Securitization - Article Archive

  • Investcorp hires lev fin PM from GoldenTree

    Investcorp Credit Management announced on Tuesday that it has hired Brian Marshall to its US credit business.

    • 30 Jun 2020
  • Morgan Stanley acquires CLO assets from Assurant

    Morgan Stanley Investment Management has finalized its acquisition of the CLO assets of Assurant, according to CLO market sources.

    • 30 Jun 2020
  • Solar ABS appeals to investors as Covid impact muted

    Residential solar finance company Mosaic’s foray into the recently reopened asset-backed securitization market was well received by investors, reaping a multiple-times oversubscribed order book, in part thanks to data that shows the pandemic having a limited impact on solar loans.

    • 30 Jun 2020
  • UK’s non-banks deserve a saviour too

    The UK government allowed the growth of the non-bank sector after the global financial crisis, but during the coronavirus pandemic, it has left it to fend for itself.

    • 30 Jun 2020
  • MPS to transfer €8.14bn of NPEs to state asset manager

    Banca Monte dei Paschi di Siena (MPS) is transferring its non-performing exposures (NPEs), totalling €8.14bn in gross book value, to the Italian state-owned Asset Management Company (Amco).

    • 30 Jun 2020
  • Ares extends NSF securitzation covenant breach waiver

    Ares Management Corporation has agreed to extend a covenant waiver on its securitization financing for Non-Standard Finance (NSF) after initially giving the lender until June 29 to find alternative funding.

    • 30 Jun 2020
  • BMW slashes revolving period for new China ABS outing

    BMW Automotive Finance, a frequent issuer in China’s onshore auto ABS market, is gearing up for its second securitization deal of the year. This time around, the German automaker has shortened the usual one year revolving portion to just a month.

    • 30 Jun 2020
  • Warehouse formation restarts but CLO managers face challenges

    CLO managers are in talks with banks in hopes of opening new warehouses in coming weeks, paving the way for a new wave of post-Covid CLO issuance — though firms will be emerging into a markedly more difficult environment, sources say.

    • 29 Jun 2020
  • FICO launches consumer resilience score

    FICO on Monday released a new scoring tool to help lenders gauge the resilience of consumers in an economic downturn, though sources say it could take up to six months from the end of government support programs before the data can be usable as current data is obscured by a range of debt forbearance policies.

    • 29 Jun 2020
  • AlbaCore European debut breaks another record

    First time CLO issuers in Europe are seeing little to no premium on their market debuts, with AlbaCore’s market debut pricing its senior notes inside Investcorp’s 24th deal and the second issue from MacKay Shields. This follows strong debuts from CBAM Europe and BlueBay, which also printed inside or in line with more established issuers — though lower leverage may have helped.

    • 29 Jun 2020
  • Carnival shores up rescue loan at last

    Carnival Corporation, the world's largest cruise line, finally secured a dual currency leveraged loan on Friday, following its bond sale in April. The deal is expected to provide a financial lifeline for the company, which has been hard hit by the economic effects of the coronavirus pandemic.

    • 26 Jun 2020
  • Intu to enter administration as lender talks collapse

    Intu Properties, the UK shopping centre owner, is set for collapse as it looks to call in administrators following failed discussions with lenders around debt standstills. Some fear the effects could ripple across the struggling retail sector.

    • 26 Jun 2020
  • Garrison Capital and BDC Portman Ridge to merge

    Middle market investment specialist Garrison Capital is set to merge with business development company (BDC) Portman Ridge Finance Corporation.

    • 25 Jun 2020
  • Mortgage REIT Two Harbors names new CEO, CIO

    Residential mortgage REIT Two Harbors Investment Corp. has announced that Thomas Siering is stepping down as the president and CEO after over a decade with the firm, replaced by William Greenberg, former vice president and co-CIO.

    • 25 Jun 2020
  • Investors flock to cell tower ABS as esoteric pipeline builds

    Diamond Communications is returning with a $70m securitization, the second cell tower deal to appear in the market this year. The triple tranche deal is expected to price 25bp-75bp tighter than the previous deal issued by a competitor, demonstrating renewed demand for esoteric assets in June.

