Securitization - Article Archive

  • Amigo holds on to RBC securitization facility as deadline nears

    Amigo Holdings, a UK guarantor loan provider, has won a waiver for its £300m securitization facility with the Royal Bank of Canada (RBC), giving it until August 14 to come to an agreement on terms while the company fends off an Financial Conduct Authority probe and a public spat between the board and the company's founder.

    • 31 Jul 2020
  • Tesla returns to ABS with $780m auto lease deal

    Electric car maker Tesla is preparing its fourth retail auto lease securitization, issuing into a strong ABS market supported by high investor demand and solid auto market fundamentals in spite of the virus, sources said.

    • 30 Jul 2020
  • People moves in brief

    Palmer gets interim ECM head gig at BofA — Clarke to join JP Morgan for FIG — Paz-Galindo promoted at UBS

    • 30 Jul 2020
  • WiZink retains Portuguese credit card ABS

    WiZink Bank, which acquired Barclaycard's Portuguese operation, has retained a €505m credit card ABS deal.

    • 30 Jul 2020
  • NPL platform deal cements doValue foothold in Greece

    Italian debt servicing specialist doValue is refinancing its acquisition of a Eurobank debt platform to position itself as a dominant NPL servicer in Europe, ready for the next generation of defaulted loans.

    • 30 Jul 2020
  • Roster of CLO managers thins as Covid reshapes space

    The number of new managers entering the CLO market has dwindled in 2020 as a result of the pandemic crisis, interrupting years of growth that peaked with an average of 10 new managers a year since 2017.

    • 29 Jul 2020
  • Enova to buy small business lender OnDeck for $90m

    Small business lender OnDeck has agreed to a $90m cash and stock deal with Enova after months of struggling through the pandemic crisis. The acquisition is the first in an expected wave of consolidation, as Covid-19 tests the resilience of online lenders, sources say.

    • 29 Jul 2020
  • Mortgage holidays fail to deter UK RMBS buyers

    The level of Covid-19 payment holidays affecting specialist UK lenders in the UK and fears over the future of the country's economy have failed to dampen demand for their debt among UK RMBS buyers, with the lack of public issuance boosting interest in publicly placed deals.

    • 29 Jul 2020
  • Deutsche hires Parkhill to run ABS syndicate

    Colin Parkhill has left Lloyds Bank to join Deutsche Bank as its head of European ABS and CLO syndicate.

    • 29 Jul 2020
  • BlackRock, GoldenTree find new tights for Covid CLOs

    Spreads on new issue CLOs moved tighter as BlackRock and GoldenTree Asset Management priced senior bonds at 155bp over three month Libor, scoring the tightest triple-A pricing since March.

    • 28 Jul 2020
  • Covid benefit expiration to dent ABS market recovery

    Key government stimulus benefits are set to expire at the end of the month, and as Congress works out what the next coronavirus aid package will look like, the ABS market will see spreads fluctuate and delinquencies spike, with consumer assets to be hardest hit.

    • 28 Jul 2020
  • European CLO primary set for slowdown, says Investcorp

    The European CLO summer slowdown is set to persist into autumn as pre-Covid warehouses run dry, and CLO 3.0 structures take time to mature, according to Investcorp, which has closed two euro CLOs in 2020 to bring its total European CLO assets under management to more than €7bn.

    • 27 Jul 2020
  • Palmer Square to bring static CLOs to Europe

    Kansas-based investment manager Palmer Square Capital Management is planning to issue two static CLOs in Europe this year, broadening the reach of a strategy that the manager has had success with in the US.

    • 27 Jul 2020
  • Ag Resource Management hires former PACE CFO

    Private specialty finance company Ag Resource Management (ARM) named Rasool Alizadeh as chief financial officer and president of capital markets. Alizadeh joins from FortiFi, a growing Property Assessed Clean Energy (PACE) lender that issued its first securitization last year.

