Article List

Delinquencies Unravel OnDeck Transactions

Fri, 10 Jul 2020
Coronavirus-related pressures have placed OnDeck Capital’s two most recent securitizations in danger of defaulting.Both offerings — a $125 million issue that priced in November 2019 and a $225 million transaction from April 2018 — have experienced high-enough delinquencies among their underlying small-business loans to push them into early amortization and initially divert payments to senior bondholders. Continued asset...



Citizens Reappears in Auto-Loan Pipeline

Fri, 10 Jul 2020
A long-delayed plan by Citizens Financial to begin issuing auto-loan bonds appears to be regaining momentum.Officials from the Providence, R.I., bank’s treasury department resumed preliminary discussions with investors in recent weeks. Their mission: to gauge interest in an initial offering approaching $1 billion that could hit the market in early 2021.Citizens’ preparations also included the June creation of an opening for a...



Bank Warehousers Pinch Personal Lenders

Fri, 10 Jul 2020
In yet another coronavirus-related blow to online personal-loan originators, banks have jacked up the amounts they charge those operations to accumulate assets for securitization.Sources have identified Citigroup, Credit Suisse and Jefferies as being among major warehouse lenders to have made such moves, with each institution hiking interest rates for new financing facilities while also offering less up-front capital to clients in the sector.The...



FHFA Puts Market on Defensive

Fri, 10 Jul 2020
Mortgage-finance professionals aren’t ready to concede that the Federal Housing Finance Agency’s proposed capital requirements for Fannie Mae and Freddie Mac will stop the mortgage agencies from selling risk-transfer securities.The suggested rules, released May 20, include a component that would require Fannie and Freddie to reserve amounts equal to at least 4% of the assets on their balance sheets regardless of how much risk they...



Forbearance Crush Keeps Growing

Fri, 10 Jul 2020
Subprime-mortgage delinquencies continue to set records, with nearly 40% of borrowers 30 or 60 days past due.According to an index maintained by Kroll, May remittance reports showed a 363 bp jump in 30-day delinquencies to an all-time high of 23.03%. And 60-day delinquencies were up 1088 bp to 15.68%. The tidal wave of arrears largely is the result of forbearance requests from borrowers facing economic strains amid the coronavirus crisis. Unlike...



Mortgage Pros Laud Court Decision

Fri, 10 Jul 2020
Securitization professionals are expressing support for the idea that the job of Federal Housing Finance Agency head Mark Calabria could be in jeopardy.Soon after the U.S. Supreme Court ruled on June 29 that the Consumer Financial Protection Bureau’s leadership structure is unconstitutional, reports began swirling that the decision also could expose FHFA director Calabria to removal.Within the structured-finance industry, meanwhile, there...



Virus Jitters Pump Up Issuance

Fri, 10 Jul 2020
Fears surrounding the coronavirus pandemic are having the opposite effect on securitization volume than they did at the beginning of the crisis.Bankers were chattering this week about a clump of planned offerings from issuers who want to lock in funding right away. Their reasoning is that while conditions are favorable for the time being, the market might reprise its March lockdown if a recent increase in virus cases continues.“I expect...



Gains Suggest Trouble for Autos

Fri, 10 Jul 2020
In a seemingly contrarian trend, performance data for securitized auto-loan pools improved during the month ended June 15.According to an index maintained by Fitch, losses among subprime loans fell 258 bp for the month to an annualized 6.64% while delinquencies in the category dropped 64 bp to 3.81%, the lowest figure since May 2016. Prime-quality loans saw losses drop 19 bp to an annualized 0.37% with delinquencies falling 2 bp to 0.25%, just...



Sunrun Maneuver Bullish for ABS

Fri, 10 Jul 2020
A combined Sunrun and Vivint could issue more asset-backed bonds than the companies have been selling as separate entities.Sunrun agreed on July 6 to buy Vivint in an all-stock transaction designed to cut costs and improve the operations’ economies of scale. When it comes to securitization, the thought is that an ability to pool larger volumes of assets would result in lower funding costs and thus create motivation for an increase in bond...



US Bank Steady Atop Trustee Table

Fri, 10 Jul 2020
U.S. Bank held on to its position as the most active trustee in the first half of 2020.The bank again was the leader in the combined market for U.S. asset- and mortgage-backed bonds, working on $44.3 billion of new offerings for a 32.3% market share. It also retained its top position for collateralized loan obligations worldwide, appearing on $24.7 billion of deals for a 47.2% market share, according to Asset-Backed Alert’s ABS database.In...



S&P Maintains League-Table Crown

Fri, 10 Jul 2020
Amid a big drop in issuance, S&P continued to rate more U.S. asset- and mortgage-backed bonds than its competitors in the first half.S&P, which has been atop the rating-agency league table since 2012, actually saw its market share increase slightly during the slump triggered by the coronavirus pandemic. The agency finished the first half with assignments on 114 deals totaling $77.5 billion, good for a 56.6% market share, according to Asset-Backed...



Law Firms In Flux as Issuance Slows

Fri, 10 Jul 2020
Broad market disruptions led to wide disparities in the abilities of law firms to attract and retain securitization-related businesses during the first half of 2020.The biggest players in the sector held on to their top spots, however, with Sidley Austin ranking as the busiest underwriter counsel in the U.S. asset- and mortgage-backed bond market and Mayer Brown representing more issuers than any of its peers.Overall, 256 new offerings totaling...



THE GRAPEVINE

Fri, 10 Jul 2020
Veteran asset-backed securities trader Manish Peshawaria resurfaced this week at SMBC Nikko. He’s stationed in the bank’s London office as an executive director, heading asset-backed bond trading in Europe, the Middle East and Africa. Peshawaria was most recently in a similar post at Wells Fargo from 2010 to May 2019. His former employers also include Knight Libertas, Tullett Prebon, Calyon, Commerzbank and Abbey...



THE GRAPEVINE

Fri, 10 Jul 2020
Angel Oak Mortgage and Sprout Mortgage are among the mortgage lenders that took part in the federal government’s Paycheck Protection Program. Angel Oak, which on June 26 completed a $476.8 million securitization backed by loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards, received between $2 million and $5 million of PPP funds, while Sprout, the largest originator of...



THE GRAPEVINE

Fri, 10 Jul 2020
Buy-side specialist David Lehman is no longer working at Medalist Partners. Lehman, whose coverage areas included mortgage products, had joined the New York hedge fund shop via its 2018 split from previous employer Candlewood Investment. Before that, he evaluated troubled home loans at Hudson Advisors. He also took a few consulting gigs after the 2007-2008 market crash, prior to which he worked mostly as a mortgage-bond trader at shops including...



THE GRAPEVINE

Fri, 10 Jul 2020
Former Morgan Stanley executive Frank Pallotta appears on track to win the Republican nomination for a New Jersey congressional seat. While votes from the July 7 primary are still under review, a victory would allow Pallotta to face off against incumbent Democrat Josh Gottheimer for a U.S. House of Representatives seat once held by Republican Scott Garrett, a longtime ally of the securitization industry. From 2003 to 2008, Pallotta co-headed a...



THE GRAPEVINE

Fri, 10 Jul 2020
WSFS has decided against replacing Louis Geibel as head of its trust division. Instead, the Wilmington, Del., bank is interviewing candidates to fill the newly created role of business-development officer. Geibel, whose role included oversight of both corporate-trust activities and services for special-purpose entities, had been on board since 1999. He left in June to become head of sales at San Diego loan servicer Vervent. He replaces co-founder...



THE GRAPEVINE

Fri, 10 Jul 2020
A business-development specialist with ties to the structured-finance industry joined Fort Washington Investment last week as a vice president tasked with expanding the Cincinnati firm’s institutional-investor base in the U.S. Jeffrey Pettiford, who is based in Chicago, had been working since 2014 at Window Rock Capital, a hedge fund operator whose investments include mortgage bonds. Window Rock also owns home-loan originator Ventana Home...



THE GRAPEVINE

Fri, 10 Jul 2020
The equipment finance-division of Wintrust Financial is seeking a head of capital markets. The recruit, to be based in Frisco, Texas, would fill a senior vice president slot. Duties include managing the origination of loans and leases from intermediaries and expanding the syndication and distribution of transactions to investors. Candidates should have at least 10 years of experience. To apply, click on “careers” at wintrust.com and...



Dealmaking Down After First-Half Collapse

Fri, 03 Jul 2020
It’s looking increasingly likely that the flow of new structured-product offerings won’t fully resume until well into 2021.After a complete issuance shutdown that accompanied the beginning of the coronavirus crisis in March, new-deal supply has returned only gradually. The result: The worldwide total of asset-backed bonds, collateralized loan obligations, residential mortgage securities and commercial mortgage paper issued during the...



Worries Pile Up for Borrower Performance

Fri, 03 Jul 2020
Consumer-finance professionals are suddenly recognizing the possibility that the federal government will halt expanded unemployment benefits in the coming weeks, a move that could carry serious consequences for the performance of securitized assets.The subsidies, created under the Cares Act, provide up to $600 of additional benefits for out-of-work individuals each week. They have played a crucial role in propping up economic activity amid...



Property Lender Bets on TALF Expansion

Fri, 03 Jul 2020
Commercial-property lender Monticello Asset Management is planning a structured-product investment program with a twist.Like the managers of many newly forming vehicles, Monticello aims to finance its purchases with a combination of investor capital and leverage from the Federal Reserve’s Term Asset-Backed Securities Loan Facility. But the New York firm is taking aim at securities that don’t currently qualify for use in the emergency...



REITs Bail on Risk-Transfer Deals

Fri, 03 Jul 2020
Mortgage REITs are reducing their holdings of risk-transfer securities issued by Fannie Mae and Freddie Mac.Among others, Angelo, Gordon & Co.’s AG Mortgage Investment, Invesco Mortgage Capital and MFA Financial have halted purchases of the instruments on the new-issue and secondary markets while liquidating large portions of their existing positions. The selloff began a few months ago.The maneuvers are tied to broader moves by REITs to...



CRT Sector in Recovery Mode

Fri, 03 Jul 2020
The first risk-transfer securitizations to price since the onset of the coronavirus crisis showed that investor demand for such offerings is healthy but hasn’t fully recovered.On the one hand, the general sense is that the deals, from Arch Capital and Freddie Mac, demonstrate that the market is again open for business. On the other hand, mortgage insurers in particular don’t yet see the environment as strong enough to support a major...



More Sluggishness Seen for CLOs

Fri, 03 Jul 2020
With corporate-loan downgrades waning, the worst effects of the coronavirus crisis may have passed for the collateralized loan obligation market.But loan-origination trends suggest issuance volume in the sector may be slow to pick up, with industry participants predicting that the full-year supply of deals backed by mid-size and broadly syndicated loans in the U.S. may be as low as $50 billion. That would mark a 59% drop from the 2019 total of...



AllianceBernstein Joins TALF Pool

Fri, 03 Jul 2020
AllianceBernstein has started a hedge fund that aims to invest in structured products with financing from the Federal Reserve’s Term Asset-Backed Securities Loan facility.The New York firm set up its AB TALF Opportunity 2020 Delaware Fund and a Cayman Islands companion last month with $221 million, according to sister publication Hedge Fund Alert.The effort places AllianceBernstein among more than 15 firms that have considered assembling...



CLO Issuers Skip Fee Collections

Fri, 03 Jul 2020
Many collateralized loan obligation managers are forgoing their second-quarter fees.The idea is to build larger cash stockpiles that the firms could deploy via upcoming restructurings of their underlying loans. While issuers have been exploring several new ways to participate in borrower workouts, this is one arrow most already have in their quivers.In fact, some of the firms already diverted their first-quarter fees.But more are expected to have...



JP Morgan Surges as Citi Lags

Fri, 03 Jul 2020
A few big issuers are playing outsized roles in shaping this year’s structured-product bookrunner rankings.To be sure, almost every major underwriter lost business over the first half of 2020 as the coronavirus pandemic halted the flow of fresh offerings. But some logged comparatively small declines while others shrank at above-market rates, leading to a reordering of their league-table standings.All told, $324.1 billion of new asset-backed...



Startup Bolsters Non-QM Offering

Fri, 03 Jul 2020
Vista Point Mortgage’s debut securitization was backed in part by a large batch of loans from a new originator.TheLender wrote 40% of the loans in the $398 million Vista Point offering, which priced June 24 via bookrunner Credit Suisse.The deal, in the pipeline for more than a year, kicks off what Vista Point expects to be a routine issuance program. The Irvine, Calif., investment firm was founded in 2018 by William Ashmore, who earlier...



The Grapevine

Fri, 03 Jul 2020
Barbara Lambotte left her post as a senior vice president at small-business lender OnDeck Capital a few days ago. Lambotte helped oversee risk analysis, loan pricing and asset-backed bond issuance at OnDeck. She joined the New York company in 2016 following a stint at Social Finance. Lambotte also has worked at Moody’s and J.P. Morgan. OnDeck has completed four securitizations totaling $775 million since entering the market in...



The Grapevine

Fri, 03 Jul 2020
StoneX Group, formerly known as INTL FCStone, plans to hire 10 sales and trading professionals in the coming months amid an ongoing effort to enter the structured-product market. Among those already on board is former Bank of America executive Grant Garcia as head of structured-product sales. Word of the further additions follows the hiring last month of Brian Vescio, formerly of Piper Sandler, Nomura, Deutsche Bank and ING, to oversee the...



The Grapevine

Fri, 03 Jul 2020
Aashish Marfatia resurfaced this week at Verition Fund Management. He’s a portfolio manager at the Greenwich, Conn., multi-strategy firm. Marfatia most recently headed mortgage-bond trading at LibreMax Capital, which he left in April. Before that, he was a senior mortgage-bond trader at Prosiris Capital. Marfatia also has logged time at Perry Capital, Credit Suisse, Moody’s, Capital One and...



The Grapevine

Fri, 03 Jul 2020
Adam Goldberg has joined debt-fund operator Kennedy Lewis Investment as a director responsible for analyzing securitized products, mortgage-servicing rights and residential whole loans. He arrived a few weeks ago from EJF Capital. Goldberg also has worked at ABGS, Grander and Seneca Mortgage.



The Grapevine

Fri, 03 Jul 2020
Several members of Societe Generale’s New York securitization team are returning to the office after months of coronavirus-induced lockdowns. The employees are coming back voluntarily under conditions that include temperature checks, elevator limits of four people per car and the mandatory use of masks. Other banks, including Goldman Sachs and J.P. Morgan, are taking similar measures. While some firms have operated with skeleton staffs...



The Grapevine

Fri, 03 Jul 2020
Mizuho has hired a salesman for its asset- and mortgage-backed bond group. PJ Farrell joined the bank’s New York office last month. Farrell most recently worked in a similar role at BNP Paribas from 2013 to 2019. Before that, he sold bonds at UBS.



The Grapevine

Fri, 03 Jul 2020
MetLife is looking for a director-level professional to help oversee its portfolio of home loans. The post previously was occupied by Arnold Cohn, who joined Toorak Capital as an associate partner last month. The recruit would oversee a team of staffers within a broader whole-loan trading unit. Candidates should have at least 10 years of experience.



The Grapevine

Fri, 03 Jul 2020
MUFG is seeking a risk manager for its securitizations, with a focus on underwriting and managing credit exposure within existing portfolios and for new offerings. Candidates must have five years of experience. The position is based in New York.



Natixis Launches Mortgage-Finance Effort

Fri, 26 Jun 2020
Natixis is entering the business of underwriting private-label mortgage securities in the U.S.Staffers in the Paris institution’s New York office recently began pitching origination, structuring, trading and distribution services to issuers in the sector. They also are offering an undisclosed amount of financing via warehouse lines and repurchase facilities.Natixis’ targeted offering types include deals backed by prime-quality jumbo...



Originators Reposition as Payments Sputter

Fri, 26 Jun 2020
A divergence is occurring in the market for securities backed by online personal loans.On the one hand, concerns about the impacts of the coronavirus crisis are deepening as originators grant additional payment holidays to borrowers already in forbearance. On the other hand, several major lenders have begun accumulating fresh pools of stronger loans — a refocusing that could aid the market’s health.Those operations, including Lending...



Brigade Proposes Rescue-Capital Injections

Fri, 26 Jun 2020
Brigade Capital is asking investors in its collateralized loan obligations for permission to pump more money into struggling companies whose debts already are in the deals’ portfolios.The request, which would apply only to the New York firm’s U.S. transactions, adds to a growing debate in the CLO sector. As the coronavirus crisis has weighed on many companies’ financial standings, those operations increasingly have asked lenders...



Paperwork Keeping TALF at Bay

Fri, 26 Jun 2020
The odds that the Federal Reserve’s Term Asset-Backed Securities Loan Facility will attract robust investor participation continue to dim.Already turned off by a lack of economic incentives, would-be investors increasingly are signaling an unwillingness to deal with the paperwork needed to tap the emergency program. “You can’t just sign up anybody,” one banker said. “And then there is the added cost for...



Aircraft-Lease Recovery Stalls

Fri, 26 Jun 2020
A dramatic surge in coronavirus cases has snapped a rally among bonds backed by aircraft leases.Secondary-market values for the securities had been gradually improving since mid-April as global air travel picked up. In recent weeks, however, the recovery stalled amid soaring infections in southern and western states.On June 24, the U.S. reported nearly 37,000 positive tests, the most in a single day since the outbreak began. Europe, too, has seen...



Market Vets Map Investment Effort

Fri, 26 Jun 2020
A new fund-management shop is setting up a vehicle keyed to the Federal Reserve’s Term Asset-Backed Securities Loan Facility.Nathan Baruch, Mark Hemmann and Sanjeev Khurana teamed up this month to form Akkadian Investment. The Haverford, Pa., operation’s core strategy at the outset is to raise investor capital that it would combine with TALF loans to buy asset-backed bonds, collateralized loan obligations and commercial mortgage...



Trust Tool to Aid Aircraft Deals

Fri, 26 Jun 2020
A new online tool that promises to streamline trading and financing of aircraft also could make it easier for lessors in the sector to warehouse receivables for securitization and manage existing bond collateral.Aviation Working Group’s Global Aircraft Trading System, which went live on June 1, mainly aims to ease the increasingly common practice of selling aircraft that are under lease. Typically, such exchanges require the reassignment of...



Freddie Resumes CRT Flow

Fri, 26 Jun 2020
Details are emerging about Freddie Mac’s first offering of risk-transfer bonds since the beginning of the coronavirus pandemic.Bank of America and Barclays are running the books on the $555 million deal, Structured Agency Credit Risk Remic Trust, 2020-DNA3. S&P and Fitch are rating the bonds.The transaction, expected to price next week, comes as the values of risk-transfer securities are rising amid easing concerns about borrower...



Servicers Gain Breathing Room

Fri, 26 Jun 2020
Mortgage-bond issuers are adding servicer protections to new deals amid uncertainty about how long borrowers will remain in forbearance due to continued job losses and lockdowns caused by the coronavirus pandemic.Among the provisions is language specifying that servicers aren’t required to advance principal and interest payments for loans receiving payment holidays. The issuers additionally are creating more flexibility for servicers to...



EJF Eyeing Cheap Mortgage Bonds

Fri, 26 Jun 2020
EJF Capital is raising money for a hedge fund whose investments would include structured products.The vehicle, EJF Tactical Opportunities Fund, launched in April with a capital-raising goal of $500 million. It has so far attracted some $50 million.The fund aims to take advantage of fresh opportunities EJF sees in areas that remain unsettled from the coronavirus pandemic. On the structured-product side, those investments would include mortgage...



Affirm Ready for Issuance Debut

Fri, 26 Jun 2020
The first rated securitization from personal-loan originator Affirm is about to hit the market, with the company designating a class of zero-interest receivables as collateral.The offering, Affirm Asset Securitization Trust, 2020-Z1, has been in the pipeline since 2016. Barclays is running the books, with DBRS Morningstar assigning a yet-to-be-disclosed grade.The underlying loans are interest-free throughout their lives, which range from three...



The Grapevine

Fri, 26 Jun 2020
Alex Song left Sculptor Capital last month to join startup credit-card lender Ramp as head of capital markets. He arrives in a few weeks. Song had been at Sculptor, formerly known as Och-Ziff Capital, since 2018, working on a team that offers direct financing to small- and mid-size lenders and then often packages the receivables into bonds. Song also has worked at Crayhill Capital, Bain Capital Credit and Morgan Stanley. New York-based Ramp...



The Grapevine

Fri, 26 Jun 2020
Coronavirus-induced market disruptions have shaken up the rankings of structured-product bookrunners, but not to the extent that the biggest banks are surrendering much business to their smaller peers. Rather, with the worldwide year-to-date issuance total of $300 billion representing a near-30% decrease from a year ago, a reordering has occurred within each underwriting tier. At the top, J.P. Morgan is the runaway midyear leader with some $45...



The Grapevine

Fri, 26 Jun 2020
Asset-backed bond trader Jordan Chirico is leaving New York credit-product investor Brigade Capital. His next move is unknown. Chirico joined Brigade in 2017, working in its Indianapolis office, after trading bonds at Baird for nearly five years. That posting marked his second stop at the Milwaukee broker-dealer. He earlier worked there from 2008 to 2011. Chirico’s resume also includes jobs at Credit Suisse and Bank of...



The Grapevine

Fri, 26 Jun 2020
Social Finance has added a senior director to its capital-markets operation. David Knox started last week in the San Francisco lender’s New York office. Knox was most recently a director in the asset-backed finance group at Cantor Fitzgerald. Before that, he was at Hudson Advisors. Knox also has had stops RBS and Merrill Lynch. SoFi has brought four student-loan and personal-loan deals to market this year for a total of $2.8...



The Grapevine

Fri, 26 Jun 2020
A survey of market participants by law firm Davis & Gilbert found broad expectations that the performance of securitized subprime auto loans will continue to deteriorate. While that’s hardly surprising given the historic rise in joblessness, servicers and trustees were actually less negative on the asset class than they were at the outset of the coronavirus pandemic in March. The slightly less pessimistic view likely reflects a belief that...



The Grapevine

Fri, 26 Jun 2020
Wells Fargo is seeking a consultant to work on its securitization accounting and investor-reporting unit. The Charlotte-based position entails ensuring regulatory compliance, preparing SEC filings and maintaining accounting on securitization programs. Candidates must have four years of experience. To apply, click on “careers” at wellsfargo.com and search for job number...



The Grapevine

Fri, 26 Jun 2020
London-based research and analytics firm IHS Markit is looking for two valuation analysts — one senior, one junior — for its collateralized loan obligation pricing team in New York. Interested candidates should email resumes to Michael Mahoney at michael.mahoney@ihsmarkit.com.



Jitters Arise as CFPB Preps Policy Revision

Fri, 19 Jun 2020
A planned update to the Consumer Financial Protection Bureau’s “qualified-mortgage” rule is simultaneously coming into focus and creating uncertainty.Rumors were spreading this week that CFPB head Kathy Kraninger will soon unveil a plan that would expand the universe of qualified loans by raising the maximum debt-to-income ratio for those accounts to 47% from 43%. Coupled with the adjustment would be an apparent decision to move...



Virtual Conference Attendance Here to Stay

Fri, 19 Jun 2020
The virtual events that have replaced in-person conferences during the coronavirus crisis have become so popular that they likely will outlast the pandemic.With conference hosts including Information Management Network, Opal Group and the Structured Finance Association having called off or postponed all live events since widespread stay-at-home orders took effect in early March, each has quickly set up online events instead.The productions,...



Quicken IPO Spawns Bond-Issuing Push

Fri, 19 Jun 2020
As it prepares to go public, Quicken Loans is mapping a major increase in its jumbo-mortgage securitization volume.The Detroit company was quietly filling in bond investors about its plans this week, suggesting it could price more than $1 billion of fresh paper backed by its private-label home loans before yearend.CNBC reported on June 11 that Quicken had filed a confidential prospectus for an initial public offering that could raise tens of...



Storm-Damage Deal Materializing

Fri, 19 Jun 2020
Duke Energy is moving forward with a $1 billion-plus securitization of utility fees.The offering is expected to hit the market in early 2021. Charlotte-based Duke plans to use the proceeds to pay for repairs to two power-generation facilities, one in North Carolina and one in South Carolina, that were damaged by three hurricanes in 2018.The bonds would be backed by special fees added to customers’ monthly electricity bills.Duke has been...



Banks Undershoot Price Guidance

Fri, 19 Jun 2020
Asset-backed bond underwriters are struggling to predict accurate pricing levels for their new deals.The past few weeks have seen virtually all offerings price at spreads well inside those initially suggested by their managers, with this week’s guidance proving especially off the mark. “Bookrunners keep missing the target on guidance. In some cases, it’s shocking how far off they are,” one investor said.Take a $1 billion...



