Securitization - Article Archive

  • Morgan Stanley to re-securitize 2015 SoFi notes

    Morgan Stanley is in the market with MSRP 2018–SC1, a securitization backed by notes issued in a 2015 consumer ABS offering from SoFi.

    • 30 Apr 2018
  • New money volumes steady in US levloans, as deal recycling slows

    The pace of loan refinancing and repricing eased in the first quarter of 2018, according to a quarterly update from Fitch Ratings. Some investors expect this trend to continue as companies look to dodge rising rates by refinancing loans in the fixed rate bond market.

    • 30 Apr 2018
  • Sainsbury’s 2006 CMBS repaid ahead of Asda merger

    Eddystone Finance plc, one of Sainsbury’s two pre-crisis sale leaseback securitizations, has been fully repaid according to a quarterly bond report published this month. The news comes as the grocery chain announces plans to merge with domestic competitor Asda.

    • 30 Apr 2018
  • Barclays hires securitization director from Morgan Stanley

    Barclays has hired a former Morgan Stanley banker as director in its asset finance business.

    • 30 Apr 2018
  • Investors clamour for Taurus Italian CMBS bonds

    Investors are lining up to buy the bonds across the capital stack in the third European CMBS transactions of the year.

    • 30 Apr 2018
  • Fund aims to make the market for climate insurance

    By attracting private investors to provide risk capital to microfinance firms in the developing world, Global Parametrics is hoping to bolster insurance provision against natural disasters to families and businesses in poor countries.

    • 30 Apr 2018
  • Ygrene slashes cost of funds with PACE industry’s first S&P stamp

    Ygrene Energy Fund’s latest Property Assessed Clean Energy (PACE) securitization, GoodGreen 2018-1, shaved off 10bp in pricing compared to its last deal, after the transaction received both credit ratings and a green score from S&P Global Ratings.

    • 26 Apr 2018
  • WeWork wins out as US HY buyers warm to cash burning companies

    Highly valued companies that are yet to make any money are enjoying a strong reception in the US high yield market. WeWork and Netflix were the latest to sell bonds this week, despite questions over WeWork’s accounting, which turned a $933m loss into $233m of earnings. David Bell reports.

    • 26 Apr 2018
  • Funding Circle brings second marketplace loan deal

    Sole arranger and lead manager Deutsche Bank announced Thursday a £207m UK SME securitization from Funding Circle, Small Business Loan Origination Trust 2018-1, the second ABS offering from the online lender.

    • 26 Apr 2018
  • UKAR offloads B&B mortgages to Barclays-led consortium

    UK Asset Resolution (UKAR) announced on Thursday that it had sold a portion of Bradford & Bingley’s (B&B) remaining mortgage book to a consortium of banks led by Barclays, following a bidding process by a ‘small handful’ of potential buyers.

    • 26 Apr 2018
  • Banker who defined professionalism in ABS

    Richard Mann, who has died aged 60, was a central figure in the European securitization market in the 1990s and 2000s, when it grew from almost nothing to one of the most dynamic segments of the capital markets.

    • 26 Apr 2018
  • New Hampshire utility preps rare rate reduction bond

    The Public Service Company of New Hampshire (PSNH), an electric utility company that services 70% of the US state, is issuing a rare $636m rate reduction bond (RRB) to finance costs relating to the divestiture of 15 fossil fuel and hydroelectric generation plants.

    • 25 Apr 2018
  • LendingClub slapped with FTC lawsuit

    The Federal Trade Commission (FTC) filed a lawsuit against LendingClub on Wednesday afternoon, alleging that the California-based online lender charged hidden fees and withdrew money from consumer bank accounts without authorisation.

    • 25 Apr 2018
  • Single loan deals take centre stage in US CMBS

    Four new CMBS deals are in the works this week, with three backed by single loans. A slowdown in refinancing opportunities, rising rates and fewer issuers are keeping a lid on conduit issuance, although investors say this is helping to maintain underwriting standards.

