Securitization - Article Archive


  • The power of making a fuss

    As head of BlackRock, the largest asset manager, Larry Fink’s pivot to responsible investing in recent years has been influential.

    • 16 Jan 2020
  • Credit Suisse launches all-in-one aircraft finance business

    Credit Suisse on Thursday announced the launch of SCALE Aviation, a subsidiary of the bank aiming to boost liquidity in the aircraft industry by providing capital markets financing as well as direct assistance on acquisition, trading and management of aircraft collateral.

    • 16 Jan 2020
  • New issue slow to build, but managers price burst of CLO refis and resets

    A wave of CLO refinancings and resets rolled in this week, fueled by tightening spreads on triple-A paper, with sources expecting the trend to continue alongside a slowly building new issue pipeline.

    • 16 Jan 2020
  • Markets must face up to new deadlines for Libor transition

    Banks should stop issuing loans and bonds linked to Libor by October, according to the Bank of England’s Working Group on Sterling Risk-Free Reference Rates. But the scale of the challenge facing firms, particularly in the loan market, is causing concern.

    • 16 Jan 2020
  • Oil and gas ABS market grows despite push for ESG

    Securitizations tied to oil and gas-related cash flows have emerged in recent months, despite growing support from the buy side for socially responsible investments (SRI). Though they run contrary to environmental, social and governance (ESG) principles, issuance of oil and gas royalty ABS may persist as long as the deals offer attractive yields, or until ESG investments pay a premium to brown ABS. Jennifer Kang reports.

    • 16 Jan 2020
  • People moves in brief

    Ex-Goldman's Weber joins Middle East boutique — Giancarlo turns up at Federal Housing Finance Agency — Ferdane takes over coverage job at BNP Paribas

    • 16 Jan 2020
  • Loan repricing accelerates but can CLOs keep up?

    Some of the largest issuers in the leveraged finance universe are repricing their loans, cutting 50bp or more from their margins on the back of strong market conditions and proven performance since the loans were raised. That is putting pressure on CLO managers and equity holders, whose liabilities are tightening too, but more slowly, blocking repricing of the bonds and squeezing returns, write Owen Sanderson and Tom Brown.

    • 16 Jan 2020
  • Sterling RMBS blowout as non-UK investors return to market

    Issuers priced two sterling residential mortgage-backed securities (RMBS) deals this week, with Precise Mortgage Funding 2020–1B showing an unprecedented five times coverage on senior notes and up to 12 times on the mezzanine tranches, as overseas investors return to the sterling market.

    • 16 Jan 2020
  • FHFA appoints new chair of common securitization platform

    The Federal Housing Finance Agency on Wednesday announced the appointment of J. Christopher Giancarlo as chairman of Common Securitization Solutions, which runs the technology behind the agency’s Uniform Mortgage Backed Security (UMBS) program.

    • 15 Jan 2020
  • Nouryon, Fluidra continue repricing trend in leveraged loans

    Dutch chemicals giant Nouryon is attempting an elephantine repricing of a €5.6bn loan. Nouryon is following Spanish Fluidra, a pool manufacturer, which announced a €300m repricing on Tuesday, and UK-based data company Refinitiv, which set a more favourable price for its €2.33bn loan last week.

    • 15 Jan 2020
  • Sinagpore’s ARA strikes deal to boost Venn Partners’ firepower

    ARA Asset Management, a Singapore-based asset manager focused on Reits, has bought a majority stake in Venn Partners, a secured asset specialist investing in UK and Netherlands assets, in a deal which will boost the firm’s firepower in the mortgage and CRE debt markets.

    • 15 Jan 2020
  • Laying it on FICC: trading helps Goldman and Bank of America

    Fixed income, currencies and commodities trading (FICC) has been the clear area of strength in US bank results so far when compared with the fourth quarter of 2018, particularly in rates and mortgages. Underwriting fees have also come in high, but advisory earnings have suffered.

    • 15 Jan 2020
  • UK’s PRA loosens tight conditions on risk transfer

    The UK’s bank regulator, once one of the world’s toughest, has eased some of its conditions around the synthetic risk transfer market, allowing the UK’s biggest lenders to sell balance sheet CLOs on similar terms to their European Central Bank-regulated peers.

    • 15 Jan 2020
  • NatWest provides subprime car finance facility for Provident's Moneybarn

    Provident Financial Group, the UK specialist lender, has agreed a bilateral securitization facility with NatWest Markets to fund up to £100m of vehicle finance receivables from its Moneybarn subprime brand. The facility is expected to grow to £275m over the next 18 months.

    • 15 Jan 2020
  • Corporate primary faces test in secondary spread behaviour

    European corporate bond specialists are keeping an eagle-like watch on how well new issues trade in the immediate aftermarket. Any widening could kick off a trend towards higher new issue premiums.