TALF Off to Lukewarm Start

Fri, 19 Jun 2020
Investors applied for $252.2 million of financing from the Federal Reserve’s Term Asset-Backed Securities Loan Facility on the program’s first day in operation.Of that amount, $145.2 million came in the form of requests for loans against commercial mortgage bonds. Another $56 million was tied to securities backed by insurance-premium loans, with the remaining $51 million coming from holders of paper underpinned by U.S. Small Business...



Mortgage REITs Eye Reperformers

Fri, 19 Jun 2020
Non-agency mortgage REITs, seeking to regain their footing after being pummeled by coronavirus-related margin calls, could soon start securitizing reperforming home loans.While still early in the process, a number of REIT operations including Angelo Gordon & Co., Chimera Investment and MFA Financial are looking at developing securitization programs specifically aimed at financing accounts that will require modifications to get them performing...



CLO Injections Gaining Favor

Fri, 19 Jun 2020
Slowing economic conditions are giving new life to discussions about granting collateralized loan obligations more flexibility to manage exposures to distressed businesses.At issue is a practice in which investors prop up troubled portfolio companies via equity injections or other maneuvers that are off-limits for CLOs, whose holdings typically are limited to loans. With those shops increasing their stakes in the underlying businesses, the...



Asset Downgrades Mount for CLOs

Fri, 19 Jun 2020
Collateralized loan obligations saw another round of sharp asset-quality deterioration in April as corporate-loan downgrades continued to take hold amid the coronavirus crisis.The median weighted average rating factor across CLOs rated by Moody’s deteriorated 348 points for the month to 3244, while median holdings of assets with “Caa” grades increased by three percentage points to 7.1% and median holdings of defaulted loans...



Securitization-Law Practice Forming

Fri, 19 Jun 2020
Law firm Barnes & Thornburg is building a securitization practice.The team is based in a New York office the Indianapolis firm opened this month. It initially aims to advise issuers of collateralized loan obligations and later sees itself handling a mix of tasks for asset- and mortgage-backed bond deals.The New York office employs 11 newly hired attorneys, some with limited structured-finance experience. Among them are partners Scott Beal and...



Student-Loan Retirements Catch On

Fri, 19 Jun 2020
Another education lender is attempting to retire two securitizations rather than face disruptions associated with changing their benchmarks when Libor phases out.Kentucky Higher Education Student Loan Corp. is offering to pay the deals’ investors full face value plus accrued interest on the redemption date. The state-backed organization is working with DealVector to identify the holders of the notes, which totaled $947.5 million upon...



The Grapevine

Fri, 19 Jun 2020
Victor Baev is no longer working at New York REIT Two Harbors Investment, where he oversaw investments in non-agency mortgage bonds. Baev’s departure last week follows the March 25 disclosure by Two Harbors that it had sold its portfolio of mortgage bonds to meet margin calls during the coronavirus-related market chaos. His plans are unknown. Baev previously served on the investment team at Two Harbors parent Pine River Capital, a...



The Grapevine

Fri, 19 Jun 2020
Market veteran Helen Zhou Remeza joined New York asset manager PineBridge Investments a few weeks ago as a senior vice president covering insurance-related investments. Remeza most recently covered a range of investments, including structured products, as a managing director at Fosun from 2015 to 2019. She also has worked at AIG, Moody’s, Credit Suisse and J.P....



The Grapevine

Fri, 19 Jun 2020
Arnold Cohn left MetLife this week to join Toorak Capital. He’s an associate principal at the Summit, N.J., shop, where he oversees investments in products including whole loans. Cohn had been a director at MetLife since 2018, overseeing its residential mortgage loan portfolio. Before that, he worked for two years as a consultant at Morgan Stanley. Cohn also logged time at Home Loan Servicing Solutions, UBS, First Financial, Walsh...



The Grapevine

Fri, 19 Jun 2020
Mike Giasi has joined data-analytics shop RiskSpan as director of sales for capital-markets products. The move reunites Giasi with Bill Moretti, a senior managing director who was among his colleagues during an earlier run at MetLife. The two are working to expand the client base for RiskSpan’s Edge Platform software, which is used for data management, risk management and loan and securities analytics. Giasi most recently worked at Samuel...



The Grapevine

Fri, 19 Jun 2020
Reverse-mortgage lender Longbridge Financial of Mahwah, N.J., is seeking a capital-markets analyst. Responsibilities include helping to develop loan-pricing frameworks, assisting in the structures of bonds backed by Ginnie Mae loans and quantifying the risk of Longbridge’s portfolio.



The Grapevine

Fri, 19 Jun 2020
Mortgage-evaluation shop Infinity IPS has added two senior vice presidents to its team. Jayson Dammen and Ryan Joseph both handle sales of Infinity’s due-diligence services. Dammen comes to the Toledo, Ohio, firm from Valuation Partners, where he worked since 2016. His former employers also include Prospect Mortgage and Armitage Research. Joseph previously worked at AOC Securities, GMAC, Mortgage Lenders Network and Sovereign...



The Grapevine

Fri, 19 Jun 2020
Goldman Sachs has added a structured-product analyst. Nataliya Nesterova started last week in the bank’s Dallas office, filling a vice president slot. Nesterova previously worked in a similar role at Mizuho since 2015, focusing on asset-backed securities.



The Grapevine

Fri, 19 Jun 2020
Five years after pleading guilty to a single count of fraud for overstating mortgage-bond prices to investors, former RBS trader Matthew Katke continues to await his sentencing. The holdup is tied to the resolution of another case in which Katke, as part of his plea deal, agreed to testify if called upon by federal prosecutors. That case involves former Nomura traders Michael Gramins and Ross Shapiro, who are seeking to have similar charges...



Delinquency Tidal Wave Slams Non-QMs

Fri, 12 Jun 2020
Nearly one in five subprime mortgages is past due.According an index maintained by Kroll, April remittance reports showed a staggering 1,275 bp increase in the volume of 30-day delinquencies across securitized pools of subprime home loans — to an all-time high of 19.40%.While industry participants were expecting a big increase due to hardships borrowers have faced amid the coronavirus crisis, the update represents something of a shock....



Slow Start, Longer Life Expected for TALF

Fri, 12 Jun 2020
A consensus is building that the Federal Reserve’s Term Asset-Backed Securities Loan facility will see little use at the outset.Industry participants aren’t ruling out the program’s potential utility, however, and are suggesting it can serve both as a market backstop today and as a source of liquidity should a second or third coronavirus wave cause conditions to deteriorate later. To that end, some are suggesting that the...



Crisis Pushes Non-QM Shops Into Jumbos

Fri, 12 Jun 2020
Several mortgage originators are looking at securitization to fund jumbo-loan products they are developing.In each case, the accounts would adhere to the Consumer Financial Protection Bureau’s “qualified-mortgage” guidelines. But they are coming from companies that are better known for writing non-qualified loans, including Angel Oak Mortgage, New Residential Investment, Reliant Bank and Sprout Mortgage.Some of the shops would...



Utilities Eye Bonds to Offset Losses

Fri, 12 Jun 2020
With coronavirus-induced payment holidays sapping the money they take in from monthly bills, power companies across the U.S. are looking at securitization to offset some of their losses.Sources say discussions about the financing strategy have been taking place over the last several weeks among companies including AEP Texas, Duke Energy, Exelon Corp., FirstEnergy and WEC Energy.The result could be an upcoming spike in new bonds backed by special...



Bankrupt Hertz Sees Huge Upswing

Fri, 12 Jun 2020
(SEE CORRECTION BELOW) The values of Hertz’s rental-car bonds are skyrocketing on the secondary market, puzzling some investors who question the company’s long-term viability.Since Hertz filed for Chapter 11 bankruptcy protection on May 22 — the result of coronavirus lockdowns that idled its fleet — prices for many of the company’s bonds have risen 25-50 cents on the dollar, depending on their ratings.For example, on June 9, $72 million...



No Recovery for Mid-Size Loans

Fri, 12 Jun 2020
Collateralized loan obligations backed by the debts of small and mid-size companies are expected to remain scarce in the months ahead.Only one such transaction has priced since the credit market seized in March. That $430.2 million issue, from Owl Rock Capital, priced on May 14. That compares to 30 deals backed by broadly syndicated U.S. loans, for a total of $11.4 billion, according to Asset-Backed Alert’s ABS Database.To be sure, CLOs...



CFPB Proposal Insulates Lenders

Fri, 12 Jun 2020
Consumer-finance companies see the Consumer Financial Protection Bureau’s guidance on replacing Libor as a benchmark for existing loans as a good start in protecting them from lawsuits tied to the switch.At the least, industry participants believe, originators will know how the agency views their Libor-replacement plans — something they haven’t always been able to say with certainty about other lending practices.At issue is a...



Servicers Raise Forbearance Capital

Fri, 12 Jun 2020
(SEE CORRECTION BELOW) A second servicer is seeking approval from Ginnie Mae to add advance-payment financing to its securitization program.The unnamed operation follows in the footsteps of PennyMac, which on April 7 began adding advance payments to the collateral pool for a trust it previously used only to fund purchases of mortgage-servicing rights from Ginnie.In its role as structurer, Credit Suisse had been working on the enhancement since...



No Clear Direction for Auto Data

Fri, 12 Jun 2020
Performance indicators for pools of securitized auto loans remain mixed.According to an index maintained by Fitch, losses among subprime loans rose 61 bp to an annualized 9.22% during the month ended May 15. But delinquencies fell 68 bp to 4.45%. A similar divergence took place among prime-loan portfolios, with losses rising 5 bp to 0.56% while delinquencies dropped 1 bp to 0.27% — near historic lows. The data reflects factors including...



Bond Rally Shuts CBO Window

Fri, 12 Jun 2020
A rapid recovery in the corporate-bond market is proving to be a double-edged sword, improving the performance of securitized pools of those products while diminishing their appeal as fresh collateral.While corporate-loan production halted in March, some $4 billion of fresh high-yield bonds were issued in the U.S. that month — thanks in part to government liquidity injections. Another $80 billion of bonds priced in the following two months,...



US Bank Lands Big Carlyle Gig

Fri, 12 Jun 2020
Carlyle Group has hired U.S. Bank to handle middle-office and financial-reporting tasks for its collateralized loan obligations in the U.S. and Europe.The assignment covers loan-settlement, cash-reconciliation, portfolio-reconciliation, compliance, waterfall-calculation and administrative duties. U.S. Bank already was acting as trustee for many of Carlyle’s CLOs.While it is common for CLO issuers to outsource middle-office and...



Debut Auto Deal In the Works

Fri, 12 Jun 2020
Subprime auto lender First Help Financial is preparing its debut securitization.The $150 million deal is expected to hit the market in July, with Deutsche Bank running the books and with ratings assigned by Kroll. The offering marks the start of what the Newton, Mass., lender anticipates will be a routine issuance program, with one or two transactions per year.First Help was founded in 2006 with the aim of serving working-class immigrants and...



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

Fri, 12 Jun 2020
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...



SkyBridge Slashes Credit Exposure

Fri, 12 Jun 2020
Following steep losses on investments tied to structured credit products, Anthony Scaramucci’s SkyBridge Capital is reducing its exposures in the sector.The maneuver is taking place via SkyBridge Multi-Adviser Hedge Fund Portfolios Series G, a so-called fund of funds that deploys its capital to outside hedge fund operators. Effective July 1, the vehicle’s allotment for structured-product funds will be 53%, down from a current 80%...



The Grapevine

Fri, 12 Jun 2020
Market veteran David Steinberg is no longer working at Deloitte, where he advised asset-backed bond issuers on risk and financial matters throughout the lives of their deals. Steinberg joined the New York accounting firm in 2015, following a brief stint running his own consultant shop. Before that, he had a short-lived run at Gleacher & Co. Steinberg is perhaps best known for his 12-year run as a member of the securitization-banking team at...



The Grapevine

Fri, 12 Jun 2020
Buy-side professional Blake Eger landed in a new role this week as a portfolio manager at Paloma Partners, a Greenwich, Conn., hedge fund operator where she trades structured products including commercial mortgage-backed securities. Eger joined from Redwood Trust, where she led investments in debt securities including residential mortgage bonds. Before joining Redwood in 2018, Eger spent time at Structured Portfolio Management, Merrill Lynch,...



The Grapevine

Fri, 12 Jun 2020
Ahead of the June 17 launch of the Federal Reserve’s Term Asset-Backed Securities Loan Facility, it was business as usual as issuers continued to bring offerings at a healthy pace. Six asset-backed bond transactions totaling some $3 billion were expected to price from June 8 to June 12. General Motors Financial brought the biggest of the bunch, pricing a $1.25 billion auto-lease offering on June 8 (see Initial Pricings on Page 18). It was...



The Grapevine

Fri, 12 Jun 2020
Online lender and payment-service firm Stripe has hired Lydia Foo to lead its capital-markets unit. Foo, who arrived in the company’s New York office several weeks ago, most recently headed capital markets at Upgrade, which she left in October. Foo also worked in a leading capital-markets role at Square Capital. She’s perhaps best known for her 13 years at Morgan Stanley, where she was an executive director in the fixed-income and...



The Grapevine

Fri, 12 Jun 2020
Analyst Kurt Schilling has joined Pre-Rec in New York as a managing director in a role that combines business development and structured-product valuations. Schilling had been working as a consultant following his November 2016 departure from Intercontinental Exchange, where he spent 16 years as a senior analyst with a focus on private-label mortgages.



The Grapevine

Fri, 12 Jun 2020
Structured-credit and direct-lending operations specialist Jordan Zahn left Cantor Fitzgerald about a month ago. His plans are unknown. Zahn was a director in the broker-dealer’s asset-backed finance group, where he helped oversee the closing, funding, collateral movements and trade settlements of securitizations. Before joining Cantor, Zahn worked at Hudson Advisors, where he was responsible for fixed-income and collateralized loan...



The Grapevine

Fri, 12 Jun 2020
Veteran technology specialist Scott Condron, who retired in January after 18 years at BlackRock, joined the board of New York data company T-Rex this month. Condron held a variety of senior technology positions at BlackRock, including chief architect, chief software engineer and chief technology officer. Earlier in his career, Condron worked in capital-markets and product-strategy roles at firms including Republic National Bank, Mercadian Capital...



Loan-Data Contradictions Set Off Alarms

Fri, 05 Jun 2020
An apparent improvement in the performance of online personal loans is stoking fears that an eventual downturn will be worse than originally thought.The concern: Declines in losses, at a time when they should be rising due to the coronavirus crisis, don’t suggest resiliency on the part of borrowers. Rather, the belief is that loan modifications have become so prevalent that they are distorting the data.The nervousness reflects the fact that...



MBS Issuers Face Risk-Retention Squeeze

Fri, 05 Jun 2020
Mortgage-bond issuers are urgently seeking new sources of funding for their risk-retention positions.The efforts, by firms including Angel Oak Mortgage, Angelo Gordon & Co., Blackstone and Cerberus Capital, add to a growing list of maneuvers home-loan companies have had to undertake in response to coronavirus-related turbulence in the repurchase market. While much of the focus has been on a lack of liquidity for mortgage portfolios, many of the...



Investors Dodge CFPB Cashflow Seizure

Fri, 05 Jun 2020
(SEE CORRECTION BELOW) A federal judge has blocked, at least temporarily, an effort by the Consumer Financial Protection Bureau to hold investors in 15 student-loan securitizations from First Marblehead financially accountable for the actions of a servicer.At issue are some 840,000 private loans totaling at least $15 billion that First Marblehead securitized from 2003 to 2007 via its National Collegiate Student Loan Trust. Many of the loans...



Buysiders Crowd Into CP Classes

Fri, 05 Jun 2020
As investors reposition their portfolios in response to the coronavirus crisis, the buy-side audience for the shortest-dated asset-backed bonds is becoming far more diverse.Typically, institutional money-market funds are the biggest buyers of the commercial-paper classes of new deals. But corporate treasury programs, public pension systems, mutual fund operators and insurers have been joining them in growing numbers since mid-April.Sources are...



Putnam Maps First Mortgage Deal

Fri, 05 Jun 2020
Putnam Investments is resurrecting a plan to issue its first-ever reverse-mortgage securitization.The transaction, with an estimated size of $300 million to $500 million, is backed by first-lien accounts with Federal Housing Administration guarantees. It’s expected to hit the market in the coming weeks. Nomura, which has been providing Putnam with a warehouse line, is the bookrunner.Sources said Putnam has been buying collateral accounts...



Carvana Back in Prime-Loan Queue

Fri, 05 Jun 2020
Carvana has resumed work on a securitization that it shelved at the onset of the coronavirus crisis, possibly with a change in rating assignments.The $300 million deal, originally slated to hit the market in March, would be the auto lender’s first backed by prime-quality accounts. The new version is expected to start circulating with investors in the coming weeks.On the rating front, Moody’s appeared close to lining up an assignment...



SFA Seeks Action on Racial Divide

Fri, 05 Jun 2020
Acting in response to the national debate on racial inequality, the Structured Finance Association is launching a series of initiatives to aid minorities.The efforts aim in large part to ease underrepresentation of black and Latino individuals in the financial workforce. To that end, the trade group already had entered discussions with historically black colleges to build fellowship and mentorship programs for students willing to consider careers...



Signs of Life for PMI Programs

Fri, 05 Jun 2020
Investors are gaining confidence that growing mortgage forbearance won’t cause losses among risk-transfer securities issued by private mortgage insurers, potentially setting the stage for those offerings to resume.The outlook reflects what has been a hot topic in the market: The advantages that can come with structures in which the issuers shed exposures to actual losses within their reference pools. All deals from Arch Capital, Essent...



GM Tees Up Auto-Lease Offering

Fri, 05 Jun 2020
Get ready for the first offering of bonds backed by auto leases in the U.S. since the early days of the coronavirus pandemic.General Motors Financial this week was expected to begin marketing a transaction with an estimated size of $1 billion. The deal is the first in the States since GM priced a $500 million deal on Feb. 20 with Lloyds Banking running the books.The new offering comes as concerns about the impact of the virus on the resale value...



Goldman Adds Solar-Loan Vehicle

Fri, 05 Jun 2020
Goldman Sachs has created a second securitization program for solar-power equipment loans originated by Loanpal.The effort saw Goldman circulate a $210.5 million deal this week under the name Loanpal Solar Loan, 2020-1. The bank concurrently shopped a $161.2 million transaction from an existing trust, called Mill City Solar Loan, 2020-1.Both vehicles follow a “club” format, with investors agreeing to buy loans from San Francisco-based...



Conditions Ease for CLO Issuers

Fri, 05 Jun 2020
Collateralized loan obligation values continued to rally this week as investors became increasingly comfortable with the securities’ underlying receivables.Spreads tightened across the capital stack, with the biggest improvements occurring among bonds rated triple-B and double-B that are still in their reinvestment periods. Those with triple-B marks were trading at 460-800 bp over three-month Libor, in from 535-850 bp two weeks earlier....



The Grapevine

Fri, 05 Jun 2020
The first floor of the Washington office building that’s home to the Structured Finance Association was damaged during protests this week. The building — on Eye Street NW, three blocks from the White House — had its windows smashed and its lobby vandalized. SFA employees, normally stationed on the fifth floor, have been working from home amid the coronavirus...



The Grapevine

Fri, 05 Jun 2020
Jonathan Kitei, formerly head of distribution for securitized products and collateralized loan obligations at Barclays, has joined Nearwater Capital, which helps structured-product issuers finance risk-retention positions in their deals. Kitei is set to join the New York operation on June 8 as head of the risk-retention business. He plans to add one or two more risk-retention specialists in the U.S. and Europe. Kitei, who has held several...



The Grapevine

Fri, 05 Jun 2020
TD Securities has hired veteran banker Jerry Liu away from Credit Agricole. Liu started this week in New York as head of U.S. asset-backed bond structuring, reporting to managing director Brad Dansker. Liu had been working in a bond-structuring role at Credit Agricole since 2018. Before that, he was at Bloomberg. His previous stops include RangeMark Financial, NSM Capital, ABN Amro, J.P. Morgan and Goldman Sachs. Liu’s arrival at TD...



The Grapevine

Fri, 05 Jun 2020
Mortgage-bond banker James Harrington left Cantor Fitzgerald last month to join Pimco. He’s stationed in New York, where he assembles the insurer’s non-agency mortgage-bond offerings. Harrington joined Cantor in 2018 from Deutsche Bank as the broker-dealer sought to establish a larger presence in the U.S. mortgage-bond underwriting business. Before his three-year stint at Deutsche, Harrington headed investor relations at Shellpoint...



The Grapevine

Fri, 05 Jun 2020
Broker-dealer INTL FCStone has again set its sights on the secondary market for structured products. The New York firm has hired trader Brian Vescio to set up a trading desk and assemble a team of sales professionals. The effort is expected to get under way in August. INTL FCStone made a similar push in 2017 but abandoned the effort after about six months. Until last month, Vescio was a managing director at Piper Sandler, where he oversaw trading...



The Grapevine

Fri, 05 Jun 2020
The former head of capital markets from Social Finance has landed as a trader at Millennium Management. Ryan Feeney left SoFi in March after less than a year leading a securitization program for bonds backed by personal loans and student loans. At Millennium, he’s stationed in Los Angeles. Before his arrival at SoFi, Feeney traded a variety of loans and securities at Brevan Howard. He earlier worked at Goldman Sachs and Morgan...



The Grapevine

Fri, 05 Jun 2020
Sam Dinnin this month is moving to insurer EquiTrust, where he’ll focus on private credit and private structured-credit deals. Dinnin was previously a credit analyst at Crestline Denali Capital, now part of Ares Management. Before joining Crestline in 2019, he was part of a structured-product team at Ameritas Investment. Magic Johnson Enterprises acquired a controlling stake in EquiTrust in...



Correction

Fri, 05 Jun 2020
A May 29 listing, “Leading Collateralized Loan Obligation Trading Desks,” named the incorrect person as head of CLO trading at MUFG. That position belongs to Anna Farbiszweska. She can be reached at 212-405-7355 or anna.farbiszweska@mufgsecurities.com.



LISTING: CLO Market Makers

Sat, 30 May 2020
Societe GeneraleFocuses on U.S. business. January hiring of Mark Lacerenza as head of syndicate for structured products has filtered into CLOs, where he’s involved in building new-issue business. Expansion into middle-market space produced first deal as lead underwriter on Owl Rock Capital offering in March.NOTE: Complete listing appeared in May 29, 2020, issue of Asset-Backed Alert and can be found on ABAlert.com, in the...



LISTING: CLO Market Makers

Sat, 30 May 2020
SMBC NikkoMaking inroads with CLO banking and trading units. Led its first CLO in March 2020 for Golub Capital, including tapping investor contacts in Japan. Currently focused on deals backed by mid-size business debt. Also developing capabilities for broadly syndicated loans.NOTE: Complete listing appeared in May 29, 2020, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Market...



LISTING: CLO Market Makers

Sat, 30 May 2020
RBCGaining momentum, having led a deal for Zais Group while working on near-term offerings for AIG, CIFC and Elmwood Asset Management. Secondary-market trading remains a focus, aided by the April 2019 addition of Bryan Gonnella from Guggenheim.NOTE: Complete listing appeared in May 29, 2020, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Market...



LISTING: CLO Market Makers

Sat, 30 May 2020
NomuraOpening additional warehouse lines with large managers as part of an effort to build new-issue business following 2018 hiring of former RBC trader Florian Bita. To that end, served as underwriter for a $510.5 million deal from MJX Asset Management on Feb. 25. Secondary-market trading and refinancings continue to provide revenues.NOTE: Complete listing appeared in May 29, 2020, issue of Asset-Backed Alert and can be found on ABAlert.com, in...



LISTING: CLO Market Makers

Sat, 30 May 2020
NatixisUnder Alex Zilberman and Chris Gilbert, who were promoted to global CLO head and U.S. head of origination in June 2018, maintained a position among the top 10 underwriters in 2019. Since the coronavirus pandemic hit, has made a strong showing with early assignments from Redding Ridge Asset Management, AIG and Owl Rock Capital.NOTE: Complete listing appeared in May 29, 2020, issue of Asset-Backed Alert and can be found on ABAlert.com, in...



LISTING: CLO Market Makers

Sat, 30 May 2020
NatAllianceThe former Auriga USA team remains active following the firm’s January 2019 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 29, 2020, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Market...



