• Comment: Markets must prepare again for a No Deal Brexit

    Theresa May’s statement today that she will step down as leader of the Conservative Party on June 7 has increased the likelihood that the UK will leave the European Union without a deal, meaning capital markets need to prepare for the worst again.

    • 02:45 PM
  • Green innovation: Dutch classify buyers, Germans mull strippable labels

    The green bond market is going through one of its most intense periods, with a wide variety of high profile issuers joining the market. But there are also hints of novelty in the market. The Netherlands and KfW have used systems for classifying green investors, while Germany is considering a radical idea: whether Bunds could be issued with detachable green certificates. Jon Hay reports.

    • 23 May 2019
  • SEC charges commercial real estate developer with Ponzi fraud

    The Securities and Exchange Commission (SEC) said on Thursday that it was charging Robert C. Morgan, a commercial real estate developer who carried out substantial business with the government sponsored agencies' CMBS platforms, with Ponzi scheme-like fraud. The regulator has demanded an asset freeze and other civil penalties.

    • 23 May 2019
  • Taking no prisoners? Citi starts sale of Tesco mortgages

    Tesco Bank is said to have mandated Citi to run a sale process for its £3.7bn book of UK mortgages, after it decided to pull out of the market, blaming cut-throat competition. But the move has drawn attention to a proposed UK law to help ‘mortgage prisoners’, which could stop UK mortgages trading at all, writes Owen Sanderson.

    • 23 May 2019
  • People news in brief

    JP Morgan picks levfin top brass — Ex-Barclays boss turns up at Wells Fargo — Fixed income portfolio manager leaves Mirova.

    • 23 May 2019
  • Securitization market fully switches to Sonia standard

    The trickle of Sonia issuance in securitization markets has become a full stream less than two months after Nationwide Building Society's debut in the format, with the benchmark now the new standard for sterling markets. The development comes not a moment too soon, as UK banks try to structure their funding around repayment of central bank schemes.

    • 23 May 2019
  • Sunrun readies third residential solar ABS

    Residential solar developer Sunrun in marketing a $204m single tranche residential rooftop solar ABS, its third to date.

    • 23 May 2019
  • Fed chair plays down fear of corp debt bust despite near-record high

    Business debt has reached near record levels that should give businesses and investors reason to “pause and reflect”, warned Jerome Powell, chair of the US Federal Reserve, this week.

    • 23 May 2019
  • HSBC leads banks in selling packaged trade finance

    HSBC has started a programme to sell some of its trade finance exposures in packaged, investor-friendly format, threatening a lucrative niche until now occupied by firms such as Greensill Capital. The bank, the largest trade finance lender in the world, has worked with AllianzGI to sell the short dated bond-like assets.

    • 23 May 2019
  • NoChu reports growing CLO portfolio, weak financials

    Japan's Norinchukin Bank revealed in its full year 2018 earnings presentation Wednesday that it had grown its CLO holdings by 8.8% during the first quarter of 2019, although a look at its books reveals a bank that is aggressively pursuing yield beyond its borders.

    • 22 May 2019
  • Market anxiety around subprime auto sector growing

    Market participants believe the performance of subprime auto loans is likely to deteriorate in the near term, a new survey published this week found.

    • 22 May 2019
  • Planned sale of Tesco mortgage book kicks up fears of fresh ‘mortgage prisoners’

    Tesco Bank is looking to sell its £3.7bn mortgage book after announcing that it will cease new mortgage originations. The lender is exploring options to facilitate a complete transfer, but the news has drawn attention to a bill proposed in the UK parliament which would grant borrowers the ability to transfer mortgages between providers.

    • 22 May 2019
  • Jamaica’s solo cat bond to cover cyclones or earthquakes

    Jamaica has gone beyond an existing programme with other countries in its region in order to beef up its defences against natural disasters by deciding to work with the World Bank to prepare a catastrophe bond. The deal may also have ramifications for the sustainability of its debt.

    • 22 May 2019
  • Blackstone Vivaldi CMBS prices wide of guidance

    Blackstone’s €222.23m Deutsche-led Vivaldi CMBS was priced on Tuesday evening, with senior notes sold at 190bp over three month Euribor, wide of the 100bp mark the issuer was aiming for at price guidance.

