Article List

Starwood Pursuing Reverse-Mortgage Lender

Fri, 18 Oct 2019
Starwood Capital is in talks to buy Reverse Mortgage Investment Trust.Sources said the two companies could finalize a deal in the coming days, giving Starwood an instant presence as an originator of private-label reverse mortgages — and as an issuer of bonds backed by those accounts.As part of a larger company, meanwhile, Reverse Mortgage would be well positioned to boost both its lending and securitization volumes. The Bloomfield, N.J.,...



Oil-Drilling Suppliers Explore Securitization

Fri, 18 Oct 2019
Several companies that lease offshore drilling equipment to oil and gas producers are taking a hard look at securitization.Noble Corp., Transocean and Valaris are among the prospective issuers. Houston-based Valaris appears to be the furthest along, having already spoken to rating agencies and bankers about a deal that could hit the market in early 2020.Each of the companies would back its bonds with leases to large oil and gas producers...



China Enlists SFA to Help Open Market

Fri, 18 Oct 2019
China’s securitization industry is turning to the Structured Finance Association for help in modernizing its market and attracting foreign investors.SFA executive director Michael Bright, who returned from Beijing Oct. 11 following a week of meetings with Chinese regulators, said the trade group will publish a report outlining steps China can take to adopt international standards and open to U.S. investors.“China’s markets are...



JP Morgan Deal In the Clear

Fri, 18 Oct 2019
The Trump Administration appears to have given J.P. Morgan the green light for a novel type of risk-transfer mortgage securitization.Sources said both Treasury Secretary Steven Mnuchin and Comptroller of the Currency Joseph Otting were apprised of a pending “portfolio risk-transfer” transaction before J.P. Morgan began marketing the deal on Oct. 8.“Treasury is on board [with] it, and the OCC knew about it,” one source...



Delay Ending for NY Life Program

Fri, 18 Oct 2019
New York Life is moving ahead with a long-planned initiative under which it would work with issuers to structure asset-backed bonds to its specifications.The “originate-to-own” program went into development in 2015, but was slow to gain momentum — producing just two collateralized mortgage obligations in 2017 and 2018. But New York Life recently set out to find a director to oversee the effort, suggesting the insurer intends to...



Solar-Lease Debt Ripe for Refi

Fri, 18 Oct 2019
Securitizations of solar-power equipment leases are expected to pick up next year as lessors seek to refinance debt on older projects.Financing companies are aiming to lock in lower funding costs as spreads continue to tighten both in the asset-backed bond and bank-debt markets. Adding momentum to their securitization plans is a favorable change in the ownership structures of many systems installed prior to 2016.Large, commercial solar projects...



Non-QM Bonds Rally on Short Supply

Fri, 18 Oct 2019
The values of bonds backed by non-qualified home loans continue to climb on the secondary market.Two-year, triple-A-rated securities underpinned by accounts that fall outside the Consumer Financial Protection Bureau’s “qualified-mortgage” guidelines were trading this week at 85 bp over one-month Libor. That’s in 10 bp in just the past week, and 20 bp tighter than where spreads were in August.Traders said the rally largely...



Issuers Crowd Into Deal Pipeline

Fri, 18 Oct 2019
October is on pace to produce the highest monthly number of U.S. asset- and mortgage-backed bond deals so far this year.Including 20 transactions that were set to price this week, the monthly total stands at 57 offerings. That easily puts the market on pace to exceed the 63 issues completed in April — this year’s highest count so far, according to Asset-Backed Alert’s ABS Database.In September, 56 deals priced. January had the...



Borrower Downgrades Hit CLOs

Fri, 18 Oct 2019
Downgrades to Amneal Pharmaceuticals and LifeMiles caused a broad decline in asset quality for U.S. collateralized loan obligations in August.The median weighted average rating factor — a key indicator of borrower health — deteriorated by seven points for the month to 2853 for CLOs issued since the financial crisis with ratings from Moody’s, according to an index maintained by the agency.The impact was magnified for CLOs in...



C-PACE Lending Re-Starts in NY

Fri, 18 Oct 2019
After a revamp, New York State’s commercial Property Assessed Clean Energy financing program is about to start producing loans.The initiative, run by an entity called Energy Improvement Corp., dates back to 2009 but produced just $2.9 million of financing in its original format. Energy Improvement, a not-for-profit local development corporation, responded by halting originations this February. Several months later, it released a new set of...



Fleet-Lease Offering in the Works

Fri, 18 Oct 2019
(SEE CORRECTION BELOW) Element Fleet Management is readying its next automotive fleet-lease securitization.The deal, with an expected principal balance of nearly $1 billion, is set to price in the coming days. It will be the third transaction of the year for the Toronto firm, which historically has been good for 2-3 offerings per year.Since entering the market in 2015, Element has issued 11 deals totaling $9.6 billion via its Chesapeake Funding...



Subprime Autos Reverse Loss Trend

Fri, 18 Oct 2019
Losses fell among securitized pools of subprime auto loans during the month ended Sept. 15.The 6 bp decline brought annualized losses for those portfolios to 9.37%, ending an upward trend that began in June, according to an index maintained by Fitch. Delinquencies fell 54 bp to 5.39%. Fitch is projecting that overall subprime-loan performance could remain shaky due to greater-than-anticipated weakness in the pools of several smaller issuers....



The Grapevine

Fri, 18 Oct 2019
Structured-finance investment head Bill Moretti parted ways with MetLife on Sept. 15, and apparently has set out to work in a securitization-focused technology role. Moretti was a managing director in MetLife’s Whippany, N.J., office. He worked at the insurer since 2000, most recently overseeing a huge portfolio of asset-backed securities, residential mortgage bonds and commercial mortgage paper. Earlier, he worked at Paine Webber, Arthur...



The Grapevine

Fri, 18 Oct 2019
Former Natixis banker Brock Wolf will take a senior post on SunTrust’s structured-product underwriting desk in New York at the end of this month, covering a range of deals. Wolf worked at Natixis from 2013 to this July as an executive director focused on financing of unusual assets, including Property Assessed Clean Energy loans. He also has spent time at Brevet Capital, NewOak Capital, Garrison Investment, UBS and Lehman Brothers....



The Grapevine

Fri, 18 Oct 2019
Former Podium Mortgage Capital president Joe D’Urso is launching a shop that will acquire or form partnerships with with technology companies that write digital mortgages. Private equity firm Lee Equity is backing the New York-based effort. D’Urso worked at Podium from August 2018 to this June. His former employers also include Pretium Partners and Clayton Holdings, which purchased his Green River Capital in...



The Grapevine

Fri, 18 Oct 2019
Veteran fixed-income valuation specialist John Lynch retired last week. Lynch most recently was stationed in IHS Markit’s New York office since yearend 2017, assigning values to asset- and mortgage-backed securities. He worked in a similar capacity at BNY Mellon before that. His work history also includes stops at RiskSpan, AllianceBernstein, BlackRock, AIG, Bloomberg, UBS, EJV, S&P and Laidlaw Adams, where he started in...



The Grapevine

Fri, 18 Oct 2019
Solar Mosaic is seeking an associate for its capital-markets team in Oakland. The recruit would work on financing initiatives including sales of the company’s solar-power equipment loans and its asset-backed bond program, which so far has produced five deals totaling $1.3 billion. Mosaic is focusing on candidates with 2-5 years of experience.



The Grapevine

Fri, 18 Oct 2019
Principal Jim Aronoff has left accounting firm Baker Tilly to become a New York-based partner at Forensic Risk Alliance, where he started this month. Aronoff had been at Baker Tilly since 2016. His career, dating back to the early 1980s, also includes stops at Duff & Phelps, FCS Advisors and Brevet Capital. At Forensic Risk, his duties include aiding financial institutions with risk management, asset valuation, regulatory compliance, strategy and...



The Grapevine

Fri, 18 Oct 2019
Information Management Network is zeroing in on January 2020 to hold its “Asian Structured Credit Summit” in Hong Kong. The conference originally was scheduled for Oct. 17-18 at the JW Marriott hotel, but was canceled due to political protests near the venue.



The Grapevine

Fri, 18 Oct 2019
Software company Carta has hired a director of operations for its financial-product division, whose customers include players in the structured-finance market. Claire Hillier joined the San Francisco outfit’s New York office this month from Borro Private Finance, which writes loans against luxury goods. She had started there in 2012, after holding a series of positions at Lloyds Banking and...



JP Morgan Revives Risk-Transfer Initiative

Fri, 11 Oct 2019
J.P. Morgan is trying again to reduce its regulatory capital requirements through an offering of risk-transfer bonds.The planned transaction follows a 2017 ruling by the Comptroller of the Currency that J.P. Morgan couldn’t claim capital relief via two “portfolio risk-transfer” transactions it had completed the year before. Where those deals were directly collateralized by mortgage pools, however, the bank has structured the new...



KKR, Sculptor Map Non-QM Bond Programs

Fri, 11 Oct 2019
KKR and Sculptor Capital each are working to buy and securitize home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards.KKR is just starting to accumulate the accounts, with an eye toward completing an initial bond deal by midyear 2020. Spearheading the push are principal Elena Plesco and associate Steve Sun, who have appeared at recent conferences including Information...



Redwood Courting Fix-and-Flip Originator

Fri, 11 Oct 2019
Redwood Trust is attempting to buy an originator of fix-and-flip loans, with an eye toward funding the business through securitization.The Mill Valley, Calif., REIT expects to finalize a deal of perhaps $425 million by yearend. While there’s no official word on an acquisition target, sources are pointing to CoreVest Finance, a portfolio company of Fortress Investment.Fortress, the private equity subsidiary of Softbank, put the Irvine,...



REITs Pile Into Fix-and-Flip Bonds

Fri, 11 Oct 2019
Mortgage REITs have emerged as the biggest buyers of bonds backed by residential fix-and-flip loans.Angelo, Gordon & Co. unit AG Mortgage, Invesco Mortgage Capital, MFA Financial and Western Asset Mortgage Capital each has built a sizeable portfolio of the securities. Combined, they have put an estimated $750 million to work since the deals started flowing last year — out of total issuance of perhaps $1 billion.What’s the appeal?...



Renew Entering Slow PACE Market

Fri, 11 Oct 2019
Renew Financial is planning its next securitization of property assessed clean energy loans.The deal is expected to price by yearend. While details are unknown, Renew’s past couple of offerings have totaled less than $175 million apiece while employing a bookrunning team encompassing Barclays, Morgan Stanley and Natixis.The most recent of those transactions priced in June 2018 — continuing a pattern in which Renew, like many of its...



Arch Pays Price in Rating Switch

Fri, 11 Oct 2019
Arch Capital’s next risk-transfer securitization will carry lower ratings than its previous transactions, despite featuring more credit enhancement.The differential reflects the fact that Arch has engaged Fitch to grade the offering, which is designed to shed the risk associated with a pool of private mortgage insurance policies written on recently originated loans.Arch previously had hired Fitch only to evaluate deals tied to older...



Online Lender Adding Asset Classes

Fri, 11 Oct 2019
Figure Technologies, which uses blockchain technology to originate and securitize home equity lines of credit, is adding mortgages and student loans to its product mix.The San Francisco firm, whose debut asset-backed bond offering is expected to hit the market any day, plans to begin writing prime-quality jumbo loans and education refinancing loans at the start of November.As it does for its core home-equity business, Figure will use its own...



Flagstar Returns to MBS Market

Fri, 11 Oct 2019
Flagstar Bank is preparing its first home-loan securitization since October 2018.The transaction, backed by prime-quality jumbo loans, is expected to hit the market in the next few weeks with an estimated principal balance of $350 million.Flagstar’s last securitization was a $326.1 million offering led by Bank of America and Wells Fargo. That capped off a stretch in which the company completed six deals in 2018 and three in 2017. It’s...



Morningstar Delays Fix-and-Flip Push

Fri, 11 Oct 2019
Morningstar is postponing the release of rating criteria for bonds backed by fix-and-flip loans.The agency had spent nearly two years on the initiative, but shelved the effort after purchasing rival DBRS in July, sources said.While the reasons remain murky, Morningstar executives also have halted rating risk-transfer deals from private mortgage insurers while they huddle with their counterparts from DBRS about combining their approaches to the...



Bahamas Utility Deal On the Way

Fri, 11 Oct 2019
Bahamas Power & Light is moving ahead with a long-planned securitization.The state-owned energy company is aiming to sell $500 million of bonds, down from as much as $650 million when the deal entered development in 2015. Citigroup is set to run the books on the issue, which would be offered to investors in the Bahamas and abroad.Sources said Bahamas Power hopes to complete the offering before yearend, with the timing reflecting the scheduled...



The Grapevine

Fri, 11 Oct 2019
Managing director Nim Sivakumaran parted ways with Sculptor Capital last week. As a member of the hedge fund operator’s London office, Sivakumaran most recently headed investments in structured products in Europe, including asset-backed securities and collateralized loan obligations. He had been on board since 2009, following a stint as a consultant to Standard Life Investments. He also has worked at Citigroup. Sculptor changed its name...



The Grapevine

Fri, 11 Oct 2019
Alex Pashley signed on with Wilmington Trust’s London office in September as head of structured-finance activities in the U.K. Pashley had been handling sales and relationship-management tasks within Wells Fargo’s securitization-trust unit since 2010, in addition to developing strategies tied to the U.K.’s planned exit from the European Union. He also has worked at BNP Paribas, J.P. Morgan, Bank One and...



The Grapevine

Fri, 11 Oct 2019
Director Phoebe Xu parted ways with Egan Jones in September. Xu had just joined the rating agency’s New York office in April, analyzing a mix of secured debt while coaching junior analysts. She was at Morningstar before that, preceded by a long stop at Moody’s and a stint at Fitch.



The Grapevine

Fri, 11 Oct 2019
Andrew Petersen joined Alston & Bird’s newly opened London office on Sept. 18 as a partner responsible for a range of capital-markets assignments, including those tied to mortgage-backed securities. Petersen had been working at K&L Gates since 2007. He also has spent time at Dechert and Wildes Solicitors.



The Grapevine

Fri, 11 Oct 2019
Mortgage-bond structuring specialist Jill Johnson joined Performance Trust’s capital-markets division in Chanhassen, Minn., in September as a director. Johnson most recently worked as a principal in Piper Jaffray’s structured-finance area from 2016 to this May. She also has spent time at Two Harbors Investment and Green Tree Servicing, but is better known for a long run at GMAC ResCap before the market crash. Her roles there included...



The Grapevine

Fri, 11 Oct 2019
Buy-side shop Cello Capital has hired a mortgage-bond strategist. Qumber Hassan joined the New York operation from Credit Suisse, where he worked in a similar capacity since 2009. Hassan also counts Bank of America as a former employer.



The Grapevine

Fri, 11 Oct 2019
The destination of former BNP Paribas trader Eric Schropp has come to light. Schropp, who left BNP in August, joined Amherst Pierpont this month as a New York-based director. At BNP, where he worked since 2016, he dealt primarily in risk-transfer securities and other types of mortgage bonds. Before that, he was at Nomura.



The Grapevine

Fri, 11 Oct 2019
Social Finance is seeking an analyst for its capital-markets unit in Cottonwood Heights, Utah. The recruit would handle reporting tasks related to the San Francisco company’s securitizations of student loans, personal loans and mortgages, along with its whole-loan sales. SoFi is focusing on candidates with at least two years of experience.



The Grapevine

Fri, 11 Oct 2019
Nissan has an opening for a capital-markets analyst in Franklin, Tenn. As part of the automaker’s treasury area, the recruit would handle reporting, data-gathering and software-maintenance tasks related to its asset-backed bond and unsecured-debt programs. Nissan is focusing on candidates with 1-3 years of experience. To apply, go to nissanmotor.jobs and search for job number...



The Grapevine

Fri, 11 Oct 2019
Analytics shop DV01 has hired Chris Sullivan as a New York-based senior product specialist focused on home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” rules. Sullivan most recently was a credit officer at MoFin Lending, where he started in February. His former employers also include Hunt Financial, Credit Suisse and Bank of...



Quicken Unveils Mortgage-Bond Program

Fri, 04 Oct 2019
Quicken Loans, the largest mortgage lender in the U.S., is launching a securitization program.The effort is set to start with a $353 million jumbo-loan deal that could price as early as next week via a newly established vehicle called Rocket Mortgage Trust. Quicken shared details of the transaction with investors on Oct. 1.“Select investors received preliminary details about a securitization program offering 100% Quicken Loans originated...



Rating-Agency Holdup Stalls PMI Offerings

Fri, 04 Oct 2019
Morningstar’s purchase of DBRS has immobilized efforts by private mortgage insurers to issue risk-transfer bonds.Deals had been flowing even after Morningstar and DBRS closed their deal on July 2, with Arch Capital and National Mortgage Insurance each completing offerings that already were in the works. But as the two agencies huddled to combine their rating approaches, other planned transactions have been suspended.That’s because...



Issuers Closing Gap on 2018 Deal Volume

Fri, 04 Oct 2019
Securitization volume continues to catch up to year-ago levels.Worldwide issuance of asset-backed bonds, collateralized loan obligations and residential and commercial mortgage securities totaled $627.4 billion over the first nine months of 2019, according to Asset-Backed Alert’s ABS Database. That marked a 2% decline from the year-earlier total of $638.4 billion.At midyear, deal volume was running 6% behind the same point in 2018. At the...



Toorak Talking to Rating Agencies

Fri, 04 Oct 2019
Toorak Capital is showing interest in issuing rated bonds backed by residential “fix-and-flip” loans.The Summit, N.J., lender has been huddling with rating-agency officials about developing a method for grading the securities — which the company and its peers so far have issued only in an unrated format.While the identities of the rating agencies involved couldn’t be confirmed, Fitch is known to be developing a criteria for the asset...



Goodwin Assumes Advisory Role

Fri, 04 Oct 2019
Industry veteran Dan Goodwin, who previously oversaw mortgage-related policy efforts at the Structured Finance Association, has re-emerged as head of his own consulting firm.Goodwin’s startup, Cleveland Park Advisors, works with clients on regulatory matters, marketing strategies and product development. Among the Washington firm’s first clients is the Housing Policy Council, a mortgage-industry lobbying group headed by former Federal...



Palmer Square's Single-B Strategy

Fri, 04 Oct 2019
Palmer Square Capital added a single-B-rated tranche to its latest collateralized loan obligation, countering a trend that has seen most issuers abandon efforts to sell notes with such low grades.The $403.2 million transaction, Palmer Square CLO, 2019-1, priced on Sept. 27 with Credit Suisse as bookrunner. The deal originally was marketed without any single-B securities. But at the last minute, Palmer Square added a $6 million bottom class,...



Ygrene Defying C-PACE Holdout

Fri, 04 Oct 2019
Property Assessed Clean Energy lender Ygrene Energy is planning a securitization whose asset pool would contain some loans to commercial property owners, in a departure from the strategies of its peers.The deal, expected to hit the market by yearend, would fund both commercial and residential PACE accounts. Like a similar transaction of $225 million that Ygrene completed in January, it would carry a public rating and would be widely...



OneMain Stretches Revolving Trust

Fri, 04 Oct 2019
OneMain Financial’s latest personal-loan securitization enables the company to rotate assets in and out of its collateral pool for up to seven years.The $900 million offering priced Sept. 16 with Barclays, BNP Paribas and Natixis running the books. OneMain, the only issuer of personal-loan bonds to employ a revolving-trust format, previously limited its asset rotations to five years.The Evansville, Ind., lender’s only other...



Arivo Program Moving Forward

Fri, 04 Oct 2019
Subprime auto lender Arivo Acceptance is coming to market with a long-planned securitization.The offering is expected to total more than $150 million. It is set to price in the coming days with Cantor Fitzgerald running the books.Arivo began lending in late 2017 with an eye toward completing its first securitization in late 2018. But the Sandy, Utah, company put the offering on hold as it expanded its origination business and aggregated more...



Post-Libor Fears Hit Student-Loan Market

Fri, 04 Oct 2019
The phase-out of Libor is beginning to disrupt the market for bonds backed by government-guaranteed student loans.Traders are blaming investor nervousness about replacing deals’ existing Libor benchmarks for a trend in which securities backed by accounts written under the Federal Family Education Loan Program have been losing value — even as bonds across other asset classes have been getting more expensive.Consider that spreads on...



Personal-Loan Performance Unstable

Fri, 04 Oct 2019
Personal-loan originators that cater to borrowers with middle-of-the-road credit scores saw losses jump among their securitization pools in September.According to an index maintained by Kroll, losses among so-called Tier 2 loans rose 209 bp for the month to an annualized 13.36% — erasing an improvement in August while bringing the figure to its highest level since October 2017. Kroll attributes the deterioration to portfolios securitized by...



The Grapevine

Fri, 04 Oct 2019
Citigroup has hired a Deutsche Bank veteran to fill a newly created post as head of syndication for spread products worldwide, including asset-backed securities, mortgage bonds and collateralized loan obligations. Constantine “Dino” Nikitiades is set to join Citi’s New York office in the coming weeks as a managing director. Nikitiades had been at Deutsche since 1997, most recently as head of syndication for the...



The Grapevine

Fri, 04 Oct 2019
Longtime market professional Usman Ismail is retiring. Ismail will leave his post as senior director in the Waltham, Mass., office of Moody’s Analytics in March 2020, ending a run that began in 2014. His career, dating back to the 1970s, also has included stops at Global Reach Consulting, Lewtan Technologies and DST Belvedere.



The Grapevine

Fri, 04 Oct 2019
Flagstar Bank has installed Ankur Jain as a senior vice president in charge of mortgage trading and home-loan pricing strategy in its Troy, Mich., office. Jain most recently worked in the capital-markets area of Caliber Home Loans, where he started in 2011. Before that, he served in a trading capacity at PennyMac. His former employers also include EverBank and Taylor, Bean & Whitaker. Flagstar has completed 12 home-loan securitizations totaling...



The Grapevine

Fri, 04 Oct 2019
David Rashty, who resigned from his job as Flagstar Bank’s head of mortgage-product trading and securitization structuring in April, has started his own analytics shop. The Troy, Mich., operation, dubbed Pandibay, helps institutional investors evaluate a mix of home loans. Rashty had joined Flagstar in 2013, following stops at NMRF, UBS and Lehman...



The Grapevine

Fri, 04 Oct 2019
Doug Maxham has exited his post as a vice president in charge of a group at Pentagon Federal Credit Union that lines up secondary-market funding for the institution’s mortgages, in part by selling them for inclusion in securitizations. Maxham had taken the Alexandria, Va., post in 2015. Before that he was at The Money Store, Proficio Mortgage, EverBank, Bank of Oklahoma and PHH...



The Grapevine

Fri, 04 Oct 2019
Morgan Stanley is seeking an attorney with whole-loan and securitization experience. The New York-based recruit would work both with outside loan originators and internal personnel who arrange and syndicate mortgage-finance transactions, including bond deals. Candidates can apply by clicking “careers” at morganstanley.com and searching for job number...



The Grapevine

Fri, 04 Oct 2019
Investor-relations specialist Christopher Oltmann left his position as a senior vice president at PennyMac in September. Oltmann, whose role included interacting with bond and loan buyers, had been at the Westlake Village, Calif., mortgage company since 2012. Prior to that, he spent time at Bank of America, Union Bank and the former Countrywide. His duties at PennyMac have been assumed for the time being by Isaac Garden, who holds a similar role...



The Grapevine

Fri, 04 Oct 2019
Personal-loan originator Affirm has elevated Benson Lee to senior director in charge of its quantitative-analysis efforts. Lee had joined the San Francisco company in 2017 as a credit analyst from the consumer-asset securitization unit of Citigroup. Under capital-markets head Geoffrey Kott, Affirm is aiming for early 2020 to complete its first asset-backed bond...



The Grapevine

Fri, 04 Oct 2019
OneMain Financial has an opening for a senior analyst on its capital-markets team. The recruit would be stationed in the company’s New York headquarters, working on both its personal-loan securitizations and its corporate-debt offerings..END



FBR Co-Founder Eyes Issuing Re-Emergence

Fri, 27 Sep 2019
EJF Capital, the fund operator led by financial-market veteran Emanuel Friedman, is positioning itself as an issuer of home-loan bonds.The effort focuses on deals backed by loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards. Sources said EJF initially has instructed its staff to buy $400 million to $500 million of those accounts, and will seek to build a portfolio of at least $2...



CLO "Bond Buckets' Remain a Tough Sell

Fri, 27 Sep 2019
Collateralized loan obligation managers that are thinking about adding bonds to their future transactions’ asset pools are likely to meet some resistance from investors.At issue are expectations by the Loan Syndications and Trading Association that regulators including the FDIC, Federal Reserve and SEC will roll back a provision within the Dodd-Frank Act’s Volcker Rule under which banks’ investments in securitizations are...



Lender Maps Asset-Backed Bond Program

Fri, 27 Sep 2019
Education lender Climb Credit is eyeing securitization as a funding source.The New York firm, which writes loans to vocational students attending pre-approved schools, is aiming to conduct its first asset-backed bond offering in late 2020 or early 2021. Its annual origination volume currently is about $100 million.For now, Climb is funding its lending activity by selling its accounts via so-called flow agreements with investors including Goldman...



Rippert Launching Mortgage Vehicle

Fri, 27 Sep 2019
The former head of Arch Capital’s mortgage-insurance unit is setting up an investment operation focused on non-agency home loans.Through a Boston startup called Portum Trust, Andrew Rippert has begun marketing a fund that would buy and likely securitize loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards. Rippert eventually wants to transform Portum into a high-volume...



Buyers Jump at FirstKey Offering

Fri, 27 Sep 2019
A rare securitization of manufactured-housing loans drew strong demand this week.Working on behalf of issuer FirstKey Mortgage, bookrunners J.P. Morgan and Bank of America fielded enough orders for the offering’s $300.6 million top class to sell four times that amount of bonds. Those securities, with triple-A ratings and 1.9-year lives, were shopped at spreads of 95-100 bp over eurodollar futures.The transaction totals $508 million. It was...



Fitch Tweaks Risk-Transfer Model

Fri, 27 Sep 2019
Fitch has updated its criteria for assessing the credit quality of risk-transfer securities issued by Fannie Mae and Freddie Mac to include full cashflow analysis.Fitch expects the change will result in rating adjustments for only a small number of deals. That’s because Fannie’s Connecticut Avenue Securities transactions and Freddie’s Structured Agency Credit Risk issues distribute cashflows on a sequential basis — a...



Harley Back in Issuance Pipeline

Fri, 27 Sep 2019
Harley-Davidson is working on its next motorcycle-loan securitization.The transaction has an estimated size of $300 million to $500 million. It is expected to hit the market late this year or in early 2020.The offering would follow a $552.6 million issue Harley priced on June 19 with Barclays, Citigroup and Wells Fargo running the books. That deal was the Milwaukee company’s first since June 2016, reviving a once-routine securitization...



Online Lender Gains Warehouse Space

Fri, 27 Sep 2019
Victory Park Capital has expanded a credit facility through which Applied Data Finance writes online personal loans to subprime borrowers.On Sept. 20, Victory Park upsized Applied Data’s warehouse line to $350 million, from $200 million. Meanwhile, there’s talk that Applied Data may tap the asset-backed bond market as a long-term funding source.Since 2014, Applied Data has originated some $300 million of loans to the...



Katke Case Remains in Limbo

Fri, 27 Sep 2019
Another delay is likely in the sentencing of former RBS trader Matthew Katke on securities-fraud charges.Katke had pleaded guilty in 2015 to one count of fraud for overstating mortgage-bond prices to investors, but as part of the deal agreed to testify in other cases. Among them was the retrial of one-time Nomura traders Michael Gramins and Ross Shapiro — following proceedings in which a jury convicted Gramins on one count of conspiracy and...



More Losses for Subprime Autos

Fri, 27 Sep 2019
Losses among securitized pools of subprime auto loans continued to worsen during the month ended August 15.According to an index maintained by Fitch, annualized losses within the category rose 220 bp for the month to 9.43% — the largest percentage increase since May 2014. Delinquencies also were up, rising 82 bp to 5.93%. The deteriorating loan performance reflects weakness in the asset pools of several lenders that cater to...



NPL, RPL Sectors Running Dry

Fri, 27 Sep 2019
The flow of rated securities backed by nonperforming and reperforming mortgages remains frozen.No such deals have taken place since Angelo, Gordon & Co. completed a $224.9 million transaction on August 15, reflecting a lack of available collateral. Indeed, auctions of nonperforming and reperforming mortgages have tapered off during the second half as seller inventories have diminished.A pause in FirstKey Mortgage’s activity highlights the...



Banks Eye Bond-Backed Securities

Fri, 27 Sep 2019
A possible loosening of the Volcker Rule could greatly expand the investor base for securitizations whose collateral pools can contain large amounts of corporate bonds.The potentially affected deals encompass a category of collateralized loan obligations that, unlike most CLOs, can allocate up to 100% of their asset pools to corporate bonds. Amid expectations that regulators including the FDIC, Federal Reserve and SEC will roll back a provision...



The Grapevine

Fri, 27 Sep 2019
The third quarter brought no change to the top of the league table for structured-product bookrunners worldwide. Citigroup remains the most active player in the market, having led nearly $70 billion of asset-backed bond deals, collateralized loan obligations and securitizations of residential and commercial mortgages from Jan. 1 to Sept. 30, according to a preliminary ranking based on Asset-Backed Alert’s ABS Database. J.P. Morgan and Bank...



The Grapevine

Fri, 27 Sep 2019
Tom Donatacci has joined Impac Mortgage as a senior vice president handling business-development duties in the home-loan originator’s Irvine, Calif., headquarters. Donatacci had been working at New Diligence Advisors since 2015, following stops at Clayton Holdings, GMAC ResCap and Lehman Brothers. Impac writes a mix of loans, including those that don’t meet the Consumer Financial Protection Bureau’s...



The Grapevine

Fri, 27 Sep 2019
Vice president Meg Kehan left Credit Suisse’s consumer-asset securitization team in New York last week to join Carvana. Kehan’s new role has her working on the used-car retailer’s asset-backed bond program, which so far has produced three subprime-loan deals totaling $1.4 billion — all with Credit Suisse as bookrunner. Kehan had started at Credit Suisse in 2012, straight out of...



The Grapevine

Fri, 27 Sep 2019
Jessica Louie started in Capital One’s New York office last week as a managing director on a team that helps clients arrange asset-backed bond deals and collateralized loan obligations, reporting to financial-institutions head David Kucera. Louie most recently worked at MUFG from 2015 to this July. She also has worked at Credit Suisse and Morgan...



The Grapevine

Fri, 27 Sep 2019
Hedge fund operator One William Street Capital has added a member to its structured-product investment staff. Alex Saporito signed on with the New York firm last week after working at private equity shop Flexpoint Ford since 2015, according to sister publication Hedge Fund Alert. Saporito was a longtime member of Morgan Stanley’s securitization-banking unit before that, and spent time at...



The Grapevine

Fri, 27 Sep 2019
Information Management Network chief executive Julius Hill will leave the New York conference organizer in November. Hill had come on board with the company’s 2004 acquisition by Euromoney Institutional Investor. His former employers also include Capita and KPMG.



The Grapevine

Fri, 27 Sep 2019
Freddie Mac is zeroing in on dates to begin using Remic structures for its risk-transfer securitizations. Working though its Structured Agency Credit Risk program, the agency has penciled in October to offer a batch of such bonds referencing mortgages with low loan-to-value ratios. A deal transferring risk on high-LTV receivables would follow in November. The move to a Remic format is intended to make the bonds more attractive to mortgage REITs...



The Grapevine

Fri, 27 Sep 2019
Staff cuts at blockchain-technology company AlphaPoint claimed the job of marketing head Ned Myers in August. Myers had arrived in June 2018 at AlphaPoint, a New York operation whose products include digital tokens that can be traded in place of bonds. He also has worked at data firm Black Knight and at Lewtan Technologies.



The Grapevine

Fri, 27 Sep 2019
Bayview Asset Management is seeking a vice president to handle a range of duties involving securitizations of nontraditional assets. The recruit would be stationed in Coral Gables, Fla. Bayview is zeroing in on candidates with at least 10 years of experience, but is considering individuals who have been in the market for five years. To apply, click on “careers” at www.bayview.com and search for job number...



Industry Pros Flock to Miami Conference

Fri, 20 Sep 2019
The turnout for this year’s “ABS East” conference is going to be huge.More than 5,100 industry professionals have registered for the event, which Information Management Network is hosting Sept. 22-24 at the Fontainebleau Hotel in Miami Beach. Accounting for the usual no-shows, that suggests a final headcount around 4,800.Last year’s edition of the event drew 4,235 participants — a record that few expected to be...



BNP Continues Raid on SocGen Executives

Fri, 20 Sep 2019
Two more leaders of Societe Generale’s U.S. asset- and mortgage-backed securities underwriting operation are jumping to BNP Paribas.Robert Pucel and Carl Spalding exited SocGen on Sept. 12. They’ll start as managing directors in BNP’s New York office in mid-November — joining former SocGen colleague Daniel McGarvey.Pucel headed syndication for SocGen’s securitization group in the States, with Spalding responsible for...



Fitch Eyes Ethics Component in Bond Ratings

Fri, 20 Sep 2019
Fitch is working on a plan that could result in the first structured-product ratings to incorporate so-called ESG principles.Sources said the agency initially would focus on the environmental, social and governance policies and practices of mortgage-bond issuers, with the idea of later adapting the approach for other asset classes. The initiative, led by managing director Roelof Slump, is still in the early stages.A formal introduction of ESG...



Fannie, Freddie Scout New Investors

Fri, 20 Sep 2019
Fannie Mae and Freddie Mac are pushing to increase their outputs of risk-transfer securitizations.Sources said Fannie and Freddie are talking to new investors to gauge their interest in participating in future deals. Should they succeed in expanding their buy-side bases, the agencies could reach their goal of offloading risk on virtually all of their mortgage holdings well ahead of their 2024 target.Both agencies are “looking to expand the...



Fitch Wary of FFELP Bonds

Fri, 20 Sep 2019
Fitch again is raising a red flag about securitizations of student loans written under the Federal Family Education Loan Program.In a report to be issued in the coming weeks, the agency will highlight a trend in which increasing use of income-based repayment plans among FFELP borrowers is extending the maturities of more collateral loans, slowing payments to bondholders. At the same time, more borrowers in the repayment programs are qualifying...



Moody's Pushing Into Aircraft Leases

Fri, 20 Sep 2019
Moody’s is revising its criteria for rating aircraft-lease securitizations.The project is part of an effort by the agency to regain a foothold in the sector, where its last assignment came on a $451 million deal from the former CIT Group in 2008.On Sept. 17, Moody’s issued a request for comments on a set of proposed adjustments that would take into account changes in the aircraft-leasing business. The new approach aims to better...



Next Step Taken in Libor Updates

Fri, 20 Sep 2019
Brigade Capital is attempting to amend one of its existing collateralized loan obligations so that the deal adopts a new benchmark upon the end of Libor.The “fallback” provisions would be the first introduced for an outstanding CLO in a situation other than a refinancing, in this case the 2015-vintage Battalion CLO 8. But for the process to work, Brigade would need the approval of all investors in the deal.To that end, the New York...



BlueBay Building Junior ABS Book

Fri, 20 Sep 2019
BlueBay Asset Management is adding an opportunistic component to its structured-product investment program.The London unit of RBC started a broad marketing campaign for its Opportunistic Structured Credit Strategy this month, offering both a commingled hedge fund and separate accounts to institutional investors. The aim is to raise at least $500 million over the next year or so, with much of the initial capital coming from limited partners in the...



PACE Seniority Questioned in NY

Fri, 20 Sep 2019
With the City of New York poised to propose guidelines for Property Assessed Clean Energy loans on commercial properties, industry participants are keeping a close eye on how the policies would affect potential securitizations of those accounts.The not-for-profit New York City Energy Efficiency Corp. is expected to release the rules in the coming weeks, with finalization coming after a 60-day comment period. The question is where commercial PACE...



Burger Chain Tests Blockchain Deal

Fri, 20 Sep 2019
Restaurant company FAT Brands is planning a securitization.The $30 million deal would be backed by whole-business cashflows consisting mainly of fees paid by franchises operating under the Beverly Hills company’s brands, including Fatburger, Bonanza Steakhouse, Buffalo’s Cafe, Elevation Burger, Hurricane Grill & Wings and Ponderosa Steakhouse. It is expected to hit the market by yearend.In a twist, New York blockchain-technology firm...



Moody's Maps Out Loan Liquidity

Fri, 20 Sep 2019
Moody’s Analytics has identified broad disparities in collateralized loan obligations’ exposures to illiquid assets.In a newly issued report, the agency states that up to 70% of some managers’ loan pools are made up of such accounts — with those on the low end limiting the holdings to 20%.Moody’s defines low-liquidity loans as those that typically were written as part of small credit facilities or that aren’t widely quoted by dealers....



REGULATORY ROUNDUP

Fri, 20 Sep 2019
Regulatory Roundup: Mortgage Agencies at ForefrontPlans to remove Fannie Mae and Freddie Mac from government conservatorship have jumped to the top of the list of regulatory actions that could affect the securitization industry.The Trump Administration released a blueprint for the effort on Sept. 6 in which it proposed to privatize the agencies while continuing to offer a government backstop. But the report was short on details, raising questions...



REGULATORY ROUNDUP

Fri, 20 Sep 2019
Mortgage Agencies — CongressThe Trump Administration’s blueprint for removing Fannie Mae and Freddie Mac from government conservatorship didn’t offer much clarity on how the process would take place. The Treasury Department released a plan on Sept. 6 that calls for the agencies to revert to private-market entities with government backstops — the same formats they maintained before their near-collapses in 2008. But the...



REGULATORY ROUNDUP

Fri, 20 Sep 2019
QM Rule — CFPBAs the window closes for Fannie and Freddie to buy home loans that fall outside the Consumer Financial Protection Bureau’s “qualified-mortgage” standards, players in the private-label market are preparing for more of those accounts to become available to them. But questions remain over how they would finance the influx of business. At issue is a July 24 decision by the CFPB to honor the January 2021...



REGULATORY ROUNDUP

Fri, 20 Sep 2019
Regulation AB — SECMortgage-finance professionals are coalescing around a plan to lobby the SEC to amend Regulation AB. The effort would see bond issuers, bankers and lawyers in the sector ask the agency to consider changing a number of disclosure requirements implemented in a 2016 update of the rules, known as Reg AB 2. To register a mortgage-bond deal with the SEC, for example, an issuer must fill in more than 250 data points per account...



REGULATORY ROUNDUP

Fri, 20 Sep 2019
Common Securitization Platform — FHFAThe Trump Administration’s plan to remove Fannie and Freddie from government conservatorship has cast doubt on the future of the Common Securitization Platform. The program creates a shared mortgage-bond issuing format and infrastructure for the agencies, and has been well received by investors since Freddie completed the first such deal on June 3. But the expectation is that once privatized,...



REGULATORY ROUNDUP

Fri, 20 Sep 2019
Libor — Federal ReserveA push is under way for structured-product issuers to adopt standardized mechanisms for switching their deals’ benchmarks when Libor disappears. The basic blueprint for such a change came via a set of recommendations from the Federal Reserve’s Alternative Reference Rates Committee on May 31. The suggestions include the inclusion of triggers that would prompt issuers to select new benchmarks before Libor reporting...



REGULATORY ROUNDUP

Fri, 20 Sep 2019
Risk Retention — Fed, SEC, TreasuryMortgage-bond issuer Redwood Trust is making a case to ease the Dodd-Frank Act’s risk retention rule. The REIT began the effort via an August report in which it maintains that an issuer’s skin-in-the-game requirement should apply only to the percentage of a securitization pool consisting of loans that don’t meet the CFPB’s “qualified-mortgage” standards. Currently, an...



REGULATORY ROUNDUP

Fri, 20 Sep 2019
Student Loans — CongressPledges by some presidential candidates to forgive federally guaranteed student loans if elected could cause headaches for holders of bonds backed by those accounts. Sen. Elizabeth Warren (D-Mass.) and Sen. Bernie Sanders (D-Vt.) both have endorsed canceling some or all of the $1.6 trillion of existing student loans, including a large volume of Federal Family Education Loan Program accounts in securitization pools....



REGULATORY ROUNDUP

Fri, 20 Sep 2019
Marketplace Lending — TreasuryA U.S. District Court judge in Washington has again declined to hear a lawsuit in which the Conference of State Bank Supervisors aims to stop a plan by the Comptroller of the Currency to issue national bank charters to nonbank entities — including marketplace-loan originators. In his Sept. 3 denial, Judge Dabney Friedrich ruled that the bank-supervisor group lacked standing because the regulator had yet...



REGULATORY ROUNDUP

Fri, 20 Sep 2019
Volcker Rule — FDICAfter years of protest, the Trump Administration finally has granted banks some relief from the Volcker Rule. The FDIC on August 19 approved changes to the Dodd-Frank Act rule that loosened proprietary trading restrictions, in part by widening banks’ market-making and hedging capabilities. It also separated the banks into three categories, with an exemption for those with trading books of less than $1 billion. The...



REGULATORY ROUNDUP

Fri, 20 Sep 2019
Trade Reporting — FinraThere still is no word on when Finra will add trade-by-trade data on mortgage bonds and collateralized loan obligations to the secondary-market activity it tracks via its Trade Reporting and Compliance Engine. The self-regulatory agency has been working on the effort for several years, with an initial plan to act in 2017. But it only has been releasing aggregate data in the meantime, while remaining silent about its...



The Grapevine

Fri, 20 Sep 2019
Salesman Michael Santulli joined Credit Suisse’s New York office a couple weeks ago as a managing director. Santulli most recently worked at Guggenheim from 2008 to this June. He also has spent time at Washington Mutual, Citigroup and Bear Stearns.



The Grapevine

Fri, 20 Sep 2019
Citigroup is interviewing candidates to serve as its head of syndication for spread products worldwide, including asset-backed securities, mortgage bonds and collateralized loan obligations. The bank is considering only professionals with 15 or more years of experience for the newly created position, which it is adding as part of a broader restructuring. That effort also saw Aoiffe McGarry become head of U.S. asset-backed bond syndication in...



The Grapevine

Fri, 20 Sep 2019
Researcher Gary Zhu rejoined Wells Fargo’s New York office this week as a director. Zhu had been let go by Wells in June, along with structured-product research head Marielle Jan de Beur. Zhu’s initial run at the bank started in 2015. Before that, he was at Genworth Financial and American Realty Capital.



The Grapevine

Fri, 20 Sep 2019
Senior vice president Irene Eddy has left DBRS, destination unknown. Eddy had worked in the agency’s New York office since 2015, with a focus on grading deals backed by Property Assessed Clean Energy loans. Before that, she was at GE Capital.



The Grapevine

Fri, 20 Sep 2019
Hedge fund manager SPF Investment has hired a portfolio manager. Luca Beldi joined the New York operation’s London office about a week ago with a focus on asset-backed securities, mortgage bonds and collateralized loan obligations. Beldi had been at TwentyFour Asset Management since 2013.



The Grapevine

Fri, 20 Sep 2019
BNY Mellon’s corporate-trust group has added three employees to its structured-finance team. Elton Wells and Amy Hanley are on board as directors handling business-development tasks in New York. Wells had been in a broad fixed-income sales post at broker-dealer Auriga USA since 2015, and before that was at SecondMarket and Credit Suisse. Hanley transferred from within BNY, which she joined in 2011 from Longbow Research. Also new to the...



The Grapevine

Fri, 20 Sep 2019
Former Fannie Mae staffer Sandra Gates joined J.P. Morgan’s Dallas office this month as a vice president responsible for managing risk associated with the bank’s capital-markets activities as a mortgage lender. Gates was a credit-risk analyst at Fannie from 2016 to 2018, and before that was at the FDIC. Her earlier employers include Citigroup, Bank of America, Credit Suisse, Fitch and...



The Grapevine

Fri, 20 Sep 2019
Allen & Overy is adding an associate to its collateralized loan obligation practice. Tracy Feng will join the firm’s New York office in October from Katten Muchin, where she started in 2014. Feng also has spent time at Milbank Tweed and Linklaters. Her appointment comes as part of an expansion of Allen & Overy’s CLO team that also saw former Milbank attorney Nick Robinson sign on in March as a...



The Grapevine

Fri, 20 Sep 2019
Morningstar is officially rebranding itself as DBRS Morningstar, reflecting its July 2 purchase of DBRS. The agency plans to unveil the new name, and a new logo, at Information Management Network’s “ABS East” conference. The event runs Sept. 22-24 at the Fontainebleau Hotel in Miami Beach.



The Grapevine

Fri, 20 Sep 2019
Hunton Andrews has added an associate to its structured-finance practice in New York. Frederick Pai arrived on Sept. 17, covering a range of asset-backed bond deals. Pai previously was a law clerk at Hawkins Delafield.



Online Lenders Rushing to Beat Recession

Fri, 13 Sep 2019
Fears of a recession are prompting issuers of bonds backed by online personal and small-business loans to place their securitizations on the fast track.The concern is that an economic downturn could dent asset performance — a risk the companies are betting that structured-product buyers will be willing to absorb. At least five deals are expected to price in the next few weeks as a result, with more to come through yearend.Among the...



Key Decisions Coming for Trustee Lawsuits

Fri, 13 Sep 2019
A pivotal point is approaching in two lawsuits that could set precedents for whether investors in troubled mortgage bonds can hold trustees financially accountable for their losses.Two U.S. District Court judges in New York are expected to determine in the coming weeks whether to grant summary judgments in separate complaints that a bondholder group identified as Phoenix Light filed against Deutsche Bank and U.S. Bank in 2014.The investors and...



REIT Stock Sales Fuel Securitization Efforts

Fri, 13 Sep 2019
With their stock prices on the rise and interest rates low, mortgage REITs are issuing new shares to support their securitization activities.Since the start of September, AG Mortgage, New York Mortgage Trust and Redwood Trust have sold $470 million of stock. Sources said they plan to use the fresh capital to buy non-agency home loans — including those that don’t meet the Consumer Financial Protection Bureau’s...



CapOne Revives Marketplace Push

Fri, 13 Sep 2019
Capital One is rebooting a unit that offered financing to buyers of marketplace-originated personal and small-business loans.The bank had been the largest warehouse lender in the space until 2016, when a sector-wide downturn prompted it to retreat. But it apparently put a comeback in motion by hiring Charles Gentles this month as a director in its financial institutions group.Gentles’ duties include finding loan buyers in need of debt...



Dorian Takes Toll on Timeshares

Fri, 13 Sep 2019
Spooked by Hurricane Dorian, investors have been offering an unusually large volume of timeshare-loan bonds on the secondary market.Traders estimate that some $50 million of the securities have been put out for bid since the hurricane hit the U.S. Virgin Islands on Aug. 28, with the heaviest activity coming as the storm devastated the island of Grand Bahama the following week.Indeed, the investors’ decisions to offer the bonds have been...



Utility Offering in Development

Fri, 13 Sep 2019
Milwaukee power company WEC Energy is working on a securitization.The deal is expected to total at least $100 million. Indications are that it will hit the market in 2020.WEC, which operates under the trade name We Energies, filed an initial financing plan with the Wisconsin Public Service Corp. in August and is expected to receive approval for the offering in the coming months. The transaction would mark the utility’s first...



Investors Seek Libor Uniformity

Fri, 13 Sep 2019
Investors are voicing their concerns about a lack of standardization in how outstanding asset-backed bond deals will switch to new benchmarks when Libor ends.The desire for a uniform approach was evident at the Structured Finance Association’s Sept. 11 “Libor Symposium” at the Kimpton Hotel Monaco in Washington. Among the buysiders’ requests: That issuers adopt more clear and consistent “fallback language”...



Default Dents Older CLOs

Fri, 13 Sep 2019
Asset quality for U.S. collateralized loan obligations slipped in July, even as issuers unloaded some of their lowest-rated holdings.The median weighted average rating factor — a key indicator of borrower health — deteriorated by seven basis points to 2847 among CLOs issued since the credit crisis, according to an index maintained by Moody’s. The trend was most pronounced among 2013 deals, with the WARF for that vintage...



KopenTech Seeks Finra Approval

Fri, 13 Sep 2019
A technology company that formed last year to facilitate a new process for refinancing collateralized loan obligations plans to register as an alternative trading system.The designation would allow KopenTech to work with CLO issuers and investors to reset interest rates on outstanding deals without issuing new securities, as is standard with traditional refinancings. To date, five collateralized loan obligations have been issued with terms that...



Avid Boosts Deal Size

Fri, 13 Sep 2019
Subprime auto lender Avid Acceptance has increased the size of its second securitization.The Midvale, Utah, lender plans to issue $200 million of bonds, up from an initial $180 million. It also has engaged KeyBank as a bookrunner, with the bank likely sharing that designation with J.P. Morgan.The transaction remains on pace to hit the market in October, with ratings from S&P and Kroll.Avid writes loans to “deep-subprime” borrowers in...



GreensLedge Conduit Almost Ready

Fri, 13 Sep 2019
GreensLedge is putting the finishing touches on its first commercial-paper conduit.With the entity expected to start issuing soon, the New York investment-banking firm this week hired Barclays and RBC as its dealers. It also has moved closer to securing P-1/A-1 ratings from Moody’s and S&P.GreensLedge additionally hired Joshua Carruthers in August as a conduit analyst. Carruthers had been working in the asset-backed commercial paper group...



The Grapevine

Fri, 13 Sep 2019
Alan Johannsen started this week as a member of Mutual of Omaha’s investment team in Omaha, Neb., where he focuses on structured products. Johannsen most recently was employed in a sales role from October 2018 to August 2019 at BOK Financial, the broker-dealer arm of Bank of Oklahoma. His former employers also include Societe General, KGS-Alpha, RBS, Bank of America and Bank...



The Grapevine

Fri, 13 Sep 2019
Robin Regan, a well-known attorney in the commercial real estate finance sector, is broadening her practice via a move to Alston & Bird. Regan joined the law firm’s New York office this month as a counsel covering a range of securitizations that includes asset-backed bonds and commercial mortgage bonds. She had been working as an associate at Hunton Andrews since October 2018. Before that, she led legal matters for Kroll’s commercial...



The Grapevine

Fri, 13 Sep 2019
Mortgage-bond researcher Dhivya Krishna left Nomura last week to join Mega Capital, a wholesale home-loan company in Calabasas, Calif. Krishna is expected to start her new job after waiting out a gardening leave. She had been at Nomura since 2010, following a stop at Bank of America. Mega offers a mix of agency and non-agency mortgages, but has yet to...



The Grapevine

Fri, 13 Sep 2019
RiskSpan has hired Bob Gundel to handle sales for an analytics tool called RiskSpan Edge. Gundel arrived in the firm’s Stamford, Conn., office on Sept. 9 from the mortgage-bond sales desk at Amherst Securities, where he worked since 2015. His former employers also include Compass Analytics and Shea Financial.



The Grapevine

Fri, 13 Sep 2019
Cole MacKenzie has left his post as a director handling ratings of auto-loan securities at Fitch to join Bank of America’s securitization team in New York, where he started on Sept. 9 as an associate. MacKenzie worked at Fitch since 2015.



The Grapevine

Fri, 13 Sep 2019
Hunton Andrews has added two associates to its structured-finance practice in New York. Richard Paladino joins the firm’s asset-backed bond team from Orrick Herrington, where he worked since 2014 with a focus on commercial mortgage deals. Also working on asset-backed bonds, among other products, is Eric Fidel. He had been at Ellenoff Grossman since 2017, and before that was at Fox...



The Grapevine

Fri, 13 Sep 2019
Managing director Amy Jo Pitts has transferred from Citigroup’s asset-backed securities banking group to its financial-institutions team in New York. Pitts has been working at Citi since 2011. Before that, she spent time at Deutsche Bank and ABN Amro.



The Grapevine

Fri, 13 Sep 2019
Harley-Davidson is looking for an asset-backed securities analyst. The Chicago-based recruit’s duties would include structuring new deals underpinned by the company’s motorcycle loans and reporting on outstanding transactions. The search follows the June 19 pricing of a $552.6 million deal led by Barclays, Citigroup and Wells Fargo, Harley’s first securitization since 2016. Candidates can apply by clicking on...



The Grapevine

Fri, 13 Sep 2019
Katten Muchin has promoted Jonathan Evans to partner in its structured-finance practice in New York. Evans works on a variety of deals, with a focus on those backed by personal loans. He joined Katten in 2010 as part of a group of 13 attorneys who moved to the firm from Dewey & LeBoeuf. Also among them was Chris DiAngelo, who co-headed Dewey’s securitization...



SFA Seeking Modifications to QM Standard

Fri, 06 Sep 2019
The Structured Finance Association plans to ask the Consumer Financial Protection Bureau to loosen a key requirement for “qualified mortgages.”The request will come via a comment letter the SFA is preparing to submit in response to the CFPB’s plan to end a so-called patch that has enabled Fannie Mae and Freddie Mac to buy non-qualified loans. Specifically, the trade group is seeking a replacement of Appendix Q under the...



PACE-Loan Regulation Remains in Limbo

Fri, 06 Sep 2019
The wait continues for the Consumer Financial Protection Bureau to release an “ability-to-repay” rule for Property Assessed Clean Energy loans.Congress tasked the CFPB with introducing such a mandate for residential borrowers in May 2018, leading to a series of notices and meetings that indicated a proposal was on the way. Instead, “it’s been crickets” from the agency in recent months, one source said.Now, the belief...



Downgrade Weighs on Guggenheim Conduit

Fri, 06 Sep 2019
Industry participants are questioning the future of a Guggenheim commercial-paper conduit.At issue is an Aug. 1 action in which S&P cut Nomura’s short-term credit rating to “A-2” (from “A-1”). Because Nomura supplies a liquidity backstop for Guggenheim’s White Plains Capital conduit, the agency followed up with a corresponding downgrade to that vehicle’s securities on Aug. 9.Pointing to difficulties that...



Finance Group Adds ABS Pros

Fri, 06 Sep 2019
Synovus Bank has hired three professionals to help lead a new structured-lending group.Jayan Krishnan, Roman Mazo and Mehul Patel arrived in August. They joined Sal Carvo, who has been laying the groundwork for the operation since April.The team’s mission is to supply financing to small and mid-size companies that often are ignored by larger Wall Street institutions — with Synovus offering warehouse lines of $40 million or more, and...



Credijusto Broadens Funding Efforts

Fri, 06 Sep 2019
Credijusto is seeking an additional line of credit as it prepares its first asset-backed bond offering.The Mexico City company, which writes small-business loans and equipment leases in Mexico, so far has been funding itself with two warehouse lines of $100 million each — one from Goldman Sachs and another, finalized last week, from an unidentified bank. It now is in talks to secure a third credit facility of about the same size.Company...



Skopos Preps "Deep Subprime' Deal

Fri, 06 Sep 2019
“Deep subprime” auto lender Skopos Financial is preparing its next securitization.The deal, with a principal balance of $145 million, is set to hit the market in the next few days with Citigroup running the books. DBRS and Kroll will rate the issue, as they did for Skopos’ two previous asset-backed bond offerings.The Irving, Texas, lender last was in the market in March 2018, when it sold $147 million of bonds via Citi and...



Home-Improvement Deal in Queue

Fri, 06 Sep 2019
Aqua Finance is preparing a securitization of home-improvement loans.The deal is expected to total about $200 million. KeyBank will run the books, with Kroll assigning ratings to the bonds.Aqua writes its loans through a network of some 3,000 contractors and dealers in 49 states, with the highest concentrations in California, Florida and Texas. The accounts finance a range of work and equipment, including remodeling projects and water-treatment,...



Ally, BMW Lead Issuance Rebound

Fri, 06 Sep 2019
A heavy pipeline of asset- and mortgage-backed bond offerings is developing for next week.Already, 11 deals totaling $7.7 billion are expected to price from Sept. 9-13. They include securitizations of prime-quality auto loans from Ally Bank and BMW, a small-business loan offering from Avant and a jumbo-mortgage transaction from Wells Fargo.The healthy supply confirms expectations that issuers would be active in the weeks leading up to Information...



Nearwater Prevails Against Highland

Fri, 06 Sep 2019
Nearwater Capital has won a summary judgement in its lawsuit against Highland Capital for breach of contract.The case centered on a botched repurchase agreement under which Nearwater last year was to advance Highland $17 million in exchange for a portfolio of unspecified securities. Highland, an issuer of collateralized loan obligations, presumably intended to use the repo to finance a portion of its risk-retention obligations under the...



Goldman Talks Utility Deal

Fri, 06 Sep 2019
Initial price talk is circulating for a utility-fee deal from AEP Texas.The $229 million transaction is split into two equal-size tranches — one of which has a term that is substantially shorter than most utility-fee transactions. That slice, with a maturity date in 2025, is being talked at 45 bp over swaps. Bookrunner Goldman Sachs is suggesting a spread of 95 bp for the other tranche, which matures in 2029.The suggested spreads for both...



Funding Circle Broadening Reach

Fri, 06 Sep 2019
The completion of Funding Circle’s first U.S. securitization has paved the way for the small-business lender to offer other products to investors.In the process of pricing its $198.5 million Small Business Lending Trust, 2019-A, Funding Circle received feedback from buysiders who also were interested in gaining exposures to its loans through instruments including pass-through certificates. To that end, the London company is viewing...



More Divergence in Loan Data

Fri, 06 Sep 2019
Losses rose among securitized pools of personal loans to the least creditworthy borrowers in August, while falling for stronger accounts.According to an index maintained by Kroll, annualized losses among so-called Tier 3 loans jumped 152 bp to 17.91% for the month. The category also saw delinquencies increase 43 bp to 4.33%. Tier 3 accounts are originated by Avant and Lending Club to borrowers with credit scores of 630-660. In contrast,...



The Grapevine

Fri, 06 Sep 2019
Market veteran Kirk Meyers resurfaced in Charlotte this week at 400 Capital as a portfolio manager, a role in which he is helping to oversee a mix of investments. Meyers had been on the sidelines since he was let from his post as co-head of Wells Fargo’s mortgage-securitization group last November. He had started at Wells in 2015, following stops at Hilltop Holdings, Southwest Securities and Bank of America. At 400 Capital, Meyers reports...



The Grapevine

Fri, 06 Sep 2019
King & Spalding is adding a key attorney to its structured-finance practice. Jonathan Arkins arrives in the law firm’s New York office on Sept. 9 as a partner, with a focus on advising issuers, underwriters and investors on a range of matters related to securitization and warehouse financing. Arkins previously worked at Arnold & Porter, by way of that firm’s 2017 merger with Kaye Scholer — where he worked since 2008. His...



The Grapevine

Fri, 06 Sep 2019
Analyst Joanne DeSimone has left S&P to join the asset-backed bond rating unit of Kroll, where her coverage areas include deals backed by equipment loans and leases. DeSimone had been at S&P for more than 20 years.



The Grapevine

Fri, 06 Sep 2019
Loomis Sayles has added an analyst to a Boston team that invests in bonds backed by commercial assets. Scott Hofer started in August as a vice president. He had been employed at J.P. Morgan since 2013, most recently as a banker charged with structuring deals backed by illiquid assets including royalty payments, timeshare loans and utility fees. Before that, he was at Citigroup and CME Group. At Loomis, Hofer replaces Keith Allman, who left in...



The Grapevine

Fri, 06 Sep 2019
Subprime auto lender DriveTime is seeking an assistant director for its capital-markets unit. The recruit would work in Tempe, Ariz., with duties including managing relationships with banks, bond buyers, rating agencies and attorneys. He or she also would help guide the company’s strategy as a frequent issuer of asset-backed bonds. DriveTime is focusing on candidates with at least five years of...



The Grapevine

Fri, 06 Sep 2019
Nomura hired Michelle Lee in August as a structured finance analyst in New York. Lee had been employed since August 2018 at Ernst & Young, where she focused on assigning values to asset- and mortgage-backed bonds.



The Grapevine

Fri, 06 Sep 2019
Volkswagen has hired an analyst to work on its asset-backed bond program. Evan Girdis started in August in the automaker’s Reston, Va., office. He had been employed in a similar capacity at Navient since June 2018, and before that was at General Dynamics. Volkswagen most recently issued asset-backed bonds in the U.S. in 2018, completing two auto-loan securitizations totaling $2.3 billion. Before that, the company’s most recent deal in...



The Grapevine

Fri, 06 Sep 2019
Credit Suisse has added an associate to its structured-finance origination team. Lev Pravda joined the bank’s New York office in August. He previously worked at Nomura, where he started in 2017.



The Grapevine

Fri, 06 Sep 2019
Hyundai is seeking a senior analyst for its capital-markets group in Irvine, Calif. The recruit would handle reporting and compliance tasks for the automaker’s securitizations of auto loans, auto leases and dealer-floorplan credits. Hyundai is focusing on candidates with at least five years of experience. Candidates can apply at hyundaicapitalamerica.com by clicking on “careers” and searching for job number...



Finra Clears Name of "Targeted' RBS Trader

Fri, 16 Aug 2019
Finra has expunged a notation of potential wrongdoing from its file on a former RBS whole-loan trader.The move essentially clears Frank Skibo of suspicions, at least from Finra’s perspective, that he was a party to improper mortgage-bond structuring and marketing practices in 2006 and 2007. It also offers a rare glimpse into what can happen when a financial professional is suspected of rule violations, but is never sanctioned.The note on...



Brexit Squeeze Brings Loan Repackagings

Fri, 16 Aug 2019
Issuers of bonds backed by nonperforming and reperforming mortgages in Europe are planning a wave of resecuritizations.The efforts would see companies including Blackstone, Cerberus Capital and M&G Prudential exercise call options on existing deals throughout September and October and immediately bundle the underlying loans into new securities. The reason: to lock in fresh funding for the accounts before the U.K.’s scheduled exit from the...



Non-QM Prepayments Turning Off Buysiders

Fri, 16 Aug 2019
Bond buyers are losing patience with high prepayment levels among securitized home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” guidelines.While the early payment rate among non-qualified loans has broadly subsided this year, the reduction wasn’t as large as many investors hoped. And indications are that the figure could grow in the coming months.The upshot: Only bonds from a...



SFA Takes Stand on Usury

Fri, 16 Aug 2019
The Structured Finance Association has filed a friend-of-the-court brief in support of J.P. Morgan, which is defending itself from a lawsuit claiming that its credit-card accounts are subject to state usury laws once they’ve been securitized.The suit, filed by five J.P. Morgan cardholders in U.S. District Court in Buffalo in June, claims the bank violated New York usury laws by transferring credit-card receivables to a securitization trust...



Sunrun Weighs Funding Options

Fri, 16 Aug 2019
Sunrun is planning a debt transaction for the fourth quarter, but has yet to choose whether to issue asset-backed securities or seek a bank facility.The decision will depend on market conditions, at a time when both forms of financing appear favorable. Indeed, both a May 31 securitization and a June 28 bank-debt refinancing brought better terms than the San Francisco company’s prior transactions.Should Sunrun opt for another securitization,...



Mortgage Book Up for Grabs

Fri, 16 Aug 2019
A portfolio of jumbo mortgages that would be suitable for securitization is up for sale.Mission Capital started shopping the loans on Aug. 13 on behalf of an undisclosed client. The deadline for bids is Aug. 27. A winner will be named Aug. 28.Sources said the loans are attracting a number of bidders, many of which likely would bundle the accounts into mortgage bonds.The portfolio encompasses 75 adjustable-rate loans with an unpaid principal...



Lender Seeks ABS Brainpower

Fri, 16 Aug 2019
Prospective asset-backed bond issuer Tally Technologies is seeking a head of capital markets whose duties would include getting its securitization program off the ground.The San Francisco firm, which offers personal lines of credit via a mobile app, launched the search in July. The recruit would work alongside chief executive Jason Brown, playing a key role in developing an overall financing strategy while building a team to handle investor...



Vista Point Program Taking Shape

Fri, 16 Aug 2019
Vista Point Mortgage has signaled to industry participants that it plans to tap the mortgage-bond market on a routine basis, confirming earlier speculation that the company might start its own issuance program.Sources said capital-markets head Jim Malloy already is talking to bankers and ratings agencies about a debut offering. He and his team also plan to meet with investors at Information Management Network’s “ABS East”...



Downgrade Pressures CLOs

Fri, 16 Aug 2019
An increase in exposures to loans rated “Caa1” or lower has contributed to an overall decrease in asset quality among U.S. collateralized loan obligations.The median weighted average rating factor — a key indicator of borrower health — deteriorated in June, rising 5 bp to 2840 for CLOs issued since the financial crisis, according to an index maintained by Moody’s. The agency attributed the weakening in part to an...



Cadence Offers Loan-Data Tool

Fri, 16 Aug 2019
Blockchain-technology company Cadence is rolling out a tool that will allow investors in structured transactions it sponsors to track the performance of underlying assets instantaneously.Starting Aug. 16, investors will be able to use the application to monitor the performance of small-business loans and other assets underpinning privately placed structured notes. Investors eventually will be able to apply the same blockchain technology to a mix...



The Grapevine

Fri, 16 Aug 2019
Senior executive Gerard Hammond will leave Deutsche Bank around the beginning of September to join Credit Suisse’s Los Angeles office as a managing director responsible formanaging relationships with issuers and investors in the asset-backed and corporate bond markets. Hammond had been at Deutsche since 2009, and in 2017 was appointed head of the bank’s asset-backed bond syndicate unit in Europe. He then moved back to the U.S. the...



The Grapevine

Fri, 16 Aug 2019
Former BNP Paribas banker Andrew Stratos resurfaced on Aug. 12 at Deutsche Bank. As a director in Deutsche’s New York office, Stratos handles aviation-finance transactions including aircraft-lease securitizations. He worked at BNP from 2006 to this June, most recently as head of a transportation-finance group. He also has worked at Societe Generale and...



The Grapevine

Fri, 16 Aug 2019
The destination of former NatAlliance Securities mortgage-bond trader Jack Sullivan has come to light. Sullivan, who left NatAlliance in July, will start in a similar role at Hilltop Securities in September. He’ll be stationed in New York, reporting to securitized-product head Christopher Belhumeur. Sullivan had joined NatAlliance via its January purchase of Auriga USA’s broker-dealer business, where he worked since 2015. He also has...



The Grapevine

Fri, 16 Aug 2019
Look for the Structured Finance Association to use an upcoming Libor symposium to focus on how older securitizations might adjust to the benchmark’s eventual elimination. That emphasis would depart from most current discussions, which have centered around how to incorporate so-called fallback mechanisms into new deals — something the trade group also plans to cover. The event takes place Sept. 11 at the Kimpton Hotel Monaco in...



The Grapevine

Fri, 16 Aug 2019
Alan Johannsen parted ways with BOK Financial last week, apparently to take a buy-side post. Johannsen had joined the Tulsa, Okla., operation last October with a focus on structured-product sales, following stops at Societe General, KGS-Alpha, RBS, Bank of America and Bank One. BOK is a the broker-dealer arm of Bank of Oklahoma.



The Grapevine

Fri, 16 Aug 2019
Debt-focused hedge fund operator Bramshill Investments has hired an associate whose coverage areas include structured products. Edward Lockwood started in the firm’s Newport Beach, Calif., office in July. He previously worked as a trading assistant on Nomura’s agency mortgage-bond desk, where he started in 2016. Bramshill manages $2.5 billion of gross assets, a portion of which is in a vehicle called Bramshill Structured Products Fund...



The Grapevine

Fri, 16 Aug 2019
Blockchain-technology company Cadence has added a securitization analyst to its staff. Daniel DeMatos joins the New York operation from Moody’s, where he worked since July 2018 with a focus on tasks including surveillance and cashflow modeling for collateralized loan obligations. New York-based Cadence is attempting to arrange a mix of securitizations in a digitized format (see article on Page...



The Grapevine

Fri, 16 Aug 2019
Analyst Jasmine Wang left Cross River Bank in July to join the capital-markets group at Octane Lending, a New York operation that matches dealers of powersports equipment with lenders that finance their customers’ purchases. Wang had started at Cross River in 2018 as an associate vice president with a focus on securitization financing, warehouse lending, and loan management for clients, including those that write online personal...



The Grapevine

Fri, 16 Aug 2019
Santander is seeking an associate for its securitization group in New York. The position encompasses structuring and execution of deals for issuers worldwide. Santander is focusing on candidates with at least nine years of experience. To apply, click on “careers” at santanderbank.com and search for job number 1904310.



CLO Investors Grumble Over Partial Refis

Fri, 09 Aug 2019
Investors in the mezzanine tranches of collateralized loan obligations are crying foul over arrangements in which issuers are refinancing only the deals’ senior securities.The transactions, from companies including Ares Management and Bain Capital, reflect a situation in which spreads on replacement securities are tighter than original levels for senior obligations, but would be wider for mezzanine notes.For issuers, the “partial...



Corporate Card Lender Joins Deal Pipeline

Fri, 09 Aug 2019
A charge-card lender that caters to startup businesses is developing a securitization program.Brex, a San Francisco company whose backers include PayPal founders Max Levchin and Peter Thiel, plans to bring its first offering to market in the coming months. The transaction likely would total $100 million to $250 million.Barclays is expected to run the books. The bank agreed in April to supply Brex with a $100 million warehouse line.Sources said...



Mortgage Pros Map Lobbying Campaign

Fri, 09 Aug 2019
In a bid to stimulate issuance of publicly offered mortgage securitizations, industry professionals are preparing to lobby the SEC to amend Regulation AB.The effort would entail the formation of an alliance of mortgage-bond issuers, bankers and lawyers whose goal would be to convince the agency to relax several rules imposed under its 2016 update to Reg AB — in particular, extensive disclosures of loan data.Changes to “Reg AB 2”...



European Fund Shop Calls It Quits

Fri, 09 Aug 2019
Structured-product investor Wyetree Asset Management is shutting down.The London hedge fund manager, led by chief investment officer Judith Sciamma, began unwinding its funds about a month ago. The firm was managing about $150 million and employed a staff of 12.Wyetree, whose early investors included Anthony Scaramucci’s SkyBridge Capital, invested in a variety of products in the U.S. and Europe including collateralized loan obligations,...



Big Investor Tackling Libor Issue

Fri, 09 Aug 2019
A big holder of student-loan bonds is rallying other investors to support amendments to deal documents in response to the phase-out of Libor — rather than wait for issuers or policymakers to solve the problem.While education lenders including Education Credit Management, Navient and Nelnet added new benchmark language to the documents of their most recent securitizations, less progress has occurred when it comes to the floating-rate...



Issuers Brush Off Equity Volatility

Fri, 09 Aug 2019
Seemingly unaffected by broader economic concerns, the market for asset- and mortgage-backed bonds was humming this week.Expectations are that $10.4 billion of fresh offerings will have priced during the Aug. 5-9 stretch, with investors eagerly snatching up much of the supply. In fact, a few transactions priced at tighter spreads than those suggested by underwriters.Take a $300 million securitization of timeshare loans from Hilton. The deal...



Fund Operator Charting Purchases

Fri, 09 Aug 2019
Private equity firm Antarctica Capital is moving ahead with plans to form a hedge fund whose investments would include structured products.After more than a year of planning, the New York operation is set to launch the vehicle in the fourth quarter with $50 million to $100 million. It currently is selecting service providers, according to sister publication Hedge Fund Alert.The fund would take an opportunistic approach to trading a mix of credit...



Upgrade Building Issuance Routine

Fri, 09 Aug 2019
Upgrade is preparing its next personal-loan securitization.The offering, expected to total more than $200 million, is set to hit the market in the coming week. Jefferies will run the books, with Kroll assigning ratings to the bonds.Upgrade’s securitization strategy calls for it to increase its output over time. The San Francisco company launched its asset-backed bond program last October with a $282.1 million deal led by Credit Suisse, and...



More Losses for Upper-Tier Loans

Fri, 09 Aug 2019
Losses among securitized pools of personal loans to the most creditworthy borrowers continue to rise.According to an index maintained by Kroll, losses among so-called Tier 1 loans increased 28 bp in July to an annualized 5.93% while delinquencies were up 2 bp to 1.37%. Tier 1 loans are written by Marlette Funding and Social Finance to borrowers with credit scores of 710-740. Tier 2 loans saw even more deterioration, with losses jumping 188 bp to...



Subprime Autos Trending Worse

Fri, 09 Aug 2019
Performance indicators for securitized pools of subprime auto loans worsened during the month ended July 15.According to an index maintained by Fitch, losses among those accounts rose 67 bp to an annualized 7.23% while delinquencies jumped 59 bp to 5.11%. The deterioration in part reflected a tendency among borrowers to fall behind on payments after exhausting their annual income-tax refunds, along with weak underwriting standards that prevailed...



The Grapevine

Fri, 09 Aug 2019
Executive director Brock Wolf has left Natixis’ asset-backed securities origination unit in New York. Wolf, who specialized in financing of unusual assets including Property Assessed Clean Energy loans, had been on board since 2013. He will wait out a gardening leave before starting a new job. Earlier, Wolf led the asset-backed bond origination team at Brevet Capital and spent time at NewOak Capital, Garrison Investment, UBS and Lehman...



The Grapevine

Fri, 09 Aug 2019
Jamie Ramenofsky has left her job as head of relationship management for Silicon Valley Bank’s warehouse-lending and securitization group — a post in which she worked with originators of auto loans, personal loans and small-business loans that tap the Santa Clara, Calif., operation to help bundle their receivables into asset-backed bonds. Ramenofsky had arrived in 2017 from the top capital-markets post at Upstart. She also has worked...



The Grapevine

Fri, 09 Aug 2019
Mortgage-bond trader Jack Sullivan left NatAlliance Securities’ New York office in July. His plans are unknown. Sullivan joined NatAlliance through its January purchase of Auriga USA’s broker-dealer business, where he worked since 2015. He also has worked at Deutsche Bank.



The Grapevine

Fri, 09 Aug 2019
Former Demica Finance executive Tim Davies is again offering his services as a consultant, with a focus on helping trade-finance businesses securitize their assets. The London-based Davies, who operates under the name Global Structure Finance Solutions, worked at Demica from 2015 to this June — most recently as chief investment officer of a unit called More Finance that helps clients package their trade receivables into securities. He was...



The Grapevine

Fri, 09 Aug 2019
Hunton Andrews has added an associate to its securitization practice in Charlotte. Quince Thompson, who works on both asset- and mortgage-backed bond deals, previously handled a range of financing work at Alston & Bird. She started there in 2013, after a stop at Homeward Residential.



The Grapevine

Fri, 09 Aug 2019
Columbia Investment has added a structured-product analyst to its ranks. Katherine Sudol joined the New York operation in July. Sudol had been employed at Goldman Sachs since 2016, most recently as a trader of nonperforming and reperforming mortgages. Columbia Investment manages the endowment assets of Columbia University.



The Grapevine

Fri, 09 Aug 2019
Armine Karajyan joined Kroll’s New York office in July as an associate director covering a mix of mortgage bonds. Karajyan had been working for the past year as an assistant vice president in the asset-backed bond group at DBRS, which is in the midst of a takeover by Morningstar. She also has worked as an advisory manager at KPMG.



The Grapevine

Fri, 09 Aug 2019
Toorak Capital, which writes loans on rental properties, has hired a principal. Matthew Zall arrived at the Summit, N.J., operation in June after a brief stop at Direct Access Capital — where he handled trading and risk-management duties involving mortgage products. Zall’s former employers also include Patch of Land, B2R Finance, J.P. Morgan, Bear Stearns and Lazard. Toorak, led by former B2R head John Beacham, has been looking at...



The Grapevine

Fri, 09 Aug 2019
Andrew Kim joined Sound Point Capital’s collateralized loan obligation team in July as an associate. Kim previously worked at Guggenheim, where he started in 2017. His prior employers also include Deutsche Bank and J.P. Morgan. New York-based Sound Point offers a mix of debt-focused investment programs. It has issued 24 CLOs totaling $14.2 billion since...



Shifting Economy Slams Railcar Securities

Fri, 02 Aug 2019
Investors are taking a beating on railcar-lease bonds.A mix of unfriendly regulatory and economic factors have caused a few deals’ asset-performance measures to fall below their required thresholds, forcing them to begin unwinding ahead of schedule. And even transactions that continue to perform as expected are losing value.Among the factors weighing on the asset class are President Trump’s trade wars, which have reduced imports and...



Default Looms for CAN Small-Business Deal

Fri, 02 Aug 2019
Investors essentially have given up on the possibility that the subordinate class of CAN Capital’s lone securitization will pay off.The deal, backed by small-business loans, ran into trouble when a booking error wiped out its over-collateralization cushions in late 2016. At the time, CAN accelerated payments to senior noteholders while suspending distributions for the bottom tranche.The mistake also rendered CAN unable to write new...



Westinghouse Mulling Nuclear-Power Deal

Fri, 02 Aug 2019
Westinghouse Electric is exploring securitization.What’s known at this point is that the bonds would be backed by cashflows from the company’s nuclear-power division. The exact nature of the receivables remains uncertain, however.Westinghouse’s nuclear-power unit constructs plants and supplies fuel for energy companies, and handles services including maintenance and instrumentation. It currently is building eight generation...



CFPB Timeline Raises Skepticism

Fri, 02 Aug 2019
Home-loan professionals are questioning whether the Consumer Financial Protection Bureau will be able to act as quickly as planned to end its “qualified-mortgage patch.”At issue is the CFPB’s July 24 announcement that it would enforce the January 2021 expiration of a measure that has enabled Fannie Mae and Freddie Mac to buy loans that don’t meet its qualified-mortgage standards. The regulator long had been seen as likely...



Insurers Eye Older Loans for Deals

Fri, 02 Aug 2019
MGIC and Radian are mulling the sale of risk-transfer securities referencing pools of seasoned mortgages.In the past couple of years, private mortgage insurers have issued increasing volumes of risk-transfer notes to shed some of the risk from policies covering newly originated home loans. So far, only Arch Capital has attempted a deal referencing older mortgages, completing three.But in their second-quarter earnings calls, executives at both...



Yamaha Revving Up ABS Program

Fri, 02 Aug 2019
Yamaha Motor Corp. USA is moving ahead with plans to return to the asset-backed bond market after a long absence.The company’s lending arm, Yamaha Motor Finance, is searching for a senior investor-reporting specialist to support one or more securitization programs. For more than a year, the Cypress, Calif., company’s treasury department has been working on a plan to securitize Yamaha-branded credit-card receivables. And it’s...



Student Loans Add Libor Switches

Fri, 02 Aug 2019
Education lenders are preparing for the end of Libor.Three of the latest deals in the sector, from Educational Credit Management, Navient and Nelnet, included provisions that spell out the process of adopting new benchmarks for their floating-rate classes. The procedures in some ways follow a May 31 set of recommendations from the Federal Reserve’s Alternative Reference Rates Committee, but depart on one key aspect: timing of the...



CLO-Buying Effort Takes Shape

Fri, 02 Aug 2019
Memphis asset manager Preserver Partners has launched a hedge fund that invests in collateralized loan obligations.Preserver CLO Fund began trading in June with $6 million, mostly from Preserver’s own executives. The plan is to begin marketing the vehicle after an undetermined incubation period, according to sister publication Hedge Fund Alert.The fund’s initial investments consist only of the debt pieces of CLOs. It also is able to...



Fannie Ropes Off Riskier Loans

Fri, 02 Aug 2019
Fannie Mae’s decision to seek reinsurance for a pool of affordable mortgages reflected a realization that the receivables weren’t suitable for its flagship risk-transfer program.Fannie tested bond investors’ willingness to absorb exposures to the accounts by adding a few dozen of them to the reference portfolio for one of its Connecticut Avenue Securities transactions last year. But feedback from buysiders suggested it would be...



Suit Accuses Honor Execs of Fraud

Fri, 02 Aug 2019
CIVC Partners is seeking $50 million of damages from the principals of defunct subprime auto lender Honor Finance, claiming they ran a fraudulent business.The private equity firm, which owned a majority stake in the Evansville, Ill., lender, filed a lawsuit in May accusing Honor founders James Collins and Robert DiMeo of a multi-faceted conspiracy. Among the allegations: that Collins and DiMeo misrepresented loan performance and didn’t...



JP Morgan Adds Conduit Capacity

Fri, 02 Aug 2019
J.P. Morgan has launched the latest in a series of collateralized commercial paper vehicles.The offering, Collateralized Commercial Paper V Co., began selling paper this week with the aim of issuing up to $5 billion of notes by yearend. The securities are rated P-1/A-1/F-1+ by Moody’s, S&P and Fitch.Collateralized-CP vehicles function much like commercial-paper conduits. But instead of funding receivables for lenders, they use the proceeds...



The Grapevine

Fri, 02 Aug 2019
Bill Heskett is no longer working at Cantor Fitzgerald. Heskett had just joined the brokerage firm’s New York office last September as one of the senior-most members of its asset-backed securities banking team, arriving as part of an aggressive hiring campaign targeting high-ranking securitization professionals. Heskett was a senior managing director at Bank of America before that, having joined the bank via its credit-crisis takeover of...



The Grapevine

Fri, 02 Aug 2019
Hank Sandlass has landed a consulting assignment in which he is helping GreensLedge with an effort to launch a commercial-paper conduit. Sandlass had retired in January 2018 from the top conduit post at Natixis, where he started in 1998. Earlier, he worked at CIBC and Citigroup. GreensLedge started working on its conduit in 2018 and expects to have the vehicle up and running this year. The New York firm’s executives include David Powar and...



The Grapevine

Fri, 02 Aug 2019
Loomis Sayles has added a senior asset-backed bond trader to its Los Angeles outpost. Andre Ashook arrived in June from Western Asset Management, where he worked since 2014 — most recently with a focus on trading whole loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards. Before that, he was an analyst at...



The Grapevine

Fri, 02 Aug 2019
Blake Lepire signed on with Silicon Valley Bank in July as a New York-based vice president helping to oversee warehouse lending to companies that originate and securitize online personal loans. Lepire had been working in a similar capacity at Cross River Bank since 2017. Before that, he was at BDO USA.



The Grapevine

Fri, 02 Aug 2019
Trader Eric Schropp left BNP Paribas’ New York office this week. Schropp worked at the bank since 2016, dealing primarily in risk-transfer securities and other types of mortgage bonds. Before that, he was at Nomura.



The Grapevine

Fri, 02 Aug 2019
Natixis has an opening for a senior asset-backed securities banker in New York. The recruit would work in a variety of asset classes, including auto loans, credit-card accounts, mortgages, aircraft leases, personal loans and Property Assessed Clean Energy loans. Natixis is focusing on candidates with at least 12 years of experience. To apply, click on “careers” at natixis.com and search for job number...



The Grapevine

Fri, 02 Aug 2019
Ford is seeking an analyst for its securitization unit in Dearborn, Mich. The recruit’s duties would include servicing-related functions and monitoring of the automaker’s asset-backed bonds in the U.S. and Canada. Ford is focusing on candidates with at least three years of experience. To apply, click on “careers” at ford.com and search for job number...



The Grapevine

Fri, 02 Aug 2019
Analyst Chloe Ruan left the structured-product investment team in Morgan Stanley Asset Management’s New York office this month to pursue a graduate business degree. Ruan had joined the buy-side operation in 2013, straight out of college.



The Grapevine

Fri, 02 Aug 2019
Information Management Network has selected the Sofitel Los Angeles at Beverly Hills hotel as the site for its debut “Non-QM Forum” on Nov. 14-15. The event will feature panels on the origination, servicing, financing and management of home loans that don’t meet the Consumer Financial Protection Bureau’s definition of “qualified...



The Grapevine

Fri, 02 Aug 2019
NatWest Markets has added an analyst to its London office. Elizaveta Andreeva joined the investment bank this month with a focus on leveraged loans and distressed credit products. Andreeva previously researched high-yield debt in Europe at Deutsche Bank, where she started in 2016. She also has worked at McKinsey & Co.



Norinchukin Resumes CLO Buying Effort

Fri, 26 Jul 2019
Norinchukin Bank bought the entire senior tranche of Oaktree Capital’s latest collateralized loan obligation — the Tokyo institution’s first such investment since April.Norinchukin, the largest holder of U.S. CLOs, had effectively paused its purchases by bidding at wider spreads than other buyers. The goal, in part, was to see where the deals would clear in its absence.But Norinchukin again is bidding tighter. Case in point: The...



FirstKey Postpones Rental-Home Offerings

Fri, 26 Jul 2019
FirstKey Mortgage has delayed plans to issue bonds backed by rental-home cashflows.The Cerberus Capital unit had been looking at this year to float an inaugural offering of perhaps $500 million, with routine transactions to follow. Now, sources are saying it will wait at least until late 2020.The new timeline reflects a decision on FirstKey’s part to rely more heavily on a $2 billion line of credit it secured from Morgan Stanley around...



Solar-Power Equipment Lender Maps Deals

Fri, 26 Jul 2019
(SEE CORRECTION BELOW) A company that finances solar-power equipment and home improvements is readying a securitization program.The New York operation, Sunlight Financial, expects to float its debut bond deal during the first half of 2020. Routine offerings would follow.To that end, Sunlight is seeking a head of capital markets. The recruit would work under chief financial officer Barry Edinburg, handling duties including deal structuring,...



Fed Outlook Drives Down Yields

Fri, 26 Jul 2019
Asset-backed bond values continue to rise amid anticipation of an interest rate cut.With the Federal Reserve widely expected to reduce its targeted federal funds rate by at least 25 bp at its July 30-31 meeting, investors have been rushing to pick up fixed-rate securities at current yields. Their targeted products include notes backed by prime-quality auto loans, automotive fleet leases and credit-card receivables.The added buying already has...



Blockchain Offering Scaling Up

Fri, 26 Jul 2019
After a slight delay, home-equity line originator Figure Technologies is planning a larger version of its debut securitization.Figure had been looking at June to issue $100 million of privately placed notes in an unrated and digitized format. But with its origination volume soaring, the San Francisco company has postponed the offering until late in the third quarter while boosting its size to $200 million to $300 million.Jefferies will run the...



Commercial Solar Deal in the Works

Fri, 26 Jul 2019
A clean-energy investor is laying the groundwork for what would be the first widely distributed bond offering backed exclusively by cashflows from commercial solar-power projects.The deal, expected to hit the market in the next year, would securitize a portfolio of power-purchase agreements tied to solar farms owned and operated by CleanCapital. The New York firm is assembling the collateral pool in partnership with CarVal Investors, which...



Upstart Readies Personal-Loan Deal

Fri, 26 Jul 2019
Online lender Upstart is preparing its next securitization of personal loans.The deal, with an expected face value of $225 million, would be Upstart’s second asset-backed bond offering of 2019. Goldman Sachs is running the books. Kroll and possibly DBRS will rate the securities.Upstart originates loans up to $50,000 to borrowers with credit scores of 680-710. Since its inception in 2014, the San Carlos, Calif., firm has lent out $3.3...



Late-Term Refis Catch On for CLOs

Fri, 26 Jul 2019
Demand for short-term collateralized loan obligation paper has become so strong that issuers are refinancing deals during their amortization periods.At least two such exchanges have taken place since early June, for THL Credit’s THL Credit Wind River, 2012-1, and ArrowMark Partners’ Elevation CLO, 2015-4. In both cases, the deals’ reinvestment periods already had ended.In a typical CLO structure, the issuer can reinvest capital...



Positive Signs for Card ABS

Fri, 26 Jul 2019
Performance indicators for securitized credit-card accounts remained strong in the second quarter.The 60-day delinquency rate among U.S. bankcard pools fell 8 bp from the first quarter to 1.15%, according to an index maintained by Fitch. Charge-offs, meanwhile, inched up 7 bp to 3.15%. “Despite a slight uptick, performance remains strong,” Fitch senior director Herman Poon wrote. Delinquencies among retail-branded card accounts fell...



Avant Preps Hefty Personal Loan Deal

Fri, 26 Jul 2019
Online lender Avant is readying a securitization of subprime personal loans that’s expected to weigh in around $350 million — its largest asset-backed bond offering to date.Avant plans to begin marketing the deal in September via bookrunners Credit Suisse and J.P. Morgan, with ratings from Kroll.The issue would be the second securitization of the year for Avant, which has completed eight deals since 2016 totaling $2.3 billion,...



AgriBank's Holdings Trend Higher

Fri, 26 Jul 2019
AgriBank’s asset-backed bond holdings continue to rebound.The farm-loan originator was holding $378 million of the securities at the end of the first quarter, up from $224.8 million at yearend 2018 and $97.7 million three months before that.AgriBank had been selling positions or letting them run off throughout 2017 and much of 2018, adding to a pattern of expansions and contractions in its portfolio. The St. Paul, Minn., institution was...



Navient Cautions on Pass-Throughs

Fri, 26 Jul 2019
After selling $412 million of pass-through certificates last month, Navient has made it clear to investors that it doesn’t plan to become a routine issuer of such deals.The Wilmington, Del., lender sold the pass-through notes privately to fund a portfolio of loans it had written to refinance borrowers’ education debts. Other details were unavailable, but chief financial officer Christian Lown touted the transaction on a July 24...



The Grapevine

Fri, 26 Jul 2019
John Hanisch resigned from his New York post as head of securitized-product trading at Deutsche Bank last week. Taking his place is Sebastien Cottrell, who had been overseeing collateralized loan obligation trading. Hanisch started at Deutsche in 2007. Cottrell arrived in 2010, after stops at BNP Paribas, BlueMountain Capital, Merrill Lynch and Bank of...



The Grapevine

Fri, 26 Jul 2019
Erez Biala left his position as head of structured credit product trading and origination at Amherst Pierpont Securities this week. Biala had joined the broker-dealer’s New York office in 2016 from Jefferies, where he co-headed collateralized loan obligation trading. He also has worked at Barclays, Lehman Brothers and Morgan Stanley.



The Grapevine

Fri, 26 Jul 2019
Ares Management added a principal to its structured-product investment staff in New York this month. Greg Spilberg most recently was employed at AIG since 2006, helping to run a portfolio of asset-backed securities, mortgage bonds and collateralized loan obligations. He also has worked at TIAA.



