Securitization - Article Archive

  • Fannie and Freddie to get $3bn capital buffer boost

    The US Treasury and the Federal Housing Finance Agency (FHFA) agreed on Thursday to allow government sponsored enterprises Fannie Mae and Freddie Mac to maintain a $3bn capital buffer, reversing a previous plan that would have slashed the buffers to zero.

    • 21 Dec 2017
  • EM lessors pose risk to aircraft securitizations — Fitch

    Fitch Ratings said in a webinar this week that given the shift to “smaller, weaker lessees” from emerging market countries in aircraft ABS portfolios, the rating agency will be applying more conservative stresses to aircraft securitizations “where appropriate”.

    • 21 Dec 2017
  • Banco BPM eyes cost cutting after covered bond redemption

    Italy’s Banco BPM is set to redeem €375m of covered bonds early next year, as it looks to clean up its balance sheet and cut down further on its cost of funding.

    • 21 Dec 2017
  • BNP’s Polish arm inks capital relief trade with EIB

    BNP Paribas’s Polish subsidiary, Bank BGŻ BNP Paribas, has closed a Z341m (€81m) securitization of loans to Polish small and medium sized enterprises, with the European Investment Bank buying the mezzanine tranche.

    • 21 Dec 2017
  • Risk on to continue, but expect some asset classes to shrink in 2018 — Kroll

    Brian Ford, head of structured finance research at Kroll Bond Rating Agency, told GlobalCapital this week that the strong risk on investor sentiment seen this year will carry into 2018, but added that autos and non-agency MBS volumes could decline from 2017 levels.

    • 20 Dec 2017
  • No increase in levfin defaults, but looser docs in 2018, says Fitch

    Fitch Ratings’ 2018 leveraged finance outlook forecasted benign credit conditions for next year on Wednesday, but constricted supply and strong CLO demand is expected to lead to further erosions in documentation, analysts said.

    • 20 Dec 2017
  • HSBC sets out new EMEA bond syndicate structure

    As GlobalCapital foreshadowed last week, HSBC has made changes to its EMEA debt capital markets syndicate desk, run by Adam Bothamley.

    • 20 Dec 2017
  • European CLOs attractive but closer eye on managers required, says TwentyFour AM

    TwentyFour Asset Management said this week that it favours a defensive position in European securitization, given tight spread levels. The firm sees value in CLOs, but cautions that manager behaviour could be a growing risk next year as the credit cycle matures.

    • 20 Dec 2017
  • Investors wary of marketplace ABS in 2018 as up cycle ages

    Interest in marketplace loan ABS from investors picked up in 2017, but some are now saying they could sit things out in 2018 as credit concerns grow and a lack of data presents problems in the late stages of the credit cycle.

    • 19 Dec 2017
  • High volume of borrowers in UK RMBS miss final payments

    A third of interest-only borrowers in non-conforming UK RMBS failed to pay down their principle at maturity, according to S&P Global Ratings.

    • 19 Dec 2017
  • Italy’s banking problems are far from fixed

    The Italian banking system finished the year strongly with UniCredit making good progress on Project FINO (the bank's plan for asset disposal, named Failure Is Not an Option) and Genoa’s Banca Carige finalising the all-important capital raising part of its turn-around plan, but there is still a lot of work to be done to resolve Italy’s banking problems in 2018.

    • 19 Dec 2017
  • US tax bill no threat to leveraged finance, say analysts

    The final version of the government’s tax reform bill that the US congress will vote on this week is tough on highly levered US companies, said Fitch on Monday, but most analysts believe the changes won’t significantly dent appetite for corporate borrowing.

    • 19 Dec 2017
  • Consumer lending expert heads to PACE shop

    Joel Eckhause, the former head of direct and residential lending at Bank of the West in San Francisco, has joined residential and commercial Property Assessed Clean Energy (PACE) provider Renew Financial as its chief operating officer.

    • 18 Dec 2017
  • No let-up in US CLO triple-A tightening

    LCM Capital Management and Carlyle have priced triple-A paper at new lows in recent days. The tightening trend in CLO debt appears relentless. Bank of America Merrill Lynch said on Friday that triple-A notes could drop to around 90bp next year.

