ABS - All Articles

  • Goldman, BofA take most of mammoth mortgage bond bidlist

    Cerberus Capital Management drew strong demand for its 48-line item bidlist of mezzanine mortgage bonds on Thursday, with winning bids for most of the bonds in the nearly day-long sale going to Goldman Sachs and Bank of America, sources tell GlobalCapital.

    • 23 Oct 2020
  • Insurer to pay $338m for stake in credit manager Crescent Capital

    Canadian insurer Sun Life Financial said it has agreed to buy 51% of Crescent Capital Group for up to $338m to expand its asset management business into mezzanine debt, middle market lending, high-yield bonds and broadly syndicated loans.

    • 22 Oct 2020
  • LendingPoint closes first revolving consumer loan ABS

    Online consumer lender LendingPoint has closed its first ever revolving loan ABS backed by non prime loans in a move to expand its presence in the securitization market.

    • 22 Oct 2020
  • CLOs with AMR option reach $4.4bn with latest deal from HalseyPoint

    HalseyPoint Asset Management has priced its second CLO with the applicable margin reset (AMR) feature embedded, broadening the use of the alternative method of repricing CLO securities to over $4.4bn of CLOs since 2017.

    • 22 Oct 2020
  • Cerberus challenges market to digest flood of mezz

    Cerberus Capital Management auctioned off one of the largest ever portfolios of UK mezzanine mortgage bonds on Thursday, following a deterioration in the terms available in the ABS repo market after the Covid crisis made it uneconomic to continue to hold the deeply subordinated and risky positions.

    • 22 Oct 2020
  • Window closing for euro ABS primary

    Most euro ABS issuers are holding off on new deals until the results of upcoming US presidential election, according to sources, with about only a one month window of opportunity in November between the election and intensifying Brexit headline risk.

    • 22 Oct 2020
  • Tightening spreads revive middle market CLO issuance

    The middle market CLO segment is slowly regaining momentum, with more managers coming back to the market to take advantage of tighter spreads and a clearer picture of the financial impact of coronavirus on middle market companies.

    • 21 Oct 2020
  • Pimco, GECAS launch aircraft investment platform

    Pimco is teaming up with GE Capital Aviation Services (GECAS) to create an aircraft leasing investment platform to support up to $3bn in aircraft asset financing. Sources say it will provide a new funding option and inject liquidity into the aviation industry at a time when it is badly needed.

    • 21 Oct 2020
  • Loss mitigation loans make their way into euro CLOs

    A common feature of the US CLO market known as the loss mitigation loan has begun to make its way into European deals for the first time, continuing the trend of European managers borrowing features from US peers to deal with the effects of the Covid-19 crisis.

    • 21 Oct 2020
  • Janus Henderson launches new ABS fund

    Janus Henderson Investors has launched a new ABS fund, named the Janus Henderson Asset-Backed Fund, to be offered to institutional investors in a UCITS structure.

    • 21 Oct 2020
  • Permira digs deep to recap Lowell as NPL expectations build

    Permira and partners have injected £600m of equity into their debt collector portfolio company Lowell as part of a £2.2bn recapitalisation and refinancing effort for the troubled company, which saw its bonds heavily shorted and was widely expected to restructure its liabilities this year. The contribution is the largest equity injection from a sponsor in EMEA since the coronavirus pandemic began, and reflects what Lowell's management sees as a historic opportunity to buy NPL portfolios in the months ahead.

    • 21 Oct 2020
  • Dongfeng Nissan returns to old structure for auto ABS

    Dongfeng Nissan Auto Finance Co opted for a simpler structure for its return to China’s auto loan asset-backed securities market this week, pricing Rmb3.48bn ($521m) of senior notes on Tuesday.

    • 21 Oct 2020
  • Peer to peer lending sunsets as pandemic strains model

    The peer to peer lending model may be nearing the end of its lifecycle, signalled by LendingClub’s announcement that it would shutter its retail investor platform. With heightened regulatory risk and disappointing returns compared with securitization or whole loan sales, sources say the demise of peer to peer lending is becoming inevitable.

