Securitization - Article Archive

  • Lack of CLO warehouse capital dampens leveraged loan rally

    Loans have bounced back from their steep selloff in December, but the recovery has lost some of its steam as new CLO warehouse capital to buy loans proves less abundant.

    • 31 Jan 2019
  • Why have bond investors taken a vow of silence?

    Pacific Gas & Electric has gone bankrupt with $52bn of debt, blaming forest fires that seared California during 2018. Vale, with $11bn, has been downgraded to the bottom edge of investment grade after its horrific dam burst last Friday.

    • 31 Jan 2019
  • Alpha Bank shifts non-performing SME loans

    Alpha Bank sold a €1bn gross-book value portfolio of non-performing Greek SME loans, along with €56m repossessed real estate assets, to a group of funds managed by affiliates of Apollo Global Management and International Finance Corporation in December. The bank was advised by White & Case.

    • 31 Jan 2019
  • Smurfit switches securitization for high yield

    Irish packaging company Smurfit Kappa has tapped its €600m 2.875% 2026 issue, its most recent high yield issue, on Wednesday for another €400m to pay back a big chunk of its securitization financing.

    • 31 Jan 2019
  • Clydesdale mandates BAML, BNP Paribas, Citi and Wells Fargo with new Lanark UK RMBS

    Clydesdale Bank mandated Bank of America Merrill Lynch, BNP Paribas, Citi and Wells Fargo for the first UK RMBS of the year, Lanark 2019-1.

    • 31 Jan 2019
  • loanDepot slammed by regulators for loan churning

    Ginnie Mae announced on Wednesday that it was restricting loanDepot, an online marketplace lender, from pooling Veteran Affairs mortgages into certain Ginnie securitizations due to aggressive loan churning.

    • 31 Jan 2019
  • Analysts have refi concerns for debt collector champ

    Heavyweight debt collector Intrum reflected on a very active period of investments in its fourth quarter results, as banks continue to use it when dealing with legacy assets. But analysts questioned its refinancing abilities.

    • 31 Jan 2019
  • Bondholders remain tongue-tied as climate risks worsen

    Most bond investors are making minimal effort to lobby companies to improve their performance on climate change, a new report has found. Some feel they haven’t the right to make demands; some leave it to equity colleagues; some do not see it as relevant.

    • 31 Jan 2019
  • Short CLO deals belie uncertain economic outlook

    A handful of new issue CLO deals to debut in 2019 have been structured with shorter non-call and reinvestment periods. While that may reflect a bearish economic outlook in the medium-term, some market watchers chalk it up to the sell-off in the loan market last autumn and bets on the shape of the yield curve.

    • 30 Jan 2019
  • Natixis, Banca Imi and UniCredit marketing Italian RMBS

    Natixis and others are in the market with a remarketing of Fanes 2018, an Italian RMBS backed by a static portfolio of first lien residential mortgage loans originated in northern Italy.

    • 30 Jan 2019
  • Confidence rises in GACS scheme renewal and extension to UTPs

    The guarantee on securitization of bank non-performing loans (GACS) is likely to be extended, according to market participants speaking at a non-performing loans (NPL) event by the rating agency DBRS. Traders and other sources suggest the government could extend the programme to loans classified as 'unlikely to pay' (UTP).

    • 30 Jan 2019
  • GSE privatisation will need congressional support

    A White House statement on Tuesday indicated that the executive branch will work with US Congress to privatise the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, signalling that any attempt to reform US mortgage finance will need to pass through a deadlocked legislature.

    • 29 Jan 2019
  • Trio of equipment ABS hits primary pipeline

    A trio of equipment ABS transactions hit the primary market as January ended, with CNH Industrial Capital pricing a deal on Tuesday and Volvo and GreatAmerica Financial Services readying their own offerings.

    • 29 Jan 2019
  • CIFC expands European foothold with structured credit UCITS

    US credit manager CIFC Asset Management has launched an undertakings for collective investment in transferable securities (UCITS) fund in the Republic of Ireland.

