Securitization - Article Archive

  • Social RMBS, and not before time

    Kensington is marketing the first ever RMBS 'social bond', which could mean investors accepting a lower spread for their mortgage bonds thanks to the label. But Kensington’s lending approach will be little changed by the new issue, raising the question of what the new issue changes.

    • 28 Jan 2021
  • CLO specialist fired by Penn Mutual

    CLO specialist at Penn Mutual Asset Management Jason Merrill was fired on January 7 after eight years with the firm, according to people familiar with the matter.

    • 28 Jan 2021
  • GreatAmerica returns with first small ticket equipment ABS of the year

    Small ticket equipment lender GreatAmerica is preparing a $630m transaction, returning to a sector still weighed down by a small business-heavy borrower base impacted by government-mandated shutdowns.

    • 28 Jan 2021
  • Kensington brings landmark ‘social RMBS’ to Europe

    Kensington Mortgages is bringing the first labelled social RMBS in Europe, a landmark transaction set to be followed by others, as the securitization market catches up to other capital markets which have more readily adopted ethical frameworks. By Tom Brown.

    • 28 Jan 2021
  • Trafigura returns to euros after long wait

    Trafigura returned to the bond market in euros this week, having been absent since 2015. The commodities trading giant is diversifying its access to funding and is also producing its debut Schuldschein issue alongside the €400m bond.

    • 28 Jan 2021
  • M&A wave to strengthen PACE securitization

    Property Assessed Clean Energy (PACE) lenders are starting to hear rumblings of consolidation, a sign of a maturing industry. The mergers and acquisitions are expected to leave a smaller number of stronger national players to roam the market.

    • 27 Jan 2021
  • CSAM hires direct lending origination head following Qatar tie-up

    Credit Suisse Asset Management (CSAM) has hired a head of origination in its direct lending group, following the firm's multi-billion push into private credit in partnership with Qatar Investment Authority.

    • 27 Jan 2021
  • NewDay sets up master issuer structure

    NewDay has streamlined its credit card ABS offering by setting up a master issuer within its existing master trust vehicle, to smooth out deal execution.

    • 27 Jan 2021
  • Dilosk brings RMBS with owner loans after resilient 2020

    Dilosk, the Irish mortgage lender, has launched its first RMBS deal that includes owner-occupier loans, branching out from the buy-to-let offering it has stuck to for the past five years.

    • 27 Jan 2021
  • Partners prices ESG CLO but spread is slow in US market

    Partners Group has returned to the US CLO market this year, pricing a rare CLO including an ESG factor screen, a trend which is sweeping international markets and which is slowly gaining traction in the US.

    • 26 Jan 2021
  • Outlook strong in container ABS after booming 2020

    Container ABS thrived last year, setting a new issuance record after two decades. Several factors are working in favour of container ABS this year as well, including increased consumption of goods and an opportunity for containers to be used in vaccine distribution.

    • 26 Jan 2021
  • ABS issuers bet investors will keep binging

    New deals are flooding into the European securitization market, especially the UK, in the last week of January, after two RMBS issues attracted unprecedented demand. Issuers are betting investors remain hungry for securitized products, despite national lockdowns.

    • 26 Jan 2021
  • SAIC-GMAC preps rapid auto ABS return

    SAIC-GMAC Automotive Finance Co is already eyeing its second auto loan securitization deal of the year, just a couple of weeks after kickstarting China’s auto ABS market for 2021.

    • 26 Jan 2021
  • Trio of banks arrange a $700m CLO for GoldenTree

    A trio of banks have arranged a $697.84m CLO priced by GoldenTree Loan Management, in its first transaction of the year.

    • 25 Jan 2021
  • Fitch stabilizes CLO ratings on new Covid scenario

    Fitch Ratings is poised to revise most of its CLO tranches outlooks from negative to stable, following a revision of its CLO coronavirus stress scenario, which is considered no longer representative of the near-term risks for CLOs.

    • 25 Jan 2021
  • New CFPB leader may have ‘deleterious’ impact on ABS market

    Rohit Chopra has been named the director of the Consumer Financial Protection Bureau, putting an end to three years of deregulation and kicking off an era of aggressive consumer protection. The ABS market is keeping a close eye on Chopra’s key plans, which include restoring the bureau’s ability to start its own investigations and establishing a new credit reporting agency.

    • 25 Jan 2021
  • Post-Brexit clarity lets European accounts dive into UK RMBS

    A flood of European accounts entering the sterling market helped boost the UK RMBS market to levels not seen since 2018, with debut issuer Lendco push Atlas Funding 2021-1 at the tightest pricing seen for an inaugural buy-to-let deal since 2008.

    • 25 Jan 2021
  • Benefit Street Partners prices last minute CLO reset

    More managers are coming into the market to take advantage of tighter spreads, and refinance or reset CLOs while new CLO issuance is expected to really take off in the next two weeks.