LISTING: CLO Market Makers

Sat, 30 May 2020
MUFGEmphasizing new deals. The push has benefitted from MUFG’s deep relationships in Japan and continued growth in U.S. distribution. Anna Farbiszweska’s trading activities also have boosted relationships in the market.NOTE: Complete listing appeared in May 29, 2020, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Market...



LISTING: CLO Market Makers

Sat, 30 May 2020
Morgan StanleyVolume has taken a major dive, entering 2020 sixth in league tables after deal total dropped by 33.7% in 2019. Had been a challenge for the number-one slot among bookrunners. Most active in the U.S., but has picked up in Europe. Trading desk remains busy.NOTE: Complete listing appeared in May 29, 2020, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Market...



LISTING: CLO Market Makers

Sat, 30 May 2020
MizuhoAfter more than five years working on CLO origination, managing director Steve Kahn departed for Assured Guaranty in December. Under guidance of longtime market staple Jim Stehli, recorded its first new-deal volume since 2015 with three offerings totaling $1.2 billion in 2019. Angling to win more new-deal business after receiving management’s approval to expand warehouse financing. Has stepped up trading this year after addition of...



LISTING: CLO Market Makers

Sat, 30 May 2020
Marv CapitalMarv founders Maneesh Awasthi and Viru Raparthi continue to trade with a focus on mezzanine and equity. With the secondary market picking up steam in the wake of the coronavirus crisis, those areas are expected to see heavy trading. Also privately places deals from Brazil with large U.S. insurers.NOTE: Complete listing appeared in May 29, 2020, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings”...



LISTING: CLO Market Makers

Sat, 30 May 2020
JefferiesLed by head structurer and trader Jason Schechter, continues to maintain presence just outside the top-10 bookrunners, even as volume has dipped. Likes to mix assignments from repeat clients with new ones including Bain Capital and PGIM Investments. Known for its willingness to try creative structures and new ways of placing or financing CLO equity.NOTE: Complete listing appeared in May 29, 2020, issue of Asset-Backed Alert and can be...



LISTING: CLO Market Makers

Sat, 30 May 2020
Janney Montgomery ScottDeals mainly in the secondary market. Emphasis is on mezzanine and equity securities, where a big jump in trading volume is expected amid depressed values resulting from the coronavirus crisis. Team includes experienced sales staff of Jeff Bertoni, Ross Heller and Anthony Veltri.NOTE: Complete listing appeared in May 29, 2020, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings”...



LISTING: CLO Market Makers

Sat, 30 May 2020
J.P. MorganOrigination team among the busiest in the market, finishing second in 2019 league tables. Benefits in part from the bank’s presence in leveraged-loan syndication. Status as a major buyer of senior paper drives trading activity, which is guided by Shivraj Bhushan in New York.NOTE: Complete listing appeared in May 29, 2020, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under...



LISTING: CLO Market Makers

Sat, 30 May 2020
GreensLedge CapitalSaw number of deals rise a bit last year despite a 15% drop in overall volume. Continues to maintain outsized trading presence, thanks in part to investor contacts in Japan and Korea. Veteran team, led by Jim Kane, competes with larger banks as an underwriter, winning assignments from heavyweight issuers including Anchorage Capital, BlackRock, GSO Blackstone and Kohlberg Kravis Roberts.NOTE: Complete listing appeared in May 29,...



LISTING: CLO Market Makers

Sat, 30 May 2020
Goldman SachsLost trader Jad Elkhoury in April, when he jumped to Citidel to join former Goldman head CLO trader Sameer Maru. Saw underwriting volume rise in 2019 even as market contracted, with deals from repeat clients joined by first-time assignments from Anchorage Capital, Hayfin Capital, Invesco and Kayne Anderson Capital. Kamal Ramnani continues to lead trading operation.NOTE: Complete listing appeared in May 29, 2020, issue of Asset-Backed...



LISTING: CLO Market Makers

Sat, 30 May 2020
Deutsche BankShakeup in senior ranks continued with Bilal Nasir joining as head of U.S. CLO trading in August 2019 from BNP Paribas and head banker Francis McCollough departing for Sound Point Capital in February 2020. New-deal volume led by repeat clients GSO Blackstone, CIFC and PGIM.NOTE: Complete listing appeared in May 29, 2020, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under...



LISTING: CLO Market Makers

Sat, 30 May 2020
Credit SuisseMaintained usual top-10 presence with deals including an assignment from Partners Group after the onset of the coronavirus pandemic. Focuses on a select manager group that includes Bain Capital, Voya Investment and Prudential.NOTE: Complete listing appeared in May 29, 2020, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Market...



LISTING: CLO Market Makers

Sat, 30 May 2020
CitigroupUnder Jim Hughes, who was promoted to lead the overall team in 2018, remains the market’s most active underwriter, with regular assignments from top CLO managers including GSO Blackstone, KKR, Voya Investment and Carlyle Group. On the trading side, focuses on equity and lower-mezzanine securities.NOTE: Complete listing appeared in May 29, 2020, issue of Asset-Backed Alert and can be found on ABAlert.com, in the...



LISTING: CLO Market Makers

Sat, 30 May 2020
Brownstone InvestmentTrading 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 29, 2020, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Market Makers.”



LISTING: CLO Market Makers

Sat, 30 May 2020
Brean CapitalPierce Derkac started in May 2019, allowing Richard Barry to focus on asset-backed bonds. Kevin Lamoin subsequently joined in a CLO sales role in January 2020. Focuses on mezzanine-note and equity trades.NOTE: Complete listing appeared in May 29, 2020, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Market...



LISTING: CLO Market Makers

Sat, 30 May 2020
BMO CapitalErez Biala signed on as head of structured credit product origination and trading in July 2019 after launching similar initiatives at Amherst Pierpont and Jefferies.NOTE: Complete listing appeared in May 29, 2020, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Market Makers.”



LISTING: CLO Market Makers

Sat, 30 May 2020
BNP ParibasLeague-table standing just a step below the busiest banks has been aided by warehouse financing and structuring flexibility, including deals tailored for investors in Japan. Underwrote some of the earliest CLOs in both the U.S. and Europe following the onset of the coronavirus pandemic.NOTE: Complete listing appeared in May 29, 2020, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section...



LISTING: CLO Market Makers

Sat, 30 May 2020
BarclaysSolidified its position among upper echelon of underwriters, with John Clements responsible for structuring. Jumped to fourth place from seventh in 2019 CLO underwriting league tables.NOTE: Complete listing appeared in May 29, 2020, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Market...



LISTING: CLO Market Makers

Sat, 30 May 2020
Bank of AmericaHead banker Wynne Comer left May 2019 to join AGL Credit. Comer had been heading origination, with Edward Tang overseeing syndication. Charles Hand covers both functions in Europe. Remains near the top of the bookrunner league tables.NOTE: Complete listing appeared in May 29, 2020, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Market...



LISTING: CLO Market Makers

Sat, 30 May 2020
BairdEntered the origination business with the April 2019 addition of Mario Verna from Guggenheim. Since the pandemic struck, has been working static and partially funded deals backed by loans to mid-size companies. Continues to build up busy secondary-market operation under David Barrish and Garrett Jankowski.NOTE: Complete listing appeared in May 29, 2020, issue of Asset-Backed Alert and can be found on ABAlert.com, in the...



LISTING: CLO Market Makers

Sat, 30 May 2020
Amherst PierpontEfforts to build an origination business consisting of warehouse-finance, structuring and distribution services continue under Robert McMullen, who assumed lead banking role following the departure of Erez Biala in July 2019. However, the firm remains better known for its trading activities.NOTE: Complete listing appeared in May 29, 2020, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings”...



LISTING: CLO Market Makers

Sat, 30 May 2020
Wells FargoKevin Sunday became sole head banker following March departure of long-time co-head Jason Powers. Client list includes BlackRock, Eaton Vance Management and Oaktree Capital. Scope includes deals backed by loans to both large and mid-size companies. Warehouse-financing terms emphasize loan quality over market value.NOTE: Complete listing appeared in May 29, 2020, issue of Asset-Backed Alert and can be found on ABAlert.com, in the...



Covid Sets Back SFA's Vegas Conference

Fri, 29 May 2020
The Structured Finance Association has postponed its signature conference.“SFVegas 2021” had been scheduled for Feb. 28 to March 3, 2021, at the Aria Resort & Casino in Las Vegas. But concerns surrounding the coronavirus pandemic, including the possibility of outbreaks in the fall and winter months, have prompted a delay to May 2-5 at the same venue.Early-year conferences have long been a mainstay in the securitization industry, with...



Bond Deals Gaining as Repo Replacements

Fri, 29 May 2020
Determined to reduce their reliance on repurchase agreements, mortgage REITs increasingly are signaling that securitization could figure more prominently into their funding formulas.The result could be a multi-billion-dollar jump in deal volume in the coming months, mainly from established issuers. Sources said Chimera Investment, Ellington Financial, MFA Financial, New Residential Investment, New York Mortgage and Redwood Trust are among those...



Liberty Mutual Propping Up Non-QM Flow

Fri, 29 May 2020
Liberty Mutual has suddenly emerged as perhaps the most influential buyer of home-loan bonds whose underlying receivables don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” guidelines.Pointing to a spate of senior securities it has purchased over the past two weeks, sources said Liberty Mutual has played a pivotal role in helping issuers including Angel Oak and Invictus Capital complete their first...



Secondary Card-Bond Trading Soars

Fri, 29 May 2020
With issuance of new credit-card bonds at a standstill, investors are flocking to the secondary market.The result has been a simultaneous rise in trading volume and values. Indeed, secondary sales in the asset class have roughly doubled from typical levels over the past four weeks to $2 billion, according to Finra’s Trade Reporting and Compliance Engine. And all of the bonds traded at above-par prices.The activity suggests investors are...



Dealers Root for CLO Shakeup

Fri, 29 May 2020
Dealers that made markets for collateralized loan obligations as major U.S. banks stepped back in March are hoping their efforts will lead to prolonged increases in business.Non-U.S. banks especially stand to benefit, as do some non-bank entities in the States that typically have played smaller roles in the market. Their message: “If I’m there for you in difficult times, I’ll be there for you in good times, too,” one...



Issuers Gear Up for June Offerings

Fri, 29 May 2020
Asset-backed bond supply is beginning to percolate again.After a breather surrounding the Memorial Day holiday, several offerings have entered the near-term pipeline. Among them are a transaction backed by prime-quality auto loans from Toyota, a private student-loan deal from Navient and a timeshare-loan issue from Hilton Resorts.There also are several issues backed by subprime auto loans in the works (see article on Page 6). And U.S. equipment...



OnDeck Keeps Financing Alive

Fri, 29 May 2020
OnDeck Capital is close to refinancing four of its credit lines, but continues to struggle with the effects of the coronavirus crisis.Sources said the New York small-business lender already has reached agreements to amend the terms of facilities from 20 Gates Management, Ares Management, Deutsche Bank and SunTrust, with each allowing for more loans in forbearance.Like many other lenders, OnDeck saw borrower delinquencies and forbearance soar as...



Whole-Business Pools Keep Afloat

Fri, 29 May 2020
As their incoming payments shrink, issuers of bonds backed by whole-business cashflows are taking steps to ensure that the deals have ample receivables.At issue are temporary reprieves in royalty payments that restaurant chains and other companies have granted to franchisees whose sales have fallen due to coronavirus-related lockdowns. When it comes to whole-business securities, such reductions can reduce debt-service coverage ratios to the point...



Auto-Loan Issues Staging Return

Fri, 29 May 2020
Improving conditions have opened the door for a slew of subprime auto lenders to re-enter the bond market.Consumer Portfolio Services, DriveTime, Exeter Finance and Global Lending Services all have deals in the pipeline — their first since the beginning of the coronavirus crisis.“It looks like things bottomed out in April and improved in early May,” a source said. “The auction markets are working much better, and some...



Leading Collateralized Loan Obligation Trading Desks

Fri, 29 May 2020
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...



More Doubts Arise for TALF CLOs

Fri, 29 May 2020
The latest update to the Federal Reserve’s Term Asset-Backed Securities Loan facility has further reduced the program’s appeal for collateralized loan obligation issuers.A May 20 revision to a FAQ sheet maintained by the Federal Reserve Bank of New York indicates that deal “sponsors” must certify that their transactions qualify as “eligible collateral” for TALF financing and that the offering documents must...



SFA Seeks CRT Forbearance Relief

Fri, 29 May 2020
The Structured Finance Association has joined investors in seeking to prevent borrower forbearance from triggering losses among older risk-transfer securities.In a May 27 letter to Federal Housing Finance Administration head Mark Calabria, SFA executive director Michael Bright said the FHFA should treat forbearance as a deferral instead of a delinquency.Risk-transfer investors in older deals typically absorb losses when asset performance...



Fed Calls for Automatic Switch

Fri, 29 May 2020
The Federal Reserve’s Alternative Reference Rates Committee has set its recommended practices for dropping Libor as a bond benchmark.For asset-backed securities, the central bank suggests that mechanisms to switch to an alternative benchmark be “hardwired” into new deals beginning June 30, 2020. That represents a change from many recent transactions, which instead specify that the issuer or a representative must select a new...



The Grapevine

Fri, 29 May 2020
Greg Schuetz has left Lending Club, where he played a leading role in the securitization of personal loans. His plans are unknown. Schuetz had been at the San Francisco lender since 2016, having arrived from PricewaterhouseCoopers, where he assigned values to a variety of financial instruments. He earlier worked as a credit analyst at First Tennessee...



The Grapevine

Fri, 29 May 2020
Collateralized loan obligation trader Ervin Pilku resurfaced last month at Odeon Capital. His mission: build a CLO sales and trading business at the New York broker-dealer, which hasn’t had a presence in the sector. Pilku left Guggenheim in January after that firm shuttered its CLO operation. As part of his plan at Odeon, Pilku recruited Guggenheim structured-product specialist Charles Gibney to help with CLO sales. One or two more recruits...



The Grapevine

Fri, 29 May 2020
Executive recruiters are reporting that a number of regional broker-dealers are trying to fill seats on their structured-product sales and trading teams to meet a surge in business brought on by the coronavirus crisis. But here’s the rub: Because business has been so robust and traders and salespeople are making more money than they have in years, they’re unwilling to leave their jobs to start somewhere new. “Shops are calling...



The Grapevine

Fri, 29 May 2020
StormHarbour Securities has hired former Jefferies mortgage-bond trader Ken Zegar as the firm continues to rebuild its structured-product sales and trading operation. Zegar was a managing director at Jefferies, which he left in 2018 after 10 years on board. Before that, he was at RBS. Zegar also has logged time at Credit Suisse and PaineWebber.



The Grapevine

Fri, 29 May 2020
Tracy Feng was promoted to senior counsel in Allen & Overy’s collateralized loan obligation practice this month. Feng arrived as an associate in October from Katten Muchin, where she started in 2014. She also has spent time at Milbank Tweed and Linklaters.



The Grapevine

Fri, 29 May 2020
Social Finance promoted Jeremy Goldman several weeks ago to a senior director post in its capital-markets unit in New York. Goldman helps run SoFi’s personal-loan and student-loan securitizations, as well as warehouse and conduit financing. Goldman arrived at SoFi in 2017 from BNP Paribas, where he worked as a trader.



The Grapevine

Fri, 29 May 2020
Online personal lender Upgrade has added to its investor-relations team. Ivania Juarez started as a director in San Francisco last month after eight years at Lending Club, where she primarily worked in a similar position. Juarez earlier spent time at Morgan Stanley. Upgrade has completed six securitizations totaling $724.6 million.



The Grapevine

Fri, 29 May 2020
Mizuho has an opening for an associate on its asset-backed bond structuring team. The recruit would be stationed in New York, supporting deal origination, marketing and pricing efforts. Candidates should have at least three years of experience. Mizuho this year has run the books on 13 deals totaling $12.6 billion, according to Asset-Backed Alert’s ABS...



Cash Shortages Drive MBS Repackagings

Fri, 22 May 2020
Aiming to raise some quick cash amid the coronavirus crisis, several mortgage-bond issuers have been quietly resecuritizing subordinate notes retained from their past transactions.Nearly $1 billion of the offerings already have taken place in the past two weeks, and industry participants see the potential for far more. Indeed, non-agency issuers kept more than twice that amount of securities from their deals in 2019 alone.The issuers are a mix of...



Fed's Cold Shoulder Frustrates DBRS, Kroll

Fri, 22 May 2020
With the Federal Reserve apparently overlooking them, DBRS Morningstar and Kroll are imploring the central bank to name them as eligible rating agencies for its Term Asset-Backed Securities Loan Facility.Term sheets released on March 23 and April 9 specify that TALF funding would be available for bonds with top ratings from “at least two eligible nationally recognized statistical rating organizations.” But a separate FAQ sheet posted...



Wilmington Pitching Mortgage Blockchain

Fri, 22 May 2020
Wilmington Trust has launched an ambitious effort to create a blockchain-technology tool containing documents for all non-agency mortgages.The Wilmington Trust Securitization Platform would offer access to information including representations and warranties, underwriting guidelines and servicing parameters. It would span both securitized mortgage pools and whole-loan portfolios, including those for which Wilmington doesn’t serve as...



FirstKey Considers Rental Program

Fri, 22 May 2020
FirstKey Mortgage is taking a hard look at securitizing its rental-home cashflows.The potential project, still in its early stages, is tied to a $2 billion line of credit from Morgan Stanley that FirstKey has tapped to help build a portfolio of 20,000 rental properties nationwide since around 2018. Sources said that facility contained provisions under which receivables could be withdrawn after two years, explaining the timing of the move toward...



Zais Pulls Off Rare Equity Sale

Fri, 22 May 2020
Collateralized loan obligation professionals are raising their eyebrows over Zais Group’s apparent ability to find an outside buyer for the equity portion of its next offering.The CLO, expected to hit the market next week, would be only the second since the beginning of the coronavirus crisis in which the issuer didn’t retain its equity. The other was an April 24 deal from PGIM Investments, a market behemoth that manages some $27...



PenFed Dumping $2 Billion of Loans

Fri, 22 May 2020
Pentagon Federal Credit Union is trying to unload a $2 billion portfolio of loans that have grown increasingly risky in the coronavirus-ravaged economy.PenFed, based in Tysons, Va., had sharply increased its loan-buying program since the start of 2018, when it had about $200 million of loans on its books. The purchases included personal loans from Prosper Marketplace and Upgrade, as well as solar-power equipment loans from Loanpal. But with...



Forbearance Still Looms for CRTs

Fri, 22 May 2020
Investors still don’t think the Federal Housing Finance Agency has gone far enough in preventing borrower forbearance from triggering losses among agency risk-transfer securities.At issue are “fixed-severity” deals in which bondholders absorb losses when asset performance deteriorates to pre-set levels. While the standard is for the reference mortgages to be treated as defaulted once they are 180 days past due, most such...



MBS Pipeline Regaining Steam

Fri, 22 May 2020
The new-issue market for private-label mortgage-backed bonds is suddenly heating up.After volume slowed to a drip over the past two months, six transactions totaling about $2.2 billion were making the rounds and likely to price by the end of this week. The deals included an inaugural offering from First Republic Bank, whose loans fall outside the Consumer Financial Protection Bureau’s “qualified-mortgage” guidelines, and an...



TALF-Fund Lineup Keeps Growing

Fri, 22 May 2020
Add two more hedge fund managers to the list of firms setting up vehicles that would tap into the Federal Reserve’s Term Asset-Backed Securities Loan Facility.Mill Hill Capital is aiming to launch its Mill Hill TALF Opportunities Fund in June, with hopes of eventually raising a couple hundred million dollars. Fresh off his exit from West Side Advisors, meanwhile, Jason Wu is seeking an undisclosed amount of capital through his newly...



Prepayments Abate for Refi Loans

Fri, 22 May 2020
Prepayments are moderating among student loans written to refinance borrowers’ existing debts.Early installments among such accounts had surged as the Federal Reserve cut interest rates three times in 2019, with annualized prepayments topping 20% in some securitization pools, DBRS Morningstar analyst Jon Riber said. A large portion of the increase came from borrowers who were refinancing for a second time, typically individuals with...



Industry Leaders Tear Into Calabria

Fri, 22 May 2020
Market participants are fuming over the Federal Housing Finance Agency’s decision to move ahead with plans to remove Fannie Mae and Freddie Mac from government conservatorship at a time when the coronavirus crisis is roiling the private-label mortgage industry.Critics took aim at FHFA head Mark Calabria in particular, saying he was moving too quickly after Fannie and Freddie announced May 18 they would be releasing requests for proposals...



Hildene Seeks Cash for Crisis Plays

Fri, 22 May 2020
Structured-product investor Hildene Capital has initiated marketing efforts for three more funds, bringing the firm’s simultaneous capital-raising campaigns to four as it seeks to take advantage of dislocations resulting from the coronavirus pandemic.The Stamford, Conn., firm is seeking to raise $300 million of equity for a vehicle called Hildene Credit Fund. It also has reopened its existing Hildene Opportunities Fund and Hildene...



Data Supplier Expands Toolkit

Fri, 22 May 2020
A software company that serves lenders, servicers and investors in the securitization field is beefing up its offerings.FinTECH Bulls specializes in building customized analytics technology for clients, with a focus on using artificial intelligence and machine learning to assess risks and assign values in the markets for collateralized loan obligations and commercial mortgage bonds. Its latest addition is a tool that verifies a...



The Grapevine

Fri, 22 May 2020
Barclays this week picked up a veteran banker from J.P. Morgan as it continues to reestablish its presence as an underwriter of non-agency home-loan securities. Paul Laconte Jr. had been at J.P. Morgan since 2008, playing a key role in solidifying the bank’s presence as a top mortgage-bond bookrunner. At Barclays, Laconte is working alongside managing director Joseph O’Doherty, who oversees the bank’s mortgage-bond origination...



The Grapevine

Fri, 22 May 2020
Goldman Sachs is getting into the escrow business. While the effort could see the bank buy an existing trust-service company, it is starting in-house with a few key hires. Among the early recruits is Adam Raffa, who starts May 26. Raffa, who will transfer from Miami to New York, was employed since 2013 at Deutsche Bank with a focus on sales of trust services in the project-finance market. Escrow businesses often are housed alongside paying-agent...



The Grapevine

Fri, 22 May 2020
Hildene Capital, which is moving to expand its investments in collateralized loan obligations, has scooped up the former global head of securitized products from Hayfin Capital. Tapan Jain will join Hildene in the coming weeks to trade CLOs and collateralized debt obligations while working alongside co-chief investment officer Dushyant Mehra and portfolio manager Justin Gregory, according to sister publication Hedge Fund Alert. Jain joined Hayfin...



The Grapevine

Fri, 22 May 2020
Peter Loukas, who arrived at Theorem last year to lead its budding securitization program, has left the San Francisco company. His plans are unknown. Theorem, a buyer of online personal loans, had a $300 million deal in the pipeline. But the offering stalled in March as the coronavirus crisis shut down the market. Loukas arrived at Theorem last May from education lender Laurel Road, where he worked in the capital-markets unit. He also has spent...



The Grapevine

Fri, 22 May 2020
Luke Doramus left his post as co-head of trading at New York hedge fund manager LibreMax Capital this month to join London private equity shop TowerBrook Capital. Doramus continues to work in New York. He was part of a team of former Deutsche Bank executives, led by Greg Lippmann, who founded LibreMax in 2010 with a focus on structured-product investing. In 2017, Doramus was promoted to his most recent role alongside Craig Sedaka. LibreMax has...



The Grapevine

Fri, 22 May 2020
ClientFirst Settlement Funding has laid off nearly half of its staff, and the company’s future is murky. The Boca Raton, Fla., operation had been aiming since 2013 to issue bonds backed by its purchases of structured settlement-payments and lottery winnings, but was unsuccessful in bringing a deal to market. The firm is headed by Burt Kroner.



The Grapevine

Fri, 22 May 2020
Robert Rubino, head of CIT’s commercial-banking operation, is leaving his post next month, destination unknown. Rubino joined the bank in December 2018 following a stint in a similar role at Santander Bank. At CIT, he has oversight of the bank’s asset-management, middle-market banking and capital-markets operations, including its financing of equipment lessors that often tap the asset-backed bond market. CIT commercial finance...



Servicers Scramble as Tax Payments Loom

Fri, 15 May 2020
With the number of mortgages in forbearance soaring, servicers are taking fresh steps to secure the liquidity they’ll need to keep up on advance payments — efforts that some industry participants see as futile.The actions have included restructurings, extensions and expansions of financing facilities that nonbank servicers receive from banks, often as a precursor to securitization. Some of those operations also have been working to...