    • 20 Oct 2020
  • CSAM raises $265m fund for CLO equity investments

    Credit Suisse Asset Management has closed its first CLO equity focused fund, raising $265m from investors.

    • 20 Oct 2020
  • Securitization + blended finance = impact

    Investors wanting to make a social impact with their money are often caught between two pitfalls. Targeted social investments can seem too risky and off the beaten track — but safer alternatives have little additionality.

    • 20 Oct 2020
  • Cerberus launches monster mezz sale as repo terms worsen

    Cerberus Capital Management is selling one of the largest ever portfolios of UK mezzanine mortgage bonds on Thursday, following a deterioration in the terms available in the ABS repo market after the huge volatility seen in the Covid crisis. The sale comes the same week as the sale of the last tranche of mortgages by government bad bank UK Asset Resolution, which could also flood the market with mezzanine supply.

    • 20 Oct 2020
  • China streamlines credit ABS registration

    China has announced a new registration system for credit asset-backed securitization (ABS), cutting the time it will take bankers and their clients to bring new deals to the market.

    • 20 Oct 2020
  • Elmwood resets CLO as market slowly returns to pre-Covid formats

    Citi arranged the reset last week of a $503.9m CLO managed by Elmwood Asset Management, extending the deal with a new five year reinvestment period as CLOs slowly return to pre-Covid format.

    • 19 Oct 2020
  • Mercedes announces first French Silver Arrow auto ABS

    Mercedes-Benz has mandated banks led by sole arranger Société Générale for a new Silver Arrow auto ABS, the first in the shelf collateralised by French loans.

    • 19 Oct 2020
  • Goldman preps rare royalty-backed bond for Delek

    Goldman Sachs is marketing a new high yield bond for Delek Energy, backed by the royalty payments to come from the Leviathan gas field off the coast of Israel. The financing is effectively super senior to a $2.25bn bond issued in the summer, and ekes out extra debt capacity, borrowing financial technology common in the US shale industry and applying it to a new, Israeli context.

    • 19 Oct 2020
  • Intesa Sanpaolo completes €2bn SME risk transfer with EIB

    Intesa Sanpaolo has issued a €2bn risk transfer securitization to help fund Italian SMEs, boosted by an investment from the EIB and the EIF.

    • 19 Oct 2020
  • EIB boosts SRT investment commitment by €1bn

    The newly established European Guarantee Fund has greenlit a further €1bn lending for risk sharing products, allowing the EIB to continue investing in significant risk transfer (SRT) transactions to support European SMEs.

    • 16 Oct 2020
  • C-PACE lender bolsters New York team to support growing demand

    Petros PACE Finance, a commercial property-assessed clean energy lender, added Jerry Ellis to the business development team in its New York office. The move comes ahead of New York's expected approval of the C-PACE bill, enabling commercial property owners to tap PACE financing for new construction projects.

    • 15 Oct 2020
  • Santander increases mammoth German consumer ABS after demand surge

    Santander Consumer Bank has increased its debut public German consumer ABS from €1.4bn to €1.8bn after the deal saw huge demand, making it one of the largest public securitizations in Europe this year.

    • 15 Oct 2020
  • Yield hunters reawaken CLO chimera

    The quest for yield has reawakened the market for an unusual form of CLO that pools both leveraged loans and high yield bonds to form a hybrid product. The structure has reappeared despite volatility in credit markets caused by the coronavirus crisis, with issuance escalating recently and set to rise as more CLO managers try to take advantage of opportunities — not just in loans but also the $1.2tr high yield bond market, writes Paola Aurisicchio.

    • 15 Oct 2020
  • PE firm Exponent brings first UK non-conforming RMBS

    Exponent, the UK private equity fund that owns online greeting company Moonpig, the Racing Post and Big Bus Tours, is bringing its debut non-conforming UK RMBS to market.