    • 15 Jan 2020
  • Middle market to expand as CLO investor interest grows

    The middle market segment of the CLO industry is attracting the attention of more investors this year amid enduring low yields in fixed income as higher returns on middle market paper and stronger covenants steer more traditional CLO buyers into the space.

    • 14 Jan 2020
  • Rating agencies warn on challenging year for aircraft ABS

    The aircraft securitization market is showing cracks after enjoying three consecutive record years of issuance. Major airlines have gone bankrupt, credit is deteriorating and competition intensifying, all of which signals 2020 as a year of major headwinds, rating agencies say.

    • 14 Jan 2020
  • Underwriting, fixed income revenues grow at JPM and Citi

    JP Morgan, Citi and Wells Fargo kicked off the fourth quarter earnings season for investment banks on Tuesday, showing momentum in underwriting revenues and fixed income trading, while advisory fees and equities trading stumbled.

    • 14 Jan 2020
  • Röhm buyout loan returns to syndication

    Advent’s buyout of German chemicals company’s Evonik’s acrylic unit last year is still haunting the leveraged loan market. The banks are relaunching syndication of €977m and $612m of term loan Bs, hoping that investors will find the credit more attractive this time around than when it was first syndicated.

    • 14 Jan 2020
  • Clydesdale puts Citi back in arranger seat for new Lanark RMBS

    Clydesdale Bank has mandated a consortium of banks led by Citi for its prime UK, owner-occupied RMBS Lanark 2020-1, putting Citi back in the role of arranger after two years of Bank of America leading the programme.

    • 14 Jan 2020
  • Libor, loan forgiveness cast shadow over SLABS

    Student loan ABS is facing a host of uncertainties this year, as cessation of Libor as a benchmark quickly approaches and momentum behind loan forgiveness accelerates. Strong technical factors will be offset by headline risk, weighing on spreads, according to sources.

    • 13 Jan 2020
  • Mortgage fintech LendInvest names new CEO

    Online mortgage lender LendInvest has announced that co-founder and CEO Christian Faes is handing over management of the company to Rod Lockhart, who has been named as the new chief executive.

    • 13 Jan 2020
  • Goldman brings first green CMBS deal to Europe

    Goldman Sachs is bringing River Green Finance 2020, the first European commercial mortgage-backed security (CMBS) of the year and the first in Europe to be marketed as green.

    • 13 Jan 2020
  • CrossLend to play into Capital Markets Union drive

    CrossLend’s securitization platform is designed to allow smaller firms to buy and sell debt portfolios more easily. It has been backed by Santander’s venture capital fund, which sees it as tapping into various trends in European capital markets.

    • 13 Jan 2020
  • Constellis default could drive big CLO losses, Moody's says

    Over 200 CLOs could be hit with losses as a result of a default by security and defense firm Constellis, according to Moody’s.

    • 10 Jan 2020
  • Sustainability loans need rating agencies

    The sustainability-linked loan market is a glorious mess.

    • 10 Jan 2020
  • 2020 consumer ABS starts strong as buyers pile into new deals

    The consumer ABS market is off to a strong start, with new issues coming out back to back and leaving the pipeline just as fast. The strong demand is being driven by investors' view of ABS as cheap alternative to corporates, which have rallied since the fourth quarter of last year.

    • 09 Jan 2020
  • World Bank’s cat bonds a win for all, says analyst

    Catastrophe bonds issued by the World Bank have been positive for both investors and the countries receiving protection from the securities, according to one market veteran. The organisation’s activity in insurance-linked securities has been highly innovative but has also received criticism from some quarters.

    • 09 Jan 2020
  • People moves in brief

    Funding Circle picks up former securitization syndicator — Campbell moves from HSBC to RBC — Long-time DCM banker turns up at Aramco

    • 09 Jan 2020
  • New CLO managers flock to Europe to prey on downgrades

    The European CLO market is marking the new year by bracing itself for a series of corporate downgrades. Ellington, a US CLO manager, has been sounding out the European market about bringing an ‘enhanced CLO’ in the first half of the year, which would allow for up to 50% of the portfolio to be debt rated triple-C or below, a far cry from the standard 7.5%.

    • 09 Jan 2020
  • NatWest Markets joins leveraged loan swap market

    NatWest Markets has started to offer currency swaps on leveraged loans, with its first ‘perfect asset swap’ traded in December. It joins just two other banks regularly offering the product, which is crucial for connecting the sterling leveraged finance market to the deep demand created by euro-based CLO buyers.

    • 09 Jan 2020
  • Solar ABS issuer inks $200m solar loan sale

    Residential solar lender Dividend Finance has signed a $200m residential solar loan sale with an institutional investor.

    • 09 Jan 2020
  • Barclays takes Oaktree distressed specialist

    Xavier Clement has joined Barclays’ European credit trading business, working under another former Bank of America Merrill Lynch banker.

