Securitization - Article Archive

  • Banks find buyers to take on assets as ECB applies pressure

    Regulatory pressures are pushing banks into shedding unwanted assets. And on the other side of the table, new investors have diversified the marketplace. Jasper Cox reports.

    • 31 Aug 2018
  • Impact investing boom leads to verbal muddle

    Impact investing — a specialist field, outside mainstream financial markets, in which investors seek environmental and social outcomes — is burgeoning, leading promoters to raise their targets for the market’s growth. But at the same time, more conventional investors are also laying claim to the term “impact”.

    • 30 Aug 2018
  • SEC fine no panacea for ratings risk

    The role of rating agencies in contributing to the 2008 financial crisis should not be forgotten. Inflated ratings on securities that turned toxic played a major part in the build-up of the financial bubble that later burst with costly consequences.

    • 30 Aug 2018
  • Insurers load up on esoteric ABS paper in Q2

    Insurance companies tracked by Wells Fargo allocated 30% of their ABS purchases in the second quarter to whole business, timeshare and aircraft deals, as insurers load up on higher yielding paper.

    • 30 Aug 2018
  • ESMA urges speedy adoption of ABS standards

    Steven Maijoor, chair of the European Securities and Markets Authority (ESMA) provided an update on Wednesday to the Committee on Economic and Monetary Affairs (ECON) in the European Parliament on the progress of Level 2 measures under the Securitization Regulation tasked to ESMA.

    • 30 Aug 2018
  • Loans in Brief 31/08/2018

    Loans in Brief 31/08/2018

    • 30 Aug 2018
  • Rabobank preps new Storm RMBS

    Obvion, the mortgage lending subsidiary of Rabobank, is preparing to market Storm 2018-II, an RMBS offering backed by Dutch mortgages.

    • 30 Aug 2018
  • China at crossroads over securitization law

    Almost six years after China’s asset-backed securities market was rebooted, regulators are still struggling to put together legislation for securitization, casting a shadow over the market’s development, writes Noah Sin.

    • 30 Aug 2018
  • Kalahari adventures back into CMBS markets

    According to regulatory filings with the SEC, JPMorgan plans to securitize a loan to Midwestern indoor waterpark operator Kalahari Resorts in SLIDE 2018-FUN, a single asset-single borrower CMBS deal backed by a three year loan that will help expand its recreational compound in Pocono Manor, Pennsylvania.

    • 29 Aug 2018
  • US CLOs steam on with three new deals priced

    The US CLO primary market has shown little sign of relenting in August, with three new deals already wrapped up by Wednesday, following six new deals and five reset/refinancing transactions last week.

    • 29 Aug 2018
  • Euro ABS primary sizzles ahead of busy September

    With ABS syndicate bankers hinting at a busy pipeline of euro deals next month, two CLOs and a buy-to-let RMBS squeezed into the primary market before the end of August.

    • 29 Aug 2018
  • SEC issues historic fine to Moody’s for misleading ratings

    The US Securities and Exchange Commission on Tuesday announced a fine against Moody’s for internal control and modelling issues pertaining to ratings of RMBS, as well as a first ever charge for deficient ratings symbols of CLO combo notes. The rating agency agreed to pay a total of $16.25m to settle the charges.

    • 28 Aug 2018
  • Who should pay for natural catastrophes?

    Over the weekend, Harris County in Texas voted in favour of issuing bonds to pay for flood defences, a year after Hurricane Harvey caused terrible damage in the Houston region. It is part of a wider tussle over who bears the risk of catastrophes — and the capital markets are at the forefront of the discussion.

    • 28 Aug 2018
  • Blackstone CLO fund offers investors an exit

    Carador Income Fund, a CLO investment vehicle set up in 2006 and managed by GSO/Blackstone Debt Funds Management, is set to give shareholders a vote on whether to wind up the fund, with an option to roll over into another vehicle for those still interested in CLO investment opportunities.

    • 28 Aug 2018
  • Investment Association joins push for sustainability

    The Investment Association, the trade body for 250 UK asset managers, is making a concerted effort to become more involved in responsible investment, seeking to influence government policy and help its members navigate this complex area.

    • 28 Aug 2018
  • Bank of Cyprus unveils double-digit AT1

    Bank of Cyprus said on Tuesday that it had priced €220m of additional tier one (AT1) capital with a whopping 12.5% coupon, on the same day it announced the sale of a portfolio of non-performing loans.

