Complete news archive

  • Inaugural online auto ABS prepped

    Sector developments and company hires

    Online auto ABS debuts

    Carvana, an online platform for buying used cars launched in 2012 by DriveTime Automotive Group, is marketing an inaugural securitisation. The US$338m transaction, dubbed Carvana Auto Receivables Trust 2019-1, comprises seven classes of notes provisionally rated by KBRA as triple-A on the class A1 and A2 notes, through to double-B on the class E notes.

    According ......

    Market Moves 15 March 2019

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  • Servicing strength

    Debut Spanish NPL securitisations anticipated

    The Spanish non-performing loan market is reaching maturation, with the first securitisations from the sector expected this year. Developing an appropriate servicing capacity in the country has played a key role in facilitating this process.

    “The fact that we envisage securitisation issuance going forward is a consequence of the maturity of the Spanish NPL market,” observes Antonio Casado, ......

    News Analysis 15 March 2019

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  • 'Steady stream' of STS deals needed

    Market reacts positively to inaugural STS ABS

    The market has generally reacted positively to the news that Volkswagen’s VCL 28 auto lease ABS transaction is the first ABS to receive the STS label. Some participants note, however, that more STS-verified transactions are needed to give the European sector the boost it needs after months of subdued activity.

    Rabobank’s ABS analysts comment that VCL 28 .......

    News 14 March 2019

  • Mixed performance

    Semi-annual NPL securitisation update debuts

    Moody’s has published the first in a series of semi-annual updates on European non-performing loan securitisations, which shows that six out of eight Italian NPL securitisations it has rated that have performance history are exhibiting cumulative gross collections around or below those anticipated by their business plan, while two exceed it. Cumulative gross collections for the Evora Portuguese NPL .......

    News 14 March 2019

  • A perfect storm?

    Expected volatility sees investors ramping up credit derivatives usage

    The growing belief among institutional investors across the US and Europe is that volatility is set to become more of a concern in 2019 and potentially the years ahead. As a result, a number of investors are ramping up their use of credit derivatives in order to manage this expected volatility, particularly in terms of their exposure to corporate .......

    News Analysis 13 March 2019

  • Formative stages

    Greek NPL momentum continues

    Of the investors surveyed in Ashurst’s latest global non-performing loan report, 39% state that they have already invested in Greece - a higher percentage than anticipated, given that the Greek market remains in its formative stages. This figure may be indicative of investors having acquired assets in Greece under single-name transactions or other smaller private transactions. Nonetheless, appetite remains .......

    News 13 March 2019

  • Auto ABS looks set to receive first STS verification

    Sector developments and company hires

    Auto ABS looks set to receive first STS verification

    The first European ABS that looks set to receive STS verification, by True Sale International’s STS Verification International, is being marketed by Volkswagen. The €719.9m auto lease ABS transaction is dubbed VCL Multi-Compartment, Compartment VCL 28 and is provisionally rated by Moody’s and Fitch as Aaa/AAA on the €705.7m class A notes .......

    Market Moves 13 March 2019

  • UMBS trades to be accepted

    Sector developments and company hires

    UMBS trades to be accepted

    In support of the Single Security Initiative, Fannie Mae will begin accepting forward Uniform Mortgage-Backed Security trades with a trade date on or after 12 March, 2019 and settlement dates on or after 3 June, 2019. The announcement follows confirmation on 7 March, 2019 from SIFMA that their To-Be-Announced (TBA) Guidelines Advisory Council approved revisions .......

    Market Moves 12 March 2019

  • Bright spot

    European ABS market update

    De Lage Landen’s newly mandated UK equipment lease ABS represents a bright spot in an otherwise “dull” European securitisation market. Both primary and secondary activity appear muted so far this week.

    Investor meetings for the £410m DLL UK Equipment Finance 2019-1 were set for yesterday and today. “The DLL deal is a bit different and brings some much-needed .......

    Market Reports 12 March 2019

  • R-PACE rulemaking proposals outlined

    Sector developments and company hires

    Credit line secured

    Foundation Home Loans has entered into a new £350m warehouse credit line with National Australia Bank to support the origination of new mortgages. The lender has also extended an existing warehouse, funded by Natixis and SMBC, by £100m.

    ILS

    Descartes Underwriting has hired Edern Le Roux as head of ILS and cat modelling. .......

    Market Moves 11 March 2019

  • Inaugural Italian CRE deal in the works

    Italian assets 'well-suited' to securitisation

    A Maltese first time issuer, Polymath & Boffin, is preparing a €166m securitisation, referencing a pool of Italian CRE loans valued at approximately €300m. Dubbed Polymath & Boffin REMS Italian Real Estate Securitization, the transaction is backed by a diverse portfolio of 58 Italian mainly-commercial properties, with four classed as unlikely to pay (UTP).

