Securitization - Article Archive

  • Secured deals shine as volatility kicks credit

    The covered bond and ABS markets came into their own this week as soaring volatility, driven by Italy's wrangling over picking a government, effectively shuttered other credit markets, write Asad Ali and Bill Thornhill.

    • 31 May 2018
  • US CMBS delinquency rate hits post-crisis low in May

    The overall delinquency rate for real estate loans packaged in CMBS transactions declined to 4.12% this month, the lowest rate in nearly a decade, according to CMBS data provider Trepp.

    • 31 May 2018
  • New prime jumbo RMBS deal in the pipeline from Redwood

    Redwood Trust on Wednesday announced the latest RMBS transaction from its Sequoia shelf, a $410m offering backed by prime home loans.

    • 31 May 2018
  • Tough risk retention rules drive sweet deal for IBs

    Risk retention in securitization, designed to make sure players have ‘skin in the game’, has driven a trade that seems almost the opposite – investment banks profiting by using their market stature to hold risk retentions instead of their clients. Barclays is the most recent player to take advantage, and for the lowest fee yet.

    • 31 May 2018
  • Fitch beefs up levfin analysis with Fulcrum buy

    Fitch Group has reached an agreement to acquire Fulcrum Financial Data, which includes financial analysis brands such as Covenant Review, LevFin Insights and Capital Structure.

    • 31 May 2018
  • Bankers race to do legacy deals ahead of regulation deadline

    The new Securitization Regulation, due to come in on January 2019, could unintentionally block banks from disposing of legacy assets, pushing some buyers and sellers to try to accelerate trades to get them done before the end of the year.

    • 31 May 2018
  • The Annual GlobalCapital US Securitization Awards: The Winners

    GlobalCapital held its fifth annual US Securitization Awards dinner at Manhattan's Metropolitan Club on Wednesday, May 30.

    • 31 May 2018
  • Ashurst taps senior securitization hire in London

    Ashurst has hired Jonathan Walsh in its London global markets practice as securitization partner, bringing him on from Baker McKenzie where he was senior partner in the finance group and global head of securitization.

    • 31 May 2018
  • Single loan CMBS dominates as two deals enter pipeline

    A pair of single borrower CMBS offerings have entered the primary pipeline this week, highlighting the continued popularity of large loan deals in the market this year.

    • 30 May 2018
  • Latest Octagon CLO marks busiest month of the year

    A new CLO from Octagon on Wednesday was the only one to have been priced so far this week, after eight were cleared in the pre-holiday rush before Memorial Day. May has been the busiest month of the year for new issue volumes, but analysts have said the pace could be slowing.

    • 30 May 2018
  • European primary ABS market sidesteps volatility

    The new issue European ABS market ploughed on this week, attracting investors still keen to add risk in the face of broader market skittishness. BNP Paribas sold €384m of mezzanine tranches from a French consumer loan ABS, while Argenta Spaarbank shifted €1bn of RMBS.

    • 30 May 2018
  • Updated: SAIC-GMAC raises the stakes in China ABS

    General Motors’ Shanghai-based joint venture is gearing up for its biggest securitization transaction in China. The Rmb10.4bn ($1.62bn) notes will be up for grabs not only for onshore investors, but also those tapping the market via Bond Connect.

    • 30 May 2018
  • Loosening standards to drive risk higher in agency mortgage market

    Weakening standards for mortgages eligible for purchase by government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac threaten to erode the credit quality of credit risk transfer and other RMBS that contain GSE-eligible loans, according to a report from Moody’s issued on Monday.

    • 29 May 2018
  • Crédit Ag beefs up in US credit, hires new ABS syndicate head

    Crédit Agricole has announced a trio of hires that will expand its capabilities in the US credit markets, including a new head of ABS syndicate with experience in both traditional banking and financial technology.

    • 29 May 2018
  • Ramp rate creeps up in CLOs, but still a concern for investors

    Data from Fitch Ratings showed that on average this year, managers have brought deals to the market with higher volumes of collateral already sourced before they sell CLO debt to investors, compared with previous years.