    • 28 Aug 2018
  • Solar shop Sunrun plans second ABS issue

    An early solar ABS issuer is preparing to launch its second deal, three years after its first foray into the securitization market.

    • 27 Aug 2018
  • Wells announces cuts to home mortgage business

    Wells Fargo announced plans to cut over 600 staffers from its residential mortgage units, the latest of several rounds of cuts at the bank in 2018.

    • 27 Aug 2018
  • CMBS struggles with dearth of triple-A buyers

    Flanked by mounting competition from other sources of funding and a growing preference from investors for short dated securities, the top of the of CMBS capital stack is struggling to generate demand.

    • 24 Aug 2018
  • Investment Association warns EC against ‘undue focus’ on environment

    The Investment Association, the trade body for UK asset managers, has published responses to two European Commission consultations on aspects of its Sustainable Finance Action Plan — the Taxonomy of environmentally sustainable economic activities and disclosures on sustainable investments and sustainability risks.

    • 24 Aug 2018
  • Returns on European CRE outpacing US equivalents, says Green Street

    European commercial real estate is posting strong returns, said Green Street Advisors in a note this week, with the real estate research and data company eyeing greater upside in European property markets compared to US counterparts.

    • 23 Aug 2018
  • Demand swells for Santander's latest UK RMBS

    Santander priced its Holmes 2018–2 UK RMBS on Thursday, raising more than $1bn, with orders flowing in throughout the three-day book building process.

    • 23 Aug 2018
  • Rating agency exodus ramps up as Brexit looms

    Banks and funds are being inundated with applications from staff trying to leave the rating agencies, as those firms gear up to relocate staff to Europe to comply with ESMA (European Securities and Markets Authority) guidelines.

    • 23 Aug 2018
  • Mercedes seals sub-4% ABS in China

    Mercedes-Benz Auto Finance has completed the tightest auto asset-backed securitization by any foreign originator in China in almost two years. The deal, which closed on Monday, was twice oversubscribed despite two underwriters dropping out of the syndicate at the eleventh hour.

    • 23 Aug 2018
  • Prosper prices latest consumer ABS deal

    Online lender Prosper on Wednesday sold a $500.5m consumer ABS, PMIT 2018-2.

    • 22 Aug 2018
  • Auto ABS in fast lane as VW brings latest deal

    Volkswagen Bank is lining up investor meetings for its second German auto loan ABS of the year, joining two other deals in the primary market. European Auto ABS volume has reached just under €13bn year to date, on track to speed past last year’s €14.9bn total.

    • 22 Aug 2018
  • GSEs to scale back funding for single family rental homes

    The Federal Housing Finance Agency (FHFA) announced on Tuesday that the government-sponsored enterprises will end some funding for the single family rental (SFR) market as it believes larger investors can adequately participate without Fannie Mae and Freddie Mac's assistance.

    • 21 Aug 2018
  • CCG prices equipment securitization

    Commercial Credit Group sold a $268m equipment-backed ABS on Tuesday in what has been a healthy sub-sector of the securitization market in 2018.

    • 21 Aug 2018
  • Caliber set to issue non-performing RMBS

    Amid a quiet summer lull in the pipeline, Credit Suisse and Nomura are marketing the latest fixed rate RMBS deal sponsored by Caliber Home Loans, a venture owned by two private equity funds belonging to Lone Star.

    • 21 Aug 2018
  • UK RMBS jump starts new issue pipeline

    Sole arranger Santander is out with an RMBS deal from its Holmes master trust, with two dollar tranches available as the bank hopes to tap strong US demand and further diversify its investor base.

    • 21 Aug 2018
  • CMBX widens as retailers report dismal earnings

    CMBX spreads widened over the past week on the back of negative retail headlines from retailers such as JCPenney and Macy’s, marking the latest turn of the screw in what some have called this credit cycle’s Big Short.

    • 20 Aug 2018
  • Neuberger Berman readies CLO mezz fund

    Neuberger Berman is preparing a CLO fund with a focus on mezzanine debt tranches. The private equity firm will pitch the UCITS fund to sophisticated investors and has already secured $77m of seed money.

    • 20 Aug 2018
  • CMBS veteran to step down at Starwood Mortgage Capital

    Larry Brown, president and co-founder of Starwood Mortgage Capital, has announced that he will be retiring next year after more than thirty years in the commercial real estate business.