    • 15 Oct 2020
  • Wingstop sets record for lowest yield in whole biz ABS

    Restaurant chain Wingstop has priced its latest ABS offering to yield 2.85%, making it the first ever whole business securitization to be printed with a two handle, with market watchers crediting tight ABS supply and Wingstop’s strong credit story.

    • 14 Oct 2020
  • SEC spots clouds on CLO market horizon

    November’s US election and regulatory issues are major concerns for the US CLO market, together with another possible wave of defaults in leveraged loans, the SEC has said.

    • 14 Oct 2020
  • Fixed rate US CLO repricings gather pace as election threatens supply

    Tightening spreads on triple-A rated CLO tranches has prompted a wave of refinancings and resets of fixed rate tranches over the last two weeks. Market sources expect the trend to continue as CLO managers look to save on costs.

    • 14 Oct 2020
  • Nearwater sets up third US Treasury conduit with Barclays

    Nearwater Liquid Markets has set up a third ABCP conduit which will buy only US Treasuries, repoing them with Barclays, in a move that would help the UK-based bank manage its access to high quality collateral. The new vehicle joins existing structures Nearwater has set up with BNP Paribas and with JP Morgan.

    • 14 Oct 2020
  • GAC-Sofinco prices China auto ABS return

    GAC-Sofinco priced a Rmb4bn ($564m) four-tranche auto loan asset-backed securitization (ABS) on Tuesday, venturing into the market despite rising onshore yields in a move that puts it ahead of an expected surge of supply in the last quarter of the year.

    • 14 Oct 2020
  • Balboa enters small ticket equipment ABS in cusp of recovery

    Equipment lender Balboa Capital is tapping the securitization market for the first time this year, riding the improving macro conditions and stable demand for equipment. However, sources say the small ticket sector is still performing poorly compared with other sectors of the equipment finance market.

    • 13 Oct 2020
  • Z Capital Group expands its credit team

    Z Capital Group has expanded its credit team with the addition of Egidio Carlino as director and Jordan Shrem as senior associate.

    • 13 Oct 2020
  • Better not to know: retail CMBS deal skips valuation

    Kanaal, a CMBS backed by shopping centres in the Netherlands, will skip this year’s property valuation for the largest loan, as “any valuation obtained in 2020 would not give a true representation of the market value that will be used for testing of the loan to value covenant”.

    • 13 Oct 2020
  • Navigating the new normal – Q&A with Ocorian’s Sonal Patel and Sinead McIntosh

    The last six months have been unprecedented times for the global capital markets, and securitization has not been spared the volatility. In both the US and Europe, structured finance sectors have had to navigate worsening economic conditions, widening spreads and a deeply uncertain outlook for the rest of 2020 and beyond. With the help of central bank and government support measures, the worst of the crisis may have been avoided, but securitization may also have a role to play in the coming recovery. GlobalCapital spoke with Ocorian’s Sonal Patel and Sinead McIntosh on the outlook for capital markets, the state of securitization and the prospects for 2021.

    • 13 Oct 2020
  • Spreads on triple-A US CLOs grind tighter with CVC Credit deal

    Spreads on primary triple-A rated CLO paper moved tighter with the latest deal from CVC Credit Partners, priced on Friday, as managers look to get deals done in the narrow window before the US presidential election on November 3.

    • 12 Oct 2020
  • US Congress inaction to hurt consumer ABS performance

    Consumer ABS performance is expected to slide as Congress negotiations for the next Coronavirus Aid, Relief, and Economic Security (CARES) Act remain in limbo. Sectors such as auto and credit card ABS may see more obligors previously shielded by government support falling into late stage delinquencies, sources said.

    • 12 Oct 2020
  • CLO managers switch strategies as mezz softens

    CLO managers took different approaches to deal with a primary market last week in which prices softened all the way down the capital structure from the tights of late September. One manager, PGIM, even opted not to issue single-B rated notes, using a delayed draw structure instead.