    • 25 Jun 2020
  • Legislators urge relief for battered CMBS market

    A group of lawmakers led by Texas Republican Van Taylor has sent a letter this week to secretary of the Treasury Steven Mnuchin and chairman of the Federal Reserve Jerome Powell, urging them to address the ‘looming crisis’ in the commercial real estate market, particularly for struggling borrowers saddled with CMBS debt.

    • 25 Jun 2020
  • Clearlake acquires CLO specialist WhiteStar

    Clearlake Capital Group has acquired a majority stake in WhiteStar Asset Management, a Dallas-based investment firm specialising in CLOs.

    • 24 Jun 2020
  • Driven Brands readies first whole biz ABS since March

    Auto repair franchise Driven Brands is preparing a 144A securitization, the first whole business transaction since the sector was shuttered in March. There is high demand for it, boosted by improving used car values and a lack of resilient esoteric ABS paper, sources said.

    • 24 Jun 2020
  • Basel disappoints with failure to back EBA’s NPL plan

    The Basel Committee has proposed tweaks to its securitization rules to ease non-performing loan sales — but it hasn’t gone as far as market participants would like, and has rowed back from proposals tabled by the European Banking Authority last October, which would have cut capital requirements much further.

    • 24 Jun 2020
  • US CLO primary hits $14bn since outbreak

    BlueMountain Capital Management, Benefit Street Partners and Western Asset Management are the latest managers to tap the CLO primary market, bringing new issuance to $14bn since the market reopened in early April.

    • 23 Jun 2020
  • Aircraft leasing industry takes trading online

    The Aviation Working Group launched the first digital aircraft equipment trading and financing platform this month, dubbed Global Aircraft Trading System (GATS). Sources say the platform will reduce time and money spent on trading aircraft, especially making it easier for lessors to swap planes in and out of their portfolios based on their needs.

    • 23 Jun 2020
  • Speciality lenders could see post-Covid shakeout

    In the wake of the coronavirus pandemic, the speciality lending landscape in Europe could see a shakeout, as financing becomes scarcer and leverage terms tougher, forcing thinly capitalised loan originators to seek extra funds or put themselves up for sale, according to a report from securitization specialists Integer Advisors.

    • 23 Jun 2020
  • Ardonagh raises largest ever unitranche in unique buyout package

    Irish insurer Ardonagh has refinanced its whole capital structure and funded the acquisitions of insurance brokers Arachas and Bravo with the largest ever unitranche loan from a group of direct lending funds, plus a $500m syndicated dollar PIK toggle note.

    • 23 Jun 2020
  • CLO managers prepare for new warehouse formation

    CLO managers are in talks with banks in hopes of opening new warehouses in the next few weeks, paving the way for post-Covid CLO issuance.

    • 22 Jun 2020
  • Most Innovative Securitization Bank of the Year – MUFG

    While innovation is frequently applauded by market participants after the fact, actually convincing investors and others to change the way they work or to adopt new systems can be extremely challenging. Arguing successfully for an update to a process that has been in place for decades is no mean feat. For this reason, MUFG’s innovation of a key part of the CLO transaction lifecycle has been recognized with the accolade of Most Innovative Securitization Bank of the Year in 2019.

    • 22 Jun 2020
  • Private SLABS, floorplan ABS only remaining beneficiaries of TALF

    Securitization spreads began their recovery before the Federal Reserve officially started financing holders of the bonds via its Term Asset-Backed Securities Loan Facility (TALF) this month, confirming for many in the market that the program is too narrow to be of great use. However, sources say that investors can still find attractive returns by tapping TALF funds for off the run sectors like private student loan and floorplan ABS.

    • 22 Jun 2020
  • Largest and lowest for GoldenTree euro CLO print

    GoldenTree achieved the lowest senior coupon and the largest post-Covid size for its new CLO on Friday, issuing a €374m deal at 155bp through lead arranger Morgan Stanley. The deal comes as leveraged loan primary supply hots up again, pushing managers to term out their warehouses and get ready to buy in size.