    • 29 Jan 2019
  • UK ABS amendment proposes two year solution

    Plans for how the EU's 'simple, transparent and standardised’ (STS) regulation will apply to UK securitizations after Brexit, including provisions for asset backed commercial paper (ABCP) conduits, have been laid before Parliament.

    • 29 Jan 2019
  • CLOs are the heroes we need right now

    As worries about the leveraged loan market have entered the mainstream, there’s an obvious villain: the booming CLO market, which has expanded, gobbling up whatever the stretched lev loan mart can feed it. But not all heroes wear capes. Despite being a three-letter acronym, these vehicles could be the heroes we need.

    • 29 Jan 2019
  • BAML slashes 2019 CLO refi, reset forecasts

    Analysts from Bank of America Merrill Lynch said on Monday that they were cutting their forecasts for CLO refinancing volumes by 45% as wider spreads in new issue markets may potentially make refinancing less attractive for callable deals this year.

    • 28 Jan 2019
  • Clifden returns to restructure mortgage deals

    Greencoat Investments — an affiliate of hedge fund Clifden IOM No.1 — is purchasing outstanding notes on Business Mortgage Finance transactions (BUMF) with the intent of restructuring the deal, according to sources that spoke with GlobalCapital on Monday.

    • 28 Jan 2019
  • Prosper sells first PMIT consumer loan deal of 2019

    Marketplace lender Prosper sold its first unsecured consumer loan ABS deal on Thursday, the sixth offering from its long running PMIT shelf and the smallest from the issuer to date.

    • 28 Jan 2019
  • Euro CLO pipeline accelerates after first 2019 deal priced

    Credit Suisse Asset Management priced its first euro CLO at the end of last week, placing the triple-A bonds at 108bps over three month Euribor as CLO investors remain largely undeterred by regulatory concerns. This week, GSO is expected to price its Crosthwaite Park CLO by Friday, with the manager floating initial price thoughts at the start of the week.

    • 28 Jan 2019
  • US Bancorp launches ABS lending busines

    US Bancorp announced on Thursday that it is launching an ABS lending business to provide borrowers with non-recourse debt secured by consumer and commercial cash flows.

    • 24 Jan 2019
  • US CLO primary market reopens

    The US CLO primary market has officially reopened after a dearth of activity to start the new year, and while the market has not retraced all of late autumn’s spread widening, sources tell GlobalCapital that a burgeoning pipeline of deals speaks to steady investor demand up and down the capital stack.

    • 24 Jan 2019
  • UK ABS secondary sidesteps rent control worries

    Concerns were voiced by the National Landlord Association on Thursday following an announcement of new rent controls by London Mayor Sadiq Khan meant to restrict renting prices on buy-to-let (BTL) mortgages in London, many of which back UK securitizations.

    • 24 Jan 2019
  • Pepper RMBS to be priced with euro tranche

    Australian lender Pepper Money this week started marketing an RMBS that will offer investors a euro-denominated tranche and a short-dated dollar tranche, as the issuer looks ready to be the first to jump into the European securitization market this year.

    • 24 Jan 2019
  • Mosaic returns with fifth rated solar ABS

    Solar Mosaic, a California-based residential solar finance company, is returning to market with a $259.7m deal, its fifth ABS offering so far.

    • 23 Jan 2019
  • Bulging Euro CLO pipeline pushes past new regs

    GSO has entered the market with a euro CLO alongside Credit Suisse Asset Management's Cadogan Square XIII deal, which is looking at initial price thoughts of 105bp-110bp.

    • 23 Jan 2019
  • US CLO market downplays Japanese risk retention fears

    Risk retention rules spelt out last week by Japan’s Financial Services Agency have become a key regulatory concern for CLO managers that sell triple-A debt to Japanese banks, although a consensus is building among US players that exemptions for open market CLOs will be approved by regulators.

    • 22 Jan 2019
  • GlobalCapital US Securitization Awards: Call for Nominations

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

    • 22 Jan 2019
  • Ygrene sells first 2019 PACE deal as policy headwinds persist

    Ygrene Energy Fund, a California-based Property Assessed Clean Energy (PACE) finance company, has sold the first deal of the year from its GoodGreen ABS shelf.

