Starling Bank, a UK online bank, has acquired regular securitization issuer Fleet Mortgages in a move which will see all of Fleet’s funding moved on to Starling’s balance sheet, effectively ending its securitization programme.
The three-year restructuring plan for four Intu shopping centres is set to see cash poured into London, Nottingham and Glasgow retail hubs after the group collapsed into administration in June 2020. But CMBS noteholders are set to see yields recover to only 60% of the outstanding amount by the time of a likely asset sale, bringing into doubt the prospect of future shopping-centre securtiizations.
Barclays has won its second consecutive mandate in two months with the Pacific Investment Management Company (Pimco), pre-placing a reperforming Irish RMBS backed by a legacy portfolio. The deal is a refinancing of notes from Jepson Residential 2019-1, a deal which Pimco decided not to call at the height of the Covid-19 pandemic in April 2020.
Real estate asset manager Blackstone has mandated Bank of America for Taurus 2021-4, a UK logistics CMBS.
Investors in triple-A rated European CLOs are using their pricing power to discern between trades, causing some deals to be priced more tightly than the recent trend of spreads widening towards 100bp, while other paper has had to offer spreads even cheaper than this.
There is good reason for cautious optimism when it comes to non-performing loans, despite the dire predictions made last summer. Italy, which has been dogged by NPL problems for years, is a prime example of how well things appear to be turning out, more than a year after the start of the pandemic.
Cerberus Capital Management has mandated Citibank for the first public securitization of equity release mortgages since before the global financial crisis. The deal, which priced on Thursday, was made of a portfolio of loans acquired from the defaulted Northern Rock and the Legal & General Group. The majority of interest paid in the coupon will come from underlying mortgage borrowers dying or entering care homes.
BMW has mandated Lloyds and Santander, along with co-managers RBS Capital Markets and SMBC Nikko, for Bavarian Sky UK 4. Arrangers released guidance on Wednesday for the senior notes in the high 30bp to around 40bp.
The build-up of court cases during the pandemic has rendered the investment profile of mortgage performance — a key metric for structured finance investors — ever more difficult to predict.
Pepper Money has released initial price thoughts for its latest non-conforming UK RMBS deal, called Polaris 2021-1. Citi, National Australia Bank and NatWest Markets were guiding the £425m deal on Tuesday at around 80bp or in the low-80bp for the senior tranche.
So far, despite the constant market chatter, consolidation among CLO managers has yet to occur. Instead, new firms are popping up as buyer demand rises in the hunt for yield. That has included Sancus Capital Management, which arranged its first deal recently having spent eight years as an investor in CLO equity and mezzanine paper.
Tough legacy mortgage securitizations are resisting the switch away from Libor, as the Financial Conduct Authority calls on issuers to contact investors before the six month deadline hits. A group of mortgage securitizations issued by defaulted Lehman Brothers pre-2008 are seen as particularly high risk.
As capital markets bankers gradually start to spend more time back in the office, a nuanced debate is playing out over how much flexibility they can expect to enjoy with regard to remote working when pandemic restrictions are finally lifted.
Orchard Global Asset Management has hired Rachit Prasad as a portfolio manager for its CLO team. Prasad will join after an 11 year stint as an ABS research analyst at Deutsche Bank.
Pepper Money has mandated Citi, National Australia Bank and NatWest Markets for a £425m non-conforming UK RMBS. The issuer pre-placed its 2020 transaction but is fully syndicating its latest offering.
Viridis, the £148m Brookfield and China Life-sponsored CMBS backed by Aldgate Tower in central London, is set to be priced towards the wide end of initial price thoughts.
BNPP is bringing a French ABS deal backed by home-improvement and equipment loans, Noria 2021, the first consumer transaction under the programme with a full capital stack on offer.
The UK government is launching a complete review of its securitization regulations in parallel with the European Union’s ambitions to reform the market. Sustainability, the 'simple, transparent and standardised' label, SME funding and risk retention are all under the microscope.
Banca Carige has structured the first securitization backed by SME loans with Italian state guarantees, provided as part of the government’s support for businesses during the Covid-19 pandemic.
Belmont Green has mandated Santander and NatWest for its second UK RMBS of the year, Tower Bridge Funding 2021-2, bringing a predominantly buy-to-let transaction with four offered tranches.
ABS lawyers are asking issuers to resist taking advantage of a legal loophole left via a regulatory quirk, where a number of CLO and CMBS deals are technically exempt from switching data over to the securitization repositories approved by the European Securities and Markets Authority (ESMA) on Friday.
Securitization is set to receive a sustainability makeover later in 2021 when the European Banking Authority finalises its mandate. Market participants are asking for better capital treatment to put ABS on a level with covered bonds, but others worry political influence could leave the market behind, writes Tom Brown.
The spreads on triple-A rated CLO tranches in euros are levelling off once more, after a spell of widening. The senior parts of the capital stack have become more accessible to investors, leading to a stabilisation of spreads which syndicates warn may be temporary.
Barclays has won a mandate on an Irish RMBS deal fully pre-placed by equity-holder Pimco on Tuesday. The deal was announced as it emerged that Rob Scott, head of asset finance securitisation and asset finance solutions at Barclays, is leaving the bank to join the asset manager.
Citi bank has released initial price thoughts (IPTs) for its upcoming Canada Square Funding 2021-2 UK BTL RMBS deal, guiding the senior tranche at around 80bp, cutting around 15bp from its last deal.
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