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
-
Used car finance platform Oodle plans to be a repeat issuer in securitization, following break-neck growth that’s seen originations grow 1,000% since January 2018. The firm is now one of the UK’s largest fintech companies, with a balance sheet larger than media darling Monzo Bank — while the securitization market is becoming increasingly welcoming to fintech firms.
-
Once a benchmark ABS sector, credit card bonds experienced a dramatic decline in issuance last year, leading to big drop in trading activity that is expected to continue in 2020. -
Nordea has agreed a €5.1bn risk transfer securitization of corporate and small and medium-sized enterprise loans, to close in January. It is Nordea's second synthetic risk transfer deal and the first since it redomiciled into Europe’s Banking Union, which has given it a lead regulator more supportive of synthetic securitization than the Swedish regulator.
-
NatWest Markets has become the latest dealer to join Spire, the repack notes platform.
-
Pagaya, an investment management firm with a focus on artificial intelligence and machine learning-led underwriting, closed a $200m consumer ABS this month, bringing the firm’s total issuance count to five deals in 2019.
-
Esoteric ABS is not quite so esoteric in the era of low interest rates. With anaemic yields and low economic growth expected to continue, more investors have turned to the asset class over the past few years, and issuers are locking in the lower cost of capital while it lasts
-
As the late stages of the economic cycle drag on and uncertainty around the next recession grows, investors are turning to securitization as a shield against headwinds from other parts of the market, loading up on ABS to insulate portfolios from gyrations in corporate credit
-
Fitch Ratings this week issued an unsolicited commentary on the whole business securitization market, a sector that has grown rapidly and which the agency sees as luring investors with “overstated benefits” despite investment grade ratings.
-
A third instalment of the UK Department for Education’s current programme of student loan securitizations has stalled, a casualty of a tight general election and volatile politics. Concerns about whether securitization gives government good value for money are a potential obstacle, while investors will have to weigh up an instrument highly geared to the fate of the UK economy. Owen Sanderson and Tom Brown report.