    Global Access Capital is .......

    News Analysis 11 March 2019

  • SCI Start the Week - 11 March

    A review of securitisation activity over the past seven days

    Market commentary
    A stronger tone emerged in the ABS market on both sides of the Atlantic last week.

    Mezzanine CLO tranches, in particular, saw a tightening trend (SCI 5 March). "We were seeing a Norinchukin bid of around 130bp versus a non-Norinchukin bid of around 145bp, making it difficult for any spread tightening to occur. However, the market .......

    News 11 March 2019

  • Servicing boost

    Intrum augments Greek presence

    Intrum is planning a purchase of a Greek debt servicing platform, which will act as a springboard for further non-performing loan transactions. However, it’s unclear whether the decision involves acquisition of a licensed debt servicing platform or setting one up from scratch.

    “It could be either. If we can find the right platform to purchase that would be .......

    News 8 March 2019

  • Merger opposed

    Company hires and sector developments

    Astra case development

    Judge Jennifer Frisch of the Minnesota District Court, Second Judicial District, has denied Goldman Sachs’ motion to dismiss the claims asserted against it by Kasowitz Benson Torres, on behalf of its client, Astra Asset Management, seeking termination of the Abacus 2006-10 synthetic CDO. The case is proceeding with discovery, with trial scheduled for October .......

    Market Moves 8 March 2019

  • Isolation issues

    DLT legal, operational challenges highlighted

    A number of legal and operational issues still need to be resolved before blockchain securitisations are likely to be publicly rated. How distributed ledger technology will isolate securitised assets is one major challenge.

    Of the five key rating factors that make up S&P’s analytical framework, for example, the agency highlights legal/regulatory and operational/administrative risks as the areas most .......

    News Analysis 8 March 2019

  • Stronger tone

    European ABS spreads tighten but supply muted

    There is a stronger tone in the European ABS market overall and there has been spread tightening across the board, from RMBS to CLOs. Supply is still low, however, especially in ABS.

    A trader says that a number of issuers in Europe are "ready to go", but they are still holding back as they await clarification around STS. The trader notes, .......

    Market Reports 8 March 2019

  • Control rights

    Synthetic CRE investors gain comfort

    Investors in risk transfer transactions referencing commercial real estate loans have become more comfortable with fewer control rights, following the inclusion of replenishment in the second wave of CRE capital relief trades last year. However, demand for greater control over such portfolios may arise if banks bring lumpier assets to market.

    According to David Wainer, partner at Allen & Overy: ......

    News Analysis 8 March 2019

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  • CDS reforms proposed

    Company hires and sector developments

    Australia

    Mortgage House has hired Steven Mixter as head of securitisation and structured finance. He was previously head of funding at Latitude Financial Services, responsible for maintaining its securitisation funding programmes.

    CDS reform proposal

    An ISDA working group has been discussing proposals to amend the 2014 ISDA Credit Derivatives Definitions to address issues relating to narrowly tailored credit events (NTCEs). NTCEs are arrangements with .......

    Market Moves 7 March 2019

  • Creative approach

    Definition of CRT criteria evolving

    As the drivers for banks to pursue risk transfer transactions have broadened over the last few years, lending criteria for the underlying assets have in turn become increasingly complex. Consequently, for structured or esoteric portfolios, capital relief trade issuers and investors are adopting a more creative approach to defining eligibility criteria and replenishment conditions.

    A standard capital relief ......

    News Analysis 7 March 2019

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  • REMIC route

    Unusual CRE CLO prepped

    Bancorp is in the market with an unusual static CRE CLO dubbed Bancorp 2019-CRE5. The US$518.3m transaction is structured as a REMIC trust, with no ramp-up or reinvestment provisions and a third-party investor acquiring the first-loss position.

    The securitisation’s cashflow waterfall is similar to those in CMBS pass-through deals and does not employ interest coverage or overcollateralisation cash diversion tests. .......

    News 7 March 2019

  • Deleveraging deal

    Bari SRT performance consistent with expectations

    Scope has determined that the performance of Banca Popolare di Bari’s last significant risk transfer transaction with the EIF (SCI 17 August 2018) has remained within its expectations. The sequential deleveraging of the transaction offsets the loss potential from a growing delinquency pipeline for the rated tranche, according to the agency.

    The financial guarantee provided by the EIF to .......

    News 6 March 2019
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