The Grapevine

Fri, 26 Jul 2019
Prosperity Life hired Deva Mishra this month as chief investment officer, a job that includes oversight of a portfolio of securitized products. Mishra, who is stationed in New York, previously covered holdings including asset- and mortgage-backed bonds as deputy chief investment officer at Global Atlantic Financial. He had arrived there in 2013, after stops at Goldman Sachs and Credit...



The Grapevine

Fri, 26 Jul 2019
Trader Roy Cantu rejoined Barclays’ New York office in June with a focus on deals backed by pre-credit-crisis mortgages and newer home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards. Cantu had been on the sidelines since leaving a senior portfolio manager position that he held at C12 Capital from 2009 to 2013. He served his first stint at Barclays before that, preceded...



The Grapevine

Fri, 26 Jul 2019
Millennium Management added a mortgage-bond trader to its staff last week, installing Idan Fireman as a partner in New York. Fireman, who covers both agency and private-label securities, had been at Brean Capital since July 2018. He also has worked at Citigroup.



The Grapevine

Fri, 26 Jul 2019
Vice president Margaret Lu has left Societe Generale to join J.P. Morgan’s New York office with a focus on measuring the values and market risk associated with the bank’s holdings of asset- and mortgage-backed securities. Lu had been working in a valuation capacity at SocGen since 2016, following stops at Deutsche Bank, CIC, Merrill Lynch, Natixis and Bear Stearns. At J.P. Morgan, she reports to executive director Gilles...



The Grapevine

Fri, 26 Jul 2019
Stan Stratton has signed on as a director in the capital-markets unit of Happy Money, a Costa Mesa, Calif., company that writes personal loans with financing from credit unions. While Stratton has a background in securitization, it’s unclear if his assignment suggests the launch of a bond program. He most recently advised clients on structured-finance and capital-raising matters through his SJS Consulting since 2014, and before that was at...



The Grapevine

Fri, 26 Jul 2019
David Paulzak joined buy-side shop Palmer Square Capital in June as a credit analyst. Paulzak, a distressed-debt specialist, had been working at Wells Fargo since 2016. His former employers also include Guggenheim and ING. Palmer Square invests opportunistically in structured credit products and other debt instruments. It also issues and invests in collateralized loan...



The Grapevine

Fri, 26 Jul 2019
Mayer Brown has lured collateralized loan attorney Arthur Rublin away from DLA Piper. Rublin started as a counsel in Mayer’s New York office on July 22. He had been at DLA since 2017, representing CLO issuers and underwriters. He previously worked at BlackRock, McKee Nelson and Fried Frank.



MBS Pros Grumble Over Moody's Update

Fri, 19 Jul 2019
Issuers and investors are resisting a proposal by Moody’s to take mortgage-insurance policies into account in its ratings of home-loan securities.The pushback focuses on so-called rejection rates for mortgage-insurance policies — that is, the projected percentage of losses within securitization pools that mortgage insurers aren’t required to cover. As part of a broad update to its methods for grading deals backed by...



CLO Issuers Favor Short-Dated Refinancings

Fri, 19 Jul 2019
As they increasingly refinance their deals, the proportion of collateralized loan obligation issuers that are opting not to extend the transactions’ reinvestment periods is growing.Responding to tightening spreads, issuers refinanced seven CLOs from July 1-15. That’s about on pace with June’s total of 14, while marking an increase from 10 in May, eight in April, nine in March, five in February and three in January.For the firms...



Credit Agricole's Pilcer Calls End to Career

Fri, 19 Jul 2019
Industry veteran Sam Pilcer is retiring.Pilcer, a managing director at Credit Agricole, has worked on a range of securitizations but is best known as one of the longest-tenured professionals in the commercial-paper conduit market. His last day of work is Aug. 31.Pilcer entered the structured-finance industry in 1993, when he left a secured-lending post at ABN Amro to join what was then was a fledgling securitization group at Moody’s. His...



UK Plans Final Mortgage Auction

Fri, 19 Jul 2019
The U.K. Treasury’s “bad bank” is preparing to unload its final batch of pre-credit-crisis mortgage assets.The operation, U.K. Asset Resolution, is looking at September to begin accepting bids on at least £5 billion ($6.2 billion) of loans and bonds it absorbed from Northern Rock Asset Management and Bradford & Bingley after those companies were nationalized during the 2007-2008 market crash. The sale, which is expected to...



Rental-Home Market Stumbling

Fri, 19 Jul 2019
The market for bonds backed by rental-home cashflows remains in a slump.While industry professionals were anticipating a sluggish first half for the asset class, dealflow has been even slower than expected — with just four transactions totaling $1.3 billion having priced so far this year, according to Asset-Backed Alert’s ABS Database.Now, indications are that the second half will see similar issuance activity. Indeed, Bank of America...



Key Macquarie Pros Sign Off

Fri, 19 Jul 2019
Macquarie has lost two of its top structured-finance professionals in the U.S.New York-based managing directors Brian Foley and Mark Simmer resigned on July 12, following a period in which Macquarie has been largely absent as an underwriter of securitized products in the States. Instead, the Sydney institution’s deals mainly have come in the form of offerings backed by Australian mortgages, auto leases and equipment leases.Describing...



Outlook Weakens for Pimco REIT

Fri, 19 Jul 2019
Pimco doesn’t appear to be in a rush to resurrect plans to sell $1 billion of shares in a new mortgage REIT.The Newport Beach., Calif., firm tried three times to conduct an initial public offering for its Pimco Mortgage Income Trust, but postponed the sale in May as investors balked at the entity’s proposed value. At the time, the equity market was in the midst of a month-long slide.But a subsequent rebound doesn’t appear to...



Laurel Road Resumes Issuance

Fri, 19 Jul 2019
Education lender Laurel Road has returned to the asset-backed bond market, defying industry participants’ assumptions that it would rely on funding from new parent KeyBank.The Bridgeport, Conn., company this week began marketing a $236.3 million offering via its Laurel Road Prime Student Loan Trust. The issue, underpinned by loans written to refinance borrowers’ other student debts, includes two senior tranches that are expected to...



Tariffs Dent Container-Lease Deals

Fri, 19 Jul 2019
President Trump’s trade war is hurting the values of bonds backed by shipping-container leases.Single-A-rated bonds with five-year lives in the asset class were trading on the secondary market this week at 150 bp over swaps. That’s about 5 bp wider than a week ago.At issue is a diminishing need for cargo containers as existing and proposed tariffs on goods from China and European Union nations crimp traffic at major shipping ports....



Loan Downgrades Weigh on CLOs

Fri, 19 Jul 2019
A spate of corporate downgrades caused U.S. collateralized loan obligations’ exposures to obligors with “Caa” grades to increase in May.Median holdings in post-credit-crisis deals’ triple-C buckets increased 23 bp to 3.63% for the month, according to Moody’s. That included a 14 bp rise for transactions still in their reinvestment periods, to 3.40%, and a 29 bp jump for those in their amortization phases, to 6.15%....



SEC Eyes Changes to Rule 144A

Fri, 19 Jul 2019
The SEC is seeking input from industry professionals as it considers changes to the regulatory framework for issuance of so-called exempt securities, including Rule-144A offerings.In a June 18 “concept release,” the regulator said it “believes our capital markets would benefit from a comprehensive review of the design and scope of our framework for offerings that are exempt from registration.” To that end, it opened a...



The Grapevine

Fri, 19 Jul 2019
Nearwater Capital installed Christopher Conetta on July 15 as a senior managing director in charge of its liquid-markets division. In that role, Conetta oversees a new commercial-paper conduit called Columbia Funding through which the New York firm helps top-rated banks obtain highly liquid securities that they use for operational, regulatory and funding purposes. Conetta most recently led trading of Treasurys, agency mortgage bonds, cash...



The Grapevine

Fri, 19 Jul 2019
Morgan Lewis has added a senior associate to its securitization practice in New York. David Gerst previously worked at Goldman Sachs as a vice president focusing on legal matters involving mortgage-related transactions. Before that, Gerst worked at McKee Nelson. His colleagues there included Reed Auerbach, the current head of Morgan Lewis’ securitization...



The Grapevine

Fri, 19 Jul 2019
Geoffrey Silverstein has left his post as a director at Societe Generale to head credit-risk management for MetLife’s investments in structured products, including asset-backed securities, mortgage bonds and collateralized loan obligations. Silverstein starts July 22 in the insurer’s office in Whippany, N.J., reporting to credit-risk management chief Orli Almog. Silverstein had joined SocGen in 2016 after stops at UBS and Credit...



The Grapevine

Fri, 19 Jul 2019
Investment-banking firm Kligier Capital has hired an asset-backed finance specialist. Rick Cosse joined the operation’s New York office last week with a focus on assisting aircraft-leasing and shipping companies in assembling and distributing private structured-finance transactions. Cosse had been running his own firm, called Perigee Finance, since 2000. Before that, he was at Societe Generale. Kligier was launched in January by Laurie...



The Grapevine

Fri, 19 Jul 2019
Josh Mahon joined OFS Management’s McLean, Va., office in June as an analyst on the Chicago firm’s collateralized loan obligation-issuing team. Mahon, who covers bank loans to technology companies, had been heading credit research at Vereit since 2013. He also has worked at Voya Investment and Honeywell.



The Grapevine

Fri, 19 Jul 2019
Deutsche Bank added a vice president to its commercial-asset securitization team in New York last week. Ian Flood, who specializes in structuring bonds backed aircraft leases, had been at Citigroup since April 2018. Before that, he was at BNP Paribas.



The Grapevine

Fri, 19 Jul 2019
Nassau Private Credit, a Nassau Re unit that launched this year with a focus on investing in collateralized loan obligations, has an opening for a senior associate. The company is zeroing in on candidates with 3-7 years of CLO experience. The recruit would be stationed in Darien, Conn. Nassau Private Credit is led by Bruce Brittain and Russell Pemberton. To apply, click on “about” at nsre.com and search for job number...



The Grapevine

Fri, 19 Jul 2019
Former Avant chief financial officer Suk Shah has landed in the same role at mortgage lender Guaranteed Rate of Chicago. Shah worked at Avant from 2014 until this June, playing a key role in the subprime personal lender’s securitization program. Earlier, he worked at HSBC and General Electric. While Guaranteed Rate writes a variety of agency and non-agency loans, there’s no word on whether the company has any securitization plans....



The Grapevine

Fri, 19 Jul 2019
Payday lender Money Mart is seeking a director for its capital-markets group. The recruit would assist in all of the company’s capital-raising initiatives, including the continued development of a long-planned securitization program. He or she would be stationed in Malvern, Pa. Money Mart is focusing on candidates with 7-10 years of experience. To apply, click on “careers” at...



Mizuho Forming Mortgage-Bond Division

Fri, 12 Jul 2019
Mizuho wants to start underwriting non-agency mortgage bonds.The bank launched the initiative this week, offering both warehouse financing and bond structuring, distribution and trading services to prospective clients in the U.S. It plans to work on a range of asset types, including loans that do and don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” guidelines, plus reperforming accounts.The effort...



New Assignments Keep Coming for Citi Execs

Fri, 12 Jul 2019
Another wave of leadership changes has taken place at Citigroup as the bank continues to reorganize its structured-finance division.Most recently, the bank shifted Ted Counihan out of his role as co-head of securitized-product trading and named him as co-head of its worldwide asset-backed securities banking team. He now shares that title with John Dahl, who had been leading the group alone.Citi also named insider Aoiffe McGarry as head of its...



Issuers Set to Unleash Flood of New Deals

Fri, 12 Jul 2019
Get ready for a deluge of asset- and mortgage-backed bond offerings.Bankers in the U.S. are readying some 20 transactions totaling $8 billion for July 15-19 — roughly twice this year’s average weekly output — as issuers race to squeeze in their last transactions before investors take time off in August.The deal calendar for next week features some of the most-active issuers, including auto lenders General Motors Financial,...



CommonBond Tries Hybrid Structure

Fri, 12 Jul 2019
CommonBond has financed a pool of student loans via a transaction that combines aspects of a securitization and a pass-through certificate.The privately placed deal, which priced in the second quarter, was similar to a pass-through certificate insofar as it involved a single investor acquiring an interest in a portfolio of loans. But unlike most pass-throughs, it had a senior-subordinate structure with multiple tranches rated by DBRS.The...



No Movement on CLO Guidelines

Fri, 12 Jul 2019
Collateralized loan obligation issuers still aren’t abiding by the Federal Reserve’s May 31 recommendation that new deals include provisions for automatic benchmark replacements.In anticipation of the coming phaseout of Libor, the Fed’s Alternative Reference Rates Committee released the guidelines as part of a broader package addressing “fallback language” for CLOs and asset-backed bonds. The idea is to ensure that...



Data Stays Healthy for Auto Pools

Fri, 12 Jul 2019
Losses among securitized pools of subprime auto loans continued to drop during the month ended June 15.According to an index maintained by Fitch, losses fell 6 bp during the period to an annualized 6.56% — preserving a streak of improvements that began at 10.34% in January. Meanwhile, delinquencies among subprime loans moved up 14 bp to 4.52% while remaining within historical norms for the month. For prime-quality loan pools, losses rose 2...



US Bank Widens Trustee Lead

Fri, 12 Jul 2019
U.S. Bank has solidified its longtime standing as the most active trustee for U.S. asset- and mortgage-backed bonds, while retaining its leading status in the collateralized loan obligation sector.The bank appeared on 95 asset- and mortgage-backed bond transactions totaling $61 billion during the first half of 2019, earning a 33.5% market share. Its tally represented a 31% jump in deal volume, contrasting sharply with a 4% decline in overall...



S&P Retains League-Table Lead

Fri, 12 Jul 2019
S&P continues to rate more U.S. asset- and mortgage-backed bond deals than its rivals.The agency, which has topped the league table every year since 2012, finished the first half with assignments on 155 deals totaling $98.5 billion. That amounted to a 54.2% market share, according to Asset-Backed Alert’s ABS Database.S&P’s volume represented a 2% decline from the year-earlier period, a strong showing considering that overall supply...



Indicators Slip for Top Borrowers

Fri, 12 Jul 2019
Performance indicators worsened in June for securitized pools of personal loans to the most creditworthy borrowers.According to an index maintained by Kroll, losses among so-called Tier 1 loans rose 60 bp for the month to an annualized 5.65%. Meanwhile, delinquencies were up 7 bp to 1.35%. Tier 1 loans are written by Marlette Funding and Social Finance to borrowers with credit scores of 710-740. Down a level in asset quality, Tier 2 loans saw...



Busiest Law Firms Still Sidley, Mayer

Fri, 12 Jul 2019
Sidley Austin maintained its status as the most active underwriter counsel for U.S. asset- and mortgage-backed bonds in the first half, after wresting the title from Morgan Lewis last year.During the first six months of the year, Sidley fielded 57 assignments from bookrunners, according to Asset-Backed Alert’s ABS Database. That’s seven more deals than it handled as underwriter counsel in the first half of 2018.Well back in second...



Katten Gains in Underwriter Field

Fri, 12 Jul 2019
A push by Katten Muchin to increase its share of the underwriter-counsel market appears to be paying off.The Chicago firm, which routinely ranks among the most active issuer counsel, is now also among the top 10 law firms advising underwriters of asset- and mortgage-backed bond offerings. In the first half, it fielded seven underwriter-counsel assignments, compared to a full-year 2018 total of just six, according to Asset-Backed Alert’s ABS...



The Grapevine

Fri, 12 Jul 2019
Cecilia Park joined Credit Agricole’s New York securitization-banking team in June as a managing director responsible for arranging deals backed by transportation-related assets, including aircraft leases. Park had been working in a lease-finance role at City National Bank since January 2018. Her resume also includes two stops at Amur Capital, separated by some time at Axis Capital. She additionally counts UBS, Morgan Stanley and Lehman...



The Grapevine

Fri, 12 Jul 2019
Sreesha Vaman has resigned from the structured-product syndicate desk at Guggenheim, which quickly hired former Citigroup executive Christopher Dunne as his replacement. Vaman, a managing director, will leave the bank’s New York office on July 19 to become the head of capital markets at media-financing company 23 Capital. He had joined Guggenheim in 2012, following stops at Sari Closet, Harrah’s Entertainment, Dinosaur Securities,...



The Grapevine

Fri, 12 Jul 2019
Securitization veteran Brian Bernard died on July 3. Bernard most recently worked as head of capital markets at Hunt Financial Securities from 2017 to December 2018, and before that was at Resource America. Earlier, he served two stints as head of J.P. Morgan’s mortgage-bond team, separated by a stop at Carrington Capital. He also counted RBS as a former...



The Grapevine

Fri, 12 Jul 2019
Dylan Leahy joined Sound Point Capital’s structured-product investment team in June as a credit analyst. The New York-based Leahy had been employed in a buy-side CLO role at NYL Investors since February 2018. He also has spent time at Ares Management, American Capital and Deloitte.



The Grapevine

Fri, 12 Jul 2019
Collateralized loan obligation issuer Oak Hill Advisors has a new chief financial officer. Mark Zaeske arrived at the New York firm in June from HSBC. Zaeske also has worked at Bridgewater Associates, Discover Financial, J.P. Morgan, Citigroup, Atlantic Richfield and KPMG. Oak Hill has completed 37 CLOs totaling $23.4 billion since entering the market in 1996, according to Asset-Backed Alert’s ABS...



The Grapevine

Fri, 12 Jul 2019
Lakemore Partners of London installed Aris Ning this week as a vice president responsible for analyzing its collateralized loan obligation investments. Ning had been employed since 2015 at U.S. Bank. His former employers also include Kinson Capital and CTCB Bank.



The Grapevine

Fri, 12 Jul 2019
Sun West Mortgage has hired a staffer with securitization experience. Thomas Dang joined the home-loan originator’s New York office last week as a director. Dang most recently worked from 2017 to August 2018 as part of a team that was planning a securitization program at payday lender Money Mart Financial. He also has spent time at Brean Capital, Gleacher & Co., UBS, J.P. Morgan, Barclays, Salomon Brothers, Bank of America, Citigroup,...



The Grapevine

Fri, 12 Jul 2019
Credit Suisse is seeking an analyst in Raleigh whose coverage areas would include mortgage-backed securities. Credit Suisse is focusing on candidates with at least three years of experience. To apply, click on “careers” at creditsuisse.com and search for job number 134651.



The Grapevine

Fri, 12 Jul 2019
Jeff Drott has switched out of his role as a mortgage-trading specialist to take a sales post at home-loan subservicer LoanCare in Nashville. Drott started his new job on July 1. He had been at trading-focused consulting firm Tomahawk Capital since December, and before that was at MountainView Capital, Hermitage Funding, Beltway Capital and American Residential...



Worldwide Dealflow Regaining Momentum

Fri, 05 Jul 2019
Structured-product volume is rebounding.Worldwide issuance of new asset-backed bonds, collateralized loan obligations, residential mortgage securities and commercial mortgage paper totaled $422.7 billion during the January-June stretch, according to Asset-Backed Alert’s ABS Database. That amounts to a 6% decline from the year-earlier total of $448.2 billion.But the tally also represents a substantial improvement from the first quarter, when...



Zillow Home-Flip Strategy Drives MBS Plans

Fri, 05 Jul 2019
A new initiative at Zillow is likely to position the real estate data company as a mortgage-bond issuer.The offerings would stem from an “instant-buying” program in which Zillow in recent months has tapped its algorithms to buy and flip homes.Buyers of the resold homes, meanwhile, can finance their purchases through a mortgage operation called Zillow Home Loans that formed following the company’s November purchase of Mortgage...



CLO Issuers Pursuing Broader Syndication

Fri, 05 Jul 2019
Norinchukin Bank has paused its purchases of U.S. CLOs in recent months, prompting some underwriters to change their distribution tactics.As one of the sector’s biggest investors, Norinchukin has been known to take “anchor” positions in new deals encompassing half or more of certain transactions’ triple-A-rated senior notes. But with the Tokyo institution on the sidelines, the banks that previously might have counted it as...



Affirm Program Back on Track

Fri, 05 Jul 2019
A renewed push by personal lender Affirm to start a securitization program appears to be gaining traction.The San Francisco company, which has been looking at the asset-backed bond market since 2016, now is aiming for the first half of 2020 to complete its debut bond deal. Routine offerings would follow.Affirm originates “point-of-sale” loans through some 2,000 partner merchants. Among them is Walmart, which agreed in February to...



SFA Targets State Usury Enforcement

Fri, 05 Jul 2019
The Structured Finance Association plans to ask the Comptroller of the Currency to affirm that banks can sell or securitize loans without fear of violating state usury laws.The request, to be delivered at a meeting scheduled for mid-July between Comptroller staffers and an SFA contingent led by chief executive Michael Bright, comes in response to a lawsuit against Capital One. The suit, filed on June 12 in U.S. District Court in Brooklyn, claims...



Freddie Adopting Remic Format

Fri, 05 Jul 2019
Freddie Mac plans to adopt a new legal framework for its flagship risk-transfer deals — a move that should make the offerings more attractive to investors.Since launching its Structured Agency Credit Risk program in 2013, Freddie has issued the securities primarily in the form of general-obligation bonds. But starting with transactions in the fourth quarter, the agency will move to a real estate mortgage investment conduit, or Remic, format...



Caliber Rolling Over Non-QM Bonds

Fri, 05 Jul 2019
Caliber Home Loans has been retiring its outstanding mortgage bonds with greater frequency, with the intent of repackaging the underlying loans into its upcoming securitizations.In June, the Coppell, Texas, lender exercised cleanup calls on three deals it priced through its COLT Mortgage Loan Trust in 2016 and one from 2017 — paying off $300.4 million of bonds, according to a June 29 report from Bank of America. The transactions were backed...



Wamco Program Keeps Flowing

Fri, 05 Jul 2019
Western Asset Management is readying another mortgage securitization.The offering, totaling nearly $1 billion, would be backed by loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards. Its top class carries triple-A ratings from S&P and Kroll. Credit Suisse is running the books.The deal would the third this year to take place through Western Asset Management’s Arroyo Mortgage...



New Conference Highlights Non-QM

Fri, 05 Jul 2019
Information Management Network is starting a conference series focused on the rapidly growing market for non-qualified mortgages.The debut “Non-QM Forum” is scheduled for Nov. 14-15 in Los Angeles, at a venue that has yet to be determined.IMN, the host of major industry conferences including “ABS East” and “Global ABS,” aims to capitalize on the increasing numbers of companies that originate and/or securitize...



Citigroup Stakes Bookrunning Lead

Fri, 05 Jul 2019
Citigroup was the world’s most active bookrunner of structured-product transactions during the first half of 2019, putting the bank on track to recapture a full-year title that it lost to J.P. Morgan last year.Citi appeared on 155 asset-backed bond deals, collateralized loan obligations and residential and commercial mortgage securitizations during the January-June period to earn $47.8 billion of league-table credit. That amounted to an...



The Grapevine

Fri, 05 Jul 2019
The destination of former Citigroup executive Amanda Magliaro has come to light. Magliaro, who left her post as head of Citi’s structured-product syndicate desk last week, will join KKR following a short gardening leave. The talk is that her new job will focus on the expansion of an operation called KKR Capital that helps the New York private equity firm, its portfolio companies and others access capital-markets funding. In June, for...



The Grapevine

Fri, 05 Jul 2019
Trader Steven Harrison has left the New York headquarters of LibreMax Capital, where he served as a sector head for asset-backed bond investments in Europe. Harrison’s destination is unknown. He had joined the hedge fund operator in 2015 from Cairn Capital, and before that was at UBS.



The Grapevine

Fri, 05 Jul 2019
Waterfall Asset Management has hired a vice president. Niresh Shukla arrived in June as part of a team that structures mortgage-related deals the New York hedge fund manager issues. Shukla had been working in an origination and structuring role at Barclays since 2013, and before that was at Wells Fargo. As an issuer, Waterfall’s highest-profile deals so far were two reverse-mortgage transactions totaling $771.1 million in November 2018 and...



The Grapevine

Fri, 05 Jul 2019
Brian Yorke, who left Bardin Hill Investment in March, has resurfaced at Ostrum Asset Management as head of structured credit product and loan investments. Yorke had been at the debt-focused Bardin Hill, formerly known as Halcyon Capital, since 2006. He previously spent time at Seix Investment and Prudential. Ostrum changed its name from Natixis Asset Management in...



The Grapevine

Fri, 05 Jul 2019
Former Societe Generale executive Ted Kelleher joined the New York office of small-business lender Funding Circle in May with the task of overseeing distribution of the company’s loans and structured products in the U.S. Kelleher last was employed from 2015 to March 2018 at Societe Generale, most recently as head of sales for fixed-income and currency products in the U.S. Prior to that, he spent time at Gleacher & Co. and UBS. Funding...



The Grapevine

Fri, 05 Jul 2019
Theorem, a San Francisco firm that buys online personal loans, has hired an executive with securitization experience — a move that could point to the creation of an asset-backed bond program. Peter Loukas signed on in May as head of capital strategy, a role in which he is responsible for financing the operation’s investments. Loukas had been employed since 2017 in the capital-markets division of education lender Laurel Road, an...



The Grapevine

Fri, 05 Jul 2019
Former Hunt Cos. executive Wilson Pringle has resurfaced as chief operating officer at GreenAcreage Real Estate, a REIT that recently formed to hold the real estate assets of New York cannabis company Acreage Holdings. Pringle had joined Hunt in 2018 to oversee operations for the company’s mortgage-conduit business, but left this January. Earlier, he worked at Oak Circle Capital and HazelTree Fund...



The Grapevine

Fri, 05 Jul 2019
Former MUFG director Daniel Chen has a new job, this time outside the structured-finance industry. Chen started in May as chief financial officer at Blue Foundry Bank, a Rutherford, N.J., thrift that just changed its name from Boiling Springs Bank. Chen had been at MUFG since September with a focus on assembling structured-product transactions. He also has worked at Cross River Bank, MetLife and Morgan...



Staff Reductions Hit Wells' Research Desk

Fri, 28 Jun 2019
Wells Fargo has dismissed the leader of its of its structured-product research group.Managing director Marielle Jan de Beur, who had been heading the desk since yearend 2008, was let go on June 26. So was director Gary Zhu, who was on board since April 2015.Sources attributed the reductions to cost restraints tied to an order from the Federal Reserve that Wells limit its assets to yearend-2017 levels until it addresses a series of consumer...



Pretium Renters Eyed for Non-QM Financing

Fri, 28 Jun 2019
Capitalizing on its planned purchase of Deephaven Mortgage, Pretium Partners plans to give tenants in its rental homes the option to buy the properties.The undertaking would see Deephaven offer financing for the purchases in the form of loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards. The plan is to fund those receivables through securitization, possibly beginning in 2020.The...



Citi Seeks Reversal of Trading Brain Drain

Fri, 28 Jun 2019
Under pressure from issuers, Citigroup is acting urgently to fill a senior post on its U.S. asset-backed securities trading desk.The position has been vacant since April, when Citi laid off Christopher Dunne. The bank then assigned his accounts to colleague Andrew Preiser, who departed soon after for Guggenheim’s investment arm.That left Citi’s asset-backed bond trading work in the hands of a few less-experienced traders, including...



Investors Shed Card-Bond Exposures

Fri, 28 Jun 2019
Investors are rotating out of credit-card bonds.The selloff began when a few large insurers posted bid lists on May 13. Since then, a number of money managers, corporate treasury operations and public pension systems also have sought to unload positions.In all, $4.7 billion of credit-card bonds traded on the secondary market from May 13 to June 21, according to Empirasign. That compares to $2.6 billion from April 1 to May 10, a more typical level...



Marlette Builds Servicing Unit

Fri, 28 Jun 2019
Online personal lender Marlette Funding is setting up an in-house servicing operation.Beginning in the third quarter, the Wilmington, Del., company plans to take over key servicing functions it currently outsources to Systems & Servicing Technology of St. Joseph, Mo. SST will serve as a back-up servicer following the transition.In April, LoanPro Software, a Farmington, Utah, supplier of web-based loan-servicing tools, said it had been selected by...



SoFi Set for Non-QM Initiative

Fri, 28 Jun 2019
Social Finance is revamping its home-loan operation, in part by expanding its product line to include accounts that don’t meet the Consumer Financial Protection Bureau’s “qualified mortgage” standards.To that end, SoFi is searching for a capital-markets professional who would be tasked with expanding its mortgage-origination efforts by developing a non-qualified lending program. The recruit also would aim to refine the...



PMI-Linked Notes to Keep Flowing

Fri, 28 Jun 2019
Private mortgage insurers are poised to continue issuing risk-transfer securities at an elevated pace.Arch Capital, Essent Guaranty, MGIC and Radian so far this year have combined to complete six such transactions totaling $2.6 billion, according to Asset-Backed Alert’s ABS Database. That puts the sector well on pace to exceed its full-year 2018 tally of seven transactions for $3 billion.It also backs up a prediction by Credit Suisse that...



Issuers Poised for Holiday Hiatus

Fri, 28 Jun 2019
The asset- and mortgage-backed securities market is taking a break.The flow of new offerings is expected to slow considerably heading into the Fourth of July holiday and remain at depressed levels for at least a week afterward. “The week of July 8 looks pretty light too,” one banker said.The anticipated drop in new-deal volume follows a period of robust issuance, with 53 deals totaling $27.8 billion pricing so far in June. Investors...



ABS Pros Mull Ally Rate Cut

Fri, 28 Jun 2019
Ally Financial has lowered the interest rate it offers on savings accounts, a sign the online bank may have completed a process during which it increased its reliance on deposits at the expense of securitization.On June 25, Ally cut its savings-deposit rate 10 bp to 2.1%. The move is catching the attention of securitization professionals because the Detroit company has spent several years aggressively building its deposit base while relying less...



Caribbean Lender Circulating Deal

Fri, 28 Jun 2019
A company that writes personal loans in the Caribbean is preparing its second securitization.Caribbean Financial of Guaynabo, Puerto Rico, is expected to price the $222 million offering next week. Guggenheim is running the books.Caribbean Financial’s only other securitization was a $207.3 million transaction in November 2017, also with Guggenheim as underwriter. The company has written more than $3 billion of loans in 94 locations...



The Grapevine

Fri, 28 Jun 2019
Citigroup and J.P. Morgan continue to trade places in the league table for structured-product underwriters worldwide. This time, it’s Citi heading into midyear with a slight lead — having brought nearly $50 billion of new asset-backed bonds, collateralized loan obligations and residential and commercial mortgage securities to market since Jan. 1, according to preliminary figures from Asset-Backed Alert’s ABS Database. The bank...



The Grapevine

Fri, 28 Jun 2019
Meanwhile, Amanda Magliaro left her job as head of Citigroup’s structured-product syndicate desk this week. Magliaro had joined Citi’s New York office in 2002, straight out of graduate school.



The Grapevine

Fri, 28 Jun 2019
Directors John Meehan and Vu Nguyen parted ways with Societe Generale’s asset-backed bond banking group in New York in May. Meehan had joined SocGen from Assured Guaranty in 2006, and before that was at Bank One, Bank of America and S&P. Nguyen arrived in 2003 from Merrill Lynch.



The Grapevine

Fri, 28 Jun 2019
Och-Ziff Capital added three analysts to its structured-product investment desk this month. Jessy Monnin joined the hedge fund operator’s London office from S&P, following stops at Natixis and Powernext, according to sister publication Hedge Fund Alert. Andriy Voshchevskyy, also in London, previously spent time at Bank of America, Barclays and UBS. In New York, Daniel Spencer arrived after stops at Citigroup and Ernst &...



The Grapevine

Fri, 28 Jun 2019
Julie Schlueter has left her post as a managing director responsible for capital-markets and investor-relations duties at CNH Global, a job in which she was involved in coordinating the equipment lender’s asset-backed bond deals. Her destination: CDK Global, a maker of software for car dealers. She started at the Hoffman Estates, Ill., company this month. Schlueter had joined CNH in 2008 after stops at Duff & Phelps, CNA Insurance and...



The Grapevine

Fri, 28 Jun 2019
Ares Management hired a vice president for its alternative credit-product investment unit in New York in May. Elizabeth Levi previously researched collateralized loan obligation investments at AllianceBernstein, where she started in 2014.



The Grapevine

Fri, 28 Jun 2019
Managing director Brian O’Brien is no longer employed at Blackstone. As chief credit officer of an operation called Blackstone Residential Trust, O’Brien led credit-risk analysis for purchases of non-agency mortgages. He had just joined the firm’s Dallas office in November from Goldman Sachs. O’Brien’s former employers also include PMI Mortgage Insurance, PHH Mortgage and GE...



The Grapevine

Fri, 28 Jun 2019
Two senior executives resigned from online personal lender Affirm on June 21. Jeremy Solomon served as chief capital officer, a role in which he arranged funding sources other than securitization. As chief revenue officer, meanwhile, Rob Pfeifer was in charge of developing the San Francisco company’s origination channels. Solomon arrived in 2015 after working at Lending Club and Social Finance. Pfeifer signed on in 2013 after stops at Chegg...



The Grapevine

Fri, 28 Jun 2019
Bank of America is seeking a senior financial analyst in New York whose duties would include evaluating how the bank’s securitization-related exposures affect its capital reserves under the Bank for International Settlements’ Basel 3 accord. BofA is focusing on candidates with at least five years of experience. To apply, click on “careers” at bankofamerica.com and search for job number...



The Grapevine

Fri, 28 Jun 2019
Blake Lepire left Cross River Bank last week. Lepire had worked in the bank’s Fort Lee, N.J. outpost since 2017, helping to oversee its personal-loan portfolio. Before that, he was at BDO USA. Cross River serves as an originator of record for online lenders, and offers them funding.



Wells Fargo Rescues Auto Deal From Default

Fri, 21 Jun 2019
A troubled securitization of subprime auto loans from Honor Finance has been retired, but only because underwriter Wells Fargo funded the maneuver.Servicer Westlake Services conducted the cleanup call on June 17, buying back all of the securities still outstanding from a $100 million deal Honor completed in December 2016. But with Honor having shut down last year, the process was possible only because Wells stepped in to buy the...



Nearwater Envisoning Treasury-Backed CP

Fri, 21 Jun 2019
Nearwater Capital is assembling a novel commercial-paper conduit.The New York firm, best known for financing the risk-retention activities of structured-product issuers, is calling the vehicle Columbia Funding. It is aiming for July to start selling securities with P-1/A-1 ratings from Moody’s and S&P, with the goal of having several billion dollars of the notes in the hands of investors.Barclays, J.P. Morgan and RBC are serving as the...



PennyMac Favoring Term CRT-Backed Bonds

Fri, 21 Jun 2019
PennyMac is changing the way it finances its investments in agency risk-transfer securities.The Westlake Village, Calif., REIT historically funded those exposures mainly through short-term repurchase contracts. But it eventually plans to phase out that tactic and rely entirely on a bond-issuing vehicle called PMT Credit Risk Transfer Trust that gives it a longer-term source of capital.The so-called PMTCR program has produced two offerings so far,...



Citi Adds to MBS-Banking Team

Fri, 21 Jun 2019
Citigroup is beefing up its U.S. mortgage-bond underwriting group while putting the finishing touches on a jumbo-loan conduit that has been in the works for some time.Michael Marra, most recently a member of the home-loan financing group at Credit Suisse, will join Citi in August as a director. He’ll fill a client-facing role in New York, working alongside vice president Andrew Knote to build and extend relationships with mortgage-bond...



Blackstone Keeping Exeter, For Now

Fri, 21 Jun 2019
Blackstone has suspended efforts to exit its position in subprime-auto lender Exeter Finance via an initial public offering.Blackstone, which bought a 90% stake in Exeter in 2011, registered with the SEC in January to sell $100 million of shares via an IPO, even as it was in talks with Chrysler about a potential sale of the operation. Now comes word that Blackstone dropped the IPO plan.Sources said Blackstone was near an agreement to sell Exeter...



Trade Group Names New President

Fri, 21 Jun 2019
Kristi Leo has been appointed president of the newly renamed Structured Finance Association.Leo, a consultant and board member for the trade group — previously known as the Structured Finance Industry Group — assumes a title formerly held by chief executive Michael Bright.“Kristi is going to be a big part of helping SFA to achieve the lofty objectives we have,” said Bright, who arrived in January from a position as interim...



Relief Sought for Education-Refi Deals

Fri, 21 Jun 2019
A trade group that represents online lenders is lobbying for securitizations of student-loan refinancings to be exempt from the Dodd-Frank Act’s risk-retention rule.The Marketplace Lending Association has initiated meetings with officials at the Comptroller of the Currency, FDIC, Federal Reserve and SEC, as well as members of Congress. The plan is to argue that the deals’ underlying assets are of such high quality that the issuers...



Law-Firm Lender Eyes Securitization

Fri, 21 Jun 2019
Litigation-finance shop Alliance Legal Solutions is considering the asset-backed bond market as a funding source.The Charlotte firm unveiled an online-lending program this week that’s expected to substantially increase its origination volume. The program, dubbed Fundafi, offers loans to help law firms cover up-front litigation costs including research and expert witnesses.Alliance also plans to use Fundafi to originate lines of credit...



Ford Claims Leeway in Libor Switch

Fri, 21 Jun 2019
Ford’s completion of a securitization with provisions to replace Libor as a benchmark could inspire other issuers to follow suit — but in a less aggressive manner.In pricing a $1.1 billion auto-loan securitization via its Ford Credit Auto Owner Trust on June 18, Ford became the first issuer of consumer-asset bonds to spell out the process under which it might switch the deal’s benchmarks. The move would take place once Libor...



NC Bill Paves Way for Duke Deal

Fri, 21 Jun 2019
A proposal to allow energy companies in North Carolina to issue asset-backed bonds is progressing through the state legislature — setting the stage for an offering from Duke Energy.Senate Bill 559 was approved on June 1. The companion House Bill 624, meanwhile, is entering review by the Committee on Energy and Public Utilities.The measure would create a framework for power companies in North Carolina to fund storm-damage repairs by selling...



Non-QM Financing Costs Drop

Fri, 21 Jun 2019
It is getting cheaper to accumulate non-qualified mortgages for securitization.That’s because warehouse lenders have been reducing the amounts of collateral issuers must post against their credit lines, Today, the standard requirement is 5-10%. At yearend 2018, it was 20-25%.Sources said the reduction is partly the result of increasing competition among warehouse lenders. Those companies and others also appears to be getting more...



Buysiders Push Back on Heloc Deal

Fri, 21 Jun 2019
Investors are showing some nervousness about buying into the first securitization of home-equity lines since the market collapse.Issuer FirstKey Mortgage and underwriter J.P. Morgan started marketing the $277.7 million transaction this week with an eye toward a June 19 pricing date. Initially, J.P. Morgan suggested a spread of 90 bp over one-month Libor for the offering’s top class, encompassing $179.6 million of 2.2-year notes with...



The Grapevine

Fri, 21 Jun 2019
David Cannon no longer is employed as co-head of asset-backed bond trading at MUFG. Cannon, who shared oversight of the desk with Chris Gray, exited the bank’s New York office this week. He had arrived in 2015, and stepped into his most recent post with the May 2018 exit of John Lennon. Previously, Cannon worked at RBS and UBS. He also counts PaineWebber and Chase Securities as former...



The Grapevine

Fri, 21 Jun 2019
Credit Suisse installed Alexander Chan this month as a managing director on its collateralized loan obligation-issuing team in New York. Chan most recently was employed since 2010 at Shenkman Capital, which also issues CLOs. He also has worked at Nomura, Barclays, Credit Suisse, Donaldson, Lufkin & Jenrette and Sullivan & Cromwell. Credit Suisse has completed six CLOs totaling $3.6 billion this...



The Grapevine

Fri, 21 Jun 2019
Ally Financial hired a three-person lender-finance team away from Capital One this month. The Chicago-based Jason Cardella had been a member of CapOne’s financial-institutions group since 2014, most recently as a director. Prior to that, he spent time at BMO Capital and Bank of America. Also joining Ally’s Chicago office was Riley Quinn, who worked alongside Cardella as a director at CapOne since 2014 and before that was at Barclays...



The Grapevine

Fri, 21 Jun 2019
Mutual of Omaha has added a senior analyst to its structured-product investment team. The recruit, Henry Chen, had been employed at Volkswagen since 2017 as part of a team that issues bonds backed by auto loans, auto leases and dealer-floorplan accounts. Before that, he analyzed auto-loan deals at Moody’s.



The Grapevine

Fri, 21 Jun 2019
Suk Shah will leave his post as chief financial officer at subprime personal lender Avant today. Shah took his position in 2014, moving over from the commercial-banking division at HSBC. He also has worked at General Electric. Shah’s duties at Avant included tasks related to the Chicago company’s securitization program, which has produced 10 deals totaling $2.2 billion since...



The Grapevine

Fri, 21 Jun 2019
Tim Davies parted ways today with Demica Finance, where he served as chief investment officer of a business called More Finance that helps clients package their trade receivables into securitizations. Davies had arrived at the London firm in 2015 from Lloyds Bank. He also has worked at Global Structured Finance Solutions, RBS and RBC.



The Grapevine

Fri, 21 Jun 2019
Bramshill Investments is seeking an associate. The recruit would work in the firm’s Newport BEach, Calif., office, acting as a liaison between its structured-product portfolio managers and its administrators, custodians and other counterparties. Bramshill has $2.5 billion under management, a portion of which is in a vehicle called Bramshill Structured Products Fund that it launched in 2018. Candidates canemail operations chief Kevin Jester...



The Grapevine

Fri, 21 Jun 2019
Blockchain-technology company Cadence, which is attempting to arrange a mix of securitizations, has added a staffer while elevating an existing employee. Charles Halsey joined the New York operation in May as head of business development. He most recently worked at EMS Partners from 2016 to November 2018, and before that spent time at Greylock Capital, Galle Global Macro and Hunt Financial Ventures. Meanwhile, Cadence named Prath Reddy as head of...



Northern Trust Emerges in CLO-Buying Role

Fri, 14 Jun 2019
Northern Trust is amassing a portfolio of collateralized loan obligation investments.Sources said the Chicago institution has purchased some $1 billion of the securities in recent months, with plans to add another $1 billion by yearend. The holdings consist mainly of triple-A-rated paper, both from newly issued deals and secondary-market offerings.The bank, which didn’t previously invest in CLOs, apparently is taking a buy-and-hold approach...



SFIG Pushing Back on Rapid Agency Release

Fri, 14 Jun 2019
The Structured Finance Industry Group is preparing to lobby against a quick recapitalization of Fannie Mae and Freddie Mac.The position would pit SFIG against Federal Housing Finance Agency head Mark Calabria, who told Fannie and Freddie shareholders in conversations during the week of June 3 that he was aiming to remove the agencies from conservatorship via a $120 billion equity offering in late 2019 or early 2020 — without approval from...



CLO Bid Lists Inundate Secondary Market

Fri, 14 Jun 2019
Collateralized loan obligation trading surged in early June.Investors offered $2.6 billion of CLO paper on the secondary market during the first eight business days of the month, spreading the supply across 79 bid lists encompassing 490 positions, according to Empirasign. In terms of the dollar volume of bonds listed, that was more than double the levels seen over the typical eight-day stretch in May. It also marked a jump of about 150% from the...



Florida Picking Up the PACE

Fri, 14 Jun 2019
Amid a decline in securitizations of residential Property Assessed Clean energy loans, industry professionals believe a lending surge in Florida could rekindle deal volume.California was the first state to authorize PACE loans, and long was the biggest source of securitization collateral in the asset class. But an April 1, 2018, change in consumer-protection laws has slowed originations in the state, contributing to a plunge in asset-backed bond...



RMBS 3.0 Task Force Out, QM In

Fri, 14 Jun 2019
The Structured Finance Industry Group is eliminating one mortgage-focused task force, while starting another.The trade group already is unwinding outreach efforts related to its “RMBS 3.0” project, which started in 2014 with the goal of developing standards for private-label mortgage securitizations. At the same time, it is assembling a group that would lobby against the extension of a measure that enables Fannie Mae and Freddie Mac...



Sprout Positioned for Debut MBS Deal

Fri, 14 Jun 2019
Sprout Mortgage has secured a large warehouse line from multiple banks, confirming expectations that its debut offering of home-loan bonds is close.Sources said Sprout negotiated a facility of nearly $1 billion with banks including Morgan Stanley and Nomura. The new funding comes as the Irving, Texas, company’s year-to-date loan-origination volume ballooned to $1 billion as of May 31. It focuses on loans that don’t meet the Consumer...



Harley Offering Prompts Questions

Fri, 14 Jun 2019
As Harley-Davidson begins marketing its first securitization since June 2016, investors are seeking reassurances that the motorcycle maker is back in the market to stay.Harley is on track to price a $552.6 million transaction next week, with Barclays, Citigroup and Wells Fargo running the books. In preparation, the Milwaukee company’s treasury division dispatched a team of executives to address any concerns investors may have about its...



Navient Faces Weakening Demand

Fri, 14 Jun 2019
Navient could be facing rough market conditions with its next offering of bonds backed by private student loans.The Wilmington, Del., lender is expected to start marketing the $560 million transaction in the next week or so, with Barclays, Credit Suisse and J.P. Morgan running the books.But funding costs for such deals have risen since Navient priced a $550 million deal on March 12 via underwriters Barclays, J.P. Morgan and RBC.Consider the June...



Avid Tees Up Deep-Subprime Deal

Fri, 14 Jun 2019
Avid Acceptance is readying its next securitization of “deep-subprime” auto loans.The $180 million offering is expected to hit the market in October. J.P. Morgan and KeyBank will run the books on the issue, which will carry ratings from S&P and Kroll.The deal would be the second asset-backed bond offering from the Midvale, Utah, lender. Its debut deal, with a face value of $114 million, priced in January 2018 with Key as...



Colorado Gets Say in Utility Deals

Fri, 14 Jun 2019
A Colorado law that allows energy companies to fund the retirement of aging fossil-fuel plants by selling asset-backed bonds comes with some strings attached, including a provision that gives the Colorado Public Utilities Commission an unusually active role in the offerings.At issue is the May 3 passage of the Colorado Energy Impact Assistance Act, a broad set of rules aimed at plans by companies including Xcel Energy to replace existing plants...



Auto Loans Staying Strong

Fri, 14 Jun 2019
Delinquencies among securitized pools of prime-quality auto loans remain near their lowest levels ever.According to an index maintained by Fitch, the volume of past-due accounts in the category rose 1 bp during the month ended May 15, to 0.25%. The previous month’s 0.24% reading, in turn, was the lowest that the agency recorded since it began tracking the sector in 2001. Meanwhile, losses among prime loans fell 20 bp to an annualized 0.34%...



The Grapevine

Fri, 14 Jun 2019
Longtime industry executive Michael Morrissey joined Annaly Capital in May as a director tasked with helping the New York investment firm manage its credit exposures — a job that includes determining values for asset- and mortgage-backed securities and hedging those positions. Morrissey had been in a mortgage-focused role at Bloomberg since 2010, and before that spent time at Barclay Advisors, Nomura, Pentalpha Capital, Merrill Lynch,...



The Grapevine

Fri, 14 Jun 2019
Director Andrew Stratos parted ways with BNP Paribas this week. Stratos had been at BNP since 2006, most recently as head of a transportation-finance group whose functions include underwriting securitizations of aircraft leases. He also has worked at Societe Generale and Nexant.



The Grapevine

Fri, 14 Jun 2019
Mortgage-bond trader Bentley Lok has left Hilltop Securities. His destination: Janney Montgomery Scott, where he arrived on June 3 in New York as a managing director. Lok’s previous employers include National Alliance Capital, Angel Oak Capital, Washington Mutual and UBS.



The Grapevine

Fri, 14 Jun 2019
Broker-dealer Brean Capital hired Pierce Derkac in May in a collateralized loan obligation trading role. The New York-based Derkac had been trading CLOs, asset-backed securities and mortgage bonds at Academy Securities since 2017, and before that was at CapRok Capital. His arrival at Brean allows Richard Barry to focus on asset-backed bonds, rather than covering both that area and...



The Grapevine

Fri, 14 Jun 2019
Trader Chen Chen left Och-Ziff Capital’s collateralized loan obligation issuing team in New York last week to join Hayfin Capital. Chen had been at Och-Ziff since 2013, and before that worked at Marathon Asset Management. Hayfin is both an issuer of CLOs and an investor. The London firm also bought issuer Kingsland Capital last year.



The Grapevine

Fri, 14 Jun 2019
More than 4,100 industry participants showed up for this year’s “Global ABS” conference, at last returning the event’s attendance to a level last seen before the 2007-2008 market crash. In 2018, about 3,800 people attended. The conference, hosted by the Association for Financial Markets in Europe and Information Management Network, took place June 11-13 at the Barcelona International Convention...



The Grapevine

Fri, 14 Jun 2019
Startup investment shop AGL Credit has added a member to a team tasked with managing the receivables for a collateralized loan obligation program it is planning. Micaela Collins arrived at the New York firm last week from the leveraged-finance area of Bank of America, where she worked since 2014. Collins also has spent time at PricewaterhouseCoopers. AGL, led by Peter Gleysteen, is backed by Abu Dhabi Investment Authority and Thomas H. Lee, who...



The Grapevine

Fri, 14 Jun 2019
Flagstar Bank recently enlisted Andy Casadei to trade mortgage bonds and whole loans as a vice president stationed in Dallas. Casadei had been working as a consultant since January 2018, following stops in the capital-markets areas at Caliber Home Loans, Stonewater Mortgage and First Magnus Financial. Flagstar has completed 12 home-loan securitizations totaling $5.8 billion since...



The Grapevine

Fri, 14 Jun 2019
Whole-loan trader Drew Hardt left FirstKey Mortgage this week to join Goldman Sachs. Hardt had been working at in FirstKey’s New York office since May 2018, with a focus on buying and selling nonperforming and reperforming mortgages for the company’s securitization program. Before that, he was at Roosevelt Management.



The Grapevine

Fri, 14 Jun 2019
New York investment shop MacKay Shields has added a trader to its staff. Zachary Aronson arrived at the New York Life unit in in April from Ally Bank, where he most recently managed a portfolio of asset-backed bonds and mortgage securities. Aronson had been on board there since 2009.



The Grapevine

Fri, 14 Jun 2019
Citizens Bank has hired a manager to determine the values of mortgage-servicing rights for clients, potentially including those that securitize the contracts. Kathryn Ferriman joins the bank’s Richmond, Va., office from a vice president post at Phoenix Capital, where she worked since 2007.



Risk Aversion Stimulates Trading Activity

Fri, 07 Jun 2019
Political concerns are fueling a rally in the market for senior asset-backed bonds.Lured by the securities’ reputation for performing well and holding value in volatile times, asset managers and insurers including BNY Mellon Investment, Great American Insurance, PPM America and Vanguard were heavier-than-usual buyers on the secondary market this week. June 3 saw $1.5 billion of trades, far exceeding the typical daily volume.On June 4 and 5,...



Goldman Amassing Developer-Loan Portfolio

Fri, 07 Jun 2019
Goldman Sachs is about to start buying loans that developers use to acquire, renovate or build single-family homes.Sources said the bank began notifying originators of its plans this week but has yet to lay out exact specifications for its purchases, which it eventually would fund through securitization. “All we’re waiting on now is the rate sheets,” one source said.Topping the menu of loans Goldman is seeking are credits that...



FHFA Firming Up Outlook for Agency IPOs

Fri, 07 Jun 2019
The Federal Housing Finance Agency is advancing with plans to recapitalize Fannie Mae and Freddie Mac via an initial public offering.Fannie and Freddie shareholders who spoke to FHFA head Mark Calabria this week said they are convinced the Trump Administration intends to conduct a $120 billion equity offering in late 2019 or early 2020. The move would bring the mortgage agencies out of conservatorship.Meanwhile, the U.S. Treasury Department has...



D'Urso Out as Podium Plans Deal

Fri, 07 Jun 2019
Joe D’Urso has stepped down as president of Podium Mortgage Capital.The exit of D’Urso comes as Podium, a Blackstone portfolio company in Salt Lake City, has been moving forward with a planned securitization program. An initial deal is set to hit the market this year.The bonds would be backed by loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards. D’Urso was...



Verizon Yields to Investor Demands

Fri, 07 Jun 2019
Investors were able to in extract higher yields from a securitization of mobile-device payment plans that Verizon issued on June 4.Concerned that President Trump’s trade war with China could increase prices for already-expensive smartphones, particularly Apple’s iPhones, investors said last week they would press Verizon about the potential impact of higher tariffs on sales of the devices — and thus the availability of collateral...



MFA Program About to Launch

Fri, 07 Jun 2019
MFA Financial is on track to float its first securitization of home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards.The offering, which has been in the works since March 2018, is expected to hit the market in the coming weeks — matching a first-half pricing timetable that MFA earlier signaled to investors. It has an estimated size of $400 million. Credit Suisse is a...



New Tax-Lien Rules Hit Mark

Fri, 07 Jun 2019
Rules aimed at preventing collusion in property-tax-lien sales in Florida appear to be working, easing concerns among investors in securitizations of those receivables.After Orange County authorities sanctioned tax-lien buyer Finch Investment for improper bidding practices, tax collectors in several counties introduced a new procedure for this year’s auctions. Participants were invited to scrutinize the names of bidders during the auction...



Losses Jump as Tax Season Ends

Fri, 07 Jun 2019
Losses rose sharply in May among securitized pools of personal loans to the least creditworthy borrowers.According to an index maintained by Kroll, losses among so-called Tier 3 loans jumped 252 bp for the month to an annualized 18.25%. The cause: Borrowers found it harder to repay their debts after spending their income-tax refunds. However, delinquencies were unchanged at 3.72%. Tier 3 loans are originated by Avant and LendingClub to borrowers...



Promontory Seeks Faster Closings

Fri, 07 Jun 2019
Mortgage-review shop Promontory Fulfillment is working to adopt technology that could make more home loans available for securitization.The effort centers around streamlining the approval and loan-closing processes by making it easier to upload and update clients’ lending guidelines and borrowers’ credit information. Promontory, a unit of New York-based Promontory MortgagePath, is talking to several vendors that are developing such...



The Grapevine

Fri, 07 Jun 2019
Mortgage-bond salesman Thomas Harmon joined Mizuho’s New York office in May as an executive director. Harmon most recently was employed at Amherst Securities since 2012. He also has spent time at Cantor Fitzgerald, Merrill Lynch, Fannie Mae and First Virginia.



The Grapevine

Fri, 07 Jun 2019
Capital-markets head Noah Cooper left online education lender Laurel Road this month to join Cross River Bank, taking his team with him. As capital-markets chief at Cross River, Cooper fills a post created by Gene Ostrovsky’s February move to Meritize. Cooper had joined Laurel Road in 2016 from Merrill Lynch. Moving with him are vice presidents Rahul Jha and Joshua Karlgaard, and senior associate Ryan Callahan. New York-based Laurel Road...



The Grapevine

Fri, 07 Jun 2019
The Structured Finance Industry Group plans to release a complete version of its “RMBS 3.0” guidelines at midyear. The measure, currently in its final review process, would include recommendations on matters including the roles of deal agents and drafting of representations and warranties for private-label mortgage securitizations. SFIG sees the effort as promoting issuance growth. It had released its most recent draft in December...



The Grapevine

Fri, 07 Jun 2019
J.P. Morgan is seeking an analyst to aid in the structuring of a variety of asset-backed securities, including those backed by auto loans, credit-card accounts, student loans and whole-business cashflows. The recruit would hold a vice president-level title, with a focus on deal modeling and analytics. J.P. Morgan is focusing on candidates with 5-7 years of experience. To apply, click on “careers” at jpmorganchase.com and search for...



The Grapevine

Fri, 07 Jun 2019
Collateralized loan obligation trader Jim Soltesz resigned from Mariner Investment’s Dallas office this week. Soltesz had been working at Mariner since 2016, following stops at Business Development Corp. of America and Cohen & Co.



The Grapevine

Fri, 07 Jun 2019
A Citigroup business analyst whose coverage areas included securitized products left the bank in May to take a similar position in the New York office of the London Stock Exchange. Peter Brackman had been at Citi since 2016. His previous employers include State Street, J.P. Morgan, Markit Group, Morgan Stanley and UBS.



The Grapevine

Fri, 07 Jun 2019
Apex Credit has hired an analyst for its collateralized loan obligation issuing program. James Steiger arrived in May from the leveraged-finance unit at Zais Group, where he worked since 2014. New York-based Apex has issued four CLOs totaling $1.7 billion since entering the market in 2017.



The Grapevine

Fri, 07 Jun 2019
Marlette Funding has an opening for a capital-markets analyst whose duties would include helping to maintain the personal lender’s securitization and whole-loan sales programs. The recruit would work in Wilmington, Del. Marlette, which lends under the Best Egg brand, has completed 10 securitizations totaling $3.2 billion since 2016.



The Grapevine

Fri, 07 Jun 2019
Ares Management has hired a managing director whose duties include supplying financing to lenders, including personal-loan originators and equipment-leasing companies that could use the capital as a springboard to securitization. The New York-based recruit, Scott Rosen, arrived this month from investment firm Solar Capital. He had worked there since 2007, following stops at Wellspring Capital and...



The Grapevine

Fri, 07 Jun 2019
Apollo Global has added an analyst to its structured-product investment team in New York. Steven Jacobi, an associate, had been working at Houlihan Lokey since 2017. Before that, he was at Bloomberg.



European Pros Set to Deal at "Global ABS'

Fri, 31 May 2019
With the European market finally showing signs of life, the “Global ABS” conference in Barcelona is set to draw its biggest crowd in years.More than 4,000 industry professionals are expected to attend the June 11-13 event, hosted by the Association for Financial Markets in Europe and Information Management Network at the Barcelona International Convention Center. The headcount for last year’s event was about 3,800.“Our...



Tariff Exposures Worry Verizon Investors

Fri, 31 May 2019
President Trump’s trade war could raise Verizon’s securitization costs.At issue are signals that after raising tariffs on a range of China imports this month to 25% from 10%, Trump intends to apply similar duties to consumer electronic goods manufactured in the country — a move that would create a corresponding increase in the prices of those products.Concerned that Verizon’s customers would respond by purchasing fewer new...



Redwood Pushes for Quick End to QM Patch

Fri, 31 May 2019
Redwood Trust is urging regulators not to extend a measure that enables Fannie Mae and Freddie Mac to buy and securitize mortgages that fall outside the Consumer Financial Protection Bureau’s “qualified-mortgage” standards.The so-called QM patch is set to expire in January 2021, but the CFPB has the power to delay that step. At that point, the Federal Housing Finance Agency, as conservator for Fannie and Freddie, would have the...



Barclays' MBS Team Taking Shape

Fri, 31 May 2019
Barclays already has begun assembling a core team of traders and bankers as part of a plan to resume securitizing home loans in the U.S.Scott Eichel, who joined the U.K. bank’s New York office in August with a mandate to re-establish its presence in the U.S. mortgage market, has hired Greg Schmidt to co-head a unit that will purchase whole loans while supplying warehouse lines to correspondent lenders. The focus will be on non-qualified...



No Clear Leader in Morningstar Deal

Fri, 31 May 2019
Morningstar’s agreement to buy DBRS has set industry participants abuzz about who will oversee the companies’ combined bond-rating business.A seeming candidate would be Morningstar Credit Ratings president Brian Grow. But the May 29 deal left open who would take the role, with Morningstar saying only that it would name a leader by the time the purchase closes — likely during the third quarter.DBRS is led by chief executive...



Blockchain Deals Get ID Codes

Fri, 31 May 2019
Bloomberg has agreed to assign identification codes to financial instruments that blockchain-technology company Cadence is helping to bring to market.The Financial Instrument Global Identifiers would apply both to digital tokens that the New York operation is helping lenders create and to eventual securitizations of those assets. Until now, Bloomberg hadn’t granted the identifiers to any digital assets.Cadence is working with lenders in...



Rehab-Mortgage Bonds Gain Value

Fri, 31 May 2019
A rally in the market for bonds backed by reperforming mortgages is gaining steam.Driving demand are expectations that another round of upgrades is coming from Moody’s, which on May 7 raised it ratings on bonds totaling $986 million. Now, word is circulating that Moody’s is reviewing another $800 million of the securities for similar action.The upgrades reflect strong collateral performance, including muted delinquencies and...



CLO Pros Size Up "Mascot' Deals

Fri, 31 May 2019
Industry professionals are chattering about collateralized loan obligations from Five Arrows Managers and Trimaran Advisors that borrow a strategy from mortgage securitizations.A $609.9 million deal Trimaran priced on May 10 and a $405.1 million offering Fire Arrows completed on April 18 include tranches that give investors the option of splitting the securities into interest-only notes and pieces that pay principal with reduced coupons. Credit...



BofA Report Alarms Buysiders

Fri, 31 May 2019
A Bank of America report has set mortgage-bond investors on edge about the end of Libor.The May 13 analysis found that among outstanding home-loan securities with Libor benchmarks, 74% were issued prior to the 2007 market crash. Perhaps of greater concern is that the sizes of those exposures — and thus the potential for disruptions to arise in the process of switching to new benchmarks — are larger than many industry participants had...



Issuers Unveil Wave of Deals

Fri, 31 May 2019
A busy week is shaping up in the U.S. asset- and mortgage-backed bond market.Following a lull that accompanied the Memorial Day holiday, issuers began preliminary marketing efforts for eight deals totaling $5 billion late this week. Another $3 billion of supply is expected to hit the market on Monday.Those already talking to investors include:Ally Financial, which is shopping a $1.1 billion securitization of prime-quality auto loans with Deutsche...



Guidelines Coming for Libor Switch

Fri, 31 May 2019
The Alternative Reference Rates Committee is about to recommend contractual language that would spell out how securitizations pegged to Libor could switch to new benchmarks.The move would follow the committee’s April 25 release of a similar recommendation for syndicated corporate loans and unsecured floating-rate notes, creating the potential for collateralized loan obligations to adjust at the same time as their underlying assets. The...



World's Leading Structured-Product Bankers, Syndicators and Traders

Fri, 31 May 2019
The listing below shows contact information for the top-ranking securitization professionals at the investment banks that consistently distribute the most asset- and mortgage-backed bonds worldwide.The institutions included typically have achieved rankings atop league tables published by Asset-Backed Alert.Head bankers oversee deal origination, structuring and other areas unrelated to trading and syndicate operations. Those in charge of syndicate...



The Grapevine

Fri, 31 May 2019
Managing director Patrick Cunningham left Brean Capital’s structured-product sales desk in mid-May to work at Performance Trust in Chicago. Cunningham had joined Brean in November via the brokerage firm’s merger with Hunt Financial Securities. He had started there in 2017 after stops at Jefferies, Oppenheimer & Co., Lehman Brothers, Salomon Smith Barney and...



The Grapevine

Fri, 31 May 2019
Former Loomis Sayles mortgage-bond trader Felix Moy resurfaced this week at First Pacific Advisors of Los Angeles. His assignment: to analyze and trade structured products and corporate loans. Moy worked in Loomis Sayles’ Boston office from 2010 to this March. Before that, he spent time at Mesirow Financial, Guggenheim and Bear Stearns.



The Grapevine

Fri, 31 May 2019
Matthew Kinney joined Oak Hill Advisors’ collateralized loan obligation-issuing team in April as a vice president. The New York-based Kinney had been covering structured products as a credit analyst at Carlyle Group, where he worked since 2017. He also has worked at Man Group, Silvermine Capital and PNC. Oak Hill has completed 37 CLOs totaling $23.5 billion since entering the market in 1996, according to Asset-Backed Alert’s ABS...



The Grapevine

Fri, 31 May 2019
Carlyle Group has added a structured-product analyst to its Miami office. James Luddy specializes in investing in bonds backed by aircraft-related assets. Luddy previously handled deal-valuation and modeling duties at Deloitte, where he worked since 2016. Before that, he was at New Markets Venture Partners.



The Grapevine

Fri, 31 May 2019
Guggenheim has added an analyst to its Los Angeles investment team. Rafsun Faiz started this week as a senior associate covering deals backed by both conventional and unconventional cashflows. Faiz had been employed since 2017 at LendingHome, where his tasks included analyzing potential collateral for home-loan securitizations. He also has worked at...



The Grapevine

Fri, 31 May 2019
Canyon Capital added an analyst to its collateralized loan obligation team in April. Kevin Rajput joined the firm’s Los Angeles headquarters from a lending role at THL Credit, where he worked since August 2018. He also has spent time at Bank of America. In addition to investing in CLOs, Canyon has issued 12 such deals totaling $4.6 billion since...



The Grapevine

Fri, 31 May 2019
Wilson Tran has joined Semper Capital’s New York headquarters as an analyst covering structured-product investments. Tran had been analyzing asset-backed securities, mortgage bonds and collateralized loan obligations at Ernst & Young, where he worked since 2016.



The Grapevine

Fri, 31 May 2019
Wells Fargo has an opening for a director on its mortgage-finance team. The recruit would handle a mix of client-relationship and mortgage-bond origination duties in New York or Charlotte, reporting to group head Evan Siegert. Wells is focusing on candidates with at least seven years of experience. To apply, click on “careers” at wellsfargo.com and search for job number...



The Grapevine

Fri, 31 May 2019
TD Bank is seeking a senior vice president or director with experience structuring asset-backed securities, with a focus on deals backed by auto loans, credit-card accounts and equipment loans. The recruit would join the bank’s New York office in November. Candidates can email resumes to origination specialist Stephanie Sit at stephanie.sit@tdsecurities.com.



The Grapevine

Fri, 31 May 2019
Morgan Lewis has two openings for senior associates in its structured-finance practice. The recruits would advise on a variety of matters tied to asset- and mortgage-backed bonds in the law firm’s New York, Washington or Chicago offices. To apply, click on “careers” at morganlewis.com and search for job number R335.



Rate Decrease Spurs Jumbo-Loan Growth

Fri, 24 May 2019
The supply of new jumbo-mortgage bonds is on the upswing.With falling mortgage rates bumping up origination volume, industry participants report that already-active issuers including J.P. Morgan, Redwood Trust and Wells Fargo plan to increase their deal volumes in the months ahead. Others including Credit Suisse, Flagstar Bank and TIAA that have been absent from the market in 2019 are interested in jumping in as well.The activity could reverse...



Bigger Triple-C Exposures In Play for CLOs

Fri, 24 May 2019
Collateralized loan obligation professionals are considering the revival of deals that give issuers broad leeway to invest in the debt of the weakest companies.While most securitizations of broadly syndicated corporate loans limit holdings of triple-C-rated collateral to 7.5%, last year saw six deals totaling $2.5 billion that allowed 50% concentrations. But those offerings halted as conditions in the CLO and leveraged-loan markets deteriorated...



UBS Testing the Waters for MBS Comeback

Fri, 24 May 2019
In a stark reversal of its post-credit-crisis aversion to securitization, UBS is attempting to reassemble a team that would underwrite and issue private-label mortgage bonds.However, a lack of available senior-level personnel appears to be slowing the effort.UBS’ potential reemergence in the market comes as something of a surprise, considering that the bank swore off most securitization-related activities in late 2011. But the bank’s...



PG&E Considers $10 Billion Deal

Fri, 24 May 2019
It’s looking increasingly likely that Pacific Gas & Electric will issue a massive utility-fee securitization to help fund its emergence from Chapter 11 bankruptcy.The offering, with a potential size of $10 billion, initially came up as a possibility as the San Francisco company entered reorganization proceedings in January. Now it appears the transaction could hit the market by yearend.Sources said PG&E is working with Goldman Sachs on the...



BofA Avoiding Non-QM Sector

Fri, 24 May 2019
Bank of America is steering clear of the fast-growing market for non-qualified home loans.The bank is letting lenders know that it won’t be offering warehouse funding for the accounts, which fall short of the Consumer Financial Protection Bureau’s “qualified-mortgage” standards. It’s the first big bank to take such a position.Why the hesitation? Sources said BofA is still smarting from multi-billion-dollar losses and...



Angelo Gordon Program Takes Shape

Fri, 24 May 2019
Angelo, Gordon & Co. is about to float a long-planned securitization of home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards.The $300 million transaction is expected to hit the market in the coming weeks. Angelo Gordon has commissioned ratings from S&P and Morningstar. Angelo Gordon began planning the transaction in 2017, with an eye toward becoming a routine issuer. Since then,...



Ford Seen Boosting ABS Volume

Fri, 24 May 2019
Look for Ford to accelerate plans to increase its issuance of bonds backed by auto loans, leases and dealer-floorplan accounts.That’s the chatter among investors since Ford said on May 20 that it plans to cut 7,000 white-collar jobs. The automaker said the move would save some $600 million annually, but analysts questioned whether that would be enough for it to meet its profit targets.Morgan Stanley analyst Adam Jonas, for one, argues Ford...



Agencies Tussle Over Personal Loans

Fri, 24 May 2019
Convinced it was the target of a Fitch report warning of insufficient credit enhancement among securitizations of online personal loans, Kroll is assuring investors that its approach to the asset class is sound.Fitch said in its May 21 alert that shrinking credit protections since 2017 could lead to bond downgrades in a weakened economy, and that many recent offerings with ratings of single A or higher didn’t deserve those marks. While the...



Morgan Stanley Adds MBS Muscle

Fri, 24 May 2019
Morgan Stanley has hired senior mortgage-banking executive Darius Houseal away from J.P. Morgan.Houseal arrived in Morgan Stanley’s New York office about two weeks ago as an executive director in charge of warehouse financing for non-agency home loans. He reports to secured-lending chief Vanessa Vanacker.The assignment dovetails with a broad expansion of Morgan Stanley’s mortgage-securitization business that already is under way, with...



Tech Firm Targets Bank Statements

Fri, 24 May 2019
Technology company LoanScorecard is developing a tool that promises to speed up verification of “bank-statement” mortgages, which have been growing as a category of securitization collateral.The Irvine, Calif., company’s “Bank Statement Analyzer” would give originators of those credits direct access to borrowers’ bank accounts and quickly calculate their earnings. That process usually is handled manually, and...



DV01 Expands in Non-QM Sector

Fri, 24 May 2019
Loan-analytics shop DV01 has picked up assignments from two more bond issuers whose deal collateral doesn’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards.The New York firm served as loan-data agent on a $919 million deal Western Asset Management priced on May 16 via underwriter Credit Suisse. It also will work on Angelo, Gordon & Co.’s first offering in the asset class (see article on...



The Grapevine

Fri, 24 May 2019
Longtime industry professional Parker Russell is retiring from his job as head of the U.S. asset-backed bond underwriting team at Lloyds Banking. Russell has worked at Lloyds since 2009 and moved into his current post in New York in 2014. Earlier, he spent time at BMO Capital, HBOS, ING and Bank One. Thomas Spary, who oversees Lloyds’ commercial-paper conduit business in the U.S., is absorbing Russell’s...



The Grapevine

Fri, 24 May 2019
Bond-market veteran Chris O’Connor has joined the New York office of brokerage firm INTL FCStone as head of debt capital markets. O’Connor had been serving as president of First Empire Securities since 2017, coming off stops at Incapital Holdings, Cortview Capital and StormHarbour Securities. His former employers also include Bear Stearns, where he was co-head of debt capital...



The Grapevine

Fri, 24 May 2019
Shervyn von Hoerl has left his New York post as head as head of portfolio management and risk management for Kells Funding, a commercial-paper conduit run by FMS Wertmanagement. He now is working on a new funding service at technology company Capitolis. Von Hoerl worked at FMS since 2013. He also has spent time at 20 Gates Management, Depfa Bank, Hypo Real Estate Capital and HVB Risk...



The Grapevine

Fri, 24 May 2019
Sarper Beyazyurek has left Wells Fargo’s Charlotte office, where as a director he was responsible for assigning values to mortgage pools and securities — with a focus on nonperforming and reperforming loans. He now is at investment firm Churchill Real Estate, where he holds the title of head of portfolio management. Beyazyurek’s most recent stint at Wells began in 2012. He was also at Wells from 2009-2011, and has worked at Ally...



The Grapevine

Fri, 24 May 2019
Millennium Management added senior credit analyst Mike McMahon to its collateralized loan obligation investment team in New York last week. McMahon had been a managing director at Fosun International since 2018. Before that, he was on the CLO-issuing side at Carlson Capital. He also has worked at Blackstone.



The Grapevine

Fri, 24 May 2019
Kevin Gibbons has left his post as head of a lender-finance team in Capital One’s Chicago office to return to Amherst Group. Gibbons had joined CapOne from Amherst’s structured-finance division in 2013. He also has worked at BMO Capital and American National Bank.



The Grapevine

Fri, 24 May 2019
Consolidated Analytics has hired a senior vice president to handle product development and sales within a unit that assigns values to mortgage instruments. Joshua Fuchs, who is based in Dallas, had been performing valuation work at Goldman Sachs since 2016. He also has worked at ISGN Corp., J.P. Morgan and Fannie Mae.



The Grapevine

Fri, 24 May 2019
Vice president Niresh Shukla has left Barclays’ asset- and mortgage-backed securities structuring team in New York, apparently for a job on the buy side. Shukla had joined Barclays in 2013 from Wells Fargo.



The Grapevine

Fri, 24 May 2019
Former Citigroup mortgage-bond trader Andrew Preiser joined Guggenheim’s Santa Monica, Calif., office about a week ago. Preiser worked at Citi from 2015 until this March. In addition to home-loan bonds, he trades securities backed by whole-business cashflows, subprime auto loans and aircraft leases.



The Grapevine

Fri, 24 May 2019
Mortgage-review shop Infinity IPS has added a senior vice president to its sales staff. David Travis, who joined the firm’s New York office this month, most recently was employed at the United Nations Federal Credit Union from 2015 to this March. He also has worked at U.S. Bank and HSBC.



LISTING: CLO Market Makers

Sat, 18 May 2019
Amherst PierpontContact: Erez Biala646-776-7826ebiala@apsec.comErez Biala646-776-7826ebiala@apsec.comEfforts to build an origination business encompassing warehouse-finance, structuring and distribution services began to gain traction in 2018, including an assignment from Z Capital. But the firm remains better known for its trading activities.NOTE: Complete listing appeared in May 17, 2019, issue of Asset-Backed Alert and can be found on...



LISTING: CLO Market Makers

Sat, 18 May 2019
BairdContact: Mario Verna414-244-4463mverna@rwbaird.comDavid Barrish646-557-3237dbarrish@rwbaird.comGarret Jankowski414-244-4481gjankowski@rwbaird.comEntered the origination business with the April addition of Mario Verna from Guggenheim. Continues to build up busy secondary-market operation under David Barrish and Garrett Jankowski.NOTE: Complete listing appeared in May 17, 2019, issue of Asset-Backed Alert and can be found on ABAlert.com, in...



LISTING: CLO Market Makers

Sat, 18 May 2019
Bank of AmericaContact: Ed Tang646-855-8562edward.c.tang@baml.comCharles Hand44-207-996-7964charles.hand@baml.comAlex Murdzhev646-855-9680aleksandar.murdzhev@baml.comHead banker Wynne Comer left May 8 to join AGL Credit. Comer had been heading origination, with Ed Tang overseeing syndication. Charles Hand covers both functions in Europe. Remains near the top of the bookrunner league table despite below-market growth in 2018 and some contraction...



LISTING: CLO Market Makers

Sat, 18 May 2019
BarclaysContact: John Clements212-526-8475john.clements@barclays.comJonathan Kitei212-412-2035jonathan.kitei@barcap.comSebastien Illat44-207-773-3821sebastien.illat@barclays.comSam Oher212-526-0998samuel.oher@barclays.comMichael Clarke44-207-773-5339michael.clarke@barclays.comHas been adding staff amid a move into the upper echelon of underwriters. CLO-banking co-head Adrian Radulescu left last June, however, later landing at Guggenheim....



LISTING: CLO Market Makers

Sat, 18 May 2019
BNP ParibasContact: Adnan Zuberi212-841-3877adnan.a.zuberi@us.bnpparibas.comDushy Puvan44-207-595-8500dushy.puvan@uk.bnpparibas.comOmar Chaudhry212-471-8252omar.chaudhry@us.bnpparibas.comMehdi Kashani44-207-595-1819mehdi.kashani@uk.bnpparibas.comReversed 2018 reduction in deal volume with a surge of first-quarter offerings for issuers including Ares Management, Octagon Credit and THL Credit. League-table standing just a step below the busiest...



LISTING: CLO Market Makers

Sat, 18 May 2019
Brean CapitalContact:Richard Barry212-702-6585rbarry@breancapital.comTrading co-head Pouya Minazad left in December to join Polar Asset Management. His exit followed Brean’s marriage with Hunt Financial Securities. Focuses on mezzanine-note and equity trades.NOTE: Complete listing appeared in May 17, 2019, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Market...



LISTING: CLO Market Makers

Sat, 18 May 2019
Brownstone InvestmentContact:Marc Steinberg212-905-0546msteinberg@brownstone.comTrading business continues to grow gradually as the firm makes inroads on the banking side by quietly fielding origination tasks. Also maintains a sales staff.NOTE: Complete listing appeared in May 17, 2019, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Market...



LISTING: CLO Market Makers

Sat, 18 May 2019
CitigroupContact: Jim Hughes212-723-1120jim.hughes@citi.comLaura Coady44-207-986-1304laura.coady@citi.comVitaliy Kozak44-207-986-3702vitaliy.kozak@citi.comLeadership shifted this year with European banking head Eric Velay moving into a financing-focused role and top U.S. trader Brian Bejile switching to leveraged loans. Changes came under Jim Hughes, who was promoted to lead the overall team in 2018. Remains the market’s most active...



LISTING: CLO Market Makers

Sat, 18 May 2019
Credit SuisseContact: Brad Larson212-325-9207brad.larson@credit-suisse.comArun Cronin44-207-888-3449arun.cronin@credit-suisse.comBrian Hochhauser212-325-3563brian.hochhauser@credit-suisse.comDeal volume continues to slide, with the bank falling below the 10 most active underwriters as its first-quarter tally was halved from a year earlier. The drop reflects continued effects of staff exits dating back to 2015, plus 2017 shuttering of European...



LISTING: CLO Market Makers

Sat, 18 May 2019
Deutsche BankContact: Francis McCullough212-250-2530francis.mccullough@db.comSebastien Cottrell212-250-7553sebastien.cottrell@db.comJohn Parker44-207-547-3157john.parker@db.comSenior trading ranks thinned with exits of Anna Farbiszewska and Matthew Matson in April, with Farbiszewska becoming head CLO trader at MUFG and Matson joining Mizuho. Trading desk remains among the most active on the street, however, with an emphasis on mezzanine...



LISTING: CLO Market Makers

Sat, 18 May 2019
Goldman SachsContact: Amit Roy212-357-2019amit.roy@gs.comKamal Ramnani212-357-0077kamal.ramnani@gs.comLeague-table ascent has continued, with deals from repeat clients joined by first-time assignments from Anchorage Capital, Hayfin Capital, Invesco and Kayne Anderson Capital. Kamal Ramnani has led trading since Sameer Maru stepped aside a year ago.NOTE: Complete listing appeared in May 17, 2019, issue of Asset-Backed Alert and can be found on...



LISTING: CLO Market Makers

Sat, 18 May 2019
GreensLedge CapitalContact: Ken Wormser212-796-6551kwormser@greensledge.comBrian Zeitlin212-792-5272bzeitlin@greensledge.comPaul Levy44-203-440-3034plevy@greensledgeuk.comJim Kane212-792-5271jkane@greensledge.comDavid Powar212-796-6552dpowar@greensledge.comMaintains outsized trading presence, thanks in part to investor contacts in Japan and Korea. Veteran team also competes with larger banks as an underwriter, winning assignments from heavyweight...



LISTING: CLO Market Makers

Sat, 18 May 2019
GuggenheimContact: Adrian Radulescu212-293-2570adrian.radulescu@guggenheimpartners.comErvin Pilku212-518-9692ervin.pilku@guggenheimpartners.comFormer Barclays executive Adrian Radulescu arrived in October to lead CLO banking. His predecessor, Mario Verna, since has moved to Baird. On the trading side, brought in Ervin Pilku from Cantor Fitzgerald in October to fill a post Bryan Gonnella occupied since late 2017. Gonnella then moved to RBC Capital...



LISTING: CLO Market Makers

Sat, 18 May 2019
J.P. MorganContact: Sean Griffin212-834-5532sean.p.griffin@jpmorgan.comChristine Ferris212-834-2466christine.k.ferris@jpmorgan.comSteve Baker44-207-134-2587steven.baker@jpmorgan.comShivraj Bhushan212-834-2424shivraj.s.bhushan@jpmorgan.comMatt Carpenter44-207-134-0709matthew.carpenter@jpmorgan.comOrigination team remains among the busiest in the market, benefitting in part from the bank’s presence in leveraged-loan syndication. Steve Baker...



LISTING: CLO Market Makers

Sat, 18 May 2019
Janney Montgomery ScottContact:Clay Brasher212-888-2931cbrasher@janney.comFocuses on the secondary market, specifically trading mezzanine and equity securities. Helped by experienced sales staff of Jeff Bertoni, Ross Heller and Anthony Veltri.NOTE: Complete listing appeared in May 17, 2019, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Market...



LISTING: CLO Market Makers

Sat, 18 May 2019
JefferiesContact: Jason Schechter212-336-7176jschechter@jefferies.comJason Schechter212-336-7176jschechter@jefferies.comTypically sits right outside the top-10 bookrunners, but has posted gains this year by mixing assignments from repeat clients with new ones including Bain Capital and PGIM Investments. Willing to try creative structures and new ways of placing or financing CLO equity.NOTE: Complete listing appeared in May 17, 2019, issue of...



LISTING: CLO Market Makers

Sat, 18 May 2019
Marv CapitalContact:Maneesh Awasthi212-244-7561maneesh.awasthi@marvcapital.comViru Raparthi212-244-7563viru.raparthi@marvcapital.comLost Alexey Dronov to issuer Allstate in July, but Marv founders Maneesh Awasthi and Viru Raparthi still trade with a focus on mezzanine and equity. With the secondary market slow, however, they have spent more time privately placing deals from Brazil with large U.S. insurers.NOTE: Complete listing appeared in May...



LISTING: CLO Market Makers

Sat, 18 May 2019
MizuhoContact: Steve Kahn212-205-7568steven.kahn@us-mizuho-sc.comHao Jiang212-205-7598hao.jiang@us-mizuho-sc.comJim Stehli212-205-7568james.stehli@us.mizuho-sc.comFebruary CLO from Wellfleet Credit was the bank’s first since 2015, and it’s hoping to win more new-deal business after receiving management’s approval to expand warehouse financing. Has been hurt more than most by slower refinancing activity. Plans to step up trading...



LISTING: CLO Market Makers

Sat, 18 May 2019
Morgan StanleyContact: Loris Nazarian212-761-4756loris.nazarian@morganstanley.comRachel Russell212-761-2832rachel.russell@morganstanley.comOrestis Millas44-207-677-8119oristis.millas@morganstanley.comRebecca Dorrian212-761-2102rebecca.dorrian@morganstanley.comDan Leiter44-207-677-6993daniel.leiter@morganstanley.comMax Gordon-Brown44-207-677-4684max.gordon-brown@morganstanley.comWhile volume has slipped this year following strong growth in 2018,...



LISTING: CLO Market Makers

Sat, 18 May 2019
MUFGContact: Asif Khan212-405-7360akhan@us.sc.mufg.jpChris Gray212-405-7085chris.gray@mufgsecurities.comEmphasizing new deals as core refinancing activity slows. That push has benefitted from the parent bank’s purchases of senior notes and contacts with other players in Asia. Chris Gray is filling in as head trader following Sean Gibson’s February exit for SMBC Nikko. Anna Farbiszewska, formerly of Deutsche Bank, will arrive as the...



LISTING: CLO Market Makers

Sat, 18 May 2019
NatAllianceContact:Paul Pasqua646-998-6453ppasqua@natalliance.comThe former Auriga USA team remains active following the firm’s November merger with NatAlliance. Had just returned to secondary-market trading with 2017 hiring of Paul Pasqua from StormHarbour Securities.NOTE: Complete listing appeared in May 17, 2019, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Market...



LISTING: CLO Market Makers

Sat, 18 May 2019
NatixisContact: Alex Zilberman212-891-5870alex.zilberman@us.natixis.comChris Gilbert212-891-1824chris.gilbert@us.natixis.comReggie Fernandez212-891-1979reginald.fernandez@us.natixis.comPromoted Alex Zilberman to global CLO head in June 2018 while elevating Chris Gilbert to oversee U.S. origination business. The moves appeared to come in response to earlier staff departures, as underwriting volume had flattened despite market growth.NOTE: Complete...



LISTING: CLO Market Makers

Sat, 18 May 2019
NomuraContact: Florian Bita212-667-2284florian.bita@nomura.comAnton Lokho212-667-2230anton.lokhov@nomura.comBen Ufer212-667-2406benjamin.ufer@nomura.comRevenues mainly stem from secondary-market trading and refinancings, with the bank handling occasional new deals. But the November hiring of former RBC trader Florian Bita to oversee CLO underwriting shows a desire to grow on that end. His installation marked the second time the position changed...



LISTING: CLO Market Makers

Sat, 18 May 2019
RBCContact:Tom Hasse212-618-7723thomas.hasse2@rbc.comOrigination program was left in limbo with the February exit of head banker Russell Pemberton, who now oversees CLO investments at Nassau Re. Pemberton had launched RBC’s CLO-banking effort in 2013, claiming a modest market share. Secondary-market trading remains healthy, aided by the April addition of Bryan Gonnella from Guggenheim.NOTE: Complete listing appeared in May 17, 2019, issue...



LISTING: CLO Market Makers

Sat, 18 May 2019
SMBC NikkoContact: Dan Strong212-224-5176dstrong@smbcnikko-si.comSean Gibson212-224-5130sgibson@smbcnikko-si.comAmid a broader push into structured products, the bank has launched CLO banking and trading units. Head banker Dan Strong joined a year ago from Capital One, with Sean Gibson arriving in February from MUFG. Hasn’t led a deal on its own yet, but has assisted other banks while tapping investor contacts in Japan. Seeking assignments...



LISTING: CLO Market Makers

Sat, 18 May 2019
Societe GeneraleContact: Harry Huang212-278-5978harry.huang@sgcib.comHong Zhao212-278-5686hong.zhao@sgcib.comUnderwriting assignment for Ares Management in February was the bank’s first since 2017, and only its third since the credit crisis. Continues to weigh a move into European CLO market.NOTE: Complete listing appeared in May 17, 2019, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section...



LISTING: CLO Market Makers

Sat, 18 May 2019
Wells FargoContact: Kevin Sunday704-410-2384kevin.sunday@wellsfargo.comJason Powers704-410-2490jason.a.powers@wellsfargo.comSergei Zagin704-410-3315 sergei.zagin@wellsfargo.comContinues to push for a top-five standing among underwriters, with this year’s client list including BlackRock, Eaton Vance Management and Oaktree Capital. Scope includes deals backed by loans to both large and mid-size companies. Warehouse-financing terms emphasize...



Breck Out as BofA's ABS-Underwriting Chief

Fri, 17 May 2019
Bank of America has reassigned Ted Breck, one of its highest-ranking and longest-tenured securitization professionals.The New York-based Breck, who joined BofA via its 2009 takeover of Merrill Lynch, had been overseeing origination, structuring and distribution of asset- and mortgage-backed securities worldwide. While details of his new role are unclear, he is leading a just-forming group called global markets that would operate as part of the...



Fitch Restating FirstKey Loan Description

Fri, 17 May 2019
Fitch is revising a presale report that led investors to believe FirstKey Mortgage had weakened its due-diligence processes.Fitch initially released the document on April 11 in anticipation of a $3.3 billion securitization of reperforming mortgages and performing seasoned mortgages that FirstKey priced the next day. Originally, it indicated that FirstKey had commissioned due-diligence reviews for loans representing 85% of the collateral...



Rare Utility-Fee Bonds Headed to Market

Fri, 17 May 2019
AEP Texas is moving ahead with what would be the first utility-fee securitization in the U.S. since May 2018.The $229 million transaction is expected to hit the market in the next month or so with Goldman Sachs running the books. The bonds would be backed by special fees added to customers’ electricity bills, with AEP Texas using the proceeds to recover the costs of repairs to facilities damaged by severe storms, including Hurricane Harvey...



Hunton Nabs Veteran MBS Lawyer

Fri, 17 May 2019
Hunton Andrews has hired prominent mortgage-securitization attorney Serena Mentor away from Wells Fargo.Mentor arrived in Hunton’s New York office on May 13 as a counsel tasked with handling issuer and underwriter counsel assignments on a range of home-loan bond deals. The assignment positions her as a lead attorney within the law firm’s residential mortgage-backed securities practice, which already is entrenched as a market leader...



Public-Relations Makeover for SFIG

Fri, 17 May 2019
The Structured Finance Industry Group is taking further steps to increase its influence in Washington.A key element of the initiative, according to president Michael Bright, is an overhaul of the group’s website. To that end, it has hired Washington public-relations firm Subject Matter to make the website more useful to lawmakers and their aides. “We’re doing a top-to-bottom redesign that will include a new logo, educational...



Data Firm Questions Agency Loans

Fri, 17 May 2019
Data-analytics firm TheNumber is warning investors that risk-transfer deals recently issued by Freddie Mac and Fannie Mae may be riskier than they first appeared.A slow deterioration among those deals’ underlying mortgages has been well documented. But TheNumber is arguing that some buysiders still underestimate the potential for principal losses by basing their projections on overly simple assumptions that home prices will rise 3%...



JP Morgan Adding MBS Momentum

Fri, 17 May 2019
J.P. Morgan is planning a further increase in its mortgage-bond issuance.The bank has signaled to investors and originators that it expects to complete perhaps 14 such offerings this year. That would mark an increase from 10 transactions for $6.4 billion in 2018 and six deals for $5.5 billion in 2017, according to Asset-Backed Alert’s ABS Database.All of J.P. Morgan’s mortgage securitizations in the last two years were backed by...