    • 22 Jun 2020
  • Financing alternative asset classes – Q&A with Bedford Row CEO Scott Levy

    Fixed income specialist Bedford Row Capital has found an opening in the market, providing institutional quality service to clients to arrange capital markets financing for esoteric and niche assets. Bedford Row CEO Scott Levy spoke with GlobalCapital about opportunities in alternative asset classes, the Covid-era marketplace and the firm’s work in Islamic finance.

    • 19 Jun 2020
  • Q&A with Ocorian’s James Maitland, Global Capital Markets Service Line Leader and Regional Head of Americas, Bermuda & Caribbean

    GlobalCapital speaks with Ocorian's James Maitland.

    • 19 Jun 2020
  • Vienna MTF: Taking complexity out of the listing process

    Founded in 1771 as a trading venue solely for bonds, bills of exchange and foreign currencies, Vienna Stock Exchange today is a modern market infrastructure provider for a variety of asset classes. As the spotlight gradually shifts to Vienna in different areas of debt capital markets, Matthias Szabo, Director Debt Listings, speaks to GlobalCapital about how Vienna Stock Exchange caters to the needs of a range of market participants, particularly in structured finance.

    • 19 Jun 2020
  • European CLO market adapts to the challenges of the COVID-19 era (executive summary)

    The period since March has been a turbulent time for financial markets, and the CLO sector in Europe dealt with a complex set of disruptions when the pandemic arrived this spring. From sudden and acute stress at the corporate level to an unprecedented shift in working conditions, CLO players in Europe experienced more uncertainty that hasn’t been seen since the last crisis. Yet, the market has adapted, and while the shape and size of deals may be different, CLOs in Europe are pushing ahead. BNY Mellon and GlobalCapital gathered a variety of market experts to discuss the present state and future prospects of the European CLO market.

    • 19 Jun 2020
  • Keeping Tabs — mind the banks, boomers and ESG, US housing discrimination

    Each week, Keeping Tabs brings you the very best of what we in the GlobalCapital newsroom have found most useful, interesting and informative from around the web. This week: the challenges facing European bank supervisors, attitudes to ethical investing by generation and gender, and how racial inequality rears its head in the US housing market.

    • 19 Jun 2020
  • Securitization in the Global Marketplace 2020

    Welcome to Securitization in the Global Marketplace 2020.

    • 19 Jun 2020
  • The GlobalCapital US Securitization Awards 2020: The Winners

    GlobalCapital is pleased to present the winners of its annual US Securitization Awards.

    • 19 Jun 2020
  • Securitization Technology Provider of the Year - Moody’s Analytics

    Moody’s has been collecting data on the structured finance market for almost 30 years. Today, Moody’s Analytics (sister company of credit rating agency Moody’s Investors Service) offers go-to platforms for the structured finance market and is continually developing new technology to organise and broadcast that deep data set. This has long been recognised by structured finance investors, where it has a strong client base. But over the course of 2019, the company expanded its issuer business with the purchase of the Deloitte ABS Suite software system. It has also taken great strides in enabling its data to be fed into investment bank client portals through hosted APIs, and delivering content in a modular way through i-frames. Its embedded presence across all sides of the CLO markets explains why it came top of the GlobalCapital poll for securitization technology provider of the year.

    • 19 Jun 2020
  • Middle Market CLO Deal of the Year - Golub Capital Partners CLO 45(M)

    In the GlobalCapital poll for our 2019 US Securitization Awards, Golub Capital with Morgan Stanley as arranger of the Golub CLO 45(M) deal nabbed 28% of the votes, taking first place among the four deals nominated. Golub Capital has a 15-year track record of managing CLOs and has been the leading middle market CLO issuer by volume for each of the last seven years, according to Creditflux data. This is Golub Capital’s seventh award in the past seven years for recognition in the CLO space.

    • 19 Jun 2020
  • Rating Agency Research Team of the Year - Moody’s

    The sheer amount of information, data and noise coming from the markets can be overwhelming even in the most benign periods, and investors need a reliable and impartial source to help them sort through it all. Rating agencies are a crucial conduit for this kind of analysis, and last year, the analysts at Moody’s Investors Service stood out among their peers as the most insightful, engaged, responsive and accessible research team, securing their win in GlobalCapital’s 2019 US Securitization Awards.