    • 22 Jan 2019
  • BAML sells securitization equity for Charter Court

    Charter Court Financial Services intends to sell its residual economic interest in the Precise Mortgage Funding 2018–1B and Precise Mortgage Funding 2018–2B securitizations to Merrill Lynch International for £6m ($7.84m).

    • 22 Jan 2019
  • M&G appoints new ABS portfolio manager

    M&G Investments has hired Vincent Charles-Gervais as a portfolio manager within its ABS team.

    • 22 Jan 2019
  • Carlyle Group and BNPP marketing CLO amidst arbitrage drop

    Carlyle Group and BNPP are marketing a two-year non-conforming Euro CLO, at a time when CLO arbitrage is its worst level since 2013.

    • 22 Jan 2019
  • Better tone in ABS market after big list prints tighter

    Secondary securitization activity has accelerated since the first weeks of January, with strong prints on a large list of mainly euro-denominated auto ABS. Several market participants note that the ABS market is becoming less risk-averse as the year goes on.

    • 21 Jan 2019
  • UK RMBS 'mortgage prisoners' scheduled for release

    More than 60 UK RMBS securitisations containing pre-crisis assets will see credit improvements, according to Moody’s, as the UK's Financial Conduct Authority (FCA) has promised to relax mortgage affordability rules for “trapped” borrowers. The change in approach will affect more than £29bn ($37.87bn) of outstanding bonds.

    • 21 Jan 2019
  • GoldenTree CLO gets a boost as investor confidence trickles back

    Signs of renewed confidence in the US CLO market are showing this week, with GoldenTree Asset Management bumping up the size of its first deal since April by $200m.

    • 18 Jan 2019
  • Amid housing shortage, millennials engage in riskier FHA borrowing

    Based on a recent study released by data provider Ellie Mae on homeownership trends in the US, millennial borrowers are taking out larger and larger FHA mortgages as low housing inventories continue to push prices upward.

    • 17 Jan 2019
  • Leveraged loan worries dominate US bank earnings

    End of year earnings calls at the US banks all featured anxieties about the exposure of the firms to a leveraged finance market that was looking increasingly stretched through year end, with some bridges said to be hung and discounts offered on risk positions.

    • 17 Jan 2019
  • Climate activists boo Larry Fink’s CEO letter

    Larry Fink, chief executive of BlackRock, became one of the most namechecked people in the responsible investing movement in 2018 when he affirmed that “Companies must benefit all of their stakeholders, including shareholders, employees, customers and the communities in which they operate.”

    • 17 Jan 2019
  • Italian banks suffer as ECB cracks down on NPL stock

    The European Central Bank has slapped the institutions under its supervision with deadlines for dealing with their stocks of non-performing loans, giving the weakest lenders up to 2027 to raise their coverage levels to 100%. The revelation hit Italian banks hard in the market this week, though some commentators said that the new recommendations should hardly have come as a shock to investors.

    • 17 Jan 2019
  • Japan's FSA weighs options for investors to buy US and EU ABS

    Japanese regulators will implement risk retention rules for securitization at the end of March. The Financial Services Agency is leaning towards the 'eligible vertical interest' model as a solution to allow investors to access both European and US markets.

    • 17 Jan 2019
  • When a bad deal leads to no deal, no one wins

    Maintaining confidence in the system relies on trust that leaders — those selected for their competence and character to set the course for the rest of us — are well informed, able to communicate with others at their level and take decisions that serve the interests of those they lead.

    • 17 Jan 2019
  • Barclays marketing new CSAM CLO

    Barclays is on the road this week with a CLO that it is looking to sell this quarter for Credit Suisse Asset Management.

    • 17 Jan 2019
  • Axiom: NPEs down overall, but worst performers are surprising

    EU banks have drastically reduced their non-performing exposures over the past year, and the weakest lenders in terms of provisioning shortfalls are not from Europe’s periphery, according to research by Axiom Alternative Investments. However, two banks named as some of the worst performers disagreed with this label.