Industry PAC Begins Spending

Fri, 17 May 2019
The Structured Finance Industry Group’s political action committee has contributed money to its first election campaigns.While the Federal Election Commission has yet to disclose the recipients, sources said the Structured Finance Coalition PAC has written checks to the re-election committees of both Republican and Democratic members of the Senate Banking Committee and House Financial Services Committee. Both committees are considering...



Lone Star Sells Whole-Loan Pool

Fri, 17 May 2019
Lone Star Funds has sold a $300 million portfolio of mortgages.Sources are pointing to Pimco or Western Asset Management as the likely buyer of the accounts, which don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards. One source said the buyer intends to securitize the loans.On April 12, Pimco issued $370.4 million of mortgage bonds backed by non-qualified accounts via its Bravo Residential...



CLO Credit Cushions Shrink

Fri, 17 May 2019
A key form of credit enhancement for collateralized loan obligations deteriorated for many U.S. deals in March, amid a spate of defaults by Windstream Services and other companies whose loans are widely held.The median senior over-collateralization level — a measure of the excess collateral protecting holders of triple-A and double-A-rated paper — slipped 1 bp for all CLOs, but dropped 16 bp for those issued in 2014, according to...



Prosper Joining Issuance Clubs

Fri, 17 May 2019
Look for Prosper Marketplace to retain more of its personal loans for securitization.While the San Francisco originator has sponsored six securitizations totaling $2.8 billion since 2017, it didn’t kick in any of the collateral for the first five offerings. Instead, it arranged “club” transactions that bundled accounts it had sold to multiple buyers.That changed when Prosper contributed an undisclosed portion of the collateral...



Leading Collateralized Loan Obligation Trading Desks

Fri, 17 May 2019
The listing below shows contact information for the senior-most bankers and traders in the collateralized loan obligation market.Many of the investment banks and brokerage firms included are the same ones that have appeared atop Asset-Backed Alert’s underwriter league tables. They also include broker-dealers that don’t maintain large underwriting operations, but are active on the trading side.Heads of CLO banking oversee deal...



The Grapevine

Fri, 17 May 2019
Kenny Rosenberg joined Morgan Stanley’s New York office in April as head of the bank’s U.S. asset- and mortgage-backed securities syndicate desk. Rosenberg had been at Barclays since 2011, following stops at Credit Suisse and Prudential. He reports to Rachel Russell, who continues to oversee syndication of asset-backed securities, mortgage-backed securities and collateralized loan obligations.CORRECTION (5/17/19): This article...



The Grapevine

Fri, 17 May 2019
Societe Generale has a new head of asset-backed securities underwriting in Australia. Arkady Lippa arrived in the bank’s Sydney office in April as a managing director. Lippa had been working at National Australia Bank since 2007, most recently in a product-development role. He also has worked at Australia and New Zealand Banking and GE Capital.



The Grapevine

Fri, 17 May 2019
Director Daniel Chen parted ways with MUFG in April. Chen had joined the bank’s New York office in September with a focus on assembling a mix of term asset-backed bonds and asset-backed commercial paper deals. His previous employers include Cross River Bank, MetLife and Morgan Stanley.



The Grapevine

Fri, 17 May 2019
Jamie Wing, an East West Bank secured-lending specialist whose work included structured-finance tasks, died last weekend in a car crash. Wing, 42, also worked at Brevet Capital, NewOak Capital, MUFG and Bear Stearns. Services will be held today at Collins Funeral Home in Norwalk, Conn.



The Grapevine

Fri, 17 May 2019
Salesman Kevin Cleary has left William Blair & Co. Cleary had just arrived in the investment-banking firm’s New York office in January. He previously worked briefly at Hunt Financial Securities, only to be let go amid that firm’s 2018 merger with Brean Capital. Cleary’s financial-market career stretches back to the 1970s, with a list of former employers that also includes Samuel A. Ramirez & Co., Loop Capital, Canaccord Genuity...



The Grapevine

Fri, 17 May 2019
Startup investment shop AGL Credit has added two members to its staff. Ryan Hosie arrived in April as a senior analyst covering leveraged loans, presumably including those backing collateralized loan obligations the New York firm intends to issue. Hosie had spent the previous year at Silicon Valley Bank, following a stop at CIFC. Also on board is investor-relations specialist Menka Lamba, from Nexthera Capital. AGL is led by Peter Gleysteen, in...



The Grapevine

Fri, 17 May 2019
Al Paradiso left Hunt Financial Securities in April, destination unknown. Hunt had hired Paradiso in 2017 to set up middle-office support for its then-new broker-dealer operation, which became part of Brean Capital in November. Paradiso previously worked in a similar capacity at BMO Capital, Jefferies and Bear Stearns.



The Grapevine

Fri, 17 May 2019
Risk-analytics firm Oakleaf Group is seeking a mortgage-bond specialist. The recruit would work in Alexandria, Va., as a portfolio manager tasked with helping an undisclosed client review and oversee a book of pre-credit-crisis home-loan securities. Oakleaf is focusing on candidates with at least two years of experience. For more information, click on “careers” at theoakleafgroup.com and search for job number...



The Grapevine

Fri, 17 May 2019
Scott DiPisa has joined New York data company T-Rex Group in a business development role. DiPisa had been working since January 2018 at technology firm Symphony Communication, and before that spent time at FactSet and Bloomberg. T-Rex’s services include a program that helps assess risk and performance across a range of securitized assets.



The Grapevine

Fri, 17 May 2019
Hunton Andrews has elevated Alex Velinsky to partner. Velinsky, a Charlotte-based attorney who works on securitizations of mortgages and other consumer assets, had been an associate. He joined Hunton in 2015 from Cooley.



Chrysler Reverses Course on Santander Deal

Fri, 10 May 2019
Fiat Chrysler is sticking with Santander Consumer USA as preferred lender for its U.S. operation, ensuring a continued source of collateral for Santander’s securitizations of auto loans and leases.The partnership, formed in 2013, originally called for Santander to write loans to Fiat Chrysler customers over a period of 10 years through its Chrysler Capital unit. But dissatisfaction with the bank’s origination volume led Fiat’s...



Atalaya Absorbs Telos' CLO-Issuing Unit

Fri, 10 May 2019
Atalaya Capital has launched a collateralized loan obligation issuing business.The effort started with an April 29 deal that saw Atalaya purchase Telos Asset Management’s CLO-management contracts from Tiptree Asset Management while hiring the core six-person team overseeing those deals. The New York firm plans to complete an offering of its own as early as June, while bringing in several additional staffers.Overseeing the initiative is John...



Prosecutors Take Notice of Honor Scandal

Fri, 10 May 2019
The U.S. Department of Justice is investigating defunct auto lender Honor Finance, whose lone asset-backed bond deal is on the verge of default.The inquiry adds potential criminal charges to a case the government has been building against Honor since November, when the SEC began investigating whether the Evanston, Ill., subprime lender and executives James Collins and Robert DiMeo overstated historical asset performance prior to...



Europeans Debate Risk-Transfer Deals

Fri, 10 May 2019
Bankers and investors in Europe are increasingly optimistic that risk-transfer deals backed by loans to small and mid-size companies will gain treatment as “simple, transparent and standardized” securities.Such a move could open the floodgates for a funding strategy that has gained favor among investors in the past few years. Because the change would require an act of European Parliament, however, it could be some time before banks...



AXA Building CLO Portfolio in US

Fri, 10 May 2019
AXA’s U.S. insurance business has started buying collateralized loan obligations.Sources said the Greenwich, Conn., operation began gobbling up senior CLO securities in the final months of 2018. Its CLO portfolio totaled $500 million at yearend — a figure that’s expected to double in 2019.The U.S. unit invests separately from AXA Investment, the main buyside operation of the Paris insurer.AXA’s U.S. business had $63.8...



Figure Surges in Blockchain Race

Fri, 10 May 2019
(SEE CORRECTION BELOW) Figure Technologies is moving ahead with plans to originate, warehouse and securitize pools of home-equity loans using blockchain technology, while making its tools available to others.The San Francisco company has been aiming to complete its debut bond offering by the end of June. Now comes word that it expects the privately placed deal to encompass $100 million of unrated securities distributed by a traditional...



Insurers Retreat From Card Deals

Fri, 10 May 2019
Dealers predict that major life insurers in the U.S. will cut their holdings of credit-card bonds by more than $1 billion this year.That would work out to a reduction of at least 31% from the $3.2 billion those companies held at yearend 2018, based on data from an April 4 report by Wells Fargo researcher Gary Zhu. The report noted that the card-bond portfolios of the 30 largest insurers already shrank last year by $1.3 billion, or 29%.Much of the...



Top Mortgage Pro Exiting SFIG

Fri, 10 May 2019
Dan Goodwin has resigned from his post as the Structured Finance Industry Group’s head of mortgage policy.Goodwin’s April 26 exit came three months after SFIG hired Michael Bright as chief executive. Goodwin had been among the 35 applicants for that job, which opened when the trade group fired Richard Johns last June.Sources described a situation in which Bright’s experience as a mortgage-finance professional who most recently...



NY Fast-Tracking C-PACE

Fri, 10 May 2019
The City of New York’s commercial Property Assessed Clean Energy program could be up and running by yearend, resulting in a heavy flow of receivables that could be securitized.The initiative, in development since 2017, already was seen as a fertile source of asset-backed bond collateral due to the city’s size. Now those projections have grown, thanks to the New York City Council’s April passage of tough energy-efficiency...



Auto-Loan Indicator Sets Record

Fri, 10 May 2019
Delinquencies among securitized pools of prime-quality auto loans are at a record low.During the month ended April 15, 60-day delinquencies fell 5 bp to 0.24%, according to an index maintained by Fitch. That’s the lowest reading since the agency began tracking the performance of securitized auto loans in 2001. Losses among prime loans was an annualized 0.54%, unchanged from the previous month. Performance indicators for subprime accounts...



Deephaven Mortgage In Play

Fri, 10 May 2019
Varde Partners has initiated talks to sell mortgage-bond issuer Deephaven Mortgage.Sources said the Minneapolis fund operator is negotiating with two potential buyers, with the goal of striking a deal by the end of September.Varde purchased Deephaven in 2014 while pledging up to $300 million toward the Charlotte operation’s expansion. The timing of the talks with suitors reflects a goal of exiting the investment within five years.Varde...



Ally Finance Unit Gaining Ground

Fri, 10 May 2019
Ally Financial is quickly building up a corporate-finance effort it launched in February.The operation’s second-quarter lending volume is expected to total about $1 billion, including a $250 million leveraged loan to an undisclosed mid-size company that closed this week. Much of the rest would consist of warehouse lines offered to specialty lenders, including equipment-leasing companies.By this time in 2021, Ally could have several billion...



Lending Club Mulls Moody's Rating

Fri, 10 May 2019
Lending Club is preparing its next personal-loan securitization, possibly with a rare rating from Moody’s.The offering, backed by loans to prime-quality borrowers, is expected to total $300 million. J.P. Morgan is running the books.Should Lending Club’s talks with Moody’s yield a rating assignment, it would mark only the agency’s third appearance on a securitization of online personal loans in the U.S. since August 2018....



The Grapevine

Fri, 10 May 2019
David Rashty resigned as head of mortgage-product trading and securitization structuring at Flagstar Mortgage about a month ago. Rashty had joined the Troy, Mich., company in 2013 following stops at NMRF, UBS and Lehman Brothers. After bowing out of the mortgage-bond market during the credit crisis, Flagstar resumed its activity in 2017, completing eight jumbo-loan transactions totaling $3.8 billion since...



The Grapevine

Fri, 10 May 2019
Kyle Shenton has left his post as head of SunTrust’s asset-finance team, which offers securitization-banking and warehouse-lending services to clients. His destination: Regions Financial of Birmingham, Ala., where he apparently is setting up a similar operation. Shenton had been on board at SunTrust since 2010, splitting his time between New York and the bank’s Atlanta headquarters while working on a range of deals including...



The Grapevine

Fri, 10 May 2019
The executive in charge of National Life’s investments in asset-backed securities, collateralized loan obligations and residential and commercial mortgage bonds left the Montpelier, Vt., insurer in April. Josh Kruk had been handling those tasks as head of liquidity markets since 2018, when he arrived from a buyside post at Goldman Sachs Asset Management. Kruk also has worked at Dwight Asset Management, Bain Capital and...



The Grapevine

Fri, 10 May 2019
Pretium Partners has hired attorney Eric Bothwell to assist in its activities as a structured-product issuer. Bothwell, whose duties include advising on strategic matters, had been working as a consultant since 2017 — when previous employer Ashurst disbanded the collateralized loan obligation practice where he worked. He also has spent time at UBS, Ellington Management and Goldman Sachs. Pretium, a mortgage-focused investment firm with...



The Grapevine

Fri, 10 May 2019
Alston & Bird has added a partner to its securitization practice. Katrina Llanes arrived in the firm’s New York office in recent weeks. Llanes had been working on a temporary assignment at Credit Suisse since November, and before that was a counsel at Hunton Williams. She works broadly on securitization and secured lending, along with other complex corporate-finance...



The Grapevine

Fri, 10 May 2019
Haran Kumar stepped down as a collateralized loan obligation trader on GoldenTree Asset Management’s investment team in April to take a non-securitization post at Palantir Technologies in New York. Kumar had joined GoldenTree in July 2018 after stops at Guggenheim and J.P. Morgan. Taking his place is Udit Agrawal, who arrived in 2018 from Calpers. Agarwal also has worked at Bank of America and Nomura. He reports to Cee...



The Grapevine

Fri, 10 May 2019
Managing director Alex Kreydin exited Waterfall Asset Management’s New York office last week. Kreydin’s plans are unknown. He had been overseeing a portfolio of high-yielding bonds backed by unusual cashflows at Waterfall, which he joined in 2010 from Wachovia.



The Grapevine

Fri, 10 May 2019
Cole Halpern joined OneMain Financial’s New York capital-markets team in April as a senior analyst working on the company’s securitizations of personal loans and auto loans, as well as corporate bonds. Halpern had been working in the securitization area of Ernst & Young since 2016. OneMain has completed 14 securitizations totaling $8.5 billion since...



The Grapevine

Fri, 10 May 2019
Gail Brandli joined Mountainview Financial’s New York sales team on May 6 as a managing director focused on pitching the company’s bond-valuation services for structured products, including collateralized loan obligations. Brandli had working been at Thomson Reuters since 2010, and before that was at Nomura and J.P. Morgan.



Blackstone Adds Pros for Broad MBS Push

Fri, 03 May 2019
Blackstone-backed mortgage lender Finance of America has hired two structured-finance specialists to help expand its bond-issuing activities.The April arrivals of Patrick Kim from FirstKey Mortgage and Khalil Kanaan from One William Street Capital signal plans by Finance of America to offer a range of securities, possibly including deals backed by loans that don’t meet the Consumer Financial Protection Bureau’s...



CLO Investor Whitebox Assumes Issuer Role

Fri, 03 May 2019
Whitebox Advisors, a hedge fund shop that routinely invests in collateralized loan obligations, has formed a unit to issue its own CLOs.The division, Whitebox CLO Management, has begun buying leveraged loans via a warehouse line from J.P. Morgan. It also has started reaching out to CLO investors, though the timing of an inaugural deal is uncertain.Whitebox has long invested in CLOs via its flagship Whitebox Multi-Strategy Partners Fund and, more...



Negative-Am Mortgage Bonds Resurfacing

Fri, 03 May 2019
Wells Fargo is auctioning off pre-credit-crisis mortgages in which the borrowers were able to defer early payments by adding to their principal balances — accounts that could land in securitization pools.The bank started the effort by selling a few hundred million dollars of the so-called negative-amortization loans last year. Satisfied with the results of that offering, it sold $2 billion of the accounts this week as part of an auction...



Pass-Throughs Keep Gaining Favor

Fri, 03 May 2019
A decline in the volume of bonds backed by online personal loans is expected to continue as originators increasingly bundle their receivables into pass-through certificates.Lending Club has been especially aggressive in adopting the strategy, in part explaining why it hasn’t completed an asset-backed bond deal this year after carrying out four offerings totaling $1.1 billion in 2018. At this point last year, it had priced a single issue for...



Errors Jump in Mortgage Docs

Fri, 03 May 2019
The number of errors in mortgage applications rose sharply at the beginning of this year.For comparative purposes, a monthly index maintained by First American Financial assigns a benchmark level of 100 to the frequency of errors encountered in January 2011. The index was at 87 in December 2018, then rose to 91 in January before appearing to stabilize at 95 in February and March.The index had peaked at 102 in October 2013 before falling to a low...



Ex-Impac President Back in Business

Fri, 03 May 2019
Former Impac Mortgage president William Ashmore has started an investment firm focused on buying home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified mortgage” standards.While details remain sketchy, Ashmore’s firm, Vista Point Mortgage of Irvine, Calif., apparently has begun buying mortgages from a network of lenders. It’s unclear whether Vista Point’s exit strategy will...



Student-Loan Paper Poised to Recover

Fri, 03 May 2019
Look for student-loan bonds to gain value in the coming months.Since asset-backed bond spreads widened across the board in the fourth quarter, securities backed by government-guaranteed and private student loans have been much slower to recover in value than comparable credit-card and auto-loan paper.Take five-year notes with triple-A ratings backed by private education loans. Those bonds were trading this week around 85 bp over three-month Libor...



CLO Combo Notes Regain Traction

Fri, 03 May 2019
Collateralized loan obligation issuers increasingly are issuing so-called combination notes.A combo note is created when an issuer combines debt and equity from a new CLO to create a separate class with a blended rating. Indications are that investors, particularly insurers, have been gravitating to the format this year — prompting a jump in combo-note sales that is expected to continue.The buyside interest reflects an ability to capture...



Data-Center Deals In Development

Fri, 03 May 2019
A startup data-center operator is planning to fund its growth through securitization.Archer Datacenters, led by former LibreMax Capital trading chief Jordan Milman, would pledge anticipated payments from its customers as collateral for its bonds. An initial offering could hit the market as early as 2020.Archer would use the proceeds to help fund the construction of a 70,000-square-foot data center in Gallatin, Tenn. The company expects to break...



Renovate America Branches Out

Fri, 03 May 2019
Renovate America, well known to asset-backed bond investors for deals backed by clean-energy equipment loans, may soon begin securitizing pools of home-improvement loans.Through a lending program dubbed Benji, the San Diego company has been originating unsecured loans of up to $50,000 via a network of home-improvement contractors.Until now, Renovate America has funded that program through a series of whole-loan sales totaling $165 million. But...



Bottom-Rung Borrowers Post Gains

Fri, 03 May 2019
Performance indicators for the riskiest pools of securitized personal loans improved during the month ended April 30. According to an index maintained by Kroll, losses among so-called Tier 3 loans fell 809 bp during the month to an annualized 15.73%. That’s the lowest level recorded since Kroll began tracking the accounts in August 2016. Delinquencies among Tier 3 loans fell 76 bp to 3.72%. The Tier 3 classification encompasses loans...



County Shuts Out Tax-Lien Buyer

Fri, 03 May 2019
Florida’s Orange County has banned tax-lien buyer Finch Investment from bidding in an upcoming auction.The action exposes an unlikely but potentially disruptive possibility for investors in Finch’s inaugural securitization — namely, that tax-collection authorities across Florida could void lien sales the Jacksonville company used to build the $209 million deal’s collateral pool.The transaction priced April 5 with Capital...



The Grapevine

Fri, 03 May 2019
Paul Vambutas is leaving his New York post as head of specialty finance at Global Atlantic Financial, a role in which he was responsible for the insurer’s investments in asset-backed bonds and whole loans. Vambutas had arrived at Global Atlantic in 2016 from Apollo Global. Earlier, he spent time at UBS, Deutsche Bank and Credit Suisse.



The Grapevine

Fri, 03 May 2019
Richard Rizzo has landed in the New York arm of London hedge fund manager CQS, with oversight of investments in collateralized loan obligations. Rizzo worked until about a month ago as the head CLO trader at BMO Capital. He was at predecessor KGS-Alpha Capital before that, having arrived from Deutsche Bank in 2015. He also has spent time at Merrill...



The Grapevine

Fri, 03 May 2019
Tom Kirby no longer is employed as a senior portfolio manager helping to oversee the collateralized loan obligation issuance program at Deutsche Bank unit DWS Investment in New York. Kirby transferred to his most recent post in 2015 from Deutsche’s banking arm, where he worked since 2006. While DWS is a longtime CLO issuer, it hasn’t completed a deal since...



The Grapevine

Fri, 03 May 2019
New York Life hired a portfolio manager last week to help oversee its investments in asset-backed securities, mortgages bonds and collateralized debt obligations. Connor Bruce joins the insurer from Citigroup, where he worked in structured-product sales since 2013.



The Grapevine

Fri, 03 May 2019
Peter Lewis has joined TIAA unit Nuveen in New York as an associate portfolio manager covering structured-product investments. Lewis previously held a series of investment and quantitative-modeling roles at Morgan Stanley dating back to 2014, following stops at Goldman Sachs, KPMG and RAND Corp.



The Grapevine

Fri, 03 May 2019
Investment firm Crestline Investors has added a leveraged-loan analyst to its collateralized loan obligation issuing team in Oak Brook, Ill. Sam Dinnin had been at Ameritas Investment since 2017, covering investments in asset-backed securities and CLOs. Crestline, which issues under the Crestline Denali name, has completed six CLOs totaling $2.4 billion since...



The Grapevine

Fri, 03 May 2019
Hilltop Securities has picked up two securitized-product salesmen. Steven Kirchner and Charles Riether started this week in the Dallas broker-dealer’s New York office, reporting to Chris Belhumeur. Kirchner and Riether most recently worked at Hunt Financial Securities from 2017 to 2018. Before that, both were at Performance Trust.



The Grapevine

Fri, 03 May 2019
Hedge fund operator Point72 Asset Management has hired a researcher with securitization experience. Otis Osman arrives at the Stamford, Conn., firm from DBRS, where he reviewed asset-backed bond deals as a quantitative analyst since May 2018. Osman also has worked in sales at INTL FCStone.



The Grapevine

Fri, 03 May 2019
Ares Management has added a structured-product analyst to its investment staff in New York. Ari Feldman arrives from Semper Capital, where since 2016 he worked in a buy-side role encompassing asset-backed securities, collateralized loan obligations and collateralized debt obligations backed by trust-preferred securities. His earlier employers include Duff &...



The Grapevine

Fri, 03 May 2019
Annaly Capital is seeking an associate for its whole-loan investment team in New York. The REIT is focusing on candidates with 3-5 years of experience. The recruit’s tasks would include working with due-diligence firms, arranging funding for loan purchases and assisting in loss-mitigation efforts. For more information, click on “about Annaly” and then “careers” at...



The Grapevine

Fri, 03 May 2019
DBRS has added New Diligence Advisors to the list of due-diligence firms whose reviews it will take into account when rating mortgage bonds. New Diligence already has received similar approvals from S&P, Fitch, Kroll and Morningstar. The Horsham, Pa., company is led by former Clayton Holdings executive Mark Hughes and owned by Selene Holdings, which is being taken over by Pretium...



MetLife Sets Aside Cash for Private ABS

Fri, 26 Apr 2019
MetLife is assembling a portfolio of private asset-backed bonds.The insurer, already a frequent buyer of mainstream structured products, apparently plans to deploy several hundred million dollars in the market by yearend. The investments typically would be backed by riskier assets, including timeshare loans, subprime credit-card accounts, aircraft leases and structured-settlement payments.In some cases, the issuers would arrange the deals...



FirstKey Prepping First Heloc Deal in Years

Fri, 26 Apr 2019
FirstKey Mortgage is preparing the first U.S. securitization of home equity lines of credit since the sector collapsed in 2007, along with a rare deal backed by manufactured-home loans.The home-equity deal, with a face value of about $225 million, is due to hit the market in the next week or so with ratings from Fitch and Kroll. J.P. Morgan is running the books.FirstKey, a unit of Cerberus Capital, separately is working on a manufactured-home...



Morningstar Recruits Reinforce MBS Team

Fri, 26 Apr 2019
Morningstar has hired two key analytical professionals away from S&P, installing one of them as head of mortgage-bond ratings.Stephen Buteau arrived April 22 with oversight of the agency’s mortgage-backed securities rating team in New York, reporting to chief executive Brian Grow. He replaces Kevin Dwyer, who resigned March 15 to join Ellington Management.Morningstar also hired Daniel Hall to fill a newly created role as a senior vice...



Improved Economics Seen for CLOs

Fri, 26 Apr 2019
A convergence of trends in the collateralized loan obligation market could point to a tightening of spreads.As new-deal volume picked up in March, issuers increasingly were able to complete deals they delayed amid a late-2018 drop in leveraged-loan prices — and thus clear out warehouse lines that had been under water since then. At the same time, managers including GSO Blackstone are planning to place the senior portions of upcoming...



Mosaic Explores New Asset Class

Fri, 26 Apr 2019
Solar Mosaic, an issuer of bonds backed by solar-power equipment loans, has begun originating home-improvement loans.The Oakland firm rolled out the new lending program in recent weeks, with funding from a $200 million warehouse line from Goldman Sachs. During meetings at LendIt’s annual conference in San Francisco on April 8-9, company executives told industry contacts that they may seek to securitize the accounts down the road.But Mosaic...



Personal-Loan Program Growing

Fri, 26 Apr 2019
Freedom Financial is planning an expansion of its fledgling securitization program.Indications are that the San Mateo, Calif., personal-loan originator will aim to complete three or four asset-backed bond deals this year. The offerings would total more than $1 billion.Included in that tally is a $408.4 million transaction Freedom priced on April 25 with Credit Suisse and SunTrust running the books.Freedom has a $2.5 billion loan portfolio. The...



Europe Embracing New-Look Deals

Fri, 26 Apr 2019
Industry participants are pointing to the April 15 pricing of a U.K. mortgage-bond deal from Nationwide Building Society as evidence that Europe’s structured-product industry is entering a busier period.That’s in part because the $1.3 billion transaction was one of the first designated as “simple, transparent and standardized.” It also was the first securitization benchmarked against the sterling overnight index average...



Credit-Card Losses Mount

Fri, 26 Apr 2019
Two key performance indicators for securitized credit-card accounts weakened in the first quarter.U.S. bankcard charge-offs jumped to an average of 3.08%, from 2.80% in the fourth quarter, according to an index maintained by Fitch. During the same period, 60-day delinquencies ticked up 7 bp to 1.15%. But Fitch senior director Herman Poon downplayed the increase in charge-offs, which have hovered at 2.80-3.32% since the fourth quarter of 2017....



Hunt Takes Swipe in Jennings Suit

Fri, 26 Apr 2019
A court filing claims the U.S. Justice Department sought the cooperation of former Jefferies mortgage-bond trader Jesse Litvak in building a criminal securities-fraud case against his boss at the bank, William Jennings.The assertion appears in documents Hunt Cos. submitted in U.S. District Court in New York on March 29 as part of a wrongful-termination lawsuit Jennings is pursuing against the firm — where he worked after Jefferies. In those...



Leveraged-Loan Pools Weaken

Fri, 26 Apr 2019
Asset quality among U.S. collateralized loan obligations worsened for a third straight month in February.The median weighted average rating factor — a key indicator of borrower health — deteriorated slightly while remaining at the equivalent of a “B2” grade, according to Moody’s. Median defaults remained at zero but are expected to have increased in March. That’s because those figures will take into account...



The Grapevine

Fri, 26 Apr 2019
MUFG has a new head of collateralized loan obligation trading. Anna Farbiszewska resigned from her post as a New York-based vice president at Deutsche Bank last week to take the position, which Sean Gibson vacated in February to join SMBC Nikko. Farbiszewska had worked at Deutsche since 2011.



The Grapevine

Fri, 26 Apr 2019
AllianceBernstein has hired an executive away from Och-Ziff Capital to oversee its efforts to begin securitizing broadly syndicated leveraged loans. Scott Macklin, who arrived in the firm’s New York office this week with the title of director of leveraged loans, had been leading research for Och-Ziff’s collateralized loan obligation program since 2013. He previously spent time at Scoggin Capital and Marathon Asset...



The Grapevine

Fri, 26 Apr 2019
Director Mike DePalma has left Cantor Fitzgerald’s mortgage-bond trading desk in New York to take a job at Credit Suisse, where he has worked twice before. DePalma had been at Cantor since February 2018. His previous stops at Credit Suisse were in 2011-2016 and 2001-2007, with a stint at Deutsche Bank in between.



The Grapevine

Fri, 26 Apr 2019
Managing director Luis Araneda left Santander’s New York office in March, about four months after he was removed from his post as head of U.S. asset-backed securities underwriting. Araneda had been at the bank since 2007. His former employers include Bank of America and PricewaterhouseCoopers.



The Grapevine

Fri, 26 Apr 2019
Fast-growing hedge fund operator ExodusPoint Capital hired Sandipan Deb this month to help oversee its portfolio of asset- and mortgage backed bonds. The New York-based Deb had been a portfolio manager at Midway Group since 2016, preceded by stops at Barclays, Lehman Brothers and Capital One.



The Grapevine

Fri, 26 Apr 2019
Startup collateralized loan obligation issuer AGL Credit hired two more staffers in recent weeks. Brian Pilko joined the New York operation as head of research from CIFC, where he worked since 2006. He earlier worked at Capital One. Also on board is senior deal structurer Sourav Sinha, who had overseen a portfolio of structured products at Mizuho since 2017. Before that, he was at...



The Grapevine

Fri, 26 Apr 2019
FirstKey Mortgage hired vice president Jack Jin away from Wells Fargo’s mortgage-bond underwriting team in March. Jin had been at Wells since 2011. As a member of FirstKey’s New York staff, he is helping to assemble a mix of home-loan securitizations the company offers (see article on Page 1).



The Grapevine

Fri, 26 Apr 2019
Brokerage firm STX Group has hired a head of trading for U.S. fixed-income instruments, including securitized products. Ryan Halvorson joined the operation’s Amsterdam headquarters this month from KeyBank, where he worked in New York since 2013 as a trader of agency mortgage bonds and Treasurys. Halvorson also has spent time at Franklin Templeton and...



The Grapevine

Fri, 26 Apr 2019
Personal lender Marlette Funding has added a member to its capital-markets team. Priya Desai joins the Wilmington, Del., company from the securitization-structuring team at Deutsche Bank, where she worked since 2013. Desai earlier worked at Shinkin Central Bank. Since launching its securitization program in 2016, Marlette has issued 10 deals totaling $3.2...



The Grapevine

Fri, 26 Apr 2019
Two traders have left Citigroup’s New York office, destination unknown. Senior asset-backed bond trader Christopher Dunne had arrived at the bank in 2010 from J.P. Morgan. Mortgage-bond trader Andrew Preiser had been on board since 2015.



The Grapevine

Fri, 26 Apr 2019
Buo Zhang left her post as a collateralized loan obligation trading and structuring specialist at Credit Suisse Asset Management in March to join Symphony Asset Management’s San Francisco investment team as an analyst. Zhang had been at Credit Suisse since 2007.



The Grapevine

Fri, 26 Apr 2019
CIFC Asset Management is seeking a New York-based analyst familiar with collateralized loan obligations and other structured products to propose investments for clients. Other duties include quantitative cashflow modeling and building relationships with asset managers and broker-dealers. Candidates can email resumes to talentacquisition@cifc.com.



Risk-Transfer Pros Wary of Asset Erosion

Fri, 12 Apr 2019
A jump in the number of low-income borrowers represented in agency risk-transfer pools is drawing a skeptical eye from market participants.At issue are the recent expansions of a Fannie Mae program called HomeReady and a Freddie Mac initiative dubbed Home Possible — both of which offer low-down-payment financing with reduced fees and relaxed mortgage-insurance requirements. As more of those accounts make their ways into the reference pools...



Barclays Readies Rare CP Conduit Launch

Fri, 12 Apr 2019
Barclays is launching a commercial-paper conduit.The vehicle, Sunderland Receivables, should start selling securities to U.S. investors any day now. It would be the first conduit to launch in the States since Guggenheim began operating its Great Bridge Capital in July 2014. Before that, the last conduit to form was Cantor Fitzgerald’s Institutional Secured Funding in May 2012.Sunderland is expected to function much like Barclays’ other...



IMN Quietly Swaps Out Buy-Side Leader

Fri, 12 Apr 2019
Information Management Network has suddenly replaced the head of its new investor group.Jim Muller had been overseeing the Fixed Income Investment Network since its launch in July 2018. He was dismissed without warning on March 15, with IMN bringing over David Blide from a publishing post at affiliate Euromoney Institutional Investor to take his place.Sources said the switch took place without the knowledge of FIIN’s board, which...



MBS Shops Eye Risk-Retention Loans

Fri, 12 Apr 2019
Mortgage-bond issuers are considering a new way to finance their risk-retention obligations.Instead of committing their own capital or raising equity from outside investors, as they do currently, lenders including Angel Oak Capital, Invictus Capital and Varde Partners may use borrowed money to retain 5% interests in their bond offerings as required under the Dodd-Frank Act. The strategy would be used to support deals backed by home loans that...



Tough Choice on CLO Refinancings

Fri, 12 Apr 2019
Refinancing activity in the collateralized loan obligation market recently has ticked up, even though some of the deals have resulted in higher funding costs for issuers.After two years of heavy volume, the CLO-refinance trade largely dried up after spreads widened in the fourth quarter. But the number of transactions has increased from just three in January to five in February and nine in March. Two have priced so far this month.Some issuers...



Ellington Expanding MBS Program

Fri, 12 Apr 2019
Ellington Financial is adding a second deal to its annual mortgage-bond issuance calendar.The Old Greenwich, Conn., company has securitized its non-qualified mortgages once per year since 2017. This year, it plans to complete one deal before midyear and another by yearend.Ellington expects its loan volume to total $400 million to $600 million this year. The company aggregates its accounts through a partnership with LendSure Mortgage.That San...



LendingClub Seeks Referral Partners

Fri, 12 Apr 2019
LendingClub is thinking about expanding its borrower-referral program.Since November, the online personal lender has been testing a service through which it refers borrowers who want to refinance their student loans to CommonBond. Now, it is seeking similar agreements with other lenders, with a focus on mortgages and newly originated auto loans.LendingClub receives undisclosed fees for its referrals. “Lending Club has its own data and...



CLO's Default a Non-Event

Fri, 12 Apr 2019
Investors are shrugging off the impending default of one of Patriarch Partners’ collateralized loan obligations.The $1.2 billion transaction, Zohar 3, is almost certain to miss a final balloon payment due on April 15. But buysiders saw that event coming for some time, and instead have focused on the possibility that principal cashflows still could arrive later.Why would Zohar 3 keep paying? After forcing the deal into bankruptcy, Patriarch...



Tax Refunds Fuel Subprime Autos

Fri, 12 Apr 2019
Performance indicators for securitized pools of subprime auto loans have improved for a second consecutive month.According to an index maintained by Fitch, losses among those accounts fell 112 bp to an annualized 8.57% during the month ended March 15, while delinquencies were down 52 bp to 5.03%. Such strengthening is typical at this time of year, as borrowers use their tax refunds to catch up on payments. There had been concerns the pattern...



REITs Bet on Risk-Transfer Bonds

Fri, 12 Apr 2019
REITs continue to add to their portfolios of risk-transfer bonds, thanks in large part to Fannie Mae’s move to make its deals eligible for Remic treatment.Among the 15 largest mortgage REITs, seven were holding agency risk-transfer bonds at the end of the first quarter — for a combined position of $4.5 billion, according to an April 7 report from Keefe, Bruyette &Woods. That was up from $4 billion at midyear 2018.As yields on...



Auto-Lease Plan Switches Gears

Fri, 12 Apr 2019
Auto-leasing company Fair is moving ahead with a planned asset-backed bond program, but with a different pool of receivables than initially expected.When the Santa Monica, Calif., company began talking to industry participants in 2018, indications were that its bonds would be backed exclusively by a pool of leases it had agreed to buy from Uber — with follow-up issues underpinned by accounts it continues to offer to the ride-sharing...



Peak 8 Bolstered by Hunt Takeover

Fri, 12 Apr 2019
Hunt Capital’s acquisition of Peak 8 Asset Management could position the combined company to securitize a mix of less-liquid assets.At a minimum, Hunt’s hefty balance sheet and access to investors are expected to contribute to an expansion of Peak 8’s core business of financing receivables that are too risky for most banks. Eventually, securitization could offer an exit strategy for some of those cashflows.Hunt said on March 25...



The Grapevine

Fri, 12 Apr 2019
Moody’s managing director Linda Stesney retired on March 29. Stesney had been on board since 1992, and since 2017 was working on a New York team that aims to improve the agency’s operational efficiency. She also spent time in a range of senior securitization roles, including the head positions for mortgage-bond ratings and servicer assessments, mortgage-bond surveillance, ratings of bonds backed by student loans and rental-car...



The Grapevine

Fri, 12 Apr 2019
Deutsche Bank added market veteran John Polito to its corporate-trust sales group in New York a few weeks ago. Polito had been working at BNY Mellon since 1999, most recently as an executive relationship manager focused on clients in the investment industry. He also has worked at Bear Stearns and Merrill Lynch. At Deutsche, Polito reports to sales chief Susan Levitt, who has been working to expand her staff since...



The Grapevine

Fri, 12 Apr 2019
Richard Rizzo has left his post as BMO Capital’s head collateralized loan obligation trader, with sources suggesting that he is headed to a buyside firm. Rizzo had just joined Bank of Montreal’s New York office via the bank’s September purchase of KGS-Alpha Capital where he worked since 2015. He earlier worked at Deutsche Bank and Merrill...



The Grapevine

Fri, 12 Apr 2019
Matthew Zhang has left Performance Trust’s structured-product underwriting unit to join Mesirow Financial as a New York-based managing director focused on trading and structuring of agency mortgage bonds. At Performance Trust, where he worked since March 2018, Zhang worked on both agency and non-agency deals. He also has spent time at BNP Paribas, Deutsche Bank, UBS and Fannie Mae. At Mesirow, Zhang reports to Ali...



The Grapevine

Fri, 12 Apr 2019
Tim Johnston has joined MUFG’s securitization team in New York as a vice president handling financial-modeling, deal-origination and risk-analysis duties. Johnston had been working at Scotiabank since 2012.



The Grapevine

Fri, 12 Apr 2019
Former Cross River Bank executive Ray Yang has taken a job at Credit Suisse as a New York-based director responsible for offering warehouse lines to online loan originators. Yang was employed from 2016 until this March as head of warehouse lending, whole-loan trading and risk modeling for Cross River’s activities in the online-lending industry. Before that, he worked at Morgan...



The Grapevine

Fri, 12 Apr 2019
Younes Lahlou returned to Natixis in March as a risk-management specialist in the bank’s European capital-markets group in Paris. Lahlou had been at CDG Capital in Casablanca, Morocco, since 2012. Before that, he structured asset- and mortgage-backed bond deals in his first stint at Natixis.



The Grapevine

Fri, 12 Apr 2019
Bank of America has added a vice president to its asset-backed securities banking team in New York. Victoria Mason arrived last week from RBC, where she worked since 2013.



The Grapevine

Fri, 12 Apr 2019
Former Citigroup staffer Andrea Blattman has resurfaced in the financial-services unit of market-research firm NPD Group in New York. Blattman had been on the sidelines since leaving a risk-analyst post Citi in 2014. She also has worked in the structured-finance groups John W. Loofbourrow Associates, ING, Banco Santander and Prudential.



The Grapevine

Fri, 12 Apr 2019
Peter Ostrem has taken the top capital-markets post at Divvy, a company that automates expense reports for clients. Ostrem, who is stationed in Bryn Mawr, Pa., had been working in a similar capacity at invoice-factoring company BlueVine since early 2018. He led the personal-loan unit at PayPal before that, and earlier led Goldman Sachs’ collateralized debt obligation-underwriting...



Market Pros Shrug Off Issuance Plunge

Fri, 05 Apr 2019
Despite a steep drop in the supply of new structured products, industry professionals insist market conditions remain healthy by post-credit-crisis standards.According to Asset-Backed Alert’s ABS Database, $185.8 billion of asset-backed securities, collateralized loan obligations and residential and commercial mortgage bonds priced worldwide during the January-March period. That marked a 13% drop from the year-earlier tally of $214.2...



Subprime Card Lender Readying Program

Fri, 05 Apr 2019
Subprime credit-card lender Deserve is laying the groundwork for an inaugural securitization.Sources said the Menlo Park, Calif., company plans to start with a deal of at least $125 million that could hit the market by yearend. From there, it would aim to float one or two transactions annually.While the first offering might be unrated, it’s likely subsequent ones would carry ratings. In preparation for the push, Deserve officials recently...



AllianceBernstein Seeks Larger CLO Presence

Fri, 05 Apr 2019
AllianceBernstein is getting into the business of securitizing broadly syndicated leveraged loans.The effort is in the early stages, with AllianceBernstein poised to hire a senior portfolio manager to help oversee the offerings after several months of interviews. The program would complement a business in which the New York asset manager already issues collateralized loan obligations backed by loans it writes to mid-size businesses.While details...



Bank Growth Buoys LendIt Event

Fri, 05 Apr 2019
Despite growing pains for online lenders, LendIt has sustained interest in its annual conference by placing more emphasis on banks’ origination activities.About 5,000 people are expected to attend “LendIt Fintech USA 2019” on April 8-9 at the Moscone Center in San Francisco. That roughly matches the headcount for the 2017 and 2018 versions of the event, despite the failures of dozens of originators.Indeed, lenders including...



Loan Bounce Aids CLO Market

Fri, 05 Apr 2019
The collateralized loan obligation market is heading into the second quarter on an upswing.The March 25-29 period saw the second highest weekly deal volume of the year, with 11 transactions totaling $5.4 billion having priced. At the same time, a gradual spread-widening trend appeared to pause. And the factors supporting those conditions largely remain in place.Among them are rising oil prices, which helped reverse a slide in leveraged-loan...



MUFG Hiring Securitization Pros

Fri, 05 Apr 2019
MUFG is beefing up the structured-finance capabilities of a unit that arranges funding for U.S. financial institutions.To that end, the bank’s New York financial institutions group is seeking at least five securitization professionals who would advise clients including lenders and leasing companies. Sources said the recruiting effort is part of a push to better compete with rivals including Bank of America and J.P. Morgan.The move also...



Accused Traders Point at Peers

Fri, 05 Apr 2019
Former Nomura traders Michael Gramins and Ross Shapiro are again asking that securities-fraud charges against them be dismissed.In a March 12 filing in U.S. District Court in Hartford, Gramins and Shapiro cite examples of “deceptive negotiating tactics” in trades both by buyers and sellers — arguing that their alleged violations are common in the securitization industry.The defendants initially were tried in 2017 for allegedly...



Tax Refunds Help Personal Loans

Fri, 05 Apr 2019
The performance of personal loans in securitization pools improved in March, as borrowers used income-tax refunds to catch up on payments.According to an index maintained by Kroll, losses among so-called Tier 3 loans — originated to the weakest borrowers — fell 226 bp to an annualized 23.82%, while delinquencies ticked down 14 bp to 4.48%. The Tier 3 category encompasses loans written by Avant and Lending Club to borrowers with credit...



New Venture for Industry Pros

Fri, 05 Apr 2019
Two former Lending Club executives have teamed up with a capital-markets professional to start a specialty-finance business that could fund itself through securitization.The San Francisco startup, called Wisetack, is led by chief executive Bobby Tzekin, former head of product management at Lending Club; chief technology officer Mykola Klymenko, who held a senior technology role at the online lender; and vice president Katya Baron, who previously...



Carvana Maps Next ABS Offering

Fri, 05 Apr 2019
Online auto dealer Carvana has begun work on its next securitization, having completed its first broadly offered deal.Sources said the Tempe, Ariz., company is eying the third quarter for a follow-up transaction, and then would settle into an issuance routine of perhaps 1-2 deals per year. The next offering would be similar in size to the $339 million securitization Carvana priced on March 20, with Amherst Pierpont, Citigroup, Credit Suisse and...



The Grapevine

Fri, 05 Apr 2019
Michael Binz will leave his post as head of business development and sales for S&P’s structured-finance division today. Binz had joined S&P’s New York office in 1998 as an analyst, and helped rebuild the agency’s reputation after the credit crisis as chief credit officer and chief analytical manager for North America and South America. He took his most recent role in 2015. Earlier, Binz worked at GE Capital. Sources said he...



The Grapevine

Fri, 05 Apr 2019
Senior collateralized loan obligation trader Matthew Matson has left Deutsche Bank to join Mizuho. Matson had been employed in Deutsche’s New York office since 2009. At Mizuho, he is helping to fill a gap created with the February exit of Amit Khurana — who has yet to land elsewhere. Deutsche runs one of the busier trading desks in the CLO market, with a staff that includes Sebastien Cottrell and Anna Farbiszewska in New York and John...



The Grapevine

Fri, 05 Apr 2019
CVC Credit has hired an operations-reporting analyst supporting the company’s CLO issuance. Mary-Ellen Santana arrived in the firm’s New York of-fice this month from Deloitte, where she worked since 2016 as part of a team that advises CLO issuers. She also has worked at General Electric. CVC also is a CLO investor. CORRECTION (4/12/19): This article has been revised. The original version incorrectly described the duties of CVC Credit staffer...



The Grapevine

Fri, 05 Apr 2019
Brown Brothers Harriman has added an analyst to its asset-backed bond investment team in New York. Ethan Sufian arrived in March from Rothschild & Co., where he had worked since 2016. He also has spent time at Deutsche Bank.



The Grapevine

Fri, 05 Apr 2019
Sarah Smith has joined Dechert’s London office as a partner focusing on a variety of asset-backed securities and commercial-mortgage transactions. Smith had been employed at Akin Gump from 2014 until this January. She also worked at Bingham McCutchen and Sidley Austin.



The Grapevine

Fri, 05 Apr 2019
Longtime mortgage professional Greg Richardson joined home-loan exchange operator Maxex in March, assuming a Charlotte post as a managing director. The assignment has Richardson working closely with companies that trade whole loans through Maxex’s service, including those that fund themselves through securitization. He had been working since 2015 at Movement Mortgage, with an eye toward eventually setting up a securitization program. Before...



The Grapevine

Fri, 05 Apr 2019
Freedom Truck Finance is seeking a risk analyst whose duties would include tasks related to a securitization program the company is planning. The Dallas-based recruit would help build an issuing infrastructure, for example, and would interact with rating agencies and investors. He or she would work alongside Freedom capital-markets chief Andy Glenn.



The Grapevine

Fri, 05 Apr 2019
MidOcean Partners has hired an analyst for its CLO issuing team. Tyler Deuel arrived in the firm’s New York office in March from Ernst & Young, where he worked since 2016 with a focus on assigning values to asset-backed bonds, mortgage securities and collateralized loan obligations. MidOcean’s CLO-issuing program has produced nine deals totaling $4.1 billion since...



The Grapevine

Fri, 05 Apr 2019
Verizon is seeking a treasury manager who would work in Basking Ridge, N.J., with a focus on the company’s mobile-device payment securitizations. The recruit’s duties would include analytics, cashflow modeling, accounting, servicing and maintaining relationships with secured-lending partners. Verizon is focusing on candidates with at least six years of experience. To apply, click on “careers” at verizon.com and search for...



Arbitrage Shortage Squeezing CLO Fees

Fri, 29 Mar 2019
Collateralized loan obligation underwriters, issuers and attorneys are attempting to foster dealmaking activity by cutting their fees.The concessions, intended as a temporary move to make new CLOs economical in the face of diminished arbitrage opportunities, have been greatest among smaller parties. A less-active underwriter that may have charged the equivalent of 50 bp of a deal’s face value in 2018, for example, might accept as little as...



Issuers Mull Home-Equity Loan Programs

Fri, 29 Mar 2019
Bonds backed by home-equity loans could be poised for a comeback.The asset class, which hadn’t produced an offering since the credit crisis, recently began to show signs of life with the launch of an issuance program by FirstKey Mortgage. Now comes word that Bayview Financial, Morgan Stanley and New Residential Investment are either preparing offerings or are considering such moves.The efforts coincide with growth in the availability of...



Ambitious Morningstar Plans Hiring Blitz

Fri, 29 Mar 2019
Morningstar is expanding its structured-finance rating and technology groups.The effort calls for the additions of more than 25 employees, including a vice president who would grade asset-backed bond deals and an associate vice president assigned to collateralized loan obligations. On the technology side, the hires would include as many as 10 professionals — many of whom would work on a recently launched effort to evaluate transactions...



Toyota Considers Floorplan Program

Fri, 29 Mar 2019
Toyota Motor Credit is taking a hard look at securitizing its dealer-floorplan loans.The effort is in the exploratory stages, but could begin to produce bond deals approaching $1 billion apiece by yearend. Discussions already are underway with underwriters and investors, with an emphasis on determining the feasibility of the offerings.Toyota also is seeking a dealer-credit analyst in Plano, Texas, who would play a leading role in working with...



Apple Card Looms for ABS Buyers

Fri, 29 Mar 2019
There’s talk among asset-backed bond investors that Goldman Sachs is considering securitization as a funding source for the credit-card business it’s launching with Apple.On March 25, Apple chief executive Tim Cook unveiled the company-branded card, dubbed Apple Card, saying it would become available in the coming months.As Apple’s partner, Goldman will service and finance the accounts via its online bank, Marcus. While Goldman...



Mexico Program In the Works

Fri, 29 Mar 2019
A company that writes small-business loans and equipment leases in Mexico is planning a securitization program.Credijusto would start by selling bonds underpinned by its loans, with a target date in the fourth quarter of 2019 or the first quarter of 2020. Lease-backed offerings would come later.Credijusto has yet to decide where it would distribute the deals. The Mexico City company might start by offering its securities at home.But the...



Cross River Covers for Staff Exits

Fri, 29 Mar 2019
Cross River Bank is signaling that a spate of employee resignations won’t interrupt its activities in the online-lending industry.Chief financial officer Geoffrey Kott left this month to join personal lender Affirm, following the February exits of capital-markets chief Gene Ostrovsky for startup education lender Meritize and associate general counsel Jim Lee. Also gone are business strategist Brooke Reid and warehouse-lending head Ray Yang,...



New Life for Covered-Bond Plan

Fri, 29 Mar 2019
A move by the Trump Administration to reduce the footprints of Fannie Mae and Freddie Mac is reviving interest in legislation to create a U.S. covered-bond market.The White House issued a statement on March 27 calling for an end to conservatorship for Fannie and Freddie, while ordering the Treasury Department and HUD to craft policies to “promote competition in the housing-finance market.” The announcement buoyed mortgage-industry...



Mortgage Exec Running for Congress

Fri, 29 Mar 2019
Frank Pallotta, who once played a key role in Morgan Stanley’s mortgage-conduit operation, will seek the Republican nomination for a New Jersey Congressional seat formerly occupied by Rep. Scott Garrett.After exploring the possibility of a run for some time, Pallotta has decided to enter the 2020 race in the state’s 5th Congressional District and is expected to announce his candidacy in May. The seat is currently held by Democrat Rep....



STS Agents Receive Go-Ahead

Fri, 29 Mar 2019
After months in limbo, two companies have received approval to label asset-backed bonds in Europe as “simple, transparent and standardized.”The not-for-profit Prime Collateralised Securities got the go-ahead from U.K. Financial Conduct Authority last week, with Germany’s Federal Financial Supervisory Authority giving the nod to True Sale International earlier this month.Both operations already have applied the so-called STS...



CP Market Ends Roller-Coaster Ride

Fri, 29 Mar 2019
The size of the commercial-paper conduit market appears to have steadied.The volume of conduit securities in the hands of investors worldwide averaged $332.2 billion during the fourth quarter. That was down a mere 0.4% from $333.5 billion a year earlier, according to Moody’s, and industry participants are taking the lack of change as a sign that they finally have worked through a tumultuous period that followed the credit crisis.Indeed, the...



The Grapevine

Fri, 29 Mar 2019
Managing director Rick Koppenhaver is no longer employed at RBC Capital. Koppenhaver, who specializes in deals backed by auto and equipment receivables, had been working in the bank’s New York office since 2011. He was at Nomura before that, preceded by a stop at Deutsche Bank from 2001-2010.



The Grapevine

Fri, 29 Mar 2019
This year’s issuance slowdown hasn’t disrupted the underwriter league tables. Bank of America, Citigroup and J.P. Morgan are finishing the first quarter in a tight race for first place among bookrunners of asset-backed securities, collateralized loan obligations and residential and commercial mortgage bonds worldwide — with just a few hundred million dollars of deal volume separating them, according to preliminary figures from...



The Grapevine

Fri, 29 Mar 2019
Guggenheim has added an analyst to its mortgage-bond investment staff in Santa Monica, Calif. Ryon Aguirre had been analyzing home-loan securities at Kroll since 2016. He previously worked in finance for the U.S. Navy.



The Grapevine

Fri, 29 Mar 2019
S&P has hired a head of business development for Europe, the Middle East and Africa. Lynn Maxwell, whose coverage areas include structured finance and a mix of other businesses, arrived in the agency’s London office in the past few weeks. Maxwell most recently worked as head of structured-finance strategy at HSBC, where she was employed from 2005 to August 2018. She also spent some time as head of the bank’s securitization activities...



The Grapevine

Fri, 29 Mar 2019
Luke Abraham left his job as a mortgage-bond analyst at Freddie Mac last week to join the New York office of insurer Tokio Marine, where he analyzes investments in structured products. Abraham had worked at Freddie since 2014, most recently with a focus on assembling the agency’s risk-transfer bond deals.



The Grapevine

Fri, 29 Mar 2019
Katten Muchin has hired an associate with experience in collateralized loan obligations and asset-backed securities. Osahon Okundaye joined the firm’s New York office this month from Schulte Roth, where he worked since 2017.



The Grapevine

Fri, 29 Mar 2019
Paul Richardson has left KeyBank’s securitization-banking team to take a capital-markets position at LTC Global, a Fort Myers, Fla., company that offers financing to long-term care insurance agents and buys their policies. In his new role, Richardson is tasked with overseeing relationships with banks that lend money to LTC. It’s unclear if his addition last week reflects plans by the company to use securitization as a funding...



The Grapevine

Fri, 29 Mar 2019
Zhengyuan Lu has left the New York office of Silicon Valley Bank, where he handled financing for a mix of online loan originators. Sources said Lu is headed to a mutual-fund unit at Neuberger Berman that invests in the same types of receivables. That group was launched in 2018 by Peter Sterling. Lu had joined Silicon Valley Bank in May 2018 from Victory Park Capital. He previously spent time at OnDeck Capital, Gleacher & Co., Keefe Bruyette &...



Busy Market Brings Healthier Job Prospects

Fri, 22 Mar 2019
The employment outlook for structured-product professionals is more robust than it has been in years.Even amid a modest retreat in the overall flow of U.S. asset-backed securities, mortgage bonds and collateralized loan obligations, issuers, investors and underwriters alike believe market conditions remain strong enough to support widespread staff buildups. Compensation is rising as well.A managing director on a large deal-origination desk, for...



GSAM Setting Up CLO-Issuance Program

Fri, 22 Mar 2019
Goldman Sachs Asset Management is set to begin issuing collateralized loan obligations.GSAM so far has set up an issuance vehicle dubbed Battery Park CLO, and has assembled a management team led by former Eaton Vance Management executive Peter Campo and longtime employees David Kim and Ken Yang. While the timing of an initial deal is uncertain, all signs point to routine issuance.Goldman has long experience in the CLO market, both as an investor...



QM Impasse Threatens Agency Pullback

Fri, 22 Mar 2019
Mortgage-finance professionals are growing concerned that originators of non-qualified loans won’t have the capacity for an anticipated uptick in business.At issue are the Trump Administration’s efforts to reduce the footprints of Fannie Mae and Freddie Mac, possibly by eliminating a measure that enables the agencies to buy and securitize loans that don’t meet the Consumer Financial Protection Bureau’s...



Moves Favor Private Student Loans

Fri, 22 Mar 2019
An effort is underway to reduce or even eliminate the U.S. Department of Education’s Direct PLUS education-loan program — a move that would dramatically increase the origination and securitization of private student loans.The initiative is described as a rare instance in which Congressional Democrats and the Trump Administration could find common ground. On March 18, President Trump issued a 10-point plan to revise the Higher...



Brean Trims Brokerage Staff

Fri, 22 Mar 2019
Broker-dealer Brean Capital laid off six staffers this week, in part to eliminate overlaps created by its merger with Hunt Financial Securities.Among those let go was managing director James Showers, a structured-product sales specialist who had joined Hunt in 2017 from Stifel Nicolaus. An administrative employee who worked at Hunt also was dismissed.The other individuals — a sales professional, a corporate-bond trader, a trading-support...



Sierra Team Continues to Shrink

Fri, 22 Mar 2019
With losses among the company’s securitized receivables approaching critical levels, another key executive has left subprime auto lender Sierra Auto Finance.David Keene, who had served as head of compliance since arriving from Citigroup in 2013, stepped down last week. His exit followed the transfer of Sierra’s servicing operations to First Investors Financial on March 2.It also came after sales head Patrick Hansen left in December...



Funding Sought for Cash Advances

Fri, 22 Mar 2019
A startup that offers cash advances to a range of borrowers is laying the groundwork for a securitization program.Qwil currently funds its receivables through a $100 million line of credit from an undisclosed family office, and likely is at least a year away from offering an asset-backed bond deal. But the San Francisco operation is talking to additional warehouse lenders, and has signaled expectations that it will need more funding as its...



Jennings Lawsuit Gets Go-Ahead

Fri, 22 Mar 2019
A portion of William Jennings’ wrongful-termination lawsuit against Hunt Cos. will proceed to trial.U.S. District Court Judge John Keenan in New York ruled on March 14 that Jennings’ breach of contract complaint will go to a jury. At the same time, Keenan dismissed with prejudice claims that Hunt violated good-faith, fair-dealing and labor laws and should be required to pay punitive damages.Hunt still could avoid a trial if it settles...



CLO Collateral Softens Again

Fri, 22 Mar 2019
Asset quality for collateralized loan obligations issued in the U.S. after the credit crisis continued to weaken in January.The median weighted average rating factor — a key indicator of borrower health — deteriorated slightly but remained at the equivalent of a “B2” rating, according to Moody’s. Holdings of loans rated “Caa1” or lower rose 18 bp to a median 3.60%, driven by a 44 bp increase to 6.14%...



Foreigners Flock to China Conference

Fri, 22 Mar 2019
A swath of industry participants will be represented at the “Global Investors’ Conference on Securitisation in China,” including many from outside China.The event, sponsored by China Asset-Backed Securities Forum of 100 (CAF 100) and Information Management Network, takes place March 30-31 at the Kerry Hotel in Beijing. Some 750 individuals have registered.Among them are 30 major investors from the U.S. and Europe, including Ares...



Japan Rule Weighs on CLO Demand

Fri, 22 Mar 2019
It is becoming increasingly apparent that Japan’s new risk-retention rule will prompt smaller banks in the country to reduce their purchases of collateralized loan obligations.When the Financial Services Agency released the measure on March 15, initial predictions were that it would have little effect on CLO-buying habits — thanks to a built-in exemption for deals whose collateral wasn’t “inappropriately formed.” But...



SEC Action Could Stall Volkswagen

Fri, 22 Mar 2019
The SEC’s fraud complaint against Volkswagen could keep the automaker out of the U.S. structured-finance market for the foreseeable future.The lawsuit, filed March 15 in U.S. District Court in San Francisco, alleges that Volkswagen lied to investors when it sold $13 billion of asset-backed and corporate bonds while simultaneously installing illegal emissions-rigging software in its diesel vehicles.Indications are that the company currently...



CLO Issuer Braves Fragile Market

Fri, 22 Mar 2019
Partners Group is shopping its latest collateralized loan obligation, at a time when the overall supply of new deals has diminished.The $405.3 million Pikes Peak CLO 3 is expected to price by the end of the month with Credit Suisse running the books. Partners also has established a warehouse line where it is accumulating collateral for a follow-up deal that could hit the market late in the third quarter.Partners is a relatively new issuer in the...



The Grapevine

Fri, 22 Mar 2019
Rob Steelman is taking the top portfolio-management and trading position at AGL Credit, a new hedge fund manager and issuer of collateralized loan obligations that Peter Gleysteen is setting up in partnership with private equity pioneer Thomas H. Lee. Steelman most recently worked from 2006 to November 2018 as a researcher at CIFC — another CLO issuer founded by Gleysteen. He also has worked at ABN Amro, Janney Montgomery Scott, J.P....



The Grapevine

Fri, 22 Mar 2019
Brian Yorke has left collateralized loan obligation issuer Bardin Hill Investment, apparently to join another asset manager. Yorke, who held the titles of head trader and senior portfolio manager, had arrived in 2006 from CLO issuer Seix Investment. He also has worked at Prudential. Bardin Hill changed its name from Halcyon Capital in an October management shift in which Jason Dillow replaced retiring chief executive John Bader and TPG Sixth...



The Grapevine

Fri, 22 Mar 2019
Mortgage-bond trader Susan Zaferos joined the New York office of brokerage firm Cabrera Capital on March 16 as a senior vice president. Zaferos had been at Loop Capital since 2015. Her prior employers include R. Seelaus & Co, Fidelity Investments and Wells Fargo.



The Grapevine

Fri, 22 Mar 2019
Laurence Kubli joined Muzinich & Co.’s Zurich office this month as a senior portfolio manager focused on asset-backed securities. Kubli had been working at GAM Investment since 2009, but saw her job eliminated during a December restructuring that among other things merged that firm’s asset- and mortgage-backed bond investment teams. She also has worked at Julius Baer, Clariden Leu, Man Investments, Merrill Lynch and Credit...



The Grapevine

Fri, 22 Mar 2019
Wilson Pringle has left Hunt Cos., destination unknown. Pringle had joined the company’s Summit, N.J., office in January 2018 to oversee operations for its mortgage-conduit business. He previously worked at Oak Circle Capital and HazelTree Fund Services.



The Grapevine

Fri, 22 Mar 2019
MUFG has added a member to its collateralized loan obligation structuring team in New York. Mahesh Assomull had been working at National Australia Bank since 2008, for much of the time handling tasks related to structured products. He earlier worked in CLO structuring at Morgan Stanley and Natixis.



The Grapevine

Fri, 22 Mar 2019
Och-Ziff Capital has added an analyst to its structured credit product investment team. Daniel Spencer arrived at the New York fund operator last week with a focus on arranging privately placed deals backed by aircraft receivables. He had been part of the securitization-banking group at Citigroup since February 2018, and before that was at Ernst & Young.



The Grapevine

Fri, 22 Mar 2019
Christopher Esposito landed in Social Finance’s New York office last week as a director in charge of assigning values to the personal loans, student loans and mortgages the company securitizes. Esposito has been working as a consultant to Millennium Management since September, following a stint on a managing director at Duff & Phelps. He also has spent time at FirstKey Mortgage and...



The Grapevine

Fri, 22 Mar 2019
Mortgage due-diligence shop Infinity IPS has add two senior vice presidents to its operations team. Pam Sloger and Mike Spadacino joined the firm a couple weeks ago. Sloger, who is stationed in Omaha, Neb., was at American Mortgage Consultants since 2008. Before that, she worked at Clayton Holdings. Spadacino, in Tampa, most recently was at Clayton from 2002 to November 2018. His former employers also include Litchfield...



Bondholders Fret Over Smaller Tax Refunds

Fri, 15 Mar 2019
Investors in deals backed by personal loans and subprime auto loans are worried that shrinking tax refunds could hurt the performance of their holdings.The nervousness centers around the potential disruption of an annual pattern in which borrowers have used their income-tax returns to catch up on bills. Indeed, delinquencies almost always have fallen in securitization pools during the April-June stretch.With the average federal refund having...



Mortgage-Bond Pro Banned From Industry

Fri, 15 Mar 2019
The SEC has imposed a ban on mortgage-backed securities salesman Frank Dinucci for violating the terms of a plea agreement in which he admitted to misquoting bond prices as an employee of Nomura.The regulator cited several factors in slapping Dinucci with the unusually punitive sanction, which bars him from working in the securities industry indefinitely. To start, it claims he breached his 2015 plea deal with federal prosecutors by taking a job...



RBC Adds Thrust to Repurchase Campaign

Fri, 15 Mar 2019
RBC is further increasing the volume of repurchase agreements that it writes against mortgage products, and possibly other assets.Sources said RBC has become one of the more active players in the sector in recent months, in large part by emphasizing contracts tied to loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” guidelines. Now, the bank has hired market veteran Olivier D’Meza...



New FICO Score Raising Eyebrows

Fri, 15 Mar 2019
Rating agencies are casting a wary eye on a new credit-scoring product from Fair Isaac Corp.Dubbed “UltraFICO,” the new reports would include a score based on a borrower’s checking, savings and money-market account activity. The added score is designed to provide additional information about individuals who have little or no credit histories, or those seeking alternative ways to measure their creditworthiness.But the score is...



CLO Supply Tapering Off

Fri, 15 Mar 2019
The supply of new collateralized loan obligations has slowed.After $13 billion of offerings priced in the U.S. in February, industry participants thought the market might be gaining momentum. But dealflow shrank to $3.3 billion during the March 1-13 period, prompting talk of an issuance lull that could last months.The March total was down from $4.8 billion a year earlier.The weaker outlook is based in part on a reduced supply of collateral loans...



New Leader for Dechert Team

Fri, 15 Mar 2019
Dechert has appointed partner Matthew Hays to head its asset-backed bond practice.In his new role, the Chicago-based Hays is tasked with spearheading efforts by Dechert to work as issuer and underwriter counsel in a broader range of asset classes — a push that began with his April 2018 arrival from Kirkland & Ellis. He takes over for Malcolm “Mac” Dorris, who is continuing as a partner in New York.Dorris has been on board at...



Finance Venture Explores Offering

Fri, 15 Mar 2019
The developer of a personal-finance app is trying to put together a securitization.Tally Technologies’ offering would be backed by lines of credit the San Francisco company offers to users of its mobile software. A deal totaling $50 million to $100 million could hit the market by yearend, likely without ratings.Tally’s app is designed to help users manage their credit cards, with its lines of credit offering them a way to pay off...



Selene Parts Ways With Top Executive

Fri, 15 Mar 2019
Pretium Partners’ pending purchase of Lewis Ranieri’s Selene Holdings has led to the departure of Selene’s chief executive.Joe Pensabene, who arrived in 2015 from Bayview Asset Management, left Selene around the end of February. He has since rejoined Bayview as head of lending operations within the company’s loan-servicing division.Houston-based Selene, which agreed in October to be purchased by Pretium, has appointed...



Harley Eyes Return to ABS Market

Fri, 15 Mar 2019
Look for Harley-Davidson to resume issuing asset-backed bonds.The Milwaukee company hasn’t tapped the market since pricing a $300 million offering in June 2016, with J.P. Morgan and Wells Fargo running the books. Until that point, it had been good for at least one motorcycle-loan securitization per year going back to 1995.Since exiting the market, Harley has funded loan originations via a credit line from a syndicate of banks. But several...



The Grapevine

Fri, 15 Mar 2019
Brigade Capital has hired a portfolio manager with experience in structured products. Gaurav Tejwani arrived at the New York debt-fund operator this month from River Birch Capital, where he worked since 2016. Tejwani also counts Pine River Capital, Barclays and Lehman Brothers as former employers. Brigade’s investments include collateralized loan obligations and commercial mortgage bonds. The $20 billion firm also is a CLO...



The Grapevine

Fri, 15 Mar 2019
Kevin Dwyer’s destination has come to light. Dwyer, who will leave his post as head of Morningstar’s mortgage-bond rating unit today, is headed to hedge fund operator Ellington Management. That Old Greenwich, Conn., firm, led by Michael Vranos, counts an array of structured products among its holdings. Morningstar, meanwhile, is seeking a replacement with at least 10 years of...



The Grapevine

Fri, 15 Mar 2019
Deputy chief investment officer Deva Mishra has left New York insurer Global Atlantic Financial, where his areas of focus included asset- and mortgage-backed bonds. Mishra had arrived at Global Atlantic in 2013 from a buy-side post at Goldman Sachs, and before that was at Credit Suisse.



The Grapevine

Fri, 15 Mar 2019
Morgan Stanley has added an executive director to its structured-product sales desk in London. Zain Ghani arrived in recent weeks from HSBC, where he had worked since 2016. Ghani also has spent time at Credit Suisse.



The Grapevine

Fri, 15 Mar 2019
Oliver Gehbauer has returned to Deutsche Bank’s London office. Gehbauer, a director, in part focuses on helping a mix of loan buyers finance their purchases through securitization. He had been at Finlytics since January 2018. Before that, he was a consultant and spent time at Aragon Housing, Lloyds Banking, Credit Suisse and Citigroup — preceded by his first job in finance at Deutsche from 2000-2003. His new position appears to be the...



The Grapevine

Fri, 15 Mar 2019
Capital One has added another securitization specialist to its financial-institutions group, which offers warehouse lines and other forms of financing to lenders. Stephano Eckardt joined the company’s New York office this month from the asset-backed securities banking team at MUFG, where he worked since 2016. Before that, Eckardt was at Ernst & Young. CapOne has been expanding its financial-institutions group since...



The Grapevine

Fri, 15 Mar 2019
Moody’s Analytics has hired a New York-based product-development specialist with a focus on structured products. Nicole Lawrence had been handling client-development duties at data company T-Rex Group since 2017, and before that played buy-side roles at B Asset Manager and PPM America. Lawrence also has worked at Moody’s and PricewaterhouseCoopers.



The Grapevine

Fri, 15 Mar 2019
Tetragon Financial enlisted a collateralized loan obligation analyst in February, installing Matthew Scheer as part of its New York investment team. Scheer had been working on CLO-structuring side at Morgan Stanley since 2016. In addition to buying CLO securities, the $28 billion Tetragon routinely issues through affiliate LCM Asset Management.



The Grapevine

Fri, 15 Mar 2019
Brian Murphy has joined Arbor Realty of Uniondale, N.Y., to oversee asset-pricing and analytics functions for a new unit that offers financing to rental-home buyers — with securitization as a funding strategy. Murphy had been at CoreVest Finance. He reports to chief investment officer Steven Katz.



The Grapevine

Fri, 15 Mar 2019
Kroll has elevated Caitlin Colvin to head of investor relations for its structured-finance unit. Colvin begins her new assignment as a managing director on April 1, reporting to senior managing director Kate Kennedy. Colvin has worked at Kroll since 2015. Before that, she was an attorney at Thompson Hine and Clifford Chance.



Arbor Expanding Into Rental-Home Deals

Fri, 08 Mar 2019
Arbor Realty is looking at securitization to fund a move into rental-home loans.The REIT, best known as a commercial-mortgage lender, is just beginning to take steps to offer financing to large rental-home buyers — and is speaking to warehouse lenders that would supply financing for both bridge loans and long-term mortgages. But the Uniondale, N.Y., operation already is discussing potential bond-underwriting assignments while indicating...



Relief Still Elusive for Small CLO Issuers

Fri, 08 Mar 2019
It turns out an exemption from the Dodd-Frank Act’s risk-retention rule wasn’t enough to bring smaller collateralized loan obligation issuers back into the market.Leading up to the regulation’s December 2016 implementation, some two dozen existing issuers were sidelined as investors questioned whether they could afford to comply. But it has been a year since the Loan Syndications & Trading Association won a legal battle...



AIG Stepping Up, Diversifying MBS Output

Fri, 08 Mar 2019
AIG is planning an expansion of its mortgage-bond program, potentially positioning itself as a leading issuer in the sector.The insurer, which already sells bonds backed by fixed-rate jumbo loans, would start by offering securities backed by adjustable-rate jumbo accounts that meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards. The first of those deals could come before midyear.AIG also is looking at...



Wamco MBS Program Presses Ahead

Fri, 08 Mar 2019
Western Asset Management is letting investors know it still sees itself as a routine issuer of bonds backed by home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards.The message is intended largely to counter suspicions that Western Asset Management’s efforts might be interrupted by the yearend departure of the executive overseeing the non-qualified mortgage program, Anup...



Role of Deal Agent Back On the Table

Fri, 08 Mar 2019
As more issuers plan to securitize home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards, there’s renewed interest in the idea of enlisting deal agents to help enforce investor protections.Although the concept first was floated by the Structured Finance Industry Group in 2015, there long was little movement by issuers to hire deal agents, whose principal role would be...



Japan Retention Rule Imminent

Fri, 08 Mar 2019
Japan’s Financial Services Agency is expected to release its new risk-retention rule next week.The measure, proposed in December, likely would take effect March 31. Its centerpiece is a restriction under which banks in the nation typically would be allowed to invest in structured products only when issuers keep 5% stakes in the deals.That condition would mainly affect CLO buyers, given the outsized roles Japanese financial institutions play...



Omega Alumni Seek Bigger Presence

Fri, 08 Mar 2019
Hedge fund operator OCO Capital, which spun off from Omega Advisors in late 2018, is positioning itself as a bigger issuer and buyer of structured products.As an issuer, the New York firm’s deals would be backed by personal loans it has been purchasing through its OCO Capital Fund. It privately placed an unrated bond offering shortly before separating from Omega, and on Feb. 1 notified the SEC that it would return to market via a trust...



Weakest Loans See Major Erosion

Fri, 08 Mar 2019
Losses increased sharply in February among securitized pools of online personal loans originated to the weakest borrowers.According to an index maintained by Kroll, so-called Tier 3 accounts saw losses rise 639 bp to an annualized 26.07%. But delinquencies among those accounts fell 21 bp to 4.62%. The Tier 3 category encompasses loans originated to borrowers with credit scores of 630-660 by Avant and Lending Club. Among Tier 2 loans, annualized...



Direction of FHFA in Doubt

Fri, 08 Mar 2019
There’s growing concern among mortgage-securitization professionals that President Trump’s pick to lead the Federal Housing Finance Agency may be less inclined to lower limits on agency loans than expected.The nominee, Mark Calabria, told the Senate Banking Committee on Feb. 14 that he doesn’t believe that the FHFA director has the authority to unilaterally adjust the ceiling for loans guaranteed by Fannie Mae and Freddie Mac....



Yellen Adopts New Stance on CLOs

Fri, 08 Mar 2019
Former Federal Reserve Chairman Janet Yellen walked back some of her criticism of collateralized loan obligations during a closed-door session at the Structured Finance Industry Group’s “SFIG Vegas 2019” conference.During a Feb. 26 appearance attended by more than 1,000 market professionals, Morgan Lewis attorney Reed Auerbach asked Yellen about late-2018 comments in which she expressed concerns about weak underwriting standards...



New Deals Aid Auto Performance

Fri, 08 Mar 2019
A recent flurry of new bond deals helped improve performance among securitized pools of subprime auto loans during the month ended Feb. 15.According to an index maintained by Fitch, losses among those accounts fell 65 bp during the period to an annualized 9.69%. Delinquencies were down 19 bp to 5.55%. The improvements stemmed in part from a healthy flow of subprime auto-loan securitizations in November and December, with the overall index...



Vendors Battle for Disclosure Work

Fri, 08 Mar 2019
Competition is increasing among companies seeking to help structured-product issuers meet Europe’s new disclosure rules.Trustees including BNY Mellon and U.S. Bank were the first on the scene, offering compliance services soon after the European Securities and Markets Authority released a draft of its implementation plan on Aug. 22. More recently, administrative specialists including Intertrust and TMF Group have joined in.The new...



The Grapevine

Fri, 08 Mar 2019
Kevin Dwyer resigned as head of mortgage-bond ratings at Morningstar this week to take an undisclosed position elsewhere. Dwyer’s last day is March 15. He had joined Morningstar as an analyst in 2012 and was elevated to his most recent post in February 2018, when former group head Brian Grow was named president. Dwyer previously worked at Allonhill, Credit Suisse and S&P. Morningstar is seeking a...



The Grapevine

Fri, 08 Mar 2019
Brian Bejile has changed jobs within Citigroup, relinquishing his duties as head collateralized loan obligation trader to become a senior trader of leveraged loans. In that role, Bejile is charged with building a new loan-trading infrastructure under managing director Vikram Prasad. Bejile joined Citi’s New York office in 2004 and took his most recent position in 2016. London-based colleague Vitaliy Kozak has absorbed his...



The Grapevine

Fri, 08 Mar 2019
Geoffrey Kott has left his post as chief financial officer at Cross River Bank to become head of capital markets at online personal lender Affirm, a role in which he is charged with organizing a long-planned securitization program. Kott had arrived at Cross River in 2016 from Morgan Stanley. He previously worked at law firms McKee Nelson, Fried Frank and Blake Cassels. At Cross River, he played a key role in positioning the bank as an originator...



The Grapevine

Fri, 08 Mar 2019
Former Goldman Sachs executive Robert McDonald has started at investment shop Stabilis Capital in New York. At Goldman, where he worked from 2002 to November 2018, McDonald led a team that assembles deals backed by auto and equipment loans and leases. He also has spent time at Ford and Domino’s. Stabilis writes and buys a range of commercial loans, industrial loans and commercial property loans. The $1.4 billion firm is led by Salman...



The Grapevine

Fri, 08 Mar 2019
Pimco added a structured-product analyst to its New York investment team in February. Edward Tabile joined the $1.7 trillion bond-fund manager from GoldenTree Asset Management, where he worked since 2017. Tabile also has spent time at Marathon Asset Management and Credit Suisse.



The Grapevine

Fri, 08 Mar 2019
Natixis has hired a collateralized loan obligation structuring specialist. Alexander Koh arrived in the bank’s New York office in February from Apollo Global, where he worked since 2017 in a role that included risk-retention activities tied to the firm’s CLOs. Koh also has spent time at Ernst & Young and Sumitomo Mitsui Trust.



The Grapevine

Fri, 08 Mar 2019
After failing to secure a nomination to run in last November’s Congressional election, former MUFG executive Zachary Emig has resurfaced in a business-development role at Moody’s Analytics in New York. Emig traded a mix of structured products at MUFG from 2015 until last June, when he unsuccessfully ran in the Democratic primary election to represent New York’s 11th District, covering Staten Island and a section of Brooklyn. He...



The Grapevine

Fri, 08 Mar 2019
Daniele Mastro returned to the London office of Commerzbank in February in a sales-and-trading role involving repurchase agreements — including those tied to structured products. Mastro had focused on collateralized loan obligations as an analyst at U.S. Bank since January 2018. Earlier, he worked in fixed-income sales at Commerzbank and spent time at M&G...



The Grapevine

Fri, 08 Mar 2019
Data-analytics firm DV01 has hired a securitization specialist as a senior product analyst in New York. Vadim Verkhoglyad had been at Tricadia Capital since 2007. His previous employers include Fitch and Bear Stearns.



The Grapevine

Fri, 08 Mar 2019
Whole-loan trader Greg Tsang left Wells Fargo’s Charlotte office on Feb. 8, destination unknown. Tsang, a director, had arrived at Wells in 2016 after stops at Morgan Stanley, Barclays and Lehman Brothers.



Wamco Recruit to End CLO-Issuing Hiatus

Fri, 01 Mar 2019
Western Asset Management is preparing to reactivate its collateralized loan obligation program.The Pasadena, Calif., investment firm hasn’t completed a CLO since 2014, with its absence in part reflecting a series of asset-performance hiccups that drove away buyers. But the operation hired market veteran Ryan Kohan in February to oversee its bank-loan investments as a senior portfolio manager — a role in which he is tasked with...



Canada Card Lender Building Bond Program

Fri, 01 Mar 2019
Alberta Treasury Branches is positioning itself as an issuer of credit-card bonds.The offerings would be backed by accounts the Edmonton, Canada, institution originates at home — with the bonds distributed in the U.S. Sources said a deal approaching $1 billion could hit the market late this year.Alberta Treasury Branches, best known as ATB Financial, offers a range of financing, depository and investment products. It is moving into the...



Goldman Maps Non-QM Issuance Program

Fri, 01 Mar 2019
Goldman Sachs is positioning itself to securitize home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards.The deals would be backed by accounts Goldman intends to purchase from a host of suppliers. Executives from the bank discussed the initiative with originators and bond buyers at the Structured Finance Industry Group’s “SFIG Vegas 2019” conference on Feb....



Bank Targets Non-QM Trades

Fri, 01 Mar 2019
Reliant Bank is positioning itself to buy home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified mortgage” guidelines, and then re-sell them for inclusion in securitization pools.The program is set to launch this month, with Reliant buying new non-qualified loans originated to its specifications by correspondent lenders nationwide. After holding the accounts for two months, the Brentwood, Tenn.,...



ECB Weighs on Europe Forecast

Fri, 01 Mar 2019
With the European Central Bank considering the resurrection of a low-cost financing program for banks, the outlook for securitization volume in the region has turned more bearish.ECB officials have been hinting for some time that they might restart the Targeted Longer-Term Refinancing Operation, which aims to stimulate lending to individuals and businesses by offering banks low-interest loans with terms of four years. And last month, executive...



PACE Lender Entering Market

Fri, 01 Mar 2019
Property Assessed Clean Energy lender Energy Efficient Equity is planning its first securitization.The Los Angeles firm is assembling collateral in a $150 million warehouse facility that it lined up in September from Natixis, which likely would serve as bookrunner. The deal is expected to price by June 30.That said, Energy Efficient Equity has yet to finalize its securitization plans. The operation, known as E3, hasn’t decided whether to seek...



Europe Regs Stifle CLO Distribution

Fri, 01 Mar 2019
Regulatory uncertainty is further driving down the number of U.S. collateralized loan obligations offered in Europe.At issue are loan-by-loan disclosures required under Europe’s new securitization rules. Unsure if those controls would apply to their CLOs, issuers from the States have largely avoided distributing deals in the region this year.The effect is measurable in the number of offerings in which issuers have kept 5% stakes — a...



DBRS Adds to Europe Presence

Fri, 01 Mar 2019
DBRS plans to continue expanding in Europe.The agency, which opened a Madrid office in January, is looking at other cities where it might set up shop this year. The Madrid outpost is its third in the region, alongside a Frankfurt location established in March 2018 and a longstanding London group.At the same time, DBRS plans to double the Madrid team’s headcount as it lands assignments from across continental Europe — particularly...



Blockchain Shop Capturing More Data

Fri, 01 Mar 2019
Global Debt Registry, which uses blockchain technology to track securitization collateral, is rolling out an upgrade that allows for easier integration of Microsoft Excel data.The change will allow warehouse lenders that don’t have technologically sophisticated collateral-management programs to automatically upload data to GDR’s system.GDR’s ePledge tool helps banks ensure that collateral isn’t double-pledged. It tracks...



CLO Startup Pencils In Offering

Fri, 01 Mar 2019
Aspiring collateralized loan obligation issuer HalseyPoint Asset Management is taking shape.HalseyPoint, founded by market veterans Lynn Hopton and Yvonne Stevens in May 2018, expects to float a debut CLO of $500 million shortly after midyear. From there, the El Segundo, Calif., firm would return to market 2-4 times per year.Aiding in the effort is a Feb. 21 agreement under which insurance-focused investment firm A-Cap will supply first-loss...



Matchmaker Adds Loan-Sales Pros

Fri, 01 Mar 2019
A company that electronically matches buyers and sellers of consumer and corporate loans is adding trading specialists to its staff.Stackfolio installed senior institutional-sales strategist Tony Mun in its Los Angeles office in February. He had been working as a consultant since leaving a mortgage-finance post at First Empire Securities in June 2018, having earlier spent time at Piper Jaffray, Gleacher & Co., Ally Bank, Deutsche Bank, Nomura and...



Token Program Taking Shape

Fri, 01 Mar 2019
In a potential precursor to securitization, a New York startup is offering short-term financing to specialty lenders in the form of digital tokens.Cadence currently acts as something of a middleman, arranging funding from investors that buy its tokens online. But it eventually could use a warehouse line to accumulate its own portfolio and bundle the instruments into asset-backed bond pools.Another possibility would be to offer tokens in tranched...



New Direction for MBS Buyer

Fri, 01 Mar 2019
Deer Park Road, which earned healthy returns buying devalued residential-mortgage securities in the aftermath of the credit crisis, has augmented its strategy to profit from a selloff in other areas of the bond market.Over the past year or so, the Steamboat Springs, Colo., firm has built a massive short position via purchases of credit-default swaps referencing instruments including commercial mortgage securities and corporate junk bonds. Its...



The Grapevine

Fri, 01 Mar 2019
Home-loan veteran Karin Good joined Impac Mortgage’s capital-markets group in Newport Beach, Calif., this week as a senior vice president. Good’s duties include selling the originator’s accounts to securitization-funded conduit operators — focusing in part on credits that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards. Good had been running her own...



The Grapevine

Fri, 01 Mar 2019
PineBridge Investments has hired a senior leveraged-loan analyst whose coverage includes the assets underpinning the New York firm’s collateralized loan obligations. The recruit, Priscilla Sheng, started in January. She had been employed at S&P since 2014, and before that was at J.P. Morgan and American Express. PineBridge, which issues under the longstanding Galaxy CLO label, completed three offerings totaling $1.5 billion in...



The Grapevine

Fri, 01 Mar 2019
John Walsh left Capital One in February to join the Bethesda, Md., office of Ally Bank in a lender-finance role. Walsh had worked at CapOne since 2011, performing functions that included arranging warehouse lines and other forms of financing for loan originators that use securitization as a long-term funding strategy. He also has worked at MainStreet Lender and...



The Grapevine

Fri, 01 Mar 2019
The final headcount for the Structured Finance Industry Group’s “SFIG Vegas 2019” conference landed at 8,050 — a record-breaking crowd that topped last year’s attendance by roughly 1,200. The event, which SFIG hosted on its own after dissolving a partnership with Information Management Network, took place Feb. 23-27 at the Aria Resort & Casino in Las Vegas. The 2020 edition also will take place Feb. 23-26 at the...



The Grapevine

Fri, 01 Mar 2019
Aegon Asset Management has added a structured-finance researcher to its Cedar Rapids, Iowa, office. Ryan Baue had been working as a senior investment analyst at the University of Iowa since 2017, covering products including fixed-income funds. Before that, he was at Northern Trust.



The Grapevine

Fri, 01 Mar 2019
MUFG has added a vice president to its securitization-banking unit in London. Benedicte Louis arrived in recent weeks from Mizuho, where she worked on a team that helps clients buy and securitize a range of loans. Louis arrived there in 2017 from Bank and Clients.



The Grapevine

Fri, 01 Mar 2019
Analyst Brandon Cohen has left Wells Fargo’s securitization-banking team in Charlotte. Cohen’s plans are unknown. He had worked at Wells since 2017.



The Grapevine

Fri, 01 Mar 2019
YieldStreet, which buys a range of financing instruments and then syndicates them via an electronic exchange, has hired a structured-finance specialist. As an investment associate, Greg Kang focuses on arranging asset sales to companies that would incorporate the New York firm’s offerings into their securitization pools. Kang arrived in February from Barclays, where he worked since March 2018. He also has spent time at Sumitomo Mitsui...



The Grapevine

Fri, 01 Mar 2019
Porsche has added a member to an Atlanta team that oversees the luxury sports car maker’s securitizations. As assistant treasurer, Eli Yaremenko is handling a range of capital-markets functions. Yaremenko had been at credit-card lender Alliance Data since 2014, and before that was at AMD. Porsche once was an active issuer of bonds backed by auto loans and leases, but hasn’t completed a deal since...



The Grapevine

Fri, 01 Mar 2019
Morningstar is seeking a vice president and an associate to perform rating and surveillance functions for asset-backed securities and collateralized loan obligations. The recruits would work in New York, reporting to asset-backed securities head Rohit Bharill. Candidates can email resumes to Bharill at rohit.bharill@morningstar.com.



Headcount Swells for Las Vegas Conference

Fri, 22 Feb 2019
The Structured Finance Industry Group now can claim to be the sole host of the securitization industry’s largest conference.The trade group already has fielded some 7,500 registrations for its “SFIG Vegas” event, which takes place Feb. 24-27 at the Aria Resort & Casino in Las Vegas. And on-site signups are expected to bring the headcount to a record 8,000.That would mark an increase of almost 1,000 from the gathering’s...



Zero-History Borrowers to Back Card Bonds

Fri, 22 Feb 2019
A credit-card lender that caters to individuals without payment histories is in the early stages of starting a securitization program.Petal Card’s inaugural bond deal would total $100 million to $200 million. While it’s unclear who might arrange the offering, the New York firm has spoken to prospective underwriters including Bank of America, Credit Suisse and J.P. Morgan.Petal also has been talking to rating agencies.Expectations are...



CLO Trading Soars Amid Refinancing Pause

Fri, 22 Feb 2019
Secondary-market trading of collateralized loan obligations has suddenly sprung to life.According to Empirasign, the weekly average supply of formal bid lists in the sector totaled $802.7 million from Jan. 1 to Feb. 15 — versus $525.9 million for all of 2018. Sources attributed the growth to a number of factors, including the broader financial market’s late-year volatility and a slowdown in deal refinancings.“The bid is...



Issuers Eying 40-Year Mortgages

Fri, 22 Feb 2019
Mortgage-bond issuers increasingly are looking at the possibility of incorporating 40-year loans into their deals’ collateral pools.Mariner Investment recently has been the only company to package the accounts into its securitizations in large amounts, setting aside a growing allocation in each of its latest three deals. Invictus Capital also has sprinkled some 40-year mortgages into its offerings. Sources expect similar moves from other...



DFC Advances Payday-Loan Program

Fri, 22 Feb 2019
Payday lender DFC Global appears to be moving ahead with plans for a first-of-its-kind securitization program.The Malvern, Pa., firm, formerly known as Dollar Financial Corp., is eyeing the fourth quarter of this year or first quarter of 2020 to bring a deal to market. The offering could weigh in at $100 million.As part of the effort, DFC has begun searching for a financial professional to explore funding options including securitization. The...



