Complete news archive
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Credit card issuance on a roll
American Express has returned to the ABS market after an 18-month absence with a pair of credit card securitisations accounting for US$1.15bn of paper. The move comes after approximately US$5.5bn was placed by four other credit card issuers in January (see SCI's primary issuance database).
Both the US$571.4m American Express Credit Account Master Trust Series 2017-1 and US$574.8m .......
News 14 February 2017
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Farm forecast is ABS 'credit positive'
US farm net cash income is predicted to rise 1.8% to US$93.5bn this year, ending three consecutive years of annual declines. This forecast by the US Department of Agriculture (USDA) is credit positive for US ABS tied to agricultural equipment loans, particularly transactions issued by John Deere Capital Corporation and CNH Industrial Capital, reckons Moody's.
Delinquencies among underlying loans have .......
News 14 February 2017
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Euro secondary unchanged
Activity in the European securitisation secondary market is little changed from that seen in recent weeks.
Flows remain light across all sectors as sellers remain largely absent amid continuing positive market sentiment. The few BWICs that do crop up are still met with very strong demand and secondary spreads are consequently holding tight.
There is currently one BWIC on the .......
SCIWire 14 February 2017
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SCI Start the Week - 13 February
A look at the major activity in structured finance over the past seven days.
Pipeline
The recent trend of ABS and RMBS dominating pipeline additions continued last week. There were seven ABS and four RMBS added to the list along with a single CMBS.The ABS were: US$664.45m Ally Master Owner Revolving Trust Series 2017-1; US$953.78m AmeriCredit Automobile Receivables Trust 2017-1; US$225m First Investors Auto Owner Trust 2017-1; A$251.75m Flexi ABS Trust 2017-1; .......
News 13 February 2017
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Positive start for Aussie issuance
Bank of Queensland last week priced its upsized A$1bn Series 2017-1 REDS Trust prime RMBS, the first Australian securitisation to hit the market in 2017, with the senior tranche seeing significant demand. Four transactions from the jurisdiction remain in the pipeline, including a non-conforming RMBS and a consumer ABS (see SCI's pipeline).
Rated by Fitch and S&P, the .......
News 13 February 2017
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High-balance RMBS marketing
JPMorgan is tapping the RMBS market with a US$1.02bn transaction. Dubbed JPMorgan Mortgage Trust 2017-1, the deal is backed by 1,645 30-year fully-amortising fixed-rate mortgage loans with different origination characteristics to previous JPMMT RMBS.
JPMMT 2017-1 differs from previous RMBS issued by JPMorgan because the pool consists of a large percentage (36.3% across 724 loans) of high-balance conforming fixed-rate mortgages .......
News 13 February 2017
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Regulatory divergence on the cards?
President Trump continues to assert his desire to roll back regulation imposed after the financial crisis and dismantling the Dodd-Frank Act is high on his agenda. There are concerns that should it be repealed - either as a whole or in part - greater divergence could occur between the US and European securitisation markets, giving the US a competitive advantage.
News 10 February 2017
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Second shelf brings non-prime deal
Invictus Residential Pooler is in the market with its debut securitisation (see SCI's pipeline). Following preliminary ratings from S&P, Kroll Bond Rating Agency and Morningstar Credit Ratings, it is the second shelf to issue a rated transaction backed by non-prime mortgages since the financial crisis.
The other shelf to have issued rated transactions backed by non-prime mortgages since .......
News 10 February 2017
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Liquid alternatives firm formed
Pacific Alternative Asset Management Company (PAAMCO) has entered into a strategic transaction to create a new liquid alternatives investment firm by combining with KKR Prisma. The new entity, which will operate under the brand PAAMCO Prisma Holdings, could be expected to invest in structured credit products.
Under the terms of the agreement, the entire businesses of both PAAMCO and KKR .......
News 10 February 2017
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Distressed vet heads new credit platform
BC Partners has recruited Ted Goldthorpe to lead its new credit platform, BC Partners Credit. The firm will pursue a strategy that identifies attractive opportunities in any market environment and across sectors, including stressed/distressed debt, asset-based lending and structured finance.
Previously president of Apollo Investment Corporation, Goldthorpe has been hired as a managing partner to launch and oversee BC Partners .......
