ABS - All Articles

  • CLO market set for pause to digest oversupply

    The CLO market is expected to take a pause after the oversupply of the first months of the year, allowing investors to digest the unprecedented volume of new issue, refi and reset, and giving much needed breathing space to market participants. Managers, sources say, are in less of a rush to lock in tight spreads, as the market is considered healthy and more stable in the medium term.

    • 21 Apr 2021
  • FAT Brands prices whole biz ABS to fund acquisitions

    Restaurant franchise operator FAT Brands priced a private $144m whole business securitization, its latest move to secure additional capital for its acquisition growth strategy. The transaction closed a day early due to oversubscription, according to sources familiar with the matter.

    • 21 Apr 2021
  • Piraeus covers capital raise to clean up NPL portfolio

    Piraeus Financial Holdings, the Greek holding company which owns Piraeus Bank, has launched a capital raise to give it the firepower needed to offload non-performing loans and has already secured enough demand on one morning of book-building to cover the deal.

    • 21 Apr 2021
  • Cooke to join Santander as securitization head

    Matt Cooke is joining Santander as head of securitization later this year, GlobalCapital understands, following his resignation from Lloyds where he held the same role.

    • 21 Apr 2021
  • UCI brings Spanish RMBS in hot market

    UCI is bringing a Spanish RMBS, its second since a recent break from the market which ended in 2020, issuing a smaller deal this time but with a lower LTV portfolio. BNP Paribas and Santander are arranging the deal.

    • 21 Apr 2021
  • Affirm makes quick comeback to ABS with non-revolver

    Affirm has returned with the second securitization of 2021, establishing itself as a prolific repeat issuer in less than a year since its debut. A growing number of market players are paying closer attention to Affirm for its speedy execution and are anticipating that more buy-now pay-later lenders will emerge in the ABS market.

    • 20 Apr 2021
  • CLO equity distributions back to pre-Covid levels, BofA said

    The CLO market is putting the pandemic behind it, with equity distributions at almost pre-Covid time and structures back to the standard of early 2020.

    • 20 Apr 2021
  • Divergence on ABS is healthy, just don't touch STS

    As the securitization regimes in the UK and the EU begin to diverge, the changes made so far will do little long-term damage and there are even potential benefits, as long as rule makers on both sides of the English Channel stay true to the 'simple, transparent and standardised' (STS) principle.

    • 20 Apr 2021
  • Israeli sponsor supports UK hotel CMBS as lockdown exit nears

    Israeli investor Amir Dayan is injecting more financing into a hotel-backed CMBS made up of 17 Holiday Inn and three Crowne Plaza hotels distributed across the UK, as the government toys with opening up the country’s tourism sector.

    • 20 Apr 2021
  • Cooke leaves Lloyds securitized products group

    Matt Cooke, head of the securitized products group at Lloyds, has resigned from the bank, GlobalCapital understands.

    • 20 Apr 2021
  • Germany, Belgium join battle over Taxonomy credibility as it goes to wire

    Hectic negotiations and lobbying are going on at the European Commission about the Taxonomy of Sustainable Economic Activities, in the last day before it is due to publish the detailed rules. Key countries including Germany have changed their positions, GlobalCapital can reveal, while supporters of gas and nuclear power are digging in. Battlelines are now being drawn over the timing.

    • 20 Apr 2021
  • BlueBay hires CLO portfolio manager from Challenger

    BlueBay Asset Management has hired a portfolio manager to its structured credit and CLO management team, bringing in Tom Mowl from his previous position as senior portfolio manager at Challenger Investment Partners.

    • 20 Apr 2021
  • BMW opts for simple structure for new auto lease ABN

    China-based Herald International Financial Leasing Co, a unit of BMW Group, has returned to the onshore securitization market. It switched to a straightforward two-tranche structure for the Rmb3bn ($461m) auto lease asset backed notes (ABN), pricing the senior tranche at a competitive spread.

    • 20 Apr 2021
  • BHG preps second healthcare loan ABS

    Bankers Healthcare Group (BHG) is returning with its second securitization backed by loans made to high-earning medical professionals. The healthcare consumer lender is expected to see its newest deal well subscribed, considering its popularity last year and its relatively high yield ranging from 2% to 5%.

    • 19 Apr 2021
  • Shenkman returns to CLO mart after 2020 absence

    Shenkman Capital has returned to the CLO market after skipping issuance during 2020, pricing a deal named Romark CLO IV through its affiliate Romark Credit Advisors.

