junior notes with investors.

    • 06 Jul 2017
  • GoldenTree, GTIS partner up on new real estate debt fund

    GoldenTree Asset Management and real estate investment firm GTIS Partners have teamed up on a joint venture focusing on financing real estate debt across a host of property types.

    • 05 Jul 2017
  • US CLO watchers eye downside with spreads at record tights

    Some market observers are growing wary of downside risk in the US CLO market, with a raft of deals being priced at levels at or close to post-crisis tights.

    • 05 Jul 2017
  • Senator floats bill to cap federal student loan rates

    Senator Bill Nelson (D-Florida) has proposed legislation to cap undergraduate federal student loan interest rates at 4%, following a slew of federal student loan rate hikes that kicked in last week.

    • 05 Jul 2017
  • Non-ECB eligible deals test market as central bank considers ABS review

    ABS deals not eligible for purchase by the European Central Bank will test the ability of the market to function without central bank participation, a potentially significant development given recent comments from ECB officials.

    • 05 Jul 2017
  • Atlante buys MPS NPLs at fraction of book value

    The Italian Atlante fund has released the details of its investment in a book of non-performing loans (NPLs) from Banca Monte dei Paschi di Siena (MPS), revealing that the struggling bank sold the notes at a fraction of face value.

    • 05 Jul 2017
  • Italy back in focus after MPS recap

    The European Commission approved Banca Monte dei Paschi di Siena’s (MPS) request for a ‘precautionary recapitalisation’ this week, throwing the Italian banking sector back into the limelight in an otherwise quiet week for the financial institutions bond market.

    • 05 Jul 2017
  • Senior Morgan Stanley banker defects to Barclays

    Barclays has poached a senior fixed income capital markets banker from Morgan Stanley as it reinvests funds into its corporate and investment bank.

    • 05 Jul 2017
  • Bye-bye Basel

    The Basel Committee was a wonderful idea when was first convened. But with bank liquidity measures becoming more difficult to codify and different jurisdictions going their own way on a number of issues, the idea behind a united global banking standard might soon become irrelevant.

    • 04 Jul 2017
  • G20 leaders’ historic chance to advance climate risk management

    What will happen to share prices and bond returns if the climate warms by 1.5°C, 2°C, 3°C? You don’t know, and neither does anyone else. But these scenarios are probable. It’s time we worked it out — and a decision before the G20 next weekend could make a huge difference.

    • 04 Jul 2017
  • EU commission approves MPS plan

    The European Commission has approved the precautionary recapitalisation of Banca Monte dei Paschi di Siena (MPS), and the disposal of its non-performing loans.

    • 04 Jul 2017
  • Stakeholders join forces to promote green finance

    A wide range of institutions have joined forces under the auspices of the European Green Securities Steering Committee (EGSSC) to promote green financing in Europe.

    • 04 Jul 2017
  • Securitization to follow next UKAR asset sale

    UK RMBS market participants expect a securitization will follow the next loan sale from UK Asset Resolution (UKAR), continuing a string of transactions from the government-owned asset manager.

    • 04 Jul 2017
  • US securitization volume ends first half up 40%

    Issuers churned out $243bn of primary market ABS in the first half of 2017, up 40% year over year, as demand swells across securitized asset classes.

    • 03 Jul 2017
  • Euro ABS tightens further as summer demand swells

    European ABS spreads are grinding ever tighter across asset classes as issuers ride a wave of demand into the summer.

    • 03 Jul 2017
  • Basel Committee hits EU on HQLA deviation

    The Basel Committee on Banking Supervision has criticised the European Union’s recognition of non-RMBS securitizations as being eligible for treatment as high quality liquid assets (HQLA), as a deviation from the Basel framework.

    • 03 Jul 2017