    • 18 Dec 2017
  • EBA plan no panacea for Europe's NPL conundrum

    The European Banking Authority (EBA) has published a template that banks can use to document non-performing loans as part of its action plan to tackle the problem in Europe. However, sources say that Southern European banks will need more than just a market standard.

    • 18 Dec 2017
  • Risky US healthcare bonds should widen, says BAML

    A report from Bank of America Merrill Lynch on Friday said that high yield bonds from US healthcare companies should be trading wider to the rest of the market, given the potential for secular industry changes on the back of regulatory and tax reform risks.

    • 18 Dec 2017
  • Fitch upgrades Portugal, outlook improving for 2018

    Fitch Ratings upgraded Portugal's long-term currency issuer default rating on Friday, giving the country and its debt issuers a boost heading into the New Year.

    • 18 Dec 2017
  • Conn’s slashes cost of funds in latest ABS deal

    Home appliance chain Conn’s Inc has slashed its cost of funding in the securitization market, with its latest deal achieving the company’s tightest pricing since it re-entered the market in 2015.

    • 14 Dec 2017
  • ‘Vacuum cleaner’ CLOs blamed for deteriorating US loan conditions

    US leveraged finance sources have blamed a rampant CLO market for allowing borrowers to run riot in the leveraged loan market with loose covenants and declining underwriting standards, trends that look likely to escalate if leveraged lending guidelines are rolled back, writes David Bell.

    • 14 Dec 2017
  • Prosper brings on JPM Chase veteran as board member

    Online lender Prosper announced the appointment of Claire Huang as a board member this week as the company looks to enhance its product offerings in 2018.

    • 14 Dec 2017
  • LSE’s Elite club securitizes Italy SME bonds

    The Elite platform, run by the London Stock Exchange, has done a €122m securitization of 10 bonds issued by Italian small and medium sized enterprises, and has plans to expand the programme.

    • 14 Dec 2017
  • Russian RMBS set for growth, says VTB

    GlobalCapital spoke to Andrey Suchkov, head of securitization at VTB Capital, about the outlook for Russian RMBS issuance, which he believes has never looked better.

    • 14 Dec 2017
  • Capping US student loans could boost ABS – DBRS

    The Promoting Real Opportunity, Success and Prosperity through Education Reform (Prosper) Act, which proposes capping federally guaranteed student loans and removing loan forgiveness from income-based repayment (IBR) plans, could benefit lenders and increase student loan ABS volume, said DBRS in a midweek research note.

    • 13 Dec 2017
  • FNBT to launch online small biz lending platform

    First National Bank and Trust (FNBT) has announced a partnership with RC Glitner Services to launch a digital lending platform for small business borrowers in the first quarter of 2018.

    • 13 Dec 2017
  • Hayfin to establish US CLO footprint with Kingsland acquisition

    London-based credit platform Hayfin Capital Management has signed an agreement to acquire US CLO manager Kingsland Capital Management, giving it exposure to US leveraged loans and high yield credit.

    • 13 Dec 2017
  • FIG buyers focus on lower capital targets as UniCredit presents AT1

    Investors looking at UniCredit’s new additional tier one (AT1) trade on Wednesday will have been pleased to learn that the firm’s capital requirements have fallen by 50bp. Meanwhile, covered bonds are set to remain well supported, and the equity tranches of NPL portfolios look likely to offer securitization investors oversized returns next year.

    • 13 Dec 2017
  • Cleveland Fed responds to P2P research criticism

    Loretta Mester, president of the Federal Reserve Bank of Cleveland, has denied that the release of a controversial research paper comparing peer-to-peer (P2P) lending to the pre-crisis subprime mortgage industry was aimed at disrupting the passage of lender friendly legislation proposed by congressman Patrick McHenry.

    • 12 Dec 2017
  • OnDeck grows finance team with balance sheet experts

    Online small business lender OnDeck has hired two senior executives with expertise in asset disposal strategy and balance sheet optimization.

    • 12 Dec 2017
  • EC signals interest in lowering capital charges on green loans

    European Commission vice president, Valdis Dombrovskis, has signalled that capital charges on green mortgages and auto loans could be lowered, a move that would boost the investment appeal of green covered bonds and ABS deals secured on such collateral.