    • 19 Jun 2020
  • Esoteric ABS Law Firm of the Year - Morgan Lewis

    2019 was a year of huge growth for the structured finance team at Morgan Lewis. With that growth, and the strong interplay of the structured finance practice with other practice areas of the firm, Morgan Lewis was able to work on some of the most interesting esoteric ABS deals of the year. The number of lawyers working in the structured finance practice grew from 45 to 60 between mid-2018 and 2020. The bulk of the new additions arrived in 2019, when seven new lawyers joined the practice in Washington, D.C, and four joined in both New York and Chicago.

    • 19 Jun 2020
  • CMBS Law Firm of the Year - Dechert

    Dechert’s US CMBS practice stands out for the breadth of work it does, its range of clients and its cutting-edge regulatory work. This culminated in leading market shares in terms of volumes and values of deals, including being the number one counsel on deals in the CRE CLO space in 2019.

    • 19 Jun 2020
  • CMBS Deal of the Year – Freddie Mac K-F73

    The spectre of the transition from Libor to Sofr has loomed over the market for several years with many technical issues still being worked out. Many in the market feel that the whole issue will end up in court, with judges being asked to decide the one fundamental question of who will end up paying for it. Against that backdrop, it takes a brave and committed issuer to step up to the plate and very publicly do a deal that breaks that log jam. For Freddie Mac, it was market leadership of the very highest order.

    • 19 Jun 2020
  • Best Securitization Bank of the Year - Guggenheim

    Since inception in 2014, Guggenheim’s structured finance franchise has demonstrated a strong commitment to broadening the reach of securitization and capital markets financing to new issuers and new asset classes. The team, led by industry veteran Cory Wishengrad, is stocked with senior structured finance talent hired from firms up and down Wall Street. In six years, Guggenheim Securities has brought an astounding 65 new issuers to market and introduced 19 new asset classes. That track record continued in 2019 and secured the firm’s spot as GlobalCapital’s Best Securitization Bank of the Year.

    • 19 Jun 2020
  • ABS Law Firm of the Year - Kramer Levin

    Three broad themes drove Kramer Levin’s ABS practice to new heights in 2019. First, there was the ongoing adoption of clean energy deals by commercial issuers, adding to the already strong issuance from the residential side. Second, there was the rise of new asset classes including Collateralized Fund Obligations (CFOs), as private market investors sought new liquidity for their stakes in private investment funds. Third, an increase in the use of traditional private placements for ABS deals boosted the number of investor clients on the firm’s client roster. This was in addition to work in the timeshare sector and in the residential solar markets that have long been the backbone of Kramer Levin’s practice.

    • 19 Jun 2020
  • RMBS Bank of the Year - Nomura

    What Nomura has achieved in the US RMBS market since it decided to enter in 2013 is remarkable. In a little over six years, under the leadership of Gordon Sweely, head of securitized products, Americas, it has risen to number two in the league tables for the volume of deals done in 2019. It was involved in a large number of the most innovative and ground breaking transactions of the year as well. Perhaps most importantly, it has earned the respect and admiration of its clients and peers.

    • 19 Jun 2020
  • Most Innovative Securitization Deal of the Year - Newmarket Capital – CITAH 2019

    The rise of impact investing and environmental, social and governance strategies (ESG) have proved capital markets can be a driving force for positive change. Newmarket Capital, established to acquire and grow the structured solutions and impact-focused IIFC funds previously housed at Mariner Investment Group, is focused on strategies including development and infrastructure finance, socially responsible investments, and impact securitization. In partnership with Citi, the Newmarket team’s CITAH 2019 transaction securitizing affordable housing loans stands out as a prime example of accessing capital markets to address an urgent social need, earning our Most Innovative Securitization Deal of the Year for 2019.

    • 19 Jun 2020
  • Securitization Trustee of the Year - U.S. Bank

    Running a successful securitization trustee business is all about balancing the need to sustain high levels of service, while building and maintaining scale by investing in the business. It is a difficult juggling act at the best of times, but in years of exceptionally strong volume, such as 2019, it marks the best from the rest.