    • 21 Jan 2021
  • ESG securitization: why CLOs are struggling to change colour

    Green securitization is firmly on the menu as part of the European Union's push for sustainable investment. But one corner of the market is proving slow to change, despite taking baby steps in that direction.

    • 21 Jan 2021
  • Energy firms facing insolvency bank on ABS

    Securitization is emerging as the last resort for some US oil and gas companies seeking funding. Banks are deserting the equity and reserve-based lending markets they rely upon. But investors have proved eager to deploy capital in well-structured shale deals that can yield as much as 6%, meaning the ABS market may provide a lifeline for the struggling energy firms, writes Jennifer Kang.

    • 21 Jan 2021
  • Cédulas spreads to tighten as asset quality weakens

    The Spanish government’s decision to extend laws that prohibit tenant evictions is a blow for the credit strength of the country's covered bond and mortgage securitizations. But even so, supply scarcity will continue to have more influence on Cédulas valuations and spreads, which have already tightened this year and may well have further to go.

    • 21 Jan 2021
  • Moody’s rates first aircraft ABS in 10 years

    Castlelake priced the first aircraft securitization since the pandemic on Wednesday, kindling hopes of revival in a battered sector most severely hit by Covid-19. The deal is also the first aircraft transaction that Moody’s has rated in more than 10 years, following a change in rating methodology by the company.

    • 20 Jan 2021
  • CSAM prices largest CLO in two years

    Credit Suisse Asset Management (CSAM) has priced the largest CLO in the past two years, a $850m transaction with a three year reinvestment period called Madison Park Funding XLVIII.

    • 20 Jan 2021
  • Anchorage taps European CLO market after year-long break

    Anchorage Capital has mandated Goldman Sachs for its fourth European CLO, a €411.1m transaction offering eight tranches including minority equity.

    • 20 Jan 2021
  • Flender financing to set ESG precedent for lagging levfin market

    Financing for Carlyle’s purchase of Flender, a turbine gearbox manufacturer, could set a precedent for leveraged finance, which has lagged behind other debt markets in adopting instruments linked to environmental, social and governance conditions. Other issuers are sure to follow, but the market may have to solve other challenges before this can become a market standard.

    • 20 Jan 2021
  • LendingClub becomes first fintech-turned-bank

    Online lender LendingClub successfully passed all the regulatory hoops required to acquire Radius Bank, the company said on Tuesday morning, making it the first public US neobank. The deal will officially close on February 1.

    • 19 Jan 2021
  • Senior CLO debt managed by Seix slashed by 37bp in AMR auction

    Seix Investment Advisors has successfully refinanced a CLO using an applicable margin reset (AMR) auction, slashing senior debt costs by 37bp.

    • 19 Jan 2021
  • Securitization can help the UK but the government must do its part

    Securitization can play a part in the UK’s economic recovery from the coronavirus pandemic but it needs the government to keep the housing market alive.

    • 19 Jan 2021
  • Morgan Stanley brings RMBS with new yield boost feature

    Morgan Stanley is marketing an Irish re-performing RMBS, Shamrock Residential 2021-1. The deal includes a new structural feature for the European market, which juices the yield on the portfolio by diverting a portion of principal payments to this purpose.

    • 19 Jan 2021
  • Fidelity moves into private credit with team hire

    Fidelity International has hired a team of 10 private credit specialists from MeDirect Bank, in its first foray into European private debt.

    • 19 Jan 2021
  • CCB kicks off 2021 RMBS issuance with small deal

    China Construction Bank has wrapped up its first onshore RMBS outing of 2021, starting the year with a relatively small Rmb5.14bn ($793m) transaction under its Jianyuan series.

    • 19 Jan 2021
  • Lendco brings first RMBS deal after market opens

    Cabot Square Capital-backed mortgage originator Lendco has announced its first UK RMBS deal after the securitization market fully reopened on Friday for 2021.

    • 18 Jan 2021
  • Agora hires head of structured products and EMTNs

    Agora, the end-to-end debt capital markets start-up, has appointed Filippo Mattia Ginanni as its head of structured products and EMTNs.

    • 18 Jan 2021
  • Bank balance sheets could be obscured, says Coen

    The impact of coronavirus on economies has led to extraordinary help being granted to banks and their customers. But this brings the risk of problems on banks' balance sheets being hidden, according to William Coen, former secretary general of the Basel Committee on Banking Supervision.

    • 14 Jan 2021
  • People news in brief

    Natixis promotes DCM bankers — Powell quits IFAD job — NatWest Markets makes Peberdy, Donaldson and Manwaring's positions permanent

    • 14 Jan 2021
  • Student ABS lenders hit by steep declines in college enrollment

    Navient is issuing the first student loan securitization of 2021 as the sector continues to battle political headlines and a decline in student post-secondary enrollment.