    • 17 Aug 2018
  • Blockchain company hires ABS veteran

    Blockchain and cryptocurrency company AlphaPoint has brought on a securitization industry veteran to advance the firm’s push into asset-backed finance markets.

    • 16 Aug 2018
  • Rough end to the summer in sight for US ABS, say analysts

    The US securitization market has shrugged off macroeconomic turmoil in recent weeks and months, but investors that think sector operates in a vacuum may be due a shock before the end of the summer, according to analysts, writes David Bell.

    • 16 Aug 2018
  • KKR, Schroders partner with Neos on SME lending fund

    The Dutch Growth Joint Venture, controlled by direct lender Neos, closed for a targeted €1bn, with investment firm KKR as the principal investor.

    • 16 Aug 2018
  • Northcross launches two new repo conduits

    Northcross Capital, the specialist manager that sponsors the Anglesea Funding asset backed commercial paper (ABCP) conduit, launched two of the first new ABCP vehicles structured seen in years: Glencove Funding and Longship Funding.

    • 16 Aug 2018
  • Foreign autos fashion single tranche trades in China ABS

    Geely and BNP Paribas’s auto finance joint venture hit the Chinese securitization market with a bang this week, as domestic investors oversubscribed for its single tranche sale by three times. The deal came a week before Mercedes is scheduled to launch a similarly structured transaction, its first in China this year.

    • 16 Aug 2018
  • Fitch sounds off on methodology, ratings shopping in RMBS

    Once dominated by the ‘big three’ agencies, the RMBS ratings industry has welcomed new entrants into the market after the financial crisis tarnished incumbents’ reputations. But Fitch Ratings told investors this week to be wary of the competition.

    • 15 Aug 2018
  • Diamond prices bigger timeshare securitization

    Diamond Resorts came to market on Wednesday with its first ABS offering of 2018, increasing the size of the deal at pricing by $100m.

    • 15 Aug 2018
  • Strong euro securitization pipeline seen for September

    Securitization bankers are expecting a strong issuance pipeline following the summer lull, with issuers said to be looking further ahead and planning their funding and capital structures more carefully than in the past. Issuers said to be scoping the market include Virgin Money, and NewDay credit cards.

    • 15 Aug 2018
  • CLO resets needed to build ‘runway’ for downturn

    Tom Majewski, chief executive of US CLO equity investment firm Eagle Point, said on Tuesday that the firm was focused on resetting existing CLOs in which it held majority equity positions, in order to improve the arbitrage in the structures and also build “runway” for the company to benefit when the loan market eventually suffers a downturn.

    • 15 Aug 2018
  • Updated: Foreign auto names switch gear to single tranche ABS

    Geely and BNP Paribas’s auto finance joint venture hit the Chinese securitization market with a bang on Tuesday, as domestic investors oversubscribed its single tranche sale by three times. The deal came a week before Mercedes is scheduled to launch a similarly structured transaction, which will be its first in China this year.

    • 15 Aug 2018
  • CMBS players unfazed by growing macro headwinds

    Analysts at Bank of America Merrill Lynch argued on Monday that a tide of pressures — a flattening yield curve, trade wars and ballooning corporate bond issuance — will soon turn against the CMBS market. But some players in the sector claim the macro narrative is well overplayed.

    • 14 Aug 2018
  • Are shifting consumer habits squeezing structured finance?

    As Americans across generations, and specifically younger cohorts, delay major life events such as marriage, rent their homes over owning them, shun office life and generally upend the behaviors that defined past generations, the engines that drive US structured finance have slowed. GlobalCapital investigates.

    • 14 Aug 2018
  • Payment receivables ABS give Turkish banks lifeline

    Diversified payment receivables securitizations, a deal structure used extensively by Turkey’s big banks, could be a vital route to help these institutions access more hard currency term funding as the crisis in the country deepens. But these deals have increasingly relied on development institutions in recent years, rather than private demand.

    • 14 Aug 2018
  • Diamond Resorts set to issue timeshare ABS

    Diamond Resorts is issuing a $300m securitization backed by timeshare loans.

    • 13 Aug 2018
  • Freddie Mac seasoned CRT, Starwood flagship RMBS deals price

    A number of non-agency RMBS deals were priced at the end of last week, including private label deals from Starwood and Redwood and a seasoned credit risk transfer (CRT) deal from Freddie Mac.

    • 13 Aug 2018
  • BAML securitization outlook turns bearish

    Bank of America Merrill Lynch analysts turned bearish on securitization markets this week, saying that the growing US-China trade war and a flatter US Treasury curve were strong reasons to start taking risk off the table.

