CLOs
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Widening spreads eyed
US CDO secondary market update
Several ABS CDO bonds are expected to be in high demand today, which have not been prevalent on the secondary market for several months. Trups CDO paper has been more common on BWICs.
“When Trups CDO bonds come around, there is a lot of interest,” says one trader. “But they are not predictable, unfortunately.”
Meanwhile, mezzanine CLO .......
Market Reports 20 September 2018
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Irish RMBS focus
European ABS market update
A rare Irish non-conforming RMBS has caught the attention of European ABS market participants, following the deal’s roadshow last week.
“The Dublin Bay Securities senior notes are being talked at around 65bp, with the deal expected to price soon,” says a trader. “In comparison, proper prime senior RMBS paper would typically price at around 12bp or 13bp.”
Market Reports 18 September 2018
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SCI Start the week - 17 September
A look at the major activity in structured finance over the past seven days
Pipeline
ABS is still dominating the pipeline, with several deals coming from the auto space.
These include: US$534.032m ARI Fleet Lease Trust 2018-B, US$1.362bn GM Financial Automobile Leasing 2018-3, US$327.87m Navistar Financial Dealer Note Master Owner Trust II 2018-1, US$407.83m Prestige Auto Receivables Trust 2018-1
In non-auto ABS there are also a number of transactions waiting to price: US$809.93m CNH .......
News 17 September 2018
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Preference for yield
Conference delays new issues
The US ABS secondary market is seeing a big demand for higher-yielding sectors like renewables, even if it means giving up liquidity, according to market sources.
According to one trader, firms are also holding off from bringing new issues because of ABS East, resulting in a market slow down until the conference.
The source adds however that many deals are .......
Market Reports 14 September 2018
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Market moves - 14 September
New hires and company developments in the structured finance sector
CDS ETF Launched
Tabula has launched a European CDS ETF which offers passive exposure to European credit through an index tracking the corporate CDS market.
CMBS downgrade review
Moody’s has placed on review for downgrade all the notes in the UK CMBS Housing Association notes issued by Finance for Residential Social Housing (FRESH), affecting approximately £932m .......
Market Moves 14 September 2018
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Euro ABS activity surges
Investors finding value across asset classes
The ABS secondary market has been very BWIC driven with large volumes coming through. A Greek RMBS is also attracting attention amid a greater focus on European ABS.
A trader comments on ABS activity in Europe: “The most interesting thing I’ve been seeing is the large Grifonas RMBS. The senior, now sized at around €345m, has been on BWICs for two .......
Market Reports 14 September 2018
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US CLO reissue caution advised
US CLO arrangers are being cautious in terms of how they bring and announce actions in the next two months.
“Investors know there’s lots of deals getting done in September and October, so there are a lot which are not being announced or are being done in secret,” says a trader.
Many deals made in the last week are being .......
Market Reports 13 September 2018
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US CLO secondary spikes
The US CLO market is seeing a big spike in secondary market activity this week ahead of ABS East and expected reset activity.
“There’s over US$500m on BWICs today”, says a trader, “which is the busiest day in several months. I would guess it’s because of the ABS east conference on the following Monday…people are trying to get stuff done before .......
Market Reports 12 September 2018
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Short duration in demand
Spreads diverge between long and short CLO paper
The volume of US paper in the secondary CLO market is down in the first week of September, with spreads diverging between long and short paper.
“At this stage,” says a trader, “it’s hard to find short paper as people don’t want to sell it because it’s very competitive to buy. For the longer paper spreads are widening .......
Market Reports 11 September 2018
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Market moves - 7 September
New hires and company developments in the structured finance industry
CRT expert wanted
Banca IMI is hiring a senior risk transfer solutions structure for its Milan office. The bank wants a candidate with experience in capital markets and investment banking with a top tier Italian or European investment bank, consultancy firm, rating agency, fund or asset manager and ideally with experience of origination activities and analysis experience of tier one .......
Market Moves 7 September 2018
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Increased obligations weighed
ESMA outlines expanded reporting requirements
ESMA last month published final draft technical standards on the new reporting requirements to be implemented under the Securitisation Regulation (SCI 24 August). The standards - released ahead of the 1 January deadline - are set to usher in new levels of due diligence required on the part of the seller, meaning investors will expect more information to .......