Fed Ignites Shift From Corporates to ABS

Fri, 15 May 2020
Government support of the corporate-bond market is prompting investors to steer some capital away from that sector and toward asset-backed securities.The shift is occurring across corporate treasury programs, public pension systems, mutual fund operators and insurers, with one source pointing to Alphabet, Apple, Calpers, Charles Schwab, Fidelity Investments and State Street as being among those that have been funneling more money into the...



As Downgrades Ease, CLOs Spring Anew

Fri, 15 May 2020
With investor demand rebounding, more collateralized loan obligation issuers are rolling out deals.At least nine CLOs were in the works this week, with the managers partly seeking to take advantage of lower funding costs that have come with a sharp tightening of spreads for the junior portions of their deals. Two of the deals priced, from Onex Credit and Owl Rock Capital.Issuers also are finding more demand for their senior notes, with some big...



Prepayments Magnify MBS Risk

Fri, 15 May 2020
A sudden jump in borrower prepayments is alarming mortgage-bond investors.The overall constant prepayment rate hit 47% in April for securitized home loans that fall outside the Consumer Financial Protection Bureau’s “qualified-mortgage” guidelines, according to Bank of America. It had been at 34% in March.The so-called CPR expresses prepayments as an average annual percentage of a deal’s current asset balance. The rise...



Rally Prompts Equipment Deals

Fri, 15 May 2020
A cluster of equipment-lease transactions is in the pipeline.The offerings are coming from routine issuers including Ascentium Capital, Balboa Capital, CNH Global, DLL Finance and MassMutual, with each aiming to take advantage of a rapid decline in funding costs that has accompanied plans for the Federal Reserve’s Term Asset-Backed Securities Loan Facility. But the companies won’t necessarily wait for the emergency program to...



BlueVine Credit Line Under Threat

Fri, 15 May 2020
Online business-loan originator BlueVine is in danger of losing a credit facility.The Redwood City, Calif., firm is working to renegotiate the terms of the $200 million revolving line of credit with Credit Suisse, sources said.Like many lenders, BlueVine has offered borrowers modifications to its loans amid spiraling unemployment and widespread lockdowns spawned by the coronavirus pandemic, leaving it short of cash. And while the company recently...



TALF Funds Free to Proceed

Fri, 15 May 2020
Investors who rushed to set up funds that would borrow from the Federal Reserve’s Term Asset-Backed Securities Loan Facility are breathing a sigh of relief.Many of those firms had been concerned that they would be unable to proceed, pointing to language that TALF financing only would be available to entities with both significant operations in the U.S. and a majority of their employees located in the States. The reason: The funds themselves...



Pagaya Loan Offering on Track

Fri, 15 May 2020
Online personal-loan buyer Pagaya Investments is readying its next securitization.The $150 million deal, which is imminent, will be privately placed and unrated, with Cantor Fitzgerald running the books. Since launching its issuance program last year, the Tel Aviv asset manager has completed six unrated deals, most recently a $200 million offering that priced Feb. 18.Pagaya’s securitizations have been backed by prime-quality loans from...



CLO Data Shows Loan Weakness

Fri, 15 May 2020
Performance indicators deteriorated across the board for CLOs in March, as the coronavirus crisis caused downgrades among the deals’ underlying loans to accelerate.The median weighted average rating factor across all Moody’s-rated CLOs deteriorated by 32 points to 2896 for the month. Meanwhile, median holdings of loans with “Caa” ratings rose by 50 bp to 4.10%, and median holdings of defaulted loans increased by 10 bp to...



Investors Absorb Issuance Flurry

Fri, 15 May 2020
It keeps getting cheaper to issue asset-backed bonds.With another batch of offerings pricing this week, it has become increasingly clear that investors are setting aside concerns that the coronavirus crisis will have a lasting impact on asset performance. Indeed, several of the offerings found strong enough demand to price at tighter spreads than those suggested by their underwriters.All told, six transactions totaling some $3 billion were...



GoldenTree Alum Plans Fund

Fri, 15 May 2020
A former GoldenTree Asset Management partner is planning to set up a hedge fund that would invest in structured products.Before Cee Sarabi can launch his fund-management operation, however, he’ll need to wait out a gardening leave that is expected to expire late this summer. Further details of the venture are unknown, according to sister publication Hedge Fund Alert.Sarabi joined GoldenTree in 2007 and in 2013 transferred from New York to...



Ygrene Maps Midyear PACE Deal

Fri, 15 May 2020
Ygrene Energy is targeting June or July for its next securitization of Property Assessed Clean Energy cashflows.The Petulama, Calif., lender originally had been looking at April or May for a deal likely to come in at $230 million to $240 million. Its most recent transaction, a $315 million offering, priced on Oct. 19 via underwriters Deutsche Bank and Natixis.While spreads on PACE bonds have narrowed substantially since blowing out in late March...



The Grapevine

Fri, 15 May 2020
After 21 years covering securitized products at MEAG New York, an investment subsidiary of reinsurer Munich Re, Timothy Kroeber has taken a job at HSBC Global Asset Management as head of credit research for North America. Kroeber played a similar role at MEAG for the past 10 years, specializing in collateralized loan obligations, asset-backed bonds and commercial-mortgage securities. He earlier served as a credit-product portfolio manager at the...



The Grapevine

Fri, 15 May 2020
Three former senior executives of defunct subprime auto lender Honor Finance have been indicted on charges they fleeced at least $5.3 million from borrowers by diverting payments for warranties and global positioning equipment to subsidiaries they controlled. Chief executive James Collins, chief operating officer Robert DiMeo and accountant Robert Walsh were charged by a special grand jury in Chicago with 10 counts of mail fraud. The indictment...



The Grapevine

Fri, 15 May 2020
Paul Petkov left his job at Qbera Capital last week to join Texel Group, which brokers insurance for structured-product transactions. Petkov, based in London, had been Qbera’s chief operating officer and head of its securitization-advisory business since 2018. Previously, he had two stints at HSBC, separated by a stop at Lloyds Banking from 2016 to 2017. Petkov also has worked at Morgan Stanley, Deutsche Bank, RBS and J.P....



The Grapevine

Fri, 15 May 2020
John Thomas is joining Encina Business Credit, where he will start a lending division. Thomas, whose start date is unknown, arrives from AloStar Capital Finance, where he headed the lender-finance group. His responsibilities there included deal structuring, underwriting, due diligence and management of the firm’s structured-finance portfolio. Thomas landed at Alostar in 2013 from Regions Bank. He earlier spent five years at Wells Fargo....



The Grapevine

Fri, 15 May 2020
The SEC has set a July 21 deadline for comments on a proposed rule that would allow a fund to assign an investment advisor to determine the fair value of its assets. Rule 2a-5 would apply to all registered investment companies and would provide specific guidance for fair value determination of a fund’s assets. It also would require a periodic test of methods used to calculate fair value. The measure comes in response to concerns that values...



The Grapevine

Fri, 15 May 2020
Online mortgage lender Better.com has promoted Emanuel Santa-Donato to the post of senior director for capital markets. His new role combines customer acquisition, pricing strategies and execution. Santa-Donato joined Better.com in 2016 as a capital-markets associate. Prior to that, he spent time at Bridgewater Associates.



The Grapevine

Fri, 15 May 2020
CoBank is seeking a capital-markets analyst or associate analyst to handle securitization-support tasks including preparing offering memorandums, marketing proposals, shadow ratings and pricing analysis. The position is based in Denver. Candidates should have at least one year of experience.



Banks Chase Boom in Fannie Reperformers

Fri, 08 May 2020
Credit Suisse and Goldman Sachs are positioning themselves to issue bonds backed by mortgages that Fannie Mae is expected to modify for borrowers facing economic hardships from the coronavirus crisis.The efforts are tied to payment holidays of up to a year that Fannie is offering on its loans. The bet is that many individuals only will be able to exit the temporary forbearance program via permanent adjustments to their payment structures, with...



Mortgages Remain On the Table for TALF

Fri, 08 May 2020
The Federal Reserve is again considering an expansion of its Term Asset-Backed Securities Loan Facility.Indications are that the central bank specifically is interested in adding bonds backed by private-label mortgages and personal loans to the list of products eligible for low-cost financing through the emergency program. Both had been left out of an April 9 broadening that created allowances for collateralized loan obligations and commercial...



Angel Oak Kick-Starting Non-QM Lending

Fri, 08 May 2020
Angel Oak is plotting a comeback.A month after the coronavirus crisis forced the Atlanta mortgage originator to temporarily shut down lending and lay off 70% of its workforce, it last week began circulating a new rate sheet that lays out the terms for two types of loans that fall outside the Consumer Financial Protection Bureau’s “qualified-mortgage” guidelines.The first is a loan available to individuals who can furnish 24...



Virus Stalls Deutsche Doc Transfers

Fri, 08 May 2020
A coronavirus case at Deutsche Bank’s document-custody operation is temporarily holding up sales of mortgages that were destined for securitization.Sources said at least one employee of the document-shipping team in Deutsche Bank Trust’s Santa Ana, Calif., office has tested positive for Covid-19. The bank has responded by performing a deep clean of the facility and asking other personnel who were in contact with the person to...



Buysiders Predicted Agency Action

Fri, 08 May 2020
Investors appear to have anticipated that Fannie Mae and Freddie Mac would prevent borrower forbearance from causing losses among their risk-transfer securities.At issue are “fixed-severity” deals in which bondholders absorb losses when asset performance deteriorates to pre-set levels, with the reference mortgages treated as defaulted once they are 180 days past due. The concern had been that Fannie and Freddie would book accounts in...



Self-Employed Get Cold Shoulder

Fri, 08 May 2020
Economic fears stemming from the coronavirus crisis are especially denting the values of mortgages to self-employed borrowers.Such accounts, which typically fall outside the Consumer Financial Protection Bureau’s “qualified-mortgage” guidelines, are selling for about 75 cents on the dollar in some cases. By comparison, non-qualified loans to individuals who are employed by others are going for about 85 cents to slightly more...



CRT Diversions Under Scrutiny

Fri, 08 May 2020
Mortgage professionals are considering scenarios in which coronavirus-induced payment holidays on Fannie Mae and Freddie Mac loans would lead to the suspension of principal payments for certain risk-transfer securities.The possibility applies to bonds issued by the agencies and by private mortgage insurers, both of which use the deals to shed exposures to losses among the underlying loans. Rather than an increase in reference-pool losses,...



Issuers File Back Into Market

Fri, 08 May 2020
The pipeline of new asset-backed bond offerings is filling up again.After a flurry of deals priced in mid-April, issuers outside the mortgage and collateralized loan obligations sectors backed away until this week — when Educational Credit Management and Ford floated separate transactions. Several more offerings then entered the near-term queue.Among them: a motorcycle-loan securitization from Harley-Davidson, a personal-loan deal from...



Past-Due Mortgage Count Surges

Fri, 08 May 2020
Performance indicators for securitized mortgage pools are beginning to show stresses from the coronavirus crisis.According to an index maintained by Kroll, 30-day delinquencies among subprime-loan pools rose 164 bp in April to 6.65%, the highest level recorded since the agency began tracking mortgage performance in 2016. Delinquencies among prime-quality accounts also reached their highest-ever levels, rising 10 bp to 0.72%. Losses in both...



Hertz Bonds See Fire-Sale Prices

Fri, 08 May 2020
Investors in Hertz’s rental-car securitizations are racing for the exits.With the coronavirus crisis pushing the company to the edge of bankruptcy, bondholders are dumping their positions on the secondary market at a pace rarely seen. Over the last 10 days, a whopping $758 million of the securities changed hands, according to Finra’s Trade Reporting and Compliance Engine.On May 5 alone, $131 million of the Hertz paper traded....



Empirasign Adds to Data Flow

Fri, 08 May 2020
Empirasign has added a feature to its deal-tracking technology that instantly notifies users when any tranche of a selected securitization appears on a bid list.The tool previously offered access to secondary-market activity only on a tranche-by-tranche basis. The update also includes a summary of all recent market activity for each deal on a client’s “watch list.”The new feature launched on May 4, with New York-based Empirasign...



Auto Lenders Hold Back Losses

Fri, 08 May 2020
Aggressive remediation efforts by lenders helped to keep performance indicators for securitized pools of subprime auto loans relatively stable as the coronavirus crisis took hold.According to an index maintained by Fitch, losses among subprime-loan pools fell 27 bp to an annualized 8.63% during the month ended April 15, while delinquencies rose a mere 4 bp to 5.15%. For prime-quality loans, losses were up 4 bp to an annualized 0.54% while...



The Grapevine

Fri, 08 May 2020
The Federal Reserve’s final preparations for the launch of its Term Asset-Backed Securities Loan Facility are focused on defining the operational requirements for access to the program. Key among them is setting specific definitions for the types of investors that can tap low-cost funding through the emergency program, including an allowance for special-purpose funds that are run by approved managers but have no employees of their own....



The Grapevine

Fri, 08 May 2020
What was Bernardo Martinez’s motivation for leaving his San Francisco post as head of Funding Circle’s U.S. business on May 4 to return to PayPal? Part of the reasoning was that he could move back to the East Coast for family reasons, having previously led PayPal’s U.S. small-business lending operation from Timonium, Md. But indications are that he also considered the idea that PayPal could be better insulated from...



The Grapevine

Fri, 08 May 2020
Industry participants are pointing to the “Western Secondary Market Conference” as a possibility for the market’s first in-person gathering since the coronavirus pandemic scuttled events worldwide. The conference, hosted annually by the California Mortgage Bankers Association, is scheduled for July 8-10 at the Monarch Beach Resort in Dana Point, Calif. More than 1,000 people had been expected to...



The Grapevine

Fri, 08 May 2020
Collateralized loan obligation trader Amit Khurana resurfaced this week at StormHarbour Securities. His hire is part of a recently launched plan by StormHarbour co-founder Sohail Khan to aggressively expand the firm’s structured-product sales and trading operation. Khurana was most recently at Mizuho, where he worked from 2015 to February 2019 building out a CLO-trading desk. Earlier, he spent time at CRT Capital, Ally Financial, Knight...



The Grapevine

Fri, 08 May 2020
The coronavirus pandemic could be altering the career paths of some young professionals in the structured-product industry. Executive recruiters and other market participants say they’ve been fielding a growing number of calls from entry-level analysts concerned that a prolonged lockdown and a dearth of available jobs could force them to look for work elsewhere. “A lot of younger analysts have reached out to me about rethinking what...



The Grapevine

Fri, 08 May 2020
DBRS Morningstar is seeking a quantitative analyst to build, validate and review financial models across a variety of structured products. Candidates must have a masters or a doctoral degree in a quantitative discipline and at least two years of experience. To apply, click on “careers” at morningstar.com and search for job listing REQ-016056.



The Grapevine

Fri, 08 May 2020
Social Finance is seeking an associate for its capital-markets division. The position, in New York, involves structuring and monitoring the firm’s warehouse-financing agreements. Candidates should have at least five years of experience. To apply, click on “careers” at sofi.com and scroll down to the “capital markets” section.



The Grapevine

Fri, 08 May 2020
Information Management Network has scheduled a webinar for 4 p.m. on May 14 to discuss how investors are reacting to market changes in the wake of the coronavirus crisis. Among the panelists expected to participate are Francisco Paez of MetLife, Emile Ernandez of Kawa Capital, Ann Rutledge of CreditSpectrum, Manish Kapoor of West Wheelock Capital, and Vincent Fiorillo, formerly of DoubleLine and now chief executive at Park Slope Advisors. To...



Brokers Reporting "Million-Dollar Marches'

Fri, 01 May 2020
Business is booming for structured-product desks at regional broker-dealers.With many large banks hesitant to trade amid the market disruptions caused by the coronavirus pandemic, firms including Amherst Pierpont, Baird, Bay Crest Partners, Brean Capital, Brownstone Investment, Performance Trust, Raymond James Financial and Stifel Financial have quickly stepped in to match buyers and sellers in the market. Many also have been trading more heavily...



SEC Rule an Obstacle to Regulatory Action

Fri, 01 May 2020
The SEC already is envisioning the types of actions it might take when coronavirus-related stresses cause securitized assets to go bad.But the regulator in some cases may find itself stymied by its own policies — specifically, a 2016 update to its Regulation AB disclosure rules.Under that measure, issuers of most SEC-registered structured products were required to fuxrnish the SEC and investors with heaps of data about their deals’...



Canadian Banks Ready Credit-Card Issues

Fri, 01 May 2020
Get ready for a flurry of Canadian credit-card bonds.With the new-issue market for asset-backed securities beginning to show signs of life, Bank of Montreal, CIBC, RBC, Scotiabank and TD Bank are preparing to offer securities to U.S. investors. The transactions, backed by Canadian receivables, are expected to start hitting the market in the coming weeks.Sources point to RBC as likely to be first out of the gate with a $700 million deal. The bank...



Santander Lining Up TALF Bonds

Fri, 01 May 2020
Santander Consumer USA plans to be among the first issuers of bonds eligible for use in the Federal Reserve’s Term Asset-Backed Securities Loan Facility.The effort would see the Dallas auto lender complete one or two deals soon after the program’s launch, which could happen at any time. The offerings would take place either through its Santander Drive Auto Receivables Trust or its Drive Auto Receivables Trust, or both.The so-called...



Servicer Gears Up as Work Swells

Fri, 01 May 2020
Loan servicer Vervent is adding staff in anticipation of a wave of borrower payment interruptions.The San Diego operation has hired 150 agents over the past four weeks, bringing its headcount to 900, and may bring in more. The goal: To equip itself for a growing workload as economic pressures resulting from the coronavirus pandemic weigh on the abilities of consumers and businesses to keep up with their bills.Vervent already is among the largest...



Financing Eases for CLO Collateral

Fri, 01 May 2020
Banks are starting to ease the terms of warehouse facilities they supply to collateralized loan obligation issuers.While few of the institutions are offering new lines of credit, some have extended the expiration dates of existing accounts. In exchange, the issuer and equity holder — often the same entity — typically must agree to a lower advance rate.Banks also are charging lower interest rates, at least for newly acquired loans.The...



Medalist Chases Underpriced Bonds

Fri, 01 May 2020
Medalist Partners is starting a hedge fund that would seek to capitalize on some of the same market disruptions that recently led to major losses for its main vehicle.The New York firm plans to launch its Medalist Partners ABS Special Opportunities Fund by the end of June, raising only a small pool of capital without conducting a broad marketing campaign. The aim is to exploit pricing dislocations that have occurred amid the coronavirus crisis by...



Coronavirus Resource Centers

Fri, 01 May 2020
Rating agencies and law firms have created a range of online resources in response to the coronavirus crisis.Asset-Backed Alert has compiled a listing of the virus resources, which can be found on ABAlert.com, in the “Market” section.The listing only includes law firms that have created centralized pages on their websites for materials such as reports and webinars, and omits those that lack significant materials with direct relevance...



Servicers Examine Funding Options

Fri, 01 May 2020
Nonbank mortgage servicers are exploring securitization as a means of raising the growing amounts of capital needed to fund advance payments on loans in forbearance.While nothing is imminent, some of the operations could tap undrawn capacity from existing bond-issuing programs. Ocwen Financial, for example, still had the ability to sell $104 million of bonds via its Ocwen Master Advance Receivables Trust as of March 31.Some also could set up new...



Card Performance Set to Worsen

Fri, 01 May 2020
Performance indicators for securitized credit-card accounts were largely stable in the months leading up to the coronavirus crisis.After falling over the previous three months, charge-offs among U.S. bankcard pools inched up 17 bp during the first quarter to 3.11%, according to an index maintained by Fitch. Delinquencies of 60 days or more decreased 1 bp to 1.12%. But Fitch senior director Herman Poon warned that the agency expects massive...



Shortfalls Ahead for CLO Equity

Fri, 01 May 2020
(SEE CORRECTION BELOW) A smaller-than-anticipated number of collateralized loan obligations failed asset-quality tests in April, but industry participants remain pessimistic about the months ahead.According to Wells Fargo, about 15% of U.S. CLOs had to shut off payments to equity holders after their collateral measurements fell below minimum thresholds for the first quarter. While that was less than many industry participants projected given the...



Credijusto Nearing Securitization

Fri, 01 May 2020
The market could soon see a rare securitization from Mexico.Credijusto, a Mexico City company that writes small-business loans and equipment leases, took a major step toward issuing its first deal on March 26 when it secured a $100 million warehouse line from Credit Suisse. The financing will go toward bankrolling Credijusto’s emerging leasing operation, which is seen as the future of its business.At the moment, loans account for about 75%...



Personal Loans Wait on Downturn

Fri, 01 May 2020
Personal-loan performance remained a mixed bag as stay-at-home orders took effect throughout the U.S. in March.According to an index maintained by Kroll, losses among securitized pools of so-called Tier 1 accounts fell 34 bp for the month to an annualized 5.81%. Delinquencies in the category dropped 9 bp to 1.22%. Tier 1 loans are written by Marlette Funding and Social Finance to borrowers with credit scores of 710-740. Among Tier 2 accounts,...



Affirm Renews Warehouse Line

Fri, 01 May 2020
Personal-loan originator Affirm obtained its first investment-grade rating on a warehouse facility this week, providing momentum to the lender’s long-running effort to start a securitization program.DBRS Morningstar assigned an “A (low)” rating to the facility, Affirm Operational Loans IV Trust Class A Loan, which was renewed by Barclays for a term of 18 months. The facility is secured by hundreds of millions of dollars in loans the company...



Signs of Life Emerge for CRTs

Fri, 01 May 2020
The market for agency risk-transfer securities may not be entirely shut down after all.Sources reported that either Fannie Mae or Freddie Mac was able to privately place an unrated deal with a single investor this week. While the offering wasn’t on the same scale as the benchmark transactions issued under Fannie’s Connecticut Avenue Securities label or Freddie’s Structured Agency Credit Risk brand, it did mark a key step...



The Grapevine

Fri, 01 May 2020
Abhijit Kumar has departed Philadelphia debt-fund manager Strategos Capital. His plans are unknown. Kumar, who left last week, had been a director in the firm’s New York office since 2016, helping to oversee mortgage-bond strategy and research. Before that, he spent six years at J.P. Morgan. Kumar also has logged time at Millennium Management and Goldman Sachs. Strategos, led by chief investment officer Alex Cigolle, had $171 million of...



The Grapevine

Fri, 01 May 2020
Sean Kelley joined U.S. Bank this month as head of collateralized loan obligation data analytics and research, a new position. He’s based in Chicago. Kelley was previously with PPM America, where he built and managed the firm’s CLO infrastructure. Prior to that, he spent time at Tall Tree Investment, Van Kampen Investments and Olde Discount...



The Grapevine

Fri, 01 May 2020
Mortgage-conduit specialist Michael Wold left NewRez last week, destination unknown. Wold had been at the Fort Washington, Pa., lender’s Los Angeles office since 2019, working on a team that originates loans that fall outside the Consumer Financial Protection Bureau’s “qualified-mortgage” parameters. Before that, Wold had been part of the correspondent-lending group at FirstBank since 2016. He also has worked at Redwood...



The Grapevine

Fri, 01 May 2020
Fitch added a business-development and relationship manager this week to its structured-product rating operation. Bo Trant joined as a director in New York, where he focuses on the agency’s collateralized loan obligation business. Trant was most recently at S&P, where he spent 13 years in various roles in structured-product surveillance and ratings.



The Grapevine

Fri, 01 May 2020
Jacob Amiri joined the capital-markets division of personal-loan originator Affirm in March as a senior associate. Amiri had worked as an analyst in the securitized-product group at J.P. Morgan since August 2018. His arrival at San Francisco-based Affirm follows that of Gabby Champagne-Sitzler, who was hired in February as a lead associate. Champagne-Sitzler was previously at Morgan Stanley, where she traded residential mortgage-backed...



The Grapevine

Fri, 01 May 2020
With coronavirus-related lockdowns still in place, attorneys representing William Jennings in his wrongful-termination lawsuit against Hunt Cos. are seeking to conduct a key deposition online. The attorneys on April 29 asked a U.S. District Court judge in New York for permission to depose Hunt chief executive Christopher Hunt via the internet on May 8. The judge didn’t immediately issue a ruling. Jennings, who was terminated as co-head of...



The Grapevine

Fri, 01 May 2020
Wilmington Trust is seeking an analytics-focused cash flow modeler for its global capital markets group. The position will be based in Baltimore, Chicago, New York or Wilmington, Del. Candidates must have 3-5 years of experience. To apply, go to “careers” at mtb.com and look for job number R14467.



