Securitization - Article Archive

  • Non-bank mortgage lenders pressured as housing market slows

    Non-bank mortgage lenders are feeling the squeeze as the housing market begins to slow and the era of robust mortgage refinancing activity nears its end.

    • 30 Nov 2018
  • European authorities scramble rescue attempt as securitization regulation looms

    The European Supervisory Authorities have tried their best to protect securitization markets from potentially huge damage from January 1 when the new Securitization Regulation comes into effect, encouraging national regulators to apply their powers in a “proportionate and risk-based manner” when new rules come into force next year.

    • 30 Nov 2018
  • EC pushes ahead with NPL trading plan

    The European Commission is pushing forward with plans to boost liquidity in the NPL market, promoting a privately owned electronic marketplace to improve transparency and encourage trading. It is inviting ‘industry stakeholders’ to a roundtable, with a plan supposed to be on the table by spring next year.

    • 29 Nov 2018
  • UniCredit drives NPL reduction with Italian SME disposal

    UniCredit has sold a €590m portfolio of ‘large ticket’ exposures to two securitization vehicles managed by distressed debt investors.

    • 29 Nov 2018
  • Nomura hires US CLO syndicate head

    Nomura has hired Florian Bita as the head of CLO origination and syndication for the Americas.

    • 29 Nov 2018
  • Euro CLO docs to weaken in 2019, warns Moody’s

    Moody's expects the supply of euro CLOs in 2019 to match 2018 levels, constrained by leveraged loan issuance, with no near term performance worries. However, the rating agency expects that collateral quality and transaction structures will weaken and notes that the European Central Bank’s guidelines to limit excessive leverage have had little impact.

    • 29 Nov 2018
  • JPM prices inaugural high LTV jumbo RMBS

    JPMorgan Chase (JPM) priced a $459m RMBS deal backed exclusively by mortgages with high loan-to-value ratios on Thursday, the latest in a rapidly diversifying market of non-agency mortgage credit.

    • 28 Nov 2018
  • Euro ABS issuers float IPTs as primary slows

    With December on the horizon, bankers are looking to get deals over the line before investors close their books for the year. A few remaining deals in the pipeline are out with price talk, looking to print either this week or next week at the latest.

    • 28 Nov 2018
  • HSBC picks new green bonds head for EMEA

    HSBC has appointed a new head of sustainable bonds for EMEA, in its debt capital markets team, after Victoria Clarke left to join Barclays in August.

    • 28 Nov 2018
  • BMW's China arm returns to ABS, shifts to revolver

    BMW Automotive Finance returned to China's ABS market this week, raising Rmb4.5bn ($575m) from its second deal of the year. But the auto lender tweaked the structure this time, adding a revolving portion.

    • 28 Nov 2018
  • Geely ups the ante in new ABS deal

    After testing the market with a single tranche Rmb1.94bn ($284m) note in August, carmaker Geely will launch a bigger deal with a more complex structure.

    • 28 Nov 2018
  • Investors demand ‘quid pro quo’ as GSEs prepare UMBS launch

    The launch of the uniform mortgage backed security (UMBS) in June 2019 is approaching, but investors continue to voice uncertainty about the merits of the changes to the to be announced (TBA) market and are less prepared than US government officials would hope.

    • 27 Nov 2018
  • How to fix a Greek bank: find a generous backer

    Eurobank’s ambitious scheme to fully merge with its real estate firm Grivalia, hive off €7bn of NPLs, and sell a stake in its servicer was rightly welcomed by the market, with the shares bouncing on Monday morning and other Greek indices rallying. But it’s not something the country’s other banks can count on — the scheme relies on a generous backer, willing to double down on the troubled economy.

    • 27 Nov 2018
  • Moody’s sees red for UK ABS collateral in 2019

    European ABS collateral quality is expected to broadly remain stable in 2019, said Moody’s. But the ratings agency singled out the UK as an exception, saying it expects every underlying UK asset to exhibit higher credit risk next year.

    • 27 Nov 2018
  • JPM eyes record for net US CLO issuance in 2019

    JP Morgan believes US net issuance of collateralised loan obligations could hit an all time record of $95bn next year.

    • 26 Nov 2018
  • TwentyFour AM signals ‘buy’ intent as euro ABS widens

    TwentyFour Income Fund Limited, a closed-end fund with a market capitalisation of £475m ($606.94m), is intending to grow by raising additional equity capital in response to investor demand and favourable market conditions. The fund, which invests in euro ABS, intends to issue new shares at a 2% premium to the unaudited net asset value per share.