    • 22 May 2019
  • Dollar Libor fallbacks for securitization coming next week

    The Alternative Reference Rates Committee (ARRC) is set to release fallback language next week that would prescribe how Libor-linked securitizations would adopt an alternative benchmark in the absence of the traditional inter-bank rate.

    • 21 May 2019
  • DFG poaches Crescent Capital exec

    As it continues to boost its platform, CLO manager DFG Investment Advisers announced on Tuesday that it has hired John Hwang as a director in its leveraged credit team.

    • 21 May 2019
  • Dine Brands cooks up whole biz refi ABS

    Dine Brands, parent company of Applebee’s and IHOP, is coming back to market with a $1.72bn whole business deal that will pay off outstanding ABS notes.

    • 21 May 2019
  • Investors get picky with European CMBS feast

    There have been over five CMBS announcements in the past week, making the second quarter of 2019 one of the busiest times in European CMBS since the crisis. But despite the surge of activity, some on the buyside say they are approaching the market with caution.

    • 21 May 2019
  • GSEs must decide their own fates, FHFA chief says

    Federal Housing Finance Agency chief Mark Calabria said on Monday that he expects the government-sponsored enterprises to decide their own paths out of conservatorship in the coming years, rather than have the housing regulator lay out a controlled plan for their privatisation.

    • 20 May 2019
  • Online lenders tighten standards as recession fears grow

    Online lenders are shifting towards higher quality borrowers as fears of an imminent recession increase.

    • 20 May 2019
  • Clydesdale moves to STS and Sonia for new Lanark deal

    Clydesdale Bank has mandated BNP Paribas, Bank of America Merrill Lynch, Citi and Lloyds for it Lanark 2019-2 UK RMBS offering. The multi-currency deal will comply with the ‘simple, transparent and standardised’ (STS) regulation and include a Sonia-linked sterling tranche.

    • 20 May 2019
  • European pipeline bulges with trio of new deals

    The new issue pipeline in Europe is showing no sign of slowing down following what was one of the busiest weeks of the year so far, as issuers tee up three new deals, including the first public auto ABS to be issued by Mercedes-Benz in Italy.

    • 20 May 2019
  • Second CMBS 2.0 default points to struggling UK retail sector

    A post-crisis CMBS loan tied to a UK retail property has defaulted, only the second CMBS 2.0 default seen to date, pointing to continued weakness in the retail sector.

    • 20 May 2019
  • Debt purchaser B2 extends maturities

    B2Holding, the Oslo-based debt purchasing and servicing firm, has printed a new €200m senior unsecured 2024 at 635bp over three month Euribor, using the cash to buy back older issues. It plans a new secured bond later this year to fund rapid expansion plans.

    • 20 May 2019
  • Commission’s Berrigan pours cold water on EU safe asset, ESBies

    John Berrigan, deputy director general at the European Commission, has said that the creation of a European safe asset, and in particular European Safe Bonds, would be difficult to achieve.

    • 20 May 2019
  • US CLO portfolio quality in decline since winter selloff, says Wells

    A team of researchers at Wells Fargo led by David Preston said in a webcast on Friday that managed CLO portfolios saw a decline in quality as managers in aggregate failed to build par and bought lower credit quality loans.

    • 17 May 2019
  • Credit enhancement on the decline in marketplace loan ABS deals

    Credit enhancement levels have been shrinking meaningfully in ‘A’ rated notes of frequent marketplace loan ABS issuers since 2017, according to Fitch Ratings research published this week.

    • 17 May 2019
  • Credit Suisse adds to EMEA CLO team with new promotion

    Credit Suisse has promoted Sheenal Thaker to its EMEA CLO corporate asset finance team, based in London.

    • 17 May 2019
  • BAML makes switch to Sonia with new RMBS mandate

    Bank of America Merrill Lynch has been mandated for a new UK RMBS transaction for specialist lender Precise Mortgages, with all tranches on offer referencing the sterling overnight index average (Sonia).