    • 19 Jun 2020
  • US and European CLOs: stormy evolution of an asset class

    The months since the coronavirus outbreak have proven to be an extremely turbulent time for European and US CLOs, bringing a new crisis in corporate credit, rather than in the banking sector as in 2008. Managers in both geographies are working hard to steer their deals through uncharted waters, testing new structures and deal formats. By Tom Brown and Paola Aurisicchio.

    • 18 Jun 2020
  • US mortgage players nervously eye post-Covid market

    The pandemic has been a grim reminder of the pain in mortgages, both residential and commercial, that the securitization market endured in the aftermath of the 2008 recession. As the US takes the first steps out of the shadows of the latest crisis, mortgage players are anxiously searching for clues as to what might come next. By Max Adams.

    • 18 Jun 2020
  • Shift in consumer behaviour rewrites the book on ABS risk

    The pandemic has put the brakes on a decade of economic expansion that was firmly driven by the strength of the US consumer and a rebuilt household balance sheet in the wake of the 2008 crisis. The sudden upending of consumer finances and soaring unemployment are just a foretaste of the new risks that the consumer ABS market is dealing with, and investors are in uncharted waters as the crisis moves into the summer. Jennifer Kang reports.

    • 18 Jun 2020
  • European RMBS: summer brings holiday stresses

    As the Covid-19 crisis seeps into the summer months, the issue of extended payment holidays among mortgage borrowers will be a continued source of tension. While investors digest data on mortgage affordability, sources say RMBS players will be looking to non-bank issuers for new deal flow as banks access cheaper central bank funds, writes Tom Brown.

    • 18 Jun 2020
  • A new credit cycle ushers in fresh class of European NPLs

    Just when it looked as though the European NPL tide was at last beginning to fall, 14 years on from the start of the great financial crisis, a new surge of NPLs is on the horizon. It’s time to launch the securitization lifeboats. Tom Brown reports.

    • 18 Jun 2020
  • Scramble for PPP funds leaves door open for legal trouble

    The Small Business Administration is scheduled to stop taking new applications for Paycheck Protection Program (PPP) loans in two weeks, but following the months long scramble for rescue funds, sources say legal pitfalls of the program could leave lenders on the hook for any missteps.

    • 18 Jun 2020
  • People moves in brief

    Deutsche gives Toomey position as head of new group — Gimpel leaves Citi, has fintech idea — Moelis hires Whelchel for private capital team

    • 18 Jun 2020
  • Newmarket begins fresh quest for impact in securitization

    Securitization is the most mathematical of debt markets, and synthetic securitization its most abstract department. But in a niche within that niche is a small investment firm, for which the market is all about ideas and people. Jon Hay reports.

    • 18 Jun 2020
  • Deutsche Bank's credit unit hires MD from Citigroup

    Deutsche Bank has hired Mark DeSplinter as managing director and head of US index and single-name credit default swaps (CDS), based in New York.

    • 18 Jun 2020
  • Kensington unveils RMBS with Covid-proof features

    Kensington has added features to the new deal in its flagship Finsbury Square RMBS programme to assuage investor concerns about Covid-related payment holidays, with two new reserve funds, a big boost to credit enhancement, and much of the deal placed before announcement. But recovering market appetite means securitization markets could soon revert to broad syndication.

    • 18 Jun 2020
  • Mackay Shields offers equity in new euro CLO

    MacKay Shields is offering the market minority equity in its new European CLO, in a sign that arbitrage could be improving to a level sufficient to tempt third parties to buy into a deal.

    • 18 Jun 2020
  • Pubco covenant troubles could be just the beginning

    UK pub companies with secured debt structures have moved swiftly to cut costs and secure covenant waivers, but longer-term social distancing and a slow reopening could push them into equity raises and debt restructurings, according to two specialists involved in many of the pub deals.

    • 18 Jun 2020
  • Covid turmoil heightening CLO manager dispersion

    The Covid-19 crisis continues to test the skills of CLO managers, said speakers at this week’s Leveraged Loan and CLO virtual conference hosted by IMN, with a wider dispersion being seen among managers able to quickly react to loan downgrades and surges in triple-C holdings and deal with failures of overcollateralisation (OC) tests.