    • 25 Apr 2018
  • European Commission tempts insurers back to ABS buffet

    The European Commission intends to lower capital charges for insurance companies’ ABS holdings only two years after Solvency II rules were implemented, recognising that the low interest rate environment has led insurers to riskier investments.

    • 25 Apr 2018
  • Dividend Solar closes second ABS offering

    Residential solar lender Dividend Solar has closed its second solar securitization.

    • 24 Apr 2018
  • Merx set to issue inaugural aircraft ABS

    Merx Aviation Finance is in the market with a $506m securitization backed by mid-life narrow body aircraft, but the transaction’s high concentration of emerging market (EM) lessees poses risks.

    • 24 Apr 2018
  • HEF adds two to grow commercial finance presence

    Huntington Equipment Finance (HEF) has hired Ed Maron and Jeremy Smith as senior vice-presidents amid plans to expand its presence in the commercial finance sector.

    • 24 Apr 2018
  • Decline of key metric pressures CLO managers

    The trading ability of European and US CLO managers is being affected by the deterioration of a key collateral quality metric designed to protect debt investors, according to a report by Moody’s this week.

    • 24 Apr 2018
  • European Parliament hoists the green flag

    In the three-legged race that is European lawmaking, one of the legs has just made a big stride forward in sustainable finance policy, publishing the most ambitious plan so far.

    • 24 Apr 2018
  • China ABS: Liquidity boost lifts FAF’s floating combo

    Fortune Auto Finance sold two floating tranches in China’s securitization market on April 20. It captured the onshore market’s optimism on the back of the People’s Bank of China’s announcement last week to release extra liquidity through a reserve requirement ratio (RRR) cut.

    • 24 Apr 2018
  • Scotiabank offers up cross-border auto ABS

    Scotiabank is in the US securitization market this week with a prime auto ABS offering.

    • 23 Apr 2018
  • VW prices first Italian auto loan ABS

    Volkswagen Bank priced its inaugural €500m Italian auto loan ABS deal on Friday, with demand outstripping supply for both classes of bonds offered.

    • 23 Apr 2018
  • Citi’s veteran co-head of CMBS leaves to head CCRE

    Citi’s co-head of CMBS Paul Vanderslice, who had been with the bank for over 25 years, has left to become chief executive officer of Cantor Commercial Real Estate.

    • 23 Apr 2018
  • BBVA inks second guarantee for synthetic ABS

    BBVA secured a guarantee on Monday for a €2bn loan portfolio from the EIB Group, comprising the European Investment Bank and European Investment Fund. The aim is to encourage BBVA to boost lending to Spanish small and medium-sized enterprises.

    • 23 Apr 2018
  • FAF leads charge as foreign autos eye ABS, vanilla RMB bonds

    Fortune Auto Finance (FAF) is approaching onshore investors with a Rmb3bn ($477.5m) transaction on Friday. The auto company is coming to the market as a number of foreign originators unveil their plans to raise more onshore RMB — from both structured and vanilla fixed income deals.

    • 20 Apr 2018
  • Ygrene gets S&P green score, ratings for latest ABS

    Ygrene Energy Fund is in the market with its latest Property Assessed Clean Energy (PACE) securitization, securing both a green evaluation score and credit ratings from S&P Global Ratings for the first time. Deal watchers say that participation from one of the ‘big three’ rating agencies will help boost market participation in the growing asset class.

    • 19 Apr 2018
  • You can't just recycle if you believe in ESG

    Two pieces of news this week highlight how environmental, social and governance (ESG) investing is conquering the capital markets. But both carry a risk of intellectual laziness.

    • 19 Apr 2018
  • Morgan Stanley shoots lights out in European securitization

    As the major US banks reporting strong performances for the first quarter this week, Morgan Stanley boss James Gorman and chief financial officer Jonathan Pruzan picked out their European securitization operation out for praise, on the back of financing activity for legacy portfolios.

