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Structured Bonds

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  • Razor-thin spreads and hungry offshore accounts helped spur a surge of new Australian RMBS issuance this week, when Westpac and Commonwealth Bank of Australia launched competing deals. But this overlap of issuers — and the pushy pricing they are trying to get away with — could turn off some investors, who can look forward to chunkier spreads from regional names later in the year.
  • More banks are pitching collateralised loan obligations to loan managers in Europe, amidst further signs that Europe’s dormant CLO market is set for a return.
  • Volkswagen’s second Driver Japan auto ABS has received a warm response from Japanese institutional investors, allowing the leads to tighten guidance without opening the deal up to offshore accounts.
  • Tesco sold £493m of bonds on Thursday secured by seven UK stores as part of a leaseback arrangement with a newly incorporated SPV. It is the sixth transaction of this type in recent years from the UK supermarket chain, which is keen to boost profits from its vast property portfolio.
  • Punch Taverns will ask investors, swap counterparties, note guarantors and other stakeholders to approve a new restructuring plan for its Punch ‘A’ and Punch ‘B’ whole business securitisations.