    • 17 Jun 2020
  • Ex-Goldman Sachs MD joins Pretium

    Alternative investment manager Pretium Partners has hired Charlie Himmelberg as senior managing director and head of macro research.

    • 17 Jun 2020
  • Thai corp injects £17.5m to shore up UK hotel CMBS

    Thai conglomerate DTGO Corporation has injected £17.5m ($21.72m) of equity for its hotel-backed Magenta CMBS in exchange for default waivers, propping up the deal for the next six months until the Covid-19 pandemic hopefully subsides.

    • 17 Jun 2020
  • Majority of Italian NPL securitizations underperforming

    Non-performing loan (NPL) data for Q2 so far shows 57% of Italian NPL transactions are under-performing, Scope Ratings said in a report seen by GlobalCapital.

    • 17 Jun 2020
  • Dongfeng Nissan braves rising yields with auto ABS

    Chinese automaker Dongfeng Nissan sold a Rmb4bn ($564m) four tranche auto ABS transaction on Tuesday. The deal got strong demand, following a recent spike in onshore yields.

    • 17 Jun 2020
  • LGBTQIA+ job equality ruling could boost US economy

    Campaigners for equality for lesbian, gay and transgender people in the US hailed a historic victory on Monday, when the Supreme Court for the first time made it illegal throughout the country for employers to discriminate against staff on grounds of sexual or gender orientation.

    • 17 Jun 2020
  • HP returns with IT equipment securitization

    Hewlett Packard Enterprise is preparing a small ticket equipment securitization backed by loans and leases on IT equipment. With the massive shift to remote working, HP is seeing uneven demand for its products, with orders for in-home supplies increasing while the need for office equipment, such as printers, has dropped significantly.

    • 16 Jun 2020
  • Apollo hires MD for distressed investments

    Apollo Global Management has hired Rina Joshi as managing director in a new position focused on distressed investments in Apollo’s global credit business.

    • 16 Jun 2020
  • European ABS hopeful for investor influx after CMU report

    European securitization could see an influx of investors re-enter the market in light of experts' recommendations of better regulatory treatment in a Capital Markets Union (CMU) report.

    • 16 Jun 2020
  • Who eats the losses from SME loan schemes?

    Government-guaranteed loan schemes for SMEs have been rolled out across many developed economies, and now the most pressing part of the coronavirus crisis appears to be passing, policy makers are turning to the tricky question of who wears the losses. Securitization schemes could be deployed in the UK and elsewhere in Europe — but that can only tranche the risk, not make it disappear.

    • 16 Jun 2020
  • Jefferies targets European CLO primary with double raid on market leader Citi

    Jefferies has taken two more bankers from Citi’s EMEA CLO operation to join former syndicate head Laura Coady in setting up a primary CLO team and overhauling its European securitized products business.

    • 16 Jun 2020
  • Virus opens door to capital markets’ future: risk and control

    The coronavirus pandemic has catapulted capital markets forward in time. Things thought impossible have come about — above all, a sustained flow of credit through a harsh economic downturn. But are the markets heading for utopia or dystopia?

    • 15 Jun 2020
  • Catastrophe finance innovators turn attention to pandemics

    Could capital market instruments help the world prepare for or react to another pandemic? Those who have spent the last few years designing these types of tools for natural disasters have some ideas.

    • 15 Jun 2020
  • Rising demand brings CLO managers back to market

    A growing number of CLO managers are re-entering the primary market, encouraged by demand from investors facing a dearth of new supply in the second half of 2020.

    • 15 Jun 2020
  • Hertz looks to reject lease payments for cars in ABS master trust

    Hertz filed a motion to reject the leases on approximately 30% of the rental fleet included in its securitization master trust, a move that would significantly cut costs for the bankrupt car rental company. If granted, the rejection would have repercussions for subordinated bond holders and set a precedent for future ABS bankruptcies, sources say.

    • 15 Jun 2020
  • Euro securitization bolstered after market wobble

    European securitization is seeing a raft of issuance coming to market, despite wobbles in liquid markets last week, when global stock markets suffered their biggest drop since March on Thursday.