    • 19 Apr 2021
  • Banca Progetto adds to Italian CQS securitization flow

    Banca Progetto, an online bank backed by Oaktree Capital, is bringing an Italian consumer transaction securitizing payroll-deductible loans, with the majority originated slightly before or during the pandemic. The issuer has mandated BNP Paribas on the transaction.

    • 19 Apr 2021
  • Dongfeng Peugeot drives into ABS market on sales rebound

    Dongfeng Peugeot Citroen Auto Finance Co made its first appearance in China’s auto loan ABS market since 2017 this week, sealing a Rmb2.201bn ($336m) deal amid rising demand for proprietary brand vehicles after a plunge in sales in recent years.

    • 16 Apr 2021
  • Project Zeus: Greece brings first non-performing energy debt securitization

    Public Power Corporation (PPC), the largest utilities provider in Greece, has launched a first-of-its-kind programme securitizing missed electricity payments with the help of Deutsche Bank.

    • 15 Apr 2021
  • Lower default rate boosts CLO credit quality

    The credit quality of CLOs has strongly improved since April 2020, with default rates and watchlist exposure falling rapidly, Fitch said this week.

    • 15 Apr 2021
  • Biden infrastructure plan boosts equipment ABS outlook

    The $2tr infrastructure plan proposed by president Joe Biden is now under review in Congress, where it is expected to go through a process that will reduce its scope and size. The comprehensive terms of the bill include plans to create millions of jobs in agriculture and construction, which will serve as a boon to the equipment ABS sector.

    • 15 Apr 2021
  • EU eyes separate gas law, leaves harmful bioenergy in Taxonomy

    The European Commission is set to put forward a new solution to the intense battle over the EU's sustainable finance Taxonomy, between green finance supporters and EU member states that want to safeguard their plans to use gas, GlobalCapital has learned. This would appear to involve leaving gas out of the sustainable category of the Taxonomy, as environmentalists have demanded, and making a "separate legislative proposal" to deal with gas and nuclear power.

    • 15 Apr 2021
  • ‘Trench warfare’ as vultures swoop on Irish NPLs

    Private equity "vulture funds" are tightening their grip on Ireland after a Covid-19 parliamentary bill opened up more mortgages for repossession. But legal practitioners are working with non-profits to stop PE firms from “scraping the barrel” of defaulted mortgage debt.

    • 15 Apr 2021
  • Fairwater Capital hires structured credit head

    Fairwater Capital, an alternative investment boutique, has hired Eric de Sangues, formerly of Chenavari Investment Managers, as head of structured credit.

    • 15 Apr 2021
  • CLO pipeline remains robust, shrugs off April payments pause

    A flurry of deals is expected to hit the CLO market with managers, such as Sculptor, MJX, First Eagle and Carlyle, among others, set to issue new deals or reprice legacy deals.

    • 14 Apr 2021
  • Diamond prices timeshare ABS as domestic travel prospects improve

    Diamond Resorts returned to the securitization market after a two year hiatus, pricing at one of the tightest spreads the issuer has seen to date all across the capital stack. Sources say they attribute the tight spreads to improving prospects for domestic travel, as consumers are looking to scratch their pent up urge for leisure travel by visiting nearby hotels rather than go abroad.

    • 14 Apr 2021
  • Oodle to sell excess spread notes as auto ABS compresses

    Oodle Car Finance is selling further down the capital structure than ever before with its latest Downson auto ABS. It has added excess spread notes to the offering as well as a full stack of principal-backed notes following spread compression in auto ABS driven by scarcity.

    • 14 Apr 2021
  • NoChu return could be hampered by tough stips

    CLO managers once happily sold huge volumes of triple-A securities to NorinChukin, sucking up the Japanese bank’s terms in return for a reliable anchor order which locked in their senior notes ahead of public syndication. The bank has been slowly running down its portfolio since it was forced to stop buying by its regulator, but if it comes back, it might find managers keen to preserve their flexibility and place their bonds elsewhere.

    • 14 Apr 2021
  • DBRS Morningstar launches esoteric finance team

    DBRS Morningstar launched a group dedicated to esoteric finance in an effort to expand its rating operations into other asset classes, ranging from future flow structured finance to esoteric or innovative RMBS. The news comes at a time when appetite for esoteric asset classes is growing rapidly and market participants are seeking a way forward beyond existing esoterics that lack yield.

    • 13 Apr 2021
  • CLO reissues resurface with Canyon

    Alongside the rush of refi and reset activity, a third form of CLO refinancing is once again emerging, with Canyon Capital choosing to reissue a 2015 CLO as a new $420m deal called Canyon CLO 2021-2.