    • 17 May 2019
  • Most Innovative Securitization Bank of the Year — Guggenheim

    As the securitization market in the US has expanded and accelerated in the decade since the financial crisis, institutions have pushed the boundaries to include collateral and structures not seen in the pre-crisis era. For the first time in the history of these awards, GlobalCapital solicited pitches from banks that considered themselves to be innovators in their markets.

    • 16 May 2019
  • Most Innovative Securitization Deal of the Year – Goldman Sachs, Vanderbilt University Trademark Royalty Securitization

    GlobalCapital took pitches for several contenders for the most innovative securitization deal of the year. All of them were impressive — whether using securitization to finance improvements to public infrastructure, convert a fleet of passenger planes into cargo aircraft, or pooling renewable energy credits to promote the development of residential rooftop solar energy.

    • 16 May 2019
  • Resurgent CMBS market no help for latest Blackstone deal

    The European CMBS market has defied its ineligibility for the European Securities and Markets Authority's (ESMA) new ‘simple, transparent and standardised’ (STS) securitization framework intended to boost confidence in the market. The asset class that appeared dead and buried after the financial crisis has outpaced other asset classes in recent times. But the resurgence did not stop one deal this week from suffering heavy investor scrutiny, writes Tom Brown.

    • 16 May 2019
  • JP Lease prices debut aviation deal

    JP Lease has completed a $553.65m aircraft lease securitization backed by a portfolio comprising newer, liquid aircraft with long remaining lease terms.

    • 16 May 2019
  • CMBS thriving without STS

    European commercial mortgage-backed securities (CMBS) have enjoyed a revival of late, despite the battering they took during the crisis years. Although regulators excluded the asset class from the Simple, Transparent and Standardised (STS) framework, it has shown that a select band of specialist investors is enough to get by in post-crisis securitization markets.

    • 16 May 2019
  • BNP hires new chief US credit strategist

    BNP Paribas on Wednesday announced that it has hired a new US chief credit strategist.

    • 15 May 2019
  • Credit card delinquencies pile up for younger borrowers

    Credit card delinquency rates are increasing as user demographics shift to include a higher percentage of younger consumers, according to data from the Federal Reserve.

    • 15 May 2019
  • Price thoughts released for LeasePlan's Sonia-STS auto deal

    LeasePlan released initial price thoughts for its Bumper UK auto ABS on Tuesday with senior notes guided around low 70bp.

    • 15 May 2019
  • Morgan Stanley brings UK warehouse CMBS

    Morgan Stanley is bringing a £235.1m CMBS to market, securitizing a single loan financing the acquisition of a portfolio of UK warehouse properties by Blackstone.

    • 15 May 2019
  • CNH prices equipment deal as trade war deepens

    CNH Industrial priced an equipment ABS transaction Wednesday, as securitization analysts and investors eye heightened tensions in the US-China trade war with possible knock-on effects for the esoteric ABS subsector.

    • 14 May 2019
  • BAML CLO chief departs for buyside

    Wynne Comer has left Bank of America Merrill Lynch after 12 years and will be taking on a role at AGL Credit Management, the new private credit firm opened in March by CIFC-founder Peter Gleysteen.

    • 14 May 2019
  • Specialist lender mandates Citi, Macquarie for debut RMBS

    Specialist lender Domivest is bringing a Dutch RMBS via Citibank and Macquarie Bank backed by performing buy-to-let (BTL) mortgages.

    • 14 May 2019
  • Natixis affiliate Ostrum extends CLO operations into US

    Paris-based Ostrum Asset Management is expanding into US markets as its institutional investors look to diversify into US alternative asset strategies, it said on Tuesday.

    • 14 May 2019
  • Goshawk preps inaugural aircraft ABS

    Goshawk Management is gearing up for a $529m aviation transaction, mostly consisting of young, narrow-bodied aircraft.

    • 13 May 2019
  • Shawbrook brings debut UK RMBS as Sonia issuance grows

    UK challenger bank Shawbrook is issuing a prime UK buy-to-let RMBS comprised of first-lien mortgages via sole arranger Lloyds. The deal is the first securitization to come from Shawbrook and will be the second non-retained deal linked to the sterling overnight index average benchmark (Sonia).