SFIG Rejects FHFA Initiative

Fri, 22 Feb 2019
The Structured Finance Industry Group has reversed its position on whether private-label mortgage bond offerings should take place via the Common Securitization Platform.SFIG previously had been in favor of expanding the Federal Housing Finance Agency project to accommodate non-agency offerings. In fact, the trade group told the House Financial Services Committee in December that smaller issuers would benefit from access to its infrastructure.But...



Banks Test Waters for Loan Sales

Fri, 22 Feb 2019
Traders are reporting an increase in inquiries from banks that are interested in selling riskier loans.The traders, at firms including Garnet Capital and Sandler O’Neill & Partners, said the interest partly reflects concerns that the Financial Accounting Standards Board’s updated treatment for “current expected credit losses” could force banks to set aside more capital against a range of impaired loans. At the same time,...



CIFC Adopts CLO Syndication

Fri, 22 Feb 2019
In a sign that collateralized loan obligation issuers may be gaining pull with investors, CIFC placed the senior class from its latest deal with an unusually large number of buyers.Sources said that in syndicating the $387 million tranche among more than 15 bondholders, as opposed to the typical three or so, the New York firm was able to avoid concessions issuers have been making when following narrower distribution strategies.The $606.5 million...



SFIG Making Progress on PAC

Fri, 22 Feb 2019
The Structured Finance Industry Group’s political action committee finally is ready to begin putting money to work.Michael Bright, the trade group’s newly installed chief executive, said the board of the Structured Finance Coalition PAC has met several times in the past few weeks to develop a strategy for helping Congressional candidates who are supportive of the securitization industry.“We will begin making contributions this...



Small-Loan CLOs In Development

Fri, 22 Feb 2019
A startup business lender is laying the groundwork for a series of collateralized loan obligations backed by smaller-than-usual accounts.The San Francisco operation, Neptune Financial, has been talking to banks and rating agencies in anticipation of conducting its first bond deal in the fourth quarter of this year or the first quarter of 2020. The transaction would total in the hundreds of millions of dollars.Unlike most CLO issuers, Neptune...



REGULATORY ROUNDUP

Fri, 22 Feb 2019
Outlook for Securitization Hinges on Mortgage AgenciesThe Trump Administration’s approach to scaling back Fannie Mae and Freddie Mac could greatly alter the regulatory landscape for structured products in the months ahead.After years of efforts to reduce the agencies’ activities, the Federal Housing Finance Agency appears to be within weeks of unveiling a plan to privatize them and take them out of government conservatorship —...



REGULATORY ROUNDUP

Fri, 22 Feb 2019
Mortgage Agencies — CongressIn the coming weeks, interim Federal Housing Finance Agency head Joseph Otting is expected to unveil plans to reduce the activities of Fannie Mae and Freddie Mac and begin to bring the agencies out of government conservatorship. The move would confirm talk among industry participants that the Trump Administration believes it can take those steps through direct regulatory action without legislation from Congress...



REGULATORY ROUNDUP

Fri, 22 Feb 2019
Common Securitization Platform — FHFAThe Federal Housing Finance Agency is sticking with a July 3 date to being issuing agency mortgage bonds via its Common Securitization Platform. That’s despite indications that plans by interim FHFA director Joseph Otting to reduce the activities of Fannie Mae and Freddie Mac might deal another setback to the long-postponed project (see article on Page 2). Freddie already has been using the Common...



REGULATORY ROUNDUP

Fri, 22 Feb 2019
Qualified Mortgages — CFPBThe Consumer Financial Protection Bureau has set a March 18 deadline for comments on a proposal to delay the January 2021 expiration of a measure under which its “qualified-mortgage” designation applies to any agency home loan, so long as the borrower’s debt-to-income ratio is less than 43%. Should the Trump Administration move ahead with a plan to pull Fannie Mae and Freddie Mac out of government...



REGULATORY ROUNDUP

Fri, 22 Feb 2019
STS Rules — European RegulatorsThe sluggish implementation of the European Union’s new securitization rules continues to weigh on the supply of fresh asset- and mortgage-backed bond deals. That’s largely because various implementation procedures still aren’t finished, even though the controls took effect Jan. 1. When it comes to disclosure guidelines, for example, the European Securities and Markets Authority waited until...



REGULATORY ROUNDUP

Fri, 22 Feb 2019
Libor — UK GovernmentEfforts to identify or develop a replacement for Libor as a bond-pricing benchmark are progressing. On Feb. 12, the Structured Finance Industry Group presented the views of its members to the Treasury Department’s Alternative Reference Rates Committee, which is expected to release a set of recommended practices in a month or two. Although the committee previously suggested the Secured Overnight Financing Rate as a...



REGULATORY ROUNDUP

Fri, 22 Feb 2019
Risk Retention — Japan FSAA Japan Financial Services Agency rule appears to allow banks in that nation to invest in structured products only when issuers keep 5% stakes in their deals, effective April 1. The measure, released in December, especially would affect CLOs from U.S. issuers. That’s because Japanese banks play outsized roles as investors in the senior classes of those deals, and because — unlike many other securitized...



REGULATORY ROUNDUP

Fri, 22 Feb 2019
Loan Losses — FASBOdds are increasing that the Financial Accounting Standards Board will delay implementation of new methods for estimating losses in loan pools. The American Bankers Association released a position paper on Jan. 23 that supports several members of the House Financial Institutions and Consumer Credit Subcommittee who are calling for FASB to postpone the updated treatment for “current expected credit losses.” The...



REGULATORY ROUNDUP

Fri, 22 Feb 2019
Trade Reporting — FinraFinra continues to delay a decision on when to release trade-by trade details for secondary-market sales of mortgage bonds and collateralized loan obligation notes. The self-regulatory agency for broker-dealers was expected to set a date early in 2017. The additional disclosures would include Cusip numbers, sizes and times for every trade — on top of the aggregate trading data for mortgage bonds and CLOs it...



REGULATORY ROUNDUP

Fri, 22 Feb 2019
Volcker Rule — Fed, CFTCThere is a March 11 deadline for comments on a plan by the Federal Reserve, Comptroller of the Currency, Commodities Futures Trading Commission, FDIC and SEC to implement measures under which certain community banks would be exempt from the Volcker Rule’s proprietary trading restrictions. The framework, released by the agencies on Feb. 8, would apply to institutions with less than $10 billion of consolidated...



REGULATORY ROUNDUP

Fri, 22 Feb 2019
Risk Retention — Fed, SEC, TreasuryAttorneys continue to experiment with asset- and mortgage-backed bond structures that would circumvent the Dodd-Frank Act’s risk-retention rule. But hopes for a late-2018 test deal were unanswered, with no issuers stepping forward. Instead, issuers and investors alike increasingly have viewed the required 5% retention stakes as helping to bring discipline to the market. Among those taking that...



REGULATORY ROUNDUP

Fri, 22 Feb 2019
Marketplace Lending — TreasuryIn a complaint filed Oct. 12 in U.S. District Court in Washington, the Conference of State Bank Supervisors followed through with threats to sue the Comptroller of the Currency over a plan to issue national bank charters to nonbank entities — including marketplace-loan originators. The Comptroller requested a dismissal on Jan. 9. It opened the window for so-called fintech charters in July after its parent...



REGULATORY ROUNDUP

Fri, 22 Feb 2019
Student Loans — CongressA proposal from Sen. Lamar Alexander (R-Tenn.) would drastically reduce the menu of repayment formats available for student loans written under the Department of Education’s direct-financing program. That list, which currently contains about a dozen options, would be narrowed to full payment in 10 years or a plan that caps annual payments at 10% of discretionary income. The changes would be implemented as part...



US Bank Adds Mobile Technology

Fri, 22 Feb 2019
U.S. Bank’s corporate-trust unit is launching a mobile version of its Pivot tool.The app incorporates the technology’s most popular features, including provisions for users to view deal data, reports, asset exposures and alerts stemming from performance tests.U.S. Bank staffers plan to unveil the product at the Structured Finance Industry Group’s “ABS Vegas” conference in Las Vegas on Feb. 24-27, but already have...



MountainView Offering More Data

Fri, 22 Feb 2019
MountainView Financial is upgrading its asset-valuation service.The Denver firm, which calculates daily marks for asset-backed securities, mortgage bonds, collateralized loan obligations and other hard-to-value assets, will begin offering clients additional data and analysis on Feb. 25. The upgraded service, dubbed Enhanced Daily Marks, will include a range of data designed to give clients a deeper understanding of the valuation...



The Grapevine

Fri, 22 Feb 2019
Ara Balabanian took a job this month as a portfolio manager focused on structured-product investments in the Newport Beach, Calif., office of hedge fund manager Bramshill Investments. Balabanian, a managing director, was employed in the capital-markets area of Performance Trust since 2016. He previously worked at Goldman Sachs, RBS and Citigroup. The $1.5 billion Bramshill, headquartered in Hackensack, N.J., added a vehicle called Bramshill...



The Grapevine

Fri, 22 Feb 2019
Three more attorneys have left the collateralized loan obligation practice at Arnold & Porter for jobs at Orrick Herrington. Senior associate Daniel Goldstein started in Orrick’s New York office on Feb. 15, with Peter Seel and Elisa Zheng set to arrive in the coming weeks. Goldstein, Seel and Zheng joined Arnold & Porter via its 2017 merger with Kaye Scholer. Their hirings at Orrick follow the firm’s early-February additions of...



The Grapevine

Fri, 22 Feb 2019
Rick Zhang joined Fidelity Investments’ Boston headquarters in January as a structured-product investment analyst. Zhang had been employed since 2015 at T. Rowe Price, covering mortgage bonds and collateralized loan obligations. He also has spent time at Pimco and RangeMark Investment. At Fidelity, Zhang reports to structured-finance research head Tom...



The Grapevine

Fri, 22 Feb 2019
Morgan Lewis has picked up another collateralized loan obligation lawyer from Cleary Gottlieb. Ryan Sugg, who arrived in the firm’s Washington office last week as an associate, had joined Cleary in 2014. He reports to partner Paul St. Lawrence, who took several CLO specialists to Morgan Lewis from Cleary at the beginning of this month.



The Grapevine

Fri, 22 Feb 2019
Fouad Onbargi is no longer working at Burnham Sterling, an investment-banking firm that arranges aircraft-finance transactions for clients — including securitizations. His destination: New York corporate-finance shop EA Markets. Onbargi worked at Burnham Sterling from June 2018 to this January. He previously ran his own business, called ABS Advisory, and before that led the securitization-banking group at KGS-Alpha Capital. He also has...



The Grapevine

Fri, 22 Feb 2019
Loomis, Sayles & Co. has hired a vice president to fill a newly create role as head of trading for mortgage and structured-finance products. The recruit, Don Chaney, had been away from the business since his 2015 departure from an asset- and mortgage-backed bond trading post at CRT Capital. Chaney also has worked at RBS and Bank One.



The Grapevine

Fri, 22 Feb 2019
Global Debt Registry has hired a manager for its ePledge product, a blockchain-technology tool that warehouse lenders use to ensure their borrowers’ collateral isn’t double-pledged. Christine Stern arrived at the New York firm this month following a consulting gig that she started at Remy in July. Stern also has worked at Orchard Platform, Caliber Home Loans, Green Tree Servicing and...



The Grapevine

Fri, 22 Feb 2019
Former TIAA executive Nichol Merritt resurfaced on S&P’s business-development team in December, with a focus on corporate ratings. Merritt last worked from 2007 to 2016 at TIAA, most recently on a unit that arranged privately placed securitizations and corporate-bond offerings. She also has spent time at Wachovia, Deutsche Bank, Barclays, Bank of America and J.P....



The Grapevine

Fri, 22 Feb 2019
National Bank of Canada unit Credigy is seeking a senior analyst to evaluate investments in U.S. personal loans, including accounts extracted from securitization pools. The recruit would be stationed in Norcross, Ga., with a focus on determining loan values. Credigy is focusing on candidates with 1-5 years of experience.



UN Pension Weighs Investment Onslaught

Fri, 15 Feb 2019
The United Nations’ employee pension system is thinking about investing more heavily and broadly in securitized products, where it mainly is known as a buyer of agency mortgage bonds.The potential move would result from a review that the $63 billion United Nations Joint Staff Pension Fund is performing across its structured-finance portfolio.While the scope of the effort won’t be known until the study is complete, the talk is that it...



Hewlett Packard Eyes Lease-Backed Bonds

Fri, 15 Feb 2019
Hewlett Packard Enterprise is taking a hard look at funding its financing activities through securitization.The Palo Alto, Calif., company’s deals could be backed by cashflows attached to a range of software, hardware, data-storage and support services it offers to corporate clients — including equipment leases. It began exploring securitization in late 2018, and has been talking to bankers and rating-agency analysts in preparation...



Wider Spreads Curtail CLO Refinancings

Fri, 15 Feb 2019
The refinancing trade for collateralized loan obligations has dried up.Many industry professionals were banking on another wave of deals in the first quarter, after which the expectation was that volume would gradually decline. But wider spreads on CLO notes have virtually eliminated the economic incentive for refinancing. Consider that only four such deals priced in the first six weeks of this year. The same period saw 41 deals in 2018 and 42 in...



SFIG Initiates Lobbying Makeover

Fri, 15 Feb 2019
The Structured Finance Industry Group’s new chief executive is beginning to spell out how he plans to raise the trade organization’s profile as a lobbying group.Job one for Michael Bright is demystifying securitization for policymakers. He also is taking a more direct approach to communicating SFIG’s stance on a number of matters.Bright, who started Jan. 21, already is meeting with regulators and legislators. “I...



Takeover Improves SunTrust Outlook

Fri, 15 Feb 2019
The growth of SunTrust’s structured-product underwriting business is expected to accelerate as a result of the bank’s acquisition by BB&T.The outlook in large part reflects a situation in which SunTrust’s origination and warehouse-finance activities already had reached a point where, as a smaller institution, its risk-management constraints might have impeded further expansion. While it’s unlikely BB&T will transform the...



CLO-Equity Vehicle Shopped

Fri, 15 Feb 2019
CapCol Management is assembling a hedge fund that would buy the equity pieces of collateralized loan obligations.The New York operation, run by a team of former Credit Suisse executives, is attempting to raise more than $300 million for the vehicle, according to sister publication Hedge Fund Alert. It mainly would accumulate investments on the secondary market, but could pick up positions in new deals in certain situations.CapCol’s strategy...



S&P Staffing Up in China

Fri, 15 Feb 2019
S&P is moving quickly to build up its operations in China.The effort follows the company’s Jan. 28 notification from the Bank of China and National Association of Financial Market Institutional Investors that it would be the first non-China rating agency approved to grade securities issued and sold in the country. Already, it has hired 30 employees for an office in Beijing.The plan is to continue adding personnel. While S&P hasn’t yet...



Santander Maps Chrysler Lease Deal

Fri, 15 Feb 2019
Santander Consumer USA is planning its next securitization of leases on Fiat Chrysler vehicles.The deal is scheduled to hit the market during the second quarter via the Dallas operation’s Santander Retail Auto Lease Trust. Expectations are that it will total about $1 billion.Santander currently finances buyers of Chrysler vehicles as the automaker’s preferred lender. But Chrysler said in July that it intended to dissolve the agreement...



Semper Aims for More Growth

Fri, 15 Feb 2019
Mortgage-bond investor Semper Capital plans to continue boosting its assets.The New York firm finished 2018 with $3.2 billion under management, up from $1.4 billion a year earlier. It is attempting to attract more capital by telling prospective investors that new opportunities are emerging as mortgage-securitization volume picks up.For example, Semper could increase a currently small exposure to bonds whose underlying accounts don’t meet...



CLO Weakness Hits Europe Harder

Fri, 15 Feb 2019
For the first time in the post-credit-crisis era, asset quality is stronger among U.S. collateralized loan obligations than for deals in Europe.For transactions in the States, the median weighted average rating factor — a key indicator of borrower health — deteriorated six points in December to 2820, according to Moody’s. In Europe, that figure worsened by 17.5 points to a slightly weaker 2830.5. While both figures equate to a...



China Fund Promises Lofty Gains

Fri, 15 Feb 2019
A company that offers technology to consumer lenders in China is assembling a fund that would invest in subordinate asset-backed bonds from the nation.Hong Kong-based WeShare opened its debut WeShare China ABS Fund to outside investors at yearend with the goal of raising 1 billion yuan ($148 million), and already has commitments from at least two institutional investors. It is taking aim at limited partners in North America, Europe and...



Clean-Energy Bill Gains Traction

Fri, 15 Feb 2019
State lawmakers are considering a proposal that would allow Public Service Co. of New Mexico to raise some of the capital needed for a transition to clean-energy sources by issuing utility-fee bonds.Under the Energy Transition Act, introduced in the New Mexico Senate on Dec. 7, the Albuquerque company would be able to sell some $320 million of securities backed by a 3% surcharge on customer’ electricity bills. The goal: To recover stranded...



"Tiering' Grows as Spreads Tighten

Fri, 15 Feb 2019
As asset-backed bond values rise, so too does the price gap between deals from the strongest issuers and weaker ones.The “tiering” has been especially prevalent among auto-loan securities. In that market, the best-regarded issuers were placing triple-A-rated notes with five-year lives this week at 38 bp over swaps. Similar paper from their less-desirable peers was circulating at 64 bp — a 26 bp differential.During the week ended...



Redwood Preps Hybrid MBS Deal

Fri, 15 Feb 2019
Redwood Trust is working on another offering of home-loan bonds backed by a mix of conforming and non-conforming accounts, including some that don’t meet the Consumer Financial Protection Bureau’s “qualified mortgage” standards.The deal, with a total face value of $341 million, is expected to hit the market next week. The collateral pool includes conforming loans whose balances are less than the $484,350 ceiling for agency...



Data Firms Link Services

Fri, 15 Feb 2019
TheNumber, which offers data on non-agency mortgages, has teamed up with a similar company specializing in agency products.The arrangement makes TheNumber’s analytical tools available to eMBS’ subscribers, effective via free trials in the coming weeks. The introductory period lasts one year for TheNumber’s loan-by-loan intelligence and 90 days for a product that helps users build data models, subject to usage limits.After that,...



The Grapevine

Fri, 15 Feb 2019
Govert Wessels took a job this month as a portfolio manager overseeing investments in asset- and mortgage-backed bonds at Aegon Asset Management in Rotterdam, Netherlands. Wessels had been employed in a non-securitization role at Credit Suisse since July. Aegon Asset Management runs €325 million ($370 million) through a range of products.



The Grapevine

Fri, 15 Feb 2019
Collateralized loan obligation trader Amit Khurana is no longer at Mizuho. Khurana’s next move couldn’t be learned. He had been an executive director in Mizuho’s office since 2015, working under Jim Stehli. Earlier, he spent time at CRT Capital, Ally Financial, Knight Libertas, UBS, LaSalle Bank and Bank of America.



The Grapevine

Fri, 15 Feb 2019
ARC Ratings has hired a structured-product analyst. Sadeq Safarini arrived in the rating agency’s London office this month from a securitization-focused consulting gig at mortgage lender Northview Group. He had started there in August, following stops at Kensington Mortgages, DealNet Capital, Home Trust and Bridgewater Bank. ARC grades most structured products in Europe, but more often is engaged to evaluate warehouse lines. It...



The Grapevine

Fri, 15 Feb 2019
Startup education lender Meritize has hired a chief financial officer with a background in securitization. Gene Ostrovsky joins the Frisco, Texas, operation having worked since 2017 in the top capital-markets post at Cross River Bank, which serves as an originator of record, warehouse lender and buyer in the online-loan market. He also has worked at student-loan bond issuer Darien Rowayton Bank and spent time at Morgan Stanley, RBS and...



The Grapevine

Fri, 15 Feb 2019
The identities of two more collateralized loan obligation attorneys who moved to Morgan Lewis from Cleary Gottlieb have emerged. Eileen Ho and Samuel Park started in Morgan Lewis’ Washington office on Feb. 11, both as associates. Ho had joined Cleary from Sidley Austin in 2014. Park also arrived in 2014, straight out of law school. Their boss, partner Paul Lawrence, moved to Morgan Lewis from Cleary on Feb. 1 amid indications that a few...



The Grapevine

Fri, 15 Feb 2019
Judy Chou joined Fitch unit Covenant Review this month as a senior relationship manager in New York. Chou had been working as an investor consultant since her 2014 exit from CIFC, where she was a product specialist. She also has worked at Callidus Capital and J.P. Morgan. Covenant, which analyzes creditor rights across a range of debt products, has been stepping up marketing of its leveraged-loan coverage to issuers, underwriters and investors in...



The Grapevine

Fri, 15 Feb 2019
Shortly after arriving as head of sales for Intertrust Group’s U.S. structured-product services, Richard Peterson has left his New York post. Peterson had joined the firm after working as a director at Moody’s Analytics from 2016 to August 2018, and before that was at J.P. Morgan. Intertrust performs a range of back-office functions in the structured-finance market, including administration and trust...



The Grapevine

Fri, 15 Feb 2019
Guggenheim is seeking an analyst to cover asset-backed bonds and collateralized loan obligations for its syndicate desk in New York. The bank is focusing on candidates with 1-3 years of experience. To apply, click on “careers” at guggenheimpartners.com and search for job number 11470.



The Grapevine

Fri, 15 Feb 2019
U.S. Bank added a collateralized loan obligation analyst to its Chicago trust unit this month. Beeva Shrestha had been working at J.P. Morgan since 2016. Before that, she was at PricewaterhouseCoopers.



Citi Maps Return of Jumbo-Mortgage Deals

Fri, 08 Feb 2019
Citigroup is ready to resume issuing jumbo-mortgage bonds.The effort would start with an offering of undisclosed size that could come to market soon. A routine flow of transactions would follow.From 1995 to 2015, Citi completed 184 securitizations of newly originated jumbo mortgages totaling $86.2 billion, according to Asset-Backed Alert’s ABS Database. While the bank never officially suspended the program, the flow of deals then paused as...



Orrick Adds CLO Team From Arnold & Porter

Fri, 08 Feb 2019
Orrick Herrington hired several collateralized loan obligation lawyers away from Arnold & Porter this week, instantly gaining a far-higher profile in the sector.Leading the incoming group is New York-based partner Howard Goldwasser, with longtime colleague Skanthan Vivekananda signing on as a partner in Los Angeles. Sources said they expect a few associates to follow.Goldwasser and Vivekananda typically have represented CLO underwriters. At...



Risk-Transfer Market Balks at Refinancings

Fri, 08 Feb 2019
Changes to the terms of risk-transfer securities issued by Fannie Mae and Freddie Mac threaten to further roil a market that saw bond values plummet in the fourth quarter.Since the Federal Housing Finance Agency’s Home Affordable Refinance Program began unwinding at yearend, Fannie and Freddie have implemented similar programs aimed at helping borrowers with high loan-to-value ratios refinance their mortgages. What has investors worried is...



CLOs Flow Despite Shaky Spreads

Fri, 08 Feb 2019
It is getting more costly to place new collateralized loan obligations.The difficulties appear most prevalent among less-active issuers, which often lack relationships with Japanese institutions including Norinchukin Bank that have positioned themselves as the most aggressive buyers of triple-A-rated CLO paper. Instead, those firms recently have been turning to U.S. banks including J.P. Morgan and Wells Fargo that often demand larger...



Investors Sigh as Volatility Wanes

Fri, 08 Feb 2019
Asset-backed bond investors are giving up hope of regaining the upper hand on issuers anytime soon.It has been weeks since bondholders were able to use market volatility as leverage over issuers to push for higher yields on new deals. Now, with demand for fresh paper currently outpacing supply, spreads have been grinding tighter. “We had a small window at the start of the year, but it closed so quickly,” a hedge fund buyer...



Launch Set for Fix-and-Flip Fund

Fri, 08 Feb 2019
Former Wells Fargo executives Derrick Land and Travis Masters are progressing with efforts to start a fund that would buy and securitize residential fix-and-flip loans.Working under the umbrella of Churchill Real Estate, which absorbed their Charlotte-based Blue Cypress Capital last week, the duo aims to launch the open-end Churchill Residential Real Estate Opportunity Fund this month with $200 million. The plan is to continue raising capital...



PenFed Reconsiders Funding Strategy

Fri, 08 Feb 2019
Pentagon Federal Credit Union plans to review financing options for its expanding loan portfolio, with an eye toward tapping the asset-backed bond market for the first time.The analysis would focus on the Alexandria, Va., operation’s holdings of auto loans, private and government-guaranteed student loans, personal loans and credit-card accounts.At the start of 2018, the credit union’s loan portfolio totaled about $200 million, up from...



Strong Borrowers Show Weakness

Fri, 08 Feb 2019
Performance deteriorated in January among securitized pools of online personal loans written to the most-creditworthy individuals.According to an index maintained by Kroll, losses among so-called Tier 1 borrowers — those with credit scores of 710-740 — rose 55 bp for the month to an annualized 5.84%. That jump, driven by deals that Marlette Funding and Social Finance completed in 2017, put the figure just 8 bp below an all-time high...



Investors Gaining Access to Carvana

Fri, 08 Feb 2019
Online auto dealer Carvana is taking another crack at the asset-backed bond market.The Tempe, Ariz., company has tapped underwriter J.P. Morgan to sell about $400 million of bonds backed by a mix of prime-quality and subprime loans. The deal could hit the market by the end of March. Carvana is talking to Moody’s about rating the offering.Carvana has funded its lending operations largely through whole-loan sales and unsecured debt. The...



Payments Lag for Subprime Autos

Fri, 08 Feb 2019
Delinquencies among securitized pools of subprime auto loans have returned to record highs.According to an index maintained by Fitch, the volume of past-due accounts in those portfolios rose 24 bp to 5.74% during the month ended Jan. 15, matching a level set in February 2018. Losses were up 68 bp to an annualized 10.34% — a figure that approaches the record high of 10.42% from February 2017. Fitch said it’s no coincidence that losses...



Sluggish Start Continues in Europe

Fri, 08 Feb 2019
The supply of asset- and mortgage-backed bonds in Europe remains at near-zero levels.After January passed with no fresh deals, Clydesdale Bank priced a $779 million home-loan offering on Feb. 7 with Bank of America, BNP Paribas, Citigroup and Wells Fargo running the books. Industry participants said the Glasgow, Scotland, institution’s ability to complete the transaction reflected an improved market outlook that accompanied progress in the...



Buildup Pushes On at Wilmington

Fri, 08 Feb 2019
Wilmington Trust continues to expand its staff.The firm plans to add an unspecified number of securitization-focused trust personnel to an existing team in Chicago in the coming months. It also expects to set up a structured-finance unit in its Minneapolis office, staffing it with three or four hires by midyear.Wilmington already has been adding personnel to its securitization groups in its Wilmington, Del., headquarters and in New York and...



The Grapevine

Fri, 08 Feb 2019
Matthew Zola left his post as Natixis’ head of fixed-income underwriting, sales and trading in the U.S. about a month ago. Zola’s plans are unknown. He had joined Natixis’ New York office in 2015 from a similar position at UBS. Earlier, he headed the structured credit product group at Morgan Stanley.



The Grapevine

Fri, 08 Feb 2019
Sean Gibson, MUFG’s head collateralized loan obligation trader, departed on Feb. 1 to take an equivalent post in the New York office of SMBC Nikko. Gibson worked at MUFG since 2011, following stops at MF Global, Morgan Stanley and Bear Stearns. His Feb. 4 arrival at SMBC follows the bank’s August hiring of former MUFG staffer John Lennon as head asset-backed bond...



The Grapevine

Fri, 08 Feb 2019
Portfolio manager Jamie Smith has left Benefit Street Partners’ collateralized loan obligation-management team. Word has it Smith is headed to Beverly Hills private equity firm Platinum Equity to help set up a credit-product program. He joined Benefit Street shortly after the firm’s 2008 launch, following stops at HillMark Capital, BNP Paribas and WestLB. Franklin Templeton Investments agreed in 2018 to take over Benefit Street, with...



The Grapevine

Fri, 08 Feb 2019
Michael Htun joined Cairn Capital’s London office in January as a portfolio manager overseeing investments in collateralized loan obligation securities. Htun had been handling CLO originations and leveraged-loan sales at NatWest Markets since 2017. He also has worked at RBC, Fitch and Halcyon Capital.



The Grapevine

Fri, 08 Feb 2019
Citigroup has elevated Bryan Chao to head of trading for non-agency residential and commercial mortgage bonds. The New York-based Chao previously co-headed commercial mortgage bond trading with Ganesh Karunakaran, who remains at the bank. He arrived at Citi in 2007, initially covering home-loan bonds.



The Grapevine

Fri, 08 Feb 2019
Online personal lender Affirm is looking for a new head of capital markets — a role that includes the continued planning of a securitization program. The job was vacated at yearend by Zara Ivanova, who had been on board since 2017. Ivanova previously worked at Earnest, Guggenheim, Dresdner Kleinwort and AIG. San Francisco-based Affirm is led by PayPal co-founder Max...



The Grapevine

Fri, 08 Feb 2019
Asset manager Eurizon Capital has added a securitization-focused portfolio manager to its London office. Alessandro Federico Parassina arrived in recent weeks from Banca IMI, where he worked since 2012. Parassina previously spent time at Intesa Sanpaolo and Ernst & Young. Milan-based Eurizon has €312 billion ($355 billion) under management.



The Grapevine

Fri, 08 Feb 2019
Performance Trust Capital hired Arjun Kakar in January to handle securitization-banking functions as a director in its Greenwich, Conn., office. Kakar most recently worked at Cantor Fitzgerald since 2017, with a focus on deals backed by marketplace-originated personal loans. Before that he was at Kimberlite Advisors and NewOak Capital.



The Grapevine

Fri, 08 Feb 2019
Nearwater Capital, which finances the risk-retention activities of structured-product issuers, hired two executives in January. Associate director Kristy Giardino joined the New York operation from a commercial-paper conduit post at FMS Wertmanagement, where she worked since 2013. Giardino also has spent time at Depfa Bank, Catequil Asset Management and Solomon Smith Barney. The other recruit, Paterno “Tino” Luzano, was working...



The Grapevine

Fri, 08 Feb 2019
Goldman Sachs is seeking a deal-structuring specialist to help assemble and document offerings backed by a range of mortgage-related assets for the bank and clients, including those underpinned by non-traditional cashflows. The New York-based recruit would hold the title of associate or vice president. Goldman is focusing on candidates with two years of experience. To apply, click on “careers” at goldmansachs.com and search for job...



Wells Seeks Funding for Auto-Loan Book

Fri, 01 Feb 2019
Wells Fargo is planning to securitize its prime-quality auto loans.Treasury executives at the bank have been huddling with securitization-underwriting colleagues who would lead the resulting offerings, which would come on a routine basis. A transaction of $1 billion could hit the market by midyear.Wells has securitized its auto loans only once before, selling $735.4 million of bonds in 2001 with Deutsche Bank running the books.The bank’s...



Morgan Lewis Installs Top CLO Attorney

Fri, 01 Feb 2019
Morgan Lewis has picked off the highest-ranking member of Cleary Gottlieb’s securitization practice.Paul St. Lawrence, a collateralized loan obligation specialist, arrives in Morgan’s Washington office today as a partner. Also making the move are three CLO-focused associates whose identities couldn’t be learned.For Morgan Lewis, the additions promise to give the firm an instant presence in one of the few busy areas of the...



Rebound Forecast in Card-Bond Issuance

Fri, 01 Feb 2019
Industry professionals predict issuance of U.S. credit-card bonds will increase this year, with American Express, Bank of America and Citigroup poised to lead the pack.A combination of factors including a large volume of maturing issues, rising bank deposit rates and tight spreads is fueling the expectations. Last year’s output of $36.6 billion marked a 23% decrease from the $47.4 billion of card-bond deals that priced in 2017, according to...



Jennings Lands at New Employer

Fri, 01 Feb 2019
(SEE CORRECTION BELOW) William Jennings has taken a job at Imperial Capital.While details of his role are fuzzy, it appears the former Hunt Financial Securities executive will start in the Los Angeles investment bank’s New York office soon. One source described his role as involving mortgage products.To that end, there have been hints that Jennings might re-start a small structured-product sales-and-trading desk Imperial shuttered in 2018. That...



Risk-Retention Loans Catching On

Fri, 01 Feb 2019
Some asset-backed bond issuers have begun borrowing money to meet their risk-retention obligations under the Dodd-Frank Act.In the last couple of months, issuers including LendingClub, Prosper Marketplace and Ygrene Energy have obtained financing to purchase 5% interests in their deals, as the law requires. Until now, many issuers have complied either by tapping reserve funds or by raising equity capital from outside investors.For the time being,...



IMN Group to Meet at SFIG Event

Fri, 01 Feb 2019
An investor group that Information Management Network formed in July appears to have developed a close relationship with the Structured Finance Industry Group.Representatives from the Fixed Income Investment Network’s 80 member companies will meet on Feb. 24 at the Aria Resort & Casino in Las Vegas — sharing a site with SFIG’s “SFIG Vegas 2019” conference, which starts the same day. Sources said IMN sought...



Panelists Bearish on Blockchain

Fri, 01 Feb 2019
A panel at the Structured Finance Industry Group’s “SFIG Vegas 2019” conference will focus in part on how blockchain technology has failed to catch on in the securitization industry.While proponents of blockchain tools continue to tout the development of experimental deals, a predicted surge of activity hasn’t taken place — in part because of tepid interest among issuers. To that end, the moderators of a Feb. 26...



Computershare Adding Appraisers

Fri, 01 Feb 2019
Computershare unit Property Solutions is expanding an appraisal-review service that it offers to mortgage buyers.Through the service, focused on loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards, the Highlands Ranch, Colo., firm lines up contractors to verify property values on an as-needed basis. It currently works with more than 500 certified appraisers nationwide, and wants...



Biz2Credit Offering Ready to Go

Fri, 01 Feb 2019
Small-business lender Biz2Credit is moving ahead with a long-developing securitization program.The New York firm is aiming for the second quarter to float a deal of about $100 million with Guggenheim running the books, a source said. Kroll would rate the bonds.Biz2Credit began looking at securitization in 2015. At the time, the company was exclusively selling its loans to investors — and planned to work alongside one or more of them to...



Credit-Card Performance Improves

Fri, 01 Feb 2019
A key performance indicator for securitized credit-card accounts continued to improve in the fourth quarter.Charge-offs among U.S. bankcard portfolios fell to an average of 2.80%, from 2.97% in the third quarter, according to an index maintained by Fitch. The figure had hit a multi-year high of 3.46% in the second quarter. Meanwhile, 60-day delinquencies among securitized bankcard accounts ticked up to 1.08%, from 1.00% in the third quarter....



The Grapevine

Fri, 01 Feb 2019
Managing director Mary Dierdorff no longer is employed as head of BNP Paribas’ commercial-paper conduit business. Dierdorff, who departed the bank’s New York office last week, had been on board since 2006. She also has worked at WestLB, GE Capital, Moody’s, CapMac and Chase Manhattan. BNP Paribas’ conduits had $12 billion of their securities in the hands of investors at yearend...



The Grapevine

Fri, 01 Feb 2019
Dmitri Rabin exited his post as co-head of a $30 billion structured-product portfolio at Loomis, Sayles & Co. in December. Rabin, who is looking for a new job, had been at the Boston firm since 2008. He also has worked at Pine Cobble Capital and Cambridge Place Investment. His co-head, Alessandro Pagani, remains at Loomis Sayles. Meanwhile, some of Rabin’s former duties have been absorbed by vice president Steve LaPlante — who was...



The Grapevine

Fri, 01 Feb 2019
Banco Santander has hired a head of asset-backed bond trading in Europe. Colm Corcoran, who arrived in the bank’s London office in recent weeks, most recently was employed from 2009 until August at Societe Generale. Corcoran previously spent time at HSH Nordbank and Dresdner Kleinwort. His arrival at Santander comes amid a leadership reorganization that began late last year. The top asset-backed bond trading position had been...



The Grapevine

Fri, 01 Feb 2019
Structured-product sales head Ryan Craft has left Baird, with plans to start an unspecified lending business. Craft joined Baird’s New York office in 2016 after stops at RBC, Merrill Lynch and Bank of America. Baird’s structured-product sales team has been adding personnel in recent years.



The Grapevine

Fri, 01 Feb 2019
Geoffrey Horton left Wells Fargo’s Charlotte office at yearend to take a London post as head of European collateralized loan obligation and leveraged-loan research at Barclays. Horton was at Wells since 2014, covering CLOs and commercial-asset securitizations. He also has worked at Deutsche Bank.



The Grapevine

Fri, 01 Feb 2019
Sales specialist Lou Rosenfeld landed in Nomura’s New York office in recent weeks as a managing director. Rosenfeld most recently worked at Credit Suisse from 2014 to September 2018, when he was laid off. He also has spent time at Good Hill Partners, Goldman Sachs, RBS, Bear Stearns and Kidder Peabody in a career dating back to the 1980s.



The Grapevine

Fri, 01 Feb 2019
KeyBank has hired two structured-product sales specialists amid a continuing buildup of its secondary-market presence. Raffaele Piu, who starts soon in the bank’s New York office, had been at Hunt Financial Securities since 2017. He also has worked at Mesirow Financial, CapRok Capital and RBS. Also on board is Rob Salazar, who started in Chicago in December. He was at Guggenheim since 2010, following stops at Members United, Vanderbilt...



The Grapevine

Fri, 01 Feb 2019
Christopher Deasy joined Fitch’s mortgage-bond rating group in New York this week as a director. Deasy, who reports to Suzanne Mistretta, had been working at Equifax since 2016. He also has spent time at Lewtan Technologies and S&P.



Regulations Shut Down European Pipeline

Fri, 25 Jan 2019
It looks like no asset- or mortgage-backed bond deals will price in Europe this month.While January typically sees light issuance activity, it has been more than 20 years since the month passed with no supply. Indeed, the only zero-volume months in recent memory were April 2009, May 2010 and August 2014.That makes this the slowest post-credit-crisis start for Europe’s asset- and mortgage-backed bond market. The main cause: Industry...



Structured-Product Funds Show Well for 2018

Fri, 25 Jan 2019
Vehicles that invest in structured products delivered some of the hedge fund industry’s strongest returns in 2018, proving largely immune from late-year losses among strategies focused on stocks and corporate debt.Many of the sector’s leading managers, including Angelo Gordon & Co., Axonic Capital, Ellington Management, Napier Park Global, Seer Capital and SPF Investment, posted full-year returns in the high single digits. A few...



REITs Shy Away From Risk-Transfer Bets

Fri, 25 Jan 2019
Mortgage REITs have largely stopped buying risk-transfer securities from Fannie Mae and Freddie Mac.AGNC Investment, Annaly Capital, Invesco Mortgage Capital and MFA Capital are among buyers that have pulled back for the time being. Their moves come after investors booked heavy losses in November and December, when the values of the deals’ senior notes dropped to an average of 93 cents on the dollar from 97 cents in October and near par in...



Banks Discuss Mega-Mortgage Issues

Fri, 25 Jan 2019
Several mortgage lenders are thinking about securitizing mega-jumbo loans.Executives at banks including OneWest Bank and Wells Fargo have been discussing the possibility of such offerings with investors, with the goal of gauging demand. They also have spoken to rating-agency analysts.The expectation is that a deal of more than $1 billion could hit the market during the second half of the year.Mega-jumbo mortgages feature balances of $2 million or...



Bankruptcy Interrupts PG&E Plan

Fri, 25 Jan 2019
Pacific Gas and Electric’s expected bankruptcy has left its securitization plans up in the air.The San Francisco company had been well along in developing a bond deal that would have funded improvements to its generation facilities, with the goal of fortifying them against disasters resulting from climate change. But industry participants see it as unlikely the offering will proceed during a two-year Chapter 11 reorganization that could...



Broker Targeting Structured Products

Fri, 25 Jan 2019
Dinosaur Financial is building a U.S. structured-product sales and trading business — and has hired a market veteran to oversee the effort.Armand Pastine joined the New York broker-dealer this week as a senior managing director, reporting to fixed-income chief Javier Perez-Santalla. His mission: hire up to six traders and salespeople to focus on asset- and mortgage-backed securities, commercial mortgage bonds and collateralized loan...



CLO Issuers Pursue Warehouse Play

Fri, 25 Jan 2019
In a bid to restore profitability to their warehoused holdings, collateralized loan obligation issuers are taking out new credit facilities.The moves reflect a situation in which falling leveraged-loan prices in November and December left many existing warehouse lines under water, effectively preventing the firms from completing planned securitizations of those portfolios. Indeed, the volume of “hung” warehouses totaled $30 billion...



SoFi Ends Issuance Respite

Fri, 25 Jan 2019
Social Finance is kicking its securitization programs into gear.The San Francisco company is expected to hit the market in the coming weeks with its first personal-loan offering of the year. Goldman Sachs is running the books on the deal, which has an estimated size of $500 million.SoFi also just completed its first student-loan securitization of 2019. That $482 million issue priced Jan. 18 with Deutsche Bank, Goldman, J.P. Morgan and Mizuho...



Outlook Worsens for Honor Investors

Fri, 25 Jan 2019
A new servicer report paints an increasingly bleak picture for a $100 million securitization of subprime auto loans issued by Honor Finance.The deal’s reserve account, which can be tapped to pay bondholders when cashflows fall short, dropped from more than $800,000 in October to a $2.2 million “deficiency,” according to a Dec. 17 report by servicer Westlake Financial. At the same time, over-collateralization fell from zero to...



Startup Commences Token Sales

Fri, 25 Jan 2019
In a possible precursor to securitization, a blockchain-technology company is creating digital tokens out of short-term corporate receivables.Cadence’s tokens have terms of only a few months and currently aren’t tradeable. But the New York operation is talking to companies that are interested in formats more closely resembling tranched asset-backed bonds.For the moment, Cadence’s business is limited to funding merchant cash...



Pressure On for CECL Delay

Fri, 25 Jan 2019
A multitude of industry professionals will ask the Financial Accounting Standards Board to delay the implementation of new methods for estimating loan losses.The requests — from bank officials, lawyers, accountants, asset-valuation specialists and others — will come during a public hearing at FASB’s Norwalk, Conn., headquarters on Jan. 28. Citing confusion over the updated treatment for “current expected credit...



Funding Denied for Tesla Leases

Fri, 25 Jan 2019
A plan by MUSA Auto Finance to securitize leases on Tesla vehicles has hit another potential roadblock.Concerned about the Sept. 5 firing of MUSA president Richard Frunzi, Goldman Sachs apparently declined in October to expand a $125 million warehouse line it supplies to the Addison, Texas, company.With that facility and a $50 million equity injection from Crestline Investors fully deployed, MUSA was forced to stop writing new leases for...



The Grapevine

Fri, 25 Jan 2019
Calvin Davies has jumped from the top asset-backed bond investment post at NN Investments to Orange Credit Hypotheken. Davies started as chief investment officer at the Oud Gastel, Netherlands, mortgage company this month, with a focus on loan purchases. He had been at employed since 2005 at NN and predecessor ING Investment. His career, dating back to 1990, also has included stops at Dresdner Kleinwort, HBOS, NIB Capital, Natixis, Rabobank and...



The Grapevine

Fri, 25 Jan 2019
Mortgage-bond trader Charles Krohn joined hedge fund manager Paloma Partners this month. Krohn, a portfolio manager in the firm’s Greenwich, Conn., headquarters, most recently led agency mortgage-bond trading at RBC from April 2017 to October 2018. He previously spent time at J.P. Morgan, AQR Capital, and Fall Creek Research. Paloma employs a multi-strategy investment format that includes positions in structured...



The Grapevine

Fri, 25 Jan 2019
Online small-business loan originator Funding Circle has hired a capital-markets specialist to establish a U.S. securitization program. Director Ryan Foss arrived in the London company’s New York office in recent weeks from education lender Laurel Road, where he worked since 2016. Foss previously spent time at Compass Analytics, RBS, Gleacher Natwest, Credit Suisse and J.P. Morgan. While Funding Circle has yet to complete a securitization...



The Grapevine

Fri, 25 Jan 2019
Franchesco Casadidio joined Golub Capital’s structured-product investment team in Davidson, N.C., in December as a senior analyst. Casadidio had been working in Wells Fargo’s collateralized loan obligation unit since 2015, with a focus on deal origination and warehouse financing. Golub, a Chicago business development company, invests mainly in corporate...



The Grapevine

Fri, 25 Jan 2019
Managing director Christopher Bigos left Garrison Investment this month to take the same title at Direct Lending Investments, a Los Angeles firm that buys small-business loans from online lenders. Bigos had been employed since 2015 at Garrison, whose holdings include structured products. He also has worked on securitization desks at Deutsche Bank, Morgan Stanley and RBS, with a focus on consumer-asset...



The Grapevine

Fri, 25 Jan 2019
Liberty Mutual has an opening for a securitization-focused attorney in its Boston office. The recruit would support the firm’s investment team in a variety of areas, including asset-backed bonds, collateralized loan obligations and corporate loans. Liberty Mutual is focusing on candidates with at least six years of experience. To apply, click on “careers” at libertymutualgroup.com and search for job number...



The Grapevine

Fri, 25 Jan 2019
Citigroup is looking for a director-level executive who would help lead mortgage-bond deals for the bank and clients. The recruit’s coverage areas would include offerings underpinned by prime-quality mortgages, subprime loans and rental-home cashflows, along with nonperforming and reperforming loans. He or she also would work on agency risk-transfer transactions. To apply, click on “careers” at citi.com and search for job number...



The Grapevine

Fri, 25 Jan 2019
President Josh Tonderys has left personal lender Marlette Financial, apparently after tiring of a commute from his home in California to the firm’s Wilmington, Del., headquarters. Tonderys’ next move couldn’t be learned. He had arrived at Marlette in 2016 after stops at Prosper Marketplace, Barclays and BankOne. Sources said Marlette doesn’t plan to replace him. The company, a routine asset-backed bond issuer, is preparing...



The Grapevine

Fri, 25 Jan 2019
Education lender CommonBond is seeking a New York-based associate general counsel whose duties would include advising on its securitization program and origination activities. The company is focusing on candidates with at least seven years of experience. To apply, click on “careers” at commonbond.co.



Repo Desks Chase Private-Label Contracts

Fri, 18 Jan 2019
With agency-mortgage volume falling, banks’ repurchase desks are scrambling for fresh exposures to non-agency products.As they seek to drum up that business, the institutions — including Credit Suisse, Deutsche Bank, Goldman Sachs and J.P. Morgan — are cutting the fees they charge to clients. The efforts cover contracts tied to both bonds and whole loans.“Agency mortgage production is down enough that there is excess repo...



SFIG Campaigning for Portfolio-Risk Deals

Fri, 18 Jan 2019
The Structured Finance Industry Group is intensifying a push for the Comptroller of the Currency to allow banks to gain capital relief via “portfolio risk transfer” transactions.The effort comes as part of a broader plan by the trade group to task newly hired chief executive Michael Bright with gaining influence among policymakers, with an emphasis on reductions in capital charges. Should the organization succeed, the expectation is...



New Team Leads Mayer's Securitization Unit

Fri, 18 Jan 2019
Jon Van Gorp has stepped down as co-head of Mayer Brown’s securitization practice.Van Gorp, who had led the group since 2012 alongside Stuart Litwin, remains a partner at Mayer and a member of the management committee overseeing the entire firm. Litwin, who is based in Chicago, will continue overseeing the team along with newly named co-heads Julie Gillespie and David O’Connor. The management changes took effect this month.“This...



Issuers Take Shutdown in Stride

Fri, 18 Jan 2019
The business of structuring and distributing asset- and mortgage-backed bonds is continuing with little thought to the government shutdown.Although the SEC has been running with a skeleton crew since the shutdown began on Dec. 22, new-issue volume has been healthy so far — with 13 deals totaling $8.8 billion having priced this year. That’s comparable to the market’s output during the same period last year.Another 10 issuers have...



CLO Pros Hopeful for Relief in Japan

Fri, 18 Jan 2019
Japanese banks appear likely to persuade regulators to ease up on a newly proposed risk-retention rule for structured products.The proposal, published Dec. 28 by Japan’s Financial Services Agency, poses an enormous threat to the collateralized loan obligation market, where Japanese banks have been among the largest and most reliable buyers of senior securities. As written, the rule change would penalize banks for investing in deals when the...



Graticule Drops Credit-Product Unit

Fri, 18 Jan 2019
Graticule Asset Management Asia’s plan to start an opportunistic credit-product fund didn’t pan out.The Singapore global-macro firm is unwinding a San Francisco unit that had been aiming for the fourth quarter of 2018 to launch the vehicle. A source said that in a matter of days, the initiative went from the roadshow-planning stage to being scrapped, according to sister publication Hedge Fund Alert.The fund’s investments would...



Lobbying Tops SFIG's Agenda

Fri, 18 Jan 2019
The Structured Finance Industry Group’s selection of Washington insider Michael Bright as chief executive reflected a desire by the trade group to remake itself as a more powerful lobbying entity.Bright, a mortgage-finance specialist who most recently served as interim head of Ginnie Mae, starts Jan. 20. From day one, his focus will be on gaining a voice in Washington — starting with a push to convince the Comptroller of the Currency...



Downgrades Reflected in CLO Pools

Fri, 18 Jan 2019
Leveraged-loan downgrades caused an increase in the percentage of low-quality assets in U.S. collateralized loan obligation pools in November.According to Moody’s, median holdings of loans rated “Caa1” or worse rose by 10 bp to 3.60% for the month. That figure has been rising since 2015 as issuers have sought higher-yielding loans at a time when many stronger borrowers have refinanced at lower interest rates. This time, the...



Trustee Crown Stays With US Bank

Fri, 18 Jan 2019
U.S. Bank retained its standing as the structured-finance industry’s most active trustee in 2018, as its key rivals shifted positions.The bank again led its peers in the combined U.S. asset- and mortgage-backed bond sector, this time working on $85.7 billion of new offerings for a 24.9% market share. It also remained the number-one collateralized loan obligation trustee worldwide, appearing on $93.6 billion of deals for a 52.2% claim,...



S&P Unchallenged for Top Standing

Fri, 18 Jan 2019
S&P again rated more U.S. asset- and mortgage-backed bonds than any of its rivals in 2018.The agency graded $189.8 billion of transactions for a 55.1% market share. That amounted to a 16% jump from a year earlier, outpacing a 15% increase in overall supply, according to Asset-Backed Alert’s ABS Database.S&P has held the number-one ranking since 2012. Moody’s, meanwhile, moved up to second place from third, switching spots with Fitch....



Fitch Nabs CLO-Rating Crown

Fri, 18 Jan 2019
Fitch surpassed Moody’s as the U.S. collateralized loan obligation market’s busiest rating agency in 2018.The switch reflected factors including a staff buildup that Fitch began in 2016 and ongoing criticism of Moody’s ability to handle surges of deal volume. All told, Fitch’s ratings appeared on $99.9 billion of fresh CLOs last year for a 75% market share, according to Asset-Backed Alert’s ABS Database.That marked a...



Sidley Austin Grabs First Place in Tally of Underwriter Law Firms

Fri, 18 Jan 2019
A one-third surge in deal count allowed Sidley Austin to overtake Morgan Lewis in the league table for most active underwriter counsel in 2018.Sidley last year fielded 101 assignments from bookrunners of U.S. asset- and mortgage-backed securities, up from 74 in 2017, according to Asset-Backed Alert’s ABS Database. That was far ahead of number-two Morgan Lewis, whose 2018 deal count totaled 79, compared to 76 the year before. Hunton Andrews,...



Asset Tracker on Growth Trajectory

Fri, 18 Jan 2019
Data company T-Rex Group is planning a staff expansion.The New York company is seeking a head of data management. It also is looking for two staffers who would help oversee data collection and analysis. The plan is to fill the positions by March 31.The expansion follows an agreement this month to handle a greater workload for Macquarie Capital and the December signing of a contract with an undisclosed insurer.Via its Performance Data Service,...



Morningstar Gives Nod to Infinity IPS

Fri, 18 Jan 2019
Morningstar has added Infinity IPS to the list of due-diligence firms whose findings it will accept when rating mortgage securitizations.The agency finished vetting the Infinity in the past month or so. The Rockville, Md., firm already was approved to perform reviews for deals rated by Moody’s, S&P, Fitch, DBRS and Kroll.John Hutchinson, who oversees Infinity’s due-diligence business, worked with Morningstar. Hutchison said due...



The Grapevine

Fri, 18 Jan 2019
Mario Verna resigned as head of collateralized loan obligation origination at Guggenheim this week to join Robert W. Baird & Co., where he will start in New York after waiting out a gardening leave. Verna worked at Guggenheim since 2014, following stops at Krypton Advisors, Deutsche Bank, J.P. Morgan and Fitch. His exit from his most recent role followed Guggenheim’s October hiring of Adrian Radulescu to help lead its CLO business, which...



The Grapevine

Fri, 18 Jan 2019
Mortgage-conduit specialist Michael Wold joined the former New Penn Financial this month as a Los Angeles-based vice president on a team that originates loans that fall outside the Consumer Financial Protection Bureau’s “qualified-mortgage” parameters. Wold had been part of the correspondent-lending group at FirstBank since 2016, following stops at Redwood Trust, Morgan Stanley, First Nationwide Mortgage and California Federal...



The Grapevine

Fri, 18 Jan 2019
Former Federal Reserve chief Janet Yellen will speak at the Structured Finance Industry Group’s “SFIG Vegas 2019” gathering. The appearance will take place Feb. 26 in the form of a “fireside chat” with Reed Auerbach, who heads Morgan Lewis’ securitization practice. SFIG originally commissioned Yellen to speak at an October conference in Washington that it wound up canceling — paying an appearance fee that...



The Grapevine

Fri, 18 Jan 2019
Former KeyBank trader Kevin Gordon has landed a job as a portfolio manager at startup hedge fund operator Alagna Advisors. Word has it that Gordon is establishing a Connecticut outpost for the firm, where he will deal broadly in structured products. Gordon supervised asset-backed bond trading at Key from November 2017 to June 2018. He previously spent time at Cowen & Co. and Credit Suisse. Alagna, of Sea Girt, N.J., employs a special-situations...



The Grapevine

Fri, 18 Jan 2019
John Krementowski joined Fitch’s asset-backed bond rating team in New York this week as a director. Krementowski, who reports to senior director Hylton Heard, had been a senior structured-finance investment analyst at Hartford Investment since 2007. He also has worked at ING and Aetna.



The Grapevine

Fri, 18 Jan 2019
Mortgage-bond trader Steve Palmer left KeyBank’s New York office last week to join the Stamford, Conn., office of BOK Financial, the broker-dealer arm of Bank of Oklahoma. Palmer started at Key in 2016. His resume, which dates back to 1994, also includes stops at Nathan Hale Capital, BNY Mellon, Southwest Securities, J.P. Morgan and FTN Financial.



The Grapevine

Fri, 18 Jan 2019
Buy-side shop Loomis, Sayles & Co. has added a collateralized loan obligation trader to its Boston office. Michael Herald arrived this month from GMO, where he worked since 2014. Herald also has spent time at CRT Capital, RBS and Travelers.



The Grapevine

Fri, 18 Jan 2019
Well Fargo has an opening for a mortgage-bond structuring and analytics specialist in New York. The bank is focusing on analyst-level recruits with 1-3 years of experience. To apply, click on “careers” at wellsfargo.com and search for job number 5456087.



The Grapevine

Fri, 18 Jan 2019
City National Bank is seeking a relationship manager. The New York-based recruit would work on an effort in which the RBC unit offers funding to fund operators that in turn finance specialty lenders, including those that securitize their assets. Candidates can email in-house recruiter Bill Donnelly at bill.donnelly@cnb.com.



Forecasters Calling for Diminished Dealflow

Fri, 11 Jan 2019
Securitization volume appears to be headed for a down year.On average, a panel of 12 industry participants surveyed by Asset-Backed Alert is predicting that $815 billion of fresh asset-backed securities, residential mortgage bonds, commercial mortgage securities and collateralized loan obligations will price worldwide this year. That would mark a decline of 4% from the 2018 tally of $850 billion.Worldwide securitization volume was up 9% in 2018,...



Buy-Side Team Breaking With Credit Suisse

Fri, 11 Jan 2019
The managers of a $2.5 billion hedge fund are spinning off from Credit Suisse Asset Management.The group, led by Albert Sohn, is retaining control of the $2.5 billion SPF Securitized Products Fund — doing business through a newly formed firm called SPF Investment. The vehicle is expected to change hands during the first quarter.In exchange, Credit Suisse Asset Management will receive payments equal to no more than 25% of SPF’s...



JP Morgan Reclaims Underwriting Crown

Fri, 11 Jan 2019
J.P. Morgan was the world’s most active underwriter of securitized products in 2018.After losing its usual market-leader status to Citigroup in 2017, the bank surged back into first place in the early months of last year. It finished with bookrunning credit on $94.9 billion of asset-backed bond offerings, residential mortgage securitizations, commercial mortgage deals and collateralized loan obligations — good for an 11.2% market...



Manufactured-Home Deal in Pipeline

Fri, 11 Jan 2019
Cascade Financial is considering a rare securitization of manufactured-housing loans.The Gilbert, Ariz., company already has accumulated more than $100 million of the accounts in a warehouse line from MassMutual unit Barings, one source said. While it hasn’t yet decided whether to securitize, the talk is that a debut offering could come by midyear.It’s unclear if Cascade has spoken to underwriters and other service providers. Rather,...



"Print-and-Sprint' Window Closing

Fri, 11 Jan 2019
Rising asset prices are threatening to halt production of so-called print-and-sprint collateralized loan obligations.The deals began flowing in late November, as a selloff in the leveraged-loan market enabled issuers to snap up collateral at discount prices. But values in that sector have been recovering in recent weeks.The upshot: Industry participants believe only a small window remains to conduct print-and-sprint deals, in which issuers use...



Smaller CLO Dealers Face Tough Year

Fri, 11 Jan 2019
Banks that have relied heavily on refinancings for collateralized loan obligation underwriting work, as opposed to new offerings, could see their businesses shrink in 2019.While refinancings have been a boon for CLO bookrunners generally, they especially have benefitted institutions including Guggenheim, Mizuho, MUFG and RBC that struggle to compete with the leading underwriters of new CLOs. In 2018, worldwide CLO refinancings totaled $172.6...



MountainView Offers Mortgage Pool

Fri, 11 Jan 2019
MountainView Financial is auctioning a portfolio of jumbo mortgages.The $270 million pool is made up of seasoned adjustable-rate accounts with loan-to-value ratios of 70% or less. The average borrower credit score is 770.A buyer could securitize some or all of the loans. The offering is expected to draw interest from large banks including Bank of America, Citigroup, J.P. Morgan and Wells Fargo. Bids are due Jan. 17.MountainView, a Denver firm...



Brown Brothers Forms Fund

Fri, 11 Jan 2019
Brown Brothers Harriman has launched a hedge fund with a focus on structured products.The Cayman Islands-domiciled BBH-NG Structured Fixed Income Fund began trading this month with about $7 million, according to sister publication Hedge Fund Alert.While Brown Brothers already counts investments in asset-backed securities and commercial mortgage bonds among its core fixed-income strategies, those holdings mainly reside in mutual funds and separate...



Late Payments Hit Consumer Loans

Fri, 11 Jan 2019
Delinquencies among pools of online personal loans continued to creep higher in December.According to an index maintained by Kroll, delinquencies among so-called Tier 3 borrowers rose 22 bp to 4.56%. Losses also increased, by 91 bp to an annualized 21.84%. Kroll’s Tier 3 category encompasses loans to the least-creditworthy borrowers — those with scores of 630-660 originated by Avant and Lending Club. Meanwhile, delinquencies among...



Retiring Kravitt Tops Forecasters

Fri, 11 Jan 2019
Mayer Brown attorney Jason Kravitt was the securitization industry’s most accurate forecaster of issuance volume in 2018.A year ago, a panel of 11 market participants surveyed by Asset-Backed Alert forecast, on average, that $811 billion of fresh asset-backed bonds, residential mortgage bonds, commercial mortgage securities and collateralized loan and bond obligations would price over the following 12 months. The actual total was $850...



Losses Ease for Subprime Autos

Fri, 11 Jan 2019
Performance indicators for securitized pools of subprime auto loans saw some improvement during the month ended Dec. 15.According to an index maintained by Fitch, losses within those portfolios fell 5 bp during the period to an annualized 9.66%. While that measure still is high by historical standards, the expectation had been that it would rise as borrowers skipped payments in favor of holiday spending. To that end, subprime-loan delinquencies...



The Grapevine

Fri, 11 Jan 2019
Robert Hershy told his colleagues at Morgan Stanley this week that he will retire at the end of the month. The New York-based Hershy served two stints at the bank, the first from 1984 to 2008 — when he lost his job as head of structured-product sales. He then returned in 2009 and later moved into his most recent post as head of warehouse lending.



The Grapevine

Fri, 11 Jan 2019
Former Hunt Financial Securities sales specialist Kenneth Clisham started in KeyBank’s New York office on Jan. 10. Clisham, who worked at Hunt since 2017, was among a number of staffers who exited the firm amid the firm’s November merger with Brean Capital. He previously worked at Cantor Fitzgerald, Piper Jaffray, Vcross Capital, A.K. Capital, J.P. Morgan, Greenwich Capital and Merrill Lynch. His arrival at Key comes as part of a...



The Grapevine

Fri, 11 Jan 2019
S&P is seeking an analyst to help rate securitizations of transportation-related assets, including aircraft, shipping-container and railcar leases. The director-level recruit would be stationed in New York. S&P is focusing on candidates with at least seven years of experience. To apply, click on “careers” at standardandpoors.com and search for job number...



The Grapevine

Fri, 11 Jan 2019
Former Eaglewood Capital chief investment officer Steve Lee has taken a job heading a San Francisco office for Finitive, a firm that arranges funding across a range of consumer and commercial receivables. Lee had been on the sidelines since his 2017 exit from Eaglewood, where he helped carry out one of the first-ever securitizations of marketplace-originated personal loans. Earlier, he worked at Cambridge Place Investment, UBS, Fidelity...



The Grapevine

Fri, 11 Jan 2019
OneMain Financial has an opening for an analyst on its capital markets team. The recruit would be stationed in a new headquarters the company opened in New York at the beginning of this year, working on both its personal-loan securitizations and corporate-debt offerings. Since 2014, OneMain has sold $9.3 billion of personal-loan bonds and $1.2 billion of subprime auto loans. Candidates can email resumes to capital-markets head Ravi Mittal at...



The Grapevine

Fri, 11 Jan 2019
Guggenheim is looking for a collateralized loan obligation specialist in New York. The recruit would hold the title of structuring analyst. Guggenheim is focusing on candidates with 2-4 years of experience. For more information, click on “careers” at guggenheimpartners.com and search for job number 11246.



The Grapevine

Fri, 11 Jan 2019
Keri Findley has landed at San Francisco venture capital firm General Catalyst. Findley had been working as a consultant to various online lenders in California since 2017, when she left a New York post overseeing a portfolio of distressed structured products at Third Point Management. She also has worked at D.B. Zwirn & Co.



The Grapevine

Fri, 11 Jan 2019
T. Rowe Price is seeking an associate analyst to cover investments in collateralized loan obligations in Baltimore. The recruit would build deal-modeling systems and handle transaction surveillance, along with managing data on issuers and the performance of their offerings. He or she also would collaborate with the firm’s high-yield debt researchers. Candidates can email resumes to in-house recruiter Karen Robinson at...



Freddie Lures Small Banks Into RPL Market

Fri, 21 Dec 2018
Community banks are starting to show an interest in reperforming-mortgage bonds, but only from Freddie Mac.As many as 15 of the institutions looked at the senior portions of a $1.3 billion transaction that priced on Nov. 15 under the Freddie Mac Seasoned Loans Structured Transaction Trust label. Among them were American Bank, City National Bank and Dollar Bank.While it’s unclear if any wound up as buyers, their presence was significant...



LoanDepot Exiting Personal Loan Business

Fri, 21 Dec 2018
Mortgage specialist LoanDepot has pulled the plug on its personal-loan operation.The move, which ends an accompanying asset-backed bond initiative, apparently came as a confluence of factors prompted founder Anthony Hsieh to lose patience with the program.Most recently, losses among LoanDepot’s accounts began rising in November. That could be due in part to a broader trend in which holiday spending often causes borrowers to miss late-year...



Aircraft Lessor Developing Issuance Program

Fri, 21 Dec 2018
Airborne Capital plans to tap the asset-backed bond market to fund a joint venture that leases jets to airlines.The Dublin firm teamed up in September with L1 Treasury, a Luxembourg asset manager, to form AltitudeOne Aviation. The partners capitalized the joint venture with $250 million of equity, and are negotiating with banks to secure several warehouse lines.Now comes word that Airborne, which serves as the investment manager for AltitudeOne,...



Wells Alum to Lead BMO Project

Fri, 21 Dec 2018
BMO Capital has zeroed in on a longtime Wells Fargo executive to lead it into the U.S. mortgage-finance business.Michael Pryluck resigned from Wells on Dec. 18 and will start his new job as a New York-based managing director at BMO after waiting out a gardening leave.BMO began seeking candidates for the position in October, signaling that it was interested in offering warehouse financing to a swath of lenders — including those that...



Santander Keeps Auto Deals Flowing

Fri, 21 Dec 2018
Santander Consumer USA is planning two securitizations for January.One of the deals would come via the Dallas lender’s Santander Drive Auto Receivables Trust, which finances auto loans on the upper end of the subprime spectrum. The other would take place under the “deep-subprime” Drive Auto Receivables Trust label.Both are expected to total more than $1 billion.Word of the offerings follows a record year in the market for...



BofA Reconsiders Auto-Loan Holdout

Fri, 21 Dec 2018
Rumors are swirling again that Bank of America might restart its auto-loan securitization program.The talk stems from recent discussions in which BofA has sought to gauge investor demand for such offerings. Should the bank move forward, a deal could surface by mid-2019.The transactions and any that follow would be backed by prime-quality loans.BofA last securitized its own auto loans in 2012, and since then has been relying on deposits and other...



Commercial PACE Pipeline Filling

Fri, 21 Dec 2018
An increase in securitizations of commercial Property Assessed Clean Energy loans is expected to accompany widespread expansion efforts among originators of those accounts.CleanFund Commercial PACE Capital, Greenworks Lending and Petros PACE Finance are among past issuers positioned to sell more asset-backed bonds in 2019. Meanwhile, Twain Financial is seen as likely to join Redwood Trust in planning its first offering in the sector.The...



Fed Action Brings Promise for CLOs

Fri, 21 Dec 2018
Collateralized loan obligation professionals are hoping the Federal Reserve’s Dec. 19 interest-rate increase will help leveraged-loan prices stop falling.Average leveraged-loan values hovered around 98 cents from March 2017 to this October, when broad financial-market volatility caused them to begin sinking. The deterioration then picked up when the Fed indicated in November that it might move less aggressively in raising rates.That’s...



Brokerage Expanding MBS Group

Fri, 21 Dec 2018
Hilltop Securities is building up its mortgage-bond trading operation.The Dallas firm plans to hire a number of traders and sales professionals in the next few months, expanding an existing team of mortgage-bond specialists. For the moment, the operation is focused on the agency market. But it could begin dealing in private-label securities as issuance picks up.Spearheading the expansion is Chris Belhumeur, who joined Hilltop in March. He...



Israeli Shop Pooling Personal Loans

Fri, 21 Dec 2018
A money manager that has been buying unsecured personal loans from online lenders is working on its first securitization.Sources said Pagaya Investments plans to bundle about $120 million of loans it purchased from Lending Club, with a single investor lined up to buy all of the bonds. The unrated transaction is expected to price before yearend, with Cantor Fitzgerald running the books.Pagaya, headquartered in Tel Aviv, touts its ability to use...



Loan Quality Sinks for Aging CLOs

Fri, 21 Dec 2018
Asset quality among U.S. collateralized loan obligations broadly worsened in October, particularly for deals whose investment periods are over.The erosion occurred across transactions completed from 2014 to 2017, with each vintage experiencing a deterioration in its weighted average rating factor, according to Moody’s. But the 2013 class saw an improved weighted average rating factor, a key indicator of borrower health.In the 2013 and 2014...



Rated Master, Primary and Special Mortgage Servicers

Fri, 21 Dec 2018
The listing below shows the ratings of U.S. home-loan servicers evaluated by Moody’s, S&P, Fitch, DBRS and Kroll.Master servicers oversee primary servicers and, if necessary, step in as primary servicers if the original ones fail to fulfill their responsibilities. Primary servicers handle payment collections and loan reporting. Special servicers take charge of nonperforming loans by collecting payments, liquidating repossessed assets and...



Personal-Loan Fund Enters Pipeline

Fri, 21 Dec 2018
AlphaCentric Advisors is setting up a fund that would purchase online personal loans and bonds backed by those receivables.The vehicle is expected to launch during the second quarter of 2019. It would seek exposures to loans whose underlying borrowers are at the cusp of prime quality or better.While the fund would add to demand for asset-backed bond deals, personal-loan purchases by such entities has reduced the volume of such assets available to...



Sentencing Delayed for MBS Traders

Fri, 21 Dec 2018
Federal prosecutors once again have postponed sentencing for former RBS traders Matthew Katke and Adam Siegel, who each pleaded guilty in 2015 to one count of securities fraud for misleading investors about mortgage-bond prices.As they originally did in July, U.S. Justice Department officals petitioned the court to delay Katke’s sentencing because he still may have to testify in the retrial of former Nomura traders Michael Gramins and Ross...



The Grapevine

Fri, 21 Dec 2018
The final member of Imperial Capital’s structured-product brokerage team has parted ways with the firm. Trader Darius Saib exited the New York operation in October, and is looking for a new job. He had arrived in 2013 from R.W. Pressprich, and before that was at UBS, StoneCastle Partners and Fitch. Imperial began unwinding its structured-product team with the May departures of head trader Keith Grimaldi and several associates. Saib,...



The Grapevine

Fri, 21 Dec 2018
Collateralized loan obligation trader David Torres has left Crescent Capital’s Los Angeles office to join Prime Advisors, a Redmond, Wash., firm that advises insurers on investment-grade bond exposures. Torres had arrived at Crescent in 2013 from Payden & Rygel. Taking his place at Crescent is James Guido, a buy-side CLO analyst who joined the firm in January from Marv Capital. In addition to buying CLOs, Crescent maintains an issuing...



The Grapevine

Fri, 21 Dec 2018
Nomura is seeking an associate to evaluate risk models tied to its work as an asset- and mortgage-backed bond underwriter. The recruit would be stationed in New York. Nomura is focusing on candidates with 1-3 years of experience.



The Grapevine

Fri, 21 Dec 2018
Rudy Orman signed on in November as head of correspondent lending and new-product development at Reliant Bank, a role in which he focuses on the Brentwood, Tenn., institution’s purchases of newly originated mortgages. Orman, a marketing veteran, most recently worked from 2017 to this October at Promontory Fulfillment. He previously served at Carrington Mortgage, American Capital Mortgage, Marathon Asset Management, Goldman Sachs,...



The Grapevine

Fri, 21 Dec 2018
Capital-markets head Brian Bernard officially left Hunt Financial Securities on Dec. 14. Bernard was among a number of employees who either declined to move or weren’t offered new positions when parent Hunt Cos. purchased a stake in Brean Capital on Nov. 9 and began folding Hunt Financial into the operation. The former Resource America executive had arrived in 2017 with the task of building a now-disbanded underwriting unit that focused on...



The Grapevine

Fri, 21 Dec 2018
Mortgage-trading consultant Tomahawk Capital has added a whole-loan specialist to its staff. Jeff Drott, who joined the Nashville firm on Dec. 14 as a managing partner, had been in a mortgage-trading role at Mountainview Capital from 2010 to this October. He also has worked at Hermitage Funding, Beltway Capital, American Residential Equities, SN Servicing, Bear Stearns and Lehman...



The Grapevine

Fri, 21 Dec 2018
Verizon is seeking two analysts for a team that reports on the mobile-device payments backing its securitizations. The recruits would work in Basking Ridge, N.J., and Lake Mary, Fla., with a focus on risk assessments and the creation of new analysis methods. Verizon is zeroing in on candidates with at least three years of experience. To apply, click on “careers” at verizon.com and search for job number...



The Grapevine

Fri, 21 Dec 2018
S&P has added New Diligence Advisors to its list of approved due-diligence firms that review mortgage securitizations. New Diligence already was approved by Fitch, Kroll and Morningstar. The Horsham, Pa., operation is owned by Lewis Ranieri’s Selene Holdings, which is in the midst of a sale to Pretium Partners. That transaction is scheduled for completion in...



Market Pros "Fearful' With CLOs in Freefall

Fri, 14 Dec 2018
Structured-product values continue to drop.The deterioration, which began in late November, remains sharpest among junior securities — particularly the mezzanine and equity pieces of collateralized loan obligations. But other sectors increasingly are seeing similar weakening.Among CLOs, triple-B-rated bonds with lives of 5-10 years saw discount margins widen 50 bp to an average of 400 bp on the secondary market this week. The same notes...



CP Conduit Taking Shape at GreensLedge

Fri, 14 Dec 2018
GreensLedge is developing a commercial-paper conduit.The New York investment-banking firm’s vehicle would fund assets including auto loans, student loans, credit-card accounts and trade receivables for multiple clients. It is expected to begin selling its short-term paper by mid-2019.The creation of a new conduit would be a rarity. Still, many saw it as inevitable that GreensLedge would throw its hat into the ring. That’s in part...



STS Labels Suddenly Imminent in Europe

Fri, 14 Dec 2018
Designations for “simple, transparent and standardized” securitizations in Europe could be around the corner.The European Banking Authority this week finalized the requirements for so-called STS treatment. Meanwhile, the not-for-profit Prime Collateralized Securities appears to be within days of receiving approval from the U.K. Financial Conduct Authority to certify for issuers that individual deals qualify for that label.The...



MFA Preps Fix-and-Flip Program

Fri, 14 Dec 2018
MFA Financial is stockpiling residential fix-and-flip loans with an eye toward securitizing the accounts.Sources said the New York REIT began buying the loans in bulk around midyear. It is expected to have amassed a portfolio of almost $100 million soon, setting the stage for a bond offering by yearend 2019.MFA already has discussed the effort with rating-agency analysts. Credit Suisse is seen as a likely underwriter.While it’s unclear if...



AIG Broadens Underwriting Effort

Fri, 14 Dec 2018
AIG Asset Management is expanding a unit that underwrites private asset-backed bond offerings and routes them into its own investment portfolio.For some time, a team within AIG Asset Management’s private-credit group has helped specialty lenders finance assets including leases on aircraft, cellular towers, railcars and solar-energy equipment by structuring asset-backed bond transactions. The motivation, aside from collecting underwriting...



Subprime Auto Issuers Calling Deals

Fri, 14 Dec 2018
Asset-backed bond investors are scratching their heads over a wave of cleanup calls among deals backed by subprime auto loans.Since mid-October, many of the sector’s most active issuers, including American Credit Acceptance and World Omni, have exercised call options on large numbers of older transactions. The terms of auto-loan securitizations typically permit issuers to call the bonds once the outstanding principal balances fall to...



Sprout MBS Program Taking Shape

Fri, 14 Dec 2018
Sprout Mortgage at last appears ready to launch a securitization program.The company, which entered the issuance pipeline in 2016, has set its sights on the first half of next year to float its debut transaction. The catalyst: Its origination volume has grown to the point where it no longer can rely solely on whole-loan sales for funding.Indeed, Sprout recently has been writing more than $180 million of mortgages per month. It focuses on accounts...



Restraint Urged for FHFA Nominee

Fri, 14 Dec 2018
Mortgage professionals are responding to the nomination of Mark Calabria to head the Federal Housing Finance Agency by reiterating calls for the government to exercise caution in taking Fannie Mae and Freddie Mac out of conservatorship.While industry participants welcome the idea that Calabria would reduce the agencies’ roles, and thus open more business to private-label lenders, they also have expressed a belief that a hasty effort could...



BNY Fights Back in Tech War

Fri, 14 Dec 2018
BNY Mellon’s trust unit is upgrading its loan-analysis technology, with an emphasis on winning more business from collateralized loan obligation issuers.The improvements marry the bank’s existing LoanArc system with a data-retrieval and document-processing tool called Solvas/Digitize developed by Deloitte. The new version is being tested by clients in the CLO sector.LoanArc allows issuers to quickly ascertain how their loan portfolios...



Losses Climb for Subprime Autos

Fri, 14 Dec 2018
Performance indicators continue to deteriorate among securitized pools of subprime auto loans.According to an index maintained by Fitch, annualized losses rose 18 bp to 9.71% during the month ended Nov. 15 — approaching a high of 10.92% reached in November 2016. Delinquencies increased 1 bp to 5.48%, also nearing a high of 5.74% from this February. Fitch said both figures could eclipse the previous records in the months ahead, as borrowers...



The Grapevine

Fri, 14 Dec 2018
The whereabouts of several more Hunt Financial Securities executives have come to light. Kevin Cooney transferred to Brean Capital on Dec. 3, joining about a half-dozen colleagues who took similar assignments after Hunt Cos. bought a stake in the New York brokerage firm on Nov. 8 and began folding Hunt Financial into the operation. Meanwhile, Patrick Carvell, already on a long list of Hunt staffers to turn down positions at Brean, re-joined the...



The Grapevine

Fri, 14 Dec 2018
BMO Capital has hired a head asset-backed bond trader. David Stauber, who arrived in the Bank of Montreal unit’s New York office in recent weeks, most recently worked in a similar capacity at Cantor Fitzgerald from 2016 to June 2017. He previously spent time at RBC, Braver Stern and UBS. BMO long has dealt in mortgage bonds and collateralized loan obligations. It expanded into asset-backed securities with its parent’s September...



The Grapevine

Fri, 14 Dec 2018
Meanwhile, BMO Capital has closed a search for a New York-based managing director who would lead new business aimed at arranging funding for U.S. mortgage lenders, indicating that the bank is about to appoint someone to the role. BMO began collecting applications in mid-October, apparently drawing interest from a number of market veterans. The recruit’s duties would including offering warehouse financing to a swath of lenders and arranging...



The Grapevine

Fri, 14 Dec 2018
Barclays has hired a collateralized loan obligation structuring specialist. Chengnan “Tracy” Zhou arrived in the bank’s New York office last week from Societe Generale, where she worked since March. Her addition comes as part of a buildup that began with the July arrival of head CLO banker John Clements from Citigroup.



The Grapevine

Fri, 14 Dec 2018
Latonia Hubbs started in Morningstar’s New York office on Dec. 10 as a vice president covering deal evaluations, surveillance and research across a mix of asset-backed securities and collateralized loan obligations. Hubbs had been in charge of research and analytics at First Data, and before that spent time at Commerzbank, GE Capital and Moody’s. At Morningstar, she reports to asset-backed securities head Rohit...



The Grapevine

Fri, 14 Dec 2018
Citigroup has an opening for a vice president to handle due-diligence reviews for its mortgage-finance group in New York. The recruit would join a 24-member team that arranges deals backed by receivables including prime-quality and subprime mortgages, along with agency risk-transfer, reperforming, nonperforming and rental-home cashflows. Candidates can apply by clicking on “careers” at citi.com and entering job number...



The Grapevine

Fri, 14 Dec 2018
Consulting firm ICF is seeking a senior leader for its aircraft-finance practice. The New York-based recruit’s duties would include analyzing portfolios of aircraft leases and forecasting cashflows for related securitizations. ICF is focusing on candidates with at least 15 years of experience. To apply, click on “careers” at icf.com and enter job number...



The Grapevine

Fri, 14 Dec 2018
Longtime securitization specialist Frank Deutschmann has taken a New York post as chief technology officer at Simpl, a Mumbai company that bills customers on behalf of small merchants. Deutschmann most recently led business development at data-analytics company DV01 from 2016 to this May. He previously developed structured-product technology at FSI Capital and Fortis Investments, and before that worked in technology-focused roles at Trepp and...



Delay Leaves European Issuers in Limbo

Fri, 07 Dec 2018
A new wave of uncertainty has accompanied an admission by European regulators that compliance templates for the region’s new securitization rules still aren’t ready.In conceding on Nov. 30 that they wouldn’t release reporting guidelines before the controls take effect at the beginning of 2019, the European Securities and Markets Authority, European Banking Authority and European Insurance and Occupational Pensions Authority also...



Verizon Dials Up Business-Line Program

Fri, 07 Dec 2018
Verizon wants to securitize mobile-telephone payments from its corporate clients.Indications are that the company initially will bundle the receivables into deals in which it already securitizes payments on personal plans, starting with an offering in the first quarter of 2019. Business lines would make up perhaps 10% of the collateral pool for that issue.By late 2019, Verizon would set up a separate trust for its corporate contracts —...



Downgrade Threat Spooks CLO Professionals

Fri, 07 Dec 2018
Buyers and issuers of collateralized loan obligations are expressing increasing nervousness about the possibility of downgrades within the deals’ collateral pools.The concerns reflect something of a disconnect in the market. On one hand, industry participants have long worried that strong demand for leveraged loans was making it too easy for weak companies to borrow money while enabling them to reduce investor protections to perilously low...



Nelnet Jumpstarts Private-Loan Effort

Fri, 07 Dec 2018
Nelnet is taking another swing at developing a securitization program that would finance portfolios of private student loans.The effort is tied to an initiative under which the Lincoln, Neb., education lender plans to begin originating private loans for the first time. An initial offering is expected to hit the market in the second half of 2019, with subsequent deals flowing quarterly.The first few transactions could be backed by a combination of...



Issuers Prep "Print-and-Sprint' CLOs

Fri, 07 Dec 2018
A selloff in the leveraged-loan market is prompting a flurry of fresh collateralized loan obligations.The offerings would employ a “print-and-sprint” format in which the issuers would use proceeds from the bond sales to finance collateral purchases — as opposed to tapping warehouse facilities to accumulate the underlying loans beforehand. No such transactions have taken place since 2016, the last time market conditions favored...



Reverse-Mortgage Deal On the Way

Fri, 07 Dec 2018
Finance of America is preparing its next reverse-mortgage securitization.The deal, totaling more than $350 million, is expected to hit the market in the next few days. Kroll and Morningstar will rate the bonds.Word of the offering comes on the heels of a $419.5 million reverse-mortgage offering that Finance of America priced on Oct. 2 with Nomura running the books. All told, the Horsham, Pa., company has completed five such offerings totaling...



New Personal Lenders Enter Pipeline

Fri, 07 Dec 2018
As many as 12 online personal lenders are preparing to launch in 2019.Like their already-established peers, some of the start-ups would fund themselves through securitization. Other options might include pass-through certificates or straight loan sales, sometimes via partnerships with banks or credit unions.In something of a twist, the yet-to-be-identified operations plan to cater either to the highest-scoring customers or those low on the...



Dechert Shores Up CLO Team

Fri, 07 Dec 2018
Dechert has elevated two of its collateralized loan obligation lawyers to partner.Associates Christopher Desmond and Sam Gilbert, both in Boston, were among 16 lawyers to receive the partner designation on Dec. 5, effective Jan. 1.The new assignments follow the November arrival of London-based partner Cameron Mitcham from Allen & Overy. The moves were intended in part to reinforce Dechert’s CLO practice following the losses of several...



Voya Eases Up on Structured Products

Fri, 07 Dec 2018
A Voya Investment mutual fund has eased back on its purchases of structured products.The vehicle, Voya Intermediate Bond Fund, had a little more than $6 billion under management on Nov. 1, including $1.45 billion of asset-backed securities, commercial mortgage bonds, non-agency residential mortgage bonds, agency risk-transfer securities and bonds backed by rental-home cashflows. That’s down from $1.54 billion at midyear.At the same time,...



Holiday Stress for Personal Loans

Fri, 07 Dec 2018
Losses among pools of online personal loans rose in November.According to an index maintained by Kroll, the weakening was pronounced among loans to more-creditworthy borrowers. Consider that losses across pools of Tier 1 loans — to borrowers with credit scores of 710-740 — rose 63 bp to an annualized 5.53% in November. That’s just shy of a 5.92% high in November 2016. The 60-day delinquency rate also rose, by 9 bp to 1.25%....



SFIG to Request CSP Access

Fri, 07 Dec 2018
The Structured Finance Industry Group will ask Congress to expand the Common Securitization Platform to encompass private-label mortgage bonds.Dan Goodwin, the trade group’s director of mortgage policy, plans to present the case at a House Financial Services Committee hearing on a bill that calls for the unwinding of Fannie Mae and Freddie Mac. His testimony will include evidence that the program’s securitization infrastructure would...



The Grapevine

Fri, 07 Dec 2018
Mortgage-bond origination professional James Harrington has turned up at Cantor Fitzgerald’s New York office as a managing director. Harrington had worked at Deutsche Bank from 2015 to this August. He previously spent time at Shellpoint Mortgage, Fortress Investment, Lehman Brothers, J.P. Morgan and Brown Brothers Harriman. His arrival at Cantor comes as part of a large-scale staff buildup that began about a year...



The Grapevine

Fri, 07 Dec 2018
Buyside specialist Blake Eger joined Redwood Trust’s New York outpost this week with oversight of opportunistic investments in mortgage products. Eger had been at Structured Portfolio Management since 2014. She previously spent time at Merrill Lynch, J.P. Morgan and Bear Stearns.



The Grapevine

Fri, 07 Dec 2018
Asset-backed bond trader Kyle Pietila moved to Societe Generale’s New York office from RBC in November. Pietila had been at RBC since 2014, following stops at 40/86 Advisors, Chicago Mercantile Exchange and Commercial Defeasance. At SocGen, Pietila fills a vacancy created with Alan Johannsen’s July exit for BOK Financial. He reports to structured-product trading chief Alexandre...



The Grapevine

Fri, 07 Dec 2018
Asset-backed bond trader Antonio Blasetti has left Brean Capital to join KeyBank’s New York office in a similar capacity. Blasetti worked at Brean since 2012, and before that was at Gleacher & Co. Key downsized its securitization staff this year, pushing out sales co-head Michael Corsi and top trader Joe Vaccaro, among others. Brean, meanwhile, is in the process of combining with Hunt Financial...



The Grapevine

Fri, 07 Dec 2018
Haksun Kim started in Morningstar’s New York office on Dec. 3 as a senior vice president focused on ratings, surveillance and research of asset-backed securities and collateralized loan obligations. Kim had been at Kroll since 2015. He also has spent time at Moody’s and Argus Information. At Morningstar, he reports to asset-backed securities head Rohit...



The Grapevine

Fri, 07 Dec 2018
Morgan Stanley has added a lawyer to its collateralized loan obligation origination team. John Bumgarner arrived in the bank’s New York office in recent weeks from Dechert, where he represented issuers and underwriters of CLOs and credit-card bonds since 2010. Earlier, he spent time at Wells Fargo.



The Grapevine

Fri, 07 Dec 2018
Melvin Zhou joined Kroll’s New York office on Dec. 3 as a director responsible for rating bonds backed by a variety of assets, including credit-card accounts, student loans and personal loans. Zhou had worked at Fitch since 2007, and before that was at Citigroup.



The Grapevine

Fri, 07 Dec 2018
Credit Suisse has hired a mortgage-analytics specialist. Yicheng Zhong will join the bank’s New York office soon from hedge fund operator Structured Portfolio Management, where he worked since 2010. Zhong also has worked at Deutsche Bank, Platinum Grove Asset Management and RBS.



The Grapevine

Fri, 07 Dec 2018
Morgan Lewis added an associate to its securitization practice on Nov. 26. Jay Southgate joined the firm’s New York office from Thacher Proffitt, where he worked since 2004. His arrival came the day before Sarah Nelson started as a partner focused on securitization-related tax issues. Nelson formerly worked at Credit Suisse, Locke Lord and Nixon Peabody, following an earlier stint at Thacher...



The Grapevine

Fri, 07 Dec 2018
Nicole Montecalvo left her post as head of investors relations at Renovate America in November to join Chicago rental-home company Home Partners of America. Montecalvo started at Renovate in 2016, after stops at Avant and Morgan Stanley. Renovate is a routine issuer of bonds backed by Property Assessed Clean Energy loans. Home Partners also maintains a securitization...



The Grapevine

Fri, 07 Dec 2018
Longtime structured-finance professional Ken Gill has switched career tracks, starting a Miami home-renovation company called Gill Renovations in November. Gill last worked from 2010 to 2017 as part of the home-loan management group at Bayview Asset Management. Before that, he was at Fitch, S&P and KeyBank.



SEC Examines Honor's Lending Tactics

Fri, 30 Nov 2018
The SEC is investigating whether subprime auto lender Honor Finance overstated its historical asset performance before conducting its lone securitization, which is on the verge of default.Indications are that a formal examination already is under way and that the regulator soon will issue a subpoena for records and testimony from Honor. The agency also intends to order documents from Honor’s majority owner, CIVC Partners.Additional requests...



Japan Regulator Takes Aim at Investor Risk

Fri, 30 Nov 2018
Japan’s Financial Services Agency is considering a change in policy for structured-product investors, with a focus on buyers of collateralized loan obligations.Accounts of the regulator’s intentions vary widely, with some suggesting it might implement a risk-retention rule spanning securitized instruments, or for CLOs in particular. Others are pointing to higher risk weightings — again with an emphasis on CLOs.Another...



Hunt Staffers Turn Down Positions at Brean

Fri, 30 Nov 2018
A large number of Hunt Financial Securities’ employees won’t move to Brean Capital.As Hunt Financial parent Hunt Cos. initially prepared to fold the operation into Brean, widespread staff exits were seen as unlikely. Following the deal’s completion on Nov. 8, however, many of Hunt Financial’s salesmen and traders have opted to leave the company.Hunt Financial had a headcount of about 35 at the time of the merger,...



Zillow Maps Mortgage-Bond Effort

Fri, 30 Nov 2018
Zillow is looking at securitization as a primary funding source for its new mortgage business.The Seattle company, best known for its online tools for home buyers, already has discussed its bond-issuing ambitions informally with bankers and rating-agency officials. An initial offering could come in the second half of 2019.That deal likely would be backed by prime-quality jumbo loans. Eventually, the program could encompass a range of assets,...