News 10 February 2017
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Mariner makes market debut
Mariner Finance has hit the market with an inaugural US$225m consumer finance securitisation. Dubbed Mariner Finance Issuance Trust 2017-A, the transaction comprises 89,914 non-prime/subprime secured and unsecured consumer loans.
Provisionally rated by KBRA and S&P, the ABS comprises US$189m AA-/BBB+ class A notes, US$19.8m A/NR class Bs and US$16.2m BBB/NR class Cs. Mariner is both servicer and sponsor of the .......
News 10 February 2017
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Risk retention trends emerging
Different retention strategies have emerged for US CLOs and CMBS leading up to and since the implementation of risk retention rules on 24 December 2016, with varying benefits also arising, such as a perception of increased quality in such deals. For the broader ABS market, however, approaches are still taking shape.
There are five main strategies for risk retention: a .......
News Analysis 9 February 2017
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Leveraging NPL disposals
UniCredit is expected to use leverage in its planned €17.7bn NPL securitisation, dubbed Project Fino, in an attempt to bridge the bid/ask gap on the asset valuations with investors PIMCO and Fortress (SCI 14 December 2016). The first phase of the transaction - in which it will sell at least a 20% vertical tranche of the portfolio - will be .......
News Analysis 9 February 2017
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TGI Friday's taps market
TGI Friday's is in the market with a US$450m whole business securitisation. Dubbed TGIF Funding, the transaction is backed by royalties from 849 franchise locations and 54 company-operated restaurants.
The deal comprises US$50m class A1 notes and US$400m class A2 notes, both provisionally rated BBB/BBB- by KBRA and S&P. Barclays is sole structuring advisor and book-runner, while FTI Consulting is .......
News 9 February 2017
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US CLOs focus on equity
The bottom of the stack has been the main focus for US CLO secondary market this week.
"It's a snow day in New York today, so it could be pretty quiet with a few lists being cancelled," says one trader. "But so far this week we've seen a lot more equity than anything else - it has accounted for about .......
SCIWire 9 February 2017
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CMBS loans exposed to EO bankruptcy
Eastern Outfitters' chapter 11 bankruptcy filing could affect eight CMBS loans with a combined balance of US$134.1m. The largest exposure is the US$25.2m Blackstone Retail Loan securitised in WFCG 2015-BXRP, although strong occupancy for all affected properties is expected to mitigate the risk of default.
Morningstar Credit Ratings believes Eastern Outfitters may be counting on a buyer to take over .......
News 9 February 2017
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Euro ABS/MBS lighter
Volumes in the European ABS/MBS secondary market are lighter than last week.
"Secondary activity has slowed down again this week thanks mainly to there being a few relatively complicated new deals marketing and occupying a lot of attention," says one trader. "At the same time, the latest Towd Point priced tight for what it was, so there's plenty of appetite .......
SCIWire 9 February 2017
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DOE findings 'mixed' for SLABS
The US Department of Education's (DOE) determination that more than 800 career-training programmes are failing gainful employment accountability standards is credit negative for outstanding ABS backed by private student loans, says Moody's. By contrast, it is actually credit positive for future securitisations.
The gainful employment accountability standards evaluate borrowers' ability to service their student debt. Career-training programmes which repeatedly fail .......
News 8 February 2017
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Punch purchase proceeds
Patron Capital has purchased 63.31 million of ordinary shares in Punch Taverns at 180 pence per share through Vine Acquisitions, the bidco set up with Heineken UK to acquire Punch Securitisation A (SCI 22 December 2016). The shares became available after Emerald Investment Partners withdrew its rival offer for the pub operator last week.
The share purchase represents approximately 28.5% .......
News 8 February 2017
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Arranger league tables - 2016
1 January to 31 December
Arranger league tables 7 February 2017
'Atypical' ILS issuance tallied
At 20 transactions, 2016 saw the fewest number of catastrophe bonds brought to the market since 2009, according to Swiss Re's latest ILS Market Update. However, average deal size grew by nearly 20% on 2015 to approximately US$300m on "atypical" new issuance patterns (see SCI's primary issuance database).
For the first time, volumes in Q3 (at US$925m) were .......
News 7 February 2017