News Analysis 6 September 2018
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Market moves - 31 August
The latest hires and company developments in the structured finance market
Acquisition
Moody’s Corp is set to acquire all outstanding shares of Reis in an all-cash transaction valued at approximately US$278m. By combining Reis’s extensive data with Moody’s Analytics’ specialised capabilities, the firm aims to enhance analytical practices in the CRE market and contribute to the efficiency and liquidity of capital flows. Under the terms of the merger agreement, .......
Market Moves 31 August 2018
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Market moves - 24 August
The week's structured finance hires and company developments, all in one place.
Consent solicitation
NN Bank has issued a consent solicitation seeking investor approval for the early redemption of the Hypenn 3 Dutch RMBS, of which the class A1 tranche has already been redeemed. The class A2 tranche has an outstanding balance of €467m and a FORD of 17 June 2020, according to Rabobank credit analysts. Together with Hypenn 3, NN Bank’s Arena 2014-2 .......
Market Moves 24 August 2018
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CLO issuer explores new ground
Blackstone/GSO in middle-market first
GSO Capital Partners, a Blackstone subsidiary, is marketing its first CLO backed by a portfolio of primarily first lien, senior secured middle-market loans. The US$510.71m transaction, dubbed Diamond CLO 2018-1, will also include some allocation to broadly-syndicated speculative grade senior secured term loans.
S&P has assigned provisional ratings on the transaction of triple-A on the US$277.50 class A-1 .......
News 23 August 2018
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Firms favour floating rate
Investors find value in range of SF asset classes
US investors are seeing relative value in a number of pre- and post-crisis securitised asset classes, including non-agency legacy RMBS, TruPS CDOs and US BSL CLOs. While firms’ allocations to different sectors may vary, the overriding theme is a move away from fixed rate products, with further interest rate rises expected.
As a result, floating rate products are of growing .......
News Analysis 22 August 2018
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Market moves - 17 August
Company developments and new hires in the structured finance sector
Acquisitions
Vistra has completed the acquisition of the corporate services business of Deutsche Bank’s global transaction banking division. The corporate services business will now be rebranded under the Vistra umbrella. The acquisition broadens the company’s presence in seven of the existing locations across Europe, the Cayman Islands and Mauritius, providing further scale and expertise in these jurisdictions and involves management .......
Market Moves 17 August 2018
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SMEs supported
Supranationals driving new credit ecosystem
A new ecosystem is gaining traction in the securitisation market, with supranational institutions stimulating organic origination by non-bank lenders. By facilitating the flow of credit and acting as a bridge to the capital markets, the prevalence of their activity – especially in the SME sector – is creating a new sub-category of transactions.
Supranational institutions are a key .......
News Analysis 16 August 2018
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Market moves - 10 August
Company developments and new hires in the structured finance sector
CDOs transferred
Dock Street Capital Management has replaced Deerfield Capital Management as collateral manager of the Knollwood CDO and Mid Ocean CBO 2001-1 transactions. Moody’s has confirmed that the move will not impact its ratings on any of the notes issued by the issuers. For more CDO manager transfers, see SCI’s database.Effective 2 August, Highland Capital Management .......
News 10 August 2018
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Second Magdalena deal priced
Santander SME portfolio attracts further investor interest
Santander has completed its second FT Pymes Magdalena risk transfer transaction. The €166.3m CLN references a €2.5bn Spanish SME portfolio and pays three-month Euribor plus 8.85%.
The portfolio comprises a diversified and granular portfolio of Spanish SMEs -including self-employed borrowers - a market where Santander holds a dominant position. Protection has been bought on 95% of the reference portfolio.
The .......
News 8 August 2018
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Market moves - 3 August
Company developments and new hires in the structured finance sector
Acquisitions
News 3 August 2018
Savills Investment Management is set to acquire a 25% interest in DRC Capital. In addition, the partners of DRC have granted Savills Investment Management a call option to acquire the remaining 75% interest in DRC on the third anniversary of the completion of the initial transaction. Dale Lattanzio, ceo and managing partner of DRC, will join the board of Savills .......
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Market moves - 27 July
Company developments and new hires in the structured finance sector.
Acquisitions
American Mortgage Consultants (AMC), has announced the acquisition of certain personnel and the operations center of Des Moines, Iowa-based The Barrent Group. This transaction will establish a market presence for AMC in the Midwest and adds more than 50 residential mortgage professionals to its platform, further enhancing the firm’s client service capabilities. AMC plans to hire up to 150 .......
Market Moves 27 July 2018