Cautious Investors Dent Bond Values

Fri, 30 Nov 2018
Investors are retreating from asset-backed bonds.With volatility rising in the equity and corporate-bond markets amid climbing Treasury yields, the concern among buysiders is that securitized products soon could fall victim to broader financial-market weakness. In response, many have sought to lighten their exposures in recent weeks via a wave of secondary-market listings — causing spreads to widen.Buysiders also have pulled back from new...



SFIG Narrows Field for Top Post

Fri, 30 Nov 2018
The Structured Finance Industry Group is closing in on the selection of a new executive director.Sources said a search committee overseeing the interviewing process for the trade group has narrowed its list of candidates to a final few. A decision is expected before yearend, though an official announcement may not come until early 2019.If the recruit is a Wall Street executive, the thinking is he or she would want to delay an official move until...



Fiat Chrysler Eyes Subprime Lender

Fri, 30 Nov 2018
Fiat Chrysler, which is dropping Santander Consumer USA as its preferred lender, is exploring a deal to acquire subprime lender Exeter Finance.The automaker first approached Exeter’s parent, Blackstone, in September, sources said. But it apparently balked at the asking price.In August, Reuters reported that Blackstone had hired investment banks to explore a possible sale of Exeter, with hopes of fetching more than $1 billion.But in the past...



Agency Limits Seen as Short-Lived

Fri, 30 Nov 2018
Jumbo-mortgage specialists are predicting a quick reversal of the Federal Housing Finance Agency’s new limits for agency loans.The FHFA said on Nov. 27 that it plans to increase the maximum sizes of Fannie Mae and Freddie Mac mortgages in high-cost areas to $726,525 from $679,650, and to $484,350 from $453,100 in the rest of the country.The increase, championed by FHFA director Mel Watt, takes effect Jan. 1. But with Watt’s term...



Brazos Readies Bond Offering

Fri, 30 Nov 2018
Brazos Higher Education is getting ready to securitize its student loans for the first time in more than three years.The nonprofit lender plans to roll out an offering of perhaps $120 million in the next few weeks, sources said. The deal would be backed by government-guaranteed accounts the company has held on its balance sheet for years.It’s unclear whether Brazos plans to resume routine issuance or is pooling the loans now for bookkeeping...



Buyside Shop's Holdings Soar

Fri, 30 Nov 2018
(SEE CORRECTION BELOW) Modern Woodmen of America has stepped up its purchases of asset-backed bonds.The operation, which offers a mix of insurance and investment products to its 760,000 members, has purchased some $300 million of such securities this year. That’s up from about $100 million in 2017. The holdings include bonds underpinned by auto loans, credit-card receivables and student loans.Modern Woodman, a “fraternal benefit society,”...



The Grapevine

Fri, 30 Nov 2018
Nomura has hired Florian Bita as head of collateralized loan obligation banking. The New York-based Bita most recently headed CLO trading at RBC from 2013 to this April, when he was caught in a round of layoffs. He also has spent time at Cantor Fitzgerald, UBS, Deutsche Bank, Goldman Sachs and Citigroup. Despite its status as an active trader, Nomura has been nearly idle on the CLO-origination front since...



The Grapevine

Fri, 30 Nov 2018
BNY Mellon hired Gwen Collins this month as head of product management and strategy for its issuer-services division, a New York post in which she oversees the development of new services for the bank’s securitization-trust and depository-receipts businesses worldwide. Collins had been at Alpha Governance since 2016, and before that supervised banks and technology companies at the Federal Reserve. She also has worked at G Capital, Deutsche...



The Grapevine

Fri, 30 Nov 2018
Managing director Rob Steelman has left the investment team at CIFC. Steelman had been covering leveraged loans of healthcare, technology and chemical companies at the New York firm since 2006 — including those underpinning its collateralized loan obligations. He previously worked at ABN Amro, Janney Montgomery Scott, J.P. Morgan, Tague Securities and First USA Bank. CIFC has issued five CLOs totaling $3.8 billion this...



The Grapevine

Fri, 30 Nov 2018
Qbera Capital, a startup asset manager focused on financing of energy, natural-resources and agriculture companies in Asia and Africa, has hired a securitization specialist. Paul Petkov arrived in October with oversight of advising the London firm’s targeted businesses on their structured-finance options. He also serves as chief operating officer. Petkov previously served two stints at HSBC, separated by a stop at Lloyds Banking from 2016...



The Grapevine

Fri, 30 Nov 2018
Bank of Montreal is seeking a New York-based managing director to develop a new business aimed at arranging funding for mortgage lenders, in part through securitization. The bank is focusing on candidates with at least 15 years of experience. To apply, click on “careers” at bmo.com and enter job number 1800026310.



The Grapevine

Fri, 30 Nov 2018
Wellington Management has an opening for an associate-level researcher. The Boston-based recruit’s duties would include creating financial models for structured products the $1 trillion fund manager is interested in buying. Wellington is focusing on candidates with 2-5 years of experience. Applicants can contact in-house recruiter Adwoa Taylor at 617-790-7113 or...



The Grapevine

Fri, 30 Nov 2018
Amherst Pierpont Securities has transferred managing director Ryan Stroker out of its broker-dealer unit, reassigning him to the acquisition team of an operation called Amherst Residential that buys rental homes. Amherst had placed Stroker on leave in January after Finra recommended that he face disciplinary actions for allegedly violating standards for conduct in his role as a structured-product trader. His Finra registration expired Nov. 16,...



The Grapevine

Fri, 30 Nov 2018
Former Pelican Auto Finance chief executive Troy Cavallaro has resurfaced in the Wilmington, Del., office of OneMain Financial as a vice president on a sales team that focuses on originating personal loans — assets the company routinely securitizes. Cavallaro founded Pelican in 2009 and shuttered the operation this March. He previously worked at ACC Consumer Finance, Centrix Financial, Household Finance and...



The Grapevine

Fri, 30 Nov 2018
Buyside specialist Eliza Jane Crawford has transferred to TCW’s London office, from Los Angeles. Crawford, who handles analysis and trading of structured products, joined the company in 2015 from EJF Capital. She also has worked at Credit Suisse.



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Neuberger BermanNew YorkLongtime player runs its own CLO programs in the U.S. and Europe, and owns minority stakes in issuers H.I.G. Capital, Halcyon Capital, HPS Investment and Sound Point Capital via Dyal Capital unit. Major buyer through massive mutual fund business.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Market” section under “CLO...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
BlueMountain CapitalNew YorkBegan issuing in Europe in 2016, supplementing a U.S. program that dates back to 2005. Invests across the structured-product universe.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Market” section under “CLO Issuers.”



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Palmer Square CapitalMission Woods, Kan.Bought back a minority stake in October from Montage Investments, which was among its original backers. Along with deals in which it trades the underlying loans, the firm added unusual static-pool offerings in 2015. Founded by the husband-and-wife team of Chris and Angie Long.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
THL CreditBostonIssues under the name THL Credit Wind River. Emerged as an issuer after the credit crisis. CLOs complement a broader investment business that includes interests in syndicated loans and direct mid-size accounts.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Market” section under “CLO...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Benefit Street PartnersNew YorkParent Providence Equity agreed in October to sell the $26 billion operation to Franklin Templeton. One of the few big issuers without a European unit. Paasche was among a group of former Deutsche Bank executives who started the operation, led by Thomas Gahan.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Market” section under...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Apollo ManagementNew YorkHas cut back on volume of deals backed by broadly syndicated loans amid concerns about deteriorating credit performance. But there’s been no such decrease for offerings underpinned by mid-size loans. Some of its deals take place under the name Redding Ridge Asset Management, reflecting the use of a risk-retention vehicle set up in 2016. Others are offered under the MidCap Financial label.NOTE: Complete listing...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Antares CapitalChicagoOriginator of mid-size business loans resumed issuing CLOs in 2017, having remained out of the market since 2005. The catalyst for its return: The operation’s sale by GE Capital to Canada Pension Plan. Hired head CLO banker Mathew away from J.P. Morgan in February 2016 to oversee the effort.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Voya FinancialNew YorkFormer U.S. arm of ING traces its origins to the early days of the CLO market. Current staff has been in place for years, while former personnel have given rise to a number of other issuers. Among them is Covenant Credit, which agreed to a takeover by AIG in May.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Market” section under...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Golub CapitalChicagoOne of the oldest and biggest issuers of deals backed by mid-size leveraged loans. Also offers syndicated-loan deals. CLO investments mainly involve junior securities.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Market” section under “CLO...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Sound Point CapitalNew YorkCanada Pension Plan agreed in September to invest $285 million in equity pieces of the firm’s deals over the next few years. Dyal Capital last year took a minority stake in the operation, formed by former Bank of America executive Steve Ketchum with backing from Stone Point Capital. Only buys CLOs opportunistically.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Fortress InvestmentNew YorkDeals are backed by broadly syndicated loans and mid-size accounts it writes. December 2017 takeover by Softbank added to funding options. In 2016, bought the rights to manage four deals issued by Hildene Capital, ending that firm’s presence in the business. CLOs complement diversified investment and warehouse-lending activities.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
BaringsSpringfield, Mass.Resources as investment arm of MassMutual gives it ample buying power and ability to maneuver through issuance obstacles, including risk retention. Active in U.S. and Europe. Rebranded from Babson Capital in 2016, taking the name of a London subsidiary.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Market” section under “CLO...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
CVC CreditLondonCary Ho, who formerly led CLO banking at Nomura, arrived in 2017 as head of structuring with the promotion of Bergstresser to head of performing credit-product investments. Bergstresser had founded a predecessor CLO program at Apidos Capital, which combined with CVC in 2012. Originally the European private equity arm of Citigroup, CVC has operated in the U.S. since 2007.NOTE: Complete listing appeared in November 16, 2018, issue...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Och-Ziff CapitalNew YorkArrived as part of a wave of new issuers that formed after the credit crisis, and is on pace for its busiest year yet. Klein took control of issuance program when Don Young left in 2016 to form CBAM.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Market” section under “CLO...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Octagon CreditNew YorkInvestments include CLO debt and equity. Oversees purchasing decisions for XA Investments funds. As an issuer, frequently trades in and out of collateral positions. Founded as a unit of Chemical Bank and spun off from Chase Manhattan in 1999. In 2016, sold a majority stake to Conning & Co.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
KKRNew YorkIssuing program continues to regain momentum after slowing a few years ago. Branched into Europe with 2013 purchase of Avoca Capital.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Market” section under “CLO Issuers.”



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
MJX Asset ManagementNew YorkGenerally takes a buy-and-hold approach to managing collateral pools. Chief investment officer Brian Colgan left in 2017. Unlike most major players, doesn’t maintain an issuing program in Europe or invest heavily in other firms’ deals. Formed via a management buyout from Barclays, led by founders Christensen and Davey.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
CIFCNew YorkProduction has rebounded after a slow 2016, when shareholders approved a takeover by F.A.B. Partners with backing from Qatar’s royal family. Remained busy despite the sudden exit of co-chief executive Oliver Wriedt in May. Building a European issuance program under Dan Robinson, who arrived from Apollo Global in July. Huang signed on from Citigroup in January as co-head of structured-product investments.NOTE: Complete listing...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Ares ManagementLos AngelesEarly innovator has issued more than 50 U.S. deals. They include core offerings backed by broadly syndicated loans and a series from Ivy Hill unit underpinned by mid-size accounts. Also busy in Europe.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Market” section under “CLO...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Carlyle GroupNew YorkTakes a buy-and-hold approach to managing collateral pools. Has been issuing CLOs since the earliest days of the market in the U.S. and Europe. Along with deals backed by broadly syndicated accounts, occasionally offers CLOs underpinned by its own mid-size loans. Major buyer of senior and subordinate securities, but most often pursues mezzanine and equity positions.NOTE: Complete listing appeared in November 16, 2018, issue...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
CBAMNew YorkRelative newcomer formed in 2016 under the umbrella of investment firm Eldridge Industries, which is headed by former Guggenheim executive Todd Boehly. Began issuing the next year under the supervision of Damaso and Young, formerly of Och-Ziff Capital. Kim came on board from Natixis. Recent hires include loan trader Allie Fink, from Guggenheim.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
PrudentialNewark, N.J.Issues under the Dryden brand in the U.S. and Europe, often taking a creative approach. Also manages deals alongside new issuers, allowing it to share in their fees. Hoyer and Juliano have led issuance efforts since the 2013 promotion of Sara Bonesteel. Juliano additionally was named head of U.S. bank loan portfolio with the exit of Joe Lemanowicz this year. A major buyer of senior CLO securities.NOTE: Complete listing...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Credit SuisseNew YorkEmphasis on innovation produced the first vertical risk-retention structures. Among just a few with CLOs backed by both loans and high-yield bonds. Active in the U.S. and Europe, and is the only bank operating a major CLO program. Veteran group is led by Popp, whose experience as a leveraged-loan investor pre-dates the CLO market.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
BlackstoneNew YorkSince its 2008 purchase of fund operator GSO Capital, Blackstone’s CLO-management portfolio has swelled to $23.6 billion. European arm augments dealflow. The firm’s presence also reflects its 2017 purchase of a $2.4 billion loan portfolio from NewStar Financial. Does the occasional deal backed by commercial mortgages. Heavily trades collateral positions. Sobol arrived in March.NOTE: Complete listing appeared in...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Intermediate CapitalLondonGrowing European market is boosting the profile of one of the few major issuers based there. Was among the first to offer a deal in the region after the credit crisis, under its St. Paul’s brand. U.S. program started in 2014.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Market” section under “CLO...



Failure Imminent for Auto-Loan Transaction

Fri, 16 Nov 2018
Amid accusations that the company may have exaggerated its asset performance, the lone securitization from subprime auto lender Honor Finance is on the verge of default.Asset losses have caused over-collateralization for the $100 million transaction’s first-loss Class-C piece to fall to virtually zero. And with the tranche’s remaining receivables including a large number of delinquent accounts, sources said those notes likely will...



Ex-Regulators Bow Out of Card Business

Fri, 16 Nov 2018
Subprime credit-card lender Continental Finance is buying troubled rival FS Card, adding a twist to a frosty relationship between the two firms’ leaders.The deal, signed last week, would give Continental some 80,000 FS accounts totaling $38 million. Continental already is preparing to take over servicing of the receivables, which it plans to securitize through a series of privately placed transactions it long has used to fund its...



Freddie Alum Targets Distressed Mortgages

Fri, 16 Nov 2018
A mortgage-market veteran who most recently oversaw Freddie Mac’s holdings of distressed home loans and pre-credit-crisis mortgage bonds has opened his own investment shop.After leaving Freddie in October, Adama Kah formed Kah Capital of McLean, Va., with the aim of launching a hedge fund that would invest in nonperforming and re-performing mortgages, as well as newly originated home loans. He also would trade mortgage-backed securities,...



Managers Hit Pedal on Europe CLOs

Fri, 16 Nov 2018
Issuers of collateralized loan obligations are hastening to complete deals in Europe before the region’s regulatory overhaul takes effect Jan. 1.For European CLOs due to price in the coming weeks, the plan is to accelerate the closing process so the transactions can be finalized by Dec. 31 — and thereby avoid data-collection and reporting requirements under the new rules. In Europe, CLOs typically take up to two months to close.Take...



New Heights for CLO Conference

Fri, 16 Nov 2018
Opal Group’s next conference promises to be one of the largest-ever gatherings of collateralized loan obligation professionals.An estimated 1,500 issuers, investors, bankers and vendors have registered for the annual “CLO Summit,” which takes place Nov. 28-30 at the Monarch Beach Resort in Dana Point, Calif. That would easily top last year’s headcount of 1,200.It also would roughly match the turnout for Information...



MBS Issuers Cranking Out Deals

Fri, 16 Nov 2018
Get ready for a surge of mortgage-bond offerings.Nearly 20 transactions are expected to hit the market in the coming weeks as issuers and their bankers push to price deals before investors close their books for the year. The pipeline includes offerings from J.P. Morgan and New Residential Investment backed by prime-quality jumbo loans that meet the Bureau of Consumer Financial Protection’s “qualified-mortgage” guidelines. Also...



Data-Analysis Firm Expands in US

Fri, 16 Nov 2018
Structured-product analytics shop Oxane Partners is gaining traction in the U.S.The 5-year-old firm, which initially focused on Europe, has picked up four clients in New York in the past six months. It signed its first U.S. client in late 2017.The growth spurt comes as Oxane, of Gurgaon, India, has been expanding the scope of the services it offers to asset managers, including hedge fund operators. Its core business is advising clients on...



Bitcoin Loans Seen as Collateral

Fri, 16 Nov 2018
A firm that lends against borrowers’ cryptocurrency investments is considering securitization as a funding source.Unchained Capital of Austin still is in the early stages of examining how an asset-backed bond program would mesh with its business. It likely would take some time to build up the assets needed for an initial offering.Unchained’s borrowers use its loans to finance their cryptocurrency investments or for personal expenses,...



Subprime Autos Keep Sinking

Fri, 16 Nov 2018
Performance indicators for securitized pools of subprime auto loans continue to worsen.According to an index maintained by Fitch, the volume of delinquent subprime accounts increased 36 bp to 5.47% during the month ended Oct. 15 — the highest level ever recorded for the month. Annualized losses were up 14 bp to 9.53%. Fitch expects both figures to keep climbing into January as borrowers prioritize holiday shopping over debt service....



World's Top 25 Issuers Account for Half of CLOs

Fri, 16 Nov 2018
The listing below shows the collateralized loan obligation market’s most active issuers.The operations are ranked by total deal volume worldwide from Jan. 1, 2017 to Nov. 9, 2018. The sizes of their total management portfolios aren’t taken into account, nor are refinancings.While all categories of CLOs are counted, the largest programs typically fund investments in broadly syndicated corporate loans. In several cases, the issuers also...



Blockchain Lender Sets Issuance Plan

Fri, 16 Nov 2018
The securitization plans of blockchain-driven mortgage lender Figure Technologies are coming into focus.The San Francisco operation, led by Social Finance co-founder Mike Cagney, is aiming for early 2019 to complete a debut offering backed by home equity lines of credit. Amid the preparations, it has become clearer that the firm will hire outside underwriters and rating agencies — as opposed to attempting to handle those functions through its...



Dividend Readies Solar-Panel Deal

Fri, 16 Nov 2018
Dividend Finance is preparing its next securitization of solar-power equipment loans.The Rule-144A offering is expected to total about $125 million. Citigroup is running the books. The deal’s top class will carry a double-A rating from Kroll.The issue’s collateral pool mainly will encompass 20-year loans written to residential property owners. San Francisco-based Dividend also lends to commercial-property owners and offers home-improvement...



Loan Downgrades Hit CLOs

Fri, 16 Nov 2018
Asset quality worsened in September among collateralized loan obligations issued in the U.S. after the credit crisis, according to Moody’s.The erosion was reflected in weakening of their median weighted average rating factors, a key indicator of borrower health. Older transactions fared the worst, although all vintages remained within the equivalent of a “B2” rating. Analyst Aniket Deshpande attributed the deterioration to...



The Grapevine

Fri, 16 Nov 2018
Former Apollo Global executive Steve Baker is headed to the London office of J.P. Morgan, where he will head collateralized loan obligation originations in Europe after waiting out a gardening leave. Baker appears to be absorbing some of the duties of Ben Peletier, who is moving to a different leadership position on J.P. Morgan’s asset-backed bond origination team. Until September, Baker led Apollo’s investments tied to risk-shedding...



The Grapevine

Fri, 16 Nov 2018
Hunt Financial Securities’ merger with Brean Capital has claimed its first victim. Salesman Kenneth Clisham exited Hunt’s Rye Brook, N.Y., office on Nov. 8 after learning that he wouldn’t have a position at the combined operation. He had joined Hunt in 2007 with a focus on mortgage bonds, whole loans and collateralized loan obligations, following stops at Cantor Fitzgerald and Piper Jaffray. Hunt affiliate Hunt Capital purchased...



The Grapevine

Fri, 16 Nov 2018
A team of veteran mortgage-bond traders has launched a hedge fund operation called INF-YGW Capital. The New York firm, led by Raymond Yu, Bruce Graham and Brian Wilson, started trading its INF-YGW Partners Fund on Oct. 29 with an undisclosed amount of capital. Yu’s former employers include Providence Investment, American Capital, Watch Hill Investments and Prudential. Graham most recently worked at Piper Jaffray from 2014 to 2016, and...



The Grapevine

Fri, 16 Nov 2018
Lain Gutierrez left his post as a senior vice president at DBRS on Nov. 2 to start a Norwalk, Conn., operation called SolFin Capital that mainly would finance the installation of solar-power equipment in new residential developments. Gutierrez worked at DBRS since 2011, with a scope that included deals backed by clean-energy receivables. He also has spent time at advisory shop Cold Street Partners, Citigroup and Mitsui Trust. SolFin initially is...



The Grapevine

Fri, 16 Nov 2018
Mortgage-focused due-diligence shop Infinity IPS has hired two sales specialists, both as senior vice presidents. Kurt Eaton, who works in Rocklin, Calif., had been running a home-rehabilitation business since 2014. Before that, he handled relationships with Fannie Mae and Freddie Mac on behalf of Union Bank, and spent time at Deloitte, Bohan Group and Countrywide. Sandra Penichet, who is stationed in New York, most recently managed a...



The Grapevine

Fri, 16 Nov 2018
Renewable-energy finance company PACEFunding is seeking a chief financial officer. The recruit’s duties would include oversight of risk management. He or she would be stationed in Los Gatos, Calif. Applicants must have at least 10 years of experience. PACEFunding, which operates in California, Missouri and Florida, funds its lending activities in part through...



The Grapevine

Fri, 16 Nov 2018
Orchard Platform founder Matt Burton has landed at QED Investors, a venture capital firm in Alexandria, Va., that invests in financial-technology businesses. Burton had started Orchard in 2013 as a data-analysis firm catering to online lenders and buyers of their accounts. He left shortly after the operation was purchased by small-business lender Kabbage in April. Earlier, Burton worked at LiveRail, Google and...



FHFA Outlook Drives MBS Issuance Plans

Fri, 09 Nov 2018
Expectations that the Federal Housing Finance Agency soon will hike so-called guarantee fees on agency loans is driving more lenders to the private-label market.In just the past few weeks, bankers, lawyers and rating-agency executives have fielded a flurry of inquiries from nonbank lenders interested in tapping the mortgage-bond market for the first time.“We’ve talked to several lenders who aren’t issuing now but [are] very...



Credit Unions Study Student Loan Options

Fri, 09 Nov 2018
Several credit unions are exploring the possibility of issuing bonds backed by private student loans.Digital Federal Credit Union, Navy Federal Credit Union and Pentagon Federal Credit Union are among the operations interested in conducting such deals. Each already has spoken to potential underwriters and rating-agency analysts.The credit unions likely would retain some of the senior bonds from their securitizations, while distributing the rest...



Angel Oak Seeks Capital for MBS Vehicle

Fri, 09 Nov 2018
Angel Oak Capital is marketing a fund that would buy slices of its own mortgage securitizations — a sure sign the lender plans to ramp up issuance.The Atlanta firm is seeking to raise at least $600 million for the drawdown vehicle, Angel Oak Real Estate Investment Fund 2, which is designed in part to help Angel Oak meet risk-retention requirements. A source said Angel Oak already has lined up about $100 million of commitments for the...



Clean-Energy Program Eyes Issuance

Fri, 09 Nov 2018
New York Power Authority is taking a hard look at tapping the asset-backed bond market to finance loans and leases it doles out for clean-energy projects.Executives from the state-owned utility have discussed the plan with securitization bankers and advisory shops that focus on assisting companies in structuring asset-backed bond offerings. The bonds likely would be backed by low-cost loans the White Plains, N.Y., agency originates for business...



CLO Investors Testing the Market

Fri, 09 Nov 2018
Trading of collateralized loan obligations picked up in recent weeks as volatility subsided in the broader market.Secondary-market brokers circulated bid lists totaling $997.5 million of CLOs last week, up from $873.1 million the previous week and a 2018 average of $570 million, according to Empirasign. That was the highest two-week total since the first quarter. About two-thirds of offered securities changed hands.So-called BWIC lists continued...



Chinese Lessor Mulls Aircraft Deal

Fri, 09 Nov 2018
Word is circulating among bankers and investors that an affiliate of China Development Bank is eyeing securitization as a funding source for a large portfolio of aircraft leases.The expectation is that CDB Aviation will float a bond offering of perhaps $300 million in the second half of 2019. Sources said BNP Paribas and Credit Agricole, which have longstanding relationships with China Development Bank, are in the running for underwriting...



Credit Card Performance Rebounds

Fri, 09 Nov 2018
Securitized credit-card accounts showed improved performance in the third quarter, reversing a weakening trend.Charge-offs among U.S. bankcard accounts fell 24 bp to an average of 2.97%, according to an index maintained by Fitch. The percentage of bankcard accounts more than 60 days past due dipped 6 bp to an average of 1.00%. After hovering around historic lows, performance indicators for U.S. bankcards have been gradually deteriorating for the...



CLO in Highland Case Fails Key Test

Fri, 09 Nov 2018
A collateralized loan obligation issued by a Highland Capital unit engaged in a legal battle with a former executive has failed a performance test.Sources said Acis CLO 3, a $416.8 million offering issued in January 2014, hit its interest-coverage trigger last week, prompting the manager to divert payments away from mezzanine and equity investors and instead channel them to senior noteholders.The test requires the collection of specified amounts...



JD Byrider Adds to Record Volume

Fri, 09 Nov 2018
A securitization of subprime auto loans that J.D. Byrider has in the market is set to boost year-to-date issuance to a new record for the sector.So far this year, U.S. auto lenders have sold $29.5 billion of subprime-loan paper — less than $5 million shy of the full-year record for dollar volume set in 2005. J.D. Byrider’s offering, together with a deal from Santander Consumer USA, promises to lift the total above $30 billion.And...



Lower Losses on Personal Loans

Fri, 09 Nov 2018
Loss rates among pools of online-originated personal loans improved across the board in October.According to an index maintained by Kroll, annualized losses among so-called Tier 1 accounts fell 8 bp to 4.90%, while 60-day delinquencies dipped 3 bp to 1.16%. The Tier 1 category encompasses loans written by Marlette Funding and Social Finance to borrowers with credit scores of 710-740. Among Tier 2 accounts — originated by Lending Club,...



World's Leading Structured-Product Bankers, Syndicators and Traders

Fri, 09 Nov 2018
The listing below shows contact information for the top-ranking securitization professionals at the investment banks that consistently distribute the most asset- and mortgage-backed bonds worldwide.The institutions included typically have achieved rankings atop league tables published by Asset-Backed Alert.Head bankers oversee deal origination, structuring and other areas unrelated to trading and syndicate operations. Those in charge of syndicate...



US Bank Offers Fannie Certifications

Fri, 09 Nov 2018
U.S. Bank has won approval from Fannie Mae to certify that mortgages from originators including smaller banks and credit unions meet the agency’s standards.With the addition, those originators can choose between U.S. Bank and BNY Mellon for document custody and verification of accounts they sell to Fannie through its cash-loan program.Fannie previously farmed out that work entirely to BNY, but in 2016 started an expanded pilot program in...



The Grapevine

Fri, 09 Nov 2018
Asset-backed bond structurer David Hufnagel has returned to Barclays after a four-year hiatus. He joined the bank’s New York office this week as a director. Hufnagel most recently was employed at SunTrust Robinson Humphrey from 2014 to this past September. Prior to that, he spent about five years at Barclays as part of an asset-backed securities group. His resume also includes a stint in Viacom’s corporate-treasury group, preceded by...



The Grapevine

Fri, 09 Nov 2018
BOK Financial, the broker-dealer arm of Bank of Oklahoma, has hired a structured-product trader for its office in Stamford, Conn. Sung Cho most recently spent about two years at KeyBank, but left last year amid a flurry of staff departures. His prior employers include RBC, MF Global, Jefferies and Citigroup. BOK is pushing to expand its coverage of asset- and mortgage-backed securities. As part of that effort, it recently hired Alan Johannsen,...



The Grapevine

Fri, 09 Nov 2018
Barings added an executive to its securitized-product group in Charlotte last month. Austin Tucker, who joined as a director, most recently worked in the asset-backed finance group at Wells Fargo, which he joined in 2012 following a stint as a management consultant for CSC. At Barings, Tucker evaluates investments in bonds backed by commercial transportation assets, including aircraft, shipping-container and railcar leases. CORRECTION (11/16/18):...



The Grapevine

Fri, 09 Nov 2018
Sales and business-development professional Jenine Fitter parted ways with consulting firm Birdsey Group about a month ago. She had been at the Atlanta company since September 2017. Before joining Birdsey, Fitter worked as a consultant for Incenter, a mortgage-servicing business controlled by Blackstone, preceded by a stint at mortgage due-diligence shop Opus CMC. She is perhaps best known for her tenure as head of marketing and investor...



The Grapevine

Fri, 09 Nov 2018
Wenbo Xu joined the financial-advisory unit of Houlihan Lokey in recent weeks from Duff & Phelps. Xu, who is based in New York, leads a unit that helps clients assign values to portfolios of whole loans and structured products. He previously spent about seven years at Duff & Phelps, and before that was at U.S. Bank. At Houlihan Lokey, Xu is filling a void left by Gunes Kulaligil and Greg VanLear, who quit in July to launch an asset-valuation...



The Grapevine

Fri, 09 Nov 2018
Freddie Mac executive Adama Kah has left the mortgage agency, destination unknown. Kah spent more than 10 years at Freddie, most recently overseeing portfolios of non-agency mortgage bonds and whole loans. In that role, he contributed collateral for risk-transfer securitizations Freddie offers under its Structured Agency Credit Risk label. Taking Kah’s place is senior director Terin Vivian, previously a whole-loan trader at Bank of...



The Grapevine

Fri, 09 Nov 2018
Ramnik Ahuja has joined MUFG in London as a director. Ahuja is working in a deal-structuring role, with a focus on synthetic risk-transfer deals that are increasingly popular among European banks. He previously spent about four years at Deloitte. Prior to that, Ahuja worked for the U.K. Financial Conduct Authority, where his duties included representing the Bank of England on policy issues before the Bank for International Settlements and...



The Grapevine

Fri, 09 Nov 2018
Morgan Stanley has hired Miguel Tolda to structure asset-backed bond transactions. Tolda joined the bank’s London office in recent weeks with a focus on deals backed by consumer debt originated prior to the credit crisis. He previously worked at Credit Suisse from 2011 to 2017, and also has spent time at Societe Generale.



Santander Recruiting for US Underwriting Push

Fri, 02 Nov 2018
Santander is moving aggressively to build a larger securitization-underwriting business in the U.S., starting with the installation of new leadership.Former MUFG executive Devang Sodha arrived in Santander’s New York office in September as head of the banking side of the operation. That post formerly was occupied by Luis Araneda, who remains at the bank in an undisclosed role.Also new to Santander is head structured-product trader Jason...



Alarms Sound Over Europe Conduit Freeze

Fri, 02 Nov 2018
Banks in Europe increasingly are concluding that an upcoming regulatory update will force them to temporarily stop issuing securities through their commercial-paper conduits.At the center of the matter are reporting requirements that take effect on Jan. 1 as part of the region’s sweeping regulatory update for securitized products. The reporting rules originally contained an exemption for privately placed transactions, including conduit...



Structured-Product Hedge Funds On a Roll

Fri, 02 Nov 2018
Hedge funds that invest in structured products were largely profitable amid the financial market’s October carnage, which punished equity funds and took a heavy toll on high-yield bond funds.Some of the leading structured-product shops managed to produce strong gains for the month, building on year-to-date returns that already were among the best of any hedge fund strategy. Take Prosiris Capital, which told investors last week that its...



Lender's MBS Program Taking Shape

Fri, 02 Nov 2018
Mr. Cooper is broadening the scope of its securitization program.Since changing its name from Nationstar Mortgage in August 2017, the Coppell, Texas, company has been originating home loans that don’t meet the Bureau of Consumer Financial Protection’s “qualified-mortgage” standards. All along, its plan has been to tap the mortgage-bond market as a primary funding source, with a deal tentatively slated for the second half...



Sallie Kills Lending Club Partnership

Fri, 02 Nov 2018
Sallie Mae Bank is upending its personal-loan program.The Newark, Del., operation said in a third-quarter earnings call on Oct. 22 that it had stopped buying such credits from outside originators due to worse-than-anticipated borrower performance. While it didn’t specify who wrote of the accounts, all signs point to Lending Club as the exclusive source.Sallie’s strategy of buying personal loans from an outside originator reflected a...



More Supply From Used-Car Chain

Fri, 02 Nov 2018
An auto lender that caters to customers without credit histories is adopting a more active securitization schedule.Tricolor Auto of Dallas is preparing its second asset-backed bond deal of 2018, marking the only time it has attempted more than one such offering in a year. The $100 million transaction is expected to hit the market in the coming weeks with Credit Suisse running the books.Tricolor has completed four securitizations since it started...



Jefferies Pitches Revolving MBS

Fri, 02 Nov 2018
Jefferies is offering to assemble a novel type of revolving securitization for mortgage originators.The offerings would take the place of warehouse lines, with the bond issuers gaining temporary funding for accounts that they plan to sell to whole-loan buyers including Fannie Mae and Freddie Mac — and swapping in new receivables along the way.Jefferies already has been conducting similar transactions with its own loans through a vehicle...



North Mill Reviving ABS Program

Fri, 02 Nov 2018
North Mill Equipment is returning to the asset-backed bond market.Sources said the Norwalk, Conn., equipment-finance company is laying the groundwork for a deal with an estimated size of about $100 million. It is expected to hit the market during second half of 2019.It’s unclear whether the bonds would be backed by loans or leases. North Mill’s two previous deals both were backed by loans — most recently a $111.2 million...



Accounting Change Perplexes Pros

Fri, 02 Nov 2018
Industry professionals are beginning to focus their attention on a new accounting standard for estimating loan losses.Although the Financial Accounting Standard Board’s directive for calculating “current expected credit losses” doesn’t take effect until 2020, bankers and lawyers say they’re increasingly concerned about the scope and complexity of the rule change. They confess to having little insight at this point...



Data Firm Seeks Non-QM Work

Fri, 02 Nov 2018
DV01 is hoping its debut appearance as a loan-data agent on a securitization of non-qualified mortgages will help it win more business in the space.DV01’s first such appointment came on a $310.7 million offering that New Residential Investment priced on Oct. 19 with Credit Suisse, Citigroup and Nomura running the books. Now, the New York firm is intensifying its marketing efforts in the area while highlighting the assignment as an example...



The Grapevine

Fri, 02 Nov 2018
Laurie Lawler started work as a managing director on Societe Generale’s securitization-banking team in New York in the past week. Lawler previously helped oversee a similar group at HSBC, which she joined in 2006 after a stop at Citigroup. She was hired at SocGen by Daniel McGarvey shortly before he resigned in August from his post as head securitization banker for a move to BNP Paribas. Syndicate chief Robert Pucel has assumed...



The Grapevine

Fri, 02 Nov 2018
Small-business lender Kabbage has added a member to its capital-markets team. Ashley Putterman, who joined the company’s New York office in September, had been employed in a similar role at Spruce Finance from 2014 until that operation shut down in July. Putterman also has worked at Loughlin Management, ProCure and Miller Buckfire. Kabbage has completed four securitizations totaling $790 million since entering the market in...



The Grapevine

Fri, 02 Nov 2018
TD Bank has added Tim Garrett to its New York office, assigning him to work under head asset-backed bond trader Geoff Chang. Garrett had been at Citigroup since 2003, most recently as a director in the bank’s London office. He also has worked at Lazard.



The Grapevine

Fri, 02 Nov 2018
Hedge fund operator Och-Ziff Capital has hired an employee whose responsibilities include helping to structure asset-backed bonds it buys privately from issuers. Alex Song, who starts in the firm’s New York office in January, had been working in a similar capacity at Crayhill Capital since 2015. He also has worked at Bain Capital and Morgan Stanley. At Och-Ziff, Song is part of a private credit team that offers direct financing to small-...



The Grapevine

Fri, 02 Nov 2018
In a corresponding move, Sloan Sutta has signed on as a managing director in Crayhill Capital’s private-credit group in New York. He had been employed at Och-Ziff Capital from 2015 until this July, handling tasks that have been picked up by former Crayhill staffer Alex Song. However, Sutta isn’t a direct replacement for Song at Crayhill. Sutta also has worked at Garrison Capital and Credit...



The Grapevine

Fri, 02 Nov 2018
Wynkoop Financial has hired a head of business development. John Tomeo joined the Greenwood Village, Colo., hedge fund manager’s Southampton, N.Y., office this week as a managing director with the primary task of lining up investors for its Wickapogue Structured Credit Fund. Tomeo had been at fund-marketing firm Hedge Connection since 2016. Before that, he worked at Liberty SBF, Angel Oak Capital, Treesdale Partners, Duncan-Williams, RBS...



The Grapevine

Fri, 02 Nov 2018
T. Rowe Price is seeking an associate analyst to cover investments in collateralized loan obligations. The Baltimore-based recruit would build CLO surveillance software and organize data about issuers and their deals. He or she would work alongside Jean Marc Breaux, who arrived in September from Aegon USA. Candidates can email resumes to in-house recruiter Karen Robinson...



The Grapevine

Fri, 02 Nov 2018
Helene Penido, a leveraged-loan sales and trading specialist, was laid off by BNP Paribas last week. Penido had worked in the bank’s New York office since 2000. She and her colleagues handled duties including the placement of loans with collateralized loan obligation issuers.



The Grapevine

Fri, 02 Nov 2018
Look for online personal lenders to fund more of their receivables by issuing pass-through certificates, with Morningstar rating the deals. The outlook was expressed on a Nov. 1 panel discussion that servicer First Associates hosted alongside Morningstar in New York. Speakers included Lending Club capital-markets chief Val Kay and Morningstar president Brian Grow, with First Associates executive Larry Chiavaro as moderator. Personal lenders...



SFIG Facilitating Transition From Libor

Fri, 26 Oct 2018
The Structured Finance Industry Group is taking a leading role in replacing Libor as a benchmark for existing structured products.The project’s centerpiece would be an online tool that would allow issuers to connect with investors in their outstanding deals, for purposes of polling them on a Libor replacement upon the interest rate’s phase-out in 2021.But SFIG wouldn’t directly commission the system. Rather, it is aiming for...



Redwood Gearing Up for PACE Initiative

Fri, 26 Oct 2018
Redwood Trust is exploring the possibility of writing and securitizing Property Assessed Clean Energy loans.The Mill Valley, Calif., REIT began researching the business a few months ago, and apparently is leaning toward moving ahead with the effort. Initially, it would focus on PACE loans to commercial-property owners.The accounts would include, for example, financing for mall operators that want to retrofit their properties with solar panels or...



Auto-Finance Executives Wage Legal Battle

Fri, 26 Oct 2018
A spat between the founder of MUSA Auto Finance and its former president is complicating the company’s securitization plans.The Dallas firm, which specializes in originating leases for Tesla, sees the asset-backed bond market as a long-term funding source. In 2016, it hired Richard Frunzi away from subprime auto lender Exeter Finance to spearhead its securitization efforts.But MUSA fired Frunzi on Sept. 5. In response, Frunzi filed a...



Agencies Grab Focus at SFIG Event

Fri, 26 Oct 2018
Efforts to pare the activities of Fannie Mae and Freddie Mac will be the core topic at the Structured Finance Industry Group’s “Residential Mortgage Finance Symposium.”A capacity crowd of more than 1,000 industry professionals are expected to attend the conference, which takes place Oct. 29-30 at the Conrad New York hotel. That about matches the turnout from last year, which marked the event’s debut.As was the case in...



Alliance Data's Issuance to Increase

Fri, 26 Oct 2018
Credit-card lender Alliance Data is implementing a strategy that promises to boost its output of asset-backed securities.The Columbus, Ohio, company — the most active issuer of retail-branded credit-card bonds — is shifting away from its longstanding tactic of financing cards for mall-based apparel stores including Bon-Ton, J. Crew and Victoria’s Secret. Instead, it is targeting a broader swath of businesses including big-box...



Lone Star's NPL Bonds Evolving

Fri, 26 Oct 2018
Lone Star Funds’ nonperforming-mortgage securitizations increasingly are reflecting a play by the company to rent out repossessed homes.The Dallas private equity firm, the most active issuer of nonperforming-mortgage bonds, long has included some rental-home cashflows in those deals’ collateral pools. But it has been creating larger allocations for rental receivables in its recent offerings.In the near term, that could lead to an...



Fitch Adds Third-Party Reviewer

Fri, 26 Oct 2018
Fitch has added New Diligence Advisors to the list of due-diligence shops approved to supply it with reviews of mortgage securitizations.New Diligence, a Horsham, Pa., startup owned by Lewis Ranieri’s Selene Holdings, joins about 10 other firms Fitch relies on to help assess the quality of collateral loans. New Diligence already was approved to perform reviews for Kroll and Morningstar.Other reviewers on Fitch’s list include American...



Data Firm Sounds Storm Warning

Fri, 26 Oct 2018
Data-analytics firm TheNumber is telling investors in agency risk-transfer bonds that their exposures to potential losses are larger than many realize.The warnings reflect simultaneous trends toward longer deal terms and stronger hurricanes. Over time, TheNumber believes the combination could lead to enough property damage to wipe out subordinate bondholders.Consider that Freddie Mac used to issue its risk-transfer deals with a requirement that...



Broker-Dealer Pitching Blockchain

Fri, 26 Oct 2018
Propellr, which uses blockchain technology to structure unrated commercial mortgage securitizations for small issuers, wants to expand its coverage to include asset-backed securities and collateralized loan obligations.Previously, the New York broker-dealer mainly financed small-balance commercial mortgage transactions. But its technology is adaptable for other asset classes, and a spokesman confirmed it is in early-stage talks with business- and...



Santander Lines Up Auto-Loan Deals

Fri, 26 Oct 2018
Santander Consumer USA plans to complete two more subprime auto-loan securitizations this year.The offerings reflect increasing loan volume. The Dallas operation’s originations totaled $7.9 billion during the second quarter, up 45% from the year-earlier period.One or both of the upcoming deals might come via the Santander Drive Auto Receivables Trust, which Santander uses to securitize loans to standard subprime borrowers. Or they could...



Wider Scope for MFA Program

Fri, 26 Oct 2018
MFA Financial’s upcoming home-loan securitization program could be more expansive than originally anticipated.In addition to bonds backed by accounts that don’t meet the Bureau of Consumer Financial Protection’s “qualified-mortgage” standards, the New York REIT is interested in selling securities underpinned by investment-property loans and home-equity lines of credit.The operation began setting plans for its...



The Grapevine

Fri, 26 Oct 2018
Former Wells Fargo mortgage-bond banker Peter Perna resurfaced this week in the Charlotte office of Bayview Asset Management. Perna holds the title of assistant treasurer at the Coral Gables, Fla., firm, which issues bonds backed by nonperforming and reperforming home loans. He had been on the sidelines since getting laid off from a warehouse-financing and bond-structuring role at Wells in August. He worked there since 2011, following stops at...



The Grapevine

Fri, 26 Oct 2018
Mortgage-bond specialist Dan Sikora left J.P. Morgan last week to take a job at Pretium Partners. Sikora’s tasks appear to include efforts to integrate the New York firm’s business with that of mortgage servicer Selene Holdings, which it agreed to buy from Oaktree Capital and Ranieri Partners on Oct. 18. To that end, he likely will be involved in the trading of whole loans, as opposed to the rental properties and nonperforming...



The Grapevine

Fri, 26 Oct 2018
Semper Capital has added a mortgage-bond specialist to its investment team. Sandeep Bangar arrived at the New York firm in September from Citigroup’s trading desk, where he started in 2016. Bangar also has worked at Nomura. Semper manages more than $2.5 billion of gross assets through a hedge fund, two mutual funds and separate accounts.



The Grapevine

Fri, 26 Oct 2018
Capital One’s financial-institutions group has hired another executive away from BMO Capital’s securitization team. Brian Zaban, a Chicago-based director, had been at BMO since 1997, most recently as the manager of the bank’s structured-finance exposures. He earlier worked at Coopers & Lybrand. The CapOne team offers a mix of financing services to lenders. It has added numerous personnel this year, including former BMO employee...



The Grapevine

Fri, 26 Oct 2018
Marketing veteran Rudy Orman has parted ways with Promontory Fulfillment, a Danbury, Conn., operation that advises mortgage lenders and banks on loan sales, compliance and technology. Orman had been at the company since September 2017. He previously worked at American Mortgage Capital, Marathon Asset Management, Goldman Sachs, Countrywide and HSBC.



The Grapevine

Fri, 26 Oct 2018
Robert Gargiulo has joined Morningstar’s New York office as head of business development for the agency’s mortgage-bond rating group. Gargiulo had been working in an analytical role at S&P since 2015. He also has worked at RBS and predecessor Greenwich Capital, along with Bloomberg. At Morningstar, he reports to managing director Brian Vonderhorst.



The Grapevine

Fri, 26 Oct 2018
Morgan Lewis is seeking an experienced attorneys to cover a range of work involving structured products. The recruits would work in New York, Washington or Chicago. Candidates can email resumes to recruiting manager Melissa N. Meyer at melissa.n.meyer@morganlewis.com.



The Grapevine

Fri, 26 Oct 2018
Demica, a London firm that helps clients package their trade receivables into securitizations, has opened a New York office. Leading the outpost is origination head Andrew Holmes, who had been working at Barclays since 2009, most recently as head of trade finance for North America and South America. Demica, originally a data company, has been broadening its business in recent...



The Grapevine

Fri, 26 Oct 2018
Salesman Jesse Maffei joined Barclays’ New York office last week. Maffei most recently worked at StormHarbour Securities from 2016 until this March. His former employers also include RBS, Bear Stearns and Morgan Stanley.



The Grapevine

Fri, 26 Oct 2018
S&P has elevated Alastair Bigley to a senior director post in which he is in charge of advising issuers and buyers of European mortgage bonds on the agency’s rating processes and its views on market developments. The London-based Bigley had been a director at the agency, where he started in 2016. He previously worked at Lloyds Banking, DBRS and...



The Grapevine

Fri, 19 Oct 2018
Deutsche Bank has an opening for a credit officer in its New York office. The recruit would work as an assistant vice president within the bank’s risk-management division, with a focus on advising on exposures it takes as an underwriter of asset- and mortgage-backed bonds. Candidates can apply at db.com by clicking on “careers” and searching for job number...



The Grapevine

Fri, 19 Oct 2018
Correspondent-lending specialist Bela Donine has joined the Anaheim, Calif., office of Carrington Mortgage, where she handles acquisitions of loans that don’t meet the Bureau of Consumer Financial Protection’s “qualified-mortgage” standards. Donine worked at Impac Mortgage since 2016, following stops at Homebridge Financial, Greenlight Loans, MAGI Cos., Guggenheim and Macquarie. Carrington, which was a frequent issuer of...



The Grapevine

Fri, 19 Oct 2018
Stream Asset Management has followed through with plans to launch a hedge fund whose investments include structured products. The Red Bank, N.J., firm started trading its Stream Credit Opportunities Partners this month with $44 million of equity, according to sister publication Hedge Fund Alert. Stream, which also runs an equity fund, changed its name from Pinelands Capital in the past...



The Grapevine

Fri, 19 Oct 2018
Natixis wants to hire an associate for its asset-backed bond underwriting group in New York. The recruit mainly would assemble deals backed by unusual assets. Candidates can email resumes to Natixis recruiting manager Susan Bella at susan.bella@natixis.com



The Grapevine

Fri, 19 Oct 2018
Digital Risk is seeking a business-development specialist with a background in the mortgage market who would pitch the Maitland, Fla., firm’s due-diligence services to loan buyers and originators. For more information, email diligence-services head Sadie Gurley at sadie.gurley@digitalrisk.com.



The Grapevine

Fri, 19 Oct 2018
Randal Johnson has resurfaced in a capital-markets and asset-management role at Shelter Growth Capital, a Stamford, Conn., firm that buys and securitizes residential and commercial mortgages. Johnson was laid off by Deutsche Bank in July from his post as a managing director in charge of banking for deals backed by marketplace-originated personal and small-business loans. He had started at the bank in 2005 with a focus on mortgage finance. Before...



The Grapevine

Fri, 19 Oct 2018
Cass Tokarski is leaving his New York post as co-head of Cantor Fitzgerald’s structured-product desk, with one source suggesting that he is exiting the securitization business altogether. Tokarski joined Cantor in 2014 from RBS. He also has spent time at UBS and Goldman Sachs. His exit comes amid an apparent restructuring of the securitization team at Cantor, which has been hiring aggressively over the past year but more recently has seen a...



The Grapevine

Fri, 19 Oct 2018
Mortgage-bond specialist Mayur Madkaikar landed at New York hedge fund operator Millennium Management last week as a portfolio manager. Madkaikar had been working at Structured Portfolio Management since 2016. He served two stints at Citadel before that, separated by some time at Carrington Capital. He also counts Lehman Brothers as a former employer.



The Grapevine

Fri, 19 Oct 2018
Dell is seeking a corporate counsel to help support its capital-markets operations, including its equipment-lease securitization program. The recruit would be stationed in Round Rock, Texas. Dell is focusing on candidates with at least eight years of experience. The computer maker has completed two securitizations totaling $1.7 billion this year. For more information, click on “careers” at dell.com and search for job number...



IMN Assembles Asia Players

Fri, 19 Oct 2018
Information Management Network is anticipating that some 600 market professionals will attend a structured-finance conference it is hosting in Hong Kong.The “Asian Structured Credit Summit,” scheduled for Oct. 23-24 at the JW Marriott hotel, is geared largely toward U.S. issuers that want to distribute their deals among insurers, private equity firms and other investors in China.The agenda spans asset classes, with an emphasis on...



CLO Asset Quality Remains Solid

Fri, 19 Oct 2018
The quality of loans underpinning U.S. collateralized loan obligations issued after the global financial crisis held steady in August.The median weighted average rating factor, a key indicator of borrower health, improved marginally, while median defaults among the collateral pools remained at zero, according to Moody’s. But holdings of loans rated “Caa1” or lower ticked up 3 bp to a median of 3.7% of outstanding loan balances....



Small-Business Deal In the Pipeline

Fri, 19 Oct 2018
Small-business lender Credibly is preparing its first securitization.The $200 million offering is expected to hit the market in the coming weeks with SunTrust running the books. Kroll will rate the deal.Credibly writes its loans online, offering business-expansion and working capital financing of up to $250,000 and merchant cash advances up to $150,000. The accounts carry terms of 6-17 months, with monthly factor rates starting at 1.15.In July,...



TIAA Tees Up Jumbo MBS Deal

Fri, 19 Oct 2018
TIAA is working on another securitization of prime-quality jumbo mortgages.An offering of perhaps $350 million could price as soon as next week. The collateral pool encompasses 489 loans originated by online lender EverBank, which TIAA purchased last year and folded into a new unit called TIAA Bank.TIAA issued its debut jumbo-mortgage deal on Feb. 8, when it sold $381.5 million of bonds via EverBank Mortgage Loan Trust. Then, on June 21, TIAA...



New Life for RV Loan Offerings

Fri, 19 Oct 2018
Securitizations of recreational-vehicle loans are set for a comeback.Lenders including Mountain America Credit Union, SouthEast Bank and USAA have explored the possibility of conducting such offerings — the last of which took place in 2008. Bankers also have approached rating-agency officials and investors in recent weeks to discuss the plans.Early indications are that the offerings, totaling $100 million to $300 million apiece, could start...



White House Seeks FHFA Action

Fri, 19 Oct 2018
The idea of scaling back Fannie Mae and Freddie Mac without legislative approval is gaining traction.The Trump Administration floated the concept a few months ago as an option should Democrats take control of Congress in the November elections, suggesting that the Federal Housing Finance Agency could pursue such action on its own. Now comes word that White House officials are favoring that approach no matter what happens at the polls.The changes...



CLO Dealers Pushing Europe Sales

Fri, 19 Oct 2018
Collateralized loan obligation dealers are urging issuers in the U.S. to structure more of their deals so that they comply with Europe’s risk-retention rule.So far, however, they are finding little cooperation.The dealers are aiming to reverse a trend that developed after a U.S. Appeals Court panel ruled in February that CLOs should be exempt from the Dodd-Frank Act’s risk-retention rule. No longer bound by that measure, many issuers...



Bill Sparks Talk of Airport-Receivable Bonds

Fri, 19 Oct 2018
Securitization could help finance the privatization of airports across the U.S.A bill signed into law on Oct. 5 by President Trump that reauthorizes funding for the Federal Aviation Administration includes a component that opens every airport in the country to partial privatization. Previously, only 10 airports were eligible.The idea is to bring in private-sector capital for improvements and new construction. The businesses that might pursue such...



Kondaur Founder Starting Anew

Fri, 19 Oct 2018
Longtime subprime-mortgage professional Jon Daurio is setting up a new origination business that would fund itself through securitization.Daurio, best known as the founder of Kondaur Capital, appears to be close to locking in startup backing for the operation. He is aiming for a first-quarter launch. Discussions already are under way with rating-agency officials about the possibility of conducting securitizations.Daurio would run the business...



Broker Taps Market Vet for Underwriting Role

Fri, 19 Oct 2018
Rob Riviere, a securitization pioneer who helped structure the first student-loan and subprime auto-loan deals, has resurfaced at Heritage Financial.Riviere has been tasked with building a structured-finance trading and underwriting operation in the vein of Riviere Securities, an investment-banking firm he started. To support the effort, Heritage also has hired former Riviere Securities executive Larry Bowman.Riviere Securities was known for...



Auriga, NatAlliance Discuss Joining Forces

Fri, 19 Oct 2018
Broker-dealers Auriga USA and NatAlliance Securities are negotiating a merger.The discussions have reached an advanced stage in recent months, with the two firms already seeking approval from Finra to operate under the NatAlliance name. NatAlliance’s leaders apparently would own about two-thirds of the combined business, with Auriga’s partners holding the rest.Auriga’s employees would remain in the firm’s New York...



Brean Negotiating Hunt Financial Marriage

Fri, 12 Oct 2018
Broker-dealer Brean Capital is in talks to merge with Hunt Financial Securities.Word on the street is that the two operations have been negotiating for months and could finalize an agreement as early as next week, presumably with Brean absorbing Hunt Financial’s operations. While some layoffs are possible, a source described the businesses as largely complementary.Brean’s core businesses include sales, trading and investment-banking...



Novel Student-Loan Program In Development

Fri, 12 Oct 2018
Education lender Funding University is planning to issue asset-backed bonds, with longtime structured-finance professional Jeffrey Nabi leading the effort.The Atlanta operation, which differentiates itself from competitors by lending to undergraduates without co-signers, aims to complete its first securitization in the coming year. The offering would total perhaps $200 million, with routine transactions to follow.Nabi will meet with banks in the...



CLO Refis Swing Back Toward Short Terms

Fri, 12 Oct 2018
Collateralized loan obligation issuers are suddenly favoring short-term refinancings.Issuers had for months been leaning away from those arrangements, in which outstanding bonds are assigned new terms that include reinvestment periods of up to two-and-a-half years. Instead, the operations gravitated toward so-called reissues in which they create new bonds with reinvestment windows of about five years.But funding costs have fallen for the...



MBS Fund Keeping Ahead of Market

Fri, 12 Oct 2018
Garrison Point Capital has been tweaking the strategy of a rapidly growing mutual fund that mainly buys mortgage bonds.The firm, in its role as subadvisor for AlphaCentric Advisors’ AlphaCentric Income Opportunities Fund, mainly has been purchasing home-loan paper issued before the credit crisis. But as those products have become more scarce, it recently broadened its scope.Garrison Point has been buying more risk-transfer bonds issued by...



Utilities Considering Cat-Bond Sales

Fri, 12 Oct 2018
More power and gas companies are looking at the possibility of issuing catastrophe bonds following a first-of-its kind offering from Pacific Gas & Electric.Sources said Florida Power & Light and Southern California Edison are among the utilities eyeing cat-bond offerings as a way to transfer the risk of infrastructure damage from wildfires and floods — perils seen as increasingly likely due to climate change.“Utility companies are an...



Galton Bumps Up Offering Size

Fri, 12 Oct 2018
Galton Capital is preparing is largest jumbo-mortgage securitization to date.The $457.9 million deal is expected to hit the market in the next week. Many of its underlying loans don’t meet the Bureau of Consumer Financial Protection’s “qualified-mortgage” standards.New York-based Galton previously completed a $254 million deal in March 2017 with Citigroup running the books and a $316.9 million offering this January, via...



Flagstar to Offer Floating-Rate MBS

Fri, 12 Oct 2018
Flagstar Bank is adding a floating-rate component to a home-loan securitization that’s about to hit the market.The deal, totaling perhaps $300 million, already was expected to feature an unusual collateral pool combining subprime jumbo mortgages and agency-eligible loans on single-family investment properties. Now comes word that the offering will include both fixed- and floating-rate notes.The last time investors got a crack at newly...



Buyers Impatient Over Aircraft Deals

Fri, 12 Oct 2018
Investors are pressuring issuers of aircraft-lease bonds to bring their offerings to market faster.The discussions revolve around a prevailing timeframe of 8-10 weeks to structure and distribute a deal in the asset class. With demand running high but supply recently dropping off, the hope is that the process could come more in line with the 3-4 weeks that is the standard for mainstream offering types.Buysiders approached issuers and underwriters...



New Penn Boosts LoanScorecard Tool

Fri, 12 Oct 2018
New Penn Financial is expanding its use of technology that helps it buy home loans that don’t meet the Bureau of Consumer Financial Protection’s “qualified-mortgage” standards.The web-based tool, developed by financial-technology firm LoanScorecard, allows mortgage companies to quickly determine whether prospective borrower accounts would meet their underwriting standards. New Penn, which has been using the program...



Subprime Borrowers Fall Behind

Fri, 12 Oct 2018
Delinquencies among securitized pools of subprime auto loans continue to revert toward record levels.According to an index maintained by Fitch, the volume of past-due subprime accounts rose 22 bp to 5.11% during the month ended Sept. 15. Delinquencies had reached an all-time high of 5.74% in February before retreating and then climbing again in recent months. Now, even more borrowers are expected to fall behind as they divert cash for yearend...



Shapiro Leaning on SEC Settlement

Fri, 12 Oct 2018
Former Nomura trader Ross Shapiro has again asked that a criminal securities-fraud charge against him be thrown out.Shapiro’s attorneys submitted the request with U.S. District Court in Hartford on Oct. 5. Their reasoning: Just two days earlier, Shapiro settled a similar civil complaint from the SEC in U.S. District Court in New York.That arrangement would appear to satisfy a June order in which the judge overseeing the criminal matter,...



Bloomberg Reviewing Personal Loans

Fri, 12 Oct 2018
Bloomberg has teamed up with analytics firm PeerIQ to assign values to online personal loans.The assessments would be available under an existing service called Bloomberg Valuation, with New York-based PeerIQ supplying the data.PeerIQ already tracks loans from 25 personal-loan originators, including Lending Club, Marlette Funding, Prosper Marketplace and Social Finance. Bloomberg could eventually offer values for securities backed by those...



The Grapevine

Fri, 12 Oct 2018
Ying Shen, who stepped down as head of mortgage-bond research at Deutsche Bank in September, has taken a job at BlackRock. Word has it that Shen will assume a similar role as a managing director at the New York investment giant in the coming weeks, reporting to top mortgage-product researcher Dapeng Hu. Shen had worked in Deutsche’s New York office since 2007, following stops at J.P. Morgan and Goldman...



The Grapevine

Fri, 12 Oct 2018
Collateralized loan obligation researcher Bjarni Torfason has parted ways with Deutsche Bank. Torfason, a vice president, had been stationed in the bank’s New York office since 2012. He previously worked in a banking-evaluation role for Iceland’s parliament, and spent time at Icelandic bank Glitnir and predecessor Islandsbanki.



The Grapevine

Fri, 12 Oct 2018
Mortgage-product specialist Michael Daurio has signed on as a portfolio manager at VWH Capital, opening an Orange, Calif., outpost for the New York fund operator. Daurio previously oversaw loan pricing and risk modeling as head of capital markets at Kondaur Capital, where he worked since 2008. VWH, led by Vivien Huang, invests in securitized instruments, along with a mix of distressed credit products and whole...



The Grapevine

Fri, 12 Oct 2018
Alan Johannsen resurfaced last week in BOK Financial’s Tulsa, Okla., office with a focus on structured-product sales. Johannsen had been working in a trading role at Societe Generale from 2015 until a few months ago, having arrived at the bank in 2015 after stops at KGS-Alpha, RBS, Bank of America and Bank One. BOK, the broker-dealer arm of Bank of Oklahoma, recently began branching into asset- and mortgage-backed...



The Grapevine

Fri, 12 Oct 2018
Goldman Sachs has added a structured-product risk and valuation analyst to its staff. As a member of the bank’s Winnetka, Ill., office, Corissa DeRose works with an asset-management group that helps oversee purchases and trades of mortgage bonds and whole loans. DeRose had been employed at HSBC since 2007, most recently as part of a group that is unwinding the bank’s illiquid holdings. She also has spent time at Opus Capital and...



The Grapevine

Fri, 12 Oct 2018
Roy Park joined Guggenheim’s Santa Monica, Calif., office in September as a risk analyst focused on the company’s structured-product investments. Park had been monitoring performance indicators for mortgage products at investment firm Wedgewood since 2017, following stops at Hudson Advisors, Mortgage Industry Advisory, Calpers, Credit Suisse, Washington Mutual and GE...



The Grapevine

Fri, 12 Oct 2018
James Zheng has joined MUFG’s asset-backed securities underwriting team in a structuring and origination role. Zheng had been working in a similar capacity at Natixis since 2016, and before that was at Deutsche Bank and Morgan Stanley.



The Grapevine

Fri, 12 Oct 2018
Morningstar is seeking a vice president or senior vice president to analyze asset-backed securities and collateralized loan obligations in its New York office. Candidates must have at least five years of experience. The recruit would report to asset-backed bond rating head Rohit Bharill. Applicants can email resumes to Bharill at rohit.bharill@morningstar.com.



The Grapevine

Fri, 12 Oct 2018
Trustmoore, which has been seeking to expand its corporate-trust and administrative functions in Europe’s structured-finance market, brought in Huub Mourits last week as head of its capital-markets practice. Mourits is stationed in Amsterdam. He most recently led a group that helped clients establish and run collateralized loan obligation issuing vehicles at TMF Group, which he joined in 2001 from NIBC...



The Grapevine

Fri, 12 Oct 2018
Christopher Esposito landed a contract in September to assign values to structured products for New York hedge fund operator Millennium Management. Esposito has been offering himself as a financial consultant since May, when he left his post as a managing director on a Duff & Phelps team that advises holders of structured products and other complex assets. He had arrived there in 2016, following stops at FirstKey Mortgage and Deloitte, where he...



Market Losing Momentum in Final Stretch

Fri, 05 Oct 2018
Structured-product issuance slowed during the third quarter.The year-to-date volume of new asset-backed bonds, collateralized loan obligations, residential mortgage securities and commercial mortgage paper sold worldwide totaled $632.5 billion on Sept. 30. That marked a 14% increase from $554 billion a year earlier, according to Asset-Backed Alert’s ABS Database.At $186.4 billion, however, the volume of deals completed during the third...



PHEAA Returns as Private Education Lender

Fri, 05 Oct 2018
Amid a shift in its lending strategy, the Pennsylvania Higher Education Assistance Agency is planning a return to the asset-backed bond market.The Harrisburg, Pa., operation’s issuance outlook is tied to its intention to begin writing private student loans, with a pilot program set to launch in January and a full-fledged business starting for the 2019-2020 school year. Origination volume is expected to build quickly, with an initial...



BofA Sale Points to Shift in MBS Sentiment

Fri, 05 Oct 2018
The sale of a mortgage-bond portfolio by Bank of America could point to an increased willingness by large banks to issue new deals in the sector.The thinking is that the offering, encompassing $1.8 billion of securities from issuers including Countrywide, Deutsche Bank and Lehman Brothers, signals that BofA wants to lessen its mortgage exposure. Another way to accomplish that would be through securitizations of whole loans.“It could be part...



Former Wells Execs Open Shop

Fri, 05 Oct 2018
Derrick Land and Travis Masters, who worked together at Wells Fargo and then Man Group, have started an investment business focused on fix-and-flip loans.Their Charlotte firm, Blue Cypress Capital, opened on Sept. 27, just days after Land and Masters left Man. They joined the London hedge fund manager in January 2017 via its acquisition of Aalto Invest, where they started in 2015 after leaving Wells.Their vision for Blue Cypress is two-fold. The...



Banks Pitching Swaps to CLO Shops

Fri, 05 Oct 2018
With investor demand for leveraged loans running high, banks are stepping up efforts to sell synthetic financing to collateralized loan obligation issuers.Rather than funding loan purchases through CLOs, which lock up capital for years at a time, the banks are offering exposures to leveraged loans via total-return swaps. Those instruments allow an asset manager or separate-account client to pocket the interest payments and capital gains from a...



Foursight Picks Up Pace of Issuance

Fri, 05 Oct 2018
Auto lender Foursight Capital is getting ready to tap the asset-backed bond market for the second time this year.The planned offering, backed by a mix of prime-quality and subprime loans, is expected to hit the market in the next few weeks with a face value of about $250 million. J.P. Morgan is running the books.Since entering the market in 2014, Foursight has been good for one securitization per year. The fact that it is preparing its second...



Buyers Drawn Away From New CLOs

Fri, 05 Oct 2018
A shift in investor demand is contributing to a reduction in the volume of new collateralized loan obligations.The situation is the latest to stem from an ongoing trend in which demand for fresh offerings has been dictated by refinancing activity. Most recently, managers cut back on short-term refinancings in which the terms of their deals are reset. Instead, they began conducting more long-term exchanges in which they reissue the transactions...



Losses Pile Up for Personal Loans

Fri, 05 Oct 2018
Performance indicators for personal loans written to the strongest borrowers worsened again in September.According to an index maintained by Kroll, annualized losses among so-called Tier 1 accounts rose 38 bp for the month to 4.98% — continuing a climb from 3.74% in July. Delinquencies also rose, by 10 bp to 1.19%. Tier 1 loans encompass accounts from Marlette Funding and Social Finance whose borrowers have credits scores of 710-740. Tier 3...



More Backing for China Tech Shop

Fri, 05 Oct 2018
A technology company that caters to consumer lenders in China is continuing to expand.In a second round of private equity funding, WeShare on Sept. 30 raised $90 million from a group including Bertelsmann Asia Investment, CCB Trust, Citic Capital, DT Capital, Huaxing Growth Capital, ICBCI, Loyal Valley Capital, Mangrove Capital, Tencent Holdings and Welight Capital.Hong Kong-based WeShare plans to use the capital, in part, to increase its...



The Grapevine

Fri, 05 Oct 2018
Guggenheim has hired two collateralized loan obligation heavyweights. Adrian Radulescu joined the bank’s New York office this week as a managing director handling CLO originations, with Ervin Pilku set to arrive soon as head of trading in the sector. Radulescu most recently co-headed the CLO-origination team at Barclays, where he worked from 2014 to this June. He also has spent time at Lehman Brothers, SecondMarket, Credit Suisse, Donaldson...



The Grapevine

Fri, 05 Oct 2018
Salesman Michael Romaszka is no longer employed at Credit Suisse. Romaszka, who covered all types of structured products, had joined the bank’s New York office in 2013 from J.P. Morgan. He also has worked at Goldman Sachs and PricewaterhouseCoopers. His plans couldn’t be learned.



The Grapevine

Fri, 05 Oct 2018
Diana Moreno has joined Sidley Austin’s New York office as an associate focusing on asset-and mortgage backed securities. Moreno had been working in a dual role as an attorney and rating analyst at Moody’s, where she started in 2012. She also has spent time at Tower Legal, Thacher Proffitt and Cleary Gottlieb.



The Grapevine

Fri, 05 Oct 2018
Salesman Tim Dukovich started in Morgan Stanley’s New York office in recent weeks. Dukovich had been a vice president at Deutsche Bank, where he worked since 2009.



The Grapevine

Fri, 05 Oct 2018
Sales-and-trading specialist Bharath Rajamani will leave the London office of brokerage firm HPC Investment in the coming weeks to work outside the structured-finance industry. Rajamani’s work at HPC encompassed the mezzanine and equity pieces of asset-backed securities, mortgage bonds and collateralized loan obligations, along with whole loans. He also has worked at interdealer broker Tradition, and at ICP Capital and GE Capital. His new...



The Grapevine

Fri, 05 Oct 2018
Mortgage-evaluation firm New Diligence Advisors has added a business-development specialist to its Washington office. Suzanne Singer, a senior vice president, arrived in September with a focus on expanding the operation’s clientele under managing director Ann Gibbons. Singer had been a senior managing director at Clayton Holdings since 2015. Her former employers also include Litigation Guard, Auction.com, Actualize Consulting, Wingspan...



The Grapevine

Fri, 05 Oct 2018
Shipping-container lease company Textainer elevated Michael Chan from senior vice president to chief financial officer on Sept. 30, filling a position that opened with the recent exit of Hilliard Terry. Chan has served two stints at the Hackensack, N.J., operation — initially establishing its asset-backed bond program as controller from 1994 to 2006 and more recently helping to maintain those deals as a member of its finance department...



The Grapevine

Fri, 05 Oct 2018
BNY Mellon has transferred managing director Rob Wagstaff to Sydney to help lead an effort to win more trustee assignments on structured-finance transactions in Australia. Wagstaff, who joined the bank in 2006 from J.P. Morgan, had been handing trust-services sales in Europe, the Middle East and Africa from London. He also has worked at Perpetual. At BNY, Wagstaff reports to Kenneth Cheong, who heads business development for the bank’s...



The Grapevine

Fri, 05 Oct 2018
Carlyle Group has added a data analyst to its credit-product investment group, whose $36 billion portfolio includes positions in collateralized loan obligations and other structured credit products. Yuan Li, an associate, joined the firm’s New York office in September. She had been employed at DBRS since 2013 with a focus on mortgage bonds.



STS Adjustments Dampen Europe Outlook

Fri, 28 Sep 2018
A consensus is forming that Europe’s new structured-finance regulations will cause a near-term market dislocation.The outlook reflects a belief that the rules, centered around a designation for “simple, transparent and standardized” securities, will make it harder for banks to own certain securitized products. At worst, industry participants envision a scenario in which dealflow would shrink sharply.At best, they say, spreads...



Subprime Credit-Card Deals In the Pipeline

Fri, 28 Sep 2018
Subprime credit-card lenders Credit One and Fortiva Financial are preparing their first securitizations.Las Vegas-based Credit One is working on an offering with an estimated size of $500 million that could hit the market in early 2019. From there, it could routinely float a couple of transactions each year.In preparation for the program, Credit One officials have been meeting with bankers and rating-agency officials in recent months.As for...



Goldman Readying Jumbo-Mortgage Deals

Fri, 28 Sep 2018
Goldman Sachs is back in the picture as an issuer of jumbo-mortgage bonds, with a new whole-loan trader on board.After an absence of several years, the bank is aiming for the first quarter of 2019 to float such an offering. Routine transactions would follow.Word of the effort surfaced with the Sept. 4 arrival of Joshua Banschick, who had been working at J.P. Morgan since 2008 — most recently as an executive director on the bank’s...



Flagstar Expands Mortgage Repertoire

Fri, 28 Sep 2018
Flagstar Bank is about to start securitizing jumbo mortgages written to home buyers with spotty credit histories.The Troy, Mich., lender is expected to issue its first batch of bonds backed by the loans in the coming weeks. Instead of conducting a stand-alone offering, however, it likely would bundle the receivables into the collateral pool for a $300 million-plus transaction underpinned predominantly by agency-eligible mortgages on single-family...



ETF Operators Eye Active Vehicles

Fri, 28 Sep 2018
More investment firms are preparing exchange-traded funds encompassing actively managed portfolios of mortgage bonds.BlackRock, Barclays and Vanguard are among the shops developing such offerings, each with a projected launch date by mid-2019. They would join Janus Henderson, which on Sept. 12 started a first-of-its kind vehicle called Janus Henderson Mortgage-Backed Securities ETF.The Barclays and Vanguard ETFs could invest in bonds backed by...



AIG Rejoining Ranks of CLO Issuers

Fri, 28 Sep 2018
AIG is preparing to issue a collateralized loan obligation via its recently acquired Covenant Credit unit, marking the insurance giant’s first CLO since before the global financial crisis.The Charlotte-based Covenant Credit team has begun buying leveraged loans via a warehouse line from an unidentified bank. The CLO is expected to hit the market late in the fourth quarter or early next year.“Given the large number of deals and the...



AmeriHome Maps Issuance Routine

Fri, 28 Sep 2018
AmeriHome Mortgage is developing a jumbo-mortgage securitization program.A debut offering is expected to hit the market next year. After that, AmeriHome would be good for 2-4 deals annually.The Woodland Hills, Calif., company is originating $30 million to $40 million of jumbo mortgages per month via a network of 500 correspondent lenders.The AmeriHome name has been around for 30 years, but the current business took shape in 2014 when its former...



Lender Pools Refinanced FFELP Loans

Fri, 28 Sep 2018
Education Loan Finance is preparing another bond offering backed by refinanced government-guaranteed student loans.The offering, expected to weigh in around $200 million, likely will hit the market early next year. It would be backed by loans the Knoxville, Tenn., company wrote to borrowers weighed down by debt originated under the U.S. Department of Education’s now-unwinding Federal Family Education Loan Program. The refinanced credits...



S&P Finds Heavier Reliance on ABS

Fri, 28 Sep 2018
A surge of new issuance has reversed a long-running decline in the percentage of consumer receivables financed through the asset-backed bond market.Prior to the financial crisis, securitization pools contained 25-40% of total outstanding U.S. auto loans, credit-card balances, mortgages and student loans. However, those numbers began ticking down in the years before the 2007-2008 market crash, then fell sharply in the aftermath.But the latest data...



SEC Rethinks Registration Tactics

Fri, 28 Sep 2018
The SEC is reconsidering how it might convince more mortgage companies to register their securitization vehicles.Frustrated by a lack of such filings, representatives from the agency recently huddled to discuss policy changes that might encourage more participation from issuers. They also have been talking to industry participants about the matter.At issue is the SEC’s 2015 update to its Regulation AB disclosure rules. So far, only Redwood...



REGULATORY ROUNDUP

Fri, 28 Sep 2018
US Environment Favors Private Issuers Over Mortgage AgenciesThe regulatory outlook in the U.S. is becoming increasingly friendly to securitization, while industry participants in Europe prepare for a possible disruption.In a move that could make more business available to private-label mortgage lenders, the Trump Administration is pushing to privatize Fannie Mae and Freddie Mac. President Trump also is considering a replacement for Federal...



REGULATORY ROUNDUP

Fri, 28 Sep 2018
Mortgage Agencies — CongressThe Trump Administration laid out its vision for the futures of Fannie Mae and Freddie Mac in a June 21 plan under which the agencies would be privatized and taken out of government conservatorship. Responsibility for affordable-housing efforts would be tasked to HUD, while a yet-to-be-named entity would oversee mortgage trading. Such an undertaking would in some ways mirror a January recommendation from the...



REGULATORY ROUNDUP

Fri, 28 Sep 2018
STS Rules — European RegulatorsThe European Securities and Markets Authority isn’t expected to release final implementation guidelines for Europe’s new securitization rules until December, months later than expected (see article on Page 1). That’s despite the fact that the package, built around a designation for “simple, transparent and standardized” securities, takes effect Jan. 1. The upshot is that issuers...



REGULATORY ROUNDUP

Fri, 28 Sep 2018
Qualified Mortgages — BCFPThe Bureau of Consumer Financial Protection is looking into whether it should be easier for certain home loans to achieve “qualified-mortgage” status. The agency currently is studying the effects the so-called QM standards have had on various types of lenders, with a final report due Jan. 10. Under the Dodd-Frank Act’s risk-retention rule, qualified mortgages are the only home loans that can be...



REGULATORY ROUNDUP

Fri, 28 Sep 2018
Libor — UK GovernmentIssuers are adjusting to life without Libor. On July 26, Fannie Mae priced a corporate-bond issue benchmarked to the secured overnight financing rate, a Federal Reserve Bank of New York measure of the cost of borrowing against Treasurys. The Fed has recommended that issuers in the U.S. peg their deals to the rate, known as Sofr. In Europe, Lloyds Banking on Sept. 5 completed a corporate-bond deal linked to the Bank of...



REGULATORY ROUNDUP

Fri, 28 Sep 2018
Risk Retention — Fed, SEC, TreasuryAttorneys are still banking on the idea that issuers of asset- and mortgage-backed bonds don’t have to comply with the Dodd-Frank Act’s risk-retention rule. Following a Feb. 9 decision by a U.S. Appeals Court panel that the Federal Reserve and SEC were mistaken in applying the skin-in-the-game requirement to collateralized loan obligations, lawyers rushed to develop structures that would allow...



REGULATORY ROUNDUP

Fri, 28 Sep 2018
Marketplace Lending — TreasuryThe Conference of State Bank Supervisors said on Sept. 12 it intends to file a lawsuit challenging a plan by the Comptroller of the Currency to supervise marketplace-loan originators. The Comptroller said on July 31 that it would begin accepting applications for a so-called fintech charter that would give it that oversight, while allowing the lenders to avoid state-by-state licensing. With the lawsuit looming...



REGULATORY ROUNDUP

Fri, 28 Sep 2018
Student Loans — CongressThe House has yet to vote on a bill called the Promoting Real Opportunity, Success and Prosperity through Higher Education Act that would reduce the amounts certain students could borrow directly from the Department of Education, and thus stimulate production of ready-to-securitize private loans. The proposal would have the greatest effect on graduate students, in the form of annual borrowing caps of $28,500 and a...



REGULATORY ROUNDUP

Fri, 28 Sep 2018
Trade Reporting — FinraThere’s still no word on when Finra will release trade-by-trade details for secondary-market sales of mortgage bonds and collateralized loan obligation notes. Following several delays, the self-regulatory agency was expected to set a date early in 2017. Finra already has been releasing daily aggregate trading data for mortgage bonds and CLOs through its Trade Reporting and Compliance Engine. The additional...



REGULATORY ROUNDUP

Fri, 28 Sep 2018
Volcker Rule — Fed, CFTCComments on a proposal to simplify and clarify the Volcker Rule are due to the Federal Reserve, Commodities Futures Trading Commission, Comptroller of the Currency, SEC and FDIC on Oct. 17. But market participants don’t expect major changes to the measure, and instead anticipate a minor streamlining of market-making controls. Still, banks could save on compliance costs and might see a modest uptick in trading....



REGULATORY ROUNDUP

Fri, 28 Sep 2018
Common Securitization Platform — FHFAThe outlook for the Federal Housing Finance Agency’s Common Securitization Platform remains uncertain. Freddie Mac has been conducting administrative functions for its mortgage-bond offerings through the project since 2016, with Fannie Mae slated to follow suit — and all issuing functions for securitizations of fixed-rate agency loans scheduled to move under its umbrella on June 3, 2019. But...



The Grapevine

Fri, 28 Sep 2018
BNP Paribas has a new head of U.S. structured credit product sales. Deepali Advani started in the bank’s New York office on Sept. 10 as a managing director. She had been employed at Citigroup since 2011, and before that spent time at Deutsche Bank, Barclays, Lehman Brothers and Moody’s.



The Grapevine

Fri, 28 Sep 2018
Former Jefferies executive Peter Melichar resurfaced at GreensLedge this month as a London-based managing director with a focus on structuring collateralized loan and debt obligations. Melichar headed CLO-origination activities at Jefferies from 2015 to 2016, and since then worked as a consultant while starting a furniture-making business and launching a recording studio. Earlier, he spent time at Deutsche Bank, Key Capital, Societe Generale and...



The Grapevine

Fri, 28 Sep 2018
Credit Suisse has laid off New York-based sales specialists Lou Rosenfeldand Darce Swaggert. Rosenfeld, who has worked on Wall Street since the 1980s, ar-rived at the bank in 2014 from investment firm Good Hill Partners. His former employers also include Goldman Sachs, RBS, Bear Stearns and Kidder Peabody. Swaggert was on board since 2001. The cuts came as part of a broader series of staff reductions. CORRECTION (9/28/18): This article has been...



The Grapevine

Fri, 28 Sep 2018
The final headcount for Information Management Network’s “ABS East” conference landed around 4,500, the highest ever for the event. The gathering took place Sept. 23-25 at the Fontainebleau hotel in Miami Beach. The next edition of ABS East is set for September 2019, with IMN considering an October date for 2020.



The Grapevine

Fri, 28 Sep 2018
Ying Shen left his New York post as head of mortgage-bond research at Deutsche Bank last week. Shen’s plans are unknown. He had joined Deutsche in 2007 from J.P. Morgan, and before that was at Goldman Sachs.



The Grapevine

Fri, 28 Sep 2018
Moody’s appointed New York-based associate managing director Shivani Kak as head of new-business development for its U.S. structured-finance group around the beginning of this month. Kak replaces Mark DiRienz, who retired at yearend 2017. Kak joined Moody’s in 2008 as a mortgage-bond analyst and moved into its business-development group in 2011. She also has worked at Lehman Brothers and...



The Grapevine

Fri, 28 Sep 2018
Education lender CommonBond is seeking a general counsel. The New York-based recruit’s duties would include legal and regulatory work associated with the company’s securitization program. CommonBond is focusing on candidates with at least 10 years of experience. To apply, go to commonbond.com and click on “careers.”



The Grapevine

Fri, 28 Sep 2018
Stephanie Lobaccaro has joined Capital One’s financial-institutions group, which offers warehouse lines and other forms of financing to lenders. Lobaccaro, who is stationed in New York, had been an asset-backed bond analyst at Fitch since 2014.



The Grapevine

Fri, 28 Sep 2018
Finitive, which helps arrange funding for so-called alternative lenders, has hired a securitization professional. Guido Geissler had been arranging warehouse lines for lenders at Macquarie Group since 2016. He previously worked at Credit Suisse, Deutsche Bank and Morgan Stanley. New York-based Finitive was launched last year by Eaglewood Capital founder Jon Barlow and former Prospect Capital executive Chris...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Allen & OveryContact: John Hwang212-610-6395David Krischer212-610-6350Benefits of the 2017 hiring of partner Larry Berkovich and four associates from now-dormant CLO practice at Ashurst are reflected in a far stronger standing among firms representing issuers in that market. In the asset-backed bond sector, often pursues issuer assignments on deals involving trade receivables, equipment cashflows and aircraft leases. Also advises Canadian banks,...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Alston & BirdContact: Aimee Cummo212-210-9428Growing deal count bolstered by issuer-counsel assignments on mortgage transactions from AIG and TIAA, plus subprime auto-loan offerings from Consumer Portfolio Services. Also has appeared on transactions backed by personal loans and rental-home cashflows, and is working with new clients in asset classes including jumbo mortgages and small-business loans.NOTE: Complete listing appeared in September 21,...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Arnold & PorterContact: Henry Morriello212-836-7170Securitization practice consists largely of personnel brought over in 2017 merger with Kaye Scholer. Those lawyers benefit from Arnold’s work on consumer-lending and banking regulations. Focus remains on financing for mortgages, corporate loans, personal loans and transportation assets, along with some less-common receivables.NOTE: Complete listing appeared in September 21, 2018, issue of...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Cadwalader WickershamContact: Michael Gambro212-504-6825Stuart Goldstein704-348-5258A major player both among issuer and underwriter counsel. Issuer work is driven by risk-transfer offerings from Freddie Mac, along with CLOs. Underwriter work is more diverse, with CLO work complemented by mandates in asset classes including student loans, whole-business receivables, personal loans, catastrophic risk and renewable-energy cashflows.NOTE: Complete...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Chapman and CutlerContact: Walt Begley312-845-3904Works for both issuers and underwriters, with a focus on mainstream asset-backed securities and CLOs. Biggest source of issuer-counsel work remains credit-card deals from Bank of America and Capital One. Other areas of emphasis include auto and personal loans.NOTE: Complete listing appeared in September 21, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Cleary GottliebContact: Paul St. Lawrence202-974-1782Macey Levington202-974-1972Macey Levington was promoted to counsel as the firm sought to retain assignments from CLO underwriters after the retirement of structured-finance co-head Joyce McCarty. Has handled multiple deals from Barclays, Bank of America, Citigroup, Credit Suisse and Goldman Sachs this year. Also represents BofA as underwriter of CDOs backed by trust-preferred shares, including...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Clifford ChanceContact: Steven Kolyer212-878-8473Robert Villani212-878-8214Bulk of work comes from CLO issuers, where it has expanded into deals backed by commercial mortgages. Clients there have included LoanCore Capital. Also benefitting from increase in mortgage-bond supply, while working to a lesser extent with online personal-loan originators. London team is active in commercial-paper conduits and CLOs, along with credit-card, mortgage and...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Cravath SwaineContact: Nicholas Dorsey212-474-1350Stephen Burns212-474-1146Securitization pointman Joel Herold left to become chief legal counsel at DRI Capital, with Stephen Burns and Nicholas Dorsey assuming his post. Most often represents underwriters of Citibank’s credit-card deals, while advising the bank’s in-house lawyers on issuer-counsel tasks. Has been lining up work from underwriters of drug-royalty and cellular-tower lease...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
DechertContact: Malcolm Dorris212-698-3519Hired senior partners Bruce Bloomingdale and Matt Hays this year, plus several associates. But lost senior CLO attorney Sean Solis and four members of his team to Milbank Tweed. Cindy Williams postponed retirement after Solis’ departure, however, and the firm remains the number-one CLO issuer counsel under the leadership of John Timperio. It also is active as an issuer and underwriter counsel in the...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
DentonsContact: Stephen Kudenholdt212-768-6847Added Milan-based partner Gianpaolo Garofalo in June to head Italian structured-finance practice. In the U.S., emphasizes helping issuers comply with the Dodd-Frank Act’s risk-retention rule, along with the Structured Finance Industry Group’s development of a deal-agent role for mortgage bonds. Partner Stephen Kudenholdt is co-chairman of SFIG’s residential-mortgage committee....



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
DLA PiperContact: Richard Reilly212-335-4910Hired Art Rublin from BlackRock’s structured finance team at yearend 2017, with Eric Peterman arriving from Weil Gotshal in February. Both have CLO expertise, keeping with an area of focus for the firm. A Boston team focused on nontraditional assets, meanwhile, is attempting to broaden into more mainstream deals. That effort is led by Andrew Sroka and David Ridenour, who were elevated to partner...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Greenberg TraurigContact: Mark Michigan212-801-9200Firm, which typically has favored work from issuers of timeshare- and equipment-loan bonds, got into subprime auto-loan deals with representation of Veros Credit a year ago. Aircraft financing is another specialty, as well as deals in Latin America. Added Koh Ueda to Tokyo office in April.NOTE: Complete listing appeared in September 21, 2018, issue of Asset-Backed Alert and can be found on...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Hogan LovellsContact: Emil Arca212-918-3009U.S. team seeks assignments from issuers and underwriters in most asset classes, and covers Latin America. In the States, work includes representation on deals backed by credit-card receivables, small-business loans, marketplace-originated personal loans, cellular-tower receivables and billboard revenues. Also helped T-Mobile set up a commercial-paper conduit program. Headcount excludes London team that...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Hunton AndrewsContact: Mike Nedzbala704-378-4703Tom Hiner212-309-1302April 1 merger between Hunton & Williams and Andrews Kurth boosted the firm’s already-strong standing as an issuer counsel. Also has been hiring, with 11 additions this year. Angus Duncan, who joined Hunton & Williams from Winston & Strawn in January, heads a new European practice from London. Also new is Bob Davis, a Washington tax specialist from Cadwalader Wickersham....



