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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FICO on Monday released a new scoring tool to help lenders gauge the resilience of consumers in an economic downturn, though sources say it could take up to six months from the end of government support programs before the data can be usable as current data is obscured by a range of debt forbearance policies. -
Intu Properties, the UK shopping centre owner, is set for collapse as it looks to call in administrators following failed discussions with lenders around debt standstills. Some fear the effects could ripple across the struggling retail sector.
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Diamond Communications is returning with a $70m securitization, the second cell tower deal to appear in the market this year. The triple tranche deal is expected to price 25bp-75bp tighter than the previous deal issued by a competitor, demonstrating renewed demand for esoteric assets in June.
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Auto repair franchise Driven Brands is preparing a 144A securitization, the first whole business transaction since the sector was shuttered in March. There is high demand for it, boosted by improving used car values and a lack of resilient esoteric ABS paper, sources said.
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The Aviation Working Group launched the first digital aircraft equipment trading and financing platform this month, dubbed Global Aircraft Trading System (GATS). Sources say the platform will reduce time and money spent on trading aircraft, especially making it easier for lessors to swap planes in and out of their portfolios based on their needs.
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In the wake of the coronavirus pandemic, the speciality lending landscape in Europe could see a shakeout, as financing becomes scarcer and leverage terms tougher, forcing thinly capitalised loan originators to seek extra funds or put themselves up for sale, according to a report from securitization specialists Integer Advisors.
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Securitization spreads began their recovery before the Federal Reserve officially started financing holders of the bonds via its Term Asset-Backed Securities Loan Facility (TALF) this month, confirming for many in the market that the program is too narrow to be of great use. However, sources say that investors can still find attractive returns by tapping TALF funds for off the run sectors like private student loan and floorplan ABS.
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The pandemic has put the brakes on a decade of economic expansion that was firmly driven by the strength of the US consumer and a rebuilt household balance sheet in the wake of the 2008 crisis. The sudden upending of consumer finances and soaring unemployment are just a foretaste of the new risks that the consumer ABS market is dealing with, and investors are in uncharted waters as the crisis moves into the summer. Jennifer Kang reports.
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The Small Business Administration is scheduled to stop taking new applications for Paycheck Protection Program (PPP) loans in two weeks, but following the months long scramble for rescue funds, sources say legal pitfalls of the program could leave lenders on the hook for any missteps.