    • 13 Aug 2018
  • US levfin volumes jump after strong earnings season

    Both the US high yield and leveraged loan markets absorbed a flurry of deals at the end of last week after second quarter results painted a strong picture for corporate earnings.

    • 13 Aug 2018
  • Judge swats down Clifden’s ‘unprincipled asset grab’

    Clifden IOM engaged in an “unprincipled asset grab” when it hurriedly arranged the appointment of a deal administrator for the Fairhold transaction, a High Court judge said on Friday. The real estate investment firm was defending an injunction sought by Fairhold, a pre-crisis distressed CMBS, and note trustee Global Loan Agency Services Ltd (GLAS) to prevent Clifden’s appointment of administrators.

    • 13 Aug 2018
  • Clifden’s behaviour ‘unprincipled asset grab', judge concludes

    Instead of acting as the saviour of noteholders, Clifden was simply to trying to profit from the hurriedly arranged pre-pack administration of Fairhold, a pre-crisis CMBS now in distress, according to a judge in the UK High Court on Friday. It was an ‘unprincipled asset grab’, the judge told the court on the concluding day of the hearing.

    • 13 Aug 2018
  • GlobalCapital SRI Awards 2018: the nominations

    The nominations for GlobalCapital's Sustainable and Responsible Capital Markets Awards 2018 have been revealed, as a result of our worldwide market poll, conducted in July.

    • 11 Aug 2018
  • Applebee’s, IHOP parent cooking up ABS refi

    ABS is back on the menu for Dine Brands Global, as the Applebee’s and IHOP parent whips up a nearly $1.58bn corporate securitization.

    • 10 Aug 2018
  • PG&E uses cat bond as California wrestles with fire liability

    Pacific Gas and Electric Co, the Californian utility firm, is using a catastrophe bond to adapt to what it calls the "new normal" of increased wildfire risk. After its equipment was blamed for many of the state’s fires over the past year, PG&E is at the heart of a debate over who should shoulder the costs of rising natural catastrophe damage.

    • 10 Aug 2018
  • GSEs inch closer to single securitization platform

    Fannie Mae and Freddie Mac, the government-sponsored enterprises at the heart of US housing finance, are less than a year away from launching a common securitization platform that will rebalance the market to make a more level playing field for their respective securities.

    • 09 Aug 2018
  • TSI appoints new managing director

    True Sale International GmbH (TSI), founded in 2004 to expand the German securitization market, has appointed Jan-Peter Hülbert to steer the group forward with a focus on advancing STS regulation and third party certification, according to a press release on Thursday.

    • 09 Aug 2018
  • Clifden’s Fairhold CMBS move gets its day in court

    Clifden IOM’s claims to have appointed administrators to Fairhold Securitisation Limited, a CMBS issuer, were “fanciful” and “incredible” a court heard on Wednesday.

    • 09 Aug 2018
  • Volkswagen triple dips amid hot summer demand across Europe

    Volkswagen (VW) took advantage of the positive tone in a quiet corporate bond market to build huge order books for both euro and sterling transactions on consecutive days. The strength of the bid from UK investors was behind the overall success of those transactions, while the borrower also found a pool of demand in Russian roubles.

    • 09 Aug 2018
  • Deloitte: London could package new ILS products

    London's finance sector and new technology could expand insurance-linked securities (ILS) outside their traditional domain and package up different risks into tradeable products, according to a Deloitte consultant.

    • 09 Aug 2018
  • Commercial PACE firms plot regular ABS outings

    Securitizations of commercial Property Assessed Clean Energy (PACE) financings are slowly becoming more common — and with two C-PACE deals notched to date, executives at issuing firms say they plan to be regular sellers.

    • 08 Aug 2018
  • WeWork’s footprint in US CMBS set to surpass $1bn

    Kroll Bond Rating Agency this week highlighted the growing exposure CMBS investors have to WeWork, the coworking space company the business model of which has been criticised by some investors for being front loaded with short-term risk.

    • 08 Aug 2018
  • Weakness in UK retail pressures euro CLOs

    Bank of America Merrill Lynch Analysts in a note this week pointed to weakening in UK retail businesses as a pressure point for European CLOs, citing recent poor performance across such sectors as clothing and restaurants.

