Latest news
Latest news
ABS market not the cheapest cost of financing for issuer of first ever trade in the asset class
Revival of high LTV mortgage lending is creating an opportunity for more SRT and deconsolidation transactions
Trade follows the end of a joint venture to originate loans
More articles
More articles
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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. -
The auto ABS market is chomping its way through a glut of deals with five priced so far this week, ranging from a prime auto loan offering from General Motors to a subprime transaction from Foursight Capital, and more to come. The deal spree comes as the recovery rates for auto ABS rose to unprecedented levels during this quarter, according to Deutsche Bank, boosting sector credit fundamentals.
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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.
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Gourmet cake franchise Nothing Bundt Cakes is baking up a $359m securitization, the first bakery concept to come to the market since the inception of whole business ABS. The deal signals the return of innovation in the market as investors grow comfortable with purchasing highly esoteric deals.
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Prodigy Finance is preparing its first rated ABS backed by private student loans made to borrowers attending European and US postgraduate programs. Sources say such a geographically diversified deal like this may be attractive for investors given that the US market faces increased loan forgiveness.
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Is finance about to break out of the cocoon in which it has pupated for decades, and become a completely different life form?
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The European Commission signalled this week that it would extend regulation into many more aspects of sustainable finance, driving an agenda that could change the role of capital markets in society. But although responsible investing experts welcomed it, the complex package of at least 30 measures is likely to provoke a wide variety of reactions, from enthusiastic support to complaints that it is too slow and unambitious, to outright opposition. Jon Hay reports.
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How to respond to climate change and environmental sustainability were “of central importance” in the European Central Bank’s review of its monetary policy framework, the ECB said on Thursday as it published the results of the long-awaited review. It has designed a detailed roadmap for incorporating climate considerations across its monetary policy activities, including corporate bond purchases — but environmentalists are likely to be disappointed with the slow pace of reform.
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ABS issuance reached $140bn over the first half of 2021, the greatest aggregate deal volume achieved in a first half since the great financial crisis. The record volume speaks to the pent up investor demand spilling over from last year and issuers rushing to the market to take advantage of recovering macro conditions while they last.
