Securitization - Article Archive

  • Vote Now: GlobalCapital European Securitization Awards 2019

    GlobalCapital is pleased to present the nominees for its European Securitization Awards.

    • 21 Dec 2018
  • More retail funds join leveraged loan exodus

    A wave of mutual fund redemptions is pushing a loan market sell-off deeper as investors look to cash out of a potentially overheated investment, said leveraged loan market sources this week.

    • 20 Dec 2018
  • Esma seeks views on greening MiFID, Ucits

    The European Securities and Markets Authority has launched three consultations on how sustainability risks and factors should be integrated into the main regulations governing European securities and investment markets — MiFID II, Ucits, the AIFMD and the Credit Rating Agency Regulation.

    • 19 Dec 2018
  • Regulators align OTC contract treatment for STS securitizations with covered bonds

    The European Supervisory Authorities (ESAs) on Tuesday brought the risk mitigation treatment of simple, transparent and standardised (STS) ABS deals in line with covered bonds for over-the-counter derivatives contracts. The announcement follows guidelines published last week by the European Banking Authority clarifying the finer points with regard to the STS framework that comes into effect next year,

    • 19 Dec 2018
  • Fed unwind to pressure spreads in 2019, warns Amherst

    Analysts at Amherst Capital Management are predicting that the continued unwind of the Federal Reserve's holdings of Treasuries and MBS and increased deficit spending from the US government could lead to even wider spreads in credit markets throughout 2019.

    • 18 Dec 2018
  • Emerging market structured funding expands frontiers

    A niche corner of the interbank lending market between Western and emerging market financial institutions has been thriving behind the scenes of volatility in public EM markets, as its activity spreads across regions and innovation in its financing products flourishes, writes Ross Lancaster.

    • 18 Dec 2018
  • GSEs finally face up to change, 10 years on from crisis

    It has been more than a decade since the US government nationalized Fannie Mae and Freddie Mac, the government-sponsored enterprises at the heart of US housing finance. Private sector advocates have hotly contested their conservatorship — without results — but 2019 be the year that that changes.

    • 18 Dec 2018
  • Peak CLO market prepares for rate cycle gyrations

    Against a backdrop of rising Libor rates, deteriorating loan covenants and strong corporate earnings, CLO participants in 2018 had to digest a host of mixed signals from the market. Investors and managers are cautiously eyeing a continued bull run as the sector comes to a late-cycle crossroads in 2019.

    • 18 Dec 2018
  • Private label set for comeback in 2019

    Once a big portion of global structured finance, non-agency RMBS has been a small part of the MBS market since 2008, in spite of a housing recovery in the US. Alexander Saeedy examines the outlook for a comeback of private label bonds in 2019.

    • 18 Dec 2018
  • Securitization runs hard to keep up with the US consumer

    Consumer spending habits have changed beyond recognition since the financial crisis 10 years ago. US households are more wary of debt and are turning away from many of the traditional avenues of spending that have driven ABS markets for decades. While the market has come back since the depths of the crisis, securitization in 2019 is a different beast.

    • 18 Dec 2018
  • European securitization poised for new year regs

    The European Union’s new securitization regulations come into effect on January 1, a year after publication. Market participants hope they will help spark an industry revival, 10 years on from the global financial crisis. But lingering concerns could stall issuance of European ABS as 2019 gets under way.

    • 18 Dec 2018
  • 10 years of post-crisis securitization

    The securitization market has been to the brink and back. From the depths of the financial crisis, the market faced huge obstacles before it was able to stage its impressive comeback in the last five years. Max Adams charts some of the highs and lows for the market in the decade since Lehman Brothers’ collapse and the financial crisis.

    • 18 Dec 2018
  • Carige rushes to shift NPLs with end of year securitization

    Banca Carige has reduced its non-performing loan (NPL) book to €3.5bn a year ahead of schedule with a €964m NPL securitization, utilising a well tested structure that uses a state guarantee on the senior tranche.