    • 27 Jul 2020
  • Commission begins legislating NPL, synthetic STS

    The European Commission has included measures to improve the regulatory framework for non-performing loan securitizations in its latest coronavirus response package, while also beginning the classification of synthetic securitizations to qualify for the ‘simple, transparent and standardised’ (STS) designation.

    • 27 Jul 2020
  • Lloyds brings Marlborough into syndicate team

    Lloyds Bank Corporate Markets has appointed Eve Marlborough as a director in its bond syndicate team following the resignation of Colin Parkhill.

    • 27 Jul 2020
  • UniCredit sells €1.5bn of NPLs

    UniCredit sold two non-performing loan (NPL) portfolios worth a combined £1.54bn over Tuesday and Wednesday this week, both through a securitization vehicle which sold notes to Barclays and Guber Banca.

    • 24 Jul 2020
  • Managers line up six new CLOs

    Managers are working on a wave of new CLOs to be priced the coming weeks, as conditions in the market continue to improve and stabilize heading into August.

    • 23 Jul 2020
  • OCC true lender clarification to establish legal certainty for online lenders

    The Office of the Comptroller of the Currency (OCC) proposed a clarification that would settle the dispute around the true lender rule, which sources say is highly likely to pass and would be a boon to the marketplace lending ABS sector.

    • 23 Jul 2020
  • Commission to unveil ‘quick fixes’ for MiFID II

    The European Commission is looking to change its rules on research unbundling and other aspects of MiFID II to ease the post-coronavirus recovery in the EU. It is also set to present tweaks to rules on securitization and prospectuses.

    • 23 Jul 2020
  • Big demand for Coventry RMBS marks master trust evolution

    Coventry Building Society (CBS) is racing to price Economic Master Issuer 2020–1, with the help of arrangers HSBC and Lloyds, to meet the huge demand for the deal, which is a hybrid between a master trust structure and a standalone RMBS — the first of its kind. The transaction, set to herald the next step in master issuer structures, is an innovation which could open the door to more financial institutions committing to long-term RMBS programmes, writes Tom Brown.

    • 23 Jul 2020
  • UK RMBS spreads retrace to pre-Covid levels in rush to market

    A flurry of UK RMBS deals have come to market in recent days, marking a comeback for the sector as triple-A spreads return to pre-Covid levels.

    • 23 Jul 2020
  • US CLO managers plot European expansion

    More US CLO managers are growing their presence in Europe, enticed by a tighter market for the bonds, growing demand from investors and a more contained Covid-19 crisis compared with the US, sources tell GlobalCapital.

    • 22 Jul 2020
  • Hertz nears temporary deal with ABS creditors

    Hertz is close to securing a deal with ABS creditors, according to bankruptcy court documents filed this week, with the bankrupt rental car company agreeing to a discounted rent payment, while liquidating a part of its fleet. Sources say the agreement will provide more protection for senior ABS bondholders and provide an element of certainty through to the end of this year.

    • 22 Jul 2020
  • Coventry mandates HSBC, Lloyds for first UK master issuer since 2008

    Coventry Building Society (CBS) has mandated HSBC and Lloyds to arrange its first issuance from Economic Master Issuer 2020-1, the first UK master trust structure set up since 2008. Books are building for the deal with initial price thoughts (IPTs) guiding the senior tranche in the low 50bps.

    • 22 Jul 2020
  • KKR raises nearly $1bn for CMBS B-piece fund

    KKR has raised a $950m fund that will invest in the lowest-rated portions of newly issued CMBS conduit transactions.

    • 21 Jul 2020
  • PACE ABS pipeline grows with deal from Ygrene

    Property Assessed Clean Energy (PACE) provider Ygrene is preparing a 144A securitization, the first deal this year to include a mix of commercial and residential PACE liens. Though originations have slowed, sources say Covid-19 has boosted demand for residential energy efficiency as people spend more time at home.

    • 21 Jul 2020
  • Bank of America offers full capital stack logistics CMBS

    Bank of America is offering a full capital stack CMBS deal backed by logistics properties, the first such transaction to come to market in Europe since the height of the pandemic in April.