    • 26 Nov 2018
  • Eurobank to use merger to tackle €7bn of NPLs

    A tie-up with real estate firm Grivalia will allow Eurobank to accelerate the reduction of its non-performing exposures, the Greek lender said on Monday. The country’s banks normally face equity dilution from writing down bad loans, under a law relating to deferred tax credits (DTCs), but Eurobank has found a structural way to get around that.

    • 26 Nov 2018
  • Greece reveals deferred tax wheeze for NPLs

    On Thursday, the Bank of Greece revealed plans to manage the banking sector’s non-performing loans through securitizing them in a vehicle capitalised by the banks’ deferred tax credits (DTCs) — the latest move to speed up the push to clean up lenders’ balance sheets in the country.

    • 22 Nov 2018
  • California wildfire blindsides cat bondholders

    The frequency of devastating wildfires has rocketed in California over the past two years. Camp Fire, still burning through California, looks set to wipe out a catastrophe bond, leading to sharp questions about how to model and price an emergent risk to companies, buildings and people when this is bundled out to the capital markets.

    • 22 Nov 2018
  • Brexit’s DCM brain drain begins as banks get moving

    The next few months in the run-up to Brexit will bring upheaval for debt capital markets and syndicate teams at London’s investment banks, as they work out which roles will have to be done from the European Union and which staff to move. But the pressure will not cease on March 29, as national regulators have considerable scope to compel banks to relocate jobs. Jon Hay reports.

    • 22 Nov 2018
  • COC-ing about? EU must be joking

    EU authorities are allergic to complex financial products — except when they solve a problem for the EU.

    • 22 Nov 2018
  • Barings poised to price third euro CLO in 2018, First Citizen back with Irish auto ABS

    The €400m CLO deal, managed by Barings (UK) Limited, is set to price on Friday with spread talk on lower rated tranches indicative of a widening in CLO liability costs potentially pinching equity returns. Meanwhile, Magnetar Capital’s First Citizen Finance is marketing its second auto ABS deal backed by Irish loans.

    • 22 Nov 2018
  • The alarm bells are going off across the City

    Between sleeping and waking, there is a middle phase: you realise it’s time to get up, but can’t quite bear to admit you need to get out of bed. London’s debt capital markets teams are in that zone. Brexit’s alarm has sounded, but few are eager to haul themselves into the cold air of Frankfurt or Paris.

    • 22 Nov 2018
  • National Australia Bank targets UK RMBS in expansion drive

    National Australia Bank is planning a further expansion in UK RMBS, using its balance sheet strength to muscle into the burgeoning specialist finance market. The bank is hiring for the team, and plans to build a lasting presence.

    • 22 Nov 2018
  • Deposit-rich Paragon to trim wholesale funding, apply for IRB

    Paragon, the UK bank that specialises in buy-to-let mortgages, reported strong lending growth for its year to September, supported by a 47% increase in deposit funding. That reduced its reliance on wholesale funding and helped it boost profits by 25%.

    • 21 Nov 2018
  • US mortgage insurers increasingly tap CRT market

    Credit risk transfer deals were pioneered by the US government-sponsored enterprises (GSEs) as a means to limit taxpayer liability to the quasi-public entities’ massive portfolio of mortgages. But private mortgage insurers have followed suit and are transferring a portion of their insurance risk in similarly structured deals.

    • 21 Nov 2018
  • Brexodus spreads to DCM and syndicate

    Some investment banks are beginning to move debt capital markets and bond syndicate bankers from London to the EU 27 because of Brexit, or are preparing to do so. Every bank is tackling the issue in its own way, but the common view that in the bond market only trading and sales people would have to move is now looking less tenable.

    • 21 Nov 2018
  • Chinese bankers eye foreign investors for micro loan ABS push

    Will foreign investors increase their exposure to China’s micro loan ABS market? Domestic bankers are trying to make that happen — but not everyone thinks they will succeed. Rebecca Feng reports.

    • 21 Nov 2018
  • Second lap: BMW returns to ABS after just two months

    BMW Automotive Finance will open books for its second auto loan ABS of the year on November 27, another three-trancher worth Rmb4.5bn ($648m).

    • 21 Nov 2018
  • Residential solar lender Spruce acquired by debt fund manager

    One-time solar loan and lease securitizer Spruce Finance has been bought by HPS Investment Partners, a private debt fund manager that split from JP Morgan Asset Management in 2016.

    • 20 Nov 2018
  • FCA Bank adds to euro ABS pipeline with German auto deal

    FCA Bank has announced its 16th car loan ABS transaction from the ABEST platform, adding to the brisk pace of European securitization issuance being seen in November.