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Katten MuchinContact: Anna-Liza Harris202-625-3635Howie Schickler212-940-6391Followed up October 2017 hiring of mortgage-focused partner Shan Haider by bringing in Paul Kruger in May to focus on deals backed by transportation-related assets, also as a partner. Best known as a leading issuer counsel, with a client list heavy on auto lenders including Ford, General Motors Financial, DriveTime, Exeter Finance and Westlake Services. Also represents...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
King & SpaldingContact: Michael Urschel212-556-2285Terry Novetsky212-556-2328June hiring of counsel Ryan McNaughton from Paul Weiss adds to presence in financing of tax liens, timeshare loans and PACE loans. Matthew Sandiford was promoted to partner. League-table presence mainly reflects underwriter-counsel work on deals backed by whole-business cashflows from issuers including CKE Restaurants and Driven Brands, along with cellular-tower lease...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Kirkland & EllisContact: Jeffrey O’Connor312-862-2597Janette McMahan212-446-4754Most active as an issuer counsel, where it leans heavily on deals backed by auto loans, auto leases and dealer-floorplan loans from clients including Ally Bank, NextGear Capital and World Omni Financial. Equipment-loan deals from John Deere and timeshare-loan offerings from Wyndham also offer repeat business. Underwriter assignments mainly entail floorplan deals...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Kramer LevinContact: Gilbert Liu212-715-9460Rise toward the upper echelon of firms representing underwriters reflects work on PACE-loan deals along with offerings backed by auto loans, equipment leases and timeshare receivables. As issuer counsel, practice emphasizes PACE-loan securitizations from Renovate America.NOTE: Complete listing appeared in September 21, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Latham & WatkinsContact: Kevin Fingeret212-906-1237Focuses on deals backed by unusual cashflows, where assignments in recent years have included representation of issuers and underwriters in asset classes including leases on cellular towers, aircraft, railcars and solar panels, along with royalty payments. Also known as a CLO issuer counsel, with clients this year including Ares Management, DoubleLine Capital and LCM Asset Management. Lawyers...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Locke LordContact: Evan Drutman212-415-8544Evan Drutman took over after Keith Krasney left in November 2017 for Morgan Lewis. Small practice often represents trustees. Also advises represents servicers and rating agencies in mortgage-bond deals. Other work includes whole-loan sales, purchases and financing.NOTE: Complete listing appeared in September 21, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Mayer BrownContact: Stuart Litwin312-701-7373Jon Van Gorp312-701-7091Among the industry’s most active law firms, represents issuers and underwriters across virtually all asset classes. Among prime-quality auto lenders, for example, clients have included Honda, Hyundai, Nissan and Volkswagen. On the subprime-auto side, has represented Flagship Credit Acceptance and Santander Consumer USA. Also has worked on credit-card offerings for Discover...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Milbank TweedContact: Jay Grushkin212-530-5346Most active in representing issuers and underwriters of CLOs, where it got a boost with the May arrival of New York-based partner Sean Solis and four colleagues from Dechert. The CLO team has a West Coast presence led by Deborah Festa, and counts staff in London. Asset-backed bond practice, typically focused on aircraft-lease deals, scored big with an underwriter-counsel assignment on a...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Morgan LewisContact: Reed Auerbach212-309-6200Jeffrey Johnson202-739-5645Routine contender for market-leader status as issuer and underwriter counsel opened a Chicago practice with the August hiring of partners Patrick Lampe and Jeff Weinstein from Sidley Austin. The firm, active in a range of asset classes, plans to add more personnel to the new team as it seeks a deeper presence in deals by subprime auto loans and equipment cashflows. Other key...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Norton RoseContact: Patrick Dolan212-318-3399Andrew Coronios212-408-5506Continued buildup with May addition of Latin America finance specialist George Baptista from Mayer Brown. Issuer-counsel assignments have mixed work on deals backed by renewable-energy receivables with the occasional tax-lien and aircraft-lease offering, while underwriter representation has included project-finance offerings. Structured-product push started with 2017 hiring...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Orrick HerringtonContact: Al Sawyers212-506-5041Alan Knoll212-506-5077Growing deal count has placed the firm just below the upper tier of issuer and underwriter counsel. Among issuer assignments, work includes prime-quality mortgage deals from Redwood Trust, subprime-mortgage offerings from Invictus Capital and credit-card transactions from American Express. As underwriter counsel, major sources of business include AmEx card deals and...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Paul HastingsContact: Scott Faga202-551-1935Eugene Ferrer212-318-6048Top CLO underwriter counsel continues to distance itself from the field following the 2015 recruitment of a team from Ashurst. Has added a few junior lawyers this year. A London team wooed away from Ashurst in 2016 also has been contributing on the CLO side, while picking up mortgage-bond work. A mortgage-focused team in New York, meanwhile, works on warehouse facilities and...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Paul WeissContact: Jordan Yarett212-373-3126Whole-business specialist has picked up issuer-counsel work this year from CKE Restaurants, Coinstar, Driven Brands and Wendy’s, plus assignments on timeshare-loan and tax-lease offerings. Expects to close three more whole-business deals soon. Also advising issuers of bonds backed by cellular-tower leases and PACE loans.NOTE: Complete listing appeared in September 21, 2018, issue of Asset-Backed...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Pillsbury WinthropContact: Mark Lessard212-858-1564Best known for representing underwriters of aircraft-lease deals, with a history of working on utility-fee offerings as well. Additionally continues to pursue work involving railcar leases and drug royalties. Mark Lessard also emphasizes representation of companies in emerging markets that seek to distribute their bonds in the U.S.NOTE: Complete listing appeared in September 21, 2018, issue of...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Schulte RothContact: Paul Watterson212-756-2563Boris Ziser212-756-2140Works solely on CLOs and often-private deals backed by nontraditional assets, where it increasingly has focused on litigation finance. Typically advises issuers, including Barings and Prudential on the CLO side. While its specialized nature can impede the firm’s staffing efforts, it is seeking some experienced associates.NOTE: Complete listing appeared in September 21,...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Seward & KisselContact: Greg Cioffi212-574-1439Pioneer in developing risk-retention financing for CLOs suffered a setback when those deals became exempt from the Dodd-Frank Act’s skin-in-the-game rule. But the firm is using its experience to develop risk-retention vehicles for commercial mortgage bond issuers instead. Also remains active in CLOs, typically as issuer counsel, and works on commercial-paper conduit facilities for AT&T and...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Shearman & SterlingContact: Bjorn Bjerke212-848-7395Most visible this year as underwriter counsel for personal-loan deals from OneMain Financial, complementing work in less-common asset classes including aircraft and equipment leases. Issuer-counsel assignments on Freddie Mac risk-transfer deals, meanwhile, appear to have slowed. Presence includes CLOs and commercial-paper conduits as well.NOTE: Complete listing appeared in September 21, 2018,...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Sidley AustinContact: Edward Fine212-839-5395R.J. Carlson212-839-6730Always among the busiest law firms in the industry. As underwriter counsel, collection of mandates includes subprime auto-loan deals from Santander Consumer USA, prime auto deals from Nissan and Volkswagen and jumbo-mortgage offerings from J.P. Morgan. Offerings backed by equipment leases, rental-home cashflows and student loans also are in the mix. Issuer-counsel work includes...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Simpson ThacherContact: John Schueller212-455-3575As underwriter counsel, appears most often on deals backed by cellular-tower leases and automotive fleet leases, where clients have included bookrunners for Avis Budget, Element Fleet Management and Enterprise. Rental-home deals from Invitation Homes lead issuer-counsel mandates, with the firm also seeking work from CLO managers. Other uncommon assets also are on the menu.NOTE: Complete listing...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Skadden ArpsContact: Andrew Faulkner212-735-2853James Stringfellow212-735-3405Richard Kadlick retired as head of the practice in March. Credit-card deals from Bank of America and Capital One represent the bulk of its underwriter-counsel work. J.P. Morgan’s card offerings headline issuer-counsel practice, complemented by subprime auto-loan offerings from Credit Acceptance Corp. and CLOs. Also has presence in drug-royalty and whole-business...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Stradley RononContact: David Joseph215-564-8090Kevin Kundra215-564-8183Helping fund managers structure warehouse lines that they use to buy a mix of loans, many destined for securitization. Among them are mortgages, student loans and online personal loans. Also working on similar initiatives for mortgage originators. Known for advising investors as well.NOTE: Complete listing appeared in September 21, 2018, issue of Asset-Backed Alert and can be...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Stroock & StroockContact: Richard Fried212-806-6047A long period of contraction appears to be over. The remaining team is highly specialized, pursuing underwriter-counsel assignments on student-loan securitizations.NOTE: Complete listing appeared in September 21, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Law...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
WalkersContact: Philip Paschalides345-814-4675Garry Ferguson353-470-6659Assists issuers of CLOs and other deals in setting up offshore vehicles in the Cayman Islands and Ireland, and parlays that work into representation on those shops’ securitizations. Aircraft finance is another specialty. Also offers directorship services. Promoted Paige Gaston-Thiery to partner and Joanne Ziegler to senior counsel ahead of plans to renew a recent hiring...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Weil GotshalContact: Frank Nocco212-310-8918Issuer-counsel work includes assignments on automotive fleet-lease deals from Hertz, along with personal-loan offerings from Lendmark Financial and OnDeck Capital. As underwriter counsel, Bank of Scotland’s credit-card deals represent a major source of business. Has represented underwriters of personal-loan and insurance-premium bonds as well. Also has a presence in CLOs.NOTE: Complete listing...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
White & CaseContact: David Thatch212-819-8342Has been picking up more underwriter-counsel work on whole-business securitizations. Issuer work has included project-finance and automotive fleet-lease offerings. Fields both types of assignments in the CLO sector as well, working with underwriters including GreensLedge, Morgan Stanley and J.P. Morgan, and issuers including Antares Capital and TPG. Jan. 1 promotion of James Fogarty gave CLO practice...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Willkie FarrContact: David Katz202-303-1149Tom French212-728-8124Underwriters of subprime auto-loan securities from Consumer Portfolio Services and Skopos Financial are its most-frequent clients. Has worked on personal-loan deals as well. Advises on commercial-paper conduit programs and warehouse lines, along with purchases and sales of distressed asset-backed securities.NOTE: Complete listing appeared in September 21, 2018, issue of Asset-Backed...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Winston & StrawnContact: Dan Passage212-294-6710Jeffrey Stern212-294-6710CLOs remain at the center of the firm’s securitization practice. Among other types of deals, fields issuer-counsel assignments on PACE-loan offerings from Renew Financial and Renovate America, along with personal-loan transactions from Prosper Marketplace. As underwriter counsel, PACE-loan and equipment-lease offerings top the list.NOTE: Complete listing appeared in...



Participation Soars for IMN's Miami Summit

Fri, 21 Sep 2018
This year’s “ABS East” conference promises to be the largest ever.Almost 5,000 industry professionals have registered for the event, which Information Management Network is hosting Sept. 23-25 at the Fontainebleau hotel in Miami Beach. And several hundred more are expected to sign up at the door.The outlook marks something of a turnaround for the conference, which encountered a series of setbacks in recent years. The 2017...



Buy-Side Impasse Obscures MBS Outlook

Fri, 21 Sep 2018
Mortgage professionals are raising concerns about whether investors will be able to absorb an influx of private-label securitizations that would accompany a reduction in agency-loan limits.While a growing volume of non-agency mortgage bonds has met with strong demand from mid-size insurers and mutual fund operators in recent years, many of the deepest-pocketed buy-side firms have remained on the sidelines. The reason: Issuers still haven’t...



Europe Funds Blocked From US Investments

Fri, 21 Sep 2018
Preparations are under way for a rule change that would curtail the abilities of mutual fund-like vehicles in Europe to invest in securitizations from the U.S.The measure, part of European Parliament’s ongoing overhaul of its structured-finance regulations, would eliminate a loophole under which so-called UCITS funds currently can buy structured products from issuers that don’t comply with the region’s risk-retention...



Victory Park Opts for Warehouses

Fri, 21 Sep 2018
Victory Park Capital wants industry participants to know it still is involved in the online-lending business.The Chicago firm, an early buyer of marketplace-originated personal loans, completed a series of asset-backed offerings that priced as recently as 2015. But it since has stopped purchasing the accounts while stepping up its activities as a warehouse lender and private equity investor in the space — negating its need to...



Aircraft-Lease Issuance Accelerating

Fri, 21 Sep 2018
Look for an uptick in the volume of aircraft-lease securitizations during the final three months of the year.At least five deals are in the pipeline, including offerings from KKR DVB Aviation Capital, Sprite Aviation and Wings Capital. The expected dealflow compares to nine offerings totaling $5.3 billion that have priced so far this year, according to Asset-Backed Alert’s ABS Database.The pace suggests 2018 could turn out to be the busiest...



Gallatin Plays Up Smaller Size

Fri, 21 Sep 2018
Gallatin Loan Management is laying the groundwork for its next collateralized loan obligation, using its relatively small size as a selling point.The San Juan, Puerto Rico, firm plans to begin talking to potential investors at Information Management Network’s “ABS East” conference on Sept. 23-25 in Miami Beach. It has yet to hire an underwriter. The deal, with an estimated size of $400 million, is expected to price by...



Reverse-Mortgage Deals Seen Rising

Fri, 21 Sep 2018
Sales of bonds backed by private-label reverse mortgages are poised to increase next year.That’s the comclusion of a Sept. 24 report from Kroll, which points to a combination of factors including long-term demographic trends and changes to HUD guidelines for agency lending.To date, most securitizations of reverse mortgages have pooled obligations insured by the FHA. But last October, HUD issued a revised set of policies including a new...



PeerIQ Offering Stress Test

Fri, 21 Sep 2018
PeerIQ is rolling out a stress-testing tool for online personal and small-business loans.The New York company is offering the function as an upgrade to its broader loan-analysis package, at no charge to existing users. The idea is to give loan buyers and originators a better idea of how the accounts would perform in a range of market conditions, including periods of severe disruption.PeerIQ, which hopes the addition will help draw in new clients,...



Deephaven Adds Loan-Buying Tool

Fri, 21 Sep 2018
Deephaven Mortgage has implemented technology that helps it buy home loans that don’t meet the Bureau of Consumer Financial Protection’s “qualified-mortgage” guidelines.The web-based tool, Identi-Fi AUS, allows originators to load applications and get immediate feedback on whether the resulting accounts would meet Deephaven’s purchase criteria. It has been in testing in recent weeks, with an unveiling planned for...



New Diligence Reaches Milestone

Fri, 21 Sep 2018
New Diligence Advisors, a startup owned by Louis Ranieri’s Selene Holdings, has landed its first assignment to review the assets for a rated securitization.The mandate, from Finance of America, calls for the New York operation to handle due-diligence functions for 260 reverse mortgages underpinning a deal that is set to hit the market in the coming days. Kroll and Morningstar are rating the offering.The transaction is the third from Finance...



US CLOs Marginally Weaker

Fri, 21 Sep 2018
Asset quality among U.S. collateralized loan obligations issued after the credit crisis weakened marginally in July.The deal’s weighted average rating factor, a key indicator of borrower health, deteriorated by 11 points to 2820, remaining at the equivalent of a “B2” rating, according to Moody’s. Meanwhile, holdings of loans rated “Caa1” or lower rose 17 bp to a median of 3.7%. Analyst Haoning Ding said the...



Disasters Stoke PACE Financing

Fri, 21 Sep 2018
Efforts by homeowners and businesses to protect their properties from natural disasters could boost originations of Property Assessed Clean Energy loans.In a Sept. 24 report, Morningstar describes a trend in which property owners increasingly are turning to PACE loans to fund improvements that would to minimize damage from hurricanes, earthquakes, floods and fires. The agency predicts that such “natural-disaster retrofitting” will...



Mutual Funds Return to NPL Market

Fri, 21 Sep 2018
Mutual funds have resumed buying bonds backed by nonperforming and reperforming mortgages.The 24 most active structured-product buyers among mutual funds tracked by Wells Fargo combined to buy $400 million of those securities during the second quarter, according to a report from Wells analyst Gary Zhu. That marked the funds’ first purchases in the sector since the second quarter of 2017, when they combined to buy $800 million of the...



Loan-Tracking Tool Gets Update

Fri, 21 Sep 2018
Global Debt Registry has built a new version of a tool that helps warehouse lenders compare receivables that borrowers are pledging as first-loss collateral.The update introduces blockchain technology to Global Debt Registry’s ePledge product, which launched in January. The hope is to convince warehouse lenders across a broader range of loan types to contribute data, thus broadening its appeal as a marketable offering.Currently, Global Debt...



Apple Reduces ABS, MBS Holdings

Fri, 21 Sep 2018
Apple has been absent from the structured-product market this year.That’s the word from bankers and issuers who had come to count on the company’s Braeburn Capital arm to be a routine buyer of asset-backed securities and mortgage bonds. Indeed, the company’s latest earnings report confirms that Braeburn hasn’t done much buying of late.Consider that Braeburn’s holdings of asset-backed bonds and non-agency mortgage...



Leading Law Firms in US Securitization Industry

Fri, 21 Sep 2018
The accompanying listing offers a rundown of the most active law firms in the U.S. securitization business.In most cases, the practices mentioned are the ones that claim top standings in Asset-Backed Alert’s league tables for issuer and underwriter counsel on asset- and mortgage-backed bond deals distributed in the States. Work on collateralized loan obligations also is included.However, some firms are included based on transactions that...



Divergence Develops for Online Loans

Fri, 21 Sep 2018
Avant is teeing up its next personal-loan securitization, as Prosper Marketplace prepares to open a new financing avenue.Avant’s deal, totaling $300 million, is expected to hit the market in the coming weeks with Credit Suisse running the books. Prosper, meanwhile, has two transactions in the pipeline — one with a projected pricing date in October and another that would surface later this year or in early 2019.Beyond that, Prosper is...



The Grapevine

Fri, 21 Sep 2018
Neil McPherson has taken a job as a senior director at S&P’s New York office, where his duties include helping issuers, underwriters and investors better understand the agency’s structured-product rating methods. McPherson had been working at Northwestern Mutual since December 2017 and before that was at housing-data shop Weiss Analytics. He also has spent time at Interactive Data, NewOak Capital and Markit Group. His resume, dating...



The Grapevine

Fri, 21 Sep 2018
T. Rowe Price has hired a collateralized loan obligation investment specialist. Jean Marc Breaux joins the firm’s Baltimore office from Aegon USA, where he worked since 2003 in a variety of roles emphasizing CLOs and collateralized debt obligations. Breaux previously worked at Cambridge Associates. T. Rowe Price invests in a range of structured products through numerous funds. It had $960.6 billion under management on Dec....



The Grapevine

Fri, 21 Sep 2018
Collateralized loan obligation structuring specialist Prabu Soundararajan parted ways with MUFG around the beginning of this month to join Natixis’ New York office. Soundararajan was a director at MUFG, which he joined in May 2017 from Resource America. He also counts Stifel Nicolaus, Penserra Securities, Vantage Capital, and StoneCastle Partners among his former...



The Grapevine

Fri, 21 Sep 2018
Former Guggenheim trader George Mancheril has taken a job as chief financial officer at startup business lender Bespoke Financial in Los Angeles. Mancheril worked at Guggenheim from 2011 until this July, most recently with a focus on trading collateralized loan obligations and non-traditional asset-backed securities. He also has worked at Macquarie and Goldman...



The Grapevine

Fri, 21 Sep 2018
Wilmington Trust is seeking several relationship managers for its structured-finance team. The recruits would work in Minneapolis, Baltimore or Wilmington, Del. The unit of M&T Bank, is focusing on candidates with 5-7 years of experience. To apply, click on “careers” at mtb.com and enter job number 3DK7C, 3DKD4 or 3DKD5.



The Grapevine

Fri, 21 Sep 2018
Fidelity Investments is looking for a mortgage-bond analyst. The recruit would work in Merrimack, N.H. Fidelity is focusing on candidates with 3-5 years of experience. Interested individuals can email resumes to in-house recruiter Allison Wilson at allison.wilson@fmr.com



The Grapevine

Fri, 21 Sep 2018
Flexpoint Ford has added two professionals with structured-finance backgrounds to the staff of its Flexpoint Ford Special Assets Fund. Joon Lee joined the Chicago firm’s New York office from Citigroup’s securitization-structuring team, where he worked since 2014 as an associate focused on transportation-related offerings. Also on board in New York is Jeff Zinn, as head of business development for the fund. Zinn had been heading...



The Grapevine

Fri, 21 Sep 2018
Managing director Gerald Casey left mortgage-data company LoanScorecard in recent weeks to become a whole-loan trader at Dyck-O’Neal, a Dallas-based buyer of distressed home loans. Casey had joined LoanScorecard a year ago from a top mortgage-acquisition post at Lone Star Funds affiliate Hudson Advisors. He also has spent time at Westport Capital, Winter Group and Beacon Hill Asset...



The Grapevine

Fri, 21 Sep 2018
Small-business lender CAN Capital is closing its New York office, prompting chief executive Parris Sanz and chief financial officer Tom Davidson to jump ship. Sanz had joined the Kennesaw, Ga., company in 2004 from Endeavor Pharmaceuticals. Davidson had just arrived in April from Sierra Auto Finance. CAN is looking for replacements.



Buyers Fret Over Subprime-Auto Extensions

Fri, 14 Sep 2018
Buyers of bonds backed by subprime auto loans are expressing nervousness over a trend in which lenders increasingly are granting payment extensions to the deals’ underlying borrowers.The focus is on moves in which companies including Consumer Portfolio Services and General Motors Financial have allowed such deferrals multiple times for the same accounts. The worry is that the maneuvers could be another sign of trouble in the asset class,...



Protective Life Betting Big on New-Issue MBS

Fri, 14 Sep 2018
Protective Life has emerged as one of the most aggressive buyers of newly issued mortgage paper.Since the start of the year, the Birmingham, Ala., insurer has gobbled up nearly $1 billion of private-label securities backed by home loans, some of which don’t meet the Bureau of Consumer Financial Protection’s “qualified-mortgage” standards. That accounts for more than half of all investments in those types of deals among...



Fund Operators Chase Online Loan Portfolios

Fri, 14 Sep 2018
Several large investment firms are setting up funds that would purchase personal loans, student loans and small-business loans from online originators — moves that could reduce the potential for those receivables to be securitized.Franklin Templeton and Neuberger Berman are among the shops forming such vehicles. Pimco, already an active buyer, also is seen a candidate. Several others are testing the waters by building loan portfolios within...



Steadier Supply Seen for CLOs

Fri, 14 Sep 2018
September is shaping up as a busy month for the collateralized loan obligation market, reflecting an issuance pattern that will soon have run its course.The new-deal pipeline for this month is jammed as issuers prepare to price deals just before and immediately after Information Management Network’s “ABS East” conference, which takes place Sept. 23-25 in Miami Beach. But October promises to bring lighter supply.The forecast...



Card Lender Encounters Setback

Fri, 14 Sep 2018
Subprime credit-card lender FS Card has lost its warehouse line, possibly disrupting the operation’s securitization plans.While the exact details remain fuzzy, sources said a combination of factors prompted Keystone Private Equity of San Ramon, Calif., to cancel a $150 million facility it had been supplying.Tricadia Capital apparently has stepped in with a replacement line. But FS temporarily stopped originating new accounts amid the...



Investment-Loan Deal Replicated

Fri, 14 Sep 2018
Flagstar Bank is teeing up its next offering of bonds backed by agency-eligible mortgages on single-family investment properties.The $300 million-plus transaction is expected to hit the market within the next month. Bank of American likely will run the books.The offering would follow a first-of-its-kind transaction in which Flagstar priced $329 million of bonds backed by conforming investment loans on May 18 via J.P. Morgan and Wells Fargo. That...



Subprime Auto Shop Readies Offering

Fri, 14 Sep 2018
Subprime auto lender Veros Credit is preparing its second securitization.An offering of perhaps $150 million is expected to hit the market in the next few weeks, with Deutsche Bank running the books. The deal will carry ratings from Kroll.Veros writes auto loans to borrowers with credit scores of 450-700. The Santa Ana, Calif., firm works with 6,500 auto dealers in 21 states.Veros priced its debut securitization on Oct. 24, 2017, selling $150.1...



Vendors Target Risk-Transfer Investors

Fri, 14 Sep 2018
Data firms DV01 and TheNumber are adding services for buyers of agency risk-transfer securities.New York-based DV01 is aiming for early next year to launch a tool that would help bondholders better view and organize data from Fannie Mae and Freddie Mac. TheNumber is further along with a broader project in which it is taking a big-data approach to analyzing the deals’ underlying receivables on a loan-by-loan basis.TheNumber also touts its...



More Erosion for Subprime Autos

Fri, 14 Sep 2018
Performance indicators among securitized pools of subprime auto loans worsened again during the month ended Aug. 15.According to an index maintained by Fitch, losses within those portfolios rose by 62 bp to an annualized 8.02%. Delinquencies were up 42 bp to 4.89%. Fitch expects a continued rise in losses for subprime loans, already at high levels, as borrowers continue to deplete cash set aside from their tax refunds. Among prime-quality loans,...



The Grapevine

Fri, 14 Sep 2018
Alex Siroky joined Canyon Partners in recent weeks with the task of helping to oversee the Los Angeles firm’s structured-product investments. Siroky had been working in a similar capacity at Athene Asset Management since 2010. He previously was a mortgage-bond trader at Knight Capital and Deutsche Bank. Canyon runs about $20 billion through a mix of vehicles, including a series of collateralized loan...



The Grapevine

Fri, 14 Sep 2018
Canada Pension Plan has added a collateralized loan obligation specialist to its London outpost. Jeppe Gregersen most recently worked from 2010 to 2016 at Apollo Global, overseeing origination activities in Europe for the firm’s CLO program. Gregersen also has worked on the CLO-issuing side at Black Diamond Capital, GSC Partners and J.P. Morgan. It’s unclear if his work at the $366.6 billion Canada Pension will involve investments in...



The Grapevine

Fri, 14 Sep 2018
Mortgage-bond trader Tim Brown started as a senior vice president in Mesirow Financial’s Los Angeles office on Sept. 10. Brown, a member of the firm’s brokerage arm, had been working in a buy-side role at TCW since 2016. His Wall Street career, dating back to 1997, also includes stops at Daiwa Capital, BNP Paribas, RBC, Maxim Group, Countrywide, J.P. Morgan, Donaldson Lufkin & Jenrette and Lehman...



The Grapevine

Fri, 14 Sep 2018
Morningstar added a senior vice president to its mortgage-bond rating unit on Sept. 10. Youriy Koudinov is stationed in New York, reporting to group head Kevin Dwyer. Koudinov previously held a number of high-level posts at Moody’s, where he was employed since 2013. He also has worked at TIAA, Access Industries and Credit Suisse.



The Grapevine

Fri, 14 Sep 2018
Director Laura Spichiger has resigned from Barclays, where she set up warehouse lines for asset-backed bond issuers from New York. Spichiger started this week at Capital One, which has been expanding its warehouse-finance staff. She joined Barclays in 2013 from WestLB.



The Grapevine

Fri, 14 Sep 2018
Buy-side shop AQR Capital has hired a quantitative analyst. Yunlin Zhang had been employed since 2016 at Structured Portfolio Management, which began shutting down in June. He also has spent time at Barclays and IBM. AQR, of Greenwich, Conn., runs $226 billion through a mix of funds.



The Grapevine

Fri, 14 Sep 2018
SunTrust Robinson Humphrey is seeking a collateral analyst for its securitization-underwriting group in New York. The recruit’s duties would include structuring deals, reviewing loan pools and developing cashflow models and reports across a range of consumer and commercial asset classes. He or she would hold the title of analyst. SunTrust is focusing on candidates with at least six years of experience. To apply, click on...



The Grapevine

Fri, 14 Sep 2018
S&P has openings for several structured-finance analysts. The recruits, typically junior personnel with about two years of experience, would be stationed in New York, Chicago, Dallas and Centennial, Colo. The additions would follow an early-2018 move in which S&P eliminated a number of structured-finance positions, including those of several senior...



The Grapevine

Fri, 14 Sep 2018
Salesman Eric Sullivan started on Sept. 10 at Mint Partners, a BCG Partners unit in New York where he is tasked with marketing a wholesale derivatives-trading service. Sullivan had been employed in a structured-product sales role at Odeon Capital since 2013.



The Grapevine

Fri, 14 Sep 2018
The Structured Finance Industry Group has enlisted Milken Institute fellow Ed DeMarco and Ginnie Mae chief executive Michael Bright to speak on government mortgage-agency policy and private-label home-loan securitizations at its “Residential Mortgage Finance Symposium.” Both DeMarco and Bright are viewed as candidates to head the Federal Housing Finance Agency, a position DeMarco held until he was replaced by current director Mel Watt...



SocGen's McGarvey Splits for BNP Paribas

Fri, 07 Sep 2018
Daniel McGarvey has left his job as head of asset-backed securities banking and syndication at Societe Generale to join rival BNP Paribas.McGarvey exited SocGen’s New York office last week, and is scheduled to arrive as a managing director at BNP following a short gardening leave. Indications are that he will play a leading role in efforts by BNP to expand its asset-backed bond origination business in the U.S.That said, it remains to be...



Oakleaf Slashes Headcount as Lawsuits Wane

Fri, 07 Sep 2018
Analytics firm Oakleaf Group has laid off a large portion of its staff amid a reduction in assignments to help holders of troubled mortgage-backed securities pursue legal claims against the deals’ trustees.The Bethesda, Md., operation dismissed an initial wave of technology and due-diligence staffers in May, and more recently followed up by terminating more than a dozen senior personnel. All told, it cut its headcount to about 90 from...



Morgan Lewis Assembling Team in Chicago

Fri, 07 Sep 2018
Morgan Lewis is pushing to establish a large structured-finance presence in Chicago as part of an effort to expand into asset classes it has traditionally overlooked.The firm, whose securitization practice is based in New York, wants to hire at least 10 partners and associates to focus on transactions backed by subprime auto loans and equipment loans and leases, as well as collateralized fund obligations.“We’re expanding the offerings...



Beer-Branded Card Program Brewing

Fri, 07 Sep 2018
O Bee Credit Union is strongly considering the creation of a credit-card securitization program.The Tumwater, Wash., institution has discussed the potential effort with underwriters, rating agencies and attorneys, signaling that it could float an initial deal of $80 million to $100 million by midyear 2019.Expectations are that such a transaction would find strong demand from investors, given a recent lack of diversity in the market for...



Morgan Stanley Targets Online Loans

Fri, 07 Sep 2018
Morgan Stanley Investment Management is preparing a fund that would invest in online loans.The vehicle’s holdings could encompass a range of accounts, including personal loans and small-business loans — some of which it could securitize. It also is expected to consider purchases of other issuers’ online-loan securities.Sources said that as part of the process, Morgan Stanley has sought permission from the SEC to structure the...



PACE Pools See Payment Rush

Fri, 07 Sep 2018
Borrowers are prepaying their Property Assessed Clean Energy loans faster than expected.According to a report that Kroll plans to release on Sept. 10, annual prepayment levels have averaged 15-20% among PACE accounts securitized by Renovate America and Ygrene Energy since mid-2017. The agency had projected prepayments of 8-12% when rating those deals.The faster-than-expected inflows reflect a combination of factors, including refinancing by...



KGS Dovetails With BMO Team

Fri, 07 Sep 2018
The combined structured-product operations of Bank of Montreal and KGS-Alpha Capital could be greater than the sum of its parts.BMO completed its purchase of KGS on Sept. 4, renaming the New York-based broker-dealer BMO Capital. Now, a clearer picture is developing of how the shops’ structured-finance groups could complement each other.While Montreal-based BMO has been expanding as an asset- and mortgage-backed bond underwriter in the U.S.,...



S&P Brings Back Exec for CLO Role

Fri, 07 Sep 2018
S&P has re-hired a former employee to co-head its U.S. collateralized loan obligation rating team.Brian O’Keefe returned to the agency’s New York office this week with the title of co-analytical manager for the group — a role that has him working alongside existing head Jimmy Kobylinski. Both men report to U.S. structured-product rating chief Mark Risi.O’Keefe fills a vacancy created when Kobylinski’s previous...



Losses Jump for Personal Loans

Fri, 07 Sep 2018
Performance indicators worsened in August for securitized pools of personal loans written to the weakest and strongest borrowers.According to an index maintained by Kroll, losses rose 86 bp to an annualized 4.6% among so-called Tier 1 accounts, whose borrowers have credit scores of 710-740. Delinquencies among Tier 1 loans rose 2 bp to 1.09%. The main cause for the deterioration, the agency said, was weakening among deals conducted by Social...



Buyers Reject Dine Brands Deal

Fri, 07 Sep 2018
It could be a while before Dine Brands reattempts a securitization of whole-business cashflows it canceled on Aug. 17.The Glendale, Calif., parent of the Applebee’s and IHOP restaurant chains called off the $1.3 billion transaction after bookrunners Barclays and Credit Suisse were able to find buyers for only about half of the bonds. The talk is that it won’t bring the offering back until 2020.Instead, Dine Brands has expanded a...



End of the Line for Conduent Unit

Fri, 07 Sep 2018
Conduent’s student-loan servicing operation is in its final days.The unit is expected to shut down for good by the end of this month, finalizing an unwinding process that has spanned several years. Already, its servicing book has dwindled to as little as $20 million, a rival said.He added that the remaining loans mostly are less-desirable accounts.The broader business that would become Conduent formed with Xerox’s 2010 purchase of...



Morningstar Expands Servicer Ratings

Fri, 07 Sep 2018
Morningstar is creating a rating classification for servicers of securitized consumer loans.The grades would apply to companies active in areas including auto loans, credit-card accounts, personal loans, solar-power equipment financing and student loans. The first recipient would be First Associates of San Diego.In something of a twist, Morningstar actually rated First Associates a year ago, assigning its top “MOR RV1” grade to the...



The Grapevine

Fri, 07 Sep 2018
SMBC Nikko has a new head of asset-backed bond trading. John Lennon started in the bank’s New York office on Aug. 20, filling a vacancy created by Pat Beranek’s move to Banco Santander in July. Lennon had been working in a similar capacity at MUFG since 2013. He also has spent time at Credit Agricole, UBS, BNP Paribas and J.P. Morgan.



The Grapevine

Fri, 07 Sep 2018
Senior managing director Bill Heskett has resigned from Bank of America’s asset-backed securities origination unit in New York to join Cantor Fitzgerald. Heskett had joined BofA via the bank’s credit-crisis takeover of Merrill Lynch, where he worked since 1994. Cantor has been hiring aggressively since January. Other recruits have included Jim Buccola and Marshall Insley, both from Credit...



The Grapevine

Fri, 07 Sep 2018
Details are emerging about the role Joe D’Urso is playing at Blackstone. As president of a fund-management unit called Blackstone Toro, D’Urso is charged with building up a vehicle that buys mortgages and related bonds — and securitizing the entity’s loan holdings. A debut offering is penciled in for 2019. D’Urso started on Aug. 20 at Toro. He most recently was exploring the launch of a technology firm, following his...



The Grapevine

Fri, 07 Sep 2018
Executive director Eric Shea has left MUFG’s structured-product banking unit in New York. Shea was employed at the bank since 2013. His former roles include a stint as head of warehouse financing for UBS’ asset-backed bond group, along with a high-profile post at Deutsche Bank. He has spent time at Prudential and Credit Suisse as well.



The Grapevine

Fri, 07 Sep 2018
Jing Xie joined Northwestern Mutual’s Milwaukee office in August as a director overseeing investments in nontraditional asset-backed securities. Xie previously was the lead analyst covering securitizations of aircraft, shipping-container and railcar receivables at S&P, where she worked since 2005.



The Grapevine

Fri, 07 Sep 2018
Vice president Katarzyna “Kate” Szalus has left Barclays’ asset-backed securities origination group in New York. Word has it that she is headed to Goldman Sachs. Szalus was employed at Barclays since 2015 with a focus on deals backed by nontraditional assets. She previously spent time at Bank of America and PricewaterhouseCoopers.



The Grapevine

Fri, 07 Sep 2018
Clifford Chance has added a partner to its New York office. James Gouwar starts today with a focus on the tax aspects of structured-finance transactions. He had been employed as a partner at Morgan Lewis since 2014, and before that was at McKee Nelson and Sidley Austin.



The Grapevine

Fri, 07 Sep 2018
Director David Vener left BNP Paribas’ structured-finance banking unit in New York a week ago to take a job at Morgan Stanley. Vener, who joined BNP in 2006, most recently focused on assembling deals backed by mortgages and unusual cashflows. He also put together collateralized loan obligations.



The Grapevine

Fri, 07 Sep 2018
Silicon Ranch has hired a staffer to help arrange structured-finance transactions that would fund its purchases of solar-energy plants. Erick Bauman joined the Nashville company’s New York office in August from a property-acquisition role at Landmark Dividend, which leases land to operators of cellular towers, billboards and wind turbines — and securitizes the resulting cashflows. Bauman started there in March 2017, following stops at...



The Grapevine

Fri, 07 Sep 2018
Bradesco of Sao Paulo, Brazil, has hired a New York-based managing director to oversee its fixed-income unit, whose businesses include sales, trading and syndication of structured products. Ajay Chawdhry had been on gardening leave since exiting his post as head of structured-product sales in North America and South America at Standard Chartered Bank in May. He worked there since 2007, following stops at Deutsche Bank, Transworld and Ernst &...



Barings Lines Up Mortgage-Bond Program

Fri, 17 Aug 2018
Barings is positioning itself as an issuer of home-loan bonds.The MassMutual subsidiary has been aggregating an array of accounts that could back the deals. Among them are loans that don’t meet the Bureau of Consumer Financial Protection’s “qualified-mortgage” guidelines, along with nonperforming and reperforming mortgages, home-equity lines of credit, investor loans, servicing rights and manufactured-housing...



CLO Buyers Defend Key-Man Protections

Fri, 17 Aug 2018
Investors are more closely scrutinizing the “key-man” provisions built into new collateralized loan obligations, in some cases insisting that they be strengthened.At issue are separate trends that have seen increased job hopping among senior CLO professionals and continued sales of management contracts among issuers. Concerned that such changes could affect how their holdings are managed, investors are pushing harder to ensure they...



Investors Tracking Trustee Lawsuit in Ohio

Fri, 17 Aug 2018
A legal battle between Western & Southern Life and BNY Mellon could mark a final opportunity for the holders of troubled structured products to seek damages from trustees.On Oct. 2, the Ohio Court of Appeals in Cincinnati will hear Western & Southern’s appeal of a lower court’s August 2017 dismissal of claims by the insurer that BNY failed to protect it as an investor in 31 Countrywide mortgage securitizations that defaulted during...



Regulator Rethinks "True Sale' Issue

Fri, 17 Aug 2018
The U.S. Comptroller of the Currency is reconsidering its stance on “portfolio risk-transfer” securitizations, with an eye toward granting regulatory capital relief to issuers even when the deals don’t achieve “true sales” of their underlying mortgages.Last year, the Comptroller denied a bid by J.P. Morgan to reduce the amount of capital it held against two risk-transfer deals because the transactions didn’t...



Rare Truck-Loan Deal On the Way

Fri, 17 Aug 2018
Freedom Truck Finance is preparing its first securitization.The offering, backed mainly by subprime truck loans that the Dallas company writes to owner/operators, is scheduled to hit the market in late 2018 or early 2019. It has a projected size of $250 million. Discussions are under way with underwriters and rating agencies.Freedom is seen as a candidate to bring follow-up offerings to market on a routine basis. That would make the company the...



Retailer Pooling Personal Loans

Fri, 17 Aug 2018
Online retailer Purchasing Power is teeing up its next personal-loan securitization.The transaction has an estimated size of $200 million. It is expected to hit the market in the coming months with Credit Suisse running the books.Sources describe the offering as a step toward the creation of a routine issuing program. To that end, Purchasing Power last week began a search for a capital-markets head whose responsibilities would include oversight...



US Ruling on CLOs Felt in Europe

Fri, 17 Aug 2018
The number of U.S. collateralized loan obligations available to European investors has fallen sharply since issuers in the States became exempt from the Dodd-Frank Act’s risk-retention rule.After the Dodd-Frank mandate took effect for CLOs in December 2016, an increasing number of U.S. issuers began marketing deals in Europe. That’s because the rule required issuers to retain 5% stakes in their deals, dovetailing with European Union...



Santander Ups Chrysler Originations

Fri, 17 Aug 2018
Santander Consumer USA is gaining ground in its efforts to finance more buyers of Fiat Chrysler vehicles.According to a quarterly filing with the SEC on July 31, Santander’s Chrysler Capital operation had a 32% penetration level with the automaker during the April-June period. That was up from 28% during the January-March stretch and 19% for the final three months of 2017.Still, Santander is well short of the 65% goal set when it became...



Carvana Mimics Marketplace Lenders

Fri, 17 Aug 2018
Online auto dealer Carvana took an unexpected route for its first securitization.The Tempe, Ariz., company initially was expected to distribute the offering broadly on the open market. But instead, it privately placed all of the notes with a single investor on Aug. 7.In an added twist, the buyer already had purchased the underlying loans from Carvana — only to sell all $236 million of the receivables back and then repurchase them in...



More Losses for Subprime Autos

Fri, 17 Aug 2018
Performance indicators worsened among securitized pools of subprime auto loans during the month ended July 15.According to an index maintained by Fitch, losses within those portfolios grew 64 bp to an annualized 7.4%, remaining within a historically high range that has prevailed since mid-2016. Indeed, losses typically were around 5.8% in 2015 and less than 5% before the credit crisis. Along with continued weakness among accounts that smaller...



Goal Buys ReliaMax Servicing Unit

Fri, 17 Aug 2018
Failed private student loan insurer ReliaMax has sold its servicing business to rival Goal Structured Solutions.The deal took place about a week ago, with ReliaMax’s few remaining staffers moving to Goal but remaining in Sioux Falls, S.D. Goal also gains proprietary technology through the transaction.The sale comes after the South Dakota Division of Insurance declared ReliaMax’s core insurance business insolvent in June and ordered...



Weaker CLO Vintages Exposed

Fri, 17 Aug 2018
Asset quality among U.S. collateralized loan obligations issued since the credit crisis weakened modestly in June.The weighted average rating factor, a key indicator of borrower health, deteriorated by four points to 2812, remaining at the equivalent of a “B2” rating, according to Moody’s. Meanwhile, holdings of loans rated “Caa1” or lower held steady at a median of 3.5%, but pools from certain years weakened. Most...



The Grapevine

Fri, 17 Aug 2018
Pat Beranek started this week as head of the asset-backed bond syndicate desk at Banco Santander in New York. Beranek had been the top asset-backed securities trader at SMBC Nikko from 2016 until this July. He previously spent time at Mischler Financial, RBS, Mizuho and Bank of America.



The Grapevine

Fri, 17 Aug 2018
PNC has added a Charlotte-based origination specialist to its securitization team, whose financing tools include a commercial-paper conduit. Nina Austin, a managing director, arrived in July from Fifth Third Bank. She was employed there since August 2017, and before that was at Bank of America.



The Grapevine

Fri, 17 Aug 2018
Former S&P executive Felix Herrera has resurfaced as a member of Fitch’s credit-policy group, which oversees formulation of the agency’s structured-product rating criteria. Herrera was laid off from his job as a senior credit officer in S&P’s New York office in March. He had joined the agency in 1997 from Fleet Bank.



The Grapevine

Fri, 17 Aug 2018
Judd Deppisch has joined Capital One’s financial-institutions group, which offers warehouse lines and other forms of financing to lenders. Deppisch is stationed in Chicago as a managing director. He had been employed since 2004 as a member of the securitization origination and structuring team at BMO Capital — the former employer of CapOne financial-institutions head Dave Kucera. Deppisch also has worked at Bank...



The Grapevine

Fri, 17 Aug 2018
Separately, Adam Prather joined Capital One’s McLean, Va., office as a structured-product analyst. His exact duties are unclear. Prather previously was working on his own as analytics-focused consultant since 2015, counting CapOne, DV01 and Oakleaf Group among his clients. He also has worked at Solve Advisors, Loews and Bear Stearns.



The Grapevine

Fri, 17 Aug 2018
Jordan Milman, who in December left his job as head trader at hedge fund operator LibreMax Capital, has switched career tracks. Milman this month launched a New York-based data center, called Archer Datacenters, that uses only renewable energy sources. He was among a group of former Deutsche Bank executives, led by Greg Lippmann, who started LibreMax in...



The Grapevine

Fri, 17 Aug 2018
Marathon Asset Management is looking for a collateralized loan obligation structuring specialist. The New York-based recruit also would assist in business development. Marathon is focusing on candidates with at least four years of experience. Marathon has completed 16 collateralized loan and debt obligations totaling $7.7 billion since launching its issuing program in...



The Grapevine

Fri, 17 Aug 2018
Tesla is seeking a financing analyst. The recruit would work in the electric-car maker’s Fremont, Calif., office with a focus on managing its capital-raising programs, including its warehouse lines and asset-backed bond deals. He or she also would handle investor-relations duties. Tesla, which securitizes both auto leases and solar-energy equipment receivables, is considering candidates with 1-3 years of experience. For more information,...



The Grapevine

Fri, 17 Aug 2018
Attorney Joshua Smith left CleanFund Commercial Pace Capital this week. As a senior transaction counsel, Smith helped oversee the Sausalito, Calif., company’s securitizations of loans written to commercial property owners under the Property Assessed Clean Energy program. He had arrived in 2016 from Umpqua Bank. CleanFund priced its most recent securitization on July 25, issuing $103.6 million of bonds with Credit Suisse running the...



The Grapevine

Fri, 17 Aug 2018
Morningstar has hired a quantitative analyst. Qiao Wang, who recently earned a Ph.D. in applied mathematics, started in the firm’s New York office on Aug. 6 reporting to quantitative-research head Olgay Cangur.



Task Force Plans Final Flurry of Settlements

Fri, 10 Aug 2018
The Financial Fraud Enforcement Task Force still has a few mortgage-bond fraud cases to finalize before it disbands, including potential settlements with Nomura and UBS.The interagency group, created in 2010 by President Obama, officially was terminated under a July 11 executive order from President Trump that created a replacement entity called the Task Force on Market Integrity and Consumer Fraud. But its members — encompassing 200...



SFIG Walloped on DC Conference Expenses

Fri, 10 Aug 2018
The Structured Finance Industry Group stands to lose more than $1 million on its canceled “SFIG D.C.” conference.The trade group called off the inaugural event on Aug. 8, citing “time constraints” that prevented industry participants from registering. But it remains obligated for a number of financial commitments.Among them is a block of as many as 800 rooms at the Marriott Wardman Park Hotel in Washington, where the event...



College Ave Lands Education-Finance Vet

Fri, 10 Aug 2018
Marketplace education lender College Ave Student Loans has hired Sharon Asch Gold to head its capital-markets unit.Gold started on July 30, adding instant momentum to a push by the Wilmington, Del., lender to become a routine sponsor of asset-backed bond deals.College Ave’s securitizations so far have been limited to a $160.9 million deal in July 2017 and a $199.3 million transaction this June, both with Barclays as bookrunner. The timing...



Mayer Takes Aim at State Actions

Fri, 10 Aug 2018
Mayer Brown has hired a veteran attorney to better equip it to advise clients who are under pressure from state agencies.Michael McElroy, most recently of First Guaranty Mortgage, will join Mayer’s Washington office on Aug. 13. As a partner within the firm’s financial-services regulatory practice, he will be in charge of the group’s work with nonbank mortgage and consumer lenders — an assignment that will have him dealing...



Lenders Shrug Off Higher Costs

Fri, 10 Aug 2018
Securitizations of online personal loans keep flowing, despite widening spreads on new deals.LendingClub, for example, is working with bookrunner J.P. Morgan on a $300 million offering backed by prime-quality loans. Marlette Funding, Social Finance and Upstart also were undeterred as they brought similar deals to market in the past three weeks.Rising interest rates started to bump up funding costs during the second quarter, reversing two years of...



Blockchain Project Reaches Milestone

Fri, 10 Aug 2018
Figure, a home-loan startup led by Social Finance co-founder Mike Cagney, has originated its first loan using blockchain technology, and soon will begin work on a first-of-its-kind securitization.After testing its system in recent weeks on a single home equity line of credit, the San Francisco company expects to begin originating loans on a commercial scale in the next few months. In preparation, it is talking to several banks in an effort to...



Equipment Lessor Enters Pipeline

Fri, 10 Aug 2018
Equipment-finance company Pawnee Leasing is planning its first asset-backed bond deal.The offering, with an estimated size of $200 million, could hit the market by yearend. Pawnee already has spoken to potential underwriters including Bank of America and J.P. Morgan, along with rating agencies.The Fort Collins, Colo., lender has been funding its receivables in part through a syndicated line of credit led by J.P. Morgan and a secured facility from...



Promontory Offers Loan Verification

Fri, 10 Aug 2018
Promontory Fulfillment Services and Street Solutions are launching a service that they tout as offering faster pre-purchase verification that mortgages meet loan buyers’ guidelines.The two companies already have been testing the web-based service with clients, and could unveil it as early as today. The hope is to build a stronger customer base among mortgage investors, who so far have been slower than originators to adopt such tools.Indeed,...



Synchrony Still Wants Walmart Cards

Fri, 10 Aug 2018
Synchrony Financial hopes to retain control of the credit-card accounts it wrote under a partnership with Walmart.The fate of the receivables has been in question since Walmart said in July that it would shift originations of new store-branded plastic to Capital One. On a July 25 earnings call, Synchrony stated that it would either keep the existing portfolio or sell it to Walmart or CapOne.Now, Synchrony is quietly telling asset-backed bond...



China Lender Seeks Foreign Buyers

Fri, 10 Aug 2018
Industry participants are buzzing about the latest personal-loan securitization from China, pegging it as the first in the asset class to seek broad distribution outside the countryThe 1 billion yuan ($150 million) offering, from online retailer JD.com, was circulating this week with Bank of China as bookrunner. Of particular note was that its 750 million yuan senior class carried an “A+” grade from Fitch.Sources said that’s a...



The Grapevine

Fri, 10 Aug 2018
Jason Kopcak’s destination has come to light. Kopcak, who left his post as an executive director on Nomura’s whole-loan trading desk on July 27, will join Morgan Stanley in September after waiting out a gardening leave. He again will hold the title of executive director, this time with a focus on business development for the bank’s structured-finance group. Kopcak had been at Nomura since 2012. He also has worked at Cantor...



The Grapevine

Fri, 10 Aug 2018
Joe Vaccaro left his post as head of structured-product trading at KeyBank this week, destination unknown. Vaccaro and more than a half-dozen colleagues had arrived in Key’s New York office in 2016 with the mission of expanding its structured-product business. But difficult secondary-market conditions more recently have prompted the bank to pare back, with all but about five of the group’s 20 personnel leaving over the past year....



The Grapevine

Fri, 10 Aug 2018
Another former KeyBank staffer, Jeffrey Tucker, started this week as a salesman at BOK Financial in Stamford, Conn. Tucker had been working on mortgage-bond sales at Key from 2016 to July 2018. That was preceded by a long stop at Credit Suisse, as well as time at Merrill Lynch, PNC and Mellon Financial.



The Grapevine

Fri, 10 Aug 2018
Grant Thornton is seeking a senior associate for its securitization transaction-services unit in New York. The recruit’s duties would include assisting in due-diligence reviews, conducting cashflow-modeling work and interacting with issuers. He or she would report to group head Parkson Young. Grant Thornton is focusing on candidates with 2-5 years of experience. For more information, email Young at...



The Grapevine

Fri, 10 Aug 2018
Salesman Jason Foundakos died this week. Foundakos, 42, had been working since 2017 as a real estate agent at Nest Seekers in Hoboken, N.J. He was an account manager at Interactive Data before that, and helped lead sales and business development for Principia Partners’ structured-product software. He also worked at commercial-paper conduit operator BSN Capital, Deutsche Bank and...



The Grapevine

Fri, 10 Aug 2018
OneMain Financial has an opening on its capital-markets team in Stamford, Conn. The recruit would help assemble the company’s personal-loan securitizations and corporate-debt offerings, and would handle investor-relations work. Candidates can email capital-markets head Ravi Mittal at ravi.mittal@omf.com.



The Grapevine

Fri, 10 Aug 2018
Adam Croskery started a consulting gig this week with London small-business lender Iwoca, with a focus on structured finance. Croskery most recently worked on the securitization-structuring team at Natixis from 2015 until February 2017, when he was caught in a round of layoffs. His previous employers also include Credit Suisse, S&P and Gulf International Bank. Iwoca’s structured-finance plans aren’t...



The Grapevine

Fri, 10 Aug 2018
AmeriSave Mortgage has hired a whole-loan trader. Mary Malloy, an executive vice president in the Atlanta lender’s capital-markets group, most recently worked as a managing director at Stearns Lending from 2009 to this January. She also counts Compass Analytics, New Century Financial, Fremont Investment & Loan, Pacific Republic Mortgage, Tuttle Risk Management, Old Kent Bank, Cole Taylor Bank and Household International as former...



The Grapevine

Fri, 10 Aug 2018
Cross River Bank elevated Geoffrey Kott this month to chief financial officer from head of finance and strategy. The Fort Lee, N.J., bank does not plan to fill his former position. Kott arrived in 2016 from Morgan Stanley, where he headed an asset-finance group. He also has worked at McKee Nelson, Fried Frank and Blake Cassels. His work at Cross River includes tasks related to the bank’s services as an originator of record, warehouse lender...



Wells Dismisses Mortgage-Bond Leadership

Fri, 03 Aug 2018
Wells Fargo has removed the core of its private-label mortgage securitization team.Group heads Susan Valenti and Kirk Meyers were dismissed late last week. Also gone are origination and structuring specialists Burak Cetin, Peter Perna, Andrew Riebe and Edward Yu.As part of Wells’ broader mortgage-finance unit, the group has established a large footprint among underwriters of non-agency mortgage bonds — including deals backed by jumbo...



Trading Seats Vacant as Profits Dwindle

Fri, 03 Aug 2018
The outlook is getting dimmer for senior asset-backed bond traders.The culprit is a long-developing trend in which it has become less profitable to match up buyers and sellers of those securities. That environment recently has led a growing number of traders to view their current jobs as dead ends, prompting them to explore their options.At the same time, industry participants describe a situation in which, as senior traders quit or are let go,...



Sprout Hires Akre for Non-QM Funding Push

Fri, 03 Aug 2018
In a move that could jumpstart its mortgage-bond issuing efforts, Sprout Mortgage has hired David Akre to head its capital-markets unit.Akre, a securitization veteran whose former employers include Five Oaks Investment, New York Mortgage Trust and Thornburg Mortgage, arrived last week with the title of executive vice president. Among his initial tasks: fine tuning Sprout’s conduit operation, which has been slow to produce an initial bond...



Refi Slowdown Weighs on RPLs

Fri, 03 Aug 2018
With fewer homeowners refinancing their mortgages, the values of bonds backed by reperforming loans are falling.Triple-A-rated securities with three-year lives from the asset class were changing hands on the secondary market this week at 84 bp over Libor. That’s the widest level seen since May 17, 2017, when similar paper was trading at 85 bp.Back then, however, spreads were on a tightening trajectory after hitting 100 bp during the first...



Flagstar Considers Heloc Offering

Fri, 03 Aug 2018
Flagstar Bank is taking a hard look at securitizing home-equity lines of credit — a type of receivable that hasn’t backed a new deal in the U.S. since 2007.Sources said the Troy, Mich., lender is talking to underwriters and rating agencies about such an offering. Indications are that a deal of at least $300 million could come by yearend.Flagstar had $667 million of home-equity loans and lines of credit on its books on March 31, up...



Trups Play Picks Up for Hildene

Fri, 03 Aug 2018
Rising interest rates and an improved regulatory climate for smaller banks are lifting the fortunes of Hildene Capital.The Stamford, Conn., firm’s flagship Hildene Credit Opportunities Fund rose 10.1% in the first half, bringing its 12-month return to 22.1%.Hildene specializes in trading and managing collateralized debt obligations backed by trust-preferred securities, a popular financing mechanism for small and mid-size banks prior to the...



Japanese Buyers Enable CLO Refis

Fri, 03 Aug 2018
Several Japanese banks have stepped up their collateralized loan obligation investment activities, to the frustration of some U.S. buyers.Bank of Tokyo-Mitsubishi, Mizuho and Sumitomo Mitsui Banking are among a number of major buyers to have recently expanded the lists of issuers whose deals they will consider. Some smaller institutions also have made similar moves, including Sony Bank.Their purchases have been focused on senior notes.While...



PACE Lenders Call Off Merger Talks

Fri, 03 Aug 2018
Renovate America and Ygrene Energy, the leading issuers of bonds backed by Property Assessed Clean Energy loans, have broken off negotiations about a possible merger.The companies began discussing a deal in the second quarter amid a broad slump in origination volume. Greg Frost, a spokesman for Renovate, confirmed the talks had ended without an agreement.Sources said both companies advised staffers of the decision about two weeks ago.The volume...



Indicators Mixed for Personal Loans

Fri, 03 Aug 2018
Losses worsened in July for securitized pools of personal loans whose underlying borrowers carry credit scores of 680-710. According to an index maintained by Kroll, annualized losses among those “Tier 2” accounts rose 181 bp for the month to 12.1% — with the rise attributable mainly to credits originated by Prosper Marketplace in 2017. The Tier 2 loans, which also include receivables from LendingClub and Upstart, saw 60-day...



IHOP Serving Up Bond Deal

Fri, 03 Aug 2018
Dine Brands is planning its next securitization of whole-business cashflows.The Glendale, Calif., parent of the Applebee’s and IHOP restaurant chains is expected to float the $1.4 billion transaction under Rule 144A this month, pledging licensing fees from franchisees as collateral. Guggenheim is among the banks under consideration to run the books.The transaction would re-fund a two-part securitization totaling $1.3 billion that Dine...



Conflicting Signals for Cards

Fri, 03 Aug 2018
Performance indicators for securitized credit-card accounts were mixed in the second quarter. According to an index maintained by Fitch, charge-offs among pools of U.S. bankcard receivables rose to 3.32%, from 3.01% in the previous quarter — continuing a gradual increase that started in early 2017. Meanwhile, the percentage of accounts more than 60 days delinquent fell by 3 bp to 1.10%. “Although we still see charge-offs trending...



The Grapevine

Fri, 03 Aug 2018
Scott Snell, who resigned from his post as co-head of BlackRock’s collateralized loan obligation-issuing team in July, is headed to Tetragon Credit of New York. Snell’s mission: to oversee a new fund that would invest in the debt pieces of CLOs. He is expected to arrive in late September, after helping to install new leadership at BlackRock. He worked there since 2012, following stops at Oak Hill Advisors, Lehman Brothers and...



The Grapevine

Fri, 03 Aug 2018
Scott Eichel’s role at Barclays may end up being broader than advertised. Officially, Eichel starts in New York on Aug. 6 as head of structured-product sales and trading — a role in which he would help expand the bank’s securitization business alongside top bankers Marty Attea and Edward Ballin. But a source close to Barclays said the institution will seek approval from regulators, possibly the Office of the Comptroller of the...



The Grapevine

Fri, 03 Aug 2018
Stanton Lenahan started this week in the New York office of Raymond James, with a broad structured-product sales mandate. Lenahan most recently worked at ED&F Man, which pulled the plug on structured-product trading unit in March. He had worked there since 2015, following stops at Guggenheim and Citadel Securities.



The Grapevine

Fri, 03 Aug 2018
Alphabet, the parent company of Google, is on the hunt for a portfolio manager to oversee its holdings of asset-backed bonds and non-agency commercial mortgage bonds. The recruit, who would work in Alphabet’s treasury unit in Sunnyvale, Calif., also would handle some commercial-paper investments. Alphabet is focusing on candidates with at least 10 years of experience. The company held $15.3 billion of asset- and mortgage-backed securities...



The Grapevine

Fri, 03 Aug 2018
Arnold & Porter has an opening for a lead collateralized loan obligation attorney in New York. The firm is focusing on candidates with at least four years of experience. Arnold & Porter’s securitization practice is staffed in part by attorneys who arrived via the firm’s 2017 merger with Kaye Scholer. Candidates can email in-house recruiter Kiley Bostick at...



The Grapevine

Fri, 03 Aug 2018
Tribal Capital has added Robert Rogoz to its Chicago office as a managing director focused on renewable-energy financing activities — a role in which he would be involved in plans by the Summit, N.J., brokerage firm to originate and securitize clean-energy equipment loans. Rogoz, who reports to capital-markets head Barry Mohr, most recently worked at Guggenheim from 2011-2016. He also has spent time at Keefe, Bruyette & Woods and...



The Grapevine

Fri, 03 Aug 2018
Common Securitization Solutions is seeking a senior operational specialist to oversee the coordination of the Common Securitization Platform’s various components ahead of the program’s planned launch next year. The operation, a joint venture between Fannie Mae and Freddie Mac, is focusing on candidates with at least 12 years of experience. The recruit would be stationed in Bethesda, Md. The Federal Housing Finance Agency, which...



The Grapevine

Fri, 03 Aug 2018
Fortress Investment is seeking an analyst for a unit that supplies warehouse financing to specialty lenders that fund themselves through securitization, and sometimes buys those clients’ bonds or loans. The recruit would be stationed in New York. To apply, click on “careers” at fortress.com and search for job number 2203.



Long-Term Buyers Eye Short-Dated Bonds

Fri, 27 Jul 2018
A mix of investors are increasing their exposures to the shortest-dated asset-backed bonds.The buyers include corporate treasury programs, public pension systems, mutual fund operators and insurers, most of which typically gravitate toward longer-dated paper. One source pointed to Allstate, Alphabet, Apple, Calpers, MetLife and State Street as being among those that have added to their positions.The buying has been strongest among the A-1 classes...



Credit Suisse Pitching Retention Strategy

Fri, 27 Jul 2018
Credit Suisse is offering to help lenders avoid costs associated with the Dodd-Frank Act’s risk-retention rule by buying their receivables and securitizing them itself.Word of the undertaking adds a twist to a sequence of events that culminated with a June 22 personal-loan securitization in which Credit Suisse stepped in for LoanDepot as sponsor. While the initial talk was that LoanDepot simply had concluded it would be uneconomical to...



Leadership Shakeup Hits BlackRock CLO Unit

Fri, 27 Jul 2018
In a matter of just a few weeks, both co-heads of BlackRock’s U.S. collateralized loan obligation-issuing unit have resigned from the firm.Managing director Scott Snell is expected to remain in BlackRock’s New York office for about two months to help transfer his duties to other staff — including some new recruits. His plans beyond that are unknown.Snell’s resignation comes as the group’s other leader, managing director Adrian Marshall,...



IMN Challenge Speeds SFIG Search

Fri, 27 Jul 2018
The Structured Finance Industry Group is hastening its efforts to hire a new executive director, responding in part to the formation of an investor group by Information Management Network.After forcing out Richard Johns as its leader on June 29, SFIG insiders signaled that they could take several months to find a replacement — with a committee of officers overseeing the trade group in the meantime. But sources said this week that the...



Indian Tribe Entering Market

Fri, 27 Jul 2018
A broker-dealer controlled by a Native American tribe is positioning itself as an issuer and underwriter of asset- and mortgage-backed securities.Tribal Capital, owned by the Morongo Band of Mission Indians, initially would play both issuing and underwriting roles for bonds backed by clean-energy equipment loans that it has been accumulating from other originators. A debut offering could come late this year or in early 2019.The asset pools for...



Saudi Mortgage Bonds Taking Shape

Fri, 27 Jul 2018
Details are emerging about Saudi Real Estate Refinance’s securitization plans.The state-sponsored housing agency is eyeing 2021 for an initial deal, with routine offerings to follow. It would distribute the bonds in the U.S. and elsewhere.The timeline reflects a funding strategy that would start with corporate-bond sales in Saudi Arabia this year. Similar offerings in foreign markets would come next, followed by covered-bond transactions...



Valuation Service Preps for Launch

Fri, 27 Jul 2018
A New York startup is positioning itself to calculate loan values for clients including originators, investors and servicers.Methodical Management is aiming for a September launch. It is currently assembling a staff and preparing its technological tools.Overseeing the operation are Gunes Kulaligil and Greg VanLear, most recently of Houlihan Lokey, and former Angelo, Gordon & Co. executive Manny Malbari. They left their previous jobs in April and...



Listed CLO Fund Enters Pipeline

Fri, 27 Jul 2018
XA Investments is starting another collateralized loan obligation fund.The Chicago firm sought SEC approval to list its closed-end fund, XAI Octagon Credit Trust, on the New York Stock Exchange on July 20 and is waiting to hear back from the regulator — a process that usually takes at least 30 days.Octagon Credit would be responsible for all investment decisions as sub-advisor to the fund. Its holdings would include debt and equity pieces...



Caliber, Invictus Focus on Jumbos

Fri, 27 Jul 2018
Caliber Home Loans is expanding its jumbo-mortgage origination program to include prime-quality loans, which it would securitize.Caliber, a unit of private equity firm Lone Star Funds, recently began writing mortgages with principal balances of up to $2 million to borrowers with credit scores of at least 740. It plans to begin securitizing the credits next year, likely as stand-alone issues.Caliber already is a routine issuer of bonds backed by...



SFIG Weighs Entering CLO Dispute

Fri, 27 Jul 2018
The Structured Finance Industry Group is considering whether to intervene on behalf of Highland Capital in a court case that raises questions about the legal status of collateralized loan obligations.At issue is an ongoing bankruptcy proceeding involving Highland affiliate Acis Capital, which issued seven CLOs from 2013 to 2017. Over the objections of Highland, U.S. Bankruptcy Court Judge Stacey Jernigan on July 10 approved a trustee’s...



Report Buoys Canadian Card Bonds

Fri, 27 Jul 2018
Look for Canadian banks to increase their output of credit-card bonds following a report from Moody’s on a new regulatory framework for shoring up troubled financial institutions.At issue is the Canadian government’s recently adopted Bank Recapitalization, or “bail-in,” protocol for handling severe market shocks. If a bank faces insolvency, regulators including the Bank of Canada, Canadian Department of Finance and the...



Mill Hill Notches Asset Growth

Fri, 27 Jul 2018
David Meneret’s Mill Hill Capital is attracting attention from institutional investors.Since the start of the year, the New York investment shop’s assets have risen to about $200 million, from $150 million — thanks to commitments from pensions and other large investors in the U.S., Europe and Asia. As a rule, institutional investors won’t look at hedge funds that have less than $100 million under management.Hoping to build...



The Grapevine

Fri, 27 Jul 2018
Pat Beranek has left his job as SMBC Nikko’s head of asset-backed bond trading. Beranek’s next move couldn’t be learned. He had joined the bank’s New York office in 2016 from RBS as part of a push into structured products and before that spent time at Mizuho and Bank of America.



The Grapevine

Fri, 27 Jul 2018
Bruce Gehrlein is no longer working at Cairn Capital, where he handled structured-product investment and collateralized loan obligation-management duties. His plans aren’t known. Gehrlein had arrived in the London firm’s New York office in 2012 from Treesdale Partners. His former employers also include RBS and predecessor Greenwich Capital, along with Credit...



The Grapevine

Fri, 27 Jul 2018
Whole-loan trader Jason Kopcak left Nomura this week, destination unknown. As an executive director, Kopcak played a key role in positioning the bank as a major trader of nonperforming mortgages and as an underwriter of bonds backed by those accounts. He had arrived in 2012 from Cantor Fitzgerald. Earlier, he worked at American Residential Equities, Carlton Group and Genesis...



The Grapevine

Fri, 27 Jul 2018
Wynkoop Financial has added a mortgage-bond trading analyst to the team running its Wickapogue Structured Credit Fund. Jui Chiew Tan joined the Denver hedge fund manager’s Southampton, N.Y., office this week, working under principal Leland Abrams. Tan most recently worked at Anato Investment from 2015 until the firm shut down in February. He also has spent time at Stifel Nicolaus, Odeon Capital, Interactive Data and Credit...



The Grapevine

Fri, 27 Jul 2018
Ralph Daloisio moved into a full-time role at Amherst Securities in June, signing on as a managing director in charge of a financing group involved in a number of areas, including securitization. Daloisio had been working at the New York brokerage firm on a part-time basis since 2016, while also running a consulting shop called Stealth Financial Innovation. His former employers also include Natixis and Bank of Tokyo-Mitsubishi. He served a...



The Grapevine

Fri, 27 Jul 2018
U.S. Bank is seeking a credit approval officer. The recruit would work within the bank’s newly forming asset-backed securities underwriting group in Charlotte, leading the development of credit-risk policies for warehouse facilities it plans to offer to bond issuers. U.S. Bank is focusing on candidates with at least 15 years of experience. For more information, click on “careers” at usbank.com and search for job number...



The Grapevine

Fri, 27 Jul 2018
Jefferies has added a vice president to its asset-backed bond banking team. Joseph McMahon had been helping to oversee the securitization program at small-business lender Kabbage since June 2017. He also has worked at J.P. Morgan and Barclays.



The Grapevine

Fri, 27 Jul 2018
Small-business lender Credibly has hired a treasurer. Naren Nayak’s duties at the Troy, Mich. company include helping to build a securitization program. Nayak arrived in June from Dan Zwirn’s Applied Data Finance, where he worked since 2015. He previously spent time at Freddie Mac, Morgan Stanley, Barclays, Sallie Mae, PG&E and AT&T.



The Grapevine

Fri, 27 Jul 2018
J.P. Morgan is looking for an accountant. The recruit would work in Brooklyn as an associate on an external-reporting controller team assigned to the bank’s securitized-product group, assisting in preparing regulatory reports and interacting with regulators. He or she also would communicate regulations to securitization staff. Candidates can apply at jpmorgan.com by clicking on “careers” and searching for job number...



The Grapevine

Fri, 27 Jul 2018
Business-development specialist Brent Taggart has signed on as a senior vice president at SingleSource Property Solutions, a Canonsburg, Pa., firm whose services include home appraisals and liquidation oversight. Taggart previously worked at Clayton Holdings, which he joined by way of that company’s 2015 purchase of Green River Capital. He also has worked at 406...



SEC Demands Change in Asset Valuations

Fri, 20 Jul 2018
(SEE CORRECTION BELOW) In a directive that could lead to widespread markdowns, the SEC is telling certain investors to change how they assign values to their structured-product holdings.The effort is aimed mostly at fund operators that have been using historical data to determine projected collateral losses — and then factoring those calculations into the values of their bond positions. Instead, the SEC is pushing for a discounted-cashflow...



Agencies Downplay Collateral Deterioration

Fri, 20 Jul 2018
Buyers of agency risk-transfer bonds are taking a closer look at the quality of the securities’ underlying mortgages.The scrutiny comes in response to a recent phenomenon in which rising interest rates have suppressed origination volume, prompting lenders to make up for some of the lost business by accommodating weaker borrowers. However, both Fannie Mae and Freddie Mac insist their risk-transfer pools remain unsullied.According to the...



RBC Recruits Pair of CP Pros From BofA

Fri, 20 Jul 2018
RBC’s commercial-paper unit has picked up two high-profile professionals from Bank of America.Ralph Esposito had been a managing director handling commercial-paper origination, sales and trading at BofA, with John Widmeier serving as his deputy on the trading side. Now, Esposito is playing a key role involving sales and trading of both secured and unsecured short-term securities in RBC’s New York office — with Widmeier helping...



Spotify Shuffles Funding Options

Fri, 20 Jul 2018
Spotify is taking a hard look at using securitization as a funding source.Talk is circulating that the Stockholm streaming-music company is contemplating an offering backed by its whole-business cashflows, mainly fees paid by its 75 million-plus subscribers and its advertising revenues. The deal, totaling close to $1 billion, could hit the market in the second half of 2019.Sources characterize Spotify’s interest in securitization as...



Credit Suisse Steps In for LoanDepot

Fri, 20 Jul 2018
A personal-loan securitization that Credit Suisse completed on June 22 replaced a transaction that fell apart prior to pricing.The bank originally was assembling the offering for originator LoanDepot, positioning it as a “club” deal whose asset pool also would include accounts that Foothill Ranch, Calif., firm had sold to Magnetar Capital.But LoanDepot backed out just as the issue was about to hit the market. That prompted Credit...



CLO Pioneer Plans Next Act

Fri, 20 Jul 2018
Collateralized loan obligation pioneer Mark Gold wants to re-start his dormant HillMark Capital.Gold, who founded HillMark in 2006 with Hillel Weinberger, is in talks with an unidentified backer about his desire to jumpstart the New York firm. HillMark hasn’t issued a CLO since 2014, and in February it sold the management rights to its last two deals to Pretium Partners.Like many smaller CLO shops, HillMark was hobbled by the Dodd-Frank...



Essent Eyes More PMI Offerings

Fri, 20 Jul 2018
Private mortgage insurer Essent Guaranty wants to expand its recently launched securitization program.The effort would see the Radnor, Pa., company issue bonds backed by premium payments on policies it plans to write against loans that don’t meet the Bureau of Consumer Financial Protection’s “qualified-mortgage” standards. An offering could come during the second half of 2019.Talk of the push comes just weeks after it got...



Softer Loan Market Buoys CLO Pros

Fri, 20 Jul 2018
After nearly two years of dwindling arbitrage profits, collateralized loan obligation issuers are seeing glimmers of hope.In their negotiations with borrowers over loan repricings, the firms are finding it easier to win concessions on a range of terms including interest rates. While the balance of power began to shift marginally several months ago, it has become more noticeable since mid-June, sources said.“In the last month, every...



Fraud Sentencing Pushed Back

Fri, 20 Jul 2018
A federal court has delayed the sentencing of former RBS trader Matthew Katke, who in 2015 pleaded guilty to one count of securities fraud for overcharging clients for their mortgage-bond investments.Katke’s sentencing was scheduled for Sept. 14 in U.S. District Court in New Haven, Conn. But the Department of Justice filed for a postponement on July 2, with the court granting the request on July 10.That’s because Katke, as part of his...



Ellington Pitches Advisory Service

Fri, 20 Jul 2018
Fund operator Ellington Management is aiming to capitalize on its structured-product trading experience by forming a unit that would advise small and mid-size depository institutions on their investments in those instruments.The operation, Ellington Portfolio Solutions, is targeting a universe of about 1,000 banks, credit unions and savings associations with assets of $1 billion to $50 billion apiece. Its services include securities selection,...



Moody's Retools CLO Data Feed

Fri, 20 Jul 2018
Moody’s has changed the way it reports performance indicators for collateralized loan obligations via its monthly “Market Pulse” data feed.Starting this month, the reports no longer include data about CLOs issued before the 2007-2008 financial crisis. Because the number of outstanding “CLO 1.0” deals is now miniscule, the data was presenting a skewed picture of their performance.The new format also breaks out...



The Grapevine

Fri, 20 Jul 2018
Broker-dealer Incenter Securities has a new head of structured-product sales. Charles “Mac” Macintosh arrived in the firm’s New York office this week from Lima One Capital, where he worked in a similar capacity since April. Macintosh also has worked at Orchard Platform, FirstKey Mortgage, Sterne Agee, Morgan Keegan, Thornburg Mortgage, Merrill Lynch and Lehman Brothers. At Incenter, he reports to senior managing director Jeremy...



The Grapevine

Fri, 20 Jul 2018
Former Credit Suisse banker Matthew Brand started this week in a leading role on ITE Management’s investment and structured-finance team in New York. Brand previously served two stints at Credit Suisse dating back to 2007, with a year at Barclays in between. He most recently held the title of director in the bank’s asset-backed bond unit, which he left in June. ITE specializes in industrial and transportation-related investments. As...



The Grapevine

Fri, 20 Jul 2018
Bond-structuring specialist David Nathanson parted ways with Deutsche Bank in June. Nathanson had joined the bank’s New York office a year earlier, working on deals backed by auto loans and credit-card accounts, among other receivables. He also has worked at Morningstar and Moody’s, following an earlier stop at Deutsche and stints at Citigroup and J.P....



The Grapevine

Fri, 20 Jul 2018
Kroll has installed Giles O’Flynn as a director in its Dublin office, assigning him to handle investor-relations duties across Europe. O’Flynn had been working in a similar capacity at Moody’s since 2000, most recently for the agency’s Moody’s Analytics unit. At Kroll, he reports to senior managing director Kate Kennedy.



The Grapevine

Fri, 20 Jul 2018
Peter Silberstein has signed on as a senior director in the capital-markets area of Figure, a San Francisco startup that plans to write and securitize online home loans using blockchain technology. Silberstein had been working in the capital-markets unit of Social Finance since 2016, and before that was at Goldman Sachs, Morgan Stanley and TCW. Figure is headed by SoFi founder Mike...



The Grapevine

Fri, 20 Jul 2018
Auriga USA has hired a sales-and-trading specialist to focus on collateralized debt obligations, including deals backed by trust-preferred shares. Michael Magaldi started in the firm’s New York office on July 17, working alongside collateralized loan obligation trading chief Paul Pasqua. Magaldi had been employed at Resource America since 2008, and before that was at J.P. Morgan and the...



The Grapevine

Fri, 20 Jul 2018
Ciaran O’Brien has joined RBC’s New York office as a director in a unit that writes repurchase agreements against clients’ assets. O’Brien had been working in a sales capacity at Mizuho since 2014, and before that was a mortgage-bond trader at Cantor Fitzgerald and UBS.



The Grapevine

Fri, 20 Jul 2018
New Diligence Advisors has hired Carrie Thompson to head its in-house legal department in Jacksonville. Thompson had been working since 2014 as a senior attorney at Lewis Ranieri’s Selene Finance, which counts New Diligence as an affiliate. She also has spent time at Digital Risk. New Diligence formed in February. This month, Kroll added the firm to its list of vendors qualified to review the assets backing SEC-registered...



The Grapevine

Fri, 20 Jul 2018
East West Bank has added a member to a team that offers warehouse financing to a mix of lenders, including those that use the facilities to accumulate receivables for securitization. Mark Parsa arrived in the Pasadena, Calif., institution’s New York office this week from Brooklyn Park Asset Management, a loan-focused investment firm he co-founded in 2010. Parsa’s former employers also include Greystone & Co., Fortress Investment, DZ...



The Grapevine

Fri, 20 Jul 2018
Morningstar is seeking an associate for its asset-backed securities rating group in New York. The recruit would report to group head Rohit Bharill. Morningstar is focusing on candidates with 1-3 years of experience. For more information, email Bharill at rohit.bharill@morningstar.com.



Personnel Moves Reshape Law Firm Tables

Fri, 13 Jul 2018
A shakeup is occurring among law firms in the securitization industry.Among the five most active firms representing underwriters of asset- and mortgage-backed bond deals in the U.S., only fifth-place Dentons arrived at midyear in the same league-table position it held at yearend 2017 — with Sidley Austin moving up one spot to first place, according to Asset-Backed Alert’s ABS Database. There was less change in the issuer-counsel...



New Front Opens in Non-Agency Market

Fri, 13 Jul 2018
A number of mortgage-bond issuers are working on non-agency deals backed entirely by conforming loans on single-family investment properties.Since Flagstar Mortgage issued a first-of-its-kind deal on May 21, others including Carrington Mortgage, J.P. Morgan and TIAA have begun assembling pools of agency-eligible loans written to individual borrowers who buy single-family rental properties for investment purposes.A flurry of offerings is expected...



Moody's CLO-Rating Status in Jeopardy

Fri, 13 Jul 2018
Amid growing complaints that its evaluation process has become too lengthy, Moody’s standing as the most active rating agency in the collateralized loan obligation business is at risk.The agency retained its usual lead at midyear, having appeared on 94 U.S. transactions totaling $52.2 billion for a 73.6% market share. But that left it only a hair ahead of Fitch, whose 93 deals totaling $52 billion amounted to a 73.2% share, according to...



REITs Move Back to Risk-Transfers

Fri, 13 Jul 2018
Invesco Mortgage Capital is taking another look at agency risk-transfer securities.The Atlanta operation has invested in such securities before, but joined many other REITs in stepping back over the past year as yields shrank to levels too small for their liking. But spreads began widening about a month ago, prompting some to show interest again.Word has it that Invesco plans to buy more of the securities during the second half. It’s...



Fortress Boosts Warehouse Capital

Fri, 13 Jul 2018
Fortress Investment is attempting to increase the amount of warehouse financing it supplies to specialty lenders that fund themselves through securitization.The effort spans a mix of small-business and consumer lenders, including those that write auto loans, personal loans and credit-card accounts. Sources said Fortress personnel recently have been courting those operations more aggressively, telling them it is making more capital available.It...



Judge Rules Against Highland

Fri, 13 Jul 2018
A judge overseeing the bankruptcy of a Highland Capital affiliate has approved a trustee’s plan to transfer control of five collateralized loan obligations to Oaktree Capital.Under a July 10 order from U.S. Bankruptcy Court Judge Stacey Jernigan in Dallas, Oaktree will purchase Highland’s majority equity interests in the CLOs, which have a combined principal balance of $2 billion, and take over management of the deals. A Highland...



Subprime-Auto Losses Drop Again

Fri, 13 Jul 2018
Losses among securitized pools of subprime auto loans continue to drop.During the month ended June 15, annualized losses fell 5 bp to 6.76%, according to an index maintained by Fitch. That’s the best showing since June 2016, when the figure stood at an annualized 6.32%. Subprime-loan delinquencies, which had been falling since February, jumped 33 bp to 4.41%. Fitch said that’s because borrowers are running out of income-tax refund...



Business Lender Engaging Investors

Fri, 13 Jul 2018
A company that writes loans to small and mid-size businesses is talking to investors about a potential securitization.If it moves forward with the effort, Austin-based CrowdOut Capital would start by privately placing deals with single buyers in 2019. The offerings eventually could take the form of asset-backed securities or collateralized loan obligations.CrowdOut, which formed in 2015, so far has been employing a marketplace-lending strategy in...



Asia Fund Buys US Loans

Fri, 13 Jul 2018
FinEX Asia has purchased a portfolio of marketplace-originated personal loans from the U.S.The $500 million-plus portfolio now resides in a fund that FinEX markets to investors in Asia. It’s unclear if the Hong Kong firm is considering securitization as an exit strategy.The year-old FinEX has some links to the asset-backed bond market. In September, it took a $50 million equity stake in Prosper Marketplace, which so far has issued $2.4...



US Bank Keeping Ahead of Rivals

Fri, 13 Jul 2018
U.S. Bank remains the most active trustee in the structured-finance industry, despite rapid growth by some of its rivals.The bank led the field for U.S. asset- and mortgage-backed bonds by appearing on 79 transactions totaling $45.8 billion during the first half of 2018, earning a 24.4% market share. It also was number one in the worldwide collateralized loan obligation sector, with 95 offerings for $48.4 billion that amounted to a 51.4% market...



S&P Establishes Early Lead

Fri, 13 Jul 2018
S&P is on pace to capture for its sixth straight league-table crown.The agency rated 151 new U.S. asset- and mortgage-backed bond offerings totaling $98.6 billion during the first half of 2018, earning a 52.6% market share. But its deal volume was up just 16%, trailing the overall market’s growth level of 24%, according to Asset-Backed Alert’s ABS Database.That allowed second-place Moody’s to gain some ground. It rated 136...



The Grapevine

Fri, 13 Jul 2018
Russ Mueller joined First Empire Securities of Hauppauge, N.Y., in recent weeks as a mortgage-bond trader. Mueller previously co-headed a structured-product sales unit that he helped start at ED&F Man in 2015. He left as the group shut down in March in response to dwindling trading volume. He also has worked at Pierpont Securities, Cortview Capital, MF Global, Greenwich Financial, GFI Securities and Morgan...



The Grapevine

Fri, 13 Jul 2018
Managing director Jeff Mullins has parted ways with Stabilis Capital, where his duties included investing in bonds and other products related to consumer loans and commercial mortgages. Mullins had joined the New York investment shop’s Indianapolis office in 2016, after a few months as a consultant. He led securitized-product sales and trading at CRT Capital before that, and spent time at Jefferies, RBS and...



The Grapevine

Fri, 13 Jul 2018
Word has it that Alexey Dronov has signed on with Allstate’s Chicago office to oversee investments in collateralized loan obligations. Dronov had been in charge of CLO trading and structuring at broker-dealer Marv Capital since 2016. He previously spent time at Highland Capital, Calyon, Morgan Stanley and Deutsche Bank.



The Grapevine

Fri, 13 Jul 2018
George Mancheril has left his post as portfolio manager handling investments in collateralized loan obligations and nontraditional asset-backed securities in Guggenheim Partners’ Santa Monica, Calif., office. Mancheril’s plans aren’t known. He joined Guggenheim in 2011 from Macquarie, and before that was at Goldman Sachs.



The Grapevine

Fri, 13 Jul 2018
Stephen Rappaport left his job as a top structured-product risk manager at Deutsche Bank in June to become chief risk officer at Hunt Financial Securities of Rye Brook, N.Y. Rappaport had joined Deutsche in 2005. His resume also includes stops at Interactive Data, Retirement System Group and Mitsubishi Trust & Banking.



The Grapevine

Fri, 13 Jul 2018
Fitch added a senior analyst to its New York office this week, assigning director Richard Koch to analyze mortgage servicers under managing director Roelof Slump. Koch had been handling operational risk assessments at Morningstar since 2011, and before that was at S&P.



The Grapevine

Fri, 13 Jul 2018
StormHarbour Securities added a trader to its New York office this week, assigning Isaac Maya to cover mortgage-bond derivatives and asset-backed bonds underpinned by unusual cashflows. Maya had been working at Seaport Global since April 2017, and before that was at Halcyon Capital and United Capital.



The Grapevine

Fri, 13 Jul 2018
Morningstar has hired a vice president to handle rating and surveillance work on asset-backed securities and collateralized loan obligations. Joshua Gatmaitan is stationed in New York, reporting to asset-backed bond chief Rohit Bharill. Gatmaitan had been working at Ferry Farm Capital since 2017, with a focus on investments in loans and asset-backed securities. He also has spent time at Citigroup, Bank of the Philippine Islands, Institutional...



The Grapevine

Fri, 13 Jul 2018
Brown Brothers Harriman is seeking a junior analyst to evaluate and monitor asset-backed bond investments in its New York office. The private bank is focusing on individuals with up to five years of experience. Candidates can apply at bbh.com by clicking on “careers” and searching for job number 39270.



The Grapevine

Fri, 13 Jul 2018
David Bell has signed on as head of business development at Link Asset Services, a London operation that handles a range of back-office services in industries including structured finance. Bell most recently led corporate-trust and agency services at Law Debenture Corp., which he joined in 2017 after stops at TMF Group, BNY Mellon and Goldman Sachs.



Uncertain Outlook Follows First-Half Rush

Fri, 06 Jul 2018
Industry participants aren’t sure if this year’s surge in structured-product issuance will last.Worldwide sales of new asset-backed bonds, collateralized loan obligations, residential mortgage securities and commercial mortgage paper totaled $444.1 billion during the January-June stretch. That represented a 23% jump from a year earlier — and the highest first-half tally since 2008, according to Asset-Backed Alert’s ABS...



Johns' Conference Plans Cause SFIG Divorce

Fri, 06 Jul 2018
A clash over the Structured Finance Industry Group’s role as a conference organizer precipitated the sudden exit of executive director Richard Johns on June 29.At issue is the strategy for the inaugural edition of “SFIG D.C.,” which takes place at the Marriott Wardman Park hotel in Washington from Sept. 30 to Oct. 2.SFIG insiders said Johns initially pitched the conference to the trade group’s leadership as a low-key...



Midweek Holiday Halts Secondary Trades

Fri, 06 Jul 2018
Secondary-market activity has stalled.This week started slow as industry participants took time off ahead of Independence Day. Trading then froze across asset classes, with no formal bid lists on Thursday or Friday. “It’s dead,” one trader said.According to Empirasign, asset-backed bond trades totaled $117.8 million on July 2-3, down 83% from the week-earlier timeframe. Collateralized loan obligation trades totaled $32 million,...



Essent Proposes PMI for Non-QMs

Fri, 06 Jul 2018
Essent Guaranty wants to write private mortgage insurance policies on loans that don’t meet the Bureau of Consumer Financial Protection’s “qualified-mortgage” standards.Sources said the Radnor, Pa., company already has moved beyond the planning stages of the effort, and could launch an official program as early as the fourth quarter.Private mortgage insurance protects lenders who write loans to individuals with down...



Insurers Flock to Bond-Backed CLOs

Fri, 06 Jul 2018
Insurers increasingly are stocking their investment portfolios with collateralized loan obligations whose underlying assets include large amounts of corporate junk bonds.While the identities of specific buyers remain under wraps, sources said large insurers recently have shown more interest in the deals — which unlike typical CLOs can be underpinned by any mixture of loans and bonds. That could help create more momentum in the sector, where...



Refis Boost Underwriters' Fortunes

Fri, 06 Jul 2018
Collateralized loan obligation underwriters both large and small benefitted from a continued flow of refinancings during the first half of 2018.CLO issuers worldwide refinanced $92.3 billion of existing deals during the January-June period, rivaling the $94.2 billion of new offerings completed during the same stretch, according to Asset-Backed Alert’s ABS Database. The biggest banks in the business, meanwhile, maintained a commanding...



Project Showcases Blockchain Tech

Fri, 06 Jul 2018
Global Debt Registry is working on a pilot project intended to demonstrate how the parties involved in asset-backed bond deals can save money by adopting blockchain technology.The savings would come from a reduction in due-diligence costs. Currently, underwriters engage outside vendors to verify origination data for loans they fund through warehouse facilities — a process that is repeated by auditors, often through different due-diligence...



VW Plans Routine Issuance in States

Fri, 06 Jul 2018
Volkswagen already is mapping its next U.S. asset-backed bond offering on the heels of its return to the market.Executives in the German automaker’s U.S. treasury division told investors this week that the company plans to be a routine issuer of bonds backed by loans, leases and dealer-floorplan credits in the States, sources said. The next deal is likely to hit the market around yearend.“They’re letting people know...



Riskier Personal Loans Strengthen

Fri, 06 Jul 2018
Performance among securitized pools of personal loans written online to prime-quality borrowers weakened in June, while lower-quality pools strengthened.According to an index maintained by Kroll, losses among so-called Tier 1 loans — originated by Social Finance and Marlette Funding to borrowers with average weighted credit scores of 710-740 — shot up 112 bp to an annualized 5.31%. Kroll said the rise was primarily driven by weakness...



JP Morgan Soars on US Growth

Fri, 06 Jul 2018
J.P. Morgan was the world’s leading bookrunner of structured-product transactions during the first half of 2018, thanks in large part to a growing presence in U.S. asset-backed bonds.The bank appeared on 148 asset-backed bond deals, residential and commercial mortgage securitizations, and collateralized loan obligations during the January-June period, earning $54.9 billion of league-table credit for a 12.4% market share. The dollar volume...



Carvana Offering Headed to Market

Fri, 06 Jul 2018
Online auto dealer Carvana is moving ahead with a planned securitization program.The effort is set to start with a $200 million offering in the coming weeks. J.P. Morgan will run the books, with Kroll rating the transaction.Carvana, which bills itself as a one-stop shop where customers can buy and finance used cars, initially was looking at 2017 to float its debut deal. But it held off, in part, due to a November agreement by Ally Financial to...



The Grapevine

Fri, 06 Jul 2018
Managing director Randal Johnson is no longer employed at Deutsche Bank. Johnson had worked in the bank’s New York office since 2005, most recently in a banking role focused on securitizations of marketplace-originated loans and other nontraditional assets. He also has worked at Lehman Brothers. Sources said his exit from Deutsche came as part of broad staff reductions that are projected to claim 10% of the bank’s workforce by yearend...



The Grapevine

Fri, 06 Jul 2018
Mayer Brown attorney Jason Kravitt will officially retire at yearend. Kravitt has been phasing out of his job as one of the firm’s highest-ranking structured-finance attorneys since 2012, just before he reached its mandatory retirement age of 65. But he has stayed on board on a year-to-year basis, while gradually handing off his duties to other attorneys. Kravitt, considered one of the securitization industry’s top regulatory...



