CLOs
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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 2019Premium Content
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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
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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
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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
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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
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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
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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
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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
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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
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CRE investor bulks out
Company hires and sector developments
CDX-linked ETF launched
Tabula has launched a new ETF, dubbed Tabula European iTraxx Crossover Credit Short UCITS ETF (EUR), providing short exposure to high yield European corporate credit. It takes exposure via iTraxx Crossover five year which references 75 equally weighted, sub-investment grade entities.
Digital asset platform bulks out
GetLoci, the global platform offering non-custodial, self-minted assets backed .......
Market Moves 5 March 2019
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Improved tone
European and US CLO market update
A better tone in the CLO market has emerged on both sides of the Atlantic post SFIG Vegas. Mezzanine tranches, in particular, have benefitted from a tightening trend.
The CLO market ended February roughly unchanged or, in some cases, a little softer versus the end of January, one trader notes. While CLO primary activity re-emerged over the course of last .......
Market Reports 5 March 2019
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Wave of opportunity
Investors capitalised on 4Q18 volatility in US CLO market
Volatility seen in the CLO market at the end of last year provided managers and investors with a wealth of opportunities, according to panellists at SFIG Vegas this week. Unfortunately, this volatility has contributed to a more muted and challenging issuance environment so far this year.
Angie Long, cio and portfolio manager at Palmer Square, commented that 4Q18 provided a .......
News 1 March 2019
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'Long term solution needed'
Day three from SFIG Vegas
The last full day at SFIG Vegas was again abuzz with strong attendance and widespread optimism.
One panel looked at UK firms looking to issue transactions into the US market. Brian Wiele, md at Barclays, commented that one of the steps needed at the moment to boost the sector is re-educating US investors on UK securitisations, as awareness of UK .......
News 27 February 2019
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Structured finance 'well positioned' for downturn
Second day at SFIG Vegas sees continued optimism
Day two at SFIG Vegas saw a bountiful turnout of attendees, all looking to hear the latest on structured finance and to meet the main movers and shakers in the industry. A standout panel looked at how structured finance is prepared for a turn in the turn in the credit cycle, while other notable discussions looked at the revival of .......
News 26 February 2019
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CLO manager shake-up
Company hires and sector developments
Derivatives continuity
Market Moves 26 February 2019
The US CFTC and the Bank of England have issued a joint statement aimed at reassuring market participants of the continuity of derivatives trading and clearing activities between the UK and US, after the UK’s withdrawal from the EU. The measures that will be in place by end-March include: information-sharing and cooperation arrangements to support the effective cross-border .......
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A strong start
Day one at SFIG Vegas
Moods appear to be running high at the start of SFIG Vegas 2019. Despite being only a half day, attendance already seems to be strong and the panels have so far been near to full.
A highlight of the afternoon was the the CRE CLO market update, where panellists spoke to a well attended room and generally voiced positive sentiments about .......
News 25 February 2019
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Law firm boosts derivatives capability
Company hires and sector developments
CLO firm promotions
Churchill has announced the promotion of Mat Linett, md, from deputy head of underwriting and portfolio management to head of underwriting and Eric Wieczorek to md, underwriting and portfolio management. Additionally, the firm announced several more promotions across the investment and finance teams, effective 1 March 2019.
Derivatives expansion
Dentons has expanded its derivatives practice with the .......
Market Moves 22 February 2019
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Tough stance
ESMA insists on private securitisation disclosures
On 31 January, ESMA published a document that amends its draft regulatory technical standards (RTS) on securitisation disclosures. The initial RTS covers both public and private securitisations and it was rejected by the European Commission, following a market backlash (SCI 5 October 2018).
The amendments take into account the Commission’s criticisms of the original RTS ......
News Analysis 22 February 2019Premium Content
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CLO partnership launched
Sector developments and company hires
CDS trends discussed
Mayer Brown has commented on trends in single-name CDS credit event determinations. It notes that the Sears CDS case cited “numerous examples of commercial practice and legislative history in support of the decision [and] raises serious questions as to the degree to which the determination committees (DCs) are (and will in future determinations be) influenced by such .......
Market Moves 21 February 2019
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Stand-out performer
Systematic role for structured credit
Funds focused on structured credit were, as a whole, stand-out performers in 2018. Of the 50 US structured credit funds tracked by Gapstow Capital Partners, 88% had a positive year, implying that there continues to be a role for structured credit more systematically in diversified credit portfolios.
The Gapstow Credit Index finished 2018 up by 1.5%, with steady .......
News Analysis 21 February 2019
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TruPS flurry
CLO activity expected to pick up post-conference
US CLO activity is relatively quiet after a long weekend but is expected to pick up after ABS Vegas. A flurry of TruPS CDO activity is keeping traders engaged.
A trader says the TruPS CDO market is currently "by appointment only" but highlights a portfolio of PRETSL B tranches - totalling US$87m - out for the bid tomorrow (See SCI's BWIC Calendar). Investor appetite .......
News 20 February 2019