    • 12 Oct 2020
  • Sustainability disclosures delayed as regulators admit legal clash

    The European Commission has bowed to lobbying by investors and delayed compelling them to follow the detailed requirements of the Sustainable Finance Disclosure Regulation — a complex reporting task that is ill-matched with another EU rule, the Taxonomy of Sustainable Economic Activities.

    • 09 Oct 2020
  • Domivest brings second Dutch RMBS of 2020

    Cervus-backed Dutch lender Domivest is bringing its second deal of the year, Domi 2020-2, a €272m RMBS offering five tranches and listing three others as “call desk.”

    • 09 Oct 2020
  • LendingClub shutters retail investor platform in pivot to banking

    LendingClub is retiring its retail notes platform at the end of 2020 as the company continues to walk the path of becoming the first fintech-turned-bank. This marks the end of an era for the online lender, which pioneered the peer to peer model in the earliest days of marketplace lending, sources say.

    • 08 Oct 2020
  • CLOs weathering the storm but risks still loom, says SEC

    The Securities and Exchange Commission in a report published this week said the agency recognized that the CLO market has fared reasonably well through the crisis, but warned that “disruption brought on by the COVID-19 economic shock is still ongoing" and that their outlook could change.

    • 08 Oct 2020
  • EU can’t have it both ways on securitization

    The European Parliament’s proposals on the role of the securitization in fixing the European economy are set to nullify any benefit STS might grant to the synthetic market. With Europe’s economy at stake, the Parliament must decide whether ABS is a hindrance or a help.

    • 08 Oct 2020
  • Clash at top of EU over ABS threatens market revival

    The European Commission is facing pushback from the European Parliament over it turning to synthetic securitization — a market that still echoes the 2008 crisis for many legislators — to boost the ABS market and repair Europe’s economy in the aftermath of Covid-19. Tom Brown reports.

    • 08 Oct 2020
  • People news in brief

    ESM's Ruhl seconded to European Commission — Hinterkircher to retire — JP Morgan offers front office investment banking apprenticeships

    • 08 Oct 2020
  • Euro ABS tightens, but Brexit to curtail sterling issuance in near term

    European ABS continues to tighten in the primary market, but in sterling, sources say Brexit risk is likely to deter the majority of public issuance.

    • 08 Oct 2020
  • Trans-Canada invests $110m with Pretium Partners

    Trans-Canada Capital, which manages the assets of Air Canada’s pension plans, is investing $110m with Pretium Partners in search of structured and corporate credit opportunities that may emerge as a result of the market volatility in 2020.

    • 07 Oct 2020
  • Affirm brings third 2020 ABS as lender plots new growth

    Point of sale lender Affirm is returning with its third securitization of the year, becoming a more frequent securitization issuer as it enjoys steady growth and more attention from investors.

    • 07 Oct 2020
  • SG, Intesa Sanpaolo mandated for Italian salary and pension loan ABS

    ViViBanca has mandated Société Générale as arranger and Intesa Sanpaolo as joint-leads to price a €344.7m Italian consumer ABS deal backed by salary and pension assignment loans, Eridano II.

    • 07 Oct 2020
  • Permira plans to step up ESG approach in next Providus CLO

    Permira Debt Managers is looking at a new, enhanced ESG approach for its next Providus CLO, going beyond the negative screening seen so far in the market and committing to a minimum ESG score across the portfolio.

    • 07 Oct 2020
  • Bedford Row hires criminologist as ESG lead

    Kevin Haines has joined non-bank originator Bedford Row Capital in order to establish ESG processes.

    • 07 Oct 2020
  • New Mountain and Sixth Street price debut CLOs

    New Mountain Capital and Sixth Street Partners took advantage of stabilised market conditions to each price their inaugural CLOs this week.