    • 13 May 2019
  • Pepper brings second RMBS of the year with €100m green tranche

    Non-bank lender Pepper Group is bringing a A$750m RMBS via arranger Commonwealth Bank of Australia with euro and dollar tranches included. Pepper Residential Securities Trust No. 24 is backed by non-conforming mortgages concentrated in Western Australia.

    • 13 May 2019
  • Metro to launch £350m capital raise within weeks

    Metro Bank, the embattled UK challenger bank, is expected to launch its planned £350m equity capital raise in the coming days after the bank was forced to quash rumours of financial instability on social media over the weekend. It may also sell or securitize some loans.

    • 13 May 2019
  • New York judge halts OCC’s fintech charter program

    A New York federal court decision issued last Thursday has put the brakes on the fintech charter program in development by the Office of the Comptroller of the Currency (OCC). The proposal was meant to allow marketplace lenders to operate under a uniform, nation-wide regulation, and without paying the cost of deposit services.

    • 10 May 2019
  • Barings BDC announces $550m lending partnership with US pension fund

    Barings BDC announced on Thursday that it is forming a joint venture with the State of South Carolina Retirement System (SCRS) that will invest in private debt, syndicated senior secured loans, structured products and real estate debt.

    • 10 May 2019
  • CLO market persists through macro headwinds

    Reluctance from smaller Japanese buyers and the end of a rally in loan prices are likely to dampen CLO volumes through the remainder of 2019, market sources say, although the market thus far shows no signs of abating.

    • 09 May 2019
  • Ørsted pleases green and CPI investors with £900m bond hit

    Ørsted, the Danish energy company formerly known as Dong, which is transitioning from oil and gas to renewable energy, launched a highly successful bond issue on Thursday that was the biggest ever sterling green bond, at £900m, and included the biggest fully syndicated note linked to the consumer price index (CPI).

    • 09 May 2019
  • Ørsted wows green and inflation investors with windfarm bond

    Ørsted, the Danish energy company formerly known as Dong, which is transitioning from oil and gas to renewable energy, launched a highly successful bond issue on Thursday that was the biggest ever sterling green bond, at £900m, and included the biggest fully syndicated note linked to the consumer price index (CPI).

    • 09 May 2019
  • Soc Gen mandates for client selectivity

    Société Générale will take an increasingly selective approach to which of its clients are allowed the full range of its product suite, as it targets big savings in its global banking and investor solutions (GBIS) division.

    • 09 May 2019
  • The 2019 GlobalCapital US Securitization Awards: The Winners

    GlobalCapital held its sixth annual US Securitization Awards at New York's Metropolitan Club on Wednesday, May 8.

    • 09 May 2019
  • HSBC out with Irish CMBS deal

    HSBC is out with an Irish commercial mortgage securitization, Pembroke Property Finance, backed by loans sold by Finance Ireland Credit Solutions.

    • 09 May 2019
  • Sun rises over Italian STS securitization market

    Agos Ducato has mandated arrangers Credit Agricole and Banca Arkos for an Italian consumer ABS from its Sunrise shelf, Sunrise 2019–1, a €1.1bn transaction set to be the first Italian deal to comply with the ‘simple, transparent and standardised’ (STS) framework.

    • 09 May 2019
  • LeasePlan brings UK auto STS deal, while Moody’s flags risk for auto ABS

    LeasePlan UK has mandated LeasePlan Corporation as arranger and HSBC and Santander as joint lead managers for Bumper UK 2019-1, a UK auto ABS which will comply with the ‘simple, transparent and standardised’ (STS) framework.

    • 09 May 2019
  • French bid to widen EU green Taxonomy received well

    The attempt by France to broaden the European Union’s proposed Taxonomy of Sustainable Economic Activities away from the “green niche” has made a good start. Financial officials from all the EU governments discussed the idea on Tuesday, with many member states being “very supportive”, according to sources close to the situation.