The Grapevine

Fri, 01 May 2020
Atalaya Capital continues to expand its business lines beyond credit-product funds. The New York firm closed on an initial $100 million round of commitments on March 3 for a vehicle called Atalaya Commercial Real Estate Fund 1 that invests in equity stakes in commercial properties — the operation’s first to focus on products other than debt, according to sister publication Hedge Fund Alert. Atalaya’s growth efforts, which date...



Auto-Loan Trusts Cornered by Repo Bans

Fri, 24 Apr 2020
Growing embargoes on vehicle repossessions are threatening to cause widespread cashflow shortages for auto-loan securitizations.Since the coronavirus crisis began, industry professionals have expressed worries about how payment interruptions in the sector would affect bond performance. But still they believed they could rely on a key protection built into the deals: The ability to recover lost capital by selling repossessed vehicles.That...



MBS Price Collapse Attracts Opportunists

Fri, 24 Apr 2020
Borrowing a page from the strategies they employed after the 2007-2008 market downturn, several fund operators are starting opportunistic vehicles that would buy discounted mortgage bonds.Sources named 400 Capital, BlackRock, Blackstone and KKR as being among the firms that either have started raising money for such offerings or are preparing to do so. The aim is to exploit coronavirus-induced price dislocations that have occurred across the...



Banks See Payday in Mortgage Warehouses

Fri, 24 Apr 2020
In an answer to the home-loan industry’s recent tumult, several banks are offering mortgage-warehouse facilities in which the underlying accounts aren’t marked to market.Sources identified J.P. Morgan and Morgan Stanley as being among a growing group of institutions pitching the credit lines to their clients. While such financing has always been available to some extent, lenders rarely advertised it as an option.Instead, banks...



PGIM Breaks Ice on Equity Sales

Fri, 24 Apr 2020
An upcoming collateralized loan obligation from PGIM Investments would be the first since the beginning of the coronavirus crisis to place its equity with an outside investor — illustrating how difficult that task has become.In bringing its $300 million Dryden CLO 84 to market, the Newark, N.J., company initially lined up Jefferies to serve as arranger and buy a portion of the equity. But sources said the bank was unable to place the...



Funding Available to PPP Lenders

Fri, 24 Apr 2020
Stone Ridge Asset Management is in the final stages of creating a credit facility for small-business lenders taking part in the government’s Paycheck Protection Program, with plans to later securitize a portion of the loans.The New York firm will make available up to $20 billion that online small-business lenders can use to fund new originations under the relief program. Funding Circle, Intuit, Kabbage and Square Capital are among the...



Citi Gorges on Non-QM Loans

Fri, 24 Apr 2020
Citigroup has suddenly emerged as a major buyer of non-qualified home loans.Over the last several weeks, the institution has scooped up more than $2 billion of accounts that fall outside the Consumer Financial Protection Bureau’s “qualified-mortgage” standards, sources said. Talk is that it is paying mid-80 cents to mid-90 cents on the dollar for the loans, provided they are of the highest quality.On April, 17, for example, Citi...



Higher Costs Slow Navient

Fri, 24 Apr 2020
Navient is slowing its student-loan refinancing activities in anticipation of higher securitization costs.Working under its Earnest label, the Wilmington, Del., servicer wrote $1.9 billion of such accounts during the first quarter. That was up from $984 million during the year-earlier period.Origination volume remained strong through the end of March. But Navient is signaling that it plans to cut back on marketing its loans and tighten its...



Sprout Unloading Mortgage Book

Fri, 24 Apr 2020
Likely acting at the behest of its warehouse lender, Sprout Mortgage is selling a $900 million home-loan portfolio.The transaction is set for completion today or early next week, with an unidentified advisor assisting in the effort. The loans don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” guidelines.While there’s no official explanation for the effort, sources said it likely came in...



Crisis Lawsuits Start Taking Shape

Fri, 24 Apr 2020
Securitization attorneys already are fielding calls about lawsuits that could stem from the coronavirus crisis.The inquiries have come in large part from bond investors that want to be prepared to sue immediately should they suffer losses. Issuers also have checked in about potential defenses against such actions.The back-and-forth has been heaviest in asset classes where borrowers are seen as most likely to default amid skyrocketing unemployment...



More Issuers Exiting Lockdown

Fri, 24 Apr 2020
The pipeline of new asset-backed bond offerings continues to refill.Early indications are that as many as five new deals will price during the week beginning April 27. Among them could be a securitization of prime-quality auto loans from Ally Financial, a subprime auto-loan transaction from Consumer Portfolio Services, a student-loan offering from Social Finance and an equipment-lease issue from Volvo Financial.The flow of new asset-backed bonds...



Insurers Jittery Over CLO Reviews

Fri, 24 Apr 2020
Rating-agency reviews of collateralized loan obligations have the potential to trigger a flurry of secondary-market selling by insurance companies.The scenario reflects warnings from Moody’s, S&P and Fitch that they could downgrade broad swaths of CLO notes. The thinking is that because insurers are major holders of triple-B-rated paper in the sector, some could choose to sell rather than face the possibility of holding more capital against...



CLOs Steady On Eve of Crisis

Fri, 24 Apr 2020
The proportion of triple-C-rated assets in collateralized loan obligation pools was unchanged in the month leading up to the coronavirus crisis, while holdings of defaulted accounts increased slightly.Median holdings of loans rated Caa1/Caa2/Caa3 by Moody’s registered at 3.6% in February across all U.S. CLOs issued since the 2007-2008 financial crisis. For deals still in their reinvestment periods, those exposures also were unchanged at...



Deal Documents Warn of Virus Risk

Fri, 24 Apr 2020
Issuers of asset-backed securities are flagging risks the coronavirus crisis poses to their abilities to collect payments and service collateral.Auto lender CarMax warns in the prospectus of a $1.2 billion deal it priced on April 22 that the spread of the virus could result in staffing problems if employees become sick or if they can’t effectively do their jobs while sheltering at home. The resulting disruptions could reduce the...



The Grapevine

Fri, 24 Apr 2020
Aashish Marfatia left LibreMax Capital this week, destination unknown. Marfatia had been head of residential mortgage-bond trading for the New York hedge fund manager since June 2019. Before that, he was a senior mortgage-bond trader at Prosiris Capital. Marfatia also has logged time at Perry Capital, Credit Suisse, Moody’s, Capital One and ICS.



The Grapevine

Fri, 24 Apr 2020
Huntington Bank has hired a veteran asset-backed bond structurer in what appears to be a non-securitization role. Kyle Sneed started last week in Huntington’s Chicago headquarters as a vice president. Sneed works with public-sector clients on financing and cash-management strategies. He previously spent more than 15 years at J.P. Morgan, where he arranged deals backed by auto loans and equipment...



The Grapevine

Fri, 24 Apr 2020
There’s no shortage of dealers willing to act as agents under the Federal Reserve’s Term Asset-Backed Securities Loan Facility. During the program’s first iteration in 2009-2010, 22 dealers were designated as TALF agents. Word is there will be at least that many when the relief program revs up again in response to the coronavirus-related market downturn. The number presumably reflects demand from clients, because TALF investors...



The Grapevine

Fri, 24 Apr 2020
But some dealers consider the Federal Reserve’s Term Asset-Backed Securities Loan Facility a distraction. They contend the program’s pending launch has consumed too much time, particularly from a legal standpoint. Meanwhile, it’s unclear how important TALF will be to the asset-backed bond market given that many issuers have begun offering deals without it. This week, for instance, $5.6 billion of fresh transactions priced (see...



The Grapevine

Fri, 24 Apr 2020
Hunton Andrews has elevated associates Brit Mohler and Jonathan Kim to partners, effective April 1. Mohler, based in New York, advises clients on deals backed by mortgages, servicer-advance receivables and personal loans. She started at Hunton in 2012, then left for a brief stint at Blake Cassels before returning in 2015. Kim, based in Charlotte, covers financing of personal loans and mortgage-related assets including rental-home receivables. He...



The Grapevine

Fri, 24 Apr 2020
In other moves, Hunton Andrews named Shannon Daily a senior associate on its Richmond securitization team following her transfer from the firm’s restructuring practice. Daily advises clients in a variety of asset classes. In addition, Brandon Brown was added to the securitization practice as an associate in New York on April 9, having been recruited from Denton’s Toronto office. Brown previously worked at Blaney McMurtry in Toronto....



The Grapevine

Fri, 24 Apr 2020
Michelle Williamson, a trader of reverse mortgages insured by the Federal Housing Administration, left Nomura a few weeks ago. Her plans are unknown. Williamson, an executive director, had been at the Japanese bank’s New York office since 2011. Sources say Nomura hasn’t traded a single pool of reverse mortgages since her departure.



The Grapevine

Fri, 24 Apr 2020
Student-loan servicer Navient has donated nearly 10,000 N-95 masks to hospitals and healthcare professionals in the Delaware area to offset shortages caused by the coronavirus pandemic. Navient, based in Wilmington, Del., had the masks stockpiled as part of its business-continuity plan.



The Grapevine

Fri, 24 Apr 2020
Sallie Mae is seeking an associate general counsel to manage the legal aspects of its private student-loan securitization practice in Newark, Del. Candidates must have at least eight years of experience. To apply, click on “careers” at salliemae.com and search for job listing Req755.



MBS Players Butt Heads Over Forbearance

Fri, 17 Apr 2020
Efforts by mortgage-bond professionals to determine how to treat loans in forbearance have yet to yield any clear answers, raising fears that the sector could descend into chaos.The primary concern is how to avoid a situation in which payment holidays granted to borrowers affected by the coronavirus crisis would trigger mass reviews of their loans. Without a consensus, the belief is that those examinations could quickly lead to overwhelming...



Push for Mortgage-Servicer Aid Intensifies

Fri, 17 Apr 2020
The Federal Reserve is taking a look at reinstating financing for bonds backed by mortgage-servicer advances through its Term Asset-Backed Securities Loan Facility.But industry participants say even that support might be insufficient to help servicers come up with the heaps of capital they’ll need to front for borrowers who fall behind on their payments amid the coronavirus crisis. To that end, they increasingly are pushing for direct...



Banks See CLO-Issuing Window in TALF

Fri, 17 Apr 2020
Even as most collateralized loan obligation professionals dismiss the Federal Reserve’s Term Asset-Backed Securities Loan Facility as being too restrictive to lure them into the market, banks are thinking about taking advantage of the program.The efforts primarily would see the banks create so-called balance-sheet CLOs backed by their own newly originated loans, and retain at least the top classes of the issues. The institutions then would...



Issuers Act Prior to TALF Rollout

Fri, 17 Apr 2020
Frozen by the coronavirus crisis, the new-issue market is showing signs of a thaw even before the Federal Reserve launches its Term Asset-Backed Securities Loan Facility.General Motors Financial priced a $790.3 million offering of bonds backed by prime-quality auto loans on April 16. Santander Consumer USA sold $1 billion of subprime auto-loan bonds later the same day, after increasing the offering’s size from $750 million (seee Initial...



Shutdowns Punish Floorplan Pools

Fri, 17 Apr 2020
The values of bonds backed by automotive dealer-floorplan loans are tanking.The declines illustrate growing fears among investors that as the coronavirus crisis continues, plunging vehicle sales will leave many dealers unable to repay the debts they take out to finance their inventories. This week, for example, a batch of 2.5-year notes with triple-A ratings that Ford issued in 2019 traded at a price equal to 520 bp over swaps.Similar bonds were...



Personal-Loan Modifications Soar

Fri, 17 Apr 2020
A dramatic increase in modifications granted to online personal-loan borrowers in response to the coronavirus pandemic is causing deep concern among bond investors.Early mitigation efforts by lenders and their servicers have moved more borrowers away from delinquencies and into modifications. Under normal conditions, that’s considered appropriate. But with more than 22 million Americans filing for unemployment in the past four weeks,...



No Path Forward for CP Expansion

Fri, 17 Apr 2020
The coronavirus crisis is threatening to end a long-term growth trend in the commercial-paper conduit market.The volume of conduit securities in the hands of investors worldwide averaged $346.7 billion during the fourth quarter of 2019, up 4% from $322.2 billion a year earlier, according to Moody’s. That continued a pattern of gradual expansion dating back to 2016.But amid today’s financial-market turmoil, industry participants are...



PACE Lenders Seek TALF Funding

Fri, 17 Apr 2020
Property Assessed Clean Energy lenders are asking the Federal Reserve to make their securitizations eligible for its Term Asset-Backed Securities Loan Facility.While the Fed has yet to specify that clean-energy loan securitizations of any kind would qualify for financing through the emergency program, the lenders are pushing the idea that PACE deals would fit into an existing provision for bonds backed by equipment receivables. That’s...



Reverse-Mortgage Deal Circulating

Fri, 17 Apr 2020
Waterfall Asset Management is shopping a reverse-mortgage securitization.The offering, with an estimated size of $300 million to $500 million, is backed by first-lien accounts with Federal Housing Administration guarantees. Credit Suisse and Nomura are running the books.Industry participants described the marketing environment for a reverse-mortgage securitization as difficult. Many large investors have pulled back amid the broad financial...



Borrowers Late on Eve of Crisis

Fri, 17 Apr 2020
Delinquencies among securitized mortgage pools grew slightly in February — the last month to be unaffected by the coronavirus crisis.Based on data from February remittance reports, the March installation of an index maintained by Kroll showed a 3 bp jump in 60-day delinquencies among subprime loans, to 2.57%. But annualized losses in the category fell 52 bp to 0.41%. Among prime-quality loans, delinquencies increased 1 bp to 0.20% while...



Funds Place Technicals in Doubt

Fri, 17 Apr 2020
Industry participants already are expressing concerns that the Federal Reserve’s Term Asset-Backed Securities Loan Facility could be a victim of its own success.The outlook is tied to early preparations by private-fund operators to buy TALF-eligible securities and then funnel those holdings into the yet-to-launch program. Indeed, law firms have fielded a rush of inquiries from clients seeking advice on whether they would need to set up new...



Auto Loans Wait for the Pain

Fri, 17 Apr 2020
The effects of the coronavirus crisis still aren’t showing up in performance indicators for securitized auto-loan pools.According to an index maintained by Fitch, losses in subprime-loan pools fell 52 bp to an annualized 8.9% during the month ended March 15. Delinquencies in the category were down 51 bp to 5.11%. For prime-quality loans, losses fell 5 bp to an annualized 0.50% while delinquencies dropped 3 bp to 0.27% — just off a...



The Grapevine

Fri, 17 Apr 2020
Trading opportunities spurred by the coronavirus crisis have prompted market veteran John Devaney to jumpstart his United Capital Markets, a Key Biscayne, Fla., broker-dealer that had been largely dormant in recent years. The push recently began with a few purchases of residential and commercial mortgage securities. The initial plan is to build a $25 million inventory that also would include opportunistic positions in asset-backed securities and...



The Grapevine

Fri, 17 Apr 2020
Investors are urging the U.S. Treasury Department to change a proposed rule that would bar special-purpose vehicles from participating in the Federal Reserve’s Term Asset-Backed Securities Loan Facility. Under the proposal, TALF financing would be available only to bona fide companies with employees, leaving some investors on the sidelines. Following the 2007-2008 financial crisis, newly formed special-purpose vehicles made up the majority...



The Grapevine

Fri, 17 Apr 2020
Veteran restructuring lawyer Doug Taber joined Alston & Bird’s finance practice this month as a senior counsel in New York, where he advises clients on distressed leveraged loans, asset-backed transactions and other credit facilities. Taber arrived from Hogan Lovells, where he was a partner in the business reorganization and insolvency group. Before joining Hogan in 2018, Taber spent 17 years at GE Capital, focusing on restructuring and...



The Grapevine

Fri, 17 Apr 2020
A collateralized loan obligation trader left Goldman Sachs this month, with plans to soon join Citadel. Jad Elkhoury spent nearly six years at Goldman, most recently as an executive director. At Citadel, he’ll be reunited with former boss Sameer Maru, who started there in January as a portfolio manager following a stint running his own firm, USM Capital. Maru joined Goldman in 2000 and was a managing director before he left in June...



The Grapevine

Fri, 17 Apr 2020
Home-loan specialist George Chen has left FirstKey Mortgage to take a job with Freddie Mac. Chen, who started in New York about a week ago, evaluates distressed loans used as collateral for Freddie’s securitizations. He’d been at FirstKey since 2014, with previous stops at Bank of America, Morgan Stanley, Barclays and Lehman Brothers.



The Grapevine

Fri, 17 Apr 2020
Investment specialist Lorenzo Lorilla joined Kuvare Holdings last week in the role of deputy chief financial officer. Lorilla, who is stationed in New York, helps oversee the insurance company’s holdings of structured products and other securities. He was most recently head of credit-product investments at Global Atlantic Financial, an insurer spun off from Goldman Sachs in 2013. Before that, he was a portfolio manager at Goldman Sachs...



The Grapevine

Fri, 17 Apr 2020
BNY Mellon, which played a key administrative role in the original Term Asset-Backed Securities Loan Facility in 2009-2010, may be a shoo-in for involvement during the emergency program’s resurrection amid the coronavirus pandemic. Though some employees have left the bank’s corporate-trust division since the earlier crisis, “presumably there’s still a playbook” that can be dusted off, a source said. There’s...



Coronavirus Interrupts Early-Year Growth

Fri, 03 Apr 2020
Don’t expect a quick recovery from the coronavirus crisis.With new-deal volume hitting a standstill in recent weeks, industry participants essentially have written off expectations of issuance growth this year. And some already are predicting a lasting downturn.That would mark a stark reversal from what had been healthy market conditions. According to Asset-Backed Alert’s ABS Database, $193.9 billion of asset-backed securities,...



Corporate Downgrades Looming Over CLOs

Fri, 03 Apr 2020
Corporate rating downgrades are threatening to set off a cascade of adverse effects in the collateralized loan obligation market.With the coronavirus pandemic causing broad economic turmoil, S&P and its peers have been acting aggressively to cut the ratings of leveraged-loan borrowers in recent weeks. That is giving rise to expectations that a large number of outstanding CLOs — the majority, by some estimates — will fail asset-quality...



TALF Negotiations Yield Mixed Outcomes

Fri, 03 Apr 2020
The Federal Reserve appears open to the idea of expanding its new Term Asset-Backed Securities Loan Facility, but not to the extent that market participants hoped.While discussions with industry professionals are ongoing, the early indication is that the Fed may be willing to extend the emergency program to include financing for collateralized loan obligations and commercial-mortgage bonds. It also may create a broader allowance for securities...



Mortgage REITs Seek Court Help

Fri, 03 Apr 2020
Mortgage REITs and other investment vehicles are engaging law firms to seek court relief in the face of escalating margin calls on their repurchase facilities and warehouse lines.Repo lenders generally have wide latitude to issue margin calls when they believe credit lines are no longer sufficiently collateralized — something that happened in dramatic fashion as the coronavirus crisis worsened late last month. However, a...



Government Aid Stokes Bidding

Fri, 03 Apr 2020
The secondary market for asset-backed bonds showed signs of life this week.While the environment remains far weaker than it was before the coronavirus crisis, traders said they were encouraged to see a strengthening bid in recent days. Among those picking up securities were New York Life and Northwestern Mutual, along with several credit unions and some community banks.The activity was prompted in part by the passage of Congress’ $2.2...



Agency Aid Portends More Pain

Fri, 03 Apr 2020
Expectations that the government will privatize Fannie Mae and Freddie Mac are rapidly vanishing, adding to an already-ominous outlook for private-label mortgage lenders.After years of back-and-forth, the Trump Administration appeared to be progressing toward a massive recapitalization of the agencies in 2020. But with the coronavirus crisis upending the mortgage market, those efforts appear to be at least temporarily on hold.Indeed,...



PACE Lenders Riding Out Crisis

Fri, 03 Apr 2020
The coronavirus crisis is disrupting the businesses of Property Assessed Clean Energy lenders, many of which are adjusting their near-term strategies in ways that eventually could affect the types and volumes of assets available for them to securitize.Consider commercial-property projects. As new construction slows, some lenders in that area have placed more emphasis on financing energy- and water-efficiency retrofits of existing facilities and...



TALF Brings Out Bargain Hunters

Fri, 03 Apr 2020
The relaunching of the Federal Reserve’s Term Asset-Backed Securities Loan Facility has inspired plans for at least one new hedge fund.AIFI Capital of New York has set out to raise $300 million to $400 million in the next month or so for a vehicle that would use low-cost financing from the emergency program to buy structured products at discounted prices. Placement agent Layton Road Group is assisting in the effort, according to sister...



CRT Investors Pointing Fingers

Fri, 03 Apr 2020
Holders of certain risk-transfer bonds are quickly giving up hope that Fannie Mae and Freddie Mac will step in to help them avoid losses tied to borrower forbearance — and they’re pointing to Federal Housing Finance Agency head Mark Calabria as the culprit.At issue is a disconnect between payment suspensions of up to 12 months available to some individuals amid the coronavirus crisis and terms in some older risk-transfer deals that...



False Hope for Personal Loans

Fri, 03 Apr 2020
In what is expected to be a short-lived blip, personal-loan performance showed broad improvements just before the coronavirus pandemic struck.The March installment of an index maintained by Kroll recorded a 6 bp decline in annualized losses among securitized pools of loans to so-called Tier 1 accounts, to an annualized 6.15%. Delinquencies in the category dropped 26 bp to 1.31%. Tier 1 loans are written by Marlette Funding and Social Finance to...



Dislocation Crushes Fund Returns

Fri, 03 Apr 2020
Reports of widespread losses among structured-product funds continue to flow in.Hedge fund operators in the red for March included 400 Capital, Axonic Capital, Metacapital Management and One William Street Capital, according to sister publication Hedge Fund Alert. SPF Investment’s SPF Securitized Products Fund also was down 15% on the month — just a year after Albert Sohn spun the firm off from Credit Suisse with $2.5...



Pressure Easing on Conduit Industry

Fri, 03 Apr 2020
Some early signs of stabilization are starting to pop up in the commercial-paper conduit market, which had been turned upside down by the coronavirus crisis.Investors who were avoiding anything but one-day paper in mid-March have begun buying securities with one- and two-week maturities. That’s in large part because money-market funds, the largest buyers of conduit securities, are getting a firmer handle on what the pandemic will mean for...



CLOs Miss Out on Loan Bargains

Fri, 03 Apr 2020
Some collateralized loan obligation issuers are finding themselves with less flexibility than expected to buy the debt of triple-C-rated companies, despite terms that give them broad leeway to pursue such purchases.Take Anchorage Credit Opportunities CLO 1, a $405.8 million deal that Anchorage Capital priced on Dec. 23 with J.P. Morgan running the books. The transaction has an allotment of up to 20% for collateral loans with triple-C grades,...



The Grapevine

Fri, 03 Apr 2020
John Eknoian has left his post as head of collateralized loan obligation syndication at Credit Suisse. Eknoian departed the bank this week, destination unknown. Eknoian, who held the title of director, joined Credit Suisse in 2012 following a year-long stint at Deutsche Bank. This was his second tour at Credit Suisse. Prior to joining Deutsche, he was at the bank from 1998 to...



The Grapevine

Fri, 03 Apr 2020
Overall delinquencies among personal loans, including those in securitization pools, began climbing on March 18 amid early job losses stemming from the coronavirus pandemic, according to an April 2 report by analytics shop DV01. With the economy in freefall, that performance is expected to worsen considerably in the months ahead. Weekly unemployment figures released April 2 show that roughly 10 million Americans have lost their jobs since...



The Grapevine

Fri, 03 Apr 2020
The coronavirus crisis is taking a toll on executive recruiters that specialize in placing structured-product professionals. With hiring at a standstill across the industry and the future of the new-issue market still in limbo, many recruiting firms have had little choice but to start showing headhunters the door. “In the last week, we’ve had at least a half a dozen recruiters calling us about needing a new job,” said one...



The Grapevine

Fri, 03 Apr 2020
Market participants, including law firms and rating agencies, say that working from home in response to the coronavirus pandemic is going so well it could cause a paradigm shift for how some companies in the securitization industry operate. Cell phones, home computers, video-conferencing programs and remote access to company software and databases all have helped to smooth the transition and allay fears of major employee disruptions....



The Grapevine

Fri, 03 Apr 2020
Former LibreMax Capital asset-backed bond trader Steven Harrison has taken a London post as securitization manager at mortgage lender Together. Harrison had been at LibreMax from 2015 to 2019, overseeing a pool of investments in Europe. Before that, he was a senior portfolio manager at Cairn Capital. He also has worked at UBS. Together has completed four mortgage securitizations totaling $1.8 billion since 2017, according to Asset-Backed...