    • 06 Oct 2020
  • Largest Greek non-bank ABS sees EIF investment

    The European Investment Fund has subscribed to €43m of an electric and hybrid car lease ABS from rental care company Avis, which has raised €130m via Cronus Finance, the largest non-bank Greek securitization issued to date.

    • 06 Oct 2020
  • Tang proposals ‘fatal’ for synthetic STS

    Dutch MEP Paul Tang has laid out proposals to limit synthetic securitization's ability to achieve the STS label, which sources said could prove fatal to the project of bringing the preferential regulatory status to the risk transfer market.

    • 06 Oct 2020
  • Blackstone-backed social housing group preps CMBS debut

    Sage Housing, the for-profit social housing landlord owned by Blackstone, is marketing its first CMBS issue through Deutsche Bank — a sharply different approach to financing from its housing association peer group, which usually issue ultra-long secured corporate bonds rather than true securitizations.

    • 06 Oct 2020
  • GAC-Sofinco prepares for auto ABS return

    GAC-Sofinco Automobile Finance Co is readying a Rmb4bn ($589m) return to the auto loan asset-backed securities market, opting for the same structure as its last thinly priced deal.

    • 06 Oct 2020
  • CLOs return to pre-Covid format, but deals slow ahead of election

    Pre-Covid CLO structures are making a gradual comeback as managers rush to market ahead of the election, with a deal from New York Life Investment Management arranged by Jefferies priced with a traditional five year reinvestment period.

    • 05 Oct 2020
  • Personal loan market to come under new scrutiny in Biden win, ABS sources say

    Marketplace lenders are pushing deals through the ABS pipeline in October, while also planning for the potential undoing of policy breakthroughs achieved in the last four years under a market-friendly Trump administration.

    • 05 Oct 2020
  • Meet the Platform: EU green finance watchdog

    The European Union’s formation of its Platform on Sustainable Finance last week marks a new phase in responsible investing. Over the past four years or so, the most influential thinkers in the market, such as the Principles for Responsible Investing, have been quietly moving back to an older interpretation of what RI means: considering the effects of investment choices on others.

    • 05 Oct 2020
  • Insider trading risk delayed ABS deals in early 2020

    Concerns around disclosure of mortgage forbearance figures and payment holidays led to deals scheduled for issuance earlier in 2020 being delayed to later in the year, as issuers feared securitization investors having access to information not widely disseminated to other investors.

    • 05 Oct 2020
  • Churchill hires middle market CLO portfolio manager

    New York-based Churchill Asset Management, an investment specialist affiliate of Nuveen, has hired Kelli Marti as managing director and CLO portfolio manager to boost the firm’s middle-market CLO business.

    • 05 Oct 2020
  • Responsible investing gains a foothold in US CLOs

    A rare environmental, social and governance (ESG) themed CLO was priced this month by Palmer Square Capital Management, setting the tone for the still-early days of ESG securitization in the US and hinting at bigger things to come for socially responsible CLOs.

    • 01 Oct 2020
  • Aircraft lessors start talks on new wave of ABS deals as aid dries up

    US government aid for the airlines expired on Thursday, kicking off sweeping job cuts at major carriers and adding stress to an already battered industry. Nonetheless, lessors are beginning talks to tap the ABS market next year with a public deal to find stable financing as existing sources dry up, writes Jennifer Kang.

    • 01 Oct 2020
  • Where are the missing CLO managers?

    As CLO spreads have rallied towards pre-Covid levels, some CLO managers have come to market with their second new issues since the pandemic first hit, taking advantage of loan prices still largely under par to ramp new issues quickly. But the new landscape is missing some of the market’s most well-known managers, and there’s a stubborn tail of pre-Covid warehouses still to shift.

    • 01 Oct 2020
  • Santander pre-places €2.2bn risk-transfer SME deal with EIB

    The European Investment Bank has taken down a €2.2bn synthetic balance sheet CLO originated by Santander CIB, executing a significant risk transfer to free up exposure to a Spanish SME portfolio.

    • 01 Oct 2020