US Securitization Report 2021

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  • US risk transfer market finally opens up

    The risk transfer market has been growing for years, with new jurisdictions, new collateral types, and more issuers waking up to the potential of the tool. But while investors welcomed debut deals from Canada, Japan, and Mexico, there was always one country which was the biggest prize of all. Last year, finally, the US stirred for real, with a deal between JP Morgan and PGGM hopefully firing the starting gun on a major market expansion. Owen Sanderson reports.

  • Yield hunt pushes investors towards esoterics, private ABS

    The rapid economic recovery from the pandemic is causing yields to tighten sharply in the securitization market, pushing investors to explore more esoteric ABS sectors and even private credit. Jennifer Kang reports.

  • CLOs: can the market handle the heat?

    US CLO deals are flooding into the market at a record pace, stretching bankers, lawyers and rating agencies to the limit and challenging the capacity of investors to absorb the heavy volume. There are no signs of slowing down but the oversupply of deals, alongside refinancings and resets, might eventually weigh on spreads, increase manager tiers and cause indigestion.

  • Team strength the key factor in ABS

    As part of GlobalCapital’s awards survey, we asked securitization participants what they wanted from their banks. The results emphasized the importance of market knowledge, more than anything else. Other important qualities sought after included strength of the team and their ability to deal in difficult market conditions, regardless of sector. League table positions mattered less. We also asked you what your outlook was for the second half of 2021. Most expect ABS, RMBS and CMBS spreads to remain stable, but there’s also a sizable number of folks who believe spreads may either tighten or widen slightly. The only exception was expectation for CLO spreads, which very few expect will widen. A big thank you to those who participated in the survey. We’d welcome any suggestions on how we can improve next year!

  • US Securitization Awards 2021: Winners

    GlobalCapital is delighted to reveal the winners of its 2021 US Securitization Awards, where we seek to recognize the most notable and innovative deals, banks and market participants of 2020. The vast majority of awards were voted on by the market, from shortlists compiled by GlobalCapital’s editorial team. In compiling the shortlists, we took feedback from the market through a survey, and in direct discussions, studied league tables, submissions and other data. Then, we picked out lists of credible winners for each category, all of which would have been richly deserving of an award.

  • RMBS Deal of the Year — Nomura

    RMBS deals of the year are often innovative in one form or another. But they typically only boast one or perhaps two fresh features. Investors looking at the Nomura-led Cascade Funding Mortgage Trust 2020-AB1 had to use both hands to count the structural innovations. The $285.8m reverse mortgage transaction from Waterfall Asset Management was the clear winner in 2020, impressing investors, analysts and other issuers with its groundbreaking structure.

  • Innovative Securitization Deal of the Year — Connecticut Avenue Securities-Seasoned B Transaction

    We had an abundance of excellent candidates for this award. Yet in a year when the pandemic dominated markets, we wanted to recognise a transaction that not only showed structural flair, creativity and capital markets excellence in solving a problem for a client, but which successfully navigated extremely challenging market conditions at the same time. Congratulations to Fannie Mae and to structuring lead Nomura for Connecticut Avenue Securities-Seasoned B Transaction.

  • ABS Deal of the Year — Global Jet Capital: Business Jet Securities 2020-1

    Global Jet Capital spent many years in meeting after meeting and conference after conference explaining to investors a simple truth - that business aviation is its own market entirely. In 2020, the message hit home. The commercial sector remained in disarray even after lockdowns ended. Business jet travel bounded back sharply. Commercial aviation ABS investors were exposed to firms whose very existence was in doubt. Business aviation ABS investors were exposed to wealthy individuals and successful firms in an array of different industries. At the height of the pandemic while commercial ABS hit collateral triggers, Global Jet Capital hit the primary market with a transaction the market overwhelmingly voted ABS deal of the year.