    • 20 Nov 2018
  • Mercedes-Benz gets tighter pricing on second ABS of 2018

    German automaker Mercedes-Benz raised Rmb8bn ($1.15bn) from an auto loan ABS this week, slashing its funding cost just three months after its last foray into the market.

    • 20 Nov 2018
  • Loan downgrades ‘biggest risk’ for CLOs in 2019

    Wells Fargo analysts said that the biggest risk for CLOs next year is loan rating downgrades straining the structures, although the bank does not expect an increase in loan defaults despite the rise of late cycle lending behaviour.

    • 19 Nov 2018
  • Amigo taps securitization funding through RBC

    Amigo, a FTSE 250 lender which targets the guarantor-backed loan segment, has completed a £150m securitization facility to repay its current drawings under a revolving credit facility and help expand its business.

    • 19 Nov 2018
  • Wall Street largely cautious on opportunity zones

    The hot new item in the world of commercial real estate is the opportunity zone, a geographic designation approved by the US Treasury that will encourage investment in underserved communities through tax incentives.

    • 16 Nov 2018
  • Solar ABS issuance flares up

    A trio of solar securitizations is progressing through the pipeline this week, giving investors a chance to get their hands on nearly $1bn of bonds tied to residential solar assets.

    • 16 Nov 2018
  • CRE debt market shifts as banks pull back, funds step in

    Commercial real estate financiers at a conference in New York on Thursday discussed the changing nature of their business, which has seen many large banks shun “commoditised” lending for commercial mortgage-backed security (CMBS) deals while debt funds use repo and warehouse financing to gobble up a larger slice of US commercial real estate lending.

    • 15 Nov 2018
  • Goldman vehicle provides risk retention for Dutch RMBS issuer

    Frequent Dutch RMBS originator, Elan Woninghypotheken (EW), is back with its second deal of the year, with risk retention provided by a Goldman Sachs-controlled private financing vehicle based in Luxembourg.

    • 15 Nov 2018
  • Eagle Point partners with wealth advisor to bring CLOs to high net worth buyers

    Investment adviser Alexandria Capital is teaming up with credit firm and CLO investor Eagle Point Credit Management to bring CLO investing opportunities to more family offices and high net worth individuals.

    • 14 Nov 2018
  • Wake-up call for investors in human rights laggards like Heinz and Starbucks

    Investors need to use their voices, especially by voting at AGMs, to improve the poor performance of many companies on protecting human rights, according to supporters gathered in London on Monday for the launch of the second annual results of the Corporate Human Rights Benchmark.

    • 14 Nov 2018
  • NIBC to re-ignite Dutch RMBS programme after long dry spell

    Following the successful debut issuance of £250m senior preferred bonds last week, NIBC's latest transaction, Dutch MBS XIX, brings them back to the securitization market for the first time since January 2013.

    • 14 Nov 2018
  • Goldman Special Situations Group issues loan-backed notes

    The Special Situations Group at Goldman Sachs has structured private financing vehicles based in Luxembourg, which package up bundles of loans made by the group with an average rating of B/B-. The vehicle will also hold risk retention interests for Goldman-sponsored securitizations.

    • 14 Nov 2018
  • CMBS pay-off rate hits post-crisis high in October

    The percentage of CMBS loans that were paid off at maturity surged in October, according to Trepp, hitting the highest level since the commercial real estate data provider began tracking the figures, in 2008.

    • 13 Nov 2018
  • Apollo widens pricing, tightens covenants on LifePoint buyout debt

    Apollo-sponsored RCCH Healthcare Partners made investor-friendly changes to the bonds and loans it sold this week to support its acquisition of LifePoint Health, widening the pricing as well as tightening the covenants in the debt package.

    • 13 Nov 2018
  • LeasePlan’s third quarter results skid after surprise Turkish exposure

    The perils of leaving foreign currency exposure unhedged were on display with LeasePlan’s latest results, announced on Tuesday, which showed net results halved compared to the same quarter last year.

    • 13 Nov 2018
  • Center Parcs ensures no break for sterling investors

    Center Parcs UK on Tuesday become the fourth corporate issuer to sell sterling bonds in the previous six business days. The holiday village operator's combination of new bonds and a tap of an existing issue took the total printed by the four issuers to £1.8bn.

    • 13 Nov 2018
  • Swollen Cali wildfire risk hits insurance, ILS sectors

    Camp Fire is the most destructive wildfire in California’s history and the latest sign that insurers in the state are facing a recurring threat from blazes. Within the catastrophe bond market, the recent events have focused minds on insurance losses as usual, but also on the utility companies that have issued securities to cover their liability for losses.