    • 21 Jul 2020
  • CLOs gain momentum as managers see mid-summer pricing window

    Wellfleet Credit Partners and Carlyle Group priced new CLOs last week, adding to a growing pool of new deals that have cleared the pipeline in recent weeks as investors and managers settle into a stabilized market, according to sources.

    • 20 Jul 2020
  • ABS primary market sees highest weekly volume since February

    A dozen deals totaling $10.2bn were issued last week, the highest weekly volume since February. Investors easily absorbed the new supply, and spreads tightened particularly in non-benchmark sectors in a sign that the market has mostly recovered over the summer, sources said.

    • 20 Jul 2020
  • C-PACE firm adds vice president of business development

    Commercial Property Assessed Clean Energy (PACE) provider and ABS issuer Petros PACE has hired Connor Murch as vice president of business development, a newly created role that will help the firm take advantage of the growth of the commercial PACE market seen in recent months.

    • 20 Jul 2020
  • UK gov to review fintech sector after BoE emergency funding plans collapse

    The UK government has launched a review to find ways to boost the country’s fintech sector, a week after the Bank of England told alternative and non-bank lenders they would not receive emergency funding to support them during the pandemic.

    • 20 Jul 2020
  • Euro CLO warehouses reopen after spreads tighten

    European CLO managers have begun opening up warehouses again, according to two sources. Newly collateralised Covid-19 era CLOs are set to emerge, as the market heads into 2021 following a primary issuance drop-off as a result of the pandemic.

    • 20 Jul 2020
  • Palmer Square to expand to Europe

    Kansas-based CLO manager Palmer Square Capital Management is expanding its credit business into Europe.

    • 16 Jul 2020
  • Santander sells Silk Finance auto ABS deal

    Santander Consumer Bank has priced a fully pre-placed Portuguese auto ABS transaction from its Silk Finance programme, with the new deal becoming the first in the shelf to see the notes ‘A’ through E’ sold, in spite of the continuing pandemic crisis.

    • 16 Jul 2020
  • UK RMBS, Dutch ABS deals price in mid-summer dash

    New deals have priced in the public securitization market this week from Together Money and Qander Consumer Finance, with triple-A notes for the latter breaking through guidance as issuers take advantage of a stabilising market.

    • 16 Jul 2020
  • Healthcare deal points to ABS as critical tool in funding Covid economy

    Bankers Healthcare Group (BHG) is preparing an inaugural securitization backed by loans made to high-earning medical professionals. The deal is the first in a growing pipeline of securitizations from the healthcare industry, ranging from pharmaceutical drug royalties to venture capital ABS, as Covid-19 draws attention to securitization as a funding source for a critical part of the economy, writes Jennifer Kang.

    • 16 Jul 2020
  • More managers gravitate toward AMR repricing feature

    More CLO managers are including the applicable margin reset (AMR) feature in new deals, broadening the use of the alternative method of repricing CLO securities since it was first tested at beginning of this year.

    • 15 Jul 2020
  • Split views on UK RMBS secondary prices following stamp duty cut

    UK RMBS traders have split views on whether a stamp duty tax cut will raise the price of the bonds on the secondary market, with commentators divided on whether banks tightening their lending criteria will cancel out a house-buying incentive brought on by the tax slash on July 8.

    • 15 Jul 2020
  • Smaller non-bank lenders ‘won’t survive’ BoE rejection

    Some non-bank lenders are unlikely to survive the pandemic crisis, sources say, after the Bank of England told the industry it is not willing to provide emergency liquidity support in the wake of the Covid-19 outbreak. Non-bank institutions are having to grant the same payment relief to customers as high street banks but still have outgoing warehousing costs.

    • 15 Jul 2020
  • Afme: corona increases need for CMU

    Capital markets have provided record volumes of funding during the coronavirus pandemic, according to a new report from Afme. But a concurrent boom in bank lending shows that European companies still need broader access to equity and debt finance.

