Securitization - US Archive

  • ABS investors weigh options in Hertz bankruptcy

    ABS investors weigh options in Hertz bankruptcy

    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.

  • Soaring CMBS delinquencies a preview of pain ahead

    Soaring CMBS delinquencies a preview of pain ahead

    Loans packaged into US commercial mortgage-backed securities (CMBS) delinquent by 30 days or more have quadrupled, according to remittance reports published in May, as the economic devastation of the coronavirus pandemic ripples through the financial system. Market participants fear record levels of distress if borrowers that are now in their grace periods add to the figures in the coming month, writes Max Adams.

  • Loanpal preps first solar ABS since outbreak

    Loanpal preps first solar ABS since outbreak

    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.

  • High earners draw investors to student loan refi ABS

    High earners draw investors to student loan refi ABS

    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.

  • Lenders old and new scramble for 'digital first' in era of Covid-19

    Lenders old and new scramble for 'digital first' in era of Covid-19

    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.

  • CMBS issuance flows but pre-pandemic loans worry investors

    CMBS issuance flows but pre-pandemic loans worry investors

    CMBS issuers have come back to market in recent weeks, bringing deals structured to entice investors with features meant to withstand the shocks of the pandemic. But investors say that there are still concerns around adding exposure to commercial mortgages written before the crisis.

  • CNH prices equipment ABS, sees toughest period ahead

    CNH prices equipment ABS, sees toughest period ahead

    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.

  • TALF benefits for ABS have mostly run out, investors say

    TALF benefits for ABS have mostly run out, investors say

    The Federal Reserve’s Term Asset Backed Securities Loan Facility succeeded in boosting investor confidence and providing a backstop to further spread widening, but sources say that key limitations in the scope of the programme, even with the most recent expansion last week, mean that the benefits have mostly already been felt.

  • Covid economy boosts outlook for subprime auto, investors say

    Covid economy boosts outlook for subprime auto, investors say

    As the near term outlook for economic reopening remains uncertain, players in the market are expecting a rise in the demand for cars, as delivery services become more heavily relied upon and as a result of hesitation around public transportation that could persist long after the pandemic subsides. In the Covid economy, investors say that supportive fundamentals and well protected ABS structures are making subprime auto bonds an attractive buy.

  • Vivint drops ABS offering "on the cusp of closing"

    Vivint drops ABS offering "on the cusp of closing"

    Vivint Solar pivoted away from a solar securitization that was "on the cusp of closing" before the onset of the Covid-19 pandemic, in favor of an alternative financing structure that it hopes to close in the second quarter.

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