    • 09 May 2019
  • Credit card lending standards tightened in the first quarter

    Banks have tightened their credit card lending standards throughout the first quarter, according to a Federal Reserve report published this week, while consumer demand for credit cards has weakened overall in the past three months.

    • 08 May 2019
  • BAML out with new Italian CMBS

    Bank of America Merrill Lynch is bringing a €300m Italian CMBS, with TPG Sixth Street Partners as sponsor. The deal comprises four loans backed by 648 mixed-use assets located throughout Italy originated by Zodiac Holdings and Nucleus Investments.

    • 08 May 2019
  • Freddie Mac opens UMBS exchange

    Freddie Mac on Tuesday opened an exchange that will allow investors to trade eligible Freddie Mac securities for TBA-eligible Uniform Mortgage Backed Securities Mirror Certificates, which will be fungible with the new GSE security that will see Fannie Mae and Freddie Mac’s markets merge into one.

    • 07 May 2019
  • US CLO rally imminent, Wall Street analysts predict

    After the biggest month for new issue CLO supply since the market was created in the 1990s, Wall Street researchers have predicted that new issue spreads will grind tighter in the near-term, as secondaries come in and CLO formation is challenged by low loan supply.

    • 07 May 2019
  • Consumer spreads have room to tighten through June

    Consumer-related ABS issuance started off the week strong and steady with four deals from Navient, DriveTime, World Omni and SeaCube either priced or in the pipeline amid spreads on a downward trajectory.

    • 07 May 2019
  • Market eyes EBRD role in cat bonds for western Balkans

    Catastrophe bonds could be a useful tool for countries in the western Balkans to insure against the impact of weather related disasters — especially if bodies such as the EBRD and UN play a role

    • 07 May 2019
  • NewDay includes Sonia clause in card ABS

    NewDay, the UK storecard lender, has announced a securitization in either or both of dollars and sterling, in which the interest rate might be linked to Sonia, the Sterling Overnight Index Average. The announcement came as the secondary ABS market tightened markedly.

    • 07 May 2019
  • Montepio Geral prepping new NPL securitization

    Caixa Económica Montepio Geral is to bring Ares Lusitani, the second issuance of Portuguese non-performing loans (NPLs), with JP Morgan arranging the €70m deal backed by residential and commercial properties located in Portugal.

    • 07 May 2019
  • Goldman to offer equity using new lending fund

    Goldman Sachs is planning to directly offer equity using a new middle-market business development corporation (BDC) that opened at the end of 2018, as interest in direct lending continues to tick up and the economic cycle stretches toward its conclusion.

    • 06 May 2019
  • Jump in subprime auto loan growth threatens ABS

    Subprime auto ABS issuance grew 3% in 2018 and continues to rise, according to S&P Global Ratings, which is flagging a surge in loan origination and heightened competition among lenders as a potential factor driving losses on the bonds for the remainder of 2019.

    • 06 May 2019
  • SocGen swaps out US global markets chief

    Société Générale announced on Monday that Sylvain Cartier, the bank’s New York-based head of global markets for Americas, would be leaving for Paris to join the bank’s fixed income division following the departure of its former chief, Bruno Benoit.

    • 06 May 2019
  • Ginnie Mae seeks industry guidance on aggressive loan churning

    Ginnie Mae announced on Friday that it was considering making changes to its loan eligibility rulebook, as the government agency looks for new solutions to crack down on a continued pattern of aggressive refinancing in certain corners of the US mortgage market.

    • 03 May 2019
  • Markets cheer as UK raises hopes of net zero carbon

    The UK’s so far quixotic response to climate change stands a good chance of becoming more serious and organised, after the government welcomed a bold policy report calling for net zero carbon emissions by 2050.

    • 02 May 2019
  • The Fed will copy Europe on climate policy, despite Trump

    While other central banks have started to grapple with climate change, the Federal Reserve has been conspicuous by its absence. But as green shoots begin to emerge in the US, the Fed will not be able to ignore the topic for much longer.

    • 02 May 2019
  • Greek borrower protection framework to help NPL securitization

    Greek authorities have begun to implement an enhanced framework to allow mortgage borrowers to keep their homes in a regulatory move that bodes well for future NPL securitization in Greece.