    • 17 Jan 2019
  • Wellfleet promotes new CLO managers

    Greenwich, Connecticut based Wellfleet Credit Partners, the performing credit business of Littlejohn & Co, has promoted Dennis Talley and Scott McKay to managing director with a focus on CLOs.

    • 17 Jan 2019
  • Aircraft ABS performance to weaken in 2019

    Aviation ABS performance will decline in 2019, hit by by rising credit concerns, late cycle behaviour and stiff competition between a handful of new, smaller lenders.

    • 17 Jan 2019
  • Kensington Mortgages renews warehouse line

    Kensington Mortgages has renewed a warehouse line of credit with BNP Paribas and Citibank, giving it the ability to fund nearly £1bn worth of new originations.

    • 16 Jan 2019
  • CMBS industry eyes rough road ahead in 2019

    While capital markets recover from November and December’s year-end volatility and investors are learning to look on the bright side again, commercial real estate financiers meeting at the annual CREFC conference in Miami this week were dealing with the difficult reality of a potentially overvalued market and more competition to close deals.

    • 15 Jan 2019
  • SoFi preps first SLABS deal of 2019

    Marketplace lender SoFi is readying its first student loan securitization of the year.

    • 15 Jan 2019
  • Japanese regulators looking at EU-style ABS rules

    Japanese regulators are looking to implement risk retention requirements for investors that closely mirror European-style regulation, bringing them more in line with Europe but potentially distancing Japanese investors from US ABS markets.

    • 15 Jan 2019
  • PG&E’s descent is a climate alarm bell for corporates

    Californian utility firm PG&E’s impending bankruptcy filing, on the back of unprecedented liabilities for wildfire damage in the state, is a warning sign that investors may find it impossible to predict how the climate crisis will threaten companies, both quickly and slowly.

    • 15 Jan 2019
  • Consumer ABS issuance heats up after slow start

    Consumer ABS issuance is expected to accelerate this week after a slow start in January, with a number of deals lining up on Monday and investors waiting eagerly to put money to work in the new year.

    • 14 Jan 2019
  • SocGen closes first Ghanaian cross-currency TRS

    Société Générale has entered into a $40m cross currency total return swap with Fidelity Bank, the Ghanaian lender, in a trade that participants hope will unlock Ghanian cedi-denominated securities as collateral for further dollar funding.

    • 14 Jan 2019
  • Agarwal on banking: ‘I loved the work we did’

    Capital markets veteran Sandeep Agarwal speaks to GlobalCapital about his decision to leave the sector after a period of more than 20 years, reflecting on what he describes as the "best learning experience" he could have asked for following the financial crisis. As he prepares for a new challenge outside of banking, Agarwal warns that the industry is not "out of the woods yet".

    • 14 Jan 2019
  • Philippines looks to issue cat bond

    The Philippines is preparing a sovereign catastrophe bond, the World Bank said on Monday. The imperilled country could be the next to use the instrument as insurance against natural disasters.

    • 14 Jan 2019
  • New UK RMBS issuance to be sold to US clients

    A handful of prime UK RMBS deals are rumoured to be in the pipeline, along with several prime euro transactions, with issuers said to be targeting US investors while they wait for the fog to clear around new ‘simple, transparent, standardised’ (STS) rules.

    • 14 Jan 2019
  • Mayer Brown adds CLO partner to London finance practice

    Mayer Brown has hired Dasha Sobornova as partner in its banking and finance practice in London.

    • 14 Jan 2019
  • Alantra taps Fadel as managing director

    James Fadel has been hired as managing director at global investment bank Alantra and will join the firm's London office.

    • 14 Jan 2019
  • James Fadel hired as managing director at Alantra

    James Fadel has been hired as managing director at global investment bank Alantra and will join the London office in Atlantra’s UK branch.