    • 12 Dec 2017
  • Spain sells €818m stake Bankia stake to ‘huge’ foreign demand

    Spain’s government resolution fund, FROB, sold a 7% stake in Bankia in an accelerated bookbuild on Monday night, run by Deutsche Bank, Morgan Stanley and UBS.

    • 12 Dec 2017
  • Tesla deal pricing, secondary market growth seen in solar ABS

    Tesla priced the latest securitization from its SolarCity subsidiary last Friday, pushing total solar ABS volume beyond $1.5bn in 2017 as secondary market activity begins to build.

    • 11 Dec 2017
  • Record December volumes power CMBS to year end

    Issuers have flocked to the CMBS market with deals this month, including the largest commercial real estate CLO since the crisis. With a seven potential deals still to close before year end, this December could be the busiest in a decade, said Bank of America Merrill Lynch analysts.

    • 11 Dec 2017
  • ABS participants shrug off FHA policy reversal

    The Federal Housing Administration (FHA) reversed a July 2016 decision to insure new mortgages on properties with Property Assessed Clean Energy (PACE) assessments in an announcement Thursday, but ABS sources say it is only a blip.

    • 11 Dec 2017
  • Euro CLO volumes set to grow in 2018 after busy year end

    CLO volumes look set to finish 2017 well above 2016 levels and should grow again in 2018, according to analysts. Strong demand, particularly at the mezzanine level, is likely to anchor spreads near their currently tight levels.

    • 11 Dec 2017
  • Lending Club to wind down 2017 with non-prime offering

    Lending Club filed deal documents midweek for a securitization backed by non-prime consumer loans, the fourth deal to surface from the online platform's CLUB shelf this year.

    • 07 Dec 2017
  • UK opens new market for student loan ABS

    The UK government has successfully issued its debut £1.7bn securitization of UK income contingent student loans. Although not to everyone’s taste, it was designed for specific groups of investors that have not typically bought ABS, and set a strong precedent for a planned series of follow-on transactions. Bill Thornhill reports.

    • 07 Dec 2017
  • VTB Capital closes Rb48bn agency-backed Russian RMBS

    VTB Capital has completed a Rb48.2bn (€688.3m) residential mortgage backed securitization, guaranteed by the state Agency for Housing and Mortgage Lending guarantee programme.

    • 07 Dec 2017
  • Green ABS ripens with PACE secondary growth

    An active secondary market has sprouted in the residential Property Assessed Clean Energy (PACE) ABS sector after two years of watershed growth. A growing volume of tradeable assets is expected in 2018. But the outlook is not so rosy for every area of green securitization, writes Sasha Padbidri.

    • 07 Dec 2017
  • Wendy's deal may not mean hot ‘n' juicy whole biz mart in 2018

    Fast food chain Wendy's priced its latest securitization on Wednesday, bringing the volume of whole business deals in the US to over $7bn this year. But sources said that despite the attractions of ABS over vanilla bond issuance, a slow maturation cycle could lead to a quiet 2018 pipeline for the asset class.

    • 06 Dec 2017
  • Rare subprime credit card issuer heads to market

    A subprime credit card securitization from Continental Finance surfaced this week to give the yield-hungry something to chew on. But few similar servings are likely to follow given the lack of subprime debt available to be securitized since the financial crisis.

    • 06 Dec 2017
  • Carige sells non-performing loan portfolio

    Banca Carige, the Genoese bank going through a lengthy restructuring process, moved a step further towards its de-risking target this week by selling a €1.2bn portfolio of non-performing loans.

    • 06 Dec 2017
  • FIG investors look to fill stockings with AT1s next year

    Investors’ appetite for additional tier one (AT1) bonds is unlikely to diminish next year, while senior non-preferred issuance will come from new jurisdictions. Meanwhile, covered bond investors do not expect spreads to widen, and securitization investors are attracted to high yields.