The Grapevine

Fri, 06 Jul 2018
Jeffrey Tucker resigned from KeyBank’s New York sales desk this week. Tucker had arrived in 2016 with a focus on mortgage bonds, following a long tenure at Credit Suisse. He also has worked at Merrill Lynch, PNC and Mellon Financial.



The Grapevine

Fri, 06 Jul 2018
Kathryn James joined the structured-finance and derivatives practice at London law firm Simmons & Simmons in June as a managing associate covering deals backed by residential and commercial mortgages, credit-card receivables and whole-business cashflows. James most recently was a senior associate at Clifford Chance, where she worked since 2006.



The Grapevine

Fri, 06 Jul 2018
Saleswoman Jessica Yan joined Societe Generale’s New York office in May as a vice president. Yan had been employed at StormHarbour Securities since 2016. She also has worked at Bank of America.



The Grapevine

Fri, 06 Jul 2018
Gil Tollinchi is no longer employed at Nomura, where he was a managing director on a team that places leveraged loans with collateralized loan obligation issuers. Tollinchi had joined the bank’s Rye Brook, N.Y., office in October from Golub Capital, but is better known for long stretches as a loan trader at CLO issuer Crescent Capital and predecessor TCW, along with Standard Chartered Bank, BNY Mellon and Chase...



The Grapevine

Fri, 06 Jul 2018
Mortgage-bond trader Tony Mun has left First Empire Securities. Mun, a Los Angeles-based managing director, had arrived at the firm in January 2017 from Piper Jaffray. He was tasked with helping lenders sell loans and hedge their exposures. He also has spent time at Gleacher & Co., PrinceRidge, Ally Financial, Deutsche Bank, Nomura and Credit Suisse.



The Grapevine

Fri, 06 Jul 2018
DealVector has hired a business-development executive. Timothy Day, who joined the electronic matchmaker’s New York office around the beginning of June, had been working as an independent consultant since 2015. Before that, he traded and sold collateralized loan and debt obligations at Odeon Capital and spent time at Guggenheim.



The Grapevine

Fri, 06 Jul 2018
Philip Toth, a New York-based managing director at Oberon Securities whose duties include advising specialty lenders on their structured-finance activities, has taken a side job as a finance instructor at Columbia University. Toth also teaches at Seton Hall University. He has worked at Oberon since 2015, following stops in the structured-finance groups at Bonwick Capital, Janney Montgomery Scott, Cohen & Co. and Stifel...



Wyndham Maps Timeshare-Bond Comeback

Fri, 29 Jun 2018
With the spinoff of its hotel division complete, Wyndham plans to resume issuing timeshare-loan bonds.The Orlando company, which hasn’t completed such an offering since March 2017, is looking at late this year or early 2019 to float a deal of about $400 million. From there, the expectation is that it would quickly revert to a routine encompassing three or four transactions totaling some $1 billion each year.Wyndham’s last...



JP Morgan Reasserts League-Table Strength

Fri, 29 Jun 2018
J.P. Morgan is well on its way to reclaiming the number-one ranking among structured-product bookrunners worldwide.The bank is heading toward the midpoint of 2018 with credit for more than $50 billion of combined year-to-date offerings in the asset-backed bond, residential mortgage bond, commercial mortgage bond and collateralized loan obligation sectors, according to preliminary information from Asset-Backed Alert’s ABS Database. That puts...



Hedge Fund Taps Jefferies to Lead Rare CBO

Fri, 29 Jun 2018
Industry professionals are abuzz over a rare collateralized bond obligation that Jefferies is structuring on behalf of a small hedge fund operator.The issuer, RVX Asset Management of Aventura, Fla., invests in emerging-market debt and equity. Sources said the deal’s collateral pool would be made up of corporate bonds from developing countries. The exact size and timing of the offering are unknown.“In a lot of countries, loans...



Two Harbors Explores MBS Program

Fri, 29 Jun 2018
Add Two Harbors Investment to the list of companies interested in rebooting their jumbo-mortgage securitization programs.The New York mortgage REIT recently has spoken to a few investors about an offering that could hit the market by yearend, with the goal of measuring potential demand. The issue presumably would take place though a conduit that produced its last deal in August 2016.At the time, low mortgage rates and weak bond values were...



Dechert's Williams Back On Duty

Fri, 29 Jun 2018
Dechert has brought a leading collateralized loan obligation attorney back into service.Cynthia Williams, who co-heads the firm’s CLO practice with John Timperio, had been reducing her involvement in new deals while planning her retirement. But the May exit of lieutenant Sean Solis for Milbank Tweed has created the need for her to resume a full workload.“She’s been out on deals again lately,” one rival attorney said.The...



Insurance Lender Steps Up Issuance

Fri, 29 Jun 2018
The acquisition of a competing insurance-premium lender is helping to drive up IPFS Corp.’s securitization volume.The Kansas City, Mo., company already has completed four issues totaling $1.1 billion in 2018, easily putting it on pace for its busiest year ever. Next up is a deal with a projected size of $300 million.Citigroup and J.P. Morgan, which typically lead IPFS’ securitizations, are planning to start a roadshow in August ahead...



CLO Issuers Make Way for Refis

Fri, 29 Jun 2018
Collateralized loan obligation issuers increasingly are scheduling new offerings so that they don’t coincide with bouts of heavy deal-refinancing activity.At issue is a phenomenon in which issuers typically refinance existing CLOs around the transactions’ quarterly payment dates. In the past, issuers and underwriters haven’t eased back on new-deal supply at those times — causing spreads to widen as the market became...



Hunt Wins ABS-Underwriting Roles

Fri, 29 Jun 2018
Hunt Financial Securities has landed its first assignment as a structured-product underwriter.The Rye Brook, N.Y., firm is the sole bookrunner for a $250 million securitization of tax liens from Cazenovia Creek Investment. The deal, expected to hit the market in July, will carry ratings from Kroll. Cazenovia last issued a tax-lien offering in 2015 via Guggenheim.Hunt also has begun work on a securitization of “fix-and-flip” loans for...



MFA, Waterfall Join Non-QM Rush

Fri, 29 Jun 2018
MFA Financial and Waterfall Asset Management are separately developing mortgage-securitization programs.Sources said both companies are determining the infrastructures and staffs needed for the initiatives, which could begin producing bond deals in 2019. The securities would be backed by loans that don’t meet the Bureau of Consumer Financial Protection’s “qualified-mortgage” standards.Both MFA and Waterfall would buy the...



PennyMac MBS Moves Into Pipeline

Fri, 29 Jun 2018
PennyMac is moving ahead with plans to resume issuing jumbo-mortgage bonds.Word is circulating that the Westlake Village, Calif., company is envisioning an initial offering of $500 million that would hit the market during the fourth quarter.That would be consistent with a timeline that emerged in February, when PennyMac was on the verge of reviving a then-dormant jumbo-loan program that would routinely draw its funding from both securitizations...



Amazon Eases Back on Purchases

Fri, 29 Jun 2018
Amazon.com is tempering its purchases of asset-backed bonds.The online retailer was holding $795 million of such securities on March 31, down from an all-time high of $905 million at yearend 2017. And sources report that it has been largely absent as a bidder since then.The reduction reverses an expansion of the portfolio that began in 2015. Amazon ended that year with $117 million of asset-backed securities, and by yearend 2016 had brought the...



The Grapevine

Fri, 29 Jun 2018
Investment specialist Sanjay Gulati joined ArrowMark Partners’ Denver office in recent weeks with a focus on collateralized loan obligations. Gulati had been employed at Highland Capital since 2013. He also has spent time at MHT Partners and Merrill Lynch. ArrowMark runs $16.6 billion through a mix of vehicles. Its CLO portfolios are overseen by Sanjai...



The Grapevine

Fri, 29 Jun 2018
Quentin Belouchat is leaving his job as a vice president on Natixis’ bond-structuring team in London. Word has it he is headed to a Cerberus Capital unit that has been buying older mortgage portfolios and bundling them into securitizations. Belouchat has worked at Natixis since 2012.



The Grapevine

Fri, 29 Jun 2018
Dylan Mark and Shanice Thompson arrived at Morgan Stanley this week as members of a New York team that evaluates the credit risk associated with warehouse facilities the bank supplies to structured-product issuers. Mark and Thompson report to executive director Shaun Magee. Both previously worked at DBRS, where they started in 2015 — with Mark having served an earlier stint at Morgan...



The Grapevine

Fri, 29 Jun 2018
Kevin Gordon has left KeyBank’s asset-backed bond trading desk in New York. Gordon’s plans are unknown. He had worked under Joe Vaccaro since arriving at the bank from Cowen Prime Services in November. He also has spent time at Credit Suisse, BGC Financial, Dealerweb and Tullett Liberty Securities.



The Grapevine

Fri, 29 Jun 2018
Online small-business lender OnDeck Capital has rehired an employee it laid off in May 2017. Based in Denver, Joseph Gaworecki is tasked with determining the values of OnDeck’s loans. He had been working at Optimal Solutions and Technologies since last July, having previously held a number of capital-markets and loan-review positions at OnDeck dating back to 2014. OnDeck has completed three securitizations totaling $650 million since...



The Grapevine

Fri, 29 Jun 2018
Natixis has an opening for a senior credit officer in New York. The recruit would help manage a team that oversees the exposures the bank takes on through its warehouse-lending and securitization businesses. Along with credit-risk analysts, his or her duties would include assessing counterparties including banks, insurers and fund operators. Natixis is focusing on candidates with at least 15 years of...



The Grapevine

Fri, 29 Jun 2018
Consulting firm Signet Partners has hired a senior vice president to build a new group in Washington, with an eye toward winning more business from government agencies, banks and lenders. Timothy Lee arrived a few weeks ago from a position advising financial institutions on structured-product reviews at accounting firm Grant Thornton. Lee also has worked at FI Consulting and the FHFA, and has held securitization-related posts at Allied Capital,...



The Grapevine

Fri, 29 Jun 2018
RBC is seeking a deal-structuring specialist. The New York-based recruit would develop deal models across asset classes, and would assist in assigning values to transactions. His or her duties also would include interacting with rating-agency analysts and marketing staff. RBC is focusing on candidates with at least two years of experiences. For more information, click on “careers” at rbc.com and enter job number...



The Grapevine

Fri, 29 Jun 2018
Lending Club has promoted Valerie Kay to oversee interactions with all buyers of its personal loans. Kay already had been handling those responsibilities for institutional investors, including those that funnel the accounts back into its quarterly “club” securitizations. Her new assignment adds responsibility for individual investors. The move follows the exit last week of her supervisor, Patrick Dunne. Kay arrived in 2016 from Morgan...



Barclays Dusting Off Gracechurch Program

Fri, 22 Jun 2018
Barclays’ U.K. credit-card unit is getting ready to resume issuing asset-backed bonds both in Europe and the U.S.Via its Gracechurch Card Programme, Barclays is teeing up an offering of more than $1 billion for mid-July, encompassing both pound- and dollar-denominated tranches. The bank is dispatching a team of bankers to meet investors in the States next week.A routine series of deals would follow.Barclays last completed an open-market...



BofA Mortgages to Flow Through Chimera

Fri, 22 Jun 2018
Chimera Investment is positioning itself as a routine issuer of jumbo-mortgage bonds, with Bank of America supplying the collateral.Chimera pledged around the beginning of this year to purchase an undisclosed volume of prime-quality accounts from BofA on an ongoing basis, and on April 30 completed a pilot securitization of those receivables, distributing $380 million of securities.A follow-up transaction is in the works for the next month or so,...



New Assignments for Morningstar Execs

Fri, 22 Jun 2018
Morningstar has promoted three senior members of its structured-finance staff, with two of them absorbing duties that formerly belonged to chief operating officer Joe Petro.Managing director Becky Cao is filling a newly created position in which she aims to ensure the quality of the agency’s securitized-product ratings via proper applications of its evaluation procedures. Michael Brawer and Brian Vonderhorst, meanwhile, are splitting a job...



Nelnet Mulls Personal-Loan Bonds

Fri, 22 Jun 2018
Nelnet is exploring a personal-loan securitization program.The Lincoln, Neb., company already has discussed the potential effort with some of the banks that underwrite its student-loan bonds, indicating that it could come to market with a $150 million transaction during the second half of 2018.Nelnet began buying personal loans from community banks and other originators about a year ago. It was holding $62.1 million of the accounts at yearend...



China MBS Headed for US Market

Fri, 22 Jun 2018
Look for more mortgage-bond issuers in China to distribute their securities in the States.With both supply and demand picking up in the market for U.S. home-loan paper, the talk is that those shops see an opportunity to cash in on the market’s momentum.Adding to the expectations is a 10 billion yuan ($1.5 billion) transaction that China Construction Bank is expected to price on June 25, with banks and other investors in the U.S. among the...



Kroll Nabs CLO Analyst From S&P

Fri, 22 Jun 2018
Kroll has lured another executive from S&P as part of an ongoing effort to expand its coverage to include collateralized loan obligations.Sean Malone, a lead analyst for newly issued CLOs at S&P, will join Kroll as a director on June 25. He’ll report to his old boss at S&P, Eric Hudson. Hudson joined Kroll in April as a managing director in charge of CLO ratings.Malone had been a member of S&P’s CLO-rating team since 2013. Hudson...



Signs Point to End of Criminal Probe

Fri, 22 Jun 2018
The government’s crackdown on illicit mortgage-bond trading practices increasingly appears to be winding down.On June 14, attorneys representing former RBS trader Adam Siegel agreed to a sentencing date of Sept. 21. That’s significant because Siegel, who pleaded guilty to one count of securities fraud in 2015, functioned as a cooperating witness as prosecutors charged other traders with misquoting bond prices to clients. His...



CLO Issuers Amp Up Trading

Fri, 22 Jun 2018
Collateralized loan obligation issuers stepped up trading of their deals’ underlying assets last year.According to a report from Moody’s Analytics, issuers turned over an average of 32% of their deal collateral in 2017, up from 20% in 2016.Kingsland Capital posted the highest turnover level, at 101%, up from a market-leading 60.6% in 2016. Some of the rise may have come in preparation for the New York firm’s purchase by Hayfin...



Fitch Flags Reps and Warranties

Fri, 22 Jun 2018
Fitch is preparing a report that will give mortgage-bond investors a clearer understanding of how various issuers enforce representations and warranties.The report, to be released June 26, comes amid increasing concern that some issuers have weakened their procedures for reviewing and removing collateral loans that are seriously delinquent or in default. Investors are particularly worried about smaller subprime lenders whose credits don’t...



Renovate, Ygrene Discuss Merger

Fri, 22 Jun 2018
Property Assessed Clean Energy lenders Renovate America and Ygrene Energy are exploring a merger.The talks come in response to a broad decrease in PACE-loan volume in California, which is by far the largest market for such financing.Renovate and Ygrene, meanwhile, have been the most active issuers of bonds backed by PACE credits. It’s unclear which firm would absorb the other.The lending slump was triggered by an April 1 change to the...



Semper Expansion Picks Up Speed

Fri, 22 Jun 2018
Semper Capital continues to grow.The New York investment firm is heading into midyear with $2.5 billion of gross assets, up from $1.8 billion at yearend 2017 and $1.3 billion at yearend 2016. It also added two analysts to its trading desk in recent weeks.Mike Stefanelli had been employed at PricewaterhouseCoopers since 2015, handling a mix of analytical duties that included assigning values to mortgage bonds. Ian Rappaport had been leading a...



The Grapevine

Fri, 22 Jun 2018
Adrian Radulescu has left his job as co-head of Barclays’ collateralized loan obligation origination unit. Radulescu’s next move couldn’t be learned. He had joined Barclays’ New York office in 2013, working alongside Jonathan Kitei to build one of the CLO market’s more-active underwriting practices. His exit precedes the July arrival of former Citigroup executive John Clements as Barclays’ head CLO banker...



The Grapevine

Fri, 22 Jun 2018
Flagstar Bank has hired a vice president to oversee its jumbo-mortgage securitization program. Eileen Lindblom arrived in the bank’s Troy, Mich., headquarters in May. She most recently was building a book of mortgage servicing rights at Seneca Mortgage from 2013 to December 2017. Before that, she spent time at Dreambuilder Investments and UBS, where her titles included head of mortgage...



The Grapevine

Fri, 22 Jun 2018
Director Matthew Brand exited Credit Suisse’s asset-backed bond banking unit early this month, apparently to take a job at an issuer. Brand served two stints at Credit Suisse, starting in 2007 and returning in 2012 after one year at Barclays.



The Grapevine

Fri, 22 Jun 2018
Vice president Rob McDonald is no longer working at Goldman Sachs. McDonald had been on board since 2002, handling structuring duties on deals backed by auto and equipment cashflows. He earlier worked in the treasury department at Ford.



The Grapevine

Fri, 22 Jun 2018
Structured-product investment specialist John Eck left his post as a managing director at Arena Investors this week to take the same title at Ares Management in New York. Eck joined Arena in 2013. He earlier worked on securitizations of unusual assets at Bank of America, Citigroup and Bear Stearns.



The Grapevine

Fri, 22 Jun 2018
Oliver Dunsche resurfaced in BNP Paribas’ New York office this week as part of a team that sets up warehouse facilities for issuers of bonds backed by leveraged loans and unusual cash flows. Dunsche worked in a similar capacity at HSBC from 2014 to this April, and since then was waiting out a gardening leave. He also has spent time at Barclays, Deutsche Bank, Morgan Stanley and Oliver...



The Grapevine

Fri, 22 Jun 2018
S&P has two openings in its structured-finance rating group. One is for a New York-based associate who would handle cashflow-modeling and quantitative analysis on deals backed by mortgages, student loans and aircraft leases. The other job is for a researcher in Centennial, Colo., covering transactions backed by nontraditional cashflows including aircraft, container and railcar leases. Both positions require two years of experience. To apply,...



The Grapevine

Fri, 22 Jun 2018
Goldman Sachs is seeking an analyst for its mortgage-securitization group in New York. The recruit would handle cashflow-modeling, asset-valuation and document-review duties, and would work with investors and rating agencies. Coverage areas would include deals backed by jumbo loans, nonperforming loans and rental-home cashflows. To apply, click on “careers” at goldmansachs.com and enter job number...



The Grapevine

Fri, 22 Jun 2018
The head of a unit that aims to expand the universe of buyers for Lending Club’s personal loans left the San Francisco originator last week. Patrick Dunne had arrived in 2016 from BlackRock. His plans couldn’t be learned.



The Grapevine

Fri, 22 Jun 2018
Product-strategy head Jack Mahoney has left Avant, where his work included tasks related to the Chicago personal lender’s securitization program. Mahoney, who had arrived at Avant in 2014 from Morgan Stanley, now works on the operations side at recruiting website Indeed.com. There’s no word of any securitization plans at Indeed.



Mortgage Pros Fret Over Waning Standards

Fri, 15 Jun 2018
Worries are spreading that enforcement of the representations and warranties for certain mortgage securitizations has become too weak.At issue is a trend in which issuers increasingly have implemented lax procedures for reviewing and removing collateral accounts that run into trouble. Of particular concern are smaller subprime lenders whose credits don’t meet the Bureau of Consumer Financial Protection’s...



Ally to Revive Jumbo-MBS Issuing Program

Fri, 15 Jun 2018
Ally Financial is planning a jumbo-mortgage securitization.In early discussions with rating agencies and underwriters, the Detroit institution has described an offering of some $750 million that it would float in early 2019 — thus ending a long absence from the market.Ally and predecessor GMAC once were among the biggest players in the mortgage-finance sector, having issued $450.4 billion of securities backed by prime-quality, subprime and...



Mortgage-Bond Manager Shutting Down

Fri, 15 Jun 2018
Structured Portfolio Management, a mortgage-bond shop that made a killing for its investors in the wake of the financial crisis, is unwinding.Talk began circulating last week when Bank of America offered a portfolio of mortgage derivatives on behalf of an undisclosed hedge fund manager. Now comes word that the package, with a face value of more than $1 billion, represented the holdings of SPM’s main fund.The liquidation is tied to a move by...



Lone Star Shifts NPL Strategy

Fri, 15 Jun 2018
Lone Star Funds is paring back its sales of fresh nonperforming-mortgage bonds.The Dallas private equity firm’s Caliber Home Loans unit typically has completed a dozen unrated transactions per year since launching its Vericrest Opportunity Loan Transfer program in 2015, including 11 offerings for $12 billion in 2017. But its activity in the sector this year has encompassed just a single issue of $497.3 million that priced April...



Cloudy Forecast Develops in Europe

Fri, 15 Jun 2018
Even with issuance volume growing in Europe, uncertainty prevailed at this year’s “Global ABS” conference.Heading into the June 5-7 event, hosted by the Association for Financial Markets in Europe and Information Management Network at the Barcelona International Convention Center, expectations were that dealmaking activity would abound. Instead, some of the 3,800 attendees reported a lack of meetings that at times reflected...



Highland CLO Contracts Under Fire

Fri, 15 Jun 2018
A court-appointed trustee is seeking to wrest control of the majority equity positions that Highland Capital holds in five of its own collateralized loan obligations.Robin Phelan’s June 8 request to U.S. Bankruptcy Court Judge Stacey Jernigan in Dallas marks the latest twist in a long-running dispute between Highland and former portfolio manager Josh Terry — who in April won a lawsuit that led to Phelan’s appointment.Phelan’s motion aims...



Sallie Ramps Up Personal Loans

Fri, 15 Jun 2018
Sallie Mae Bank’s portfolio of online personal loans is swelling faster than expected, leading to speculation that it could move up the timetable to securitize those assets.The student-loan giant began buying personal loans from Lending Club last year and was sitting on $675 million of those accounts at the end of the first quarter — up from $400 million at yearend. The increase was more than twice what equity analysts who cover the...



Freddie Tweaks Principal Structure

Fri, 15 Jun 2018
Subordinate investors in future risk-transfer deals from Freddie Mac can expect to stop receiving principal payments when conditions turn sour.The agency first employed the policy for a $1.1 billion transaction that priced June 12, Structured Agency Credit Risk Debt Notes, 2018-DNA2 (see Initial Pricings on Page 9). It plans to do the same for all of its risk-transfer deals going forward.The new terms pause principal distributions to junior...



Strong Month for Subprime Autos

Fri, 15 Jun 2018
Losses and delinquencies swung lower among securitized pools of subprime auto loans during the month ended May 15.According to an index maintained by Fitch, losses fell 120 bp during the period to an annualized 6.81% while delinquencies dipped 22 bp to 4.08% — the lowest levels for both figures since June 2016. Fitch attributed the improvements to economic health, along with moves by borrowers to pay their debts with tax-return proceeds....



TIAA Builds MBS-Issuance Shelf

Fri, 15 Jun 2018
A year after buying EverBank, TIAA is ready to begin securitizing jumbo mortgages under its own name.A team of attorneys hired by the $1 trillion asset manager has been working for the past month or so to set up an issuance vehicle dubbed TIAA Bank Mortgage Loan Trust. A debut transaction of about $500 million is expected to hit the market any day.In EverBank, TIAA picked up an online-banking and mortgage-lending operation that relied in part on...



Sandler Pitches Retention Strategy

Fri, 15 Jun 2018
Sandler O’Neill & Partners is telling collateralized loan obligation issuers that it can raise money for them through corporate-bond sales.The pitch, geared toward smaller managers, is that the firms could use the proceeds to retain equity positions in their CLOs. Sandler closed its first such deal on June 6, privately placing $30 million of five-year unsecured notes for Trinitas Capital.The bank’s strategy is based partly on the idea...



The Grapevine

Fri, 15 Jun 2018
Continuing a hiring spree that began last year, Cantor Fitzgerald has picked up three mortgage-bond sales professionals from Nomura. Alexandra DaCosta was a managing director in Nomura’s Boston office, which she joined in 2009 from Mesirow Financial. Brendan McNamara was a vice president in New York, having arrived in 2010 from State Street. Sources said a junior staffer also will make the move. It’s unclear when the recruits will...



The Grapevine

Fri, 15 Jun 2018
(SEE CORRECTION BELOW) Senior credit officer Youriy Koudinov has left Moody’s mortgage-bond surveillance group in New York. Koudinov had worked at the agency since 2013, following stops at TIAA, Access Industries, Credit Suisse, Manhattan Consulting, Bankers Trust and Fidelity Investments. His exit follows a series of moves within the mortgage-bond surveillance unit that included the 2017 retirement of Eric Fellows, the promotion of former...



The Grapevine

Fri, 15 Jun 2018
SunTrust is seeking a New York-based associate to help arrange securitizations for clients. The recruit’s duties would include business-development tasks and performing due-diligence reviews on asset pools. Candidates can email SunTrust hiring manager Ileana Chu at ileana.chu@suntrust.com.



The Grapevine

Fri, 15 Jun 2018
New Diligence Advisors has hired a vice president to head a mortgage-review team in Jacksonville. Mikhael Mikle arrived this month from PHH Mortgage, where she held a series of posts dating back to 1997. Most recently, she was a site director responsible for credit-risk administration and whole-loan repurchases.



The Grapevine

Fri, 15 Jun 2018
Attorney Michael Jo joined Kroll’s New York office in May as a managing director focused on the legal aspects of residential and commercial mortgage-bond deals. Jo most recently worked as a managing director at REIT Annaly Capital from 2013 to July 2017. He also has spent time at KSL Capital, Fortress Investment, CWCapital and Weil Gotshal.



The Grapevine

Fri, 15 Jun 2018
Mortgage-finance specialist Andrew Platt has taken a job as senior managing director at agency lender Sun West Mortgage. Platt had been working since 2015 as chief investment officer at Sprout Mortgage, a conduit operation focused on loans that fall outside the Bureau of Consumer Financial Protection’s “qualified-mortgage” guidelines. While Sprout hasn’t issued mortgage bonds, Platt was involved in such transactions in...



The Grapevine

Fri, 15 Jun 2018
Former Lending Club executive Sid Jajodia has landed in the top lending role at PayU, a company whose products include online small-business loans. Jajodia, who is based in Amsterdam, had been employed at Lending Club from 2013 to this April. His work there included managing a series of in-house personal-loan funds and helping to pitch some early securitizations. Earlier, he worked at Capital One. There’s no word on whether PayU plans to...



The Grapevine

Fri, 15 Jun 2018
William “Wim” Ludington, who once led structured-product sales at Canaccord Genuity, has taken a job as a partner at wealth manager Dowling Group in Greenwich, Conn. Ludington’s new job doesn’t involve securitization, nor did the one he took at insurance broker Swett & Crawford after Canaccord shuttered its broker-dealer unit in 2015. But he earlier worked in the industry at banks including CapRok Capital, UBS and J.P....



UK Student-Loan Bonds Teed Up in the States

Fri, 08 Jun 2018
A company that writes student loans in the U.K. is planning to issue asset-backed bonds, with an eye toward distributing the securities in the U.S.Future Finance already has been talking to underwriters and rating agencies, indicating that it hopes to float an offering of perhaps $150 million in late 2018 or early 2019. The collateral: private loans that it extends to individuals attending universities in the U.K.Future’s desire to sell its...



Candidate List Emerges for FHFA Leader

Fri, 08 Jun 2018
The Trump Administration is considering a short list of candidates to replace Mel Watt as head of the Federal Housing Finance Agency.The frontrunners are:Mark Calabria, chief economist to Vice President Mike Pence.Adolfo Marzol, senior advisor to HUD Secretary Ben Carson.Mick Mulvaney, director of the Office of Management and Budget and acting head of the Consumer Financial Protection Bureau.Craig Phillips, counselor to Treasury Secretary Steve...



Citi Alumni to Finance Consumer Lenders

Fri, 08 Jun 2018
Former Citigroup bankers Ari Rosenberg and David Mandel are starting a business that would back consumer lenders, with securitization as part of their strategy.The New York operation, Spot18, is forming as a unit of investment firm Sherman Financial. Rosenberg and Mandel started talking to prospective clients this week.Sources said the operation would offer warehouse lines to originators of consumer-finance products including personal loans, auto...



Upgrades Propelling MBS Rally

Fri, 08 Jun 2018
A flurry of rating upgrades is adding momentum to a continuing rise in the values of jumbo-mortgage bonds.S&P has twice raised its marks on large samplings of home-loan securities in recent months, most recently taking such actions on May 30 for 59 classes of notes issued from 2012 to 2015. Investors, anticipating additional rating increases from the agency in the coming months, have responded by accepting tighter spreads on the secondary...



Rollback Seen for "Bond-Bucket' Rule

Fri, 08 Jun 2018
Collateralized loan obligation issuers anticipate that the Federal Reserve’s Volcker Rule overhaul will again open the door to the use of bonds in their asset pools.While no explicit prohibition exists for so-called bond buckets, the Volcker Rule has since 2015 barred banks from investing in CLOs whose underlying portfolios include anything but loans — leading issuers to structure their deals accordingly.The Fed’s proposed...



Loan Science Preps Debut Offering

Fri, 08 Jun 2018
Loan Science is preparing to securitize a portfolio of private student loans.The Austin firm is working with Bank of America on a Rule-144A offering of about $200 million. The deal, with ratings from DBRS, is expected to price in the next week or so.It would be the first securitization from Loan Science, which advises student-loan investors on analyzing, managing and servicing their portfolios. The deal’s collateral encompasses some 12,000...



Santander Forecasts Steady Supply

Fri, 08 Jun 2018
Santander Consumer USA is signaling that its near-term output of asset-backed bonds won’t be hurt by the loss of its status as the preferred lender for Fiat Chrysler.That’s in part because the only receivables Santander recently was securitizing under the Chrysler Capital brand were leases. And since it will take some time for the two companies to unwind their partnership, Santander expects to continue generating collateral for fresh...



Digital Risk Chases Diligence Work

Fri, 08 Jun 2018
Digital Risk is working to become a more active supplier of due-diligence services in the non-agency mortgage market.The effort comes on the heels of a technology upgrade. While the Maitland, Fla., operation works mainly in the agency mortgage sector, it recently has sold its due-diligence services to some buyers of nonperforming and reperforming private-label loans.Digital Risk also is pitching itself to buyers of performing non-agency loans,...



Mixed Signals for CLO Pools

Fri, 08 Jun 2018
Asset-quality indicators for collateralized loan obligations issued after the credit crisis were mixed in March.For U.S. deals, median holdings of defaulted collateral fell 15 bp from the previous month to zero, matching the long-running level seen in Europe, according to Moody’s. Median holdings of loans rated “Caa1” or lower also fell, by 2 bp to 3.58% for U.S. deals and 4 bp to 1.74% for transactions in Europe. But...



Big Gains for Low-Scoring Loans

Fri, 08 Jun 2018
The performance of online personal loans with the highest risk profiles improved in May, outpacing less-risky accounts.According to a new index from Kroll, “Tier 3” loans experienced a 580 bp decline in losses for the month, to an annualized 20.15%. Delinquencies were down 68 bp, to 4.35%. The Tier 3 class tracks securitized loans to borrowers with credit scores of 630-660 from Avant and Lending Club. Improved underwriting standards...



Busy Month Ahead for ABS Issuance

Fri, 08 Jun 2018
Get ready for a fresh flow of new asset-backed bond offerings.After taking a bit of a breather in which they completed just $3.7 billion of deals this week, issuers are preparing to unleash some $30 billion of transactions before Independence Day.“I would definitely expect the next three weeks to be busy,” one banker said. “There has been a lot of marketing activity in recent days.”The heavier dealflow will be noticeable...



No Bump Seen From Fed Action

Fri, 08 Jun 2018
The Federal Reserve’s revisions to the Volcker Rule aren’t expected to lead to a big increase in structured-product trading.That’s because the largest 40 or so banks still will be subject to a ban on proprietary trading and thus won’t be able to build large in-house inventories. And smaller institutions typically aren’t in positions to create sizeable trading books.For those shops, the more likely scenario would be...



The Grapevine

Fri, 08 Jun 2018
Portfolio manager Murtaza Haque has left Sound Point Capital to join GoldenTree Asset Management. Haque had started at Sound Point in 2012 as senior analyst, following stops at Apollo Management and Bank of America. New York-based GoldenTree, led by Steven Tananbaum, invests in a range of credit products.



The Grapevine

Fri, 08 Jun 2018
Sales specialist Michael Murray left Imperial Capital on May 31 amid a move by the New York broker-dealer to unwind its structured-product business. Murray had joined Imperial in 2016. He also has worked at Nomura, Cantor Fitzgerald and Credit Suisse. His exit followed that of Keith Grimaldi, Imperial’s head of structured credit product trading.



The Grapevine

Fri, 08 Jun 2018
Sales specialist Patrick Carvell will start this month at Hunt Financial Securities of Rye Brook, N.Y. Carvell had been employed since 2010 as a vice president at KeyBank. He also has spent time at HBK Investments and J.P. Morgan.



The Grapevine

Fri, 08 Jun 2018
Ned Myers no longer is working as head of capital-markets strategy at Black Knight, a role in which he had been working to extend the Jacksonville firm’s mortgage data and analytics services into the bond market. His new employer: New York blockchain-technology company AlphaPoint. Myers had joined Black Knight in 2015 from Lewtan.



The Grapevine

Fri, 08 Jun 2018
Managing director Christopher Esposito left Duff & Phelps’ New York office last week. Esposito had joined the firm in October 2016 as a member of a team that offers valuation, risk-management and advisory services to holders of complex assets, including structured products. He served as FirstKey’s temporary chief financial officer before that, following a long run at Deloitte in which he led the accounting firm’s...



The Grapevine

Fri, 08 Jun 2018
Mortgage-analytics firm Recursion Co. has hired a head of research. The recruit, Richard Koss, had been working as an adjunct business professor at Johns Hopkins University since 2016. Before that, he led capital-markets research at Fannie Mae and managed fixed-income investments at Brown Brothers Harriman. His former employers also include CIBC and General Motors. Recursion is led by former Paulson & Co. analyst Li...



The Grapevine

Fri, 08 Jun 2018
Wells Fargo has openings for two junior mortgage-finance specialists. One of the recruits would help set up warehouse lines, with duties including preparing underwriting documents and analyzing originators’ financial data. The other would work on the securitization side, assisting in marketing efforts and communications with lawyers, accountants, due-diligence teams and traders. Both new employees would hold the title of associate and would...



The Grapevine

Fri, 08 Jun 2018
Waterfall Asset Management is seeking a vice president for its capital-markets team. The recruit would work in New York with a focus on offering warehouse lines to clients, and would help some of those operations bundle their assets into securitizations. Candidates can apply by emailing vice president Tim Geraghty at tgeraghty@waterfallam.com.



The Grapevine

Fri, 08 Jun 2018
Fiona Nelson started her new job at Barclays this week. Nelson had signed on with the bank in April as a director on a London team that helps clients finance a mix of assets, often through securitization. She had been working at Morgan Stanley since 2014. Her former employers also include Giltspur Capital, Urbanicity, Nationwide Building Society and Merrill...



US Bank Considering Card-Bond Program

Fri, 01 Jun 2018
U.S. Bank is giving serious thought to securitizing its massive portfolio of credit-card receivables, instead of relying solely on deposits.Treasury officials in the bank’s Chicago headquarters have been talking to underwriters about an initial offering of perhaps $500 million, sources said. The deal could hit the market by yearend.The initiative coincides with a separate push by U.S. Bank to expand its role as an underwriter of...



Climate Change Inspires Issuing Proposal

Fri, 01 Jun 2018
Pacific Gas and Electric is proposing a new use for utility-fee securitizations.The San Francisco company has proposed to the California Public Utilities Commission that it could deploy the proceeds from such transactions to fortify its generation facilities in the state against disasters resulting from climate change — including storms and wildfires. Should the effort move ahead, the expectation is that copycat offerings could surface...



Supply, Regs Take Center Stage in Barcelona

Fri, 01 Jun 2018
Against a backdrop of conflicting signals, industry participants are heading to this year’s “Global ABS” conference in hopes of better understanding the direction of Europe’s structured-product market.The event, hosted by the Association for Financial Markets in Europe and Information Management Network, takes place June 5-7 at the Barcelona International Convention Center.On one hand, strong new-issue supply promises to...



Dead End for "Deal Agent' Concept

Fri, 01 Jun 2018
A proposal by industry leaders including the Structured Finance Industry Group to enlist “deal agents” to monitor mortgage securitizations appears to have died.The idea of a deal agent that would work with issuers and trustees to bolster investor confidence surfaced in 2015 as the U.S. Treasury Department was developing initiatives to revive the market for private-label mortgage securities. Investors that got burned during the...



Container-Deal Volume Set to Rise

Fri, 01 Jun 2018
Get ready for a flurry of bond offerings backed by leases on shipping containers.Big suppliers including CAI International, Textainer Group and Triton International are gearing up to issue a half-dozen or more deals in the next six months or so. The combined dollar volume of the transactions could reach $3 billion.Year-to-date, container suppliers have priced four asset-backed bond offerings totaling $1.4 billion, according to Asset-Backed...



Covenant Gets Boost From AIG

Fri, 01 Jun 2018
Collateralized loan obligation issuer Covenant Credit is remaining intact as a unit of AIG.Sources said managing partner Marc Boatwright continues to lead his Charlotte-based team while retaining oversight of its CLO-issuing business, and possibly adding some personnel. With AIG already established as a large investor in such deals, meanwhile, it stands to gain a ready equity buyer.That could help Covenant become a more stable issuer, as could...



CLO Pros Sound Off on Loan Terms

Fri, 01 Jun 2018
Collateralized loan obligation investors are becoming more vocal about deteriorating asset quality.Industry participants have been grumbling about the situation since 2016, pointing to a trend in which leveraged-loan borrowers have been refinancing their debts at lower interest rates and with increasingly lax terms. But their concerns were especially palpable at Information Management Network’s annual “Investors’ Conference on...



Kayne Anderson Joins CLO Ranks

Fri, 01 Jun 2018
Kayne Anderson Capital has completed its first collateralized loan obligation.The $407 million offering priced on May 30. J.P. Morgan is running the books.Sources said Kayne Anderson employees were meeting with investors at Information Management Network’s annual “Investors’ Conference on CLOs and Leveraged Loans” on May 23-24 in New York. Overseeing the push is John Eanes, a former Ares Management senior portfolio...



Investors Get Crack at Mortgage Pool

Fri, 01 Jun 2018
Mountainview Financial is auctioning a portfolio of nonperforming home loans.The pool, with a total principal balance of more than $100 million, is expected to trade at a price of roughly 65 cents on the dollar. Mountainview, a Denver firm that supplies data and other services to issuers and investors, is conducting the auction on behalf of a West Coast hedge fund.Bids are due by 2 p.m. on June 1.The offering is expected to attract the attention...



World's Leading Structured-Product Bankers, Syndicators and Traders

Fri, 01 Jun 2018
The listing below shows contact information for the top-ranking securitization professionals at the investment banks that consistently distribute the most asset- and mortgage-backed bonds worldwide.The institutions included typically have achieved rankings atop league tables published by Asset-Backed Alert.Head bankers oversee deal origination, structuring and other areas unrelated to trading and syndicate operations. Those in charge of syndicate...



The Grapevine

Fri, 01 Jun 2018
Keith Grimaldi has exited his post as head of structured credit product trading at Imperial Capital, apparently amid a move by the New York firm to withdraw from those instruments — including asset-backed bonds, mortgage securities, collateralized loan obligations and whole loans. Grimaldi, a market veteran who arrived at Imperial in 2012, earlier held a similar position at Cantor Fitzgerald and led CDO origination and trading at UBS. He...



The Grapevine

Fri, 01 Jun 2018
Managing director Sloan Sutta has departed the structured-product investment team at Och-Ziff Capital. Sutta had joined the New York hedge fund operator in 2015 from Garrison Investment, where he held a similar role. He also has spent time at Credit Suisse and GLG.



The Grapevine

Fri, 01 Jun 2018
Huub Mourits is no longer head of structured-finance services at TMF Group, a role in which he most recently led a group that helps clients establish and run collateralized loan obligation issuing vehicles in Europe. Mourits’ plans couldn’t be learned. He joined TMF in 2001 from NIBC Bank. TMF was purchased last year by CLO issuer CVC Capital.



The Grapevine

Fri, 01 Jun 2018
Fouad Onbargi has taken a job as a vice president at Burnham Sterling, an investment-banking firm in Greenwich, Conn., that arranges a mix of aircraft-finance transactions for clients — including securitizations. Since January 2017, Onbargi ran a business called ABS Advisory Services that helped customers securitize healthcare receivables and nonperforming mortgages. He earlier led the securitization-banking group at KGS-Alpha Capital, and...



The Grapevine

Fri, 01 Jun 2018
Anthony Brown has resurfaced in the New York office of East West Bank, filling a role in which he helps arrange structured-finance transactions for commercial and industrial clients. Brown had been working until February 2017 as a senior director handling asset-backed bond originations and commercial-paper conduit deals at NordLB. He started there in 2007, after stops at Calyon, NatWest, Lehman Brothers and Citigroup dating back to...



The Grapevine

Fri, 01 Jun 2018
Senior banker Gregory Roti left Wells Fargo in early May to join the Charlotte office of Man Group. Roti had been working at Wells since 2012 as head of a group that supplies repurchase facilities and warehouse lines to originators of investment-property loans — including those that issue asset-backed bonds. He is taking a similar post at Man. Roti also has worked at River...



The Grapevine

Fri, 01 Jun 2018
MUFG Securities has an opening for a vice president. The recruit would structure asset-backed bond and asset-backed commercial paper transactions in a mix of asset classes, while also developing cashflow models for those deals. The recruit would work in New York, reporting to group head Tricia Hazelwood. Candidates can apply by emailing recruiter Lauren Pressman at...



The Grapevine

Fri, 01 Jun 2018
Morningstar has hired an analyst to cover bonds backed by mortgages and rental-home receivables. Minxi Qiu arrived as a vice president in the agency’s New York office on May 28, reporting to mortgage-bond head Kevin Dwyer. Qiu had been working at Moody’s since 2009, and before that was at Ernst & Young.



The Grapevine

Fri, 01 Jun 2018
Shirley Prada-O’Reilly has transferred off of Hunt Financial’s structured-product sales desk, taking a job as a director in the capital markets area of commercial mortgage lending affiliate Hunt Mortgage in New York. Prada-O’Reilly was among a group of former Jefferies personnel who followed former Hunt president William Jennings to the firm in 2017. She also has worked at J.P. Morgan and Bear...



"Headline Risk' Holds Up Wells' RMBS Plan

Fri, 25 May 2018
Wells Fargo has pushed back a plan to securitize newly originated jumbo mortgages for the first time since the financial crisis.With its portfolio of jumbo loans approaching $300 billion — the highest total for any bank — Wells last year began planning to revive a once-prolific mortgage-securitization program. There was talk that an initial offering of perhaps $1 billion would hit the market before yearend 2017, after which the bank...



Uber Partner Kicks Off Issuance Effort

Fri, 25 May 2018
Startup auto-leasing company Fair is developing a securitization program.Officials from the Santa Monica, Calif., company have been talking to rating-agency analysts about an initial offering that would hit the market during the second half of this year. The underlying receivables: a portfolio of leases it agreed to buy from Uber in January.Those accounts currently are financed through warehouse facilities of $500 million each that Fair recently...



Credit Agricole Lands Starr for Leading Role

Fri, 25 May 2018
Beth Starr joined Credit Agricole’s New York office this week as a managing director in charge of the bank’s asset-backed bond syndicate desk.Starr had been working until April as head of the capital-markets group at Spruce Finance, a solar-equipment lender that completed a single securitization shortly before her arrival in 2016 but more recently has struggled to stay in business.Before that, Starr helped shepherd a series of bond...



Banking Rules Open Door to Trading

Fri, 25 May 2018
A component of Congress’ Dodd-Frank Act rollback could lead to increased trading of asset-backed bonds and collateralized loan obligations.The expectations hinge on a provision in the Economic Growth, Regulatory Relief, and Consumer Protection Act, signed into law by President Trump on May 24, that renders banks with less than $10 billion of assets exempt from the so-called Volcker Rule.That’s because banks that fall under...



Ford Kicks Issuance Into High Gear

Fri, 25 May 2018
With its investment-grade rating on shaky ground, Ford is again hitting the gas on its securitization program.So far this year, the Dearborn, Mich., automaker has issued five asset-backed bond offerings totaling $6 billion, compared to four deals for $4.9 billion a year earlier. And it is still in the early stages of a plan to substantially increase its issuance of those bonds, backed by loans, leases and deal-floorplan accounts.Ford began...



Exeter Alum Eyes Auto Program

Fri, 25 May 2018
Subprime auto-lending veteran Mark Floyd’s arrival at Horizon Digital Finance is sparking rumors that the company could emerge as an asset-backed bond issuer.Horizon Digital currently focuses on matching borrowers with subprime auto lenders online under its myAutoloan.com brand. But Floyd apparently wants the Irving, Texas, company to form its own origination business that eventually would fund itself through securitization.Floyd bought a...



Retained CLOs Make the Rounds

Fri, 25 May 2018
Collateralized loan obligation issuers are unloading increasing volumes of bonds that they kept under the Dodd-Frank Act’s risk-retention rule.The offerings first surfaced in April, after a U.S. Appeals Court panel in Washington ruled that CLOs should be exempt from the skin-in-the-game requirement. But they especially picked up after the Federal Reserve and SEC let a May 10 deadline pass without appealing the decision.BlueMountain Capital,...



Supply Heats Up in Latin America

Fri, 25 May 2018
A flurry of securitizations is shaping up in Latin America.Among offerings that industry participants anticipate for this year are personal-loan deals from Brazil. They also expect more mortgage-bond transactions from Argentina, along with what could be billions of dollars of issues that would finance the construction of toll roads, bridges and other public projects in the nation.S&P said in a May 7 report that those projects are part of the...



Fitch: Used-Car Supply Poses Risk

Fri, 25 May 2018
Holders of bonds backed by subprime auto loans could be in for a bumpy ride.In a report to be released on May 29, Fitch forecasts that the supply of used cars will continue to swell, further depressing resale values. That, in turn, could hurt the performance of securitized subprime loans written against those vehicles, potentially leading to bond downgrades.“While loss frequency has been largely stable, loss severity is rising as...



PACE Rules Weigh on Bond Supply

Fri, 25 May 2018
A new California law is cutting down on originations of Property Assessed Clean Energy loans, thus reducing potential for securitizations in the space.At issue is a change to the California Financial Code that, effective April 1, requires all PACE loans in the state to include assessments of whether borrowers have a “reasonable ability” to repay their debts. The update, signed into law by Gov. Jerry Brown last October, also stepped up...



The Grapevine

Fri, 25 May 2018
Chris Haid joined BNP Paribas in recent weeks as head of asset-backed bond trading. Haid had been working in a similar capacity at Barclays from 2004 to this January, when he was caught in a round of layoffs. Before that, he was a portfolio manager at Merrill Lynch Investment Managers.



The Grapevine

Fri, 25 May 2018
Morgan Stanley has a new head of asset-backed bond trading. Bharat Chandrasekaran is expected to join the bank’s New York office by mid-June, filling a vacancy created with Dave Bell’s move to Baird in April. Chandrasekaran most recently was trading commercial mortgage bonds at Deutsche Bank, where he started in 2011 with an initial focus on balance-sheet-optimization efforts involving swaps and repurchase facilities. He also spent...



The Grapevine

Fri, 25 May 2018
Ajay Chawdhry is leaving his New York post as head of a team covering structured-product sales in North America and South America at Standard Chartered Bank. Sources said Chawdhry will wait out a gardening leave before starting a new job. He had joined Standard Chartered in 2007 after stops at Deutsche Bank, Transworld and Ernst & Young.



The Grapevine

Fri, 25 May 2018
CBAM has added a leveraged-loan trader to its collateralized loan-obligation issuing unit. Allie Fink arrived in the operation’s New York office in recent weeks from Guggenheim, where she worked since 2017. Fink also has spent time at Veronis Suhler Stevenson and Morgan Stanley. CBAM has issued six CLOs totaling $7.1 billion since entering the market in 2017. The firm is led by former Guggenheim executive Michael Damaso, one-time...



The Grapevine

Fri, 25 May 2018
Allstate has an opening on its collateralized loan obligation team in Chicago. The recruit would serve as an intermediate portfolio manager, working alongside staffers including senior portfolio manager Chris Goergen to oversee holdings of leveraged loans and corporate bonds. Allstate is focusing on candidates with 5-7 years of experience. The insurer’s CLO division oversees $2 billion of assets underpinning four deals it has issued since...



The Grapevine

Fri, 25 May 2018
Longtime securitization specialist Charles Macintosh resurfaced last month as head of sales at Lima One Capital, a Greenville, S.C., firm that writes loans to residential property investors. Macintosh had been a technology consultant to Orchard Platform from September to November, and before that headed the capital-markets business at FirstKey Mortgage. He also has worked at Sterne Agee, Morgan Keegan, Thornburg Mortgage, Merrill Lynch and Lehman...



The Grapevine

Fri, 25 May 2018
Mortgage-review firm New Diligence Advisors added two senior personnel to its Jacksonville office this month. Anthony Grasso signed on as head of compliance, moving over from a mortgage due-diligence role that he held at Mission Global since 2017. Grasso also has worked at Opus Capital, Waterworth Mortgage and J.P. Morgan. Also on board is David Littleton, a vice president responsible for technology. He was working at EverBank since 2010. New...



The Grapevine

Fri, 25 May 2018
J.P. Morgan has an opening for an analyst in its asset-backed commercial paper group. The recruit would be stationed in Chicago, working with investors and rating agencies while producing monthly asset-performance reports. J.P. Morgan runs two conduits with about $23 billion of securities outstanding.



The Grapevine

Fri, 25 May 2018
Zhengyuan Lu is headed to the New York office of Silicon Valley Bank, with the mission of offering financing to a mix of online loan originators. Lu had been working in a similar capacity at Victory Park Capital since 2016, and before that spent time at OnDeck Capital, Gleacher & Co., Keefe Bruyette & Woods, Fortis Bank and WestLB.



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Amherst PierpontContact: Erez Biala646-776-7826ebiala@apsec.comErez Biala646-776-7826ebiala@apsec.comWith secondary-market trading slow across the board, the firm has been arranging refinancings of existing deals. Erez Biala, who arrived in 2016 from Jefferies, hopes to build a full-fledged origination business. Sales staff includes former Guggenheim trader Joe Guzzi.NOTE: Complete listing appeared in May 18, 2018, issue of Asset-Backed Alert and...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Auriga USAContact:Paul Pasqua646-998-6453paul.pasqua@aurigausallc.comAfter backing away, returned to secondary-market trading with the March hiring of Paul Pasqua. He had been working at StormHarbour Securities, where origination business evaporated.NOTE: Complete listing appeared in May 18, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Market...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
BairdContact:David Barrish646-557-3237dbarrish@rwbaird.comContinued to build up busy secondary-market trading operation this month with the addition of sales specialist Darryl Smith, who just shut down a rival unit at ED&F Man. The move gives Baird two CLO sales specialists, augmenting a broader structured-product sales team.NOTE: Complete listing appeared in May 18, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Bank of AmericaContact: Wynne Comer646-855-7771wynne.comer@baml.comEd Tang646-855-8562edward.c.tang@baml.comCharles Hand44-207-996-7964charles.hand@baml.comAlex Murdzhev646-855-9680aleksandar.murdzhev@baml.comLeap in volume led to a number-two league-table ranking in 2017, reversing a drop in 2016. And that doesn’t include a heap of refinancing work. Wynne Comer leads origination, with Ed Tang heading syndication and Charles Hand overseeing...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
BarclaysContact: Jonathan Kitei212-412-2035jonathan.kitei@barcap.comAdrian Radulescu212-412-1310adrian.radulescu@barclays.comSebastien Illat44-207-773-3821sebastien.illat@barclays.comSam Oher212-526-0998samuel.oher@barclays.comMichael Clarke44-207-773-5339michael.clarke@barclays.comU.S. staff buildup has paid off, with above-market growth complementing status as a go-to underwriter in Europe. In just the last month, hired CLO co-head John...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
BNP ParibasContact: Adnan Zuberi212-841-3877adnan.a.zuberi@us.bnpparibas.comDushy Puvan44-207-595-8500dushy.puvan@uk.bnpparibas.comOmar Chaudhry212-471-8252omar.chaudhry@us.bnpparibas.comMehdi Kashani44-207-595-1819mehdi.kashani@uk.bnpparibas.comMaintains a stable presence just a step below the most active banks. Standing has been aided by generous warehouse financing and structuring flexibility, including conversions of dollar-denominated paper...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Brean CapitalContact:Richard Barry212-702-6585rbarry@breancapital.comPouya Minazad212-702-6527pminazad@breancapital.comLike its peers, has felt the effects of slow secondary-market trading. Has kept active, however, and was buoyed by recent volatility. Richard Barry set up the operation in 2015 with focus on mezzanine and equity trades, drawing on a deep contact list.NOTE: Complete listing appeared in May 18, 2018, issue of Asset-Backed Alert and...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Brownstone InvestmentContact:Marc Steinberg212-905-0546msteinberg@brownstone.comHas gradually claimed trading business following the 2016 hiring of Eric Steinberg, formerly of ED&F Man, Guggenheim and Morgan Stanley. Additions on the sales side also have helped.NOTE: Complete listing appeared in May 18, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Market...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Cantor FitzgeraldContact:Ervin Pilku212-829-5259epilku@cantor.comFocused on secondary-market trading for now, but has been seeking an origination head. That addition would supplement a broader structured-product push under the leadership of former Deutsche Bank executive Anshu Jain.NOTE: Complete listing appeared in May 18, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Market...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
CitigroupContact: Jim Hughes212-723-1120jim.hughes@citi.comEric Velay44-207-986-1227eric.velay@citi.comLaura Coady44-207-986-1304laura.coady@citi.comBrian Bejile212-723-1024brian.bejile@citi.comVitaliy Kozak44-207-986-3702vitaliy.kozak@citi.comMaintaining usual status as the market’s busiest underwriter. But outsiders see it as vulnerable without former origination co-head John Clements, who left after Jim Hughes was promoted to lead the...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Credit SuisseContact: Brad Larson212-325-9207brad.larson@credit-suisse.comArun Cronin44-207-888-3449arun.cronin@credit-suisse.comBrian Hochhauser212-325-3563brian.hochhauser@credit-suisse.comSlipped out of the top-five underwriters of new deals, but has kept active in the refinancing business. After a string of exits dating back to 2015, tumult continued on the secondary-market desk with this month’s ouster of Carlos Garza and installation...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Deutsche BankContact: Francis McCullough212-250-2530francis.mccullough@db.comSebastien Cottrell212-250-7553sebastien.cottrell@db.comAnna Farbiszewska212-250-7553anna.farbiszewska@db.comMatthew Matson212-250-7553matthew.matson@db.comJohn Parker44-207-547-3157john.parker@db.comStill trying to regain former top-10 status, with 2017 growth trailing market levels. Head trader Francis McCullough moved from London to New York last year. Team remains...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Goldman SachsContact: Amit Roy212-357-2019amit.roy@gs.comKamal Ramnani212-357-0077kamal.ramnani@gs.comHas climbed farther into the top-10 underwriters this year. Trading head Sameer Maru stepped aside in April, with his more market-facing colleague, Kamal Ramnani, promoted to oversee the desk. Leadership on the banking side is unchanged.NOTE: Complete listing appeared in May 18, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com,...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
GreensLedge CapitalContact: Ken Wormser212-796-6551kwormser@greensledge.comBrian Zeitlin212-792-5272 bzeitlin@greensledge.comPaul Levy44-203-440-3034plevy@greensledgeuk.comJean-Manuel Costa44-203-440-3031jmcosta@greensledgeuk.comJim Kane212-792-5271jkane@greensledge.comDavid Powar212-796-6552dpowar@greensledge.comBusiness fell off slightly last year, despite market growth. The dip was offset by refinancing work, although the firm hasn’t...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
GuggenheimContact: Mario Verna212-293-3970mario.verna@guggenheimpartners.comBryan Gonnella212-518-9544bryan.gonnella@guggenheimpartners.comEnded a drought on the underwriting side last year, with assignments from issuers including ArrowMark Partners, Highland Capital and New York Life. Dealflow remains sporadic, but is supplemented by other work. Lost head trader Nirjhar Jain to hedge fund manager LibreMax Capital in November, and promoted Bryan...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Hunt FinancialContact:Jiwon Park914-701-1028jiwon.park@huntfinsecurities.comPaul Tedeschi914-701-1028paul.tedeschi@huntfinsecurities.comJoined the secondary-market trading business with the August hiring of Jiwon Park from KeyBank. Added Paul Tedeschi from Spring Hill Capital in November. The effort is part of a broad push into structured-product trading and origination.NOTE: Complete listing appeared in May 18, 2018, issue of Asset-Backed Alert...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
J.P. MorganContact: Sean Griffin212-834-5532sean.p.griffin@jpmorgan.comShivraj Bhushan212-834-2424shivraj.s.bhushan@jpmorgan.comMatt Carpenter44-207-134-0709matthew.carpenter@jpmorgan.comBusiness as usual for top-five origination team, thanks in part to busy leveraged-loan syndication business. But trading desk was shaken up by Kristen Erickson’s February move to TPG. Her duties now belong to Shivraj Bhushan in New York and Matt Carpenter...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Janney Montgomery ScottContact:Clay Brasher212-888-2931cbrasher@janney.comFortified sales staff with the March addition of Anthony Veltri from ED&F Man. He concentrates on equity buyers, while Jeff Bertoni and Ross Heller place mezzanine bonds. Priority remains trading, with no plans to expand into origination.NOTE: Complete listing appeared in May 18, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
JefferiesContact: Jason Schechter212-336-7176jschechter@jefferies.comJason Schechter212-336-7176jschechter@jefferies.comMore or less keeping pace with the market, sitting just outside the top-10 underwriters. Has an outsized presence in longer-term refinancings that reset deal terms. But efforts in Europe have been sluggish, with London managing director Sharif Anbar-Colas leaving in London.NOTE: Complete listing appeared in May 18, 2018, issue...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
KGS-AlphaContact:Richard Rizzo646-560-7048rrizzo@kgsalpha.comAlready a force on the secondary market, KGS-Alpha is attracting attention for what it might do after a pending takeover by BMO. Early expectations are a further expansion under Richard Rizzo, who once led CLO trading at Deutsche Bank.NOTE: Complete listing appeared in May 18, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Marv CapitalContact:Alexey Drono212-244-7561adronov@marvcapital.comRaised profile with the 2016 hiring of equity-focused trader Alexey Dronov, formerly of Highland Capital. He works under Manish Awasthi and Raparthi Virupaksha.NOTE: Complete listing appeared in May 18, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Market...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
MizuhoContact: Steve Kahn212-205-7568steven.kahn@us-mizuho-sc.comHao Jiang212-205-7598hao.jiang@us-mizuho-sc.comJim Stehli212-205-7568james.stehli@us.mizuho-sc.comAmit Khurana212-205-7568amit.khurana@us.mizuho-sc.comHasn’t led a new deal since 2015, but has been helping clients refinance existing transactions. And with secondary-market trading also slow, recently dismissed some personnel from what was an over-manned sales team.NOTE:...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Morgan StanleyContact: Loris Nazarian212-761-4756loris.nazarian@morganstanley.comRachel Russell212-761-2832rachel.russell@morganstanley.comOrestis Millas44-207-677-8119oristis.millas@morganstanley.comRebecca Dorrian212-761-2102rebecca.dorrian@morganstanley.comHas continued to solidify its business after layoffs and leadership changes in 2016, ranking as one of the busiest underwriters of new deals while handling heavy refinancing volume. Already...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
MUFGContact: Asif Khan212-405-7360akhan@us.sc.mufg.jpSean Gibson212-405-7493sgibson@us.sc.mufg.jpContinued to pick up underwriting and refinancing business last year, with a modest flow of assignments. Drummed up work, in part, by hosting conferences in Asia that introduce U.S. issuers to investors across the region. This year’s stops were in Hong Kong, Shanghai and Tokyo.NOTE: Complete listing appeared in May 18, 2018, issue of...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
NatixisContact: Alex Zilberman212-891-5870alex.zilberman@us.natixis.comReggie Fernandez212-891-1979reginald.fernandez@us.natixis.comDealflow has kept up with market growth despite high-level staff departures in recent years. But the biggest challenge may have come this April, when Mike Hopson left for Barclays. Outsiders think issuers of bonds backed by mid-size loans might follow him, relegating Alex Zilberman to work mostly on issues secured by...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
NomuraContact: Nate Weber212-667-2284nathaniel.weber@nomura.comAnton Lokho212-667-2230anton.lokhov@nomura.comBen Ufer212-667-2406benjamin.ufer@nomura.comGiven its status as perhaps the most active player on the secondary market, the bank has felt the effects of a broad trading slowdown more than most. Already-slow underwriting business took another hit with the October exit of head structurer Cary Ho for CVC Capital. Nate Weber has absorbed his...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
RBC CapitalContact: Russell Pemberton212-618-7765russell.pemberton@rbccm.comTom Hasse212-618-7723thomas.hasse2@rbc.comNew-issue supply has slowed, but pipeline is robust and refinancing activity has been decent. Previously attracted clients by offering risk-retention financing, but this year lost that ability with the defanging of the Dodd-Frank Act’s skin-in-the-game rule. Cut loose head trader Florian Bita in April and installed colleague...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Societe GeneraleContact: Harry Huang212-278-5978harry.huang@sgcib.comHong Zhao212-278-5686hong.zhao@sgcib.comUnderwriting assignments remain characteristically scarce, although there are deals in the pipeline. Weighing a move into Europe’s growing market. Bogomil Ivanov, formerly of Seer Capital and Deutsche Bank, joined structuring team in October.NOTE: Complete listing appeared in May 18, 2018, issue of Asset-Backed Alert and can be found...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Wells FargoContact: Kevin Sunday704-410-2384 kevin.sunday@wellsfargo.comJason Powers704-410-2490 jason.a.powers@wellsfargo.comSergei Zagin704-410-3315 sergei.zagin@wellsfargo.comHas trailed other large banks in refinancing volume. But new-issue underwriting business remains solid, with this year’s client list including Cerberus Capital, Goldentree Asset Management and GSO Blackstone. Scope includes deals backed by loans to both large and...



Gushing Market Sets Tone for CLO Summit

Fri, 18 May 2018
Despite some signs of trouble down the road, bullish sentiments are expected to prevail at Information Management Network’s annual collateralized loan obligation conference.The “Investors’ Conference on CLOs and Leveraged Loans,” scheduled for May 23-24 at the Sheraton New York Times Square Hotel, has a projected headcount of 1,400. While that’s up only slightly from the gathering’s 2017 tally, it includes a...



Agency-Eligible Loans Headed for MBS Pools

Fri, 18 May 2018
Several issuers of jumbo-mortgage bonds are about to start incorporating loans that meet agency standards into their securitization pools.The issuers, including EverBank, Flagstar Mortgage and J.P. Morgan, have been discussing their plans with rating-agency analysts and investors. Their motivation: to take advantage of an improving market for jumbo-mortgage deals, where funding costs have fallen roughly in line with those for agency-loan...



Leading CLO Attorney Moving to Milbank

Fri, 18 May 2018
In a move that could affect both firms’ business volumes, collateralized loan obligation attorney Sean Solis is leaving Dechert to join Milbank Tweed.As a partner reporting to Charlotte-based group head John Timperio, Solis was the highest-ranking member of Dechert’s CLO practice in New York. He leaves today and starts at Milbank on May 21, also in New York.Sources said some or all of the six associates working under Solis will...



Unease Surrounds Low-Doc Loans

Fri, 18 May 2018
Mortgage-bond professionals are expressing wariness about recent inclusions of “bank-statement” loans in securitization pools.Such accounts, offered to subprime borrowers, are so named because their approvals are based mainly on bank statements rather than tax records, pay stubs or other more-reliable forms of income documentation. While such products have existed for a while, they just now are spreading as bond collateral —...



CapOne Preps Next Loan Offering

Fri, 18 May 2018
Encouraged by strong demand for its last portfolio of reperforming home loans, Capital One is preparing to auction another pool of dented mortgages.The next offering — encompassing reperforming loans — is expected to hit the market in the next six weeks or so. Wells Fargo will manage the auction process, as it did for a $17 billion pool CapOne sold on May 7.CapOne executives were pleased with the results of that transaction, which...



Mutual Funds Drive CLO Demand

Fri, 18 May 2018
Mutual funds continue to gobble up collateralized loan obligations.The 22 most active structured-product buyers among multi-asset mutual funds tracked by Wells Fargo absorbed another $1.6 billion of CLO paper in the first quarter, bringing their holdings to $29.4 billion. That’s up from $28 billion at yearend and $26.4 billion at the end of the third quarter of 2017, according to a May 15 report from Wells analyst Gary Zhu.The outlook for...



MetLife Broadens Issuing Push

Fri, 18 May 2018
MetLife is expanding its presence as a mortgage-bond issuer.Sources said the insurer is in the early stages of an initiative in which it would offer bonds backed by performing jumbo and subprime loans, along with nonperforming accounts. The push would complement a program that saw it start issuing reperforming-mortgage securities in November.The next wave of transactions is expected to begin with a jumbo-loan deal in the second half of this year,...



Utility-Fee Proposal In Limbo

Fri, 18 May 2018
A push to issue utility-fee bonds in Missouri is likely to be delayed as state lawmakers focus on the possible impeachment of Gov. Eric Greitens.The securitization effort began with Sen. Paul Wieland’s Jan. 29 introduction of a bill that would allow power companies to use securitization proceeds to cover costs associated with the decommissioning coal-fired plants. But the Republican lawmaker’s measure now appears to be among a number...



PACE Poised to Spread to Europe

Fri, 18 May 2018
A pilot project in Spain could pave the way for securitizations of Property Assessed Clean Energy loans in Europe.Working with grant money from the European Commission, GNE Finance of Barcelona has won local approvals to lend money to homeowners and businesses for clean-energy expenditures including solar panels and more efficient heating and cooling systems — adopting the same PACE name that applies to similar programs in the U.S. The...



Gramins Seeks Reversal in Fraud Case

Fri, 18 May 2018
Attorneys for former Nomura trader Michael Gramins have submitted a motion seeking to vacate a 2017 conviction for securities fraud.The May 7 filing in U.S. District Court in Hartford cites the recent acquittal of former Cantor Fitzgerald trader David Demos on similar charges, and a U.S. Appeals Court ruling vacating the conviction of former Jefferies trader Jesse Litvak. Demos, Gramins and Litvak all were accused of over-charging clients for...



Pipeline Refilling With CLO Refis

Fri, 18 May 2018
Another rush of collateralized loan obligation refinancings is shaping up for July.The exchanges would continue a trend in which such transactions have been taking place at a rapid clip, with the heaviest volumes corresponding with payment dates shortly after the end of each calendar quarter. And as was the case when the last wave hit in April, the expectation is that the activity could temporarily put pressure on market technicals.For example,...



Leading Collateralized Loan Obligation Underwriters

Fri, 18 May 2018
The listing below shows contact information for the senior-most bankers and traders in the collateralized loan obligation market.Many of the investment banks and brokerage firms included are the same ones that have appeared atop Asset-Backed Alert’s underwriter league tables. They also include broker-dealers that don’t maintain large underwriting operations, but are active on the trading side.Heads of CLO banking oversee deal...



The Grapevine

Fri, 18 May 2018
John Lennon no longer is working as MUFG’s head of asset-backed bond trading. Lennon exited the bank’s New York office around the beginning of this month. His plans are unknown. He had joined MUFG in 2013, after stops at Credit Agricole, UBS, BNP Paribas and J.P. Morgan. David Cannon is absorbing his duties.



The Grapevine

Fri, 18 May 2018
Former Citigroup collateralized loan obligation specialist Todd Fritchman has turned up at Morgan Stanley, with a continued focus on arranging deals backed by loans to mid-size companies. Fritchman is expected to arrive in Morgan Stanley’s New York office soon, joining a team that ranks high on the list of CLO underwriters but has handled just one “middle-market” transaction so far in 2018 — a $1 billion offering from Ares...



The Grapevine

Fri, 18 May 2018
Jonathan Chin joined Guggenheim’s collateralized loan obligation underwriting team in New York last week as a director. Chin most recently held the title of chief operating officer for the CLO-issuing program at NewMark Capital, where he worked since 2013, and before that led an analytics and reporting effort at Guggenheim. He also has spent time at Hiscox USA and BNY...



The Grapevine

Fri, 18 May 2018
Sharif Mahdavian joined Kroll’s New York office in March as a senior director focused on rating mortgage-backed securities. Mahdavian had been employed since 2016 at risk-management firm ComplianceEase, and before that was at LenderLive and S&P. At Kroll, he reports to mortgage-bond head Jack Kahan.



The Grapevine

Fri, 18 May 2018
Chief executive Jerry Schiano parted ways with New Penn Financial in April. While there’s no official word on the reason for Schiano’s exit, the move came ahead of the planned midyear purchase of the mortgage lender’s parent, Shellpoint Partners, by New Residential Investment. He had launched the Plymouth Meeting, Pa., operation in 2008, after founding Wilmington Finance and spending time at ContiMortgage. He also continues to...



The Grapevine

Fri, 18 May 2018
A U.S. District Court judge in New Haven, Conn., has ordered the return of $2 million of fines that former Jefferies trader Jessie Litvak paid upon his January 2017 conviction on charges that he improperly altered mortgage-bond documents. The May 13 directive resulted from a U.S. Appeals Court decision this month that vacated that decision — a move that saw Litvak released eight months into a two-year prison sentence. The U.S. Justice...



The Grapevine

Fri, 18 May 2018
One-time Credit Agricole executive Gary Miller has signed on as a consultant to Genesis Block, a New York startup that advises clients on their blockchain-technology ventures. The assignment is separate from Miller’s role as head of a firm called Blockchain Consulting that he started in 2015, after leaving investment firm Verum Capital. Miller is best known among securitization professionals as the former head of a 24-person team at Credit...



The Grapevine

Fri, 18 May 2018
The whereabouts of former Banco Santander executive Javier Canseco have come to light. It turns out Canseco, who left his post as the bank’s head of European asset-backed bond trading in January, is taking graduate courses in analytics at a training program called Datahack in Madrid. He had been working at Santander since 2014.



Citi Execs Restless Over Leadership Changes

Fri, 11 May 2018
One of Citigroup’s top collateralized loan obligation professionals has left the bank amid a restructuring that increasingly is looking like the cause of a broader series of departures.John Clements, who had been co-heading Citi’s CLO team alongside Jim Hughes, jumped ship this week after Hughes was promoted to lead the group a layer above him. Clements’ destination: Barclays, where he will head CLO origination.Both Clements and...



OneMain Downplays ABS in Funding Shift

Fri, 11 May 2018
OneMain Financial wants to rely more on unsecured corporate debt to fund its massive portfolio of consumer loans — a shift that would reduce the amount of asset-backed securities it issues.Over the next year or two, the Evansville, Ind., lender plans to increase its issuance of high-yield corporate bonds until they meet 50% of its funding needs, up from 40% at yearend 2017. At the same time, it would curtail its securitization volume by a...



Rumor Mill Churns Amid KeyBank Departures

Fri, 11 May 2018
A continuing series of staff departures is prompting speculation about the future of KeyBank’s structured-product brokerage unit.While there’s no official word on the fate of the operation, some industry participants see the moves as a sign its days might be numbered. Others suggest the bank merely is paring down to reflect a market-wide decrease in trading activity.Either way, many of the sales and trading professionals that Key...



Forklift-Loan Program In the Works

Fri, 11 May 2018
Forklift manufacturer Hyster-Yale Group is exploring securitization as a funding source for its lending arm.Executives from the Cleveland company discussed the idea of starting an asset-backed bond program with bankers in recent weeks. They also inquired with rating-agency officials about the possibility of achieving triple-A grades for the deals.Should Hyster-Yale move forward, sources said offerings could start flowing by midyear 2019 —...



Sprint, T-Mobile Map ABS Program

Fri, 11 May 2018
Finance executives at Sprint and T-Mobile are working on plans to begin securitizing lease payments on their customers’ mobile devices, should regulators approve T-Mobile’s planned acquisition of Sprint.The two companies separately have spent several years trying to develop securitization programs to fund billions of dollars of cell-phone leases, but neither one has completed a deal. Meanwhile, Verizon has sold $7.5 billion of bonds...



Credit Suisse to Package Reperformers

Fri, 11 May 2018
Credit Suisse’s purchase of a massive portfolio of reperforming mortgages from Capital One positions the bank to conduct a large-scale series of securitizations.The bank would offer the securities under its DLJ Mortgage Capital label, drawing from a $17 billion loan portfolio it agreed to buy from CapOne on May 7. The first issues are expected to hit the market soon after the purchase closes, which is likely to happen by midyear.Whatever...



No Letup in LendingClub Supply

Fri, 11 May 2018
LendingClub is moving ahead with its latest securitization despite accusations from the Federal Trade Commission that it hid fees from borrowers.The $300 million offering is scheduled to hit the market this month with Citigroup running the books. It will be backed by prime-quality loans.While industry participants don’t expect the FTC’s allegations to derail the offering, one investor said the bonds might price at slightly higher...



CLO Newcomer Adds Key Piece

Fri, 11 May 2018
Startup investment firm Flat Rock Global is laying the groundwork for a collateralized loan obligation program.The deals would be backed by loans Flat Rock writes to mid-size businesses through Flat Rock Capital, a private fund structured as a business development company. It could take some time before an offering materializes, however.Industry participants believe the New York firm is serious about the effort. A key reason: This week, it hired...



Asset Sales Aid CLO Pools

Fri, 11 May 2018
Asset-quality indicators improved in February for collateralized loan obligations issued after the credit crisis.Among U.S. deals, median holdings of loans rated “Caa1” or lower fell 6 bp during the month to 3.74% in the U.S., according to Moody’s. In Europe, a 20 bp drop brought the figure down to 1.80%. Meanwhile, holdings of defaulted assets fell 2 bp bp in the U.S., to 0.25%, while remaining at zero in Europe. Deals in both...



Canadian MBS Deals in the Works

Fri, 11 May 2018
An increasing number of lenders are poised to securitize Canadian home loans that don’t carry government guarantees.Bank of America, First National Financial and Paradigm Mortgage have been meeting with rating agencies as part of broader efforts to develop securitization programs for such accounts. Sources said BofA is furthest along, and already has met with originators in Canada about supplying collateral loans. While the timing of an...



Auto-Loan Indicators Run Strong

Fri, 11 May 2018
Securitized pools of prime-quality auto loans performed at some of their best-ever levels during the month ended April 15.According to an index maintained by Fitch, delinquencies within those portfolios fell 8 bp during the period to 0.29% — a level last seen in May 2015, just one month after the all-time low of 0.28% was set. Losses also dropped 2 bp to an annualized 0.60%. Improvements were seen in subprime-loan pools as well, with...



DealVector Addresses Libor Issue

Fri, 11 May 2018
DealVector has added a feature to its electronic messaging service: an online forum where structured-product issuers and investors can discuss changes to Libor.Libor Hub, which went live May 8 at liborhub.com, is open to market participants who want to share ideas about replacing Libor as a key benchmark following a move by the U.K. Financial Conduct Authority last year to release banks from their obligation to report the rates, effective...



Canada Firm Hosts Marketplace Pros

Fri, 11 May 2018
Kilgour Williams Capital is conducting a marketplace-lending forum on June 13.The meeting, at the investment-banking firm’s Toronto headquarters, is aimed at promoting trades among originators and buyers of online personal loans, small-business loans and mortgages in the U.S. and Canada.Kilgour Williams currently runs Canada’s only hedge fund aimed specifically at marketplace-loan investments, KiWi Private Credit Fund. That vehicle...



The Grapevine

Fri, 11 May 2018
Carlos Garza is no longer head of collateralized loan obligation trading at Credit Suisse. Garza joined the bank in 2003 as a mortgage-bond trader. He took his most recent position in 2016 after risk-shedding measures led to a series of higher-level staff exits. His plans are unknown.



The Grapevine

Fri, 11 May 2018
Industry veteran Jerry Marriott is retiring. Since 2013, Marriott has been advising clients in the U.S. and Canada on regulatory matters via his Toronto-based Eastmount Financial. He originated and structured asset-backed securities, mortgage bonds and commercial-paper conduit deals at National Bank Financial before that, and held a number of senior positions at DBRS. He also spent time in Bank of Montreal’s structured-finance...



The Grapevine

Fri, 11 May 2018
Collateralized loan obligation sales specialist Darryl Smith has joined the New York office of broker-dealer R.W. Baird & Co. Smith most recently started and led the CLO unit at ED&F Man, which like his new employer competes directly with larger banks in the sector. He had arrived there in 2014, after stops at RBS, Bear Stearns, Citigroup and Chemical Bank. At Baird, he works under former Credit Suisse trader David...



The Grapevine

Fri, 11 May 2018
SMBC Nikko has hired an executive director to help head a push into collateralized loan obligation underwriting. Daniel Strong joined the bank’s New York office in April from Capital One’s financial-institutions group, where he worked since 2016. Strong also has helped oversee CLO structuring at Natixis, and spent time at S&P.



The Grapevine

Fri, 11 May 2018
Partner Lewis Cohen left the securitization unit at Hogan Lovells on April 29 to start his own law firm. Cohen’s practice would focus on blockchain technology, including its use in capital-markets applications. He had joined Hogan Lovells in 2014, following a long stretch at Clifford Chance and a stop at Simpson Thacher. He serves as co-chairman of the Structured Finance Industry Group’s blockchain-technology task...



The Grapevine

Fri, 11 May 2018
Risk-management head Shahzad Kazi no longer is working at Solar Mosaic. His next move couldn’t be learned. Kazi had arrived at the Oakland, Calif., lender in 2016 from Sindus Group. Mosaic, which writes loans on residential solar-power equipment and other energy-saving upgrades, has completed two securitizations totaling $681.8 million since launching a bond-issuing program in...



The Grapevine

Fri, 11 May 2018
Trader Andrew Dobbin started this week in the New York office of broker-dealer R.W. Pressprich & Co. His coverage areas include performing asset-backed securities and high-yield corporate bonds, along with distressed debt. Dobbin most recently worked at Cowen & Co. since 2014, and before that was at Swedbank, Rodman & Renshaw, Quadrex Securities, Wolfe & Hurst, Prudential and J.B. Hanauer &...



The Grapevine

Fri, 11 May 2018
Morningstar added an analyst to its New York office on May 7. As an assistant vice president, Bryan Li rates new deals and performs surveillance on existing ones under asset-backed bond chief Rohit Bharill. Li had been employed at Moody’s since 2013. Before that, he was at Credit Suisse.



The Grapevine

Fri, 11 May 2018
Michael Dean resurfaced in April at OceanFirst Bank, with the task of starting a group that would invest on behalf of the Red Bank, N.J., institution’s retail-banking clients. Dean most recently headed issuer relations for Kroll’s asset-backed bond rating group from May 2017 until this January. Before that, he co-headed asset-backed bond ratings at...



The Grapevine

Fri, 11 May 2018
Kroll is putting the finishing touches on credit-quality standards it will use in grading collateralized loan obligations — a new area for the agency. The New York company plans to release its CLO-rating criteria on May 16. While Kroll has rated a few commercial real estate CLOs, the agency hasn’t before graded securitizations of leveraged loans. Moody’s is the most active rating agency in the CLO market, followed by Fitch and...



Navient Lays Groundwork for Mortgage Push

Fri, 04 May 2018
Navient is considering the launch of a mortgage-lending arm that it would fund in part through securitization.The lending side of the effort would tie in with plans to expand a student-loan origination business Navient inherited with its November purchase of Earnest. Eventually, the Wilmington, Del., company hopes to transform the operation into a broad source of consumer financing, including home loans offered under its own brand.Early...



Personnel Shuffle Points to CLO Shakeup

Fri, 04 May 2018
A recent series of personnel shifts could disrupt the balance of power among banks that underwrite collateralized loan obligations backed by the debts of mid-size businesses.Managing director Michael Hopson and lieutenant Lorraine Medvecky resigned from Natixis a few weeks ago to join Barclays, where they will start in a few months. And director Todd Fritchman left Citigroup, destination unknown.Hopson and Fritchman, along with Wells Fargo...



Group Proposes Twist on Stranded Costs

Fri, 04 May 2018
A California trade group is suggesting that two energy companies in the state team up to float a massive securitization.The California Community Choice Association’s plan calls for Pacific Gas and Electric of San Francisco and Southern California Edison of Rosemead to carry out a joint offering of some $2.5 billion by yearend. It proposed the idea to the California Public Utilities Commission on April 3, with the pitch that it could reduce...



Big Buyers Return to Jumbo Market

Fri, 04 May 2018
Institutional investors are taking a fresh look at jumbo-mortgage products.In the past few months, a number of insurers and large asset managers that had largely avoided the market since the credit crisis have begun buying newly issued bonds and, in some cases, portfolios of whole loans. Sources said the list includes AIG, MetLife and Pacific Mutual.“A year ago, you were lucky to have maybe up to a dozen investors in a jumbo deal,”...



Starr Steps Down From Solar Lender

Fri, 04 May 2018
With employer Spruce Finance struggling to stay afloat, longtime securitization specialist Beth Starr has left the company.As Spruce’s head of capital markets, Starr was the primary employee responsible for securitizations and sales of its receivables — mainly loans that funded purchases of solar panels and other energy-efficiency products. But the San Francisco company has been telling partners in recent weeks that it was ending its...



Court Actions Buoy Ex-Nomura Traders

Fri, 04 May 2018
Attorneys representing former Nomura mortgage-bond traders Michael Gramins and Ross Shapiro will press to have the charges dismissed following favorable outcomes for two other accused traders.On May 3, a U.S. District Court jury in Hartford, Conn., found former Cantor Fitzgerald trader David Demos not guilty on five counts of securities fraud. The same day, U.S. Court of Appeals tossed out the conviction of former Jefferies trader Jesse Litvak,...



Hunt Swings Back at Jennings

Fri, 04 May 2018
Disputing a wrongful-termination lawsuit from former president William Jennings, Hunt Cos. claims it was justified in firing him.Hunt presented its arguments in an April 27 follow-up to a motion to dismiss the case, telling the U.S. District Court in New York that Jennings’ Feb. 1 removal followed an “escalating period of insubordination and brinksmanship.” Without providing specific details, the firm wrote that Jennings was...



Partners Group Readies US CLO

Fri, 04 May 2018
Partners Group is moving ahead with plans to issue collateralized loan obligations in the U.S.The firm is expected to come to market in the coming weeks with its first such deal, a $400 million offering dubbed Pikes Peak 1. Credit Suisse will run the books.From there, Partners would float two or three CLOs per year.The Zug, Switzerland, firm signaled its intention to enter the U.S. market with its February hiring of New York-based portfolio...



MBS Runoff Saps Insurers' Holdings

Fri, 04 May 2018
Life insurers’ holdings of non-agency mortgage bonds continue to run off faster than the companies can replace them.The world’s 28 largest insurers saw their portfolios of non-agency mortgage securities shrink by a combined $8 billion in 2017, to $60 billion, according to an April 11 report from Wells Fargo. That compares to a $3 billion decline in 2016 — with an even larger drop projected for this year.“I wouldn’t...



Candlewood Partners Divide Up Firm

Fri, 04 May 2018
Candlewood Investment is splitting in two.The debt-fund manager, formed via the 2010 spinoff of a Credit Suisse hedge fund unit, has broken off its structured-product and asset-finance investment team as Medalist Partners. Candlewood, meanwhile, continues to manage two distressed-debt funds.Former Candlewood partners Brian Herr and Greg Richter have moved to Medalist, with Herr in the role of chief investment officer and Richter serving as chief...



Tech Firm Gains Traction

Fri, 04 May 2018
A startup that matches investors with a mix of loan originators is signing up clients at a rapid clip.Finitive has been adding one new subscriber a day for its technology since April 10, when it said it already had lined up $1.3 billion of sales involving personal loans, renewable-energy receivables and commercial mortgages.Most of the incoming users are loan buyers with more than $1 billion of assets each, with one weighing in at more than $100...



The Grapevine

Fri, 04 May 2018
Ken Kroszner has left Bayview Asset Management, where he established a collateralized loan obligation investment program, to pursue a similar mandate at Wellfleet Credit. Kroszner had joined Bayview in 2014 from RBS. He starts at Wellfleet next week. The Greenwich, Conn., unit of Littlejohn & Co. also is an issuer of CLOs, having completed six such deals totaling $2.5 billion since it was set up in 2015 by Scott McKay and Dennis...



The Grapevine

Fri, 04 May 2018
Longtime securitization specialist Peter Ostrem has resigned from PayPal to join the capital-markets unit at BlueVine, a Redwood City, Calif., firm that offers invoice factoring and credit lines to small businesses. As head of personal-loan operations at PayPal, Ostrem was rumored to be working on a securitization program. He had joined the company via its 2017 takeover of Swift Capital, where he started in 2015. Ostrem is best known in...



The Grapevine

Fri, 04 May 2018
Citigroup hired mortgage-bond trader Robert Sheridan in April, installing him as a director in its New York office. Sheridan had been working at Mizuho since June 2017, and before that was at BNP Paribas, Deutsche Bank and General Electric.



The Grapevine

Fri, 04 May 2018
Vice president Erica Dorfman has left the capital-markets arm of Social Finance, where her work encompassed tasks related to the San Francisco company’s securitizations of student loans, personal loans and mortgages. Word on the street is that she is headed to credit-card lender Tally. Dorfman joined SoFi in 2016, and before that was at BDT Capital and J.P....



The Grapevine

Fri, 04 May 2018
Education lender CommonBond has an opening for a director in its capital-markets unit in New York. The recruit would develop cashflow models and structures for the company’s securitizations, and would seek investors. He or she would report to capital-markets head Samuel Luk. Commonbond is focusing on candidates with at least seven years of experience. The company so far has completed six securitizations totaling $1.1 billion. Candidates can...



The Grapevine

Fri, 04 May 2018
Tesla is seeking an attorney to work on its auto-lease securitization program. The recruit would fill the role of senior counsel in the company’s Fremont, Calif., office. Tesla is focusing on candidates with 8-10 years of experience. The company completed its debut auto-lease securitization in February, placing $546.1 million of bonds with Citigroup and Deutsche Bank running the books. It also has securitized receivables tied to its...



The Grapevine

Fri, 04 May 2018
Credit Agricole has added an associate to its asset-backed securities underwriting team in New York. Nick English arrived in the bank’s New York office about a week ago from EverBank, where he helped finance lenders in the aircraft, rail and shipping industries since 2015. Separately, Credit Agricole continues to hunt for an asset-backed bond syndicate chief. That job has been available since David Stern jumped to TD Bank in...



The Grapevine

Fri, 04 May 2018
Dechert is seeking a few associates for its Chicago office. The recruits would support partner Matthew Hays, who arrived this week from Kirkland & Ellis. Hays, who was employed at Kirkland since 2007, has been active in deals backed by marketplace-originated personal loans and a mix of auto-related receivables. His addition at Dechert comes come as part of a push by the firm to expand its securitization presence — where it mainly has worked...



Yield Impasse Freezes Credit-Card Supply

Fri, 27 Apr 2018
The flow of new credit-card bonds has suddenly evaporated.While supply in the asset class had been running behind year-ago levels throughout early 2018, the shortfall became even more pronounced this month as issuers exited the market altogether. Indeed, no credit-card securitizations have priced in the U.S. since TD Bank sold $600 million of bonds on March 28 with Citigroup, J.P. Morgan and affiliate TD Securities running the books.At 15 deals...



Morningstar's Petro Quits, Weighs Options

Fri, 27 Apr 2018
After getting passed up for a promotion to president, Joe Petro is leaving his post as chief operating officer of Morningstar’s credit-rating division.Petro resigned on April 20, with his departure effective May 16. Sources said he will take some time off before deciding on his next move.As Morningstar Credit Ratings’ number-two executive, Petro was considered the leading candidate to replace president Vickie Tillman when she retired on Dec....



Cantor to Install CLO-Underwriting Team

Fri, 27 Apr 2018
Cantor Fitzgerald is positioning itself as an underwriter of collateralized loan obligations.The broker-dealer has been seeking a banker to lead the effort, but has yet to zero in on a candidate.The recruit’s efforts would complement those of a longstanding CLO-trading business led by Ervin Pilku in New York. The push also would dovetail with a broader expansion that Cantor has been pursuing in the structured-product industry under the...



Echelon Offering New Loan Fund

Fri, 27 Apr 2018
Echelon Asset Management, an investor in personal loans originated by online lenders, has a new fund in the works.The Oakland, Calif., firm aims to raise $500 million of equity for the vehicle, which would use securitization to fund additional investments down the road. There’s no word yet on the timing of the launch.The plan comes amid signals that Echelon may liquidate one or more of its existing funds in the wake of weak returns and...



Funds Pursue Less-Liquid Strategies

Fri, 27 Apr 2018
Hedge funds that trade asset-backed securities, mortgage bonds and collateralized loan obligations increasingly are supplementing their strategies with investments in whole loans.Candlewood Investment, which earned hefty profits trading distressed structured products in the years immediately following the credit crisis, is assembling a vehicle that would originate loans to small and mid-size business. The offering would extend a lending program...



Railcar-Lease Deals Ready to Roll

Fri, 27 Apr 2018
Investors can expect to see an increasing supply of railcar-lease securities.Sources said several first-time issuers have deals in the works that likely will hit the market in the second half. The offerings would breathe new life into an asset class that typically produces only a couple of securitizations annually.The outlook is driven by expectations that the volume of railcar leases will increase by 7% over the next three years. Already, banks...