    • 29 May 2018
  • PGIM to bring rare sterling CLO to reopen market

    Natwest Markets' announcement of a mandate to market PGIM Fixed Income’s first sterling CLO outing has stirred interest from investors and other CLO managers now alert to the opportunities if the deal lives up to its hype.

    • 24 May 2018
  • Vivint preps maiden solar ABS deal

    Vivint is issuing its debut solar asset securitization, a $355 million offering that marks the year’s first ABS deal to be backed by power purchase agreements and leases.

    • 24 May 2018
  • EU begins driving investors toward ESG

    One of the most radical reforms ever made to financial markets is set to become law in a matter of weeks. Investors in Europe will have to ask clients about their environmental, social and governance preferences, and then abide by these choices.

    • 24 May 2018
  • Porterbrook hires Rose to head structured finance

    UK rail leasing company Porterbrook said it had hired Stefan Rose as head of structured finance, a role in which he will manage the financing business and the firm’s relationships with its banks and investors.

    • 24 May 2018
  • Freddie Mac tweaks CRT programme with eye on post-conservatorship

    Freddie Mac has changed the structure of its latest credit risk transfer (CRT) deal to reduce counterparty risk for investors in the event that the agency is no longer under conservatorship.

    • 24 May 2018
  • Jammed pipeline might keep lid on bullish US CLO market

    The sheer volume of CLO transactions has swamped market infrastructure, panellists at IMN’s investors’ conference on CLOs and leveraged loans said on Thursday, which will likely be a restraint on volumes over the remainder of 2018.

    • 24 May 2018
  • World Bank pandemic bond in focus after disease outbreaks

    The World Bank’s pandemic bond, launched last June, was innovative in its coverage and objectives. Therefore the recent potential trigger events after outbreaks of Lassa Fever in Nigeria and of Ebola in the Democratic Republic of Congo offer valuable new insight into how the product functions.

    • 24 May 2018
  • Sterling RMBS and CMBS deals lock in tight funding

    Two sterling MBS transactions in the market have been tightened from initial price talk, reflecting a healthy sterling bid for paper.

    • 24 May 2018
  • Aggressive loan terms drive concerns on recovery rates

    Fiscal stimulus and economic growth should keep the credit cycle going for another two years, but the weakening of investor protections will damage loan recoveries when the market turns, said panellists at an IMN investors’ conference on CLOs and leveraged loans on Wednesday.

    • 23 May 2018
  • Avant prices latest unsecured consumer ABS

    Online subprime consumer lender Avant priced an unsecured consumer loan securitization on Tuesday, boosting the size of the deal from $221.93m to $285m.

    • 23 May 2018
  • Rabobank squeezes cheaper financing for Green Storm RMBS

    Rabobank priced the latest green RMBS deal from its Obvion subsidiary last Friday, keeping the size of the deal in line with last year’s transaction as it offered €550m of senior notes but reducing the discount margin by 3bp.

    • 23 May 2018
  • Ithaca pulls $350m high yield offering

    North Sea oil and gas operator Ithaca Energy cancelled a planned $350m junk bond on Tuesday, citing "market terms and conditions", after it had earlier tightened covenants on the deal.

    • 22 May 2018
  • Ribbon Finance and Charter Mortgages set initial pricing

    Goldman Sachs has published initial guidance on the £427m of notes issued under its UK single loan CMBS, Ribbon Finance 2018-1, while Lloyds is out with initial guidance on UK RMBS Charter Mortgage Funding 2018-1.

    • 22 May 2018
  • Barrow Hanley hires portfolio managers for new US loan strategy

    US investment manager Barrow, Hanley, Mewhinney & Strauss has hired two portfolio managers to set up a new bank loan fund and to lead the firm’s efforts across sub-investment grade US corporate debt.