    • 06 Dec 2017
  • No recession ahead, but expect rate hikes, says BAML

    Research analysts at Bank of America Merrill Lynch's 2018 market outlook answered fears in US securitization markets about increasing overall loss rates on recent loan vintages across various consumer credit sectors – and a rush by some lenders to readjust loss expectations – by dismissing fears of a recession.

    • 05 Dec 2017
  • Blackstone returns to Spanish RMBS market with €172m trade

    US private equity firm Blackstone is returning to the Spanish RMBS market to fund a portion of a portfolio acquired from CatalunyaCaixa in 2015, as other large Spanish property portfolio sales stir hopes of greater supply from the sector.

    • 05 Dec 2017
  • NPL securitization volumes to improve in 2018

    The outlook for securitizations of non-performing loans (NPLs), particularly from Greece, is set to improve in 2018 amid a more widespread pick-up in securitization volumes.

    • 05 Dec 2017
  • Outsourcing student loan servicing won’t erase problems

    The student loan servicing infrastructure in the US is ripe for an overhaul. But the Department of Education’s (DoE) plan to outsource student loan servicing to big tech and big finance may not erase all of the existing problems.

    • 05 Dec 2017
  • ABN registers second covered bond programme

    ABN Amro has registered a second covered bond programme as a Dutch company. Analysts at Rabobank believe the programme will be used for central bank funding purposes.

    • 05 Dec 2017
  • Valeant pushes out debt maturities with $1.5bn refi

    Pharmaceutical company Valeant took advantage of strong conditions in the US high yield market on Monday as it issued a bigger than expected $1.5bn eight year senior note to refinance $1bn of debt due 2020.

    • 04 Dec 2017
  • Tesla offers second solar ABS deal in two months

    Investors are eager for a slice of Tesla’s latest solar securitization from its SolarCity subsidiary, said industry sources, but solar ABS volume could remain limited in 2018 unless the challenge of securitizing commercial and industrial scale solar assets can be cracked.

    • 04 Dec 2017
  • CVS to source $45bn of debt for Aetna acquisition

    The announcement from CVS Health that it would acquire healthcare insurer Aetna is set to result in a flood of debt in the US leveraged finance market, with the firm looking to raise around $45bn of new paper to support the $77bn deal.

    • 04 Dec 2017
  • Orders mount for hairy UK student loans as price guidance emerges

    The media are full of stories about much of UK student loans may never be repaid. But ABS investors, especially specialists in riskier assets, have at least £7bn of appetite for them.

    • 04 Dec 2017
  • Wizink broadens appeal with first Spanish credit card ABS

    Spain’s Wizink Bank has begun to establish its name and build an investor base following its first publicly distributed securitization, which was the first ever deal secured on Spanish credit cards.

    • 04 Dec 2017
  • Health Reit Assura raises £310m to fund 'busiest year'

    Assura, the UK healthcare property Reit, has raised £310m of gross proceeds through a firm placing and placing and open offer.

    • 04 Dec 2017
  • Buying frenzy and structure evolution to define 2018, say MPL panellists

    Securitization experts at IMN’s Marketplace Lending conference in New York last Friday said risk appetite and the trend of deepening capital stacks in marketplace loan ABS deal structures will grow in 2018 as the market matures.

    • 02 Dec 2017
  • 'Past is prologue,' says former OCC chief on maturing fintech

    A former chief of staff at the Office of the Comptroller of the Currency this week hyped the growth of fintech and marketplace lending, but indicated that the industry now faces a different set of challenges as it matures.

    • 01 Dec 2017
  • Lending Club diversifies with pass through deal

    Lending Club closed a debut pass through security last Friday, a Consumer Loan Underlying Bond (CLUB) certificate, as the company looks to diversify funding and grow the investor base beyond its securitization program.

    • 01 Dec 2017
  • Tank & Rast pulls in €600m of Roadster funding

    German service station operator Tank & Rast used its Roadster Finance entity to sell a dual tranche secured corporate bond on Friday. The deal raised €600m to help refinance a secured loan.

    • 01 Dec 2017
  • BMW China pulls off third ABS of the year

    BMW Automotive Finance (China) Co made it three and done in the ABS market this week, selling a Rmb4bn ($605.4m) transaction which had a very similar structure to its last offer in the market.

    • 01 Dec 2017