    • 08 Aug 2018
  • Updated: Geely-BNPP JV to debut in China securitization

    A Shanghai-based joint venture between carmaker Geely and BNP Paribas is to enter the Chinese auto loans securitization market for the first time next week. The company will test demand with a Rmb1.94bn ($284m) deal, selling just one tranche to investors in the interbank bond market.

    • 08 Aug 2018
  • Home retailer Conn's preps new ABS

    Home appliance retailer Conn’s is issuing an ABS backed by sales contracts and loans, its sixth such deal since 2015.

    • 07 Aug 2018
  • BAML surprises summer market with sterling CMBS

    Primary euro ABS slowed to a trickle in August as investors take their summer holidays but Bank of America Merrill Lynch surprised the market on Tuesday with a CMBS exit for a sterling loan it originated in April.

    • 07 Aug 2018
  • Kushners’ troubled CMBS-financed tower finds hope in Brookfield

    CMBS bondholders and commercial real estate lenders are exhaling with relief following news that Brookfield Asset Management closed a lease on 666 Fifth Avenue, which is currently owned by Kushner Companies. Brookfield will pay upfront for the lease, helping Kushner Companies pay off more than $1bn in CMBS debt that helped finance the building’s acquisition in 2007.

    • 06 Aug 2018
  • Frontier hit with downgrade after earnings disappoint

    S&P Global Ratings downgraded telecoms company Frontier Communications to triple-C status on Friday, swelling the proportion of the low-rated bucket in CLOs holding the debt.

    • 06 Aug 2018
  • MPL ABS notches record breaking second quarter

    Marketplace loan ABS issuers enjoyed a blockbuster second quarter, with a dozen securitizations sold, marking it the busiest quarter to date for the asset class.

    • 06 Aug 2018
  • Italian NPL deals keep lights on in quiet primary ABS

    In a quiet spell for the European primary ABS market last week, three Italian NPL securitization transactions were announced, all with state guaranteed senior tranches.

    • 06 Aug 2018
  • Policy turn drives Ford’s ABS home

    The lending arm of Ford’s China operation took advantage of bullish sentiments in the onshore market on August 2, sealing a Rmb4.5bn ($662.3m) securitization. Bankers say Ford managed to price below Nissan, which offered a similar ABS recently, thanks to a major policy announcement that emerged last week.

    • 06 Aug 2018
  • REITs and brokers jump into equity markets despite symptoms of late cycle CRE

    Commercial brokerage firm Cushman & Wakefield closed an initial public offering on Thursday, becoming the latest real estate firm to go public this year as many mull how to make the best of a market that is still delivering substantial returns, but showing a few signs of wobbling.

    • 02 Aug 2018
  • Debate over CLOs misses the mark

    Concerns voiced over the growth of collateralised loan obligations (CLOs) shows that many commentators on both sides of the debate are still too blinded by the hangover of the 2008 crisis to appreciate the nuances of the next one.

    • 02 Aug 2018
  • UBI Banca pushes ahead with NPL disposal plans

    UBI Banca, the Italian bank with a €97bn loan book, announced on Wednesday the securitization of a €2.75bn non-performing loan (NPL) book, and plans to apply for a state guarantee on the senior tranche which will be retained.

    • 02 Aug 2018
  • Turmoil at FHFA may expedite housing reform, experts say

    The Federal Housing Finance Authority (FHFA), which regulates and oversees Fannie Mae and Freddie Mac, has seen better summers.

    • 01 Aug 2018
  • July unusually quiet for US corporate borrowers

    Across the credit spectrum, US corporate borrower inactivity made for a July that was exceptionally quiet, compared to typical summer volumes.

    • 01 Aug 2018
  • CommonBond plans to keep issuing, stay prime

    Education-focused marketplace lender CommonBond has priced its second student loan securitization of the year, and is looking to the future — and this is not likely to involve reaching down the credit spectrum to attract new borrowers, according to CEO David Klein.

    • 01 Aug 2018
  • AutoHellas issues first Greek non-bank auto lease ABS

    A €101m securitisation of auto leases to small and medium-sized enterprises this week marked a step in efforts to promote SME lending in Europe with the backing of European institutions such as the European Investment Bank (EIB) and the European Investment Fund (EIF).

    • 01 Aug 2018
  • Former RBS FIG banker joins L&G principal finance arm

    Doug Munro, formerly head of UK and Ireland financial institutions debt capital markets at Royal Bank of Scotland and NatWest Markets, has joined Legal & General Capital, the principal investing arm of the UK insurance investor.

    • 01 Aug 2018