The Grapevine

Fri, 03 Apr 2020
Rebecca Chia has joined Atalaya Capital as head of business development and investor relations in New York. She arrived today from Third Point, where she headed marketing. Previous stops included Raine Group, Davidson Kempner Capital, Atlantic Pacific Capital and Lehman Brothers. Atalaya, which manages $5 billion, provides warehouse funding to companies that buy and securitize a variety of...



The Grapevine

Fri, 03 Apr 2020
A movement is under way to take the “non-QM” out of investors’ collective vocabulary. In the wake of the coronavirus crisis — and the subsequent collapse of the market for loans that fall outside the Consumer Financial Protection Bureau’s “qualified-mortgage” standards — lenders argue non-QM is a misnomer that should be replaced with the broader description of “non-agency mortgages.”...



TALF Reboot Criticized as Too Restrictive

Fri, 27 Mar 2020
Even before a single investor taps the Federal Reserve’s Term Asset-Backed Securities Loan Facility, the Structured Finance Association is seeking a broad expansion of the program.The trade group’s main gripe is that TALF loans should be available to investors in all types of structured products, in addition to the eight asset-backed bond categories named in a March 23 term sheet from the Fed. It also is seeking eligibility for...



CRT Investors Bemoan Forbearance Plan

Fri, 27 Mar 2020
Investors are rushing to determine whether newly launched forbearance programs from Fannie Mae and Freddie Mac will lead to losses for certain risk-transfer securities.At issue are initiatives in which Fannie and Freddie are allowing mortgage borrowers affected by the coronavirus crisis to reduce or suspend payments for up to 12 months. The concern: Some older risk-transfer notes issued under Fannie’s Connecticut Avenue Securities brand and...



Nomura Cools on Mortgage Warehousing

Fri, 27 Mar 2020
Count Nomura among the investment banks that have become wary of mortgage exposures amid the coronavirus crisis.The Tokyo bank’s concerns stem largely from its activities as a major warehouse lender in the U.S. Sources said it has urged home-loan buyers and originators either to clear out those facilities by securitizing their contents right away or to post additional collateral.Sources also said Nomura has at least temporarily stopped...



Auto-Loan Relief Spooks Investors

Fri, 27 Mar 2020
Investors in bonds backed by auto loans are increasingly nervous about a move by lenders to suspend borrower payments during the coronavirus crisis.That’s because the originators in many cases are discussing larger deferrals than the securities are built to withstand, potentially leading to principal losses for the bondholders. Deferments have always been seen as an effective tool for mitigating defaults by giving borrowers time to recover...



Redwood Pauses Loan Purchases

Fri, 27 Mar 2020
Redwood Trust has temporarily halted the bulk of its jumbo-mortgage buying activities.The maneuver marks a sudden change in stance for the Mill Valley, Calif., REIT, which a week ago insisted it still was an active buyer despite the market upheaval brought on by the coronavirus crisis. The official line at the time was that the operation was taking a more cautious approach and had adjusted its loan-pricing expectations but had experienced no...



Lenders Force Issuers' Hands

Fri, 27 Mar 2020
Several issuers priced small securitizations last week in response to demands from warehouse lenders that they come up with more cash.One of the deals was a collateralized loan obligation. The others were asset-backed bond transactions underpinned by a range of collateral. Each was privately placed with one or two investors, as opposed to being widely syndicated, sources said.The offerings either were unrated or carried private ratings that were...



Fed Action Prompts Libor Buzz

Fri, 27 Mar 2020
Expectations are mounting that Libor’s expiration could be delayed.The speculation comes in response to the Federal Reserve’s decision to peg financing rates for its emergency Term Asset-Backed Securities Loan Facility to Libor-based swaps, rather than its own Secured Overnight Funding Rate.The Fed separately has been favoring SOFR to become the main benchmark for floating-rate securities upon Libor’s expiration, currently...



IMN Turns to Online Outreach

Fri, 27 Mar 2020
With its conferences canceled through August, Information Management Network is ramping up its online presence.IMN managing director Jade Friedensohn said the conference organizer will begin hosting virtual events in April to help structured-finance professionals navigate the upheaval spawned by the coronavirus pandemic. IMN followed a similar playbook in the wake of the 2007-2008 financial crisis, offering webcasts designed to bring together...



Fortress Recruit Sizes Up Downturn

Fri, 27 Mar 2020
Longtime structured-product investor Stuart Lippman has landed at Fortress Investment with a mandate to find opportunities created by the market’s recent dislocation.Lippman started as a managing director in Fortress’ New York office this week, bringing with him the remnants of two hedge funds that he ran at TIG Advisors until yearend 2019. Also following him to the firm is Tony Tang, formerly a managing director at TIG.As they did in...



Capital Available for CLO Issuers

Fri, 27 Mar 2020
Banks continue to offer new warehouse lines to collateralized loan obligation issuers, even as they demand that those firms pledge additional assets against existing facilities.According to a report from U.S. Bank, the number of open lines of credit maintained by CLO issuers grew to 72 in mid-March from 66 a month earlier. Among facilities open for less than 30 days, the total jumped to 13 from six.There was no change in the number of lines open...



Secondary Trading Hits Standstill

Fri, 27 Mar 2020
The secondary market for asset- and mortgage-backed bonds is frozen.Bid lists totaling an estimated $2.5 billion were circulating this week. But only a fraction attracted meaningful offers, with would-be buyers citing cash shortages and concerns that a recent decline in values would continue as the coronavirus crisis deepens.“There are a ton of bid lists making the rounds, but basically no buyers. The secondary market is completely locked...



JP Morgan Piles Up Assignments

Fri, 27 Mar 2020
J.P. Morgan has sprinted to an early lead in the league table for structured-product bookrunners worldwide.The bank has run the books on approximately $25 billion of asset-backed bonds, residential and commercial mortgage bonds and collateralized loan obligations over the first three months of the year. That places it almost $10 billion ahead of Bank of America and Citigroup, according to preliminary figures from Asset-Backed Alert’s ABS...



Investors Flock to DealVector

Fri, 27 Mar 2020
DealVector has seen a surge in registrations for its deal model-hosting service.The interest comes from current and potential investors in aircraft-lease bonds. Their goal: to see how the securities respond to various stresses created by a decline in air travel caused by the coronavirus pandemic.On March 23, Fitch revised its outlook for aircraft-lease bonds from “stable” to “negative.” Pointing to potential credit-quality...



The Grapevine

Fri, 27 Mar 2020
Originators of home loans that fall outside the Consumer Financial Protection Bureau’s “qualified-mortgage” guidelines are pleading with warehouse lenders not to pull their financing amid the upheaval caused by the coronavirus pandemic. A loose coalition of originators calling themselves the NONQMAlliance is working feverishly to get the message out. “There are no performance issues on high-quality NONQM,” Bryan...



The Grapevine

Fri, 27 Mar 2020
Industry participants and the Structured Finance Association are trying to determine if the $2 trillion coronavirus aid package passed by the Senate this week, and expected to pass the House today, will help prop up bonds backed by small-business loans. The assistance includes $349 billion earmarked for new Small Business Administration loans. Loan proceeds put toward payroll, rent and utilities ultimately will be converted to grants,...



The Grapevine

Fri, 27 Mar 2020
Former S&P executive Philip Galgano resurfaced in Egan-Jones’ structured-finance rating unit a few weeks ago. He’s a senior director stationed in New York.Galgano had been working as an independent consultant after being caught in a round of layoffs at S&P in 2018. He’d been with the agency for nearly 21 years, most recently heading asset-backed commercial paper ratings in the U.S. Galgano’s resume also includes stops at...



The Grapevine

Fri, 27 Mar 2020
Former commercial-paper conduit operator Gary Miller joined electronic matchmaker Finitive last month as head of sales. The New York firm matches loan originators with institutional investors. Miller had spent the last five years as a consultant assisting clients with a variety of structured-product and blockchain-technology efforts. He previously focused on crisis-era investments at Verum Capital and, before that, spent nine years at Credit...



The Grapevine

Fri, 27 Mar 2020
Longtime securitization-technology specialist Frank Deutschmann has joined New York data company T-Rex in a product-management role. Deutschmann arrived from Simpl, a Mumbai company that bills customers on behalf of small merchants. He was chief technology officer there from October 2018 to December 2019. Before that, Deutschmann led business development at data-analytics company DV01, developed structured-product technology at FSI Capital and...



The Grapevine

Fri, 27 Mar 2020
Sales specialist David Cantor has left his post at Performance Trust, where he placed a variety of structured products. His plans are unknown. Cantor joined the Chicago broker-dealer in 2016 and most recently had been based in its New York office. He previously spent 14 years at Credit Suisse in a similar capacity and before that worked at Greenwich...



The Grapevine

Fri, 27 Mar 2020
Nomura has hired a structured-finance analyst. Khakan Haider joined the Tokyo bank this week as an associate in New York. Haider was most recently in the structured-finance group at Moody’s, which he joined in 2015.



Dealmakers Envision "TALF 2.0' Program

Fri, 20 Mar 2020
Faced with the potential for an extended slump in structured-product issuance, industry professionals are discussing a possible revival of the Federal Reserve’s Term Asset-Backed Securities Loan Facility.The talks so far have taken place only between private-market operations, with banks including Bank of America and Citigroup huddling with issuers including Ford and General Motors. While details remain unsettled, the next step would be to...



Funding Freeze Jeopardizes Online Lenders

Fri, 20 Mar 2020
The recent financial-market downturn is especially imperiling online personal lenders.Concerned that rising loan defaults will worsen as the economic impacts of the coronavirus outbreak take hold, warehouse suppliers have been pulling funding from originators — especially those catering to subprime borrowers. Sources pointed to Atalaya Capital, Fortress Investment, Garrison Capital, Jefferies, MidCap Financial and Pimco as being among...



Small-Business Loan Bonds in Crosshairs

Fri, 20 Mar 2020
Small-business lenders are facing a sudden and severe threat to their operations and to the performance of their securitized assets.Acting on their own accords or following orders from state and local governments, a vast number of small businesses nationwide have suspended or reduced operations amid the coronavirus outbreak. And lenders already are feeling the effects.Why small-business loans in particular? The accounts often carry greater...



Marathon Pulls Plug on Deal

Fri, 20 Mar 2020
Rapidly deteriorating market conditions prompted Marathon Asset Management to withdraw from buying a pool of mortgages after delivering the winning bid.Marathon had won the $50 million whole-loan pool from Ocwen Financial the week of March 9, but the company pulled out on March 17 on the advice of its investment committee.The bid was non-binding and subject to Marathon’s due diligence. As the crisis spawned by the coronavirus outbreak...



Conduit Industry on Precipice

Fri, 20 Mar 2020
The asset-backed commercial paper market is in disarray.With the coronavirus outbreak and oil-price collapse causing widespread turmoil across the finance industry, conduit professionals have been scrambling to determine the values of fresh conduit securities. In many cases, they’ve found that issuance costs have soared.What’s more, investors are largely shunning anything but one-day paper. That reflects a situation in which...



Lender Seizes Aspiring Issuer

Fri, 20 Mar 2020
(SEE CORRECTION BELOW) Hedge fund manager Atalaya Capital has assumed control of struggling personal-loan originator Sky Bridge Financial.Sources said the seizure took place last week after Sky Bridge defaulted on a $20 million funding facility that Atalaya supplied. Sky Bridge, which mainly offers debt-consolidation financing to subprime borrowers, has experienced higher-than-expected delinquencies among its accounts.There’s no word on what...



Student-Loan Waivers Lack Details

Fri, 20 Mar 2020
Education-finance professionals are struggling to understand which government-guaranteed accounts will qualify for interest waivers, and how securitizations might be affected.The lack of clarity built as President Trump said on March 6 that the government would suspend student-loan interest amid the coronavirus pandemic and the U.S. Department of Education later added that borrowers’ monthly payments would remain the same but would go...



Deals Stop as Buyers Run for Cover

Fri, 20 Mar 2020
Disruptions surrounding the coronavirus pandemic have brought the flow of new asset- and mortgage-backed securities to a standstill.While no fresh offerings appeared likely to price this week, the lack of supply didn’t reflect a hesitancy among sell-side professionals. Indeed, many issuers and bankers were expressing an eagerness to bring deals to market even as funding costs soared from what had been some of the lowest levels seen since...



Court Solution Seen for Libor Issue

Fri, 20 Mar 2020
Investors and trustees are exploring the idea of teaming up to seek judicial intervention for floating-rate securities whose terms lack provisions for the permanent cessation of Libor.The thinking is that under Article 77 the New York Civil Practice Law and Rules, those parties could present the New York State Supreme Court with adjustments agreed upon by significant numbers of bondholders and trustees.“We’re talking to as many...



CLO Managers Hunt for Bargains

Fri, 20 Mar 2020
Collateralized loan obligation managers continue to scour the leveraged-loan sector for bargain assets, but with a different approach than a week ago.With the financial-market rout making it virtually impossible to complete new CLOs, issuers have quickly abandoned the idea of carrying out “print-and-sprint” transactions in which they would sell bonds and then quickly collect the underlying loans at discounts. Instead, they are aiming...



Finance Pros Offer Lender Funding

Fri, 20 Mar 2020
Two longtime financing specialists with securitization experience have launched their own business-lending operation.John Eck and John Fernando set up their New York-based J2 Funding in recent weeks. The plan is to originate high-yield loans of $5 million to $25 million for small finance companies that aren’t large enough to obtain warehouse lines from banks.While J2 doesn’t plan to securitize its accounts, some of the firm’s...



CLOs See Increasing Defaults

Fri, 20 Mar 2020
Collateralized loan obligations’ holdings of defaulted assets grew in January. The 13 bp increase more than erased an 11 bp improvement that took place in December, bringing the median exposure for deals issued after the 2007-2008 market crash to 0.39%, according to Moody’s. Deals still in their reinvestment periods registered a 9 bp increase to 0.32%. Only the 2019 vintage saw no change.The deterioration came as issuers increasingly...



The Grapevine

Fri, 20 Mar 2020
The coronavirus pandemic has slashed job opportunities in structured finance, with executive recruiters saying most institutions have suspended hiring indefinitely. Job-seekers who were already engaged with a company before the virus took hold have been asked to conduct interviews via remote access. Few people, however, view that as an adequate substitute for traditional hiring methods. “Eventually you’re going to have to meet...



The Grapevine

Fri, 20 Mar 2020
Securitization attorneys are preparing for the possibility that deals will collapse as the market turmoil continues. One issue they’re focusing on is whether the fallout from the coronavirus outbreak will count as a “force majeure” event. That designation relieves parties from performing their contractual duties when circumstances beyond their control make performance inadvisable or impossible. Attorneys also are studying...



The Grapevine

Fri, 20 Mar 2020
Credit Chronometer, a blog published by law firm Davis & Gilbert, wrapped up its second annual subprime auto-loan survey in early March, with results showing participants’ biggest fear was an economic shock to vulnerable subprime borrowers. The firm is updating its study to reflect market sentiment given the worsening crisis and potential relief...



The Grapevine

Fri, 20 Mar 2020
Sales-and-trading specialist Joe Hornback left Nearwater Capital a few weeks ago, destination unknown. Hornback joined Nearwater in December 2017 as a senior director. Before that, he was at Mizuho. He also has worked at Auriga Global, Barclays, Goldman Sachs and Lehman Brothers. Nearwater helps issuers of asset-backed bonds and collateralized loan obligations finance risk-retention positions in their...



The Grapevine

Fri, 20 Mar 2020
Gaurav Singhal left Mill Hill Capital last week to rejoin his former employer, Macquarie. Singhal is a director in the New York office, where he trades collateralized loan obligations. He had been at Mill Hill since 2015, overseeing a pool of CLOs as a senior portfolio manager. Singhal first landed at Macquarie in 2010, working as a structured-product...



The Grapevine

Fri, 20 Mar 2020
Education lender Climb Credit has hired Zach Emig as head of capital markets. He’s based in New York, reporting to chief executive Angela Ceresnie. Emig arrived from Moody’s Analytics, where he worked in a business-development role following an unsuccessful run for a Staten Island congressional seat in 2018. Before that, he was at MUFG, working on a buildout of its structured-finance business. Emig earlier spent 10 years at Deutsche...



The Grapevine

Fri, 20 Mar 2020
Redwood Trust chief executive Christopher Abate quashed rumors this week that the company, a routine issuer of mortgage bonds, had stopped buying jumbo mortgages. “Don’t ask me how many times since the last crisis I’ve heard we stopped buying loans,” Abate said. “We’re a 26-year-old company, and rate sheets continue to go out every day. Zero disruption in clearing and funding commitments. We have obviously...



The Grapevine

Fri, 20 Mar 2020
Due-diligence shop Infinity IPS is looking for a sales representative to support its expanding residential home-loan valuation business. Candidates should have at least 10 years of experience. The position is based in the New York metropolitan area. Applicants should send resumes to Infinity chief executive Chandresh Mehta at cm@infinity-data.com.



Meltdown Spreads to Structured Finance

Fri, 13 Mar 2020
The coronavirus pandemic is roiling the structured-product market.Spreads on new deals and secondary-market offerings widened dramatically this week as industry participants joined their peers across the financial sector in seeking insulation from the looming economic downturn. Several offerings were called off altogether.Travel restrictions added to the disruptions, interrupting roadshows for new deals and leading to the cancelations of industry...



CLOs Jump on Leveraged-Loan Rout

Fri, 13 Mar 2020
Amid this month’s sharp selloff in the leveraged-loan market, opportunities are emerging for collateralized loan obligation issuers to quickly assemble deals with the expectation of acquiring discounted assets after the transactions close.GSO Blackstone and Neuberger Berman were the first to jump on the dislocation, with GSO pricing a $500 million CLO on March 6 and Neuberger completing a $504.4 million issue on March 9. There also was talk...



Allstate Cuts Off New Investments in ABS

Fri, 13 Mar 2020
Allstate Investments has stopped buying asset- and mortgage-backed securities.The freeze took place in late February, applying to all purchases of asset-backed bonds, residential mortgage bonds and commercial mortgage securities. But Allstate continues to invest in collateralized loan obligations.As part of the move, Allstate dismissed portfolio manager Kelly Bivens. His last day was March 1.A source said Allstate’s retreat resulted in part...



A&D to Issue Non-QM Bonds

Fri, 13 Mar 2020
A&D Mortgage, a major supplier of home loans to issuers of non-qualified mortgage bonds, is about to start selling its own securities via its Imperial Fund affiliate, with longtime structured-finance professional Jeffrey Nabi spearheading the effort.The Hollywood, Fla., lender is aiming for June to float its first securitization of accounts that fall outside the Consumer Financial Protection Bureau’s “qualified-mortgage”...



Mission Lane Eyeing Deal

Fri, 13 Mar 2020
Credit-card lender Mission Lane is laying the groundwork for its first securitization.The San Francisco company has been meeting with investors over the past month to generate interest in a deal that would hit the market in the second half of this year or in early 2021. It also has spoken recently with rating agencies and underwriters. The transaction, with an expected size of $150 million, would be backed by credit-card accounts Mission Lane...



Buzz Surrounds SoFi Card Program

Fri, 13 Mar 2020
The planned addition of credit cards to Social Finance’s product mix has quickly prompted talk that the company will fund those accounts through securitization.While no official plans are in place, industry participants expect that SoFi could begin issuing card bonds in the first half of 2021. The offerings would complement the San Francisco company’s existing activities as an issuer of securities backed by personal loans and student...



Mortgage Reprieves Add Uncertainty

Fri, 13 Mar 2020
Mortgage-bond professionals are struggling to assess the impact of potential payment suspensions for home loans in Italy.With economic activity in the nation essentially frozen by the coronavirus outbreak, Italian finance minister Laura Castelli said on March 10 that some borrowers would be allowed to skip installments. There also could be payment holidays for small businesses.U.K. officials are considering similar measures.Details are sketchy,...



Fed Lengthens SOFR Input Window

Fri, 13 Mar 2020
The Federal Reserve’s Alternative Reference Rates Committee has extended the deadline for comments on how to adjust spreads for certain securities whose benchmarks will change to the Secured Overnight Funding Rate upon the phase-out of Libor.The Fed originally set a March 6 date for feedback. The new date is March 25, after which the committee will suggest specific calculations.The Fed’s proposal would apply to asset-backed bonds and...



Subprime Borrowers Fall Behind

Fri, 13 Mar 2020
Delinquencies among securitized pools of subprime mortgages continued their upward trend in February.According to an index maintained by Kroll, the volume of loans in the category that were at least 60 days past due rose 15 bp for the month to 2.56%. The measure of accounts at least 90 days late was up 20 bp, to 1.75%. Subprime-loan delinquencies have been on a gradual upward trend since 2019, as increasing prepayments by stronger borrowers left...



Libor Proposal Speeding Along

Fri, 13 Mar 2020
A proposal that would create an automatic replacement for Libor promises to quickly ease uncertainty about what will happen when the benchmark phases out.After more than a year of development, the Federal Reserve’s Alternative Reference Rates Committee suggested on March 6 that New York State lawmakers pass legislation that would override existing financial-contract language governing benchmark replacements. A key component would be the...



Former Arch Exec Pulls Lawsuit

Fri, 13 Mar 2020
The former head of Arch Capital’s mortgage-insurance business has withdrawn a wrongful-termination lawsuit against the company.Andrew Rippert had filed the complaint on Oct. 29 in U.S. District Court in Boston. He withdrew the action on Feb. 11.Rippert held the title of chief executive within Arch’s mortgage-product business, a role in which he led the Bermuda company’s mortgage-insurance, reinsurance and risk-transfer...



Borrowers Catch Up on Auto Loans

Fri, 13 Mar 2020
Performance indicators for securitized pools of subprime auto loans improved during the month ended Feb. 15.According to an index maintained by Fitch, delinquencies in the category fell 21 bp during the period to 5.62% while losses dropped 5 bp to an annualized 9.42%. While both figures had worsened in the previous month due to holiday overspending by borrowers, the expectation is that more improvements will take place in the coming months as...



The Grapevine

Fri, 13 Mar 2020
It turns out the Barclays employee who tested positive for the coronavirus previously attended the Structured Finance Association’s “SFVegas 2020” conference in Las Vegas on Feb. 23-26. The employee, a trader in New York, went into self-quarantine March 3 after learning of possible exposure to the virus, Barclays confirmed. It’s unclear how long the employee had been displaying symptoms or if his exposure took place before...



The Grapevine

Fri, 13 Mar 2020
Tom Dial is joining Mountainview Financial in a senior vice president role that will have him assign values to whole loans and to bonds backed by residential and commercial mortgages. Dial starts on March 16 in New York. He arrives from Duff & Phelps, where he held a similar position since 2015. Dial previously spent nearly five years on a “bad-bank” team charged with unwinding the structured-product holdings of failed Belgian bank...



The Grapevine

Fri, 13 Mar 2020
Ilya Klets left Qwil last month to take a job as a managing director at Silicon Valley Bank of Santa Carla, Calif. Klets is among several new hires at the bank, whose businesses include offering warehouse lines to originators of auto loans, personal loans and small business loans and then helping to bundle those loans into asset-backed bond deals. At Qwil, which offers cash advances to a range of borrowers, Klets was head of credit, helping to...



The Grapevine

Fri, 13 Mar 2020
Tony Mun, who has a background in mortgage-bond sales, started this week as a vice president in PennyMac’s whole-loan pricing and strategy group. Mun, who’s stationed in Los Angeles, was most recently a sales strategist at Stackfolio. Before that, he briefly ran his own consulting shop. Mun also has worked at Piper Jaffray, Gleacher & Co., Ally Securities, Deutsche Bank, Nomura and Credit...



The Grapevine

Fri, 13 Mar 2020
Obinna Eke has resurfaced as a principal at Apollo Global and as head of investor relations at affiliate Redding Ridge Asset Management, which issues collateralized loan obligations on Apollo’s behalf. Eke, based in New York, started last week. He previously headed the CLO syndicate desk at BNP Paribas, where he worked from 2011 to October 2019. He also has logged time at Goldman Sachs. Redding Ridge has issued nine CLOs totaling $4.9...



The Grapevine

Fri, 13 Mar 2020
Credit Suisse is seeking two capital-markets professionals for its New York office. One director-level position involves pitching, structuring and executing mortgage securitizations. Candidates should have at least 10 years of experience. The bank also is seeking a securitization and warehouse-lending attorney. The candidate would provide guidance on regulatory requirements, review documents and coordinate with external counsel on transactions....