    • 14 Jan 2021
  • First dual-compliant post-Brexit CLO closes

    The first CLO to comply with both diverging regimes in the UK and the EU has closed, marking a post-Brexit point of no return for the securitization market.

    • 14 Jan 2021
  • MEPs vote through harmonised NPL secondary market

    The European Parliament's Committee on Economic and Monetary Affairs (ECON) has voted through regulation to harmonise the secondary market for NPLs across Europe, pushing through a key stage of its Action Plan aimed at rebuilding the European economy post-pandemic.

    • 14 Jan 2021
  • Record year for CLO refis as managers look to revamp Covid deals

    This year looks likely to set records for CLO resets and refinancings, as managers call deals priced since the coronavirus pandemic began with wide spreads and expensive capital structures. Tightening spreads have also brought some 2018 and 2019 deals into refi or repricing territory, setting up a record year with as much as $78bn in refinancing and $115bn in resets, according to estimates from Deutsche Bank. Paola Aurisicchio reports.

    • 14 Jan 2021
  • China ABS off to strong start, BMW scores

    BMW Automotive Finance (China) Co has sold its first auto loan ABS of 2021, locking in longer-dated financing with a 14 month revolver. The deal added to a strong start for the onshore securitization market in the New Year as bond yields fell from their highs at the end of 2020, writes Addison Gong.

    • 14 Jan 2021
  • DFG becomes Vibrant Capital Partners

    DFG Investment Advisers, a $7.3bn alternative credit investment management firm, has changed its name to Vibrant Capital Partners.

    • 13 Jan 2021
  • Solar ABS outlook brightened by tax credit extension

    The US solar energy market started off the New Year with a bang, fuelled by the news that solar investment tax credits will be extended for another five years. The extension will help growth in the industry and increase investor comfort in funding renewables.

    • 13 Jan 2021
  • Together prints first sterling HY of 2021

    Together Money launched a £450m secured bond on Wednesday, the first sterling issue in the high yield market this year. The specialist mortgage lender was refinancing a bond due in 2024 and paying down some of the drawings under its Charles Street conduit securitization.

    • 13 Jan 2021
  • BMW pushes revolving period in auto ABS return

    BMW Automotive Finance (China) Co has priced the senior tranche of its Rmb8bn ($1.24bn) Bavarian Sky China 2021-1 auto loan ABS, a deal with the longest revolving period seen in recent years in the onshore market.

    • 13 Jan 2021
  • Magnetar fixed income strategist leaves for rideshare startup

    Tom Rutledge, fixed income strategist at Magnetar Capital, has left the company to join Wapanda, a startup based in New York focused on the mobility industry.

    • 12 Jan 2021
  • MJX opens up 2021 CLO mart with pre-Covid structure

    MJX Asset Management has opened up the US CLO market for the new year, with an actively managed deal with five year reinvestment period, the norm for the pre-Covid period. This paves the way for a flurry of CLOs that are expected to pop up in the coming four weeks, sources said.

    • 12 Jan 2021
  • CLO refis return as spreads tighten

    Reset and refinancing activity is returning to the European CLO market, after a year of virtual absence, as spreads tightened further in the first week of 2021, especially at the bottom of the capital structure. Partners Group is in the market with a reset of Penta 5, aiming for a sub-100bp print at the top of the capital structure.

    • 12 Jan 2021
  • CLO managers take Dutch tax gamble

    It’s been almost a year since a Dutch tax ruling sent CLO managers scurrying to Ireland to avoid a VAT charge. But with the changes coming into action in 2021, some CLO managers are leaving their vehicles in the Netherlands and taking their chances on a ruling from the supreme court.

    • 12 Jan 2021
  • CCB readies first Jianyuan deal of 2021

    China Construction Bank is set to price a Rmb5.14bn ($793m) RMBS transaction early next week, kicking off issuance under its Jianyuan series for the New Year after selling Rmb148bn of deals in 2020.

    • 12 Jan 2021
  • Moody’s starts upgrading CLO tranches

    Moody’s has started the process of upgrading CLO tranches, following an update to its methodology late last year. On Friday, the agency upgraded ratings on $311m of CLO notes across four deals.

    • 11 Jan 2021
  • TwentyFour out with first public RMBS of 2021

    TwentyFour Asset Management has announced the first public UK buy-to-let RMBS of 2021, a £337m deal called Hops Hill 2021.

    • 11 Jan 2021
  • Blue Senate committee raises risks for ABS lenders

    A blue Senate is posing a new threat to the ABS market, as regulators and lawmakers are set to turn their focus to consumer protection. Sherrod Brown, a critic of big banks and a loud consumer rights advocate, is now favourite to chair the Senate Committee on Banking, Housing and Urban Affairs, which could lead to a stream of headline risks for lenders.