    • 18 Dec 2018
  • Get tough! industry pleads with regulators on climate change

    Participants at a Transparency Task Force symposium on Monday told representatives of three UK financial regulators they welcomed their efforts to step up oversight of the financial system’s response to climate change — but they called for regulators to be more ambitious, as scientists say the world has 12 years left to get global warming under control.

    • 18 Dec 2018
  • EU lawmakers reach agreement on NPL measures

    The European Parliament and the European Council have reached an agreement on a set of measures to tackle non-performing loans in the banking sector, broadly backing the European Commission’s proposals from March.

    • 18 Dec 2018
  • Risk transfer market readies new frontiers

    Synthetic risk transfer markets have had another good year, with the core group of banks active in the market returning to issue, smaller firms mulling the market, and investors raising new cash to buy deals. But perhaps most exciting is the development of a whole new issuer base, in the shape of multilateral development banks, following the landmark ‘Room2Run’ deal between the African Development Bank and Mariner Investment Group.

    • 18 Dec 2018
  • Securitization, from high finance to the high street

    Securitization markets involve some of the most esoteric, obscure parts of investment banking. Traders and bankers rarely court publicity, while deals are placed to a specialist subset of the fixed income buy-side. Yet, 10 years after the financial crisis, securitization affects almost every part the real economy.

    • 18 Dec 2018
  • 10 years of post-crisis securitization

    The securitization market has been to the brink and back. From the depths of the financial crisis, the market faced huge obstacles before it was able to stage its impressive comeback in the last five years. Max Adams charts some of the highs and lows for the market in the decade since Lehman Brothers’ collapse and the financial crisis.

    • 18 Dec 2018
  • CLO issuance grinds to a halt

    US CLO issuance has almost entirely tapered off in the final weeks of the year, but a select few deals are crawling through the pipeline even while spreads are near recorded highs for 2018.

    • 17 Dec 2018
  • VA tightens cash-out mortgage refi rules

    With an eye to reducing prepayment speeds on Ginnie Mae mortgages, the U.S. Department of Veterans Affairs (VA) announced new rules on Friday that spelled out how the agency will broaden its crack down on predatory refinancing practices.

    • 17 Dec 2018
  • Lloyds prints first ever Sonia-linked securitization

    Following its debut £750m Sonia-linked covered bond issue in September, Lloyds has printed the first securitization linked to Sterling Overnight Index Average (Sonia) – Elland RMBS. The deal more than doubles the outstanding issuance in the format.

    • 17 Dec 2018
  • Capital markets must avoid the optimism trap

    Sustainability is conquering finance — to judge by what the industry likes to talk about. Outside the window, the real economy continues much as before. Is all the noise about green finance actually shifting capital in the right direction — or is it just making people feel better?

    • 17 Dec 2018
  • Wounded London faces long Brexit contest with continent

    London has peaked as Europe’s capital markets hub. But how much of the business it will lose is still to play for. Bankers’ faith that only some functions need go looks misplaced. The stage is set for a drawn-out poker game between banks wanting to stay in London and continental regulators who hold a strong hand.

    • 17 Dec 2018
  • Solar securitizer Spruce looks to turn corner under new management

    With a new owner, revamped management team and a change of headquarters, solar securitizer Spruce Finance is looking to chart a course forward following a turbulent couple of years in which the solar loan originator's early backers are said to have been "wiped out."

    • 14 Dec 2018
  • White House promotes opportunity zones as financing lines up

    Momentum behind opportunity zones — geographic designations meant to draw in real estate investors through tax breaks — is building after the White House announced on Wednesday that it was establishing an Opportunity and Revitalization Council to foster public investments in qualified opportunity zones.

    • 13 Dec 2018
  • EBA guidelines on STS provide 'welcome clarity' for EU ABS

    Guidelines released by the European Banking Authority (EBA) on Wednesday brought the European ABS market much-needed clarity, as issuers grapple with new rules set to apply in the new year.