    • 02 May 2019
  • Kroll downgrades Honor Finance ABS for second time

    Honor Finance, an originator of 'deep subprime' auto loans, was hit with downgrades on two subordinate tranches from its 2016-1 transaction due to an increase in cumulative net losses. It is the second time since January that Kroll Bond Rating Agency has downgraded ABS issued by the defunct lender.

    • 02 May 2019
  • Investment banks can handle levloan downturn, says Moody’s

    Global investment banks should be able to withstand stress in the leveraged finance market, according to a Moody’s report published on Tuesday, thanks to lower pipeline limits and smaller deal sizes than pre-crisis. This was borne out during the fourth quarter of last year, when few banks were caught offside despite a slump in loan prices.

    • 02 May 2019
  • Macquarie hires Porretta as securitization MD

    Macquarie Bank is hiring Carolyn Porretta as a managing director in its EMEA securitization business.

    • 02 May 2019
  • Credit Suisse hires Mathieson from NatWest

    Thomas Mathieson has joined Credit Suisse from NatWest Markets, to head up special situations and loan trading.

    • 02 May 2019
  • Blackstone sues RCS chief Urbano Cairo for up to $300m

    Blackstone is suing Urbano Cairo, chairman and controlling shareholder of Italian publisher RCS Mediagroup, citing loss of opportunity for Blackstone and its investors to sell a property acquired from RCS in 2013.

    • 02 May 2019
  • Issuers prep massive Blackstone showroom CMBS

    A consortium of banks is preparing to issue a $1.15bn single borrower CMBS deal backed by a portfolio of showroom properties owned by Blackstone.

    • 01 May 2019
  • Prosper hit with SEC penalty for misleading investors

    Marketplace lender Prosper miscalculated and materially overstated its annualised net returns to investors, according to the US Securities and Exchange Commission, which slapped the online lender with a $3m fine last month.

    • 01 May 2019
  • Blackstone brings European CMBS via Deutsche

    Blackstone has mandated Deutsche Bank for a €342.92m CMBS, securitizing loans on three retail and factory outlets in Northern Italy.

    • 01 May 2019
  • Paratus mandates Natixis for third buy-to-let RMBS

    Paratus AMC is issuing its third UK buy-to-let (BTL) mortgage securitization, Twin Bridges 2019-1, via Natixis.

    • 01 May 2019
  • IFM expands EMEA debt investments team with double hire

    IFM Investors has hired Lucie Mixeras to its EMEA debt investments team as associate director, in response to what the company says is growing client demand for infrastructure debt.

    • 01 May 2019
  • NatWest hires country head to build in Germany from BNPP

    NatWest Markets has hired an experienced debt capital markets banker to be its country head for Germany, based in Frankfurt.

    • 01 May 2019

European Sovereign Bonds

Rank Lead Manager Amount €m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 13,503.69 19 12.05%
2 Citi 11,025.37 16 9.84%
3 HSBC 10,438.07 12 9.31%
4 BNP Paribas 8,371.12 12 7.47%
5 Barclays 7,970.77 10 7.11%

Dollar Denominated SSA (Excl US Agency)

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 20,625.37 46 12.48%
2 JPMorgan 17,028.13 38 10.31%
3 Barclays 12,294.11 26 7.44%
4 HSBC 10,936.92 25 6.62%
5 Deutsche Bank 10,542.52 22 6.38%

Bookrunners of Euro Denominated SSA (Excl US Agency)

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 27,113.83 53 10.14%
2 HSBC 20,099.65 57 7.52%
3 Credit Agricole CIB 19,324.03 40 7.23%
4 BNP Paribas 18,161.36 34 6.79%
5 Barclays 17,311.25 36 6.47%

Bookrunners of Global SSA (Excl US Agency)

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 48,170.39 206 7.91%
2 HSBC 40,836.44 143 6.71%
3 Citi 40,186.92 114 6.60%
4 Barclays 35,828.56 113 5.89%
5 Deutsche Bank 29,199.14 83 4.80%