Libor Gap Pinches CLO Equity

Fri, 27 Apr 2018
An interest-rate mismatch is cutting into arbitrage profits for collateralized loan obligations.At issue is a long-developing trend in which the deals’ underlying borrowers increasingly have refinanced their debts with loans pegged to one-month Libor, instead of the usual three-month Libor. Issuers, meanwhile, have continued to pay interest to bondholders based on the three-month benchmark.Initially, the divergence didn’t present any...



Goldman Returns to MBS Sector

Fri, 27 Apr 2018
Goldman Sachs is back in the business of underwriting private-label mortgage bonds.The bank, which sharply curtailed its activities in the sector in late 2007, is eyeing a mix of offerings — including those backed by mainstream jumbo loans and accounts that don’t meet the Consumer Financial Protection Bureau’s “qualified mortgage” guidelines. Risk-transfer deals from Fannie Mae and Freddie Mac are on the menu as...



Trups-CDO Case Rattles Investors

Fri, 27 Apr 2018
Investors in collateralized debt obligations backed by trust-preferred securities are keeping a close eye on a dispute over deals issued by First Tennessee Bank.In late March, trustee BNY Mellon advised noteholders that it was withholding $20 million of proceeds from a recent collateral auction involving a 2004 transaction: Preferred Term Securities 14. BNY was acting on a request from Keefe, Bruyette & Woods, which was among the original dealers...



Jumbo Reverse Mortgages Catch On

Fri, 27 Apr 2018
With lenders writing more jumbo reverse mortgages, interest in securitizing the credits is increasing.At issue is a new set of policies that HUD implemented on Oct. 2 for reverse mortgages insured by the FHA, including a revised interest-rate structure and increased upfront guarantee fees for some accounts. As those changes cut into lenders’ agency origination volume, those shops have sought to replace the lost business by offering more...



More Losses for Card Portfolios

Fri, 27 Apr 2018
Performance indicators continued to weaken among securitized pools of U.S. credit-card accounts during the first quarter.Charge-offs in bankcard portfolios rose to an average of 3.1% over the period from 2.8% in the fourth quarter, according to an index maintained by Fitch. That continued a trend in which the figure has been climbing from historic lows that prevailed from 2014 to 2016 — a pattern the agency sees as likely to continue, while...



Ratings Aid SG Deal's Distribution

Fri, 27 Apr 2018
Shelter Growth Capital’s latest mortgage securitization demonstrates the extent to which ratings can aid in the distribution of such offerings.The $129.5 million transaction, backed by loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards, priced on April 17 with Credit Suisse running the books. It includes a 2.1-year class of bonds with triple-A grades from S&P and Morningstar that went at...



The Grapevine

Fri, 27 Apr 2018
Florian Bita is no longer head of collateralized loan obligation trading at RBC. Bita had been employed in RBC’s New York office since 2013 and assumed his most recent position in 2016, taking over for the departing Allen Fu. Bita also has worked at Cantor Fitzgerald, UBS, Deutsche Bank, Goldman Sachs and Citigroup. Thomas Hasse is taking over his...



The Grapevine

Fri, 27 Apr 2018
Former Saba Capital portfolio manager James Wang has signed on as head of quantitative research at Stream Asset Management, a structured-product investor in Red Bank, N.J. Wang worked at Saba from 2009 to 2016, with a focus on collateralized loan obligation investments. He earlier spent time at Deutsche Bank and Zais Group. Stream, which employs several other Saba alumni, invests in commercial mortgage securities. It also plans to move into...



The Grapevine

Fri, 27 Apr 2018
Salesman Brian Vanselow joined Mesirow Financial’s Chicago office on April 23, about a month after he was caught in a round of layoffs at Mizuho. Vanselow had been employed there since 2014, and before that spent time at CRT Capital, Sandler O’Neill, Guggenheim and Bear Stearns.



The Grapevine

Fri, 27 Apr 2018
Mortgage-bond salesman Conor Taniguchi has left Bank of America to work at Cantor Fitzgerald in Los Angeles. Taniguchi held the title of managing director at BofA, which he joined in 2009 from Goldman Sachs. His addition at Cantor continues a large-scale staffing buildup that began with the September recruitment of a team of traders from Credit Suisse (see article on Page...



The Grapevine

Fri, 27 Apr 2018
AXA Investment has brought in a senior portfolio manager to assist in a buildup of its collateralized loan obligation-issuing business. Matt Leventhal arrived in the operation’s Greenwich, Conn., office this week from River Birch Capital, where he invested in distressed and high-yield debt in Europe since 2016. Leventhal also has worked at Barclays, RBS and LaSalle Bank. At AXA, he reports to leveraged-loan and private-debt investment head...



The Grapevine

Fri, 27 Apr 2018
Associate Bharat Ganju is leaving Goldman Sachs’ trading desk in New York to join a team at TPG Capital that invests in collateralized loan obligations. Ganju signed on with Goldman in 2015, straight out of college. The TPG group is led by former J.P. Morgan executive Kristen Erickson under the umbrella of the $20 billion TPG Sixth Street Partners.



The Grapevine

Fri, 27 Apr 2018
Bond-structuring specialist Adarsh Dhand has joined U.S. Bank’s Charlotte office as part of a push by the bank to establish an asset-backed securities underwriting business. Dhand most recently worked at Bank of America, where he started in 2014. He also has logged time at RoundPoint Financial and Hudson Pacific Capital. U.S. Bank is aiming to start underwriting deals in the next year or...



The Grapevine

Fri, 27 Apr 2018
Director Jay Banerjee has left American Express, where his duties included helping to structure the company’s credit-card securities and handling investor-relations functions. His destination: The treasury unit at New York alternative-energy TerraForm Power, which hasn’t previously issued asset-backed bonds. Banerjee joined AmEx in 2004 after stops at Hyundai and...



The Grapevine

Fri, 27 Apr 2018
Morningstar has added two analysts to its rating team. Kailash Ahirrao arrived in the agency’s Mumbai office on April 16, working under asset-backed bond head Rohit Bharill. Ahirrao previously covered structured products as a senior analyst at research-and-analytics firm Axience, where he worked since 2008. Also on board is Jeremy Kugelman, who arrived in New York in March as part of a mortgage-bond rating team led by Kevin Dwyer. Kugelman...



Shifting Demand Draws Out Junior Offerings

Fri, 20 Apr 2018
Auto lenders and equipment-finance companies increasingly are adding subordinate classes to their asset-backed bond deals.The moves reflect heavy investor demand for lower-rated paper, with subprime auto lenders American Credit Acceptance, Foursight Capital, United Auto Credit and Westlake Services already having tacked more tranches to the bottoms of their offerings. Among their prime-quality counterparts, Honda and Hyundai are talking to...



IMN Rallies Early Support for ABS East

Fri, 20 Apr 2018
Attendance figures and sponsorships for Information Management Network’s annual “ABS East” conference are building amid efforts by the Structured Finance Industry Group to organize its own main-event gathering a week later.IMN has released a list of almost 900 individuals that have signed up for its summit, which takes place Sept. 23-25 at the Fontainebleau hotel in Miami Beach. It also has nailed down sponsorships from BNY...



Cantor Recruit Experiences Change of Heart

Fri, 20 Apr 2018
Cantor Fitzgerald has lured two more structured-finance executives away from Credit Suisse — only to see at least one of them change his mind.Peter Sack, a managing director in charge of Credit Suisse’s mortgage-finance team in New York, left the bank on March 27 after receiving an offer from Cantor. But he was back on Credit Suisse’s payroll on April 2.A source close to Sack said his reversal stemmed from a feeling that his...



ABS Issue Would Rely on Blockchain

Fri, 20 Apr 2018
A blockchain-technology company pioneering the use of “smart contracts” for securitization purposes expects to complete a debut transaction in the second half.Symbiont, among a growing number of firms operating blockchain networks, has lined up an undisclosed underwriter for the Rule-144A deal, which will be backed by auto or equipment leases. Using smart contracts similar to those employed by some cryptocurrencies, Symbiont would...



Cash Available for Non-QM Brokers

Fri, 20 Apr 2018
Several private equity firms are interested in backing wholesale mortgage brokers, with an eye toward positioning those operations to deal in accounts that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards.Sources said the field of potential investors includes Bain Capital, Warburg Pincus and a number of smaller shops. Their efforts remain in the exploratory phase, with a current emphasis...



Compliance Tool Pitched for Autos

Fri, 20 Apr 2018
A startup software company is offering a compliance tool to issuers of subprime auto-loan securities.LexAlign began meeting with potential customers in recent weeks. Its pitch: Bond issuers should commission its online program for distribution to the dealers that originate their accounts — and sometimes are responsible for breaches of federal or state consumer-protection rules.The Austin operation also is offering the cloud-based tool to...



Stage Set for Auto-Loan Program

Fri, 20 Apr 2018
Subprime auto lender Arivo Acceptance is on pace to float its debut asset-backed bond offering during the third quarter.Arivo so far has accumulated about half of the receivables for the transaction, which is expected to total about $100 million. It hasn’t yet selected an underwriter, nor has it decided whether to offer the bonds privately or under Rule 144A.Arivo was founded in 2016 by Robert Avery, formerly of Prestige Financial. The...



Huge Mortgage Pool Up for Grabs

Fri, 20 Apr 2018
Capital One is shopping a massive portfolio of reperforming home loans.The mortgages, with a total principal balance of $18 billion, are being auctioned in several blocks, with an April 27 deadline for final bids. Wells Fargo is handling the offering.The pool is heavy on pre-credit-crisis loans CapOne picked up via its 2011 purchase of ING Direct. “This has got to be the biggest whole-loan sale I’ve seen,” one source said....



Demos Turned Down Plea Agreement

Fri, 20 Apr 2018
Former mortgage-bond trader David Demos rejected a plea deal before being charged with criminal securities fraud.Demos, whose trial begins April 23 in U.S. District Court in Hartford, was offered a chance to plead guilty to reduced charges during interviews with federal investigators in early 2016, according to an April 14 motion by prosecutors seeking to introduce his statements at trial. In December 2016, the U.S. Justice Department charged...



Demand On the Rise in Europe

Fri, 20 Apr 2018
Banks and insurers in Europe are showing a stronger appetite for structured-product investments.Demand from those institutions has been building since the beginning of this year, partially reversing a trend in which they had pulled back from the market in 2016 in response to the European Union’s Solvency 2 rules and the Bank for International Settlements’ Basel 3 accord.Recently, some insurers apparently have adjusted internal...



The Grapevine

Fri, 20 Apr 2018
Eliot Rubenzahl has left his post as a managing director in charge of securitized-product sales and trading at Citigroup. There’s no word on Rubenzahl’s plans. He had been a member of Citi’s New York office since 1999, following a stint as a mortgage-bond researcher at the former Scudder, Stevens & Clark. Separately, Citi is seeking a vice president-level professional with 6-10 years of experience who could help lead...



The Grapevine

Fri, 20 Apr 2018
Securitization head Katya Baron parted ways with Solar Mosaic last week. Baron, a managing director, had joined the Oakland solar-panel loan originator in 2016 from investment firm Aequitas Capital. She also has worked at Sterne Agee, Gleacher & Co., Barclays, FGIC and J.P. Morgan. Mosaic has completed three securitizations totaling $681.7 million since entering the market in...



The Grapevine

Fri, 20 Apr 2018
Strategist Rick Stanley is retiring from BNY Mellon’s trustee business, effective April 30. The group’s leadership team will assume his responsibilities until a replacement is named. Stanley served in a number of capacities since joining BNY via its 1988 purchase of Irving Trust, including a year-long assignment as head of the bank’s structured-finance...



The Grapevine

Fri, 20 Apr 2018
Portfolio manager Avi Korn has left BlueMountain Capital to join KKR, where he signed on this week as part of a structured-product investment unit led by one-time Deutsche Bank executive Dan Pietrzak. The New York-based Korn started at BlueMountain in 2008. Before that, he was at J.P. Morgan.



The Grapevine

Fri, 20 Apr 2018
Longtime mortgage-industry professional Bruce Hurwitz died suddenly on April 12. Hurwitz had been working in a compliance role as a director at Freddie Mac, where he started in 2017. His earlier employers included Shellpoint Mortgage, RoundPoint Mortgage, Digital Risk, Securitized Asset Surveillance & Analysis, Fremont Mortgage, McDonough Holland and The Money...



The Grapevine

Fri, 20 Apr 2018
Emile Ernandez has signed on with hedge fund operator Kawa Capital, with a focus on investing in privately placed securitizations. The assignment follows a brief stint as a consultant at risk-retention financing shop Nearwater Capital, and longer stops on the securitization-banking teams at Barclays and Deutsche Bank. Kawa is led by Daniel Ades and Alex Saverin. It has $1 billion under...



The Grapevine

Fri, 20 Apr 2018
Paul Fielding has signed on as a partner at Social Capital, a Palo Alto, Calif., venture capital firm whose portfolio companies include education lender CommonBond. Fielding had been employed at Social Finance since 2013, holding a variety of roles including head of capital markets and manager of a fund that buys subordinate pieces of the company’s bond offerings. He also has spent time at Cignifi, MeasureOne, CoreLogic predecessor...



The Grapevine

Fri, 20 Apr 2018
Chief investment officer Sid Jajodia is leaving Lending Club to work for an unnamed online lender in Amsterdam. At Lending Club, Jajodia managed a series of funds that invest in the company’s personal loans. He also helped pitch some of its early securitizations. He arrived in 2013 from Capital One, where he led small-business lending.



The Grapevine

Fri, 20 Apr 2018
Oliver Dunsche has left HSBC’s New York office, where he had been working since 2014 as part of a team that sets up asset-financing facilities for issuers of bonds backed by leveraged loans and unusual cashflows. Dunsche’s plans couldn’t be learned. He previously worked at Barclays, Deutsche Bank, Morgan Stanley and Oliver Wyman.



The Grapevine

Fri, 20 Apr 2018
Goldman Sachs has added a junior collateralized loan obligation-structuring specialist to its London office. The recruit, Lorenzo Silvestri, will start in the coming weeks. He had been employed at Natixis since 2015, and before that was at Santander.



Repo Costs Spawn REIT Issuance Programs

Fri, 13 Apr 2018
Responding to a rapid rise in repurchase-facility costs, REITs increasingly are positioning themselves as mortgage-bond issuers.The trend began taking shape with a $279 million securitization that Annaly Capital completed on March 26 — its first ever. Expectations are that the New York operation will return with an offering of similar size in the coming months, with AGNC Investment, Invesco Mortgage Capital and MFA Financial possibly...



Diebold to Dispense ATM-Lease Securities

Fri, 13 Apr 2018
Diebold Nixdorf wants to write more leases on the ATMs it manufactures, with securitization as a potential funding source.The bond-issuing side of the effort still is in the exploratory phase, with treasury executives from the North Canton, Ohio, company having spoken informally to potential underwriters. Expectations are that an initial offering of perhaps $300 million might hit the market in late 2019.Diebold has long offered financing to...



Louisiana Poised to Securitize BP Settlement

Fri, 13 Apr 2018
Louisiana plans to securitize a portion of the proceeds from a settlement with BP over the Deepwater Horizon oil spill.Under a bill the state Senate is set to pass in the coming days, a newly created agency called Louisiana Economic Financing Corp. would issue $852 million of bonds backed by cashflows from the $6.8 billion settlement. The transaction is expected to hit the market late this year or early next year.Among the first orders of...



Gallatin Jettisons Retained Paper

Fri, 13 Apr 2018
No longer bound by the Dodd-Frank Act’s skin-in-the-game rule, Gallatin Loan Management acted quickly to sell the retained portion of its debut collateralized loan obligation.Other CLO issuers, however, are taking more time.CLOs officially became exempt from the Dodd-Frank regulation with the April 5 release of an order from the U.S. Court of Appeals for the District of Columbia Circuit, a move based on an earlier decision in favor of a...



Big Setback for China Merchants

Fri, 13 Apr 2018
China Merchants Bank has lost the head of its U.S. warehouse-lending unit, dealing a serious blow to the operation’s development.Mark Hemmann left the bank’s New York office in recent weeks. Sources suggest his exit was linked to a leadership shuffle that also saw the March exit of his supervisor, former WestLB colleague Xin Wang.Hemmann’s division had just formed in early 2017, with an eye toward offering financing to...



Witness List Confounds MBS Traders

Fri, 13 Apr 2018
Two mortgage-bond traders were surprised to learn they could be called as witnesses in the upcoming securities-fraud trial of David Demos.Scott Burg, chief investment officer at Deer Park Road Management, and Leland Abrams, formerly of Candlewood Investment, are among the industry professionals who appear on the U.S. Justice Department’s official witness list for Demos, who goes on trial April 23 in U.S. District Court in Hartford.But the...



Loan-Data Shop Negotiating Sale

Fri, 13 Apr 2018
After struggling to launch a brokerage operation, loan-data supplier Orchard Platform appears to have lined up a buyer for what remains of its business.The New York company, whose main product is technology that tracks the performance of online-originated loans, appears to be close to finalizing a deal under which it would sell that operation to a marketplace lender. One source pointed to small-business lender Kabbage as a possible buyer.Orchard,...



Upgrade Updates Funding Strategy

Fri, 13 Apr 2018
Upgrade’s securitization plans are coming into focus.The San Francisco firm, which originates personal loans online, is eyeing the third quarter for what would be its first asset-backed bond offering. After that, it would securitize its loans at a rate of roughly one deal per quarter.“They’ve been very clear that securitization will play a big role in growing their business,” a source said.In addition to personal loans,...



New Residential Adds Reperformers

Fri, 13 Apr 2018
New Residential Investment is planning a second offering of bonds backed by reperforming mortgages.Sources said the issue would be backed by a pool of 3,000 loans with an unpaid principal balance of $686 million that the New York REIT bought on April 11. The accounts have an average loan-to-value ratio of 65%.New Residential’s only previous securitization of reperforming mortgages was a $228.5 million unrated deal that priced in May 2017....



Deal Agent Cracks Mortgage Market

Fri, 13 Apr 2018
DV01 has picked up its first assignment as a loan-data agent for a mortgage securitization.The New York firm this week began distributing information to investors in a $275 million bond offering that Credit Suisse priced on March 28. The unrated transaction, CSMC 2018-RPL2, is backed by a pool of reperforming home loans.In its role as deal-data agent, DV01 supplements the efforts of issuers and trustees in supplying investors in...



CLOs Post Uneven Indicators

Fri, 13 Apr 2018
Asset-quality indicators were mixed in January for collateralized loan obligations issued in the U.S. after the credit crisis.The deals’ median holdings of defaulted loans rose 16 bp to 0.28%, according to Moody’s. That increase mainly reflected defaults by Philadelphia Energy and a U.K. affiliate of Expro Group, whose loans are held in 62 pools, analyst Haoning Ding said. At the same time, the transactions’ weighted averaged...



The Grapevine

Fri, 13 Apr 2018
Dave Bell left his job as Morgan Stanley’s head asset-backed bond trader this week to become a managing director at New York broker-dealer R.W. Baird & Co. In his new post, Bell focuses on trading bonds backed by unusual assets, including Property Assessed Clean Energy loans and marketplace-originated personal loans. Bell served two stints at Morgan Stanley, most recently starting in 2016. In between, he worked at Deutsche Bank and Third...



The Grapevine

Fri, 13 Apr 2018
Wells Fargo has appointed managing directors Michael Llodra and Ari Kavour to head its mortgage-finance division, which handles warehouse-lending and securitization functions for home loans. Wells had been seeking to fill the positions since August, when Dashiell Robinson moved to Redwood Trust. Llodra, who is in New York, joined Wells in 2011. He earlier worked for Harvard Management. The Charlotte-based Kavour arrived in 2012 from Morgan...



The Grapevine

Fri, 13 Apr 2018
(SEE CORRECTION BELOW) Word has it that former Citigroup asset-backed bond banker Ari Rosenberg is headed to KKR. Rosenberg’s new job apparently will have him working alongside Dan Pietrzak, a one-time Deutsche Bank executive who has been overseeing a portfolio of structured-product investments since arriving in KKR’s New York office in 2016. Rosenberg had been at Citi since 2004, most recently as head of a group catering to online lenders....



The Grapevine

Fri, 13 Apr 2018
Small-business lender Strategic Funding has a new chief financial officer. Anthony Rose assumed the post last week, with predecessor Steve Lerch leaving for undisclosed reasons. Rose had been working at Dime Community Bank since 2016, following stops at Marakon, Evercore Partners, Credit Suisse and J.P. Morgan. Lerch arrived in 2015. His resume includes stops at ZeOmega, MedeAnalytics, Inuvo, Workstream and PricewaterhouseCoopers. The switch...



The Grapevine

Fri, 13 Apr 2018
Longtime investor David Ells joined Ares Management’s New York office last week as a managing director. Ells most recently held the same title at Northwestern Mutual, where he ran portfolios of asset- and mortgage-backed securities since 2004. His resume also includes stops at Deerfield Capital and Liberty Hampshire.



The Grapevine

Fri, 13 Apr 2018
Capital One has added a director to a unit that helps fund companies that offer warehouse lines to other lenders, including those that issue asset-backed bonds. Alexander Dennis joined the bank last week from S&P, where he worked since 2007 — first with a focus on collateralized loan obligations and, more recently, asset-backed bonds. His new team is led by Dave...



The Grapevine

Fri, 13 Apr 2018
Just weeks after arriving at Hunt Financial Securities as a managing director, Steve Fulton left the brokerage firm’s Los Angeles office on March 29. There’s no word on the reason for his abrupt exit. Fulton most recently ran a martial-arts training business, and before that headed portfolio management for securitized products at Western Asset Management. Separately, salesman Hugh Wallace left Hunt’s Rye Brook, N.Y.,...



The Grapevine

Fri, 13 Apr 2018
Richard Mertl has signed on as counsel in the New York office of King & Wood, with the task of advising China-based institutions on U.S. securities law. Mertl had been employed at Dechert since March 2017, and before that was at Schulte Roth and Freshfields. He remains a member of the Structured Finance Industry Group’s Chinese Market Committee and a liaison to the China Securitization...



The Grapevine

Fri, 13 Apr 2018
Morningstar is seeking three analysts to cover asset-backed securities and collateralized loan obligations in its New York office. The recruits would hold the titles of associate, assistant vice president or vice president. Candidates can email resumes to manager Rohit Bharill at rohit.bharill@morningstar.com.



First-Quarter Issuance Hits Post-Crisis High

Fri, 06 Apr 2018
Despite a dip in issuance late last month, the volume of structured products sold in the January-March period amounted to the highest first-quarter total since before the 2008 market crash.An eye-popping $211.4 billion of fresh asset-backed securities, collateralized loan obligations and residential and commercial mortgage bonds priced worldwide during the first three months of the year — a 35% increase from the first quarter of 2017,...



SFIG Looks Askance at Evasion of Risk Rule

Fri, 06 Apr 2018
The Structured Finance Industry Group is questioning efforts by securitization lawyers to craft new deal structures that would allow mortgage- and asset-backed bond issuers to avoid the Dodd-Frank Act’s risk-retention rule.After a U.S. appeals court ruled that collateralized loan obligation managers are exempt from the retention requirement, industry lawyers began researching ways to structure other types of securitizations in a way that...



CLO Pipeline Shrinks Amid Gusher of Refis

Fri, 06 Apr 2018
Widening spreads on collateralized loan obligations appear to be deterring issuance at the start of what was expected to be a record month for deal flow.Only a week or so ago, U.S. issuers had a total of 35 new deals in the pipeline for April. But only a handful of offerings were in the market this week, and the few completed deals priced wider than expected. Dealers and managers focused instead on a packed calendar of CLO refinancings that must...



Tesla's Woes Worry ABS Investors

Fri, 06 Apr 2018
Spooked by Tesla’s production issues and stock-price volatility, investors suddenly are dumping bonds backed by leases on the company’s all-electric vehicles.On April 4, for example, a total of $13.2 million of notes from a securitization Tesla priced on Feb. 1 changed hands on the secondary market at below par, according to Finra’s Trade Execution and Compliance Engine. The fact that investors sought to sell Tesla paper just...



Blockchain Firm Extending Reach

Fri, 06 Apr 2018
A blockchain-technology company in Sydney is extending its reach to the U.S. and Europe.Othera already claims to have developed a fully functional system through which loans can be originated and securitized, with capabilities for rating-agency reviews and continued handling of payment streams by trustees. Its targeted clients in the U.S. include online personal-loan originators.In the next month or two, Othera also expects to sign deals with a...



HUD Readies Big Loan Offering

Fri, 06 Apr 2018
More details are emerging about a plan by HUD to revive a program through which it sells nonperforming home loans to investors.Sources said the federal housing agency is aiming for June to resume sales of defaulted mortgages via its Distressed Asset Stabilization Program, which has been largely dormant since 2016. The initial offering could encompass nonperforming loans with a total face value of up to $5 billion. After that, HUD is expected to...



Banks Drive Up LendIt Headcount

Fri, 06 Apr 2018
LendIt is expecting a record turnout for its annual marketplace-lending conference, thanks to increased participation by banks.Some 6,000 people are projected to attend the “LendIt Fintech USA 2018” event on April 9-11 in San Francisco, up from the 4,900 who showed up in New York in 2017. That jump can be attributed almost entirely to bank delegations, which are expected to account for 29% of the crowd — up from...



Moody's Enhances CLO-Data Tool

Fri, 06 Apr 2018
At the behest of clients, Moody’s Analytics has upgraded its structured-product information service to give collateralized loan obligation investors a clearer view of their risk-adjusted returns and other indicators of a manager’s style.The changes to the company’s Structured Finance Portal come in response to investor inquiries about whether the generous returns offered by CLO equity pieces, in particular, are sustainable in...



Traders May Testify at Demos Trial

Fri, 06 Apr 2018
The trial of former Cantor Fitzgerald executive David Demos, scheduled to get under way later this month, could feature testimony from several well-known structured-product professionals.Among the industry professionals on the U.S. Justice Department’s witness list are Scott Burg, chief investment officer at Deer Park Road Management; Leland Abrams, a mortgage-bond trader who previously worked at Candlewood Investment; Stuart Goldberg, head...



Tax Checks Fuel Subprime Autos

Fri, 06 Apr 2018
The performance of securitized subprime auto loans improved last month as borrowers used income-tax refunds to catch up on loan payments.According to an index maintained by Fitch, the 60-day delinquency rate among subprime-loan pools dropped 60 bp to 5.16% for the month ended March 15. Losses, meanwhile, fell 102 bp to an annualized rate of 8.80% — the lowest level since July 2017. Fitch attributed the improvement to seasonal spending...



The Grapevine

Fri, 06 Apr 2018
Ari Rosenberg, a Citigroup banker who led a group catering to online lenders, resigned from the bank this week. His plans are unknown, but a source said he will be on gardening leave before taking a new job. Rosenberg had been at the bank since 2004. Also leaving the group is second-in-command David Mandel, who joined Citi in 2007 from BNP Paribas. Earlier on, he worked at Merrill Lynch and Deutsche Bank. Sources said they expect Citi will...



The Grapevine

Fri, 06 Apr 2018
Longtime S&P executive Ted Burbage is jumping to rival rating agency Kroll. In his new role, Burbage will be a managing director in Kroll’s business-development group, with a focus on consumer assets. He is scheduled to start work April 9 in the firm’s New York office, reporting to business-development head Dana Bunting. Burbage joined S&P in 1994, and most recently served as head of rating criteria for asset-backed bonds underpinned...



The Grapevine

Fri, 06 Apr 2018
Guggenheim mortgage-bond trader Adam Laskar resigned from the firm this week. Laskar joined Guggenheim’s Los Angeles office in 2007 as part of a team that previously worked together at United Capital Markets. He was promoted to managing director in 2009. After taking some time off, Laskar plans to start a family office whose investments would include a range of structured products, with a focus on non-agency mortgage...



The Grapevine

Fri, 06 Apr 2018
Kevin McConahey has joined Yamaha Motor Finance as group manager for financial planning and analysis. McConahey, who works in Yamaha’s U.S. headquarters in Cyprus, Calif., previously spent 14 years in financing roles at Toyota. Yamaha Motor Finance is the captive-lending arm of Yamaha Motor Corp. USA. The finance division is considering securitization as a funding mechanism for Yamaha-branded credit cards the company began issuing in early...



The Grapevine

Fri, 06 Apr 2018
Corporation Service Co. continues to bulk up its staff in Europe. Robert Berry arrived in the Wilmington, Del., company’s London office in recent weeks to help lead strategy. Berry had been a top executive in the SFM Europe unit of Intertrust Group, which provides a range of support services to securitization trusts, investment funds and corporations. Intertrust acquired SFM in 2016 amid ongoing consolidation in the sector. Also set to...



The Grapevine

Fri, 06 Apr 2018
Collateralized loan obligation trader Paul Pasqua joined Auriga USA’s New York office on March 26. Pasqua had been working at StormHarbour since 2014, and before that was at PrinceRidge and Maxim Group. Auriga also is seeking to hire CLO sales specialists.



The Grapevine

Fri, 06 Apr 2018
Market veteran Yuri Chumak died March 28 following an illness. Chumak, 45, had spent much of his career structuring asset-backed bond transactions, collateralized debt obligations and collateralized loan obligations. His resume included stints at Mizuho and Wachovia, as well as Fieldstone Capital and S&P. Chumak is survived by his wife and two daughters. A memorial service is scheduled for April 7 at Somerset Hills Memorial Park and Mausoleum in...



ABS Rally Shows Signs of Losing Steam

Fri, 23 Mar 2018
For the first time in more than a year, dealers are struggling to move newly issued asset-backed securities.In the past week or two, demand has slackened due to a combination of factors including fears of rising interest rates and heightened volatility across the capital markets, traders said. It also may be that buysiders, having absorbed so much paper since the start of the year, want to take a breather.In any case, spreads widened across a...



TD Establishes MBS-Trading Beachhead

Fri, 23 Mar 2018
TD Bank has hired market veteran Nicholas Letica to oversee the creation of a U.S. mortgage-bond trading desk.Letica joined the bank’s New York office on March 12 as a managing director. Expectations are that he initially will pursue secondary-market trades of agency mortgage paper, and then expand into private-label and agency risk-transfer products.Letica most recently was a senior portfolio manager at investment firm Cello Capital, which...



Yamaha Resurfaces With Card-Bond Plan

Fri, 23 Mar 2018
Look for Yamaha Motor Corp. USA to resume issuing asset-backed securities after a long absence from the market — but with a new type of collateral backing the bonds.The motorcycle maker’s captive-lending arm, Yamaha Motor Credit, plans to use securitization as a funding mechanism for Yamaha-branded credit cards it started offering about a year ago. The operation also is looking into deals backed by dealer-floorplan loans.Word of the...



New Residential Eyes Registered MBS

Fri, 23 Mar 2018
Mortgage-bond issuer New Residential Investment is developing a securitization vehicle that it would register with the SEC.The REIT doesn’t plan to use the entity right away, however. Instead, it is going through the exercise of setting up the program so it can be ready when a market for SEC-registered home-loan paper eventually materializes.No issuer has completed a registered securitization of private-label mortgages since 2013....



Kroll Staffs Up for CLO Push

Fri, 23 Mar 2018
Kroll has hired two key professionals to help lead an expansion into collateralized loan obligation ratings.Eric Hudson is joining the agency’s New York office as a managing director in charge of CLO ratings. He most recently co-headed S&P’s CLO team. Also coming on board is business-development specialist Jason Lilien, formerly of Goldman Sachs.Hudson and Lilien will start on the same day, April 9 at the latest.Hudson led ratings for...



REIT Maps Non-QM Program

Fri, 23 Mar 2018
New York Mortgage Trust is developing a securitization program to fund purchases of home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards.Sources said the initiative is in the very early stages, with a debut bond offering unlikely before the second half of 2019. The New York REIT is talking to several Wall Street banks about establishing a warehouse line.New York Mortgage...



CLO Pros Knock Moody's for Backlog

Fri, 23 Mar 2018
A spike in refinancings of collateralized loan obligations once again has issuers and dealers grumbling that rating agencies — particularly Moody’s — aren’t equipped to handle the volume.Moody’s, which fields by far the largest number of CLO assignments, put the word out a couple of weeks ago that it no longer would accept orders to rate refinancings timed for quarterly payment dates in April. That threatens to...



Retention Rule Adds Risk for Lawyers

Fri, 23 Mar 2018
Attorneys are taking steps to insulate themselves from malpractice claims that could result from their work on asset- and mortgage-backed bond deals conducted outside the scope of the Dodd-Frank Act’s risk-retention rule.The concern is that issuers, investors or regulators could sue firms working as issuer or underwriter counsel should the SEC reject their interpretations of the retention requirement — specifically, that issuers no...



RiskSpan Testing Blockchain Tool

Fri, 23 Mar 2018
Data-analytics company RiskSpan is developing a blockchain-technology tool through which loans eventually could be originated, pooled and securitized.As an initial step, the Arlington, Va., operation began “shadowing” an unnamed mortgage-bond issuer’s deals in February — reproducing pertinent collateral data on a distributed ledger while setting up so-called smart contracts used to verify payments to bondholders. It also...



Business Lender Ready for Debut

Fri, 23 Mar 2018
Small-business lender Strategic Funding is preparing its first securitization.The $100 million deal is expected to hit the market in the coming weeks with Guggenheim running the books. Kroll will rate the bonds.Strategic has been in business since 2006. The New York firm’s securitization plan comes as part of a growth effort that nearly led it to purchase troubled rival Can Capital last year.When that deal didn’t pan out, Can sold a...



Issuers Prep for Rule-Change Overlap

Fri, 23 Mar 2018
Several risk-retention strategies are emerging among collateralized loan obligation issuers whose next deals might price just as their expected exemption from the Dodd-Frank Act’s skin-in-the-game rule becomes official.Some simply will wait to complete noncompliant deals after April 2, the expected date of a federal exemption order that would cover all CLOs. Others plan to carry out their offerings now while keeping 5% interests, setting...



The Grapevine

Fri, 23 Mar 2018
Namit Sinha is joining Angel Oak Capital as a senior portfolio manager — a key role in which he is helping to lead the operation’s mortgage-buying and securitization program. Sinha had been employed as an analyst at Los Angeles investment firm Canyon Capital since 2014. He also has spent time at Nomura, Barclays and Lehman Brothers. Angel Oak, an Atlanta consumer-finance company with $8.5 billion of assets, is both an investor and...



The Grapevine

Fri, 23 Mar 2018
Pat Gonzalez has joined Antarctica Capital’s New York office to lead a push into structured-product investments. Gonzalez, a portfolio manager with a history in the collateralized loan obligation sector, most recently was employed as chief executive of risk-management firm Athilon from 2005 until November 2016. He also has worked at XL Capital, MBIA and S&P. Antarctica is best known as a real-asset investor in the transportation,...



The Grapevine

Fri, 23 Mar 2018
Managing director Lance Soloway has left Guggenheim’s structured-product sales desk in Los Angeles. His plans are unknown. Soloway, a longtime industry professional, joined Guggenheim in 2007 from United Capital. His former employers also include HSBC, Countrywide, Donaldson Lufkin & Jenrette, Bear Stearns and Drexel Burnham Lambert.



The Grapevine

Fri, 23 Mar 2018
Former Cantor Fitzgerald staffers Raphael Gonzalez and Ben Morganstein have joined Performance Trust Capital’s New York office with a focus on trading asset- and mortgage-backed securities. Gonzalez, a managing director, worked at Cantor from March 2017 to this February. His previous employers include Angel Oak Capital, Baird, Passport Capital, J.P. Morgan, Bank of America and Barclays. Morganstein, a director, stopped working at Cantor in...



The Grapevine

Fri, 23 Mar 2018
Mortgage-focused due-diligence firm Barrent Group has hired a head of business development. Art Yeend arrived in the operation’s San Francisco office this month from MountainView Capital, where he worked since 2013 as head of sales. Yeend’s former employers also include Got Appraisals, PMI Mortgage Insurance and Links Securities.



The Grapevine

Fri, 23 Mar 2018
Pelican Auto Finance chief executive Troy Cavallaro will be looking for a new job on April 1. That’s the date Pelican will finish an unwinding process that began Dec. 15. The Chadds Ford, Pa., subprime-auto lender had been planning to securitize its receivables. Cavallaro co-founded Pelican in 2009 and later sold a stake in the business to Flexpoint Ford. He earlier worked at ACC Consumer Finance, Centrix Financial, Household Finance and...



The Grapevine

Fri, 23 Mar 2018
OneMain Financial has an opening for an analyst on its capital-markets and treasury team in Stamford, Conn. The recruit would handle a host of duties related to OneMain’s personal-loan securitization program, including preparation of marketing materials and coordination with underwriters and rating agencies. OneMain is focusing on candidates with at least one year of experience. Applicants can email hiring manager Joe Delgardio at...



The Grapevine

Fri, 23 Mar 2018
Figure, a startup home-loan company that plans to securitize some of its receivables, is looking for a chief compliance officer. Founder Mike Cagney, who previously was among the founders of Social Finance, is talking to candidates with 7-15 years of experience. The recruit would work in San Francisco. Figure plans to write home-equity lines, home-improvement loans and reverse mortgages, using blockchain technology throughout the origination,...



Outlook Favors Sustained Conduit Growth

Fri, 16 Mar 2018
Commercial-paper conduit professionals foresee a continuing rebound in the market.Buoyed by a wave of new investors, the amount of conduit paper in the hands of investors worldwide rose to an average of $333.5 billion during the fourth quarter of 2017 from $314.2 billion a year earlier, according to Moody’s.The last time the agency recorded a higher fourth-quarter figure was 2012, at $379.1 billion. The difference is that back then, the...



Morgan Stanley Boosts Mortgage Efforts

Fri, 16 Mar 2018
Morgan Stanley is placing a renewed emphasis on its mortgage-finance business.The undertaking follows a period of more than two years in which the bank reduced its warehouse-lending and bond-underwriting activities in the sector, while operating with a reduced staff. The plan is to start with a gradual expansion on the warehousing side, with an anticipated increase in underwriting assignments to follow.To that end, Morgan Stanley is eyeing a mix...



European CLOs Encounter Rough Period

Fri, 16 Mar 2018
Collateralized loan obligation issuers in Europe suddenly are having a harder time placing the senior portions of their deals.While characterizing the situation as temporary, industry participants said a number of factors are at play — including the approaching fiscal yearend for investors in Japan and an over-supply of offerings from first-time issuers. The upshot: Spreads on senior CLO paper in the region have reached their widest point...



More Growth for Redwood Program

Fri, 16 Mar 2018
Projections for Redwood Trust’s mortgage-securitization volume continue to swell.Just a few months ago, the expectation was that the Mill Valley, Calif., REIT’s output of home-loan bonds would rise by perhaps $1 billion this year, from $3.2 billion in 2017. Industry participants now are envisioning a $2 billion increase.The reason: a jumbo-loan program called Choice that caters to borrowers with blemished credit histories is gaining...



Clash Precedes FHFA Deadline

Fri, 16 Mar 2018
Mortgage professionals have yet to reach a consensus on a potential change to the Federal Housing Finance Agency’s credit-score policies.At issue is a suggestion by the regulator that Fannie Mae and Freddie Mac could continue to base their lending decisions on Fair Isaac Corp.’s FICO score, or switch to a system called VantageScore overseen by a partnership between Equifax, Experian and TransUnion. Another possibility would be for the...



Lawyers Eye Student-Loan Servicers

Fri, 16 Mar 2018
Lawyers are talking to asset-backed bond investors about possible legal action against student-loan servicers.The discussions are in response to lawsuits filed by several states alleging deceptive practices by servicers of loans guaranteed under the U.S. Department of Education’s now-unwinding Federal Family Education Loan Program. Among the servicers that have been named so far are Navient and the Pennsylvania Higher Education Assistance...



Defaults Weigh on US CLOs

Fri, 16 Mar 2018
Asset quality among collateralized loan obligations issued after the credit crisis declined in December, reflecting a flurry of corporate downgrades and defaults.Among deals in the U.S., the median weighted average rating factor — an indicator of borrower health — deteriorated by four points to 2817, according to an index maintained by Moody’s. That’s the equivalent of a “B2” rating. In Europe, the WARF measure...



Lenders Wary of State Actions

Fri, 16 Mar 2018
With the Consumer Financial Protection Bureau hobbled, concerns are building that state regulators will step up their borrower-advocacy efforts.Since taking over as acting head of the CFPB in November, Mick Mulvaney has walked back a number of the agency’s more-aggressive actions. But lawyers increasingly are warning that financial institutions could face bigger headaches if the states take up those causes.“Instead of one aggressive...



Divergence Seen in Funding Trend

Fri, 16 Mar 2018
The percentages of auto loans and leveraged loans bundled into securitizations rose in 2017, in contrast with other major asset classes.According to S&P, there were $1.1 trillion of prime-quality and subprime auto loans outstanding at yearend, of which 18.2% were securitized. That was up from 18% a year earlier, but down from a peak of 26.5% in 2002.S&P measured the leveraged-loan market at $959 billion, with collateralized loan obligations...



CLO Pros Unshaken by Zohar Filing

Fri, 16 Mar 2018
Collateralized loan obligation professionals are shrugging off Lynn Tilton’s latest legal maneuver.Acting as an equity holder in a CLO called Zohar 3 that her Patriarch Partners issued in 2007, Tilton filed a petition with Delaware Chancery Court in Wilmington on March 11 to force the deal into bankruptcy.The action appears to stem from a situation in which the deal doesn’t have sufficient cashflows for a balloon payment due in April...



Investors Embrace Skopos Offering

Fri, 16 Mar 2018
Skopos Financial’s second securitization of subprime auto loans was well-received by investors.The senior tranche of the $147 million deal, which priced March 14, went out the door at 87 bp over eurodollar futures — or 3 bp tighter than suggested levels from bookrunners Citigroup and Deutsche Bank (see Initial Pricings on Page 10).To be sure, Skopos had to offer senior bondholders substantially more protection than it provided for...



The Grapevine

Fri, 16 Mar 2018
Mizuho downsized its structured-product sales unit last week. Among those let go were Anders Hurst and Matthew Rossi in New York, and Brian Vanselow in Chicago. Hurst had joined the bank in 2015, after stops at Performance Trust, RBS and Merrill Lynch. Rossi came on board in 2009 from FTN Financial, and before that was at Countrywide, J.P. Morgan, Morgan Stanley and Oppenheimer & Co. Vanselow, an executive director, arrived in 2014 after working...



The Grapevine

Fri, 16 Mar 2018
Information Management Network has rescheduled its “ABS East” conference to Sept. 23-25, from Sept. 17-19. The reason: The original dates overlapped with the Jewish holiday of Yom Kippur. IMN officials said the move also came in response to feedback from industry participants who felt the event’s timing was too close to “SFIG Vegas,” which the Structured Finance Industry Group held in Las Vegas on Feb. 25-28....



The Grapevine

Fri, 16 Mar 2018
Sameer Maru is leaving his post as Goldman Sachs’ head collateralized loan obligation trader in New York. Maru, a managing director, is believed to be taking a large buyout. He joined Goldman in 2000 from Arthur Andersen. While Maru has been directing the bank’s CLO-trading strategy, sources said day-to-day interactions more often have taken place with Kamal Ramnani. He arrived in 2015 from KGS-Alpha...



The Grapevine

Fri, 16 Mar 2018
Portfolio manager Michael Sobol has left Axonic Capital, where he invested in collateralized debt and loan obligations. He is taking a similar job in GSO Blackstone’s New York office. Sobol started at Axonic in 2013. He previously worked at Cantor Fitzgerald, Tourmaline Advisors, Agamas Capital, Ivy Asset Management and BNY Mellon.



The Grapevine

Fri, 16 Mar 2018
Senior sales specialist Randee Paston no longer is employed at Cantor Fitzgerald. Paston had been working in the brokerage firm’s New York office since 2009. Before that, she spent time at UBS and predecessor Paine Webber. Her plans are unknown. Her exit from Cantor comes amid a staffing churn that has followed the January arrival of Jim Buccola from Credit...



The Grapevine

Fri, 16 Mar 2018
Hunt Financial Securities has added a managing director to its Los Angeles office. Steve Fulton’s previous employers include Western Asset Management, where he headed portfolio management for securitized products from 2000 to 2013. More recently, he started a martial-arts training business.



The Grapevine

Fri, 16 Mar 2018
MUFG has hired a managing director to lead a group that offers structured financing to investors in a range of products, including asset-backed securities, mortgage bonds and collateralized loan obligations. Scott Rodman joined the bank’s New York office this month from HSBC, where he worked since 2013. Rodman previously spent time at Nomura, Deutsche Bank, Credit Suisse and Merrill...



The Grapevine

Fri, 16 Mar 2018
Barry Rafferty has taken the top capital-markets post at San Mateo, Calif., personal-loan originator Freedom Financial. Rafferty, a senior director, had been working in a similar capacity at Upstart since 2016. He also has spent time OneMain Financial, J.P. Morgan and Citigroup. Freedom typically sells its loans, sometimes to investors that securitize...



The Grapevine

Fri, 16 Mar 2018
The organizers of the “SFIG Vegas” conference have differing accounts of how many people attended the gathering. The Structured Finance Industry Group pegs the headcount at 7,500. Information Management Network puts the total at 6,800. The difference: SFIG is counting individuals who conducted meetings outside the event but never registered, while IMN’s tally counts only official participants. Either way, the count was a record....



Job Prospects Weak Despite Market Growth

Fri, 09 Mar 2018
The employment outlook for structured-product banking, trading and distribution professionals isn’t keeping pace with the market’s expansion.Instead of bringing in new staff to handle increased dealflow, investment banks have been adding to the tasks of their existing teams — many of which have been operating in scaled-down form since the credit crisis. And those that are adding personnel in many cases are doing so only at the...



Jennings' Suit Raises Licensing Questions

Fri, 09 Mar 2018
William Jennings’ wrongful-termination lawsuit against Hunt Cos. could expose both the firm and himself to scrutiny from Finra.Jennings filed his complaint with U.S. District Court in New York on March 2, seeking $72 million of damages. In the complaint, he alleges that Hunt wooed him in October 2016 to build a securitization-focused broker-dealer business at subsidiary Hunt Financial Securities — leading to his official hiring on...



Angel Oak Solves Fix-and-Flip Problem

Fri, 09 Mar 2018
The latest securitization of “fix-and-flip loans” employed a novel structure that industry professionals see as a possible road map for other issuers.On March 2, Angel Oak Capital privately placed $90 million of bonds backed by short-term loans to developers and speculators who buy run-down houses, and then quickly fix and resell them. Performance Trust handled distribution and structuring duties — using a revolving trust for...



Direct-Loan Sales on the Table

Fri, 09 Mar 2018
Rumors are circulating that the U.S. Department of Education could sell some or all of its student-loan inventory.The chatter appears to stem from efforts in which small-government advocacy groups have asked Wall Street banks if they would be interested in buying and possibly securitizing the accounts. To that end, any such efforts would appear to be in the early conceptual stages.Republican lawmakers and Treasury Department officials already...



Tidewater Keeps Program Rolling

Fri, 09 Mar 2018
Tidewater Finance is preparing a securitization of subprime auto loans.The deal is expected to total about $150 million, with marketing scheduled to begin around the beginning of April. KeyBank is serving as bookrunner. S&P and Kroll are weighing in with ratings.Tidewater typically has floated an auto-loan securitization every two years, beginning in 1999. The Virginia Beach, Va., lender has completed five such offerings totaling $627.7 million...



Westlake Takes Over Pelican Loans

Fri, 09 Mar 2018
Westlake Financial has purchased the servicing rights for $75 million of subprime auto loans originated by Pelican Auto Finance.Westlake, which paid Pelican an undisclosed sum, will take over as servicer on March 15, sources said. Westlake also acquired an ownership stake in the loans.The Los Angeles firm is a routine issuer of subprime auto-loan bonds, most recently pricing a $1 billion offering on Jan. 17 that carried single-A grades from S&P...



CLO Tweak Raises Investors' Ire

Fri, 09 Mar 2018
Collateralized loan obligation investors are mobilizing against the expansion of a profit-taking tactic that favors equity holders.At issue are so-called par-flush provisions in which managers can route trading profits directly to their deals’ first-loss pieces. While such mechanisms already are common, they began to attract more attention amid proposals to allow them for longer periods.The response from senior and mezzanine noteholders has...



Rule Discrepancy Vexes CLO Buyers

Fri, 09 Mar 2018
Collateralized loan obligation investors in Europe are nervous that they may soon have less access to offerings from the U.S.At issue is the U.S. Court of Appeals for the District of Columbia Circuit’s Feb. 9 ruling that the Federal Reserve and SEC were mistaken in applying the Dodd-Frank Act’s risk-retention rule to CLOs. The concern is that as some managers respond by floating deals without keeping skin in the game, their offerings...



No Rebound for Subprime Autos

Fri, 09 Mar 2018
The performance of securitized pools of subprime auto loans continued to sputter last month, defying expectations of a post-holiday rebound.According to an index maintained by Fitch, delinquencies among subprime-loan pools rose 49 bp to 5.76% during the month ended Feb. 15. That’s the highest reading since Fitch started tracking auto-loan securitizations in 2001. Losses also worsened, ticking up 16 bp to an annualized 9.82%. Subprime...



CLO Bid List Seen as Anomaly

Fri, 09 Mar 2018
Secondary-market traders were buzzing about a massive batch of collateralized loan obligation securities that went out for bid late on March 5 — while keeping their expectations for more volume in check.The $650 million offering, described as coming from an undisclosed bank’s treasury portfolio, sold the next day amid strong demand. Sources said dealers including Morgan Stanley likely were the buyers, given the fact that the bonds...



Deutsche Adding Custody Tool

Fri, 09 Mar 2018
Deutsche Bank’s corporate-trust unit is offering to store and track electronic documents for mortgage originators.The effort currently is in a pilot phase, with several lenders taking part. Assuming it catches on, Deutsche plans to pitch the service as improving the efficiency with which home loans can be securitized.The participants in Deutsche’s pilot program are angling to be some of the first to fully digitize the mortgage...



Buyers Target Rental-Home Subs

Fri, 09 Mar 2018
Subordinate securities backed by rental-home receivables are selling briskly.Specifically, secondary-market traders said they have received an unusual number of inquiries in recent weeks from investors seeking the deals’ Class-F securities, which typically carry triple-B grades and five-year lives.The buyers have included a number of asset managers and corporate treasury operations that want to find higher-yielding alternatives to Treasury...



The Grapevine

Fri, 09 Mar 2018
Barclays appointed Will Zak as head of securitized-product trading on March 2. Zak takes over for Chris Haid, who was snared in a round of layoffs in January. His assignment encompasses trading of asset-backed bonds, residential mortgage securities and commercial mortgage products. The New York-based Zak arrived at Barclays in 2004 from SMBC Capital.



The Grapevine

Fri, 09 Mar 2018
The buzz is that Cantor Fitzgerald paid heavily to bring in Jim Buccola as head of its fixed-income division, with some sources pegging his annual compensation package at $12 million to $15 million. Word on the street is that Buccola was taking home about $9 million per year in his former role as Credit Suisse’s head structured-product trader, and that he sought a raise the bank was unwilling to provide. But Cantor apparently was ready to...



The Grapevine

Fri, 09 Mar 2018
Richard Tantone has signed on as head of an RBC unit that supplies warehouse financing to collateralized loan obligation issuers. Tantone arrived in the bank’s New York office in February. His resume includes two stints at Citigroup, most recently from 2004 to February 2018 and before that from 2000 to 2003 — with a stop at Deutsche Bank in...



The Grapevine

Fri, 09 Mar 2018
Executive director Sunil Rohra left Natixis’ collateralized loan obligation-underwriting unit in late February, apparently to take a similar job at J.P. Morgan. Rohra had been stationed in Natixis’ New York office since 2016. Before that, he worked at Moody’s, the FDIC and Bank of America.



The Grapevine

Fri, 09 Mar 2018
Word is circulating that Credit Agricole has zeroed in on a candidate to assume leadership of its asset-backed securities syndicate desk. The recruit would take over for David Stern, who left the bank’s New York office in December to take a similar post at TD Bank. Stern had been on board since 2009.



The Grapevine

Fri, 09 Mar 2018
Several employees have left Orchard Platform, a New York firm that offers data and brokerage services to participants in the marketplace-lending industry. Among those gone is business-development head Ethan Schwarzbach. He is now part of a group that is starting a Charleston, S.C., operation called inFactorIQ that helps marketplace lenders distribute their accounts. Schwarzbach had joined Orchard in 2015 from RBS. Also out is Jeremiah Neal, a...



The Grapevine

Fri, 09 Mar 2018
Barry Rafferty has left his post as capital-markets chief at online personal-loan originator Upstart. Rafferty’s plans are unknown. He had joined the San Carlos, Calif., company in November 2016 from OneMain Financial, having started at OneMain predecessor Springleaf Financial in 2014. He also has worked at J.P. Morgan and Citigroup. Upstart launched a securitization program in 2017. So far, it has completed two deals totaling $338.2...



The Grapevine

Fri, 09 Mar 2018
Salvatore Salzillo has left his post as a senior vice president in charge of commercial-lending activities at BofI Federal Bank, a role in which he assembled structured-finance transactions for commercial real estate and equipment-leasing companies. Salzillo had joined the San Diego parent of Bank of Internet USA in 2012 from Key Equipment Finance. His former employers also include the FDIC, Export-Import Bank of the United States, GE Capital and...



SEC Preps Action Over Prosper's Returns

Fri, 02 Mar 2018
The SEC is set to file a complaint against Prosper Marketplace for overstating returns on its personal loans.Sources said the SEC plans to submit a civil lawsuit soon, and will seek a fine. The regulator apparently has been investigating the matter for about a year, focusing on disparities between the returns listed on loan buyers’ statements and the lower amounts they actually received.There also is talk that the Department of Justice has...



ED&F Bowing Out of Secondary Market

Fri, 02 Mar 2018
Broker-dealer ED&F Man is getting out of the market for structured products.Group head Darryl Smith already is in the process of laying off his New York-based sales and trading staff, sources said. Smith will exit as well.Among those on their way out are collateralized loan obligation specialists Stanton Lenahan and Anthony Veltri. Lenahan, formerly of Guggenheim, had started in 2015 as one of Smith’s first recruits. He is looking for a new...



Finra Scrutiny Sidelines Amherst Sales Pro

Fri, 02 Mar 2018
Amherst Pierpont Securities has placed managing director Ryan Stroker on leave amid accusations from Finra that he committed securities fraud.Amherst removed Stroker from his New York post in January. The move followed an internal recommendation from Finra on Sept. 13 that he face disciplinary action for allegedly violating two of its guidelines and a separate SEC regulation.Finra’s investigation looked into an unspecified series of...



US Bank Chases Origination Work

Fri, 02 Mar 2018
U.S. Bank is seeking a larger presence as an asset-backed bond underwriter.The bank already has been active in the market for about two years, winning co-manager assignments mainly as a byproduct of its work as a warehouse lender. The next step, beginning now, is to assume a more active role in origination and structuring.The plan for the immediate future is to continue working as a co-manager. But U.S. Bank expects to land bookrunning mandates...



Goldman's Marcus Unit Shuns ABS

Fri, 02 Mar 2018
Goldman Sachs doesn’t plan to use securitization to fund its personal-loan business, dubbed Marcus.That’s the word from a bank spokesman following a Feb. 27 report in The Wall Street Journal about plans to expand Marcus beyond personal loans to include auto loans, mortgages and other types of consumer financing. The initiative had prompted speculation among securitization professionals and investors that Marcus could become a routine...



Aircraft Supply Keeps Climbing

Fri, 02 Mar 2018
The market for aircraft-lease securities is still running strong.As many as 18 potential issuers have approached rating agencies to discuss offerings that they might bring to market this year. Among them are a number of repeat participants, including Aergen and Castlelake, along with some first-time players.Two deals already have priced in the asset class this year. On Jan. 23, Apollo Aviation priced $422.3 million of bonds with DVB Bank, Goldman...



CLO Default Seen as Case Study

Fri, 02 Mar 2018
The default of a collateralized loan obligation issued by Airlie Group offered a rare glimpse into the events that can lead to losses for bondholders in such transactions.Airlie CLO, 2006-2, unwound in late 2017 after controlling noteholders exercised a call option. The move saw senior and upper mezzanine investors recover all of their principal, with some lower mezzanine bonds that initially carried double-B ratings from Moody’s and S&P...



China Bank Maps US Offerings

Fri, 02 Mar 2018
A U.S. warehouse-lending program at China Merchants Bank is expected to yield its first securitizations this year.Some of the deals would be backed by business loans that the Shenzhen-based institution’s New York office has been financing for originators and collateralized loan obligation issuers. Others would involve aircraft receivables and commercial mortgages.The transactions would mark the next step in an effort that saw China...



Issuance Revs Up Post-Vegas

Fri, 02 Mar 2018
Following a brief lull coinciding with the industry’s annual conference in Las Vegas, asset-backed bond issuers and investors are gearing up for what is expected to be a busy month.Many of the most active auto-finance companies, credit-card issuers and education lenders have deals in the works, including American Express, Citigroup, Ford, General Motors Financial, J.P. Morgan, Navient, Sallie Mae and Santander Consumer USA. For the month of...



Industry Pro Launches Shop

Fri, 02 Mar 2018
Structured-finance veteran Jennifer McGuinness has started a business that assists lenders with originations, financing, servicing and asset management.Strategic Venture Partners opened its doors about a week ago. The firm caters to lending operations that may have solid business models but lack expertise in certain areas — say, raising capital or servicing loans.For example, McGuinness hopes to advise online lenders that have developed...



The Grapevine

Fri, 02 Mar 2018
Managing director Kevin Webb has left Jefferies, where he helped oversee a push to buy and securitize marketplace-originated personal loans. His destination: The Greenville, S.C., office of subprime auto lender Global Lending Services, as head of capital markets. Webb had arrived at Jefferies in 2011 after stops at Corre Partners, Lehman Brothers and Wachovia. Global Lending Services has completed four securitizations totaling $803.8 million so...



The Grapevine

Fri, 02 Mar 2018
Credit Suisse has added a senior staffer to a Chicago operation called Sector Financial that offers warehouse lines to asset-backed bond issuers, with a focus on buyers of marketplace-originated personal loans. The recruit, Don Potts, most recently was a top relationship manager for a similar program at Capital One — but apparently began looking for a new job when the bank pulled back from marketplace-loan financing last year. He had...



The Grapevine

Fri, 02 Mar 2018
Cantor Fitzgerald added two more sales specialists to its New York office about a week ago, bringing in Gregory Conn and Joe Reardon to cover mortgage bonds. Conn had been employed at Citigroup since 2005, most recently as a member of the bank’s asset-backed securities syndicate desk. He also has worked at Yield Book. Reardon was a managing director at Brownstone Investment, which he joined in 2015 after a stint at Deutsche Bank. The...



The Grapevine

Fri, 02 Mar 2018
Sales specialist Justin Titus is leaving the Chicago office of J.P. Morgan, where he has covered a range of structured products since 2009. Titus’ destination is unknown. He earlier worked at Citigroup, by way of its purchase of Salomon Brothers, and spent time at Lehman Brothers.



The Grapevine

Fri, 02 Mar 2018
Sales specialist John Pagan started in Oppenheimer & Co.’s New York office last week, covering a mix of asset- and mortgage-backed securities. Pagan had worked in a similar role at CastleOak Securities since 2016. Earlier, he was at Mint Partners, BGC Financial and Tullett Prebon. At Oppenheimer, he reports to managing director Behzad Mansouri.



The Grapevine

Fri, 02 Mar 2018
Nomura added a senior associate to its structured-product sales desk in Manhattan Beach, Calif., last week. The recruit, Michaela Miro, most recently was a director at Cantor Fitzgerald and before was at HSBC Global Asset Management.



The Grapevine

Fri, 02 Mar 2018
The Structured Finance Industry Group is seeking an education manager. The recruit would work in Washington, with duties including the development of a quarterly trade journal, professional-development programs and industry research. He or she also would absorb some conference-organization duties that formerly were held by Scott Brody, who left the trade group in November. Brody had just arrived in May on the heels of a decision by SFIG not to...



The Grapevine

Fri, 02 Mar 2018
Wilmington Trust has two openings on its capital-markets team. One of the vacancies is for a structured-finance transaction manager with 4-6 years of experience. The other is for a cashflow-modeling specialist with 3-5 years in the field. The recruits could work in New York, Minneapolis, Buffalo, Baltimore, Chicago or Wilmington, Del. Candidates can apply at mtb.com by clicking on “careers” and entering job number 3DGR6 or...



The Grapevine

Fri, 02 Mar 2018
Empirasign is seeking a marketing specialist. The recruit would work in the data company’s New York headquarters, pitching trading-focused information on asset-backed bonds, mortgage securities and collateralized loan obligations to banks and investors. He or she would report to founder Adam Murphy.



Vegas Conference Feeding Off Hot Market

Fri, 23 Feb 2018
With issuance volume at a fever pitch and increasing optimism about the regulatory climate, a record number of industry professionals are descending on Las Vegas with packed meeting schedules and bullish spirits.The Structured Finance Industry Group and Information Management Network so far have signed up nearly 7,000 people for the “SFIG Vegas” conference, scheduled for Feb. 25-28 at the Aria Resort & Casino. And last-minute...



PennyMac Jumps Back Into Jumbo Loans

Fri, 23 Feb 2018
PennyMac is re-starting its jumbo-mortgage program, with securitization as a funding source.The origination side of the initiative is set to launch soon, with PennyMac aggregating the accounts from wholesale brokers and retail channels, and later, correspondent lenders. A securitization could occur by yearend, with routine offerings to follow.A REIT affiliate, PennyMac Mortgage Investment, would fill the role of issuer. PennyMac also plans to...



Gordian Knot Toying With SIV Re-Launch

Fri, 23 Feb 2018
Gordian Knot hasn’t given up on the market for structured investment vehicles.The London firm once ran an SIV called Sigma Finance that was the largest of its kind, with a portfolio of $45 billion. But the vehicle and all others like it failed after the 2007 financial-market crash.Now comes word that Gordian Knot founders Stephen Partridge-Hicks and Nicholas Sossidis were in the U.S. in recent weeks in an early attempt to determine the...



PayPal to Offer Business-Loan Bonds

Fri, 23 Feb 2018
PayPal is developing a small-business loan securitization program.Executives from the San Jose company have discussed the plan with underwriters and rating agencies in recent weeks, signaling a desire to float an offering of perhaps $500 million late this year or in early 2019.While PayPal has been considering securitization to fund its small-business loans for some time, the company only began moving ahead with the effort in earnest after buying...



Auto Lender Charting Program

Fri, 23 Feb 2018
A subprime auto lender that launched in 2007 is preparing to issue asset-backed bonds for the first time.The effort dovetails with an initiative in which the Gretna, La., operation plans to expand its origination business and is in the process of changing its name to 1803 Capital from National Auto Acceptance. It also reflects the influence of securitization veterans Scott Friedman and Patrick Ghere, who bought a stake in the business last...



AXA Bumping Up CLO Production

Fri, 23 Feb 2018
AXA is planning a further increase in its output of collateralized loan obligations.The insurer is expected to carry out three or four deals in the U.S. in 2018, up from two in 2017 and one per year from 2013 through 2016. Its first offering of 2018 likely will hit the market in the coming weeks, with a projected size of $400 million to $500 million.Goldman Sachs will run the books. Morgan Stanley, meanwhile, already is in talks to lead a...



CP Demand Soars on Tax Rule

Fri, 23 Feb 2018
As they prepare to repatriate vast sums of capital held abroad, U.S. companies are exploring the idea of temporarily parking some of the money in asset-backed commercial paper.Large pharmaceutical and technology businesses appear to be leading the pack, including Alphabet, Apple, Eli Lilly and Pfizer. Some smaller companies in the same industries also are mulling purchases at the instruction of their treasury units.The repatriation plans are tied...



Lenders Seek Feedback from Ginnie

Fri, 23 Feb 2018
Rattled by Ginnie Mae’s crackdown on aggressive refinancing of U.S. Department of Veterans Affairs mortgages, originators are asking the agency to specify what it views as unacceptable.At issue is a warning that Ginnie issued to nine lenders last week, informing them it would kick them out of its main mortgage-bond program unless they corrected their behavior. Specifically, the companies are suspected of rapidly refinancing veterans’...



Auto Lenders Tighten Credit

Fri, 23 Feb 2018
Data from DBRS quantifies ongoing steps that auto lenders took to reduce risk last year after their loan portfolios experienced higher-than-expected losses in 2015.Consider that borrowers with credit scores of 620-659 — at the high end of the subprime spectrum — accounted for an average of 43.6% of the lenders’ portfolios during the third quarter of 2017, up from a record low of 40.5%, on average, in 2015. And subprime-loan...



Real Estate Startup Joins Pipeline

Fri, 23 Feb 2018
A startup that originates fix-and-flip loans and buys distressed homes is looking at securitization.Aperture Real Estate is a ways off from its first bond offering. But it is interested in entering the market to fund both of its business lines, should they grow large enough. A securitization of fix-and-flip loans would employ a conventional structure in which loan payments would feed distributions to bondholders. A distressed-property offering...



Loan-Pricing Tool Adds DealVector

Fri, 23 Feb 2018
Collateralized loan obligation investors using Thomson Reuters’ loan-pricing information service soon will be able to connect with other investors via DealVector’s messaging system.The arrangement will allow Thomson’s clients to instantly share information about loan and bond prices, liquidity sources and deal-governance issues. DealVector’s clients, meanwhile, will gain access to an extended network of investors who use...



TIG Seeks More Buying Power

Fri, 23 Feb 2018
TIG Advisors is aiming to bring in some fresh capital for two of its structured-product funds.It’s unclear how much the New York firm intends to raise for the entities, TIG Securitized Asset Fund and TIG Sunrise Master Fund. TIG Securitized Asset Fund finished 2017 with $500 million under management, down perhaps $60 million from a year earlier. TIG Sunrise had $150 million under management, up $60 million.While both hedge funds already...



Bond Ratings Boost Exeter Plan

Fri, 23 Feb 2018
The prospects for a sale of Exeter Finance have improved, now that the subprime auto lender’s bonds are earning triple-A ratings from Moody’s and S&P.The Blackstone portfolio company long has relied on securitization as a funding source, but only saw its deals earn top grades from DBRS. That changed on Jan. 22, when a $550 million offering also earned the highest possible marks from Moody’s and S&P.Moody’s rating...



REGULATORY ROUNDUP

Fri, 23 Feb 2018
Government Actions Align to Market’s BenefitThe regulatory landscape continues to shift in favor of the structured-finance industry, with help from all branches of government.A Feb. 9 ruling by a U.S. Appeals Court panel in Washington that the Federal Reserve and SEC were wrong to apply the Dodd-Frank Act’s risk-retention rule to collateralized loan obligations has opened the door for other securitized products to gain the same...



REGULATORY ROUNDUP

Fri, 23 Feb 2018
Risk Retention — Fed, SEC, TreasuryA three-judge panel on the U.S. Court of Appeals for the District of Columbia Circuit ruled on Feb. 9 that the Federal Reserve and SEC were mistaken in applying the Dodd-Frank Act’s risk-retention rule to collateralized loan obligations, igniting talk that other types of securitizations also could be exempt. For CLOs, expectations are that the decision could prompt the return of some issuers that sat...



REGULATORY ROUNDUP

Fri, 23 Feb 2018
Mortgage Agencies — CongressThe Senate Banking Committee is pushing to take Fannie Mae and Freddie Mac out of government conservatorship and place them in receivership. The plan, released in draft form on Jan. 31, would have the agencies emerge as smaller, private entities that would compete with at least five other bond insurers. Ginnie Mae, meanwhile, would become the only government-sponsored enterprise offering explicit guarantees on...



REGULATORY ROUNDUP

Fri, 23 Feb 2018
Covered Bonds — CongressEfforts to develop a regulatory framework for covered-bond sales in the U.S. received a boost on Feb. 8, when the Senate Banking Committee approved Trump Administration nominee Jelena McWilliams to head the FDIC. McWilliams most recently was chief counsel at Fifth Third Bank. She earlier was on the staff of Sen. Mike Crapo (R-Idaho), who was behind a series of covered-bond bills that failed when former FDIC heads...



REGULATORY ROUNDUP

Fri, 23 Feb 2018
STS Rules — European RegulatorsApril looks like the timeframe for the European Banking Authority to release a more detailed version of a sweeping set of securitization-focused regulations. The outlook comes after the EBA and the European Securities and Markets Authority requested input on the process in December, as they stepped in following European Parliament’s approval of the new framework on Oct. 26. At the center of the...



REGULATORY ROUNDUP

Fri, 23 Feb 2018
Capital Reserves — BISThe Bank for International Settlements finalized development of its so-called Basel 3 rules on Dec. 7, setting a unified risk-weight floor for structured products in the U.S. and Europe. The figure, used in calculations of risk-based capital reserves, had received stricter treatment from the Federal Reserve and other U.S. regulators than from their counterparts in Europe. The BIS opted for the U.S. standard, with an...



REGULATORY ROUNDUP

Fri, 23 Feb 2018
CFPB — CongressThe Nov. 24 resignation of Consumer Financial Protection Bureau director Richard Cordray has paved the way for a reduction in the agency’s activities. Answering complaints from Trump Administration officials and other Republicans about the CFPB, interim director Mick Mulvaney already has tapped the brakes on several initiatives — including an investigation of Equifax’s 2017 data breach and lawsuits against...



REGULATORY ROUNDUP

Fri, 23 Feb 2018
Common Securitization Platform — FHFAThe Federal Housing Finance Agency continues to work toward a 2019 target date to begin issuing agency mortgage bonds through the Common Securitization Platform. But even that long-delayed timeframe is in doubt. That’s in part because a Senate Banking Committee proposal to reposition Fannie Mae and Freddie Mac as private mortgage-bond guarantors could upend the entire effort.Under that scenario,...



REGULATORY ROUNDUP

Fri, 23 Feb 2018
Marketplace Lending — CongressThe House passed a measure on Feb. 14 that would lessen the effects of state usury laws on sales of marketplace loans. The Protecting Consumers Access to Credit Act would reinforce a provision in the National Bank Act under which bank-originated loans could be sold or transferred to non-bank institutions at their original interest rates, no matter how high. In doing so, it would address concerns surrounding the...



REGULATORY ROUNDUP

Fri, 23 Feb 2018
Libor — U.K. GovernmentThe Federal Reserve, Structured Finance Industry Group and Loan Syndications and Trading Association are among the entities discussing how to respond to the U.K. Financial Conduct Authority’s proposed elimination of Libor. Among the more likely scenarios would be for Intercontinental Exchange or another data company to maintain the benchmark for existing deals, with future offerings pegged to a new rate. To that...



REGULATORY ROUNDUP

Fri, 23 Feb 2018
Trade Reporting — FinraThere’s still no word on when Finra will release trade-by-trade details for secondary-market sales of mortgage bonds and collateralized loan obligation notes. The self-regulatory agency was expected to set a date early last year, following several delays, but has kept mum on the matter. Finra already has been releasing aggregate trading data for mortgage bonds and CLOs daily through its Trade Reporting and...



REGULATORY ROUNDUP

Fri, 23 Feb 2018
Student Loans — Department of EducationThe House is expected to begin debating the Promoting Real Opportunity, Success, and Prosperity through Higher Education Reform Act (Prosper Act) in the coming weeks. The proposal, introduced Dec. 1 by Rep. Virginia Foxx (R-N.C.), would reauthorize the Higher Education Act — and in the process reduce the amounts that certain students could borrow directly from the U.S. Department of Education....



Radian Rolls Out New Sales Team

Fri, 23 Feb 2018
Radian Group is taking its newly configured sales team on the road.The Philadelphia mortgage insurer officially launched its “enterprise-sales” unit on Feb. 13. Headed by Brien McMahon, the unit’s mandate is to offer clients a suite of products across its parents’ business lines, including due-diligence shop Clayton Holdings, asset manager Green River Capital, brokerage Red Bell Real Estate and real estate-data supplier...



The Grapevine

Fri, 23 Feb 2018
Former BNP Paribas executive Fabrice Susini has a new job. Susini now works in Riyadh, Saudi Arabia, as chief executive of a government-sponsored operation called Saudi Real Estate Refinance whose mission is to improve conditions in the nation’s real estate market — in part by issuing mortgage bonds in the U.S. and Europe. That operation, established in 2017, falls under the umbrella of Saudi Arabia’s sovereign wealth fund....



The Grapevine

Fri, 23 Feb 2018
Bank of America sales specialist Arin Chilcote gave notice this week. Word has it that Chilcote is headed to Cantor Fitzgerald, which has continued a recruiting effort that included the September hiring of a bond-trading team from Credit Suisse. Chilcote, a managing director at BofA, has been working in the bank’s Chicago office since 2014. He also has worked at RBS, J.P. Morgan and Credit...



The Grapevine

Fri, 23 Feb 2018
Industry participants are pointing to friction with members of the Hunt family as the reason for William Jennings’ Feb. 9 resignation as president of Hunt Financial Securities. Specifically, sources said Jennings’ hard-charging management style didn’t mesh with the approach preferred by Chris Hunt, the chief executive of parent company Hunt Cos. Jennings, a former Jefferies executive who arrived at Hunt Financial less than a...



The Grapevine

Fri, 23 Feb 2018
Moody’s has appointed an insider to oversee ratings of bonds backed by corporate assets, including securities underpinned by equipment leases, whole-business cashflows, cellular-tower payments, solar-equipment leases and transportation-related receivables. Yian Ning Loh, an associate managing director, will transfer from Hong Kong to New York to assume the post on April 1 under managing director Jian Hu. He replaces Luisa De Gaetano, who...



The Grapevine

Fri, 23 Feb 2018
Collateralized loan obligation-structuring specialist Adam Schwartz left BNP Paribas this week to re-join Morgan Stanley as an executive director. Schwartz joined BNP in 2016 from Morgan Stanley, where he had been employed since 2003.



The Grapevine

Fri, 23 Feb 2018
Pretium Partners added an analyst to its collateralized loan obligation-issuing unit this week. Sajedur Rahman comes to the New York operation from RBC’s leveraged-finance division, where he worked since 2015. Rahman previously spent time at Morgan Stanley, Moody’s, Entrust Capital, PricewaterhouseCoopers and Ernst & Young. Pretium entered the CLO business with its 2017 purchase of Valcour...



The Grapevine

Fri, 23 Feb 2018
DLA Piper is adding a senior attorney to its securitization practice in New York. Eric Peterman arrived Feb. 19 from Weil Gotshal, where he worked since 2002 with a focus on collateralized loan obligations. Peterman previously spent time at Fried Frank.



The Grapevine

Fri, 23 Feb 2018
Loan-data company DV01 expects to hire a half-dozen employees in the next six months, after bringing its headcount to 34 with the additions of four staffers already this year. The growth reflects an increase in the New York operation’s client base, which consists mostly of companies involved in marketplace-originated personal loans and related bonds. And after conducting a pilot program with two banks, it plans to track mortgage products....



S&P Cuts Staff in Structured-Finance Unit

Fri, 16 Feb 2018
S&P this week laid off more than a dozen executives from its structured-finance division.The cuts, which the agency said were aimed at streamlining the unit, affected senior staffers in the U.S. and Europe, including some who had been with the company for more than 20 years.Among those shown the door: Felix Herrera, chief credit officer for structured finance; Philip Galgano, who oversaw ratings of asset-backed commercial paper; Belinda Ghetti,...



Free-for-All Follows Dodd-Frank Decision

Fri, 16 Feb 2018
With collateralized loan obligations now exempt from the Dodd-Frank Act’s risk-retention rule, issuers of asset- and mortgage-backed securities are scrambling to gain similar treatment.At the core of their efforts is the reasoning behind the U.S. Appeals Court’s Feb. 9 ruling that CLOs should be spared from the skin-in-the-game requirement: that the issuers buy the deals’ underlying receivables, as opposed to originating them (see article...



Bonds Favored for Sallie's Personal Loans

Fri, 16 Feb 2018
Sallie Mae Bank increasingly is looking like a candidate to issue personal-loan securities.Industry participants are envisioning an initial bond sale of $500 million to $1 billion that would hit the market late this year. The underlying accounts would consist mainly of marketplace loans that the Newark, Del., operation has been buying from Lending Club.Sallie began accumulating personal loans in significant volumes during the second half of 2017,...



Bonds at Center of Pimco RPL Push

Fri, 16 Feb 2018
Pimco is buying portfolios of reperforming mortgages, with plans to package them into bonds that its investment funds would retain.The effort quietly launched a few weeks ago with the purchase of a $2 billion pool of reperformers from Wells Fargo, which has been working to reduce its holdings of those accounts. Goldman Sachs represented Pimco in that transaction.The next step is for Goldman to help the Newport Beach, Calif., firm securitize the...



UK Deals Remain Scant in US

Fri, 16 Feb 2018
The inclusion of dollar-denominated tranches in two recent U.K. mortgage securitizations is raising hopes among U.S. investors that European issuers will begin marketing more deals in the States.A $704.8 million offering that Clydesdale Bank priced on Jan. 24 included a $300 million chunk denominated in dollars. Nationwide Building Society also was marketing a deal of unknown size in New York this week.During all of 2017, U.K. mortgage lenders...



Lenders Opt for Certificate Sales

Fri, 16 Feb 2018
Lending Club and Upgrade are adding a tool to their personal-loan distribution strategies.The efforts involve offerings of unrated pass-through certificates tied to the companies’ loan pools, as opposed to direct sales of the marketplace-originated accounts. Sources said Lending Club issued its first such certificates in January, possibly with help from Goldman Sachs. Upgrade completed an initial offering in December with assistance from...



Equipment Lender Adds to Calendar

Fri, 16 Feb 2018
Equipment-finance company Commercial Credit Group is planning a second securitization for this year.The Charlotte company had come to market once per year since launching its asset-backed bond program in 2012, always in the second or third quarter. But after completing a $305.7 million transaction on Feb. 5, it has signaled plans to return with a fourth-quarter offering.BMO Capital, J.P. Morgan and Wells Fargo are expected to run the books, as...



GM Readies Subprime-Loan Deal

Fri, 16 Feb 2018
General Motors Financial is preparing a subprime-auto-loan securitization.The deal, expected to price in the next few weeks, will be in excess of $1 billion. Its top class will carry triple-A ratings from Moody’s and S&P. To structure and distribute its deals, GM Financial relies on a pool of bookrunners including Barclays, Citigroup, Deutsche Bank, J.P. Morgan, RBC and Wells Fargo.The planned offering will come on the heels of a $1.25...



No Surge Seen From CLO Ruling

Fri, 16 Feb 2018
Collateralized loan obligation issuers are downplaying the potential that their newfound exemption from the Dodd-Frank Act’s risk-retention rule will bring a near-term jump in deal volume.Ever since the Loan Syndications and Trading Association challenged the regulation by suing the Federal Reserve and SEC in U.S. Appeals Court in Washington in 2014, the talk was that a decision in the trade group’s favor would lure more issuers into...



The Grapevine

Fri, 16 Feb 2018
Christopher Choate will retire from his post as chief financial officer at General Motors Financial on April 2. Choate joined the Fort Worth, Texas, office of the General Motors unit via its 2010 takeover of subprime auto lender AmeriCredit Financial, where he started in 1991 and became CFO in 2005. Before that, he was at Jones Day. GM Financial treasurer Susan Sheffield will take over his post, with Richard Gokenbach assuming her duties. GM...



The Grapevine

Fri, 16 Feb 2018
Morningstar has elevated Rohit Bharill to head of asset-backed securities ratings while placing Kevin Dwyer in charge of grading mortgage bonds. Bharill and Dwyer previously worked within those units under Brian Grow, who was promoted from managing director to president on Feb. 13. Bharill joined Morningstar from Moody’s in 2015. Dwyer arrived from Allonhill in...



The Grapevine

Fri, 16 Feb 2018
Pretium Partners’ collateralized loan obligation management unit has hired an analyst. Jack Palma started at the New York operation this week. He had been at Fifth Street Asset Management, a CLO issuer, since May. He also has spent time at Natixis, Credit Suisse and Paul Hastings. Pretium entered the CLO business with its 2017 purchase of issuer Valcour Capital. On Feb. 12, it priced a $458 million under that firm’s Crown Point CLO...



The Grapevine

Fri, 16 Feb 2018
Moody’s has two job openings. One is for a lead analyst who would develop cashflow models and analyze documents for collateralized loan obligations. The other would be an analyst covering deals backed by auto loans, dealer-floorplan loans and private student loans. Both New York-based positions require experience in structured finance. Candidates can apply at moodys.com by clicking on “careers” and entering job number 12128BR or...



The Grapevine

Fri, 16 Feb 2018
Sales specialist Matthew Giammarinaro started this week in Piper Jaffray’s Charlotte office. Giammarinaro previously covered mortgage bonds at Janney Montgomery Scott, which he joined in 2016 after stops at RBC, the Federal Housing Finance Agency, Bank of America, 400 Capital, Merrill Lynch, Countrywide and Legg Mason.



The Grapevine

Fri, 16 Feb 2018
Personal lender Affirm is seeking a capital-markets staffer. The recruit’s duties would include aiding in the development of a securitization program that the San Francisco firm has been planning under capital-markets head Zara Ivanova, who arrived last year from education lender Earnest. Affirm is focusing on candidates with one to four years of experience. The firm is led by PayPal co-founder Max...



The Grapevine

Fri, 16 Feb 2018
Hunton & Williams is seeking an associate. The recruit would work in New York, representing a mix of parties involved in asset- and mortgage-backed bond issues. Candidates can apply at hunton.com by clicking on “careers” and entering job number 17-0262.



The Grapevine

Fri, 16 Feb 2018
Financial-engineering firm Thomas Ho Co. has hired a head of whole-loan trading. As a managing director at the New York operation, Udoma Onwuachi covers a mix of products including home loans, auto loans and commercial mortgages. Onwuachi had been employed at Mortgage Industry Advisory Corp. since February 2017. He also has worked at Anigriv and Intercontinental...



The Grapevine

Fri, 16 Feb 2018
Hedge fund operator Hudson Cove Capital has recruited a head of business development and investor relations. Constance Sng joined the Jersey City, N.J., firm in January from Moore Capital, where she was employed since 2009. Sng also has worked at Satellite Asset Management, Credit Suisse Asset Management, Citigroup Asset Management and Standard Chartered Bank. Hudson also is looking for an investment analyst with 2-5 years of experience....



SFIG Adding Headliner Conference in DC

Fri, 09 Feb 2018
The Structured Finance Industry Group is planning a main-event conference that would take place on the heels of Information Management Network’s “ABS East” gathering.“SFIG DC” is scheduled for Sept. 30-Oct. 2 at the Marriott Wardman Park hotel in Washington. ABS East, meanwhile, is set for Sept. 17-19 at the Fontainebleau in Miami Beach.With two major back-to-back conferences geared toward the same audience,...



Citi Developing Non-QM Issuance Program

Fri, 09 Feb 2018
Citigroup is poised to securitize home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” guidelines.Sources said Citi has begun aggregating non-qualified mortgages originated by other lenders, with the timing and size of a debut bond offering dependent on the pace of that effort. But the first deal is expected to hit the market sometime in the second half, after which the bank would...



Ranieri Backs Clayton Alumni's Venture

Fri, 09 Feb 2018
Lewis Ranieri’s Selene Holdings is backing a new due-diligence business.The New York operation, New Diligence Advisors, initially is focusing on reviewing home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards. It also is covering nonperforming and reperforming accounts.Working with Ranieri are Mark Hughes, Tom Donatacci and Ann Gibbons. Hughes, a former Clayton Holdings...



Demand Deepens in CLO Sector

Fri, 09 Feb 2018
(SEE CORRECTION BELOW) U.S. investors’ appetites for collateralized loan obligations remain on the rise. In a continuation of a long-running trend, early 2018 has seen growing demand for CLOs both from existing investors and newcomers. Asset managers in particular have drawn attention, with firms including Elliott Management and GoldenTree Asset Management resuming buy-side activities after prolonged absences. Equity buyer Eagle Point Credit...



Non-QM Deals Beckon for REIT

Fri, 09 Feb 2018
New Residential Investment is looking at securitization to fund a non-qualified mortgage business that it will inherit with its purchase of Shellpoint Mortgage.New Residential agreed to the acquisition in November and is due to close by midyear. The expectation is that before yearend, it would complete its first bond offering backed by non-qualified loans — that is, accounts that don’t meet the Consumer Financial Protection...



Kroll Chases CLO-Rating Work

Fri, 09 Feb 2018
Kroll is expanding its collateralized loan obligation rating business to encompass deals backed by leveraged loans, at a time of already-increasing competition among its peers.Sources said the agency is about to hire a senior official to oversee the effort from New York, with more staff additions likely to follow. The initiative would involve deals backed by loans to both large and mid-size companies.Kroll’s CLO-rating activities to date...



Ellington Pitching Debt Fund

Fri, 09 Feb 2018
Ellington Management is assembling a fund that would invest in an array of loans and structured products.The Old Greenwich, Conn., firm started marketing its Ellington Private Opportunities Fund 2 in January with a $300 million capital-raising goal. It plans to deploy the capital, in part, by taking advantage of opportunities that are too small for banks and large asset managers while capitalizing on deleveraging efforts among major financial...



Tetragon Adding to CLO Holdings

Fri, 09 Feb 2018
Tetragon Credit is marketing the latest entry in its collateralized loan obligation fund series.The New York unit of Tetragon Financial hopes to raise $500 million to $600 million for the vehicle, Tetragon Credit Income 3. It plans to use the money mainly to buy equity in CLOs issued by affiliate LCM Asset Management and other shops, thus helping them comply with the Dodd-Frank Act’s risk-retention rule.The fund would have the flexibility...



Investors Fear Fallout From Ally Move

Fri, 09 Feb 2018
Ally Financial’s retreat from the asset-backed bond market could deprive investors of deals from other issuers as well.How so? While it’s been clear for some time that Ally intends to rely increasingly on deposits to fund its own lending activities, the Detroit company recently has inked deals with other auto lenders under which it is drawing on its massive deposit base to supply “permanent financing.” So far, it has...



Weak Start for Auto-Loan Pools

Fri, 09 Feb 2018
Losses among securitized pools of prime-quality auto loans worsened during the month ended Jan. 15.According to an index maintained by Fitch, those accounts saw losses rise 11 bp to an annualized 0.78%. That’s the second-highest reading since 2011, trailing only the February 2017 figure of 0.80%. Prime-loan delinquencies also ticked up, increasing 2 bp to 0.41%. Among subprime pools, losses jumped 66 bp to an annualized 9.66% and...



Issuers, Buyers Take Turmoil in Stride

Fri, 09 Feb 2018
Structured-product issuers and investors largely shrugged off volatility that roiled the stock market in the past week.While the Dow Jones Industrial Average posted its steepest one-day point drop on Feb. 5, and swung by triple- and quadruple digits the rest of the week, issuers showed no hesitation selling asset-backed securities, mortgage bonds and collateralized loan obligations. Indeed, from Feb. 5-8, U.S. structured-product issuance totaled...



Erosion Seen in Europe CLOs

Fri, 09 Feb 2018
Asset quality dipped in November for collateralized loan obligations issued in Europe after the credit crisis, nearly erasing gains made in October.The median weighted average rating factor, a key indicator of borrower health, worsened by 18 points to 2705 among those deals, according to an index maintained by Moody’s. That’s the equivalent of a “B1” rating. The figure had improved by 16 points the prior month. Analyst...



The Grapevine

Fri, 09 Feb 2018
William Jennings is leaving his job as president of Hunt Financial Securities. The abrupt exit comes three months after Jennings ascended to his most recent post — and less than a year after he arrived at the Rye Brook, N.Y., brokerage firm with the mission of overseeing a large-scale staff buildup. Jennings was pushed out of prior employer Jefferies in February 2014 as a result of the U.S. Justice Department’s crackdown on improper...



The Grapevine

Fri, 09 Feb 2018
Pessimism surrounding Harley-Davidson’s prospects as an asset-backed bond issuer is growing. Having already written off the possibility of a near-term offering, industry participants now expect the Milwaukee motorcycle maker to remain out of the market indefinitely. The reason: Harley said on Feb. 2 that its U.S. sales dropped 11% during the fourth quarter, continuing a long decline that has left it short on potential bond collateral....



The Grapevine

Fri, 09 Feb 2018
MetLife has added an associate to its asset-backed bond investment team in New York. Andrew Butville most recently was a lead analyst on a Moody’s team that rates securitizations of unusual cashflows. He started there in 2013, following stops at Banco Santander and Milbank Tweed.



The Grapevine

Fri, 09 Feb 2018
Joshua Tatum has left his post as head of business development for Social Finance’s mortgage-lending arm to become a general manager in the home-loan development group at Guaranteed Rate of San Francisco. Tatum, a longtime mortgage-industry professional, had been at SoFi since 2016. His arrival at Guaranteed Rate came as the firm also hired former S&P executive Diane...



The Grapevine

Fri, 09 Feb 2018
Director Emile Ernandez was caught in a round of layoffs at Barclays in late January. Ernandez originated and structured deals backed by unusual cashflows in the bank’s New York office, which he joined in 2011 from Deutsche Bank.



The Grapevine

Fri, 09 Feb 2018
Peter Heintz started this week as head of business development at consulting firm Opus Capital. Heintz most recently helped oversee home-loan acquisitions at mortgage-bond issuer Shelter Growth Capital, where he started in 2013. He also has worked at Clear Capital, NewOak Capital, UBS, Winter Group and Clayton Holdings. Opus, of Lincolnshire, Ill., performs due-diligence services for mortgage...



The Grapevine

Fri, 09 Feb 2018
The timeline for a retrial of former Nomura traders Michael Gramins and Ross Shapiro on securities fraud charges continues to shift. With the proceedings already delayed from Jan. 29 to May 8, defense attorneys said in a Feb. 1 letter to U.S. District Court Judge Robert Chatigny in Hartford that Justice Department officials had agreed to a postponement to July 16. That’s because the matter otherwise could overlap with a similar trial...