    • 13 Apr 2021
  • Buyers eye UK retail assets as high street reopens

    With the UK opening up high street retail on Monday, investors are said to be eyeing retail real estate for opportunities. But the market, hit hard by the pandemic, will be slow to recover – with Newcastle’s Metrocentre becoming a prominent example of the future for shopping centres after the pandemic.

    • 12 Apr 2021
  • Head of US CLO syndication leaves Deutsche Bank

    Head of US CLO new issue syndication David Ryan has left Deutsche Bank after 17 years working at the bank.

    • 12 Apr 2021
  • Bellwether adds mortgage expert from CBRE

    Bellwether Asset Management hired Cara Leonard-Munn as senior vice president of the debt asset management division, which oversees a wide range of real estate debt investments including private loans and public securities.

    • 12 Apr 2021
  • Extension risk returns as Pimco skips RMBS calls

    Pimco has declined to call three RMBS issues where it is the option holder, despite broadly supportive marketplace conditions which would allow new financings to be structured and sold. Last year saw issuers including NewDay and TwentyFour skip call dates, due to the chaos wrought by the pandemic, which made a refi at reasonable spreads impossible. Missing a call for pure economic advantage, by contrast, is extremely rare in European securitization.

    • 12 Apr 2021
  • Dongfeng Peugeot returns to China ABS after hiatus

    Dongfeng Peugeot Citroen Auto Finance Co is set to come to China’s auto ABS market for the first time since 2017 with a Rmb2.201bn ($336m) transaction that will be launched later this week.

    • 12 Apr 2021
  • Dongfeng Nissan parks new ABS amid yield fall

    Dongfeng Nissan Auto Finance Co came to China’s ABS market this week with a Rmb4.41bn ($673m) auto loan deal under the Vinz series, taking advantage of a recent decline in onshore yields.

    • 09 Apr 2021
  • Marketplace lenders break into auto lending

    Marketplace lenders are breaking into the auto loan industry, continuing to move far beyond the unsecured consumer loan products they began with. The move is driven by fintechs leveraging their technologies and client bases developed through their consumer loan products to open up new channels of income, sources say.

    • 08 Apr 2021
  • EU reboots NPL rules as bad debt looms

    Long-awaited amendments to European securitization law come into force on Friday, which should make non-performing loans securitization easier at a time when bad debt levels are set to rocket. Tom Brown reports.

    • 08 Apr 2021
  • Pension funds eye riskier CLO tranches

    A growing number of pension funds are turning their attention to the riskier part of the CLO capital stack in search of extra yields, attracted by the risk-adjusted returns offered by CLO equity and mezz, compared with other fixed income asset classes.

    • 08 Apr 2021
  • BNP Paribas hires for NPL securitization

    BNP Paribas has hired a banker from Credit Suisse to work in its non-performing loans team, as the French bank increasingly targets securitization business in the sector.

    • 08 Apr 2021
  • German fintech Auxmoney secures €250m from Citi, Chenavari

    German fintech lender Auxmoney has nabbed another round of funding from Citigroup and Chenavari Investment Managers, receiving €250m in total.

    • 08 Apr 2021
  • Reset wave helps NoChu cut CLO book

    Record levels of resets in the CLO market on both sides of the Atlantic are helping NorinChukin Bank, once the anchor investor for many triple-A tranches, slim down its investment portfolio in the asset class. Fortunately, new big buyers are stepping up at the top of the capital structure, and on less onerous terms than NoChu demanded.

    • 08 Apr 2021
  • BOAD president seeks to bolster bank finances in aim to support regional recovery

    Development banks across the world — and especially those in Africa — have proven to be indispensable sources of relief during the last year. Though Africa has a wealth of challenges to economic recovery, the West African Development Bank, also known as Banque Ouest Africaine de Développement (BOAD), has high ambitions for the year ahead. The bank’s president Serge Ekué spoke to GlobalCapital about these ambitions, including an imminent capital raise.

    • 08 Apr 2021
  • FAF squeezes pricing with internationally rated ABS

    China’s Fortune Auto Finance Co launched its first internationally rated auto loan ABS transaction this week, pricing the senior portion of the Rmb2.5bn ($381.5m) deal at a competitive spread.

    • 08 Apr 2021
  • CLOs can preserve investment flexibility despite growth of ESG limits

    CLOs have 'by nature' a limited exposure to the industries commonly excluded under ESG criteria, meaning their investment flexibility will be preserved, despite the exclusions appearing in more and more deal documents. This bodes well for the growth of ESG screening in the US CLO market, which has lagged behind other markets, with only 10 deals so far featuring the language, according to Deutsche Bank.