The Grapevine

Fri, 13 Mar 2020
Loan-analytics shop DV01 is seeking a mortgage-bond data analyst with a background in loan transactions, deal documents and trustee reporting. Candidates must have five years of experience..END



Hunton Guiding Oil Securitizations to Market

Fri, 06 Mar 2020
The 2018 formation of law firm Hunton Andrews spawned a project that could soon lead to two new classes of oil-and-gas securitizations.On one side of the effort, Hunton has proposed to several companies in Texas that they could form REITs to hold their petroleum transportation, processing and storage infrastructure — and then securitize the so-called midstream cashflows produced by those facilities. The initial focus there is on deals...



Incomplete Fallbacks Attracting Opportunists

Fri, 06 Mar 2020
The planned phaseout of Libor is giving rise to an investment strategy focused on purchasing floating-rate structured products that lack robust provisions for the selection of new benchmarks.Several unidentified investors already are amassing capital pools that they would deploy using the opportunistic approach. The idea: to buy the bonds today, typically at discounts, and pursue legal claims against the issuers should the replacement benchmarks...



BofA's Silverstein Jumps to New Residential

Fri, 06 Mar 2020
Baron Silverstein is stepping down as head of mortgage-bond underwriting at Bank of America to join New Residential Investment, reuniting with former boss Michael Nierenberg.Silverstein, a managing director, informed BofA on Feb. 28 that he would leave the bank’s New York office in two weeks. Sources characterized his job at New Residential as a supervisory role tied to the REIT’s various mortgage-securitization programs.BofA Managing...



CLO Issuers Jump On Loan Selloff

Fri, 06 Mar 2020
A leveraged-loan selloff over the past week created an attractive opportunity for issuers of recent collateralized loan obligations to pick up assets faster and at lower prices.But those who offered new CLOs paid a price, as spreads on mezzanine securities widened. Take a $507.9 million deal that Bain Capital priced on March 3 with Jefferies as arranger. It included a class of bonds with double-B-minus ratings that priced at 825 bp over...



Manor Portfolio in Final Throes

Fri, 06 Mar 2020
The last of Manor Resources’ subprime auto loans are running off.Manor, which had been positioning itself to issue asset-backed bonds, shut down in 2018 and transferred servicing of its $100 million asset pool to Vervent Servicing. A source said the portfolio is scheduled to finish unwinding within the next six months.Chicago-based Manor wrote auto loans to “deep-subprime” borrowers with credit scores of 500 or lower. It also...



Volatility Slows New Issuance

Fri, 06 Mar 2020
Investors found fewer deals than expected in the asset- and mortgage-backed bond market this week.Industry participants were anticipating a busy week following the Structured Finance Association’s “SFVegas 2020” gathering, which took place Feb. 23-26 in Las Vegas. But broad market volatility sparked by fears about the economic effects of the coronavirus outbreak and early uncertainty over the outcome of the Democratic primary...



Hiring Shifts to Sales, Trading

Fri, 06 Mar 2020
The employment outlook is brightening for structured-product sales and trading specialists, while dimming for bankers.As factors including the coronavirus outbreak and the upcoming presidential election raise the specter of continued financial-market turmoil, executive recruiters say banks and broker-dealers recently have signaled plans to expand their secondary-market desks — which had been contracting for years.Meanwhile, the same...



Issuance Outlook Dims for Ascentium

Fri, 06 Mar 2020
Ascentium Capital’s planned takeover by Regions Bank could spell the end of the equipment lender’s securitization program.Ascentium had emerged as a routine issuer since entering the market in 2012. Because Regions has sufficient capital to hold the company’s receivables on its balance sheet, however, the expectation is that the need to securitize will be reduced or eliminated.Indeed, Regions executives have told investors that...



FirstKey Program Keeps Producing

Fri, 06 Mar 2020
FirstKey Mortgage is quickly following up on its second securitization of manufactured-housing loans.Sources said they expect the New York company’s third deal to hit the market during the July-September stretch.The second deal, totaling $507 million, is expected to price today with Bank of America and J.P. Morgan running the books. The underlying loans were written an average of 10 years ago.FirstKey entered the market for bonds backed by...



Samas Adds to PACE-Fund Series

Fri, 06 Mar 2020
Samas Asset Management is starting a second fund that would accumulate and eventually securitize commercial Property Assessed Clean Energy loans.The Coral Gables, Fla., firm is aiming for mid-April to launch the vehicle. It eventually is aiming to raise $100 million.Like the first fund, which formed in February, the new entity would buy loans that affiliate Samas Capital writes to finance energy-efficiency improvements of $10 million or less....



Prime Personal Loans Slipping

Fri, 06 Mar 2020
Performance indicators continued to worsen for securitized pools of prime-quality personal loans in February.According to an index maintained by Kroll, delinquencies among so-called Tier 1 accounts rose 6 bp for the month to 1.57%, an all-time high. Losses in the category were up 4 bp to an annualized 6.21%, testing a record of 6.25% set in November. Tier 1 accounts, written by Marlette Funding and Social Finance to borrowers with credit scores...



The Grapevine

Fri, 06 Mar 2020
Salesman Michael Fahy left J.P. Morgan last week after 16 years at the bank. Fahy, an executive director in San Francisco, sold securities backed by credit-card accounts, auto loans, student loans and personal loans, along with mortgage-backed securities, collateralized loan obligations and other credit products. Fahy started at J.P. Morgan directly out of college. He plans to take time off before returning to the...



The Grapevine

Fri, 06 Mar 2020
Attorney Louis Shansky this week gave up his post as general counsel at personal-loan originator Upgrade to join Thrive. Shansky is general counsel and chief compliance officer at the San Francisco company, which arranges lines of credit for college students and recent graduates based on future earnings. Shansky joined Upgrade in 2018 from the securitization practice at Mayer Brown, where he was a partner. He also has worked at Katten...



The Grapevine

Fri, 06 Mar 2020
Former S&P executive Michael Binz took a job last month as president of a White Plains, N.Y., commercial property-management company, City Wide of Westchester. He’s overseeing its operations in Westchester County, Rockland County and the Bronx. Binz left S&P in August 2019. He had been at the agency since 1997, filling various roles within its structured-finance division. Binz was most recently head of business development and sales. He...



The Grapevine

Fri, 06 Mar 2020
John Deere is seeking a senior counsel for its securities and treasury unit in Moline, Ill. The recruit would support the equipment lender’s borrowing programs, including its securitizations. Deere began issuing asset-backed bonds in 1992 and lately has been floating two deals per year, most recently pricing a $1 billion transaction on March 4. The company is focusing on candidates with at least 10 years of experience. To apply, click on...



The Grapevine

Fri, 06 Mar 2020
Finitive co-founder Christopher Johnson has left the New York technology company, destination unknown. Johnson formed Finitive in 2017 with Eaglewood Capital founder Jon Barlow. The company matches loan investors with a mix of originators. Johnson was previously a managing director at Prospect Capital, with earlier stops at Berenson & Co., Deutsche Bank and Merrill...



The Grapevine

Fri, 06 Mar 2020
Startup loan servicer Scratch has hired away J.P. Morgan associate Deanna Song to aid in a move into mortgages in coming months. Song left J.P. Morgan this week. Her start date at Scratch is unknown. The San Francisco operation currently services student loans and personal loans. Song had been at J.P. Morgan since 2016, working in the firm’s mortgage-finance unit in New...



The Grapevine

Fri, 06 Mar 2020
Credit-card lender Synchrony Financial is seeking a vice president for its treasury and securitization unit. The recruit’s duties would include monitoring securitization operations and ensuring that deals meet compliance requirements. Synchrony issued two securitizations last year totaling $1.6 billion. The position, in Stamford, Conn., requires at least eight years of experience. To apply, click on “careers” at synchrony.com...



The Grapevine

Fri, 06 Mar 2020
Online personal-loan buyer Pagaya Investments is seeking a capital-markets professional for its New York office. The recruit would focus on financial operations, cash management and compliance for the firm’s funds and securitization program. Candidates should have at least two years of experience. Pagaya is collecting applications on LinkedIn. The Tel Aviv company has issued six unrated personal-loan securitizations. Its most recent deal, a...



JP Morgan Expanding Jumbo Bond Issuance

Fri, 28 Feb 2020
J.P. Morgan is preparing for another big increase in its output of jumbo-mortgage bonds, with a new legal counsel aiding in the effort.Expectations are that the bank could offer $20 billion of such securities this year, an output it last achieved before the financial crisis. The institution already has completed three offerings totaling $2 billion since Jan. 1, with Hunton Andrews stepping in for Sidley Austin as both issuer and underwriter...



SEC Meeting Shakes Up Rating Agencies

Fri, 28 Feb 2020
The SEC held a closed-door meeting with issuers and investors on Feb. 25 to discuss what could be a major change in policy for structured-product ratings.The sit-down, at the Structured Finance Association’s “SFVegas 2020” conference, came a day after SEC officer Jessica Kane acknowledged publicly in a keynote address that the regulator was rethinking how it aims to reduce “rating shopping.”But the private discussion...



Economic Uncertainty Drags Down CRTs

Fri, 28 Feb 2020
The values of agency risk-transfer securities slid this week, displaying a continued correlation to the equity market.Class-M2 bonds issued under Fannie Mae’s Connecticut Avenue Securities program and Freddie Mac’s Structured Agency Credit Risk Debt Notes with three-year lives and triple-B-plus ratings were trading on the secondary market at 263 bp over one-month Libor on Feb. 27. On Feb. 24, similar paper was trading 15 bp...



Non-QM Strength Raises Call Risk

Fri, 28 Feb 2020
Mortgage-bond investors are growing concerned that issuers soon will retire some of their securities ahead of schedule.The worries appear isolated to transactions backed by loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards. The thinking is that with new-deal spreads on a long tightening trend, some issuers in that asset class might be enticed to collapse their existing...



Extensions Plague Subprime Autos

Fri, 28 Feb 2020
Buyers of subprime auto-loan securities are again sounding alarms over a practice in which issuers grant payment extensions to struggling borrowers.While such fears have been present for a few years, the latest bout of nervousness reflects an occurrence in which extensions have been increasing in frequency for certain asset pools at the same time that borrower delinquencies have been rising.An extension takes the form of a payment reprieve...



Lender Charting Credit-Card Issue

Fri, 28 Feb 2020
The debut securitization from subprime credit-card lender Deserve is taking a bit longer than expected, but continues to inch closer to the market.Talk had been circulating that Deserve was aiming for yearend 2019 to complete the deal. But sources said the Menlo Park., Calif., company held off to build more investor interest and to nail down additional funding.To that end, Deserve this week secured a $100 million credit facility from Credit...



Investors Paying Up for New CLOs

Fri, 28 Feb 2020
Spreads on senior collateralized loan obligation notes continue to tighten.The trend began amid light new-deal supply in January, as rising values among junk-rated corporate loans made it difficult to acquire collateral for new offerings. At the same time, heavy CLO-refinancing activity put money back in the hands of investors — with few places to redeploy it.But even as the volume of new CLOs picked up in February, supply-and-demand...



PHEAA Portfolio Takes Shape

Fri, 28 Feb 2020
Details are emerging about the collateral for the Pennsylvania Higher Education Assistance Agency’s first securitization of private student loans.The $48 million deal, led by Bank of America, is backed entirely by loans to students still in school. Left out are accounts that refinance the debts of graduates, which PHEAA began writing this month.The offering was set to price this week with ratings from Moody’s and S&P. The initial...



Moody's Finalizing Non-QM Push

Fri, 28 Feb 2020
Moody’s is entering the final stage of developing a new approach to rating securitizations of home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards.Continuing a project it started in 2019, the agency took comments from market participants from Dec. 9 to Jan. 22. It since has begun reviewing the feedback in anticipation of releasing its policies by the end of the third...



No Change for IMN Conference

Fri, 28 Feb 2020
Information Management Network is rebutting rumors that it plans to change the venue of its annual “ABS East” conference.The event, scheduled for Oct. 5-7 at the Fontainebleau Hotel in Miami Beach, has seen its attendance rise in recent years — with a record 5,000-plus expected to attend this year. Characterizing that figure as testing the Fontainebleau’s capacity, some industry participants have been chattering about the...



The Grapevine

Fri, 28 Feb 2020
Violet Diamant, who spearheaded Morningstar’s entry to asset-backed securities ratings, joined BNY Mellon’s corporate-trust unit this month as a director. Diamant worked at Morningstar from 2014 to 2016, establishing rating criteria and assembling a team. She most recently had been working in a contract role for the securitized-product group at BMO Capital. Before joining Morningstar, Diamant was at Credit Agricole and...



The Grapevine

Fri, 28 Feb 2020
Christopher Smith left Sunnova Energy this month to serve as chief financial officer at San Francisco private equity shop SER Capital. Smith had held the same title at Sunnova on an interim basis since 2018. SER invests in renewable-energy companies. Prior to Smith’s stint at Sunnova, he was the treasurer at clean-energy investor Hannon Armstrong for three years. He’s also logged time at Carl Marks Advisors, Energy Management, Merrill...



The Grapevine

Fri, 28 Feb 2020
Hunton Andrews has added attorney Ian Ludd as an associate focused on mortgage securitizations. Ludd arrived in the firm’s New York office this week from Mackenzie Hughes, a Syracuse, N.Y., firm where he worked on capital-markets transactions.



The Grapevine

Fri, 28 Feb 2020
Gabriele Scala has joined the capital-markets group at Dentons as an associate. Scala started last month in the law firm’s New York office. He previously held a similar position at Zeldes Needle in Bridgeport, Conn.



The Grapevine

Fri, 28 Feb 2020
BNY Mellon has hired two client-focused employees. Patrick Drennan, a director for business development, previously worked at BNY from 2000 to 2016, with a later stop at RBC. Relationship manager Joe Chung joins the bank from State Street’s fund-administration unit, IFS. Chung previously worked at Citigroup and EQA Partners.



The Grapevine

Fri, 28 Feb 2020
Cross River Bank added a member to its capital-markets group this month. While his precise duties are unknown, Cem Gultekin most recently was a senior analyst at financial-technology company Paxos. Prior to that, he spent time at LiveDwell, a real estate startup, and Remy, an information-technology company. Gultekin joins another recent capital-markets hire at Cross River. Analyst Jin Ahn arrived in December from Deutsche Bank, where he was an...



The Grapevine

Fri, 28 Feb 2020
Lord Abbett is seeking an asset-backed bond portfolio manager for its taxable fixed-income group in Jersey City, N.J. The recruit would work with a team of investment professionals to oversee the fund manager’s holdings of rated bonds, provide credit analysis and manage risk. Candidates should have at least five years of experience.



The Grapevine

Fri, 28 Feb 2020
Longtime asset-backed bond professional Justin Tisler has launched Car Capital Technologies, a company that helps car dealers around the U.S. line up financing and offers them regulatory support. Tisler will continue to serve as treasurer at Fair Financial, a Santa Monica, Calif., auto-loan originator he joined in 2016. Before landing at Fair, Tisler was president of financial advisory shop KentMoore Capital. He earlier headed the asset-backed...



The Grapevine

Fri, 28 Feb 2020
A record 8,200 people attended the Structured Finance Association’s “SFVegas” conference in Las Vegas on Feb. 23-26. That was up from 8,050 at last year’s event, also at the Aria Resort & Casino. The trade group will hold its 2021 conference on Feb. 28-March 3 at the same venue.



SFA Navigates Massive Conference Crowd

Fri, 21 Feb 2020
The Structured Finance Association is putting its own stamp on its annual Las Vegas conference.Planning for “SFVegas 2020” has taken into account lessons the trade group learned as the solo host of the 2019 version of the event, which it previously organized alongside Information Management Network. High on the list: additions that seek to address a frustrating arrival and sign-in process.For example, the SFA has developed a mobile...



Crucial Period Ahead for Card-Bond Sector

Fri, 21 Feb 2020
The next two months should clear up uncertainty about this year’s U.S. credit-card securitization volume.An estimated $15 billion of outstanding credit-card bonds will come due in March and April — a figure representing almost half of this year’s scheduled maturities. The key question is the extent to which issuers will re-fund those deals’ collateral accounts by issuing new securities.Historically, re-funding activity has...



Pensions Bullish on Reverse-Mortgage Bonds

Fri, 21 Feb 2020
Pension systems are emerging as heavier buyers of reverse-mortgage bonds.The orders began to flow about a month ago, with money managers including BlackRock, Fidelity Investments, State Street and Vanguard Group overseeing the investments on behalf of corporate retirement plans, including some that were new to reverse-mortgage securities.The influx of demand doesn’t appear to be over, as a number of corporate pension systems still are...



Nearwater Launching CP Vehicle

Fri, 21 Feb 2020
Nearwater Capital is starting another commercial-paper conduit.The vehicle, Mackinac Funding, is slated to launch in March. Its paper would carry P-1/A-1 ratings from Moody’s and S&P, with maturities ranging from overnight to 397 days.The conduit eventually could have several billion dollars of securities outstanding.Mackinac essentially would replicate a conduit called Columbia Funding that Nearwater launched in June. That entity, with $2...



Bidders Advance on Assurant Unit

Fri, 21 Feb 2020
Assurant appears to be nearing a sale of its collateralized loan obligation-management business.The New York insurer has been shopping the program for at least three months, possibly as part of a deal encompassing its broader asset management unit. Now talk is circulating that the company has engaged Berkshire Global to represent it in the process, and could strike an agreement with a buyer in the coming weeks.While there are a number of...



Gracie Point Preps Insurance Deal

Fri, 21 Feb 2020
Gracie Point, a New York originator of insurance-premium loans, is preparing its fifth securitization — while making a few leadership changes.The deal is expected to hit the market in the next couple of months with an estimated size of $15 million. Cantor Fitzgerald will serve as bookrunner. Gracie Point’s most recent offering, a $14.5 million transaction, priced in August 2018 via Cantor.Executives from Gracie Point are expected to...



"Bond Buckets' Developing Quickly

Fri, 21 Feb 2020
A collateralized loan obligation that allows for exposures to high-yield corporate bonds could take place in the next few weeks.The expectations stem from a Jan. 30 proposal from the Federal Reserve, SEC, Commodity Futures Trading Commission, FDIC and Comptroller of the Currency under which banks would have more freedom to invest in so-called covered funds. Among the newly allowed positions would be CLOs with “bond buckets”...



Virus Dims Solar-Panel Outlook

Fri, 21 Feb 2020
The coronavirus outbreak is delaying the delivery of solar-power equipment from China, goods that often are financed through securitization.Sources said it may still be too early to tell if the supply-chain interruptions will have a measurable impact on asset-backed bond volume. Rather, the most immediate concerns involve the possibility that the setbacks could jeopardize funding that so-called tax-equity investors supply for some U.S....



Vegas Event Shuts Down Issuance

Fri, 21 Feb 2020
Offerings of new asset- and mortgage-backed bonds in the U.S. took an unexpected breather this week.While the flow of fresh offerings was seen as sure to dwindle during the Structured Finance Association’s “SFVegas” conference on Feb. 23-26, the thought was that activity would remain high in the days leading up to the event. But preparations for the gathering at the Aria Resort & Casino in Las Vegas apparently proved a bigger...



Auto Lenders to Clear Logjam

Fri, 21 Feb 2020
After a quiet February, subprime auto lenders are preparing to float a large volume of asset-backed bond offerings in March.As was the case in other asset classes, issuers in the sector have pulled back amid preparations for the Structured Finance Association’s “SFVegas 2020” conference in Las Vegas. But the retreat has been especially pronounced for subprime auto-loan deals, with separate deals from Credit Acceptance Corp. and...



REGULATORY ROUNDUP

Fri, 21 Feb 2020
Industry Professionals Await Mortgage-Agency PrivatizationThe Trump Administration’s fast-developing efforts to remove Fannie Mae and Freddie Mac from government conservatorship remain at center stage among regulatory actions that could affect the securitization industry.Under the supervision of Federal Housing Finance Agency head Mark Calabria, the government hired Houlihan Lokey on Feb. 3 to serve as financial advisor for the effort. Part...



REGULATORY ROUNDUP

Fri, 21 Feb 2020
Libor — Federal ReserveWith Libor reporting set to cease as soon as yearend 2021, issuers of floating-rate securities in most asset classes are drafting new-deal documents to include “fallback language” that spells out the process for instituting replacement benchmarks. Most are favoring the Federal Reserve’s Secured Overnight Funding Rate, while generally following procedures recommended by the central bank’s...



REGULATORY ROUNDUP

Fri, 21 Feb 2020
Mortgage Agencies — FHFAThe Federal Housing Finance Agency hired investment-banking firm Houlihan Lokey on Feb. 3 to serve as financial advisor on the Trump Administration’s planned recapitalization of Fannie Mae and Freddie Mac. Houlihan’s initial duties include recommending banks to arrange a stock sale that would return the mortgage agencies to private ownership, possibly in the first half of 2021. At a combined $150 billion...



REGULATORY ROUNDUP

Fri, 21 Feb 2020
Risk Retention — CFPB, FHFAMortgage-bond issuers may get a break from the Dodd-Frank Act’s risk-retention rule. As currently written, the regulation instructs an issuer to keep a 5% stake in any securitization containing home loans that don’t comply with the Consumer Financial Protection Bureau’s “qualified-mortgage” guidelines. But the CFPB and Federal Housing Finance Agency appear to be warming up to the idea...



REGULATORY ROUNDUP

Fri, 21 Feb 2020
Student Loans — Department of EducationPresident Trump’s annual budget proposal includes the elimination of a U.S. Department of Education program that forgives federal student loans for borrowers employed in certain public-service fields. Among those accounts are Federal Family Education Loan Program credits that reside in securitization pools, suggesting a potential reduction in prepayments for bondholders. But Trump also is...



REGULATORY ROUNDUP

Fri, 21 Feb 2020
Covered Funds — FedA Jan. 30 proposal from the Federal Reserve, SEC, Commodity Futures Trading Commission, FDIC and Comptroller of the Currency would loosen restrictions on investments by banks under the Dodd-Frank Act’s Volcker Rule, including an allowance for exposures to collateralized loan obligations whose asset pools contain allocations of up to 5% for bonds. Those deals have been off limits since 2015 under a prohibition on...



REGULATORY ROUNDUP

Fri, 21 Feb 2020
Common Securitization Platform — FHFAThe Trump Administration’s plan to remove Fannie Mae and Freddie Mac 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, with Freddie first using it for a June 3 deal. The expectation is that once privatized, Fannie and Freddie would be less likely to employ...



REGULATORY ROUNDUP

Fri, 21 Feb 2020
Marketplace Lending — OCC, FDIC, TreasuryA rule proposed in November by The Comptroller of the Currency and FDIC would clarify that a permissible interest rate for a loan written by a national bank would remain valid when the account is sold or transferred. Such a “valid-when-made” policy would ease uncertainty stemming from the 2015 case of Madden v. Midland Funding, in which a U.S. Appeals Court panel in New York ruled that...



REGULATORY ROUNDUP

Fri, 21 Feb 2020
Qualified Mortgages — CFPBConsumer Financial Protection Bureau head Kathy Kraninger told Congress on Jan. 21 that the agency will delay the January 2021 expiration of a “patch” that allows Fannie Mae and Freddie Mac to buy home loans falling outside its “qualified-mortgage” guidelines. But Kraninger believes the extension will be short, lasting only until a new policy is implemented or Fannie and Freddie emerge from...



REGULATORY ROUNDUP

Fri, 21 Feb 2020
Regulation AB — SECStructured Finance Association representatives plan to meet with the SEC in March to discuss a potential easing of Regulation AB. But before that, issuers and investors in the trade group’s membership are expected to weigh in on the changes they want, primarily a reduction in disclosure requirements for SEC-registered securitizations. Such offerings have been rare following the 2016 implementation of an update known...



REGULATORY ROUNDUP

Fri, 21 Feb 2020
Trade Reporting — FinraFinra remains mum on when it will add trade-by-trade data on mortgage bonds and collateralized loan obligations to the secondary-market activity detailed via its Trade Reporting and Compliance Engine. Disclosure has been delayed since 2017, with the agency releasing only aggregate data. By contrast, Finra has been releasing Cusip numbers, sizes and times for every trade of asset-backed securities since December...



Axonic Offers Aircraft-Finance Play

Fri, 21 Feb 2020
Axonic Capital has launched a hedge fund that invests in securitizations of commercial-aircraft assets.The New York firm started trading its Axonic Aviation Fund this month, pursuing positions in the double-B rated subordinate classes and unrated equity components of its targeted deals.The aim is to produce returns in the neighborhood of 15% before fees, according to sister publication Hedge Fund Alert. Marketing materials emphasize...