    • 13 Dec 2018
  • CLO investors eye quiet start to 2019 as volatility bites

    Leveraged loan prices are plummeting in secondary trading and CLO managers are scrambling to market new deals even after US equities have recovered from their recent tumble.

    • 13 Dec 2018
  • Sunrun prices latest solar securitization

    Residential solar developer Sunrun priced its second ever securitization on Wednesday, Sunrun 2018-1, a $378.5m offering backed by leases and power purchase agreements tied to rooftop solar systems.

    • 12 Dec 2018
  • BAML prices Taurus European CMBS deal

    After snapping up around €100bn of ABS this year, investors are preparing to shut their books in the run up to year end. The last remaining CMBS deal in the pipeline — Taurus 2018-3 DEU from Bank of America Merrill Lynch — was priced on Wednesday with senior tranche demand just over the threshold and junior spreads offered at wider levels compared with initial price talk.

    • 12 Dec 2018
  • Sofr comes down from all-time highs

    The Secured Overnight Financing Rate (Sofr), the chosen alternative to dollar Libor rates, has shown more volatility, spiking to an all-time high toward the end of last week before moving back down this week.

    • 11 Dec 2018
  • Turkey goes ahead with ‘perplexing’ MBS offering

    Turkey pushed on with plans to raise TL3.15bn ($590m) through a securitization of mortgages, completing the deal but causing on-looking bankers to scratch their heads at the rationale.

    • 11 Dec 2018
  • Amigo reveals new CFO, follows November ABS tap

    FTSE 250 guarantor loans specialist Amigo Holdings, which reported a year-on-year growth of 34% in customer numbers for the six months to September and a 56% increase in profits, has picked Nayan Kisnadwala as the new chief financial officer to replace Simon Dighton.

    • 11 Dec 2018
  • Tesla charges up auto ABS deal

    Tesla filed paperwork last week signaling its intention to sell its second ever auto ABS deal.

    • 10 Dec 2018
  • Securitization sceptic nominated as housing finance chief

    President Donald Trump nominated Mark Calabria, a well-known securitization sceptic, to head the Federal Housing Finance Agency (FHFA) — the body charged with regulating government-sponsored enterprises (GSEs) — on Wednesday.

    • 10 Dec 2018
  • Kroll rates first European CMBS transaction

    Salus European Loan Conduit No. 33 DAC, a £367m single asset CMBS, was priced last Friday with marks from Kroll Bond Rating Agency. It is the first European CMBS deal to be rated by the agency since it opened its European operation in 2017.

    • 10 Dec 2018
  • Retail woes drive downgrades of 2014 CMBS

    Fitch Ratings announced on Thursday that it has downgraded four classes of a conduit CMBS deal issued in 2014, with the move driven primarily by troubles at a mall in Pennsylvania that backs one of the loans in the deal.

    • 06 Dec 2018
  • Trinitas V CLO reset delayed as year-end volatility bites securitization

    CLO market sources tell GlobalCapital that Natixis has been unable to successfully market a CLO reset on behalf of Trinitas Capital Management and will delay the offering until early 2019 as investors balk at tight spreads in a highly volatile market.

    • 06 Dec 2018
  • LendInvest primes securitization launch with multiple hires

    LendInvest, a non-bank lender specializing in property lending and which operates an online marketplace lending platform, has boosted its capital markets and treasury team with the addition of four new hires and an internal promotion for the role of treasurer.

    • 06 Dec 2018
  • Geely’s second ABS prices tighter than bigger names

    After its successful debut in the Chinese ABS market, Genius Auto Finance, the joint venture between Geely Automobile Holdings and BNP Paribas Personal Finance, scored an equally popular follow-up deal at an even tighter price.