    • 19 Apr 2018
  • Ambitious Intesa NPL plan a sign of Italian debt gold rush

    Intesa Sanpaolo’s newly approved plan to tackle its high non-performing loan (NPL) exposure includes a potential securitization of €11bn of gross NPLs and a loan servicing joint venture with a Swedish debt collection specialist as the scramble to win a share of the lucrative Italian debt servicing business gathers pace. Asad Ali reports.

    • 19 Apr 2018
  • KKR Reit sheds 90% of CMBS ‘B’ piece portfolio

    KKR Real Estate Finance Trust announced on Wednesday that it had sold almost 90% of its portfolio of CMBS ‘B’ piece investments, with a dedicated ‘B’ piece fund now doing the bulk of the firm’s buying in that area.

    • 19 Apr 2018
  • Nomura plans to launch European CLO business

    Nomura is mulling the launch of a fully fledged European CLO business, complementing its existing EMEA leveraged loan franchise and a track record of deals executed in the US. The bank already has some warehouse lines outstanding, but is looking to build up its operations.

    • 19 Apr 2018
  • BAML hoping to tap healthy euro CMBS demand for latest deal

    Bank of America Merrill Lynch announced the latest European CMBS on Thursday, a €300m offering backed by three loans secured on Italian commercial properties.

    • 19 Apr 2018
  • SC Lowy spies gains from Credito di Romagna takeover

    Boutique investment bank SC Lowy signalled the potential it sees in the Italian banking sector through its acquisition of Credito di Romagna this week. Michel Löwy, CEO of the firm, also views it as a way to expand the firm’s European leveraged finance operations.

    • 19 Apr 2018
  • Solar, residential PACE securitization buyer base grows

    Solar and Property Assessed Clean Energy (PACE) market players at IMN’s Green Investing Conference in New York on Wednesday acknowledged heightened investor participation on securitizations from both asset classes over the past year, but warned issuers to move cautiously as rates rise in 2018.

    • 18 Apr 2018
  • Post Advisory Group closes debut CLO amid heavy supply

    Post Advisory Group, which set up a new CLO business in September last year, closed a debut deal on Tuesday as spreads leak wider in the primary market on the back of heavy supply.

    • 18 Apr 2018
  • Ambitious Intesa NPL plan includes potential loan ABS

    Intesa Sanpaolo’s newly approved plan to tackle its high non-performing loan exposure includes a potential securitization of €11bn of gross NPLs, and a loan servicing joint venture with a Swedish debt collection specialist.

    • 18 Apr 2018
  • JP Morgan launches ESG versions of EMBI indices

    JP Morgan has announced a new suite of emerging market bond indices that integrate environmental, social and governance (ESG) factors.

    • 18 Apr 2018
  • S&P to go head to head with MSCI in ESG ratings

    S&P Global Ratings is preparing to launch an ESG Evaluation product, competing directly with socially responsible investment rating firms such as MSCI and Sustainalytics.

    • 17 Apr 2018
  • Invictus launches investor property RMBS

    Non-prime mortgage lender Invictus Capital Partners hit the market on Tuesday with an RMBS offering backed by loans on non-owner occupied investment properties.

    • 17 Apr 2018
  • ‘Animal spirits’ back in US high yield as cash floods back in

    The US high yield market has snapped back after softening in February and March, with recent deals issued at steep discounts bouncing back in the secondary market as retail funds flocking back to the sector chase scarce paper.

    • 17 Apr 2018
  • CAN Capital brings on GE alum as CFO

    Online small business lender CAN Capital has tapped Tom Davidson, GE Capital’s former global head of securitization, to be the company's new CFO.

    • 17 Apr 2018
  • BMW announces eighth auto loan ABS

    BMW Bank announced its eighth securitization of German auto loans on Tuesday, backed by an €800m static portfolio and co-led by bookrunners Commerzbank and Skandinaviska Enskilda Banken.