    • 14 Jan 2019
  • Japanese buyers to widen bids for US triple-A CLOs

    Large Japanese buyers of US triple-A CLO debt are set to move their bids for the bonds wider as managers line up the first US deals of 2019, said sources this week.

    • 14 Jan 2019
  • ECB tells Monte dei Paschi to beef up on NPL coverage

    The European Central Bank has asked Banca Monte dei Paschi di Siena to raise the coverage levels for its stock of non-performing loans, leading to fears in the market about the Italian lender’s ability to meet its supervisory capital ratios.

    • 14 Jan 2019
  • Auto issuers bring $5bn in new paper as 2019 gets underway

    Auto ABS issuers are moving nearly $5bn in new deals through the pipeline to kick of the new year, with GM Financial pricing the first deal of 2019.

    • 11 Jan 2019
  • Goldman slashes rates forecast as US slowdown looms

    Researchers from Goldman Sachs said on Wednesday that the bank was scaling back its projected targets for year end mortgage and 10 year Treasury rates as indications of a slowing US economy and Federal Reserve dovishness suggest a gentler path upwards for interest rates.

    • 10 Jan 2019
  • US will try to stop MDBs securitizing

    Hopes of a thriving new market for securitizations by multilateral development banks hit a hole in the road in December, when the US Treasury said it disapproved of them and would seek to stop them.

    • 10 Jan 2019
  • Bashing World Bank damages US interests

    That US president Donald Trump’s administration should pick a fight with the World Bank — and the bevy of other multilateral development banks the US owns shares in — is no surprise.

    • 10 Jan 2019
  • Legal experts butt heads on STS application for US issuers

    Law firms are struggling to see eye to eye on how to interpret “simple, transparent and standardised” (STS) transparency requirements for US entities issuing in Europe.

    • 10 Jan 2019
  • Ginnie Mae chief abruptly resigns, joins SFIG as CEO

    Michael Bright, acting director of Ginnie Mae, has resigned his position and will take up the reins as president and CEO of the Structured Finance Industry Group, effective this month.

    • 10 Jan 2019
  • Moody’s mulls rule switch to boost supranational securitizations

    Moody’s is looking at amending its rating approach for multilateral development banks and supranationals in the wake of last year’s groundbreaking African Development Bank ‘Room2Run’ risk transfer deal, proposing explicit ratings credit for ‘credit protection features’ for the first time.

    • 10 Jan 2019
  • Carige's last trade: troubled Italian bank privately placed securitization

    Banca Carige raised private funding from an institutional investor in May last year through the sale of senior notes in a securitization, perhaps the last time the troubled Italian bank, now facing state recapitalisation, succeeded in raising external funding.

    • 10 Jan 2019
  • Fitch joins ESG caravan with relevance scores

    Fitch Ratings has remedied its long lack of a visible response to the rise of environmental, social and governance investing by launching a set of ESG relevance scores.

    • 10 Jan 2019
  • CMBS market skittish heading into Miami confab

    The US commercial mortgage-backed security (CMBS) market is moving cautiously into 2019, and fears of widening spreads and shrinking market share compared to other forms of real estate debt capital are sure to be on the minds of attendees at the annual CRE Finance Council (CREFC) industry event in Miami next week.

    • 09 Jan 2019
  • KKR to shrink leveraged loan exposure in 2019

    Anticipating further deterioration in US corporate credit, KKR said it will reallocate all of its dedicated leveraged loan capital this year to an opportunistic fund that will span across corporate credit sectors.

    • 09 Jan 2019
  • Ready, steady, wait — STS hobbles securitization start

    'Simple, transparent, standardised' (STS) ABS deals are unlikely to be certifiable before the end of January according to third-party verifier Prime Collateralised Securities (PCS). A debate is ongoing within the European Commission over homogeneity requirements and to what degree the final regulatory technical standards (RTS) will differ from previous templates.