    • 15 Jul 2020
  • SoFi takes second shot at OCC bank charter

    Online lender SoFi this month filed for a bank charter with the Office of the Comptroller of the Currency (OCC) for the second time — with sources saying a more supportive OCC may increase the lender’s chances of being approved, after beginning the process three years ago.

    • 14 Jul 2020
  • First Eagle hires two for asset-based lending push

    First Eagle Alternative Credit is expanding into asset-based lending, hiring Larry Klaff and Lisa Galeota to lead the new effort.

    • 14 Jul 2020
  • Kensington weighs redemption of 2007 RMBS notes

    Kensington Mortgages is considering redeeming the notes from Kensington Mortgage Securities 2007-1, a legacy deal with the majority of the pool paid down. The issuer is considering a new deal off the back of the redemption.

    • 14 Jul 2020
  • Data for debt relief offers coronavirus NPL solution but must be handled with care

    When mortgage payment holiday schemes start to run out at the end of the year, there looms a genuine risk of a wave of defaults. Allowing investors access to borrower-level data may be the only way banks can clean up their balance sheets and maintain lending to the real economy but it is fraught with hazard and must be deftly handled.

    • 14 Jul 2020
  • Columbia Management prices CLO with AMR feature

    Columbia Management Investment Advisers has priced a CLO with the ability to reprice the bonds via applicable margin reset (AMR), an alternative method of resetting the price of the securities that was tested for the first time at the beginning of this year.

    • 13 Jul 2020
  • Supreme Court to review FHFA leadership structure

    The Supreme Court has taken up the case to decide on the constitutionality of the Federal Housing Finance Agency’s leadership structure, just a few weeks after tackling a similar case in which it ruled the Consumer Financial Protection Bureau’s structure unconstitutional.

    • 13 Jul 2020
  • Single-B tranches return to European CLOs

    European CLOs are once again being marketed to investors with single-B tranches, after widening spreads forced most managers to exclude them from recent deal structures. Hayfin Capital Management has mandated Goldman Sachs for its fourth deal in Europe, roadshowing alongside CBAM’s Montmartre Euro CLO 2020-2, with both deals offering single-B notes.

    • 13 Jul 2020
  • China's Great Wall Motors sells auto ABS with international ratings

    Tianjin Great Wall Binyin Automotive Finance, the funding arm of domestic carmaker Great Wall Motors, sealed its first internationally rated auto securitization deal on Thursday. The Rmb3.37bn ($481m) deal attracted decent demand from foreign investors.

    • 10 Jul 2020
  • Markets look for EU to take the lead on green recovery

    Momentum is growing for the economic recovery from the coronavirus pandemic to have a strong green thrust, as the UK’s mini-Budget and comments by European Central Bank president Christine Lagarde made clear this week. Capital market participants are enthusiastic about the prospect and expect it to further green the markets — but how far the drive goes will ultimately depend on politics, write Mike Turner, Jon Hay and Jasper Cox.

    • 09 Jul 2020
  • People moves in brief

    New sustainable DCM team at Citi — Deutsche picks Stergiou for new position — SMBC Nikko makes ABS trading hire

    • 09 Jul 2020
  • Corona crisis plunges UK university assets into uncertainty

    UK universities face financial peril. Having been shuttered due to the coronavirus pandemic, some risk going bust, according to the Institute for Fiscal Studies (IFS). Meanwhile, as accommodation operators grant refunds to students who are locked out and locked down, CMBS deals backed by student accommodation may survive, if sufficient numbers return to residences when the next academic year begins. Silas Brown and Tom Brown report.

    • 09 Jul 2020
  • First Help Financial debuts in rated ABS with subprime auto deal

    Private subprime auto issuer First Help Financial (FHF) is preparing a $143m securitization backed by retail automobile contracts with subprime borrowers.

    • 09 Jul 2020
  • Gordian Knot team plan return with corporate receivables venture

    Nicholas Sossidis and Stephen Partridge-Hicks, the founders of investment manager Gordian Knot and pioneers of structured investment vehicles, are planning the firm’s comeback in the securitization market, with a new venture focused on corporate receivables ready to launch.