    • 15 Jun 2020
  • BlueBay euro CLO debut underlines tightening market

    BlueBay Asset Management issued its debut European CLO on Monday, printing the tightest triple-A rated notes since the market restarted after the coronavirus pandemic began, a clear sign of the improvement in credit conditions. The issuer also opted to place a full capital structure down to single-B rated notes, an approach which many managers have shied away from the since the virus struck.

    • 15 Jun 2020
  • Fair Oaks makes European CLO hire

    Fair Oaks Capital has hired structured finance professional Christos Danias to run marketing in its European CLO group.

    • 15 Jun 2020
  • OnDeck cautiously reemerges into battered small business sector

    Online small business lender OnDeck resumed originating loans this week after spending months reducing expenses, a sign that conditions are improving, but risks remain and several ABS deals are already seeing accelerated amortization.

    • 11 Jun 2020
  • NewDay call boosts ABS market confidence

    NewDay is planning to call NewDay Funding 2017-1, a move that should soothe the nerves if investors after the non-bank lender became the first since the financial crisis to leave a deal outstanding following the Covid-19 outbreak.

    • 11 Jun 2020
  • New euro warehouses, US spread rally spur hope for CLO refresh

    Some CLO managers in Europe are discussing new warehouse lines, paving the way for the CLO primary market to restart after pre-Covid deals are cleared. Counterparts in the US, meanwhile, are riding a wave of optimism that will likely take the market back to pre-pandemic pricing levels over the summer. Owen Sanderson and Paola Aurisicchio report.

    • 11 Jun 2020
  • BlueMountain preparing print and sprint CLO

    BlueMountain Capital Management is readying a "print and sprint" CLO, joining a handful of managers that have opted for a speedier deal execution in the Covid era.

    • 10 Jun 2020
  • Trio of solar ABS issuers enter primary pipeline

    Solar issuers Sunnova, Solar Mosaic and Loanpal have entered the ABS pipeline, riding the wave optimism in the market as positive headlines give hope for a speedy economic recovery.

    • 10 Jun 2020
  • Stronger CMU proposed to tackle coronavirus crisis

    A group of market participants and experts selected by the European Commission produced a series of proposals for the Capital Markets Union in a report published on Wednesday, as the coronavirus crisis gave new impetus to the project.

    • 10 Jun 2020
  • ECB-eligible paper left behind in ABS rally

    The European securitization secondary market has rallied, with primary issuance in CLOs and ABS helping to tighten spread levels. But traders are ignoring deals which may be supported by the European Central Bank (ECB), citing a lack of certainty over whether the ECB will buy.

    • 10 Jun 2020
  • Personal bankruptcy reforms could ease NPL sales

    Reforms to personal bankruptcy regimes in various countries along the lines of the US Chapter 13 code could improve non-performing loan (NPL) markets by boosting transparency and certainty, according to Charles Rusbasan, chief executive of Balbec Capital, which has just raised a new $1.2bn fund to buy NPLs where borrowers are subject to insolvency proceedings, restructuring or other forms of distress.

    • 10 Jun 2020
  • Crisis Talk – with Allison Salas, director, DWS Investment Management

    The months since the coronavirus outbreak have been a difficult period for the CLO market, as waves of loan downgrades and corporate bankruptcies create a turbulent environment for mangers to steer their deals through. Since March, the CLO space has seen various strategies employed by both managers and investors to mitigate the effects of the crisis. The pandemic has been a period of distress, but could also be a chance for players in the market to differentiate themselves and stand out, according to Allison Salas, CLO research analyst at DWS Investment Management. Salas spoke with GlobalCapital’s Max Adams on the evolution of CLO documentation, manager strategies and the implications of the Covid-19 outbreak for Libor transition.

    • 09 Jun 2020
  • Downgrades pose threat of trading restrictions in CLOs

    June opened up with another wave of negative rating actions for CLOs, with $5.7bn of the bonds placed on review for possible downgrades by Moody's, driving concerns that managers could see their ability to trade loans restricted if downgrades pile up.

    • 09 Jun 2020
  • US securitization sentiment could shatter at next sign of uncertainty

    Investor optimism in US securitization is growing as the global economy comes back to life. But the market is failing to price in the possibility that we will see another wave of Covid-19 infections and that government stimulus will eventually come to an end.