    • 22 May 2018
  • LoanCore prices jumbo $1bn CRE CLO

    LoanCore Capital priced the largest commercial real estate CLO of the year on Friday, selling the $1.05bn LNCR 2018-CRE1 via lead arrangers Goldman Sachs and Morgan Stanley, and co-managers Wells Fargo and Jefferies.

    • 21 May 2018
  • Permira taps Och-Ziff structurer for European CLO biz

    Permira Debt Managers has hired a CLO structurer from OZ Management (formerly Och-Ziff Capital Management) to structure deals for the firm’s new Providus European CLO platform.

    • 21 May 2018
  • CIFC co-head Wriedt departs

    Oliver Wriedt, co-head of credit investment firm CIFC, has left the business to pursue other opportunities, according to the firm.

    • 21 May 2018
  • Dechert US CLO lawyer leaves for Milbank

    CLO lawyer Sean Solis has left Dechert to join Milbank, Tweed, Hadley & McCoy in New York, the firm said on Monday, with the firm looking to capture market share from new entrants drawn to the sector by the rollback of risk retention rules.

    • 21 May 2018
  • PGIM surprises with rare sterling CLO

    PGIM Fixed Income is in the market this week with a sterling denominated CLO offering, Dryden 63 GBP CLO 2018, arranged by NatWest Markets.

    • 21 May 2018
  • RMBS: Chinese banks take aim at Bond Connect

    While Bond Connect has opened up China’s booming securitization market, most international investors are only tapping deals originated by foreign auto finance companies. But this is starting to change as Chinese banks prepare to sell residential mortgage-backed securities (RMBS) through the bond link.

    • 21 May 2018
  • Lloyds offloads Irish mortgages to Barclays

    Lloyds Banking Group on Friday announced the sale of its £4.3bn Irish residential mortgage portfolio to Barclays.

    • 18 May 2018
  • Bull market spurs boom in private label mortgage bonds

    US mortgage lenders are resurrecting a private label RMBS market that has lain dormant for several years since the financial crisis, as investors chasing yield show interest in deals with riskier credit and looser underwriting. David Bell reports.

    • 17 May 2018
  • Free sustainable investing benchmarks grow with human rights study

    The movement to create free investment benchmarks to support the Sustainable Development Goals is gathering pace, with the launch this week of a major survey of corporate human rights performance.

    • 17 May 2018
  • Asset sales could ramp up as second wave of IFRS effects hits

    As banks and investors assess the impacts of IFRS 9, introduced this year, a second wave of effects from the new accounting rule could hit the market and spur asset sales from banks and pushing interest rates sharply higher for consumers.

    • 17 May 2018
  • EC defends SBBS despite market questions piling up

    The European Commission has defended its plans to forge ahead ahead with plans to introduce sovereign bond-backed securities (SBBS), despite market participants’ lack of enthusiasm for the project.

    • 17 May 2018
  • Citi's Keller moves up to spread product sales head

    Citi's Peter Keller, former co-head of EMEA structured credit, has been promoted to EMEA head of spread product sales.

    • 17 May 2018
  • Argenta readies new Dutch RMBS

    Dutch retail bank and insurance provider Argenta Spaarbank announced a new Dutch RMBS this week, comprising 100% Dutch State Guarantee (NHG) loans, led by ABN AMRO and with BNP Paribas acting as joint lead manager.

    • 17 May 2018
  • New CMBS priced as single loan deals outpace conduits

    Bookrunners priced a $901.17m conduit CMBS transaction late Tuesday at tight spreads, although market activity so far in 2018 has skewed further towards single borrower, single asset transactions

    • 16 May 2018
  • Barclays bolsters US CLO biz with new hires

    Barclays has hired a new head of CLO origination and syndication from Citi, as well as hiring two bankers from Natixis to set up a new middle market CLO platform.

    • 16 May 2018
  • EC marches on with sovereign securitization plans

    The European Commission is forging ahead with plans to introduce sovereign bond-backed securities (SBBS), despite market participants’ lack of enthusiasm for the project.