    • 09 Jul 2020
  • Affirm breaks into ABS market with first point of sale deal

    Affirm became the first fintech point of sale lender to tap the ABS market on Wednesday, in what sources said was a crucial first step towards defining an optimal, scaleable funding structure for the emergent sector.

    • 08 Jul 2020
  • Blincoe takes over large corporates and institutions

    Royal Bank of Scotland's structured finance head Andrew Blincoe has become head of large corporates and institutions at RBS Commercial Banking, as well as keeping his existing responsibilities as structured finance head, following the departure of Laura Barlow.

    • 08 Jul 2020
  • TwentyFour rolls out Oat Hill deal as ABS market calms

    TwentyFour Asset Management has mandated Santander as arranger for Oat Hill 2, a £485m buy-to-let (BTL) RMBS deal, rolling the portfolio of Oat Hill 1 into the new deal after the coronavirus outbreak left the issuer unable to call it at the first optional redemption date (FORD).

    • 08 Jul 2020
  • BMW sails through market volatility, seals second ABS

    BMW Automotive Finance bagged Rmb8bn ($1.14bn) from a three tranche auto loan ABS transaction on Tuesday. The deal was priced tightly despite difficult market conditions in China.

    • 08 Jul 2020
  • Peter Gleysteen on the future of CLOs after coronavirus

    Peter Gleysteen is a 40-year veteran of the leveraged lending market and the CEO and founder of AGL Credit Management, which recently priced the largest CLO since the coronavirus pandemic began. He spoke with GlobalCapital about the future of the CLO market and how it is facing up to the challenges of the Covid-19 crisis.

    • 08 Jul 2020
  • Thompson & Knight adds trio of MBS attorneys

    Thompson & Knight has hired three litigation attorneys, Keith Brandofino, Maximiliano Rinaldi and David Mignardi, to bolster the commercial real estate and loan servicing business in the firm’s New York office. All three attorneys join from Kilpatrick Townsend.

    • 07 Jul 2020
  • Kayne Anderson prices new CLO

    Kayne Anderson Capital Advisors has priced a $293m CLO via JP Morgan, its first since the outbreak of the pandemic.

    • 07 Jul 2020
  • Global warming temperature scores to radically simplify green investing

    CDP, the leading platform through which companies report their carbon emissions, has become the latest organisation to launch a potentially influential system of temperature ratings, so investors can work out how much global warming each company’s plans will theoretically lead to — and hence the overall temperature of a portfolio.

    • 07 Jul 2020
  • Brace for the Covid-19 NPL wave, Houlihan Lokey warns banks

    Zam Khan is a managing director in Houlihan Lokey’s Financial Institutions Group, where he leads the portfolio and capital advisory practice. He told GlobalCapital how banks should use financial data to deal with new NPL formations, or risk being engulfed by losses over the next few months.

    • 07 Jul 2020
  • UK university halls CMBS payments deferred after student refund

    Noteholder payments have been deferred in a tranche of UK CMBS backed by university halls of residence after the accommodation operator refunded student’s their rent, putting the loan sponsor in the position of having to speculate on demand recovery following the coronavirus outbreak which saw universities shuttered.

    • 07 Jul 2020
  • Wriedt steps down as CEO of DFG to start own business

    Oliver Wriedt has stepped down from his role as CEO of DFG Investment Advisers to start his own investment firm, according to CLO market sources.

    • 06 Jul 2020
  • PPP deadline extended, but more needed to avoid credit fallout

    The US government extended the deadline for submitting applications for the Paycheck Protection Program by a month on Monday. However, only 19% of the government guaranteed small business loans are left, which may not be enough to support small businesses through to the end of the pandemic.

    • 06 Jul 2020
  • Citi preplaces BTL mortgage deal with RMBS wave incoming

    Citi has chosen to preplace Canada Square Funding 2020-1, a BTL deal pooling mortgages from originators Fleet Mortgages, Topaz Finance and Landbay Partners. A further seven UK RMBS deals are scheduled to arrive in the pre-summer window over the next month, sources said.

