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Structured Bonds

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  • Finnish forest operator Tornator Group announced on Monday it will issue bonds secured by its 600,000 hectares of forest as part of a broader move to refinance around €370m of debt.
  • The Commercial Real Estate Financial Council (CREFC) released CMBS 2.0, a set of best practice guidelines for the CMBS market, on Wednesday. Improved structuring practices and tighter spreads have raised hopes of more transactions next year, but Standard & Poor’s has warned there are still significant obstacles to a fully functioning market.
  • Auto loan originators have provided the ABS market with a stream of much needed supply this week, offering up paper from a variety of jurisdictions, currencies and ratings.
  • High quality European ABS that follows market best practice will from now on come with a label to prove it, following the full launch of the Prime Collateralised Securities initiative this week. Already, Santander has stolen a march to become the first issuer to print a deal with the new seal.
  • Volkswagen Financial Services and Santander Consumer Spain are both on the verge of retaining auto securitisations, deciding not to add to the splurge of public issuance in recent weeks.
  • Bank of Queensland returned to the RMBS market for the first time in two years this week, raising A$1bn ($1.03bn) after doubling the size of the deal from what it had initially hoped for.