    • 16 May 2018
  • UK prime RMBS offering enters primary pipeline

    Challenger bank and specialist mortgage lender Charter Court Financial Services announced a new sterling prime UK RMBS on Wednesday, led by Lloyds Bank, with Bank of America Merrill Lynch and Natixis acting as joint lead managers.

    • 16 May 2018
  • Flagstar brings US RMBS market’s first prime investor property deal

    JP Morgan and Wells Fargo are arranging a prime US RMBS deal backed by investor properties for Flagstar Bank, the first deal of its kind to hit the market according to Kroll Bond Ratings.

    • 15 May 2018
  • New CLOs drive market, investors focused on riskier bonds

    A handful of new US CLOs are expected to be priced this week, including deals from HPS, Voya and Octagon, as traders say that investors are looking to take advantage of tightening spreads in junior CLO debt.

    • 15 May 2018
  • UK housing demand soars, but low supply slows growth

    Demand for UK housing is outpacing supply, with buyer registrations increasing 22% year over year, but lower sales volumes might weigh on price appreciation according to real estate brokerage Haart.

    • 15 May 2018
  • Solar ABS issuer Sunnova hires head of finance

    Sunnova, one of the handful of residential solar finance companies to have issued asset-backed securitizations, has hired a new head of finance from a sustainability-focused investor.

    • 15 May 2018
  • Low doc investor loans on the rise in RMBS

    Fitch Ratings flagged a rising risk in the RMBS market in a note this week, as more investor loans are originated using little or no traditional documentation during underwriting.

    • 14 May 2018
  • US levfin buyers get piecemeal progress in fight for better terms

    New terms are emerging in US leveraged finance documentation, as investors try to push back against the loosening of investor protections, but critics claim such provisions are too narrow and too ineffectual to stem the tide of a seller’s market.

    • 14 May 2018
  • Rabobank set to issue third Green Storm RMBS

    Rabobank on Monday announced a new green RMBS transaction from its Dutch mortgage lending subsidiary Obvion, with the bank acting alongside JP Morgan as joint lead manager.

    • 14 May 2018
  • Monte dei Paschi secures IG ratings for huge NPL deal

    Banca Monte dei Paschi di Siena (MPS) said on Thursday that it had closed a securitization of €24.1bn of non-performing loans, with rating agencies deeming the senior tranche of the deal to be investment grade.

    • 11 May 2018
  • Ford brings new sterling auto ABS offering

    Arrangers Bank of America Merrill Lynch, BNP Paribas, HSBC and NatWest markets on Thursday announced a new sterling auto ABS deal from Ford Credit Europe.

    • 10 May 2018
  • US auto ABS shines as sector extends rally

    Despite some concerns over underwriting standards and weak loan originations at some auto finance companies, investors are piling into US auto ABS bonds — with rating agencies also positive on the sector.

    • 10 May 2018
  • No let-up in US loan doc loosening, say lawyers

    Speakers at a loan industry conference in New York on Wednesday highlighted the continued erosion in the quality of investor protections in leveraged loans, a trend that many expect will make recovery rates worse when the credit cycle turns.

    • 09 May 2018
  • Angelo, Gordon hires for new euro CLO biz

    Credit and real estate investment firm Angelo, Gordon has hired a European leveraged finance portfolio manager from PGIM, as the firm joins a growing list of US debt managers setting up European CLO businesses.

    • 09 May 2018
  • Rare UK hotel deal checks into revitalised CMBS market

    Goldman Sachs has announced Ribbon Finance 2018 PLC, a single loan £427.3m CMBS backed by full service UK hotels. It is the fourth CMBS this year and only the third UK CMBS in three years.

    • 09 May 2018
  • Hermes hires two in asset-backed team

    Hermes Investment Management announced two appointments in its asset-based investment team on Tuesday.

    • 09 May 2018
  • Times Square billboards included in latest US CMBS

    A new single asset CMBS deal from Natixis is backed by cashflows from a mixed use development in Manhattan’s Times Square that includes LED signage, partly unoccupied retail space and a Marriott hotel that is not slated to open until the summer of 2018.