    • 17 Apr 2018
  • IFIS brings senior bond as investors take exposure to NPLs

    Banca IFIS, an Italian lender with a large business in non-performing assets, opened books on its first rated senior bond on Tuesday, in a week in which Intesa Sanpaolo announced that a buyer was taking on its soured loans.

    • 17 Apr 2018
  • Domino’s Pizza, Driven Brands tap ABS to refi debt

    Domino’s Pizza and Driven Brands have returned the ABS market with whole business deals that will help both issuers pay down existing debt.

    • 16 Apr 2018
  • CMBS spreads braced by supply slowdown

    The first CMBS deal in the new quarter was priced last Friday, with the senior bonds coming 5bp tighter than the previous offering in the market. With deal supply slowing after a surge in March, the worst of a recent patch of spread widening should be over, said Bank of America Merrill Lynch analysts.

    • 16 Apr 2018
  • Libor mismatch gives CLO managers new arbitrage concern

    A recent spike in three month Libor has prompted US loan borrowers to switch to the cheaper one month Libor rate, causing a mismatch between CLO assets and liabilities that is putting a new strain on the arbitrage in the structures.

    • 16 Apr 2018
  • Goldman broadens fintech push with Clarity buy

    Goldman Sachs’ GS Bank is broadening its suite of fintech offerings with the acquisition of the personal finance app Clarity Money.

    • 16 Apr 2018
  • Investor interest surges for latest Blackstone-sponsored European CMBS

    The latest Blackstone-sponsored CMBS transaction, FROSN-2018 DAC, drew strong demand from investors across the capital stack, reflecting scarcity value and attractive pricing compared with other European ABS sectors.

    • 16 Apr 2018
  • BioPharma raises $163.8m in capital raising

    BioPharma Credit, a closed end investment fund that provides debt capital for the life sciences industry, raised $163.8m in a primary share placement on Thursday to fund further investment.

    • 13 Apr 2018
  • loanDepot prices inaugural prime jumbo deal

    loanDepot, an online mortgage and consumer loan lending company, closed its inaugural securitization this week, as it seeks to take advantage of non-agency MBS investor demand.

    • 12 Apr 2018
  • Mosaic prices solar securitization

    Residential solar finance company Mosaic priced its first securitization of 2018 this week. The offering follows the recent departure of the firm's head of capital markets.

    • 12 Apr 2018
  • SEIA’s capital markets director departs

    Mike Mendelsohn, senior director of capital markets and project finance at the Solar Energy Industry Association (SEIA) left the trade group this month.

    • 12 Apr 2018
  • Bullish mood prevails at European CLO confab

    The bullish sentiment around the European CLO market was on full display this week at the IMN Investors’ Conference on European CLOs and Leveraged Loans in London, with expectations of higher issuance, more investors and US managers seeking more opportunities to issue on the continent.

    • 12 Apr 2018
  • Insurance companies chase riskier ABS assets

    Life insurance providers maintained their holdings of securitized products at a steady level last year, but many have rejigged portfolios to target higher yielding, riskier asset classes, a report from Wells Fargo said on Wednesday.

    • 11 Apr 2018
  • VW readies first Italian ABS, while Finnish CMBS nears pricing

    Volkswagen Bank has set guidance for its first auto securitization backed by Italian loans, while initial price thoughts for Finnish CMBS FROSN 2018 DAC have been released.

    • 11 Apr 2018
  • Ex-LendingClub chief’s new venture set to issue ABS

    Upgrade Inc, an online personal loan company started by former LendingClub CEO Renaud Laplanche last April, will tap the securitization market this year, sources told GlobalCapital.

    • 11 Apr 2018
  • Rising household debt, ABS, blockchain take the stage at LendIt 2018

    The annual LendIt event in San Francisco honed in on key themes such as financial inclusion for US consumers, rising household debt and online lenders' ABS aspirations. Meanwhile, conference goers are beginning to turn their attention to blockchain technology as LendIt’s BlockFin sister event gets underway.