    • 09 Jun 2020
  • Morgan Stanley to reopen UK RMBS with Axis BTL book

    Morgan Stanley is set to reopen the UK RMBS market with a buy-to-let portfolio it bought from India’s Axis Bank, which is winding up its UK business in the wake of the Brexit vote.

    • 09 Jun 2020
  • Rallying loan market pushes CLO managers to print

    Despite warehouse lines that have time to run, the rally in leveraged loan markets is forcing CLO managers and equity holders to push ahead with deals, in case they are left buying assets at prices close to par with vehicles far more expensive than before the coronavirus hit.

    • 09 Jun 2020
  • Student loan securitizations could offer template for UK SME rescue

    Struggling UK small and medium-sized enterprises could see their debts sold to insurance companies or other institutional investors in a scheme similar to that used to securitize student loans in the country, according to proposals floated by finance lobby group TheCityUK in a report published on Monday.

    • 09 Jun 2020
  • ABS joins in the optimism as US reopening boosts outlook

    ABS spreads are moving towards pre-pandemic levels as investors grow optimistic over recovering unemployment numbers and the reopening of New York City and other major economic centers.

    • 08 Jun 2020
  • BlueBay expands US CLO management unit

    BlueBay Asset Management, the London-based fixed income and alternative asset manager, has taken on the US CLO management business of its parent company Royal Bank of Canada.

    • 08 Jun 2020
  • Deutsche preplaces BBVA auto ABS

    Banco Bilbao Vizcaya Argentaria (BBVA) has mandated Deutsche Bank as sole arranger and lead manager for its €1.105bn Spanish auto loan securitization, BBVA Consumer Auto 2020-1. Most of the deal has been preplaced, but €322m of senior notes are on public offer this week.

    • 08 Jun 2020
  • Illimity to securitize distressed Italian green loans

    Illimity Bank is investing up to €100m in a securitization vehicle operating in both the primary and secondary markets to purchase distressed green energy assets, the first of its kind in Italy.

    • 08 Jun 2020
  • SRI bond frameworks could come after deals

    Participants in the sustainable bond market are considering allowing issuers to publish their sustainability frameworks after issuing bonds, instead of before. This would be a major change in market practice.

    • 08 Jun 2020
  • Virgin Media takes out old notes to prep ground for O2 merger

    Virgin Media is in the market with its third high yield deal in a week, which will clear the way for its merger with O2 by redeeming existing bonds with obstructive covenants in place preventing the telecoms group from reorganising its capital structure. That means a big payday for bondholders in the notes due 2022, who will be paid the make-whole premium for early redemption.

    • 08 Jun 2020
  • Moody’s places five aircraft lessors on negative watch

    Moody’s put aircraft ABS issuers AerCap, Aircastle, ACG, Avolon and DAE on review for downgrades due to the slower than expected recovery of the travel industry. The update follows a series of negative headlines, including AerCap’s delay of aircraft deliveries and the bankruptcy of LATAM Airlines.

    • 04 Jun 2020
  • Legal disputes loom as CLOs navigate uncharted waters

    The many challenges that come with steering CLOs through an unprecedented crisis is paving the way for a new era of legal disputes among players in the sector.

    • 04 Jun 2020
  • CBAM brings first post-Covid CLO ahead of market drought

    CBAM Partners is the first manager to price a debut CLO in Europe since the Covid-19 pandemic began but market participants are worried about the lack of new warehouses opening, forecasting a drought ahead after the pre-crisis deals are termed out.

    • 04 Jun 2020
  • RMBS stalwarts signal readiness to call

    Kensington and Precise Mortgages, two of the most frequent issuers in the UK RMBS market, have signalled a willingness to call their outstanding deals, in a sign that a rallying market is taking extension risk off the table.

    • 04 Jun 2020
  • China’s securitization market gets boost as Nafmii approves ABCP

    China has opened an asset-backed commercial paper market, announcing new regulations and preparing five trial deals — three of which will be priced by the end of the week. Rebecca Feng reports.

    • 04 Jun 2020