  • Esoteric ABS Bank of the Year — Guggenheim Securities

    There’s a saying that once is luck, twice is coincidence, and three times is a pattern. While we don’t wish to become the in-house newspaper of Guggenheim Securities, once again, following victories in 2019 and 2020, the firm has exceeded our expectations when it comes to the depth, breadth and quality of its securitization activities, and for that reason, we have chosen to award it Esoteric ABS Bank of the Year.

  • Esoteric ABS Issuer of the Year — Affirm

    Analysts have long viewed point of sale (POS) as a potential new frontier for the consumer ABS sector. In July 2020, with concern over the pandemic’s long-term economic impact still rife, Affirm crossed that frontier with a deal that left no doubts about investor confidence.

  • Securitization Rating Agency of the Year — Kroll Bond Rating Agency

    Kroll Bond Rating Agency (KBRA) has always had a culture of intellectual curiosity. Since its foundation in 2011, the search for new challenges and frontiers has led the firm to all corners of securitization. From areas as disparate as single-family rental and commercial real estate NPLs to marketplace lending and solar. Now celebrating its 10th anniversary, the firm is active across a wide array of structured finance areas, including ABS consumer lending, CMBS, MBS, and CLOs, as well as esoterics such as aviation, and whole business securitizations.

  • Broadly Syndicated CLO Manager of the Year — GoldenTree Asset Management

    Many CLO managers went into 2020 aggressively positioned, with a high percentage of portfolio assets rated triple-C and on the cusp. When the pandemic hit, a wave of downgrades drove these same managers into bouts of forced selling and severely limited purchases of new assets. But not GoldenTree Asset Management.

  • Best ABS Law Firm and Best RMBS Law Firm — Mayer Brown LLP

    Mayer Brown’s strategy is to have genuine strength, depth and expertise across all securitization asset classes. The firm employs over 100 lawyers specializing in structured finance, works on well over 250 deals a year and regularly tops the league tables. This ability to combine comprehensive breadth with deep-seated expertise earned it not one but two awards from the market in 2020: best ABS Law Firm and best RMBS Law Firm.

  • Hedge Fund Investor of the Year and RMBS deal of the Year — Waterfall Asset Management, LLC

    Waterfall Asset Management is one of the largest structured product-focused alternative investment managers by assets under management. It is a testament to the firm’s skill, dedication, and innovation that this year it won awards both as issuer – RMBS deal of the year – and as hedge fund investor of the year. Waterfall manages approximately $9.5bn of assets across a variety of co-mingled funds, funds-of-one, separately managed accounts, a publicly-traded REIT, and a private equity fund.

  • Recognised by the market as Accounting Firm of the Year — Deloitte & Touche LLP (Deloitte)

    If there was ever a year when the confidence and insight of a first-rate accounting firm was particularly needed, it was 2020. Facing stiff competition from its peers, Deloitte’s depth and breadth of experience and expertise in structured finance was called on and recognised by the market as Accounting Firm of the Year across multiple sectors.

  • Middle Market CLO Manager of the Year — Golub Capital

    Golub Capital has won the GlobalCapital 2020 awards for Middle Market CLO Manager of the Year and Middle Market CLO Deal of the Year. These awards continue the firm’s long track record of market leadership in middle market CLOs. They also reflect the power and resilience of Golub Capital’s sponsor finance platform through the Covid-19 crisis. The firm has been the top middle market CLO issuer by volume for the past eight years, according to Creditflux data.

  • Securitization Data Provider of the Year — Moody’s Analytics

    When the 2007-8 crisis hit, appetite for analytics using macro forecasts to project tranche-level impacts across structured finance was fairly limited. There were models that could forecast the performance of residential mortgages, but few issuers or investors saw the need to try to determine how, for example, unemployment might affect a specific RMBS tranche.

Commercial director of events: Daniel Elton

Telephone: +44 (0)20 7779 7305

 

Publisher, special projects: Ashley Hofmann

Telephone: +44 (0)20 7779 8740