    • 11 Jan 2021
  • Onex snags BlackRock portfolio manager to lead euro CLO biz

    Onex Credit Partners has appointed Conor Daly to head its European CLO franchise, building out its capacity to tap into the European securitization market in 2021.

    • 11 Jan 2021
  • PCS expands outreach team with ABS market pro

    STS third-party verifier Prime Collateralised Securities (PCS) has hired Harry Noutsos as a managing director in market outreach.

    • 11 Jan 2021
  • Home Credit innovates with consumer loan ABS

    Chinese originator Home Credit Consumer Finance Co sold a Rmb1bn ($155m) consumer loan ABS this week, opting for a different type of underlying assets compared to its past deals.

    • 08 Jan 2021
  • SAIC-GMAC seals year’s first auto ABS

    SAIC-GMAC Automotive Finance Co has sold the first auto loan ABS transaction of the year in China, printing a Rmb10bn ($1.55bn) deal this week.

    • 08 Jan 2021
  • Fintechs to rely heavily on ABS despite switch to banking

    Online lenders have sought ways to transform themselves into banks to gain regulatory clarity and forge long term customer relationships. Regardless of the status change, the securitization market will remain a vital funding source to the challenger banks, sources say.

    • 07 Jan 2021
  • People moves in brief

    Loynes extends syndicate responsibilities at Crédit Agricole — CS's equity sales head to join Citi — Flori starts at CEB funding team

    • 07 Jan 2021
  • UK RMBS market anticipates moratorium extensions

    Charities are calling for the UK government to extend the ban on evictions set to end on January 11, prompting speculation in the ABS market that mortgage moratoria will also be extended, thanks to the third lockdown now underway.

    • 07 Jan 2021
  • Ex-Mizuho risk transfer banker lands at Munich Re

    Juan-Carlos Martorell, who jointly ran the risk transfer and structured solutions group at Mizuho, and before that, Lazard, has joined Munich Re Markets to work on origination, structuring and risk distribution, according to LinkedIn.

    • 07 Jan 2021
  • Auto issuers kick-start January ABS pipeline

    Auto ABS issuers are opening up the 2021 pipeline with four deals of various size and quality, ranging from a subprime auto transaction from Arivo Acceptance to a prime loan deal from Santander. Subprime auto credit is expected to deteriorate in the next few months as loan extension programmes continue to expire.

    • 06 Jan 2021
  • Libor securitizations count down to April repo deadline

    The European securitization market needs to whittle down its remaining ‘tough Libor’ legacy contracts without relying on help from the UK regulators, said the Association for Financial Markets in Europe (Afme) on Wednesday.

    • 06 Jan 2021
  • BMW, SAIC-GMAC rev up year’s first China auto ABS deals

    BMW Automotive Finance (China) Co and SAIC-GMAC Automotive Finance Co are edging closer to sealing their first China auto loan asset-backed securitization deals of the year.

    • 06 Jan 2021
  • OCC approves LendingClub's Radius acquisition

    LendingClub has received approval to acquire Radius Bank from the Office of the Comptroller of the Currency, completing one of the last few steps left before it can become a national bank. Under the incoming Joe Biden-led US administration, more fintechs will look to gain bank status to avoid regulatory headache and hefty costs attached to being a non-bank lender.

    • 05 Jan 2021
  • Call for nominations and pitches — European Securitization Awards 2021

    GlobalCapital is pleased to invite nominations for its 2021 European Securitization Awards, seeking to recognise the most notable and innovative deals, banks and market participants of 2020. We would also welcome pitches for Overall Securitization Bank of the Year, Securitization Deal of the Year, and Private Securitization of the Year.

    • 05 Jan 2021
  • Sterling-heavy Q1 in store for securitization

    The securitization market is expecting January to be dominated by sterling issuance, after a Brexit deal was finalised on Christmas Eve, with non-bank issuers revving up for 2021. SPV filings suggest Cerberus, Davidson Kempner, Belmont Green, and Kensington are all readying deals.

    • 05 Jan 2021
  • Renovate bankruptcy 'not reflective' of PACE issues

    Renovate America, a residential property assessed clean energy lender, filed for bankruptcy after years of fighting policy changes and class action lawsuits alleging the lender failed to disclose certain fees to homeowners. The economic distress caused by Covid-19 was the spark that instigated the bankruptcy, but the legal issues were what caused the company to go under, sources said.

    • 04 Jan 2021
  • Auto ABS to lean harder on used cars as pandemic squashes sales

    Auto ABS will have to rely more heavily on loans secured by used cars, as crisis-driven behaviour changes have crushed new car sales but encouraged people to avoid public transport. Captive issuers will therefore make up a smaller proportion of issuance than in the past.

    • 04 Jan 2021