    • 08 May 2018
  • Returns on riskiest US lev loans outpace wider market

    The riskiest end of the US leveraged loan market has outperformed the wider loan market in the year to date, although investors are starting to push back on pricing in some instances.

    • 08 May 2018
  • CLO managers trading fewer euro lev loans

    Some global CLO managers are proving to be less actively engaged in managing their European portfolios compared with their US businesses, according to research from JP Morgan, bucking a belief that “a US manager tends to be more active in Europe”.

    • 08 May 2018
  • Blackstone expands industrial footprint with Gramercy buy

    Blackstone has inked a $7.6bn agreement to buy Gramercy Property Trust, a real estate investment trust that focuses on industrial commercial properties — an asset type Blackstone has brought to the securitization market several times this year.

    • 07 May 2018
  • US CLO managers slow down after investors pull back

    US CLO managers brought a deluge of deals in April, but after some triple-A buyers stepped back, primary market activity has slowed down, helping firm up spreads at the riskiest end of the capital structure.

    • 07 May 2018
  • MeDirect hires Curtis as CIO for credit push

    MeDirect, the former Mediterranean Bank, has hired Michael Curtis as chief investment officer, ahead of a planned push into the credit markets that will see the firm boost corporate lending and related activities. Curtis was most recently at ICG.

    • 04 May 2018
  • Spreads fall in non-QM RMBS as market deepens

    The market for RMBS backed by non-qualified mortgages has grown since their inception in 2014, increasing investors’ familiarity with the deals and pushing spreads down on the bonds.

    • 03 May 2018
  • Sovereign bond treatment impedes banking union, says Bundesbank

    A panel this week involving German and Italian regulators highlighted the complications in creating a European deposit insurance scheme (EDIS) and pushing on with the banking union, with policymakers in the two countries viewing the banking sector from radically different angles.

    • 03 May 2018
  • Funding Circle portfolio priced tight in second SBOLT deal

    The second European securitization backed by Funding Circle loans was priced on Thursday, with spreads showing the dramatic drop in financing costs for European marketplace loan ABS since the market emerged in 2016.

    • 03 May 2018
  • Clifden ups its offer for Fairhold CMBS bonds, as rival group strengthens hand

    Clifden IOM No.1, an opportunistic fund seeking to pile into pre-crisis and distressed CMBS Fairhold Securitization, announced Thursday that it intends to mop up £104m of class ‘A’ bonds with a revised offer of 54.5.

    • 03 May 2018
  • BMO buys structured product-focused broker dealer

    Bank of Montreal announced on Tuesday plans to buy MBS and ABS focused broker dealer KGS-Alpha Capital Markets as the Canadian bank broadens its global market making capabilities.

    • 02 May 2018
  • CLOs, mutual funds fuel US leveraged loan market past $1tr

    More than $1tr of leveraged loans are now outstanding in the US market, according to the Loan Syndications and Trading Association. The market has doubled in size in just eight years, with lower rated loans swelling volumes as CLOs and retail funds chase yield in corporate credit.

    • 02 May 2018
  • BAML gets tight pricing for Blackstone Italian CMBS

    Taurus 2018–IT, a Blackstone sponsored CMBS secured on Italian real estate and led by a Bank of America Merrill Lynch, achieved tight pricing on Tuesday across the capital structure, demonstrating investor demand for rare European CMBS paper.

    • 02 May 2018
  • Wells, Barclays price latest conduit deal at wide end

    Wells Fargo and Barclays priced their latest conduit CMBS deal on Tuesday, with senior spreads at the wide end of the recent range. With just one more conduit deal in the pipeline, some analysts expect light volumes to drive spreads tighter.

    • 01 May 2018
  • Termination of PCP agreements to pressure auto ABS, says DBRS

    An increase in voluntary termination (VT) of car loan purchase agreements could lead to heightened risk in auto lending, pressuring the performance of UK auto ABS, according to a report from DBRS.

    • 01 May 2018