RMBS

  • 'Aggressive' underwriting eyed

    UK RMBS remains 'robust' in face of Brexit

    While the UK buy-to-let (BTL) sector has suffered under new regulatory policies and Brexit uncertainty, market participants believe it still has room to expand in terms of new lenders and products. This was according to panellists at a recent Fitch conference that also suggested that more aggressive underwriting practices, such as extended loan terms, could be a concern for the .......

    Talking Point 17 October 2018

  • Hurdle cleared

    First post-crisis RMBS for Wells Fargo

    Wells Fargo is in the market with its first post-crisis prime US RMBS. Named Wells Fargo Mortgage Backed Securities 2018-1 Trust, the US$441.25m deal securitises 660 first lien residential mortgage loans.

    Moody’s has assigned preliminary ratings of Aaa to the class A1 to class A16 notes, Aa1 to the class A17 and A18 notes, Aaa to the class .......

    News 15 October 2018

  • Market moves update

    OFS equity investment

    OFS Credit Company has disclosed that it has invested in the equity tranches of 19 CLOs, 17 of which have a reinvestment period ending in 2022 or beyond, for a total cost of US$43.6m (US$53.4m principal amount). The move follows OFS Credit’s IPO, which closed on 10 October and resulted in net proceeds of US$50m. OFS Capital .......

    Market Moves 15 October 2018

  • SMBC debuts

    Structured covered bond programme readied

    Sumitomo Mitsui Banking Corp (SMBC) is prepping a €20bn dual-recourse structured covered bond programme, marking the emergence of a new name and a new jurisdiction to the market. The cover assets comprise triple-A rated Japanese RMBS originated by the bank and the deal features an innovative total return swap (TRS) mechanism.

    Moody’s has assigned a provisional long-term rating of Aaa .......

    News 15 October 2018

  • Market moves - 12 October

    Company hires and sector developments in structured finance

    Cliff edge concerns

    ISDA has published a paper highlighting widespread concerns in Europe that the UK may withdraw from the EU without a withdrawal agreement under Article 50 of the Treaty on European Union and without any transition, or implementation period, to allow market participants time to adjust. The paper sets out why a ‘no deal’ scenario has the potential .......

    Market Moves 12 October 2018

  • Secondary ticking up

    European securitisation market update

    A handful of BWICs are out for the bid today as activity in the European ABS secondary market picks up. Of note, the SILVA 2017-1UK A auto bond – with an original size of £80.8m - is set to be auctioned at 2pm London time today.

    “Auto ABS is holding up quite firm and the sector is .......

    Market Reports 12 October 2018

  • Trading opportunities

    Credit risk transfer continues to evolve

    Freddie Mac’s recent STACR 2018-DNA3 RMBS marked a further evolution of its credit risk transfer programme in terms of structure and leverage. As the sector continues to mature, a number of different trading opportunities are emerging.

    In a first for STACR deals, the DNA3 transaction extended the term from 12.5 years to 30 years, with a 10-year call .......

    News Analysis 9 October 2018

  • Primary surge

    European ABS primary market update

    European primary ABS activity is finally picking up. The PBD Germany Auto ABS transaction is expected to price either tomorrow or Wednesday, while the latest RMAC RMBS has grabbed the spotlight.

    “The market is much busier this week than it was last week,” one trader confirms. “The secondary market is still quiet, but primary has picked up a .......

    Market Reports 8 October 2018

  • Market moves - 5 October

    New hires and company developments in the structured finance sector

    Europe

    Apollo Global Management has named Brigitte Posch md, head of emerging markets in London. She was previously global head of emerging markets corporate credit at Barings Asset Management.

    Reed Smith has hired Kevin-Paul Deveau as a partner to its financial industry group in London. Deveau joins from Dechert and will focus on advising lenders, general partners, ......

    Market Moves 5 October 2018

    Premium Content

  • Heavy supply?

    European primary ABS market update

    A new RMAC UK non-conforming RMBS has been announced, while the BPCE Home Loans 2018 deal is expected to be sized at almost €1bn. Ford’s latest German Globaldrive auto deal is also attracting some attention in the European primary ABS market.

    “The RMAC 2 deal will set the tone for the European ABS market going forward,” says one .......

    Market Reports 5 October 2018

  • ABS lull

    European ABS primary market update

    The European ABS primary market is seeing a lull in activity, which is leaving some traders uncertain as to what the final quarter of the year will bring.

    “I’m seeing a little bit of primary market activity, mostly dealer to dealer or seller to dealer,” says one trader. “It’s pretty quiet; I’m not really sure why.”

    The .......

    Market Reports 3 October 2018

  • Automated validation

    Mobile app streamlines RMBS underwriting

    Atom Bank is readying its debut UK prime RMBS. Dubbed Elvet Mortgages 2018-1, the £571.58m transaction is believed to be the first to securitise loans originated via a mobile phone app interface.

    Atom Bank developed the app to streamline the underwriting process by automating validation, allowing it to compete against more traditional lenders. “Atom’s app is not used .......

    News 2 October 2018

  • Market moves - 28 September

    The latest hires and company developments in the structured finance market

    Canadian pension partnership

    Canada Pension Plan Investment Board (CPPIB) announced today that its wholly-owned subsidiary, CPPIB Credit Investments, is broadening its portfolio through new investments in equity tranches of CLOs alongside experienced CLO asset managers. CPPIB Credit’s initial partnership in CLO equity investing will be with Sound Point Capital Management based in New York. CPPIB Credit will invest US$285mn in a .......

    Market Moves 28 September 2018

  • Funding options

    Charles Street securitisation increased

    Together has increased its Charles Street Conduit Asset Backed Securitisation 1 (CABS) to £1.25bn through refinancing and increasing the size of the facility. The maturity of the facility has also been extended from January 2021 to September 2023.

    The maturity extension is designed to provide substantial depth to the group’s funding profile, increasing the weighted average maturity from 3.3 years .......

    News 28 September 2018

  • Primary focus

    European ABS and RMBS market update

    Few BWICs were out for the bid in the European secondary ABS market this week, with light trading activity due to the high volume of selling seen during the summer.

    “The Tower Bridge RMBS print moved the market a bit wider, but now spreads are tightening again,” says one trader. “The Tower Bridge senior notes priced at 120bp .......

    Market Reports 28 September 2018

  • Market moves - 21 September

    All the latest company developments and new hires in the structured finance sector

    Acquisitions

    HPS Investment Partners has acquired Tålamod Asset Management. HPS will retain Tålamod's investment team and other employees based in Dallas, while Andersen Fisher, founder and managing member of Tålamod, will join HPS as md. Kyle Mapes and Jay Steen will join HPS as executive directors, after joining Tålamod in 2008. All employees of Tålamod will become HPS employees .......

    Market Moves 21 September 2018

  • Aussie slow-down

    Australian RMBS primary market update

    Activity in the Australian RMBS primary market is slowing down due to overcrowding. Four Australian lenders are currently in the market with new deals.

    Liberty Financial and Pepper Homeloans are prepping non-conforming RMBS, while RedZed Lending Solutions is prepping a mixed prime/non-conforming deal and Credit Union Australia is marketing a prime transaction. “The regular issuers are operating in .......

    Market Reports 19 September 2018

  • 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

  • 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

  • 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

  • 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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