    • 11 Apr 2018
  • Semper to tap European buyers with new US mortgage fund

    New York based fixed income manager Semper Capital Management has launched a new Irish-domiciled £35m mutual fund to allow UK and European investors to invest in the firm’s US mortgage backed securities strategy for the first time.

    • 10 Apr 2018
  • Prosper to keep PMIT shelf, but seeks new blood as loan agreement winds down

    Prosper will continue to issue ABS from its long standing PMIT shelf, but is looking for new whole loan contributors for its securitizations as it eyes the end of a loan consortium agreement inked last February.

    • 10 Apr 2018
  • Two UK buy-to-let RMBS line up

    Monday and Tuesday this week saw two UK buy-to-let RMBS announced, with Monday's Paragon 25 announcement joined on Tuesday by Tower Bridge No.2, the second outing from Belmont Green Finance.

    • 10 Apr 2018
  • Deutsche must remain a European champion in global banking

    Once again, Deutsche Bank is at a crossroads. After a tough few years, it is still strong enough to fight back in global investment banking. New CEO Christian Sewing will decide whether it does. He seems rational and determined, but does he have the stomach for the battle?

    • 10 Apr 2018
  • Provident's rights offer ends fully subscribed

    Provident Financial, the embattled UK lender, has raised £344m though a rights issue, to pay regulatory fines and restore its balance sheet to health.

    • 10 Apr 2018
  • Online lenders eye longer-dated structures to tap more insurance money

    Online lenders at the LendIt Fintech USA 2018 conference in San Francisco said they are looking at structuring longer-dated fixed income products beyond ABS to attract more interest from insurance companies and other large asset managers.

    • 10 Apr 2018
  • Affirm eyes first foray into ABS market

    Online point-of-sale company Affirm is preparing for a possible securitization as the company looks to enter its next stage of growth.

    • 09 Apr 2018
  • PGIM CLO boss to head bank loans biz

    PGIM Fixed Income announced on Thursday that its co-head of US CLOs would become the firm’s new head of US bank loan portfolio management, upon the retirement of Joe Lemanowicz later this year.

    • 09 Apr 2018
  • Asset manager readies CLO fund for private wealth clients

    US fund manager Alexandria Capital is preparing to launch a fund that will invest in alternative assets including CLO equity on behalf of its private wealth and family office clients.

    • 09 Apr 2018
  • SoFi chief talks expansion, new hires in 2018

    SoFi chief executive Anthony Noto told delagates at the LendIt Fintech USA 2018 event in San Francisco on Monday that the online lending company will launch a suite of new products this year as it looks to compete with other tech firms that are wading into consumer credit.

    • 09 Apr 2018
  • Sluggish volumes but steady spreads in conduit CMBS

    After digesting a "wall of maturities" last year, a shortage of collateral is weighing on conduit CMBS volumes. Just one deal has been priced in the last two weeks, although single asset deals and CRE CLOs are running at triple and double last year’s pace.

    • 09 Apr 2018
  • European CLO buyers less bullish on triple-As after rally stalls

    European CLO spreads have widened following a five week tightening rally, leading to some backtracking of bullish sentiment from triple-A investors at the start of the second quarter, according to a JP Morgan investor survey.

    • 09 Apr 2018
  • PACE activity picks up with Ygrene deal

    Ygrene Energy Fund is in the market with its first Property Assessed Clean Energy (PACE) securitization of 2018, a week after PACEfunding closed a debut deal.

    • 05 Apr 2018
  • Fannie edges forward in conquest of green bond market

    Fannie Mae, the world’s biggest green bond issuer, is negotiating with the administrators of the MSCI Bloomberg Barclays Green Bond Index to get more of its green housing loan securitizations included in the benchmark.