    • 06 Jul 2020
  • SMBC Nikko hires trader to build out European ABS market-making

    SMBC Nikko Capital Markets has hired Manish Peshawaria as head of ABS trading, with a mandate to build out the secondary business, as part of its expansion into the European securitization market.

    • 06 Jul 2020
  • Chenavari-owned Dutch consumer ABS offered

    Qander Consumer Finance, owned by hedge fund Chenavari, has announced a new transaction from its Aurorus consumer ABS shelf, with arrangers ABN Amro and Deutsche Bank helping to place the deal.

    • 03 Jul 2020
  • Film director Richard Curtis: ‘the time for tinkering is coming to an end’

    If UK pension savers knew how their money was invested, funds would be more inclined to invest exclusively in environmental, social and governance (ESG) assets. So argues Richard Curtis, the screenwriter, director and co-founder of Comic Relief. He has launched a public campaign, Make My Money Matter, to pressure UK pension funds to invest more sustainably.

    • 03 Jul 2020
  • Great Wall Motors readies first internationally rated ABS

    Tianjin Great Wall Binyin Automotive Finance is gearing up for a new Rmb3.37bn ($477m) auto loan ABS in China. For the first time, the issuer has obtained an international rating for its deal.

    • 03 Jul 2020
  • Critical hedge fund sees better way to do ESG

    Environmental, social and governance investors have been patting themselves on the back this year because their funds have tended to outperform during the coronavirus crisis. But a San Francisco hedge fund believes they are doing a poor job of shielding investors from the general risk of the stockmarket and more quantitative methods would improve the outcome.

    • 02 Jul 2020
  • After a decade, why rush GSE reform now?

    It can hardly be said that the process of releasing Fannie Mae and Freddie Mac out of government conservatorship has been rushed. The painstaking process has taken place over the course more than a decade and has consumed the Federal Housing Finance Agency (FHFA) through two presidential administrations. And yet, FHFA capital requirements proposals published this week for the government-sponsored enterprises (GSEs) may not go far enough to ensure their safety and soundness.

    • 02 Jul 2020
  • End of GSE conservatorship nears but CFPB ruling raises new questions

    The end of government control of Fannie Mae and Freddie Mac drew one step closer this week, but a US Supreme Court ruling on the leadership structure of the Consumer Financial Protection Bureau (CFPB) raises the possibility that the course could be reversed under a new government after November's election, write Max Adams and Jennifer Kang.

    • 02 Jul 2020
  • Angelo Gordon prices tightest European CLO post-covid

    Angelo Gordon has broken the record recently set by Albacore to print new post-coronavirus tights, with Bank of America leading the senior notes to land at a discount margin (DM) of 150bp.

    • 02 Jul 2020
  • Aegon hires fixed income CIO from Barings

    Aegon Asset Management named Russell Morrison as the new global chief investment officer for its $188bn fixed income investment platform as part of its effort to form a global, unified management board.

    • 02 Jul 2020
  • Banca Generali uses securitization hybrid for SME funding

    Banca Generali has used a non-profit securitization structure to channel more funds to SMEs, offering a model which be rolled out across Italy and further afield. Funds from Italian regions have anchored the riskiest 10% of the new deal, with a central government guarantee wrapping the senior 90%, which can be sold to investors.

    • 02 Jul 2020
  • GSO CLO hits tightest triple-A since start of pandemic

    Triple-A spreads on new issue CLOs hit 160bp this week, the tightest since the start of the pandemic, as GSO priced a $361m transaction arranged by BNP Paribas.

    • 01 Jul 2020
  • Trio of Italian banks shift risk with NPL SRT deal

    BPER Banca, Banco di Sardegna and Cassa di Risparmio di Bra are shifting a €343.4m non-performing loan portfolio, backed by a mix of soured secured and unsecured loans made mostly to corporate borrowers.

    • 01 Jul 2020