    • 09 Jan 2019
  • Q&A with Ginnie Mae chief Michael Bright

    Ginnie Mae, which oversees more than $2tr of US residential mortgages, has grappled with a prolonged cycle of ‘loan churning’ of Veterans Affairs loans, the steady unwind of the Federal Reserve’s balance sheet and a challenging mortgage finance market in the past year. GlobalCapital’s Alexander Saeedy connected with Ginnie Mae COO Michael Bright to discuss what lies ahead for the agency in 2019.

    • 08 Jan 2019
  • US card issuers tighten underwriting as delinquencies rise

    Delinquency rates of 30 or more days for US credit cards have been on the rise over the past three years, despite a healthy labor market, driving card issuers to tighten their underwriting criteria even as the economy continues to accelerate.

    • 08 Jan 2019
  • Shawbrook contemplates RMBS debut

    Shawbrook, a UK challenger bank advised by Bank of America Merrill Lynch and Goldman Sachs during its 2017 takeover by private equity, is waiting in the wings with a debut RMBS offering.

    • 08 Jan 2019
  • FMS-W plots Sofr-linked ABCP

    FMS Wertmanagement is planning to issue its first Sofr-linked issue in 2019, which will be sold to the money markets in the form of asset-backed commercial paper.

    • 08 Jan 2019
  • CLO buyers hope for new year’s magic as loans rebound

    As the leveraged loan market recovers following a pronounced selloff at the end of 2018, some CLO investors are eyeing a potential reboot to the flatlined CLO market if sentiment in leveraged loans remains upbeat.

    • 07 Jan 2019
  • Hercules preps venture debt-backed ABS deal

    Hercules Capital, a firm specializing in making loans to venture capital backed companies in the life sciences sector, is preparing a new ABS offering.

    • 07 Jan 2019
  • Declining mortgage rates spell prepayment risk for recent RMBS

    Since early November, US interest rates have slipped from multi-year highs as the benchmark 10-year Treasury fell to around 2.6%. The flattening has upended most investors’ views on fixed income performance into 2019, and in particular is drawing out concerns about a reopening of the refinancing window for mortgages originated last year.

    • 07 Jan 2019
  • Reprieve for conduit banks avoids large-scale liquidity draw

    A last-ditch reprieve for the asset-backed commercial paper market late last year saved European banks running securitization conduits from a huge drawing on their liquidity reserves — but details of the fix are still being hashed out.

    • 07 Jan 2019
  • Deutsche DCM director joins Blackstone Tactical Opportunities

    A former director in Deutsche’s insurance solutions business has joined Blackstone’s Tactical Opportunities team as a principal.

    • 07 Jan 2019
  • Redwood to open 2019 RMBS market

    Redwood Trust is preparing to issue the first private label RMBS deal of the new year.

    • 03 Jan 2019
  • Catastrophes wear out ILS investors

    A year and a half of costly insurance losses from the disasters such as the 2017 US hurricanes and last year’s wildfires in California are grinding down investors in catastrophe bonds and other insurance-linked securities. That raises questions over the direction of a market that has experienced consistent growth up to now, writes Jasper Cox.

    • 03 Jan 2019
  • UK banks squeeze out rush of risk transfer trades before year-end

    UK banks printed a flurry of risk transfer securitizations just before the end of last year, hedging portfolios of corporate credit and commercial real estate totalling more than $8.5bn-equivalent.

    • 03 Jan 2019
  • New York law firm taps CLO expert for securitization practice

    Sidley Austin has hired Steven Koyler to join the firm’s global finance practice as a partner in New York.

    • 02 Jan 2019
  • Italian NPL servicer doBank expands European reach with Altamira acquisition

    Italian NPL servicing specialist doBank on Wednesday announced a deal to buy 85% of Altamira Asset Management to push into other potentially lucrative southern European markets, adding €55bn in assets under management to its existing €140bn.

    • 02 Jan 2019
  • Barclays establishes new ABCP programme as EU regs bite

    Barclays launched a new asset-backed commercial paper conduit, Sunderland Receivables, receiving a prime rating for the new vehicle on December 24, part of a broader overhaul of the bank’s asset finance operations which has been running for the past year — and a canny move to get ahead of European regulation.

    • 02 Jan 2019