    • 07 Apr 2021
  • US Securitization Awards — shortlist revealed

    GlobalCapital is pleased to present the shortlists for our US securitization awards — thanks to everyone submitting nominations through our survey, or highlighting interesting deals, notable issuers or capable counterparties to us directly.

    • 07 Apr 2021
  • Debut Finnish issuer enters auto ABS market

    Debut Finnish issuer LocalTapiola Finance has mandated BNP Paribas for its first auto ABS transaction, bringing a single offered tranche with a pre-set 70bp coupon over one-month Euribor on offer.

    • 07 Apr 2021
  • Trump exit unleashes Financial Stability Board to act on climate

    The G20’s Financial Stability Board is cranking up its action on climate change again now that Donald Trump is no longer US president. This will feed the hopes of some sustainable finance supporters who want the FSB to drive progress on issues including environmental accounting.

    • 07 Apr 2021
  • Michigan pension fund allocates to Kayne's CLO fund

    The State of Michigan Retirement System has recently disclosed a new commitment to a CLO fund, signaling that more pension funds are turning their attention to the CLO market, attracted by its fast recovery.

    • 06 Apr 2021
  • Domino’s serves up whole biz ABS

    Domino’s Pizza is preparing a new ABS transaction which will fund a shareholder dividend, as well as refinancing a portion of its outstanding securitization debt. With US consumer spending quickly recovering, most whole business ABS paper has become very expensive, making it less of an attractive option for investors looking for high returns, sources say.

    • 06 Apr 2021
  • Revised Taxonomy will hinder green bonds

    The European Commission’s draft Taxonomy for Sustainable Activities will stymie green bond issuance as it’s based on an unfair system that excludes mortgages on many countries’ most energy efficient buildings.

    • 06 Apr 2021
  • Paragon jumps ahead on phase-out of non-green BTL mortgages

    The UK government is planning to tighten the energy efficiency ratings required for buy-to-let mortgages, phasing in the changes through to 2028, but some mortgage lenders are implementing the rules early. The result could mean more collateral for green structured finance transactions as well as a lower risk of default.

    • 06 Apr 2021
  • Recurring revenue lending must protect its brand

    When hot new debt products are on the march, someone will always push the boundaries beyond what is tolerable. In the case of recurring revenue loans, that would be a mistake.

    • 06 Apr 2021
  • Loan notes turn chunky in new issue CLOs

    Three recent CLO issues have underlined the size of the US bank buyer base in triple-A rated tranches, structuring loan note tranches of more than €150m — a format favoured in particular by Bank of America and State Street for their investments, but which could further constrain liquidity at the top of the capital stack.

    • 06 Apr 2021
  • Morgan Lewis grows structured finance team with two partners

    Morgan Lewis has added Steven Becker and Alex Velinsky to its structured transactions team, bolstering a practice the firm has been growing recently. Both partners join from Hunton Andrews Kurth.

    • 05 Apr 2021
  • New issue CLOs decline but refis and resets flourish

    New issue CLO supply declined slightly in March, though reset and refinancing activity continues to boom, with managers taking advantage of tight spreads.

    • 05 Apr 2021
  • Travel crisis kicks off consolidations in aviation

    Investors are expecting the wave of consolidations in the aviation sector to continue beyond the GECAS-AerCap merger as smaller lessors look for ways to survive and bigger players seek for investment opportunities. The most recent example is Carlyle Aviation’s acquisition of Fly Leasing, another deal that highlights the monumental changes occurring within the aircraft sector in the midst of Covid-19.

    • 01 Apr 2021
  • Ares resets and increases its $1.19bn CLO

    Ares Management has increased the size of one of its largest CLOs still further, resetting a $1.1bn transaction originally priced in 2017 and taking the opportunity to crank the deal up to a par value of $1.9bn.

    • 01 Apr 2021
  • Arc Ratings hires new head of structured finance

    Arc Ratings has appointed Stefan Augustin as co-head of structured finance of ARC Ratings, heading up the firm’s European business.

    • 01 Apr 2021
  • FAF, Dongfeng Nissan prep new auto deals

    China-based Fortune Auto Finance Co will launch a Rmb2.5bn ($381.5m) auto loan ABS transaction next week, the company’s first deal with an international rating. Meanwhile, Dongfeng Nissan Auto Finance Co is returning to the onshore market with a larger Rmb4.4bn trade.

    • 01 Apr 2021