    • 06 Dec 2018
  • Cat bond fund calls for greater insurer transparency

    Plenum CAT Bond Fund has received a sustainability certificate for next year, and the assessment process may help guide other investors in insurance linked securities (ILS). But it also raises questions about the transparency of insurers’ liabilities more generally: is the socially responsible finance movement looking at insurance firms in the right way?

    • 06 Dec 2018
  • Starwood hires Deutsche's ex-head of structured credit

    Starwood Capital Group announced on Wednesday that Armin Rothauser will be joining the firm in January to lead Starwood’s newest lending group in transportation, infrastructure and energy.

    • 05 Dec 2018
  • Corp defaults to rise, says Moody’s

    Defaults among borrowers with speculative grade ratings are set to dive at the start of next year, but only for a while, Moody’s said in an outlook report for non-financial corporates this week.

    • 05 Dec 2018
  • CBA takes Sonia funding in senior

    Commonwealth Bank of Australia has linked a short-dated unsecured bond to Sonia, the latest use of the alternative risk-free rate as borrowers become more comfortable with the format.

    • 05 Dec 2018
  • SocGen flags issues on construction of Ibor fallbacks

    Strategists at Société Générale have highlighted potential problems with the preferred fallback method for derivatives contracts referencing interbank offered rates.

    • 05 Dec 2018
  • Fund outflows bring levfin to standstill

    Investors in European leveraged debt seem to be giving up for the year. Funds and financial vehicles that buy high yield bonds and leveraged loans have seen large volumes of cash outflows, leaving borrowers with no other option but to step back this week.

    • 05 Dec 2018
  • Mexcat bondholders look to delay tender take-off

    Questions over covenants and collateral gave a pause a rally in bonds issued by Mexico City Airport Trust (Mexcat) on Tuesday, with one group of bondholders publicly challenging plans to amend the notes' documentation.

    • 05 Dec 2018
  • Private equity jeopardising levfin creditor protections

    Senior credit analysts at Moody’s are warning that the private equity-led proliferation of weak creditor protections in the leveraged loan market may mean a more protracted and challenging default cycle in coming years.

    • 04 Dec 2018
  • Conduit CMBS spreads hover near 18 month wide levels

    US conduit CMBS spreads are hovering around their widest levels since the middle of 2017, having been driven out by macroeconomic volatility that has leaked into fixed income in recent weeks.

    • 04 Dec 2018
  • TKYB's mortgage securitization plan praised

    The Turkish Development Bank is planning to print TL3.15bn ($590m) of securities backed by Turkish mortgages in a move heralded by most onlookers as a positive step in the country’s battle against inflation and recession.

    • 04 Dec 2018
  • Former Obvion treasurer Bronzwaer joins PCS initiative

    Max Bronzwaer, the former treasurer of Obvion, has joined the Prime Collateralised Securities initiative (PCS) as a senior adviser.

    • 04 Dec 2018
  • Permanent TSB hangs on to risk retention in NPL disposal

    Permanent TSB announced last week that it sold a €1.3bn book of non-performing loans, Project Glenbeigh, which hit the securitization market last week in a full capital stack issuance underwritten by Citi. But though the Irish bank has sold the loans and booked the capital benefits, it is still the risk retention holder on the transaction.

    • 04 Dec 2018
  • Lennar completes sale of Rialto Capital unit

    Lennar, the largest home construction company in the US, said on Monday it had completed the sale of its affiliated real estate finance business to Connecticut-based private equity firm Stone Point Capital for $340m.

    • 03 Dec 2018
  • Dhami returns to market as Rabo syndicate boss

    Harman Dhami has joined Rabobank as head of DCM syndicate, succeeding Paul Vanner, who, after a sabbatical, will return to Rabo to further develop the bank's MTN platform.

    • 03 Dec 2018
  • UK student loan securitization steps forward despite MPs’ scepticism

    The UK’s second securitization of income-contingent student loans is poised to be priced by Tuesday, with combined demand of more than £2.5bn for the rated notes, and all tranches subject by Monday’s close.

    • 03 Dec 2018