    • 13 Nov 2018
  • Wells analysts see shades of 2013 ‘taper tantrum’ in autumn volatility

    Looking at the broad-based volatility battering financial markets this autumn, analysts at Wells Fargo have spotted similarities between "red October" and the 2013 taper tantrum, with one notable exception — the absence of a major investor to help reduce volatility and absorb new supply.

    • 12 Nov 2018
  • Securitization hedge fund LibreMax buys CLO manager

    LibreMax, the securitization-focused hedge fund started by famed crisis-era ABS trader Greg Lippmann, is betting on the continued bull run of the CLO market with the acquisition of Trimaran Advisors.

    • 12 Nov 2018
  • Northview UK RMBS joins November deal flow

    New issue euro ABS announcements have slowed to a trickle in November. Deals still making their way through the pipeline include two CMBS deals – Arrow 2018 and Oranje ELOC 32 – a UK credit card ABS, a Spanish SME CLO and a student loan ABS deal. On Monday, Northview Group added to those deals with a £327m non-conforming RMBS transaction.

    • 12 Nov 2018
  • Sunrun preps solar ABS offering as pace of issuance picks up

    Residential solar installer Sunrun is preparing to launch an asset-backed securitization in the next few weeks after a spurt of offerings from competitors.

    • 08 Nov 2018
  • Tie banker bonuses to ESG, says Euro Parliament in radical push for green finance

    The chances of a profound transformation of financial markets to equip them to fight climate change rose this week, when the European Parliament adopted a bold set of policies that would require investors, banks and companies to take into account their impacts on the environment and society. Bonuses would be linked to sustainability targets.

    • 08 Nov 2018
  • CSAM boosts latest CLO as market hits $112bn

    Credit Suisse Asset Management increased the size of its latest CLO by over $200m on Thursday, with ICG also pricing a new deal this week to bring year to date volumes in the US to $112bn.

    • 08 Nov 2018
  • Demand for Dilosk RMBS paves way for BTL deal

    In a week with just one new issue euro ABS announcement — a Spanish small and medium-enterprise (SME) CLO — investors piled into specialist lender Dilosk’s Irish retail mortgage backed security (RMBS). Pricing of the deal at the tight end of guidance will open the door for the lender to step into the buy-to-let RMBS market in 2019, executives say.

    • 08 Nov 2018
  • Brexit barriers could impact Sonia, says BoE group

    The sterling overnight index average (Sonia), the rate chosen to replace sterling Libor by regulators, may suffer from a “bifurcation of… sterling money markets” after Brexit, according to a Bank of England Sonia Oversight Committee.

    • 08 Nov 2018
  • FHFA issues 2019 agency lending guidance

    The Federal Housing Finance Authority (FHFA) published guidance on multifamily lending caps for Fannie Mae and Freddie Mac on Tuesday, limiting the total amount of loans that they can buy next year to $35bn each.

    • 07 Nov 2018
  • Apollo adds CMBS carveout to LifePoint high yield bonds

    The high yield bonds being issued to support Apollo’s acquisition of hospital group LifePoint Health include carve-outs that allow the private equity firm to pay itself dividends by securitizing LifePoint’s property and equipment without falling foul of additional debt and restricted payments covenants.

    • 07 Nov 2018
  • AXA charges into US commercial real estate debt

    AXA Investment Managers, a unit of the French insurer, has announced that it is acquiring a business line owned by Quadrant Real Estate Advisors and will assume management of $9.4bn of US commercial mortgage loans.

    • 07 Nov 2018
  • Kroll hired to rate first CLO transaction

    Kroll Bond Rating Agency has won a mandate for its first CLO rating, after hiring staffers from S&P Global and Goldman Sachs earlier this year to break into the booming corner of the securitization market.

    • 07 Nov 2018
  • Dudgeon restores sterling market confidence

    TC Dudgeon Ofto — the owner of the transmission lines from the North Sea Dudgeon Offshore Wind Farm — restored investors’ confidence in the sterling corporate bond market on Tuesday. It was notable, as it was a fundamentally green issuer selling bonds without green bond labels.

    • 07 Nov 2018
  • Fairhold saga continues with new Court hearing to ‘restrain’ Clifden

    Attempts to divert the assets of distressed UK CMBS Fairhold to an affiliate of hedge fund Clifden IOM looked to be over in August when the issuer and note trustee Global Loan Agency Services (GLAS) convinced a judge that Clifden’s actions amounted to an ‘unprincipled asset grab’. But Clifden’s behaviour since that ruling has prompted yet another court hearing.