    • 05 Apr 2018
  • Ulster Bank to issue Irish RMBS following RBS ring-fence update

    Following a long absence from the new issue RMBS market, Ulster Bank Ireland DAC on Thursday announced a mandate for Ardmore Securities N0.1 DAC, a euro denominated Irish Prime RMBS.

    • 05 Apr 2018
  • Key CLO triple A investors may need a break after busy Q1

    The second quarter may be slower to pick up for European CLOs, as demand from several big investors softens following three months of brisk issuance.

    • 05 Apr 2018
  • US lev loan market dogged in face of CLO wobble

    Unlike most sectors of US corporate credit, leveraged loans have escaped the volatility of the last couple of weeks. Even a slight cooling in collateralised loan obligations, the market’s biggest investor base, is unlikely to throw this corner of US credit off course just yet, writes David Bell.

    • 05 Apr 2018
  • Renovate America makes first Benji loan portfolio sale

    Residential Property Assessed Clean Energy (PACE) provider Renovate America sold $90m of 'Benji' home improvement loans to an undisclosed regional bank on Wednesday. The company also said it has not ruled out securitizing its Benji loans in the future.

    • 04 Apr 2018
  • Middle market CLO issuance accelerates

    US middle market CLO volumes are running ahead of the levels achieved in what was a record year for the market in 2017, said Wells Fargo on Wednesday.

    • 04 Apr 2018
  • Crédit Ag look to repeat RMBS success

    Following a strong first quarter, April's new issue European ABS pipeline kicked off on Wednesday with the announcement of a $1.15bn French RMBS from Crédit Agricole, FCT Crédit Agricole Habitat 2018.

    • 04 Apr 2018
  • Mosaic readies new solar loan securitization

    Solar finance company Mosaic is preparing to issue its first securitization of 2018.

    • 03 Apr 2018
  • Loose US lev fin standards point to credit cycle peak, says Fitch

    A “significant” loosening of underwriting standards in US leveraged finance points to the market being in the late stages of the credit cycle, said Fitch Ratings on Tuesday, but market data show bids are still heating up in the sector.

    • 03 Apr 2018
  • SF Fed’s Williams to take over as NY Fed president

    John Williams, president of the Federal Reserve Bank of San Francisco, will replace William Dudley as the next president of the Federal Reserve Bank of New York.

    • 03 Apr 2018
  • Investors devour glut of European ABS in first quarter

    European ABS investors absorbed a strong wave of supply in the first quarter, as issuers sold €25.3bn of bonds, a 74% increase in deal volume compared to the first quarter of 2017, according to Rabobank analysts.

    • 03 Apr 2018
  • US CMBS underwriting deteriorated in Q1, says S&P

    After improving last year, credit metrics in the US CMBS market have worsened in the first quarter of 2018, according to S&P Global Ratings, with new deals showing higher leverage, more interest only loans and lower debt service coverage than last year.

    • 03 Apr 2018
  • UK must join the race to the top in green finance

    The UK's political and financial classes are battered and tossed by Brexit. All the more reason why they should keep their sights on what will ultimately be a bigger issue: how to make finance sustainable.

    • 03 Apr 2018
  • OnDeck makes ABS return

    Online small business lender OnDeck is back in the market with an ABS after a two year absence as it seeks to counter the higher cost of holding loans on balance sheet in a rising interest rate market.

    • 03 Apr 2018
  • Upstart tests buyer appetite with riskier loans, more sub notes

    Online lender Upstart is the latest marketplace loan company to broaden the risk profile of its ABS, announcing a deal this week that offers more subordinate bonds and is backed by a higher proportion of longer-term loans.

    • 02 Apr 2018
  • Record volumes in US CLO market weigh on spreads

    The US CLO market has posted its busiest start to the year since the financial crisis, and the torrent of paper is now weighing on spreads which could narrow the arbitrage for deal managers.

    • 02 Apr 2018