    • 09 Jan 2020
  • Former JPM securitization syndicate banker joins Funding Circle

    James Crispin, who formerly ran JP Morgan’s securitization syndicate team for EMEA, has returned to the market as part of marketplace lender Funding Circle’s ABS and capital markets operation, following Funding Circle's switch to sponsoring its own deals last year.

    • 09 Jan 2020
  • Non-QM originator adds senior VP

    Non-qualified mortgage lender Sprout Mortgage has hired a senior vice president of correspondent lending in its Southern California office.

    • 08 Jan 2020
  • Charter Court taps BofA for first sterling RMBS of 2020

    Bank of America is arranging the first sterling RMBS of the year, Precise Mortgage Funding 2020-1B, a £432m deal from Charter Court’s securitization platform.

    • 08 Jan 2020
  • Sonic brings first whole biz securitization of the year

    Fast food chain Sonic is in the market with the first whole business securitization of 2020, with sources saying the deal is already garnering strong interest from investors eager to put new money to work in a sector that had a banner year in 2019.

    • 08 Jan 2020
  • Toyota opens gate for new China auto ABS issuance

    Toyota Motor Finance (China), a Beijing-based wholly-owned subsidiary of Toyota Motor Corp, returned to the Mainland's auto loan ABS market on Tuesday after a two year break. The Rmb4.5bn ($648m) deal was tightly priced.

    • 08 Jan 2020
  • Credit unions new source of growth for auto ABS

    With new vehicle sales in decline, auto ABS issuance is expected to see muted growth in 2020. However, the rising fraction of auto loans funded through securitizations is a silver lining for the industry, along with the potential for more credit union issuers tapping ABS in the coming year.

    • 07 Jan 2020
  • GlobalCapital US Securitization Awards 2020: Call for Nominations

    GlobalCapital is pleased to announce the call for nominations for the 2020 US Securitization Awards.

    • 07 Jan 2020
  • Rabo and JPM bring first STS securitization of 2020

    Obvion has mandated JP Morgan and Rabobank for a Dutch prime RMBS from its Storm programme, the first securitization of the year to receive the ‘simple, transparent and standardised’ (STS) designation.

    • 07 Jan 2020
  • Solar ABS players see ITC step-down as potential boost

    The solar Investment Tax Credit is set to step down and ultimately expire in two years — an expected but still disappointing development for the solar industry. Some, however, see the expiration of the ITC as a boon for solar securitization because it will do away with a complicated feature that has been a hurdle for issuers looking to market deals.

    • 06 Jan 2020
  • DBRS Morningstar appoints head of combined ABS and structured credit teams

    DBRS Morningstar has named two new heads of its combined US ABS and structured credit groups, following Morningstar's acquisition of DBRS last year.

    • 06 Jan 2020
  • Morgan Stanley brings Dutch RMBS with 99% IO loan exposure

    Morgan Stanley is bringing the first European RMBS deal of the year, the Dutch Delft 2020, a €268.3m deal backed almost entirely by interest-only loans.

    • 06 Jan 2020
  • Oodle Finance plans to be ‘repeat issuer’ as balance sheet booms

    Used car finance platform Oodle plans to be a repeat issuer in securitization, following break-neck growth that’s seen originations grow 1,000% since January 2018. The firm is now one of the UK’s largest fintech companies, with a balance sheet larger than media darling Monzo Bank — while the securitization market is becoming increasingly welcoming to fintech firms.

    • 03 Jan 2020
  • Redwood to open 2020 RMBS pipeline

    Redwood announced on Thursday that it is prepping the first RMBS transaction of the new year, a $459.3m deal backed by highly seasoned loans from its Sequoia shelf.

    • 03 Jan 2020
  • Charter Court, TSB Bank, Cerberus, Newday line up for 2020 securitizations

    The new year looks set for a strong start in the securitization market, with SPV filings suggesting that many repeat issuers are already preparing their deals across asset classes.

    • 03 Jan 2020
  • Chinese Christmas present for Aldesa bondholders

    Struggling Spanish construction group Aldesa saw a Christmas bounce in its Caa1-rated bonds, following a December 25 takeover deal and capital injection from China Railway Construction Corporation.

    • 03 Jan 2020
  • Crédit Agricole’s Loynes takes up new syndicate role

    Damien Loynes has been appointed head of syndicate for Europe, the Middle East and Africa at Crédit Agricole.

    • 03 Jan 2020
  • Credit card ABS trading dwindling as big banks hold back

    Once a benchmark ABS sector, credit card bonds experienced a dramatic decline in issuance last year, leading to big drop in trading activity that is expected to continue in 2020.

    • 02 Jan 2020
  • From CMBS to high yield Reit: hospital finance saga nears the end

    Bonds in two pre-crisis CMBS deals backed by UK hospitals, are set to be repaid following a bid from Alabama-based Medical Properties Trust for 30 properties backing the deal. The Reit will fund the deal with recently signed high yield bonds, drawing down the curtain on a saga which has seen the ill-fated 2007 CMBS restructured twice in the last five years.

    • 02 Jan 2020