Latest news
Latest news
January's ABS data center deals see tenant numbers drop but demand remains strong
Deals including some commercial mortgages expected to follow
Deal was priced 6bp tighter than most recent iteration of the asset class
More articles
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The US House of Representatives passed the Paycheck Protection Program Flexibility Act last week in an attempt to loosen the terms around how small businesses can spend their loans, reducing the amount required to be spent on employee payroll. Sources say the program has made strides in the past two months since its rocky rollout, enabling a wider range of industries to benefit from the forgivable loan program. -
ABS investors watched nervously last week as car rental company Hertz filed for bankruptcy, with few good options to keep cash flowing in the face of a crisis that has curtailed travel and depressed used car values. However, sources say that there are a number of reasons investors should be pinning their hopes on a reorganization rather than a liquidation.
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Loanpal is bringing the first solar securitization to market since the Covid-19 outbreak. The deal is the first of several solar ABS lining up for the coming weeks, sources said, with at least two other 144A deals in the works.
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The pandemic has taken its toll on consumer ABS asset classes since March, but sources this week say that they are seeing opportunities in discounted bonds backed by refinanced student loans issued by top tier fintech lenders.
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The capital markets have been working to transition operations to a digital format for years, but bank incumbents have been reluctant to make a wholesale shift, largely because there was no urgent need to do so. Coronavirus has changed that, and banks are accelerating plans to update legacy systems, muscling in on territory once held firmly by fintechs.
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Credit hedge funds are looking to finance books of SME loans originated under the UK government’s Coronavirus Business Interruption Loan Scheme (CBILS), subscribing for the equity in private securitization vehicles backed by the loans. The government guarantees are likely to improve the financing terms on offer, boosting returns for funds that can access these assets — but there are still questions over the details of the scheme.
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European securitization bids wanted in competition (BWIC) volume has already reached €4.6bn in 2020, the highest level since JP Morgan's research team began collecting BWIC data in 2016. The secondary market is rallying following an improved equity market and a reopened European primary.
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CNH Capital priced its first securitization of the year on Tuesday, one of the few equipment ABS sponsors to come to market during the Covid-19 outbreak. The company is forecasting the “most severe impact” in the second quarter, with some regions and product lines seeing a 40% decline in demand, CNH said.
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Mercedes-Benz priced its Silver Arrow Compartment 11 ABS auto deal at 40bp for the senior notes, in line with a deal from BMW which reopened the European ABS market last week.