    • 07 Nov 2018
  • Wells Fargo erroneously foreclosed on 545 borrowers, quarterly filings reveal

    Tucked away in Wells Fargo’s third quarter filings with the Securities and Exchange Commision was news that the bank incorrectly denied 870 loan modifications and wrongly foreclosed on 545 agency borrowers between 2010 and 2015. The news is yet another blemish on Wells Fargo's customer service record.

    • 06 Nov 2018
  • Analysts predict US high yield rebound

    Some US high yield analysts have said markets “oversold” last week and are expecting spreads to rebound after they slipped to their widest level in a year.

    • 06 Nov 2018
  • NatWest Markets mandated on debut Spanish SME CLO

    The transaction, Alhambra SME Funding 2018-1, comprises sub-investment grade senior secured and unsecured loans to Spanish SMEs and mid-caps originated by Be-Spoke Capital (Ireland) Ltd.

    • 06 Nov 2018
  • European Parliament pushes for tougher impact disclosures

    The European Parliament will push for stronger rules on sustainability for investment firms and banks, after its Economic and Monetary Affairs Committee voted on Monday evening to go beyond what the European Commission is recommending.

    • 06 Nov 2018
  • European ABS issuance pushes past 2017 tally

    UK and Dutch RMBS, auto ABS and CLOs raised more than €3.4bn last week, taking the year to date total of €82.6bn of European ABS past 2017’s full year tally, according to Morgan Stanley data. But predicting next year’s issuance levels will be a tricky task.

    • 06 Nov 2018
  • FCA warns on equity release mortgage boom

    Chris Woolard, executive director of strategy and competition at the UK’s Financial Conduct Authority, has warned mortgage bankers about the explosive grow in the lifetime mortgage section of the market — a move driven partly by regulatory changes for the UK’s life insurers.

    • 06 Nov 2018
  • Dongfeng-Nissan kicks off its fourth ABS this year

    Regular issuer Dongfeng-Nissan Auto Finance will open books for a Rmb4.43bn ($639.6m) auto loan securitization on Thursday.

    • 06 Nov 2018
  • Hannon Armstrong readies $440m solar lease ABS

    Real estate investment trust Hannon Armstrong has announced SunStrong 2018-1, an ABS transaction backed by a pool of residential rooftop solar leases the company acquired from a solar developer.

    • 05 Nov 2018
  • New bank liquidity proposals could slash bank MBS holdings

    The Federal Reserve unveiled changes to US bank regulatory standards last week that would reduce or eliminate liquidity coverage ratios at mid-size financial firms. Many in the agency MBS market expect the move to weigh on demand for tier one Ginnie Mae bonds.

    • 05 Nov 2018
  • GlobalCapital European Securitization Awards: Call for Nominations

    GlobalCapital is pleased to announce the call for nominations for its European Securitization Awards.

    • 05 Nov 2018
  • Ellington expands European reach with long-short UCITS fund

    Alternative investment management firm Ellington, founded in 1994 and based in Connecticut, has teamed up with London-based Trium Capital to launch a long/short credit UCITS fund later this quarter.

    • 05 Nov 2018
  • GlobalCapital Loan Awards poll closes tomorrow!

    GlobalCapital’s poll to determine our Syndicated Loan and Leveraged Finance Awards 2018 closes on Thursday. We would be delighted if you would take this opportunity to pick the deals and firms that have made the most difference to making loan markets a success in 2018. We remind you that an institution cannot win a category it hasn't voted on.

    • 05 Nov 2018
  • Three deals pulled in volatile US high yield market

    Three US high yield bonds have been pulled in the last week after spreads widened from their tightest level since the financial crisis to their widest level in a year over the course of October.

    • 01 Nov 2018
  • Sudden stop for conduits could drain €130bn from Europe’s banks

    Obscure disclosure rules for European securitizations could bring asset-backed commercial paper conduits to a sudden stop on January 1, forcing the banks that sponsor them to step in with liquidity support of up to €130bn.

    • 01 Nov 2018
  • Morgan Stanley preps Dutch conduit CMBS

    Morgan Stanley announced a Dutch conduit CMBS, Oranje (ELoC 32), on Thursday.

    • 01 Nov 2018
  • Pollen Street sells Funding Circle ABS exposure

    P2P Global, a listed investment fund managed by Pollen Street Capital, which buys marketplace loans across Europe and the US, has sold 95% of its exposure to the most recent securitization of Funding Circle loans, which it sponsored in May.

    • 01 Nov 2018
  • LaSalle acquires bridge lender Latitude

    LaSalle Investment Management announced on Thursday that it had entered into an agreement to make a majority acquisition of Latitude Management Real Estate Investors, which it valued to be worth $1.2bn.

    • 01 Nov 2018