Asset Defaults Subside for CLOs

Fri, 21 Feb 2020
The amount of defaulted assets held by collateralized loan obligations fell in December after rising over the previous two months. The 11 bp decline brought median holdings of defaulted assets for CLOs issued after the 2007-2008 financial crisis to 0.26%, according to Moody’s. Deals still in their reinvestment periods registered a 10-bp decline, to 0.23%. And only the 2014 vintage saw an increase, rising 1 bp to 0.82%. The broad...



The Grapevine

Fri, 21 Feb 2020
Lauren Basmadjian has departed Octagon Credit for Carlyle Group. While Basmadjian’s precise duties as a New York-based employee of Carlyle are unknown, she was a senior portfolio manager at Octagon, at one point working with founder Andrew Gordon on a fund that invested in the equity pieces and subordinate tranches of the firm’s own collateralized loan obligations. She joined Octagon out of business school in 2001 and later earned a...



The Grapevine

Fri, 21 Feb 2020
Paul Tedeschi has left broker-dealer Brean Capital for parts unknown. Tedeschi, a managing director at Brean, focused on structuring and selling collateralized loan obligations. He joined the firm in 2018 via its merger with Hunt Financial, where he had worked in a similar role since 2017. Tedeschi earlier spent eight years at Spring Hill Capital. He began his career at Lehman...



The Grapevine

Fri, 21 Feb 2020
Sales specialist Sean Begley starts today as head of business development at Cape Analytics, a property-data company serving clients in the insurance, real estate and mortgage industries. Begley initially is working with investors in nonperforming and reperforming loans. He arrives at the Mountain View, Calif., company from RiskSpan, where he was a senior managing director. The move reunites Begley with former colleague Raj Dosaj, who joined Cape...



The Grapevine

Fri, 21 Feb 2020
The Structured Finance Association’s “SFVegas 2020” conference will include a panel discussion on the implications for securitization should a Democrat win the White House. The late addition reflects a marked uptick in discussions between attorneys and clients about that possibility, and the likely increase in regulatory controls that would result. The Feb. 24 session, “2020 Elections,” will feature Reed Auerbach,...



The Grapevine

Fri, 21 Feb 2020
Kroll is seeking an analyst to cover securitizations of receivables including equipment leases, small business loans, aircraft leases and railcar leases in New York. Candidates must have 5-7 years of experience.



The Grapevine

Fri, 21 Feb 2020
Small-business lender Funding Circle is looking for a director for U.S. asset-backed bond structuring and execution and a vice president for U.S. asset-backed bond sales. Candidates for the structuring position can work in either San Francisco or New York and should have at least eight years of experience. Candidates for the sales position, in New York, should have a six-year track...



The Grapevine

Fri, 21 Feb 2020
A Bloomberg staffer who helped arrange risk-management and regulatory services for banks left about a month ago. Mary Sue Lundy plans to spend the foreseeable future traveling. Lundy had been at Bloomberg since 2010. Before that, she served a long tenure at Fitch in which she rated asset- and mortgage-backed securities and taught employees the mechanics of credit-risk analysis and...



The Grapevine

Fri, 21 Feb 2020
Morgan Stanley is seeking a non-agency mortgage-bond trader for its New York office. Candidates should have experience trading mortgage bonds and residential whole loans. To apply, go to morganstanley.com and click on “experienced professionals” under the “people” tab. The job number is 3146189.



Merger Rekindles Cellphone Securitization

Fri, 14 Feb 2020
With their merger looking like a done deal, T-Mobile and Sprint have quickly reopened talks to sell bonds backed by installments on customers’ mobile devices.Shortly after a U.S. District Court judge ruled on Feb. 11 that T-Mobile could proceed with its planned purchase of Sprint, treasury officials from two companies approached bankers and rating-agency analysts about a joint deal of perhaps $1 billion. Expectations are that the offering...



Subordinate Bonds Ground KKR Transaction

Fri, 14 Feb 2020
KKR has pulled its latest aircraft-lease securitization from the market.The $629.8 million offering appeared to be well on its way to pricing after bookrunners BNP Paribas, Citigroup and Goldman Sachs started lining up investors in late January. But KKR put the effort on hold this week amid tepid demand for the transaction’s subordinate notes.The move left industry participants struggling to explain why the bonds didn’t sell. Some...



Fund Operator Maps C-PACE Issuance Plan

Fri, 14 Feb 2020
An affiliate of commercial Property Assessed Clean Energy lender Samas Capital is starting a series of funds that would purchase some of its parent’s loans for eventual securitization.Samas Asset Management of Coral Gables, Fla., is working to raise $100 million for the first vehicle. With a minimum contribution of $250,000, the offering is aimed at investors that otherwise may lack the large lump sums needed for direct exposures to...



SocGen Leadership Keeps Growing

Fri, 14 Feb 2020
Societe Generale has added a head of analytics to its securitization unit, continuing a recent growth effort.John D’Elisa is expected to arrive in the bank’s New York office on Feb. 18, with a coverage area spanning both asset-backed bonds and commercial mortgage bonds. He will report to asset-backed securities underwriting chief John Cho.D’Elisa most recently headed a financial-engineering group within Deutsche Bank’s...



Personal-Loan Shop Eyeing IPO

Fri, 14 Feb 2020
In a move that could diminish its near-term securitization needs, consumer lender Republic Finance is planning to go public.Sources expect the Baton Rouge, La., company to notify the SEC of plans for an initial public offering by yearend.Republic completed its first-ever securitization on Oct. 11, selling $275 million of bonds backed by both secured and unsecured personal loans. The deal, led by Wells Fargo, included a senior class with a...



Loan Bid Curbs Non-QM Supply

Fri, 14 Feb 2020
A strong bid for home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards is preventing a further increase in the supply of bonds backed by those receivables.Already trading at a record average of 103 cents on the dollar at yearend 2019, non-qualified mortgages since have seen their prices soar to 105 cents. The upshot is that it has become more economical for originators to sell...



Dock Street Pitches Libor Service

Fri, 14 Feb 2020
Asset-disposition specialist Dock Street Capital is getting into the business of helping issuers of Libor-based structured products manage the transition to new benchmarks.The effort entails the creation of a unit called Dock Street Rate Services that would step in as a “designated transaction representative” for a mix of asset-backed bonds, collateralized loan obligations and commercial mortgage bonds. The plan is to start by winning...



Mortgage Delinquencies Trend Up

Fri, 14 Feb 2020
Long-term delinquencies rose among securitized mortgage pools in January.According to a recently launched index from Kroll, the volume of prime-quality accounts at least 60 days past due climbed 3 bp to 0.21%, while the 30-day calculation was unchanged at 0.51%. Subprime-loan portfolios saw a 5 bp jump in the 60-day figure, to 2.41%. Although subprime loans overdue 30 days dipped 21 bp to 4.67%, that number was 47 bp higher than the level two...



Personal-Loan Program Developing

Fri, 14 Feb 2020
A personal-loan buyer is preparing its debut securitization.The $300 million offering, from San Francisco-based Theorem, is expected to hit the market in March with Credit Suisse running the books. Kroll is rating the bonds.The securities would be backed by loans from Lending Club. Among them could be prime-quality accounts Lending Club originates through its “Scale” program.Theorem eventually plans to become a routine issuer of...



Pagaya Offering Gains Steam

Fri, 14 Feb 2020
Efforts by online personal-loan buyer Pagaya Investments to gain a broader audience for its securitizations are evolving rapidly.Talk was circulating in late 2019 that the Tel Aviv asset manager was interested in floating a rated transaction, moving beyond its previous tactic of offering unrated securities. Now, it appears to be aiming to come to market with such a deal by the end of this month.The $200 million issue will carry ratings from...



Subprime Auto Payments Lag

Fri, 14 Feb 2020
Performance indicators worsened among securitized pools of subprime auto loans during the month ended Jan. 15.According to an index maintained by Fitch, delinquencies within that category rose 30 bp to 5.83% for the month, while losses climbed 8 bp to an annualized 9.47%. While subprime-loan performance had held up better than expected during the previous month, the latest bout of weakening follows a typical pattern in which holiday spending...



The Grapevine

Fri, 14 Feb 2020
Andrew Schoenfeld left Brean Capital this week, destination unknown. Schoenfeld, who held the title of managing director, sold and traded structured products at the New York broker-dealer since 2017. He had joined by way of Hunt Financial Securities, which bought a minority stake in Brean in November 2018 via affiliate Hunt Capital. Brean, in turn, absorbed Hunt Financial’s brokerage operation. Schoenfeld previously spent more than eight...



The Grapevine

Fri, 14 Feb 2020
Takashi Fueno has moved from SMBC Nikko’s London office to New York to help the bank ramp up its U.S. collateralized loan obligation underwriting business. He started as head of U.S. CLO banking this month. Fueno, who previously led the bank’s European CLO business, has been on board since 2008. He already is credited with securing SMBC’s first U.S. CLO underwriting assignment, a $404 million issue from Golub Capital. It is...



The Grapevine

Fri, 14 Feb 2020
Iuliia Palamar, who left DBRS Morningstar this month, has taken a job at Guggenheim as an investment-banking associate in New York. Palamar was a vice president at the rating agency, where she headed a team of analysts grading deals backed by student loans and other consumer assets. Before joining Morningstar in 2016, she was an analyst at R&R Consulting.



The Grapevine

Fri, 14 Feb 2020
Former Paulson & Co. senior vice president Hong Zhang started this month at Barclays. Her duties at the bank haven’t been disclosed, but sources said she would be involved with the mortgage-bond underwriting group in New York. Zhang left Paulson in 2017 after a nine-year stint at the hedge fund manager, where she built and managed a $4 billion portfolio of mortgage securities. Before joining Paulson, Zhang was at Lehman Brothers, where she...



The Grapevine

Fri, 14 Feb 2020
Bryan Sullivan has left his post as chief financial officer at mortgage lender LoanDepot. His plans are unknown. Sullivan, who departed around yearend, had been at the Lake Forest, Calif., lender since 2013. He arrived there from investment giant Pimco, where he managed a private fund focused on special-situations investments and private equity products. Sullivan earlier worked at Goldman Sachs, FBR Capital Markets and KPMG. LoanDepot has...



The Grapevine

Fri, 14 Feb 2020
New asset- and mortgage-backed bond issuance in the U.S. is on pace for its biggest week in almost a year. Some 26 deals totaling $16.7 billion were on track to price by the end of the day today. That’s the largest burst of issuance volume in the States since April 8-12, 2019, when 25 deals totaling $18.7 billion priced. Heavy issuance is expected to continue through next week, before tapering off during the Structured Finance...



The Grapevine

Fri, 14 Feb 2020
Wells Fargo vice president Ryan Brinkoetter has been named head of consumer asset-backed bond research. He replaces longtime research chief John McElravey, who was caught in a round of layoffs two weeks ago. Brinkoetter, stationed in Charlotte, reports to managing director David Preston.



The Grapevine

Fri, 14 Feb 2020
Information Management Network has rescheduled its “Global Investors’ Conference on Securitization,” which was scheduled for March 27-28 at the Kerry Hotel in Beijing. It is now planned for Sept. 11-12 at the same location. The event was postponed amid travel restrictions imposed because of China’s coronavirus outbreak.



Third-Lien Accounts Sideline Heloc Offering

Fri, 07 Feb 2020
A high-profile securitization of home-equity lines from Figure Technologies has been derailed by revelations that the company’s assets include third-lien accounts.The deal, totaling $200 million to $300 million, was scheduled for October but got hung up due to concerns that Morningstar raised about the collateral. Along the way, conflicting accounts arose about whether Figure was up-front about the nature of its receivables or if it left...



Nonperforming-Loan Bonds Growing Scarce

Fri, 07 Feb 2020
Faced with a dwindling supply of new deals, buyers of nonperforming-mortgage bonds are acting more urgently to stock up their portfolios.The result has been more aggressive bidding for the paper on the secondary market. Indeed, unrated senior notes with 1.5-year average lives in the asset class were trading this week at yields of 2.7%, down from 3% a week ago and 3.25% at the beginning of this year.Previously, yields on the securities had been...



Coronavirus Sparks Securitization Concerns

Fri, 07 Feb 2020
The coronavirus outbreak is beginning to take a toll on the securitization industry.Even as asset- and mortgage-backed bonds and collateralized loan obligations continue to flow, industry professionals say that behind the scenes the virus is impacting the routine business of getting deals done.Case in point: After the U.S. Department of Health and Human Services declared a public health emergency on Jan. 30, a number of asset-backed bond...



Huge PG&E Offering Re-Emerges

Fri, 07 Feb 2020
A utility-fee securitization from bankrupt Pacific Gas & Electric is back on the table, with a potential size of $7 billion.The offering, presumed dead through much of last year, suddenly reappeared in a restructuring plan PG&E filed with U.S. Bankruptcy Court in San Francisco on Jan. 31. While the court has yet to set a timeline for the reorganization, indications are that it could be complete by June 30, with the securitization potentially...



CLO Pros Huddle Over AMRs

Fri, 07 Feb 2020
Collateralized loan obligation professionals are comparing notes over a refinancing that TCW carried out via a never-before-used type of auction.The “applicable reset margin” process created considerable buzz, with Los Angeles-based TCW receiving three times as many orders than it needed to reprice a February 2019 transaction called TCW CLO AMR, 2019-1. Indications are that the auction went off without a hitch.But sources noted that...



Green Street Acquiring ABA

Fri, 07 Feb 2020
Green Street Advisors has agreed to acquire Asset-Backed Alert and its three sister publications from Harrison Scott Publications.Green Street’s new chief executive officer, Jeffry Stuek Jr., will oversee the integration of HSP’s news and data into Green Street’s cloud-based platform. Green Street — a global real estate research, analytics and advisory firm headquartered in Newport Beach, Calif. — was acquired in...



KopenTech Offers CLO-Bidding Tool

Fri, 07 Feb 2020
KopenTech has launched a web-based service that helps collateralized loan obligation investors field secondary-market bids for their holdings.Although KopenTech has a broker-dealer license, it doesn’t intend to execute trades through the program. Rather, it allows CLO holders to list securities they wish to sell, upload deal documents, set auction terms and invite dealers to submit bids from their clients.If the seller accepts an offer, the...



MBS Issuers Consider Pre-Funding

Fri, 07 Feb 2020
A number of mortgage lenders are exploring the idea of adding pre-funding periods to their securitizations.Pre-funding mechanisms give issuers additional time to accumulate collateral after a bond sale, typically about three months. The idea is to allow those companies to fund future originations at current capital-raising costs.Mortgage lenders have steered clear of the feature since the 2007-2008 market crash, likely responding to a preference...



LendingPoint Keeps Up Issuance Pace

Fri, 07 Feb 2020
LendingPoint is preparing its next securitization of subprime personal loans.The $200 million deal is expected to hit the market in the coming weeks with Guggenheim running the books. Kroll will rate the bonds.LendingPoint has completed two securitizations totaling $353.5 million, both in 2019. Guggenheim led both of those transactions as well, with Kroll assigning single-A-minus grades to the deals’ senior notes. The deals’...



NY Bundling Solar-Power Loans

Fri, 07 Feb 2020
The New York State Energy Research and Development Authority is again securitizing its solar-power equipment loans.The latest offering, with an expected size of $30 million, is set to hit the market in the coming weeks with Ramirez & Co. as bookrunner. Kroll will assign a single-A grade to the notes.The bonds are backed by loans written under a program known as Green Jobs-Green New York that offers subsidized financing for the installation of...



Sallie Adds Fallback Mechanisms

Fri, 07 Feb 2020
Sallie Mae’s latest student-loan securitization contains provisions for the end of Libor.The $636 million transaction, SMB Private Education Loan Trust, 2020-A, was the first from the bank to include such terms. Specifically, the issue spells out the events that would lead to the adoption of a replacement benchmark for its two floating-rate classes and what the new reference rates would be.Sallie’s deal priced on Feb. 4 with Barclays,...



Manager Shops CDO-Like Exposures

Fri, 07 Feb 2020
Hedge fund manager Varden Pacific is creating a portfolio with no exposure to the first-loss portions of its deals, which are reminiscent of synthetic collateralized debt obligations.The effort calls for Varden to add a share class to its only fund, the $450 million Varden Pacific Opportunity Partners 1. The San Francisco firm began marketing the offering in the past month or so with the aim of raising another $250 million, according to sister...



Personal Loans All Over the Map

Fri, 07 Feb 2020
Performance data for securitized pools of personal loans continued to bounce around in January, worsening for more-creditworthy borrowers while improving for weaker ones.For so-called Tier 1 accounts, originated by Marlette Funding and Social Finance to borrowers with credit scores of 710-740, losses jumped 26 bp to an annualized 6.17%, according to an index maintained by Kroll. Meanwhile, delinquencies within the Tier 1 category fell 3 bp to...



The Grapevine

Fri, 07 Feb 2020
DBRS Morningstar senior vice president Daniel Hall jumped ship last month for residential fix-and-flip lender Toorak Capital. Hall, a principal at the Summit, N.J., company, had been at Morningstar since May 2019, evaluating the performance of non-agency mortgage bonds. He earlier was a director at S&P, leading a team of analysts that assigned ratings to home-loan transactions. Hall also has logged time at Deutsche Bank and DLA...



The Grapevine

Fri, 07 Feb 2020
(SEE CORRECTION BELOW) Brownstone Investment has hired two bankers. Tom Roh and David Dietche joined the New York broker-dealer last week. Their task: build an investment-banking operation that would warehouse receivables and arrange deals for issuers of asset- and mortgage-backed securities. Roh was most recently at Atalaya Capital. He also has logged time at PruVista Capital, Atherton Pacific, Aristone Capital, StormHarbour Securities and J.P....



The Grapevine

Fri, 07 Feb 2020
Andrew Silverhardt joined CommonBond in December as a capital-markets manager, with a focus on the education lender’s securitization programs, whole-loan sales and warehouse facilities. He arrived at the New York company from Kroll, where he had been a senior analyst rating bonds backed by consumer assets since 2016. Silverhardt also has worked at CIT and Fora Financial. CommonBond’s securitization program has produced nine deals...



The Grapevine

Fri, 07 Feb 2020
Kroll has elevated senior managing director Eric Thompson to the newly created position of global head of structured-finance ratings. The promotion is effective today. Thompson, based in New York, has overseen ratings of residential and commercial mortgage-backed securities since arriving at Kroll in 2011. In the new role, his duties expand to include oversight of asset-backed securities and collateralized loan obligations. Thompson previously...



The Grapevine

Fri, 07 Feb 2020
Loan agent and trust shop SRS Acquiom has hired a senior director for business development. Michael Amato joined the Denver software company this week, tasked with increasing the volume of loans the company administers, including those underpinning collateralized loan obligations. Amato, who is stationed in New York, most recently worked in a similar role at GLAS. He also has logged time at...



The Grapevine

Fri, 07 Feb 2020
Synchrony Financial is seeking a vice president to manage the credit-card lender’s securitization program, which includes accounts written for Amazon, JC Penney and Walmart. The recruit, to be stationed in the Stamford, Conn., company’s treasury group, will be responsible for addressing current and future funding needs, trust performance reports and communications with investors and rating agencies. Eight years of experience is...



The Grapevine

Fri, 07 Feb 2020
Online mortgage lender Better.com hired Brendan Phillips in January as a capital-markets analyst. In his new role, Phillips evaluates loan-funding strategies and assigns prices to accounts. He previously had been at Bridgewater Associates since March 2018. Better.com sells loans that are sometimes included in other companies’ securitizations.



The Grapevine

Fri, 07 Feb 2020
Republic Finance is seeking a general counsel in Plano, Texas. Candidates must have 10 years of experience. Republic completed its debut securitization of personal loans in October. Wells Fargo ran the $275 million deal. In addition to personal loans, Republic offers auto loans and home improvement loans. To apply, click on “careers” at republicfinance.com and search for job number...



Departure Feeds Talk of CLO Cuts at Wells

Fri, 31 Jan 2020
Amid rumors of cuts to its collateralized loan obligation unit, Wells Fargo has parted ways with one of the group’s co-heads.With the employment of Charlotte-based managing director Jason Powers officially set to end in late March, there are conflicting reports of whether he was laid off or is leaving of his own accord. And while some industry participants characterized Powers’ exit as an initial step toward broader reductions within...



TD to Offer Conduit Financing in the States

Fri, 31 Jan 2020
TD Bank is starting a commercial-paper conduit operation in the U.S., complementing a similar business it already maintains in Canada.The effort began during the second half of 2019 and is expected to result in the launch of the Toronto bank’s first U.S. conduit in the coming months. The vehicle would fund assets including trade receivables, credit-card accounts and auto loans.Once the conduit is up and running, TD would start a second...



Brexit Opens Door to Pickup in ABS Issuance

Fri, 31 Jan 2020
With the U.K.’s exit from the European Union set for today, the region’s structured-finance market is coming back to life.Several deals from U.K. and E.U. issuers hit the market this week, including a £643.5 million ($842 million) mortgage-bond offering from Kensington Mortgage’s Finsbury Square program. And sources described a healthy pipeline of transactions to come, with investors showing strong demand.Indeed, some...



Pitney Packaging Equipment Assets

Fri, 31 Jan 2020
A Pitney Bowes unit is positioning itself to issue bonds backed by equipment loans and leases.The initiative is developing as a key part of the funding strategy for a lending operation called Wheeler Financial that the Stamford, Conn., company launched in 2019. While the effort still is in the early stages, preliminary discussions already have taken place with bankers, rating-agency analysts and investors.Wheeler specifically offers financing to...



Fed Voting on "Bond-Buckets'

Fri, 31 Jan 2020
The Federal Reserve was set to vote on Jan. 30 to propose a rule that would renew the abilities of banks to invest in collateralized loan obligations whose asset pools contain some bonds.At issue is a condition in the Dodd-Frank Act’s Volcker Rule that since 2015 has prohibited banks from holding ownership interests in so-called covered funds — a category that includes any securitization backed by assets other than loans or leases,...



Morningstar Toughens CRT Grades

Fri, 31 Jan 2020
DBRS Morningstar has resumed rating risk-transfer securitizations for private mortgage insurers, apparently with a more conservative approach.Such grades had been on hold since Morningstar bought DBRS in July, as the two agencies reconciled their approaches to the asset class. When the combined DBRS Morningstar reappeared on separate deals from Radian and Essent Guaranty this month, it assigned lower marks to both transactions.The mezzanine M-1A...



Buyers Set Limits on Loan Workouts

Fri, 31 Jan 2020
Investors are proving open to the idea of giving collateralized loan obligation issuers more flexibility to manage distressed assets, but only up to a point.The idea is to enable issuers that hold loans from troubled companies to protect those positions by extending additional financing to the borrowers, even if the new loans don’t meet typical eligibility criteria. At least three CLOs containing such allowances have priced so far, all in...



Mortgage-Funding Costs Trend Down

Fri, 31 Jan 2020
It is becoming less costly to securitize home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards.The sector has produced four deals totaling $1.4 billion this year, each of which priced at tighter spreads than the issuer’s previous transaction. Among them was a $336.8 million offering that Caliber Home Loans priced on Jan. 15 with Nomura, Credit Suisse and Goldman Sachs...



Kansas Considers Utility-Fee Bonds

Fri, 31 Jan 2020
Kansas lawmakers are nearing a decision on a bill that would allow a state agency to issue bonds backed by special surcharges on customers’ electricity bills.Both houses of the legislature were scheduled to convene Jan. 30 to discuss the measure, which is intended to lower rate-payer costs by refinancing high-interest debt associated with aging coal-fired power plants.The law would allow the state’s utility regulator, the Kansas...



Auto-Lease Flurry Raises Eyebrows

Fri, 31 Jan 2020
There doesn’t appear to be a clear trend behind a recent cluster of auto-lease securitizations.Four deals totaling $4.8 billion priced during the Jan. 13-22 period, leaving market professionals scratching their heads over what was causing the flurry. The prevailing opinion: It was just a coincidence.“It’s funny timing. I’m not sure why it’s happening. Leasing volumes have slowed industrywide,” one banker said,...



SFA Advocating for Diversity

Fri, 31 Jan 2020
The Structured Finance Association is starting a racial-diversity initiative.SFA chief executive Michael Bright said the effort essentially would mirror the trade group’s Women in Securitization program, but with a focus on ensuring the participation and advancement of minorities in the industry.As an initial step in the push, SFA’s “SFVegas” conference will include a keynote address from W. Kamau Bell, a comedian who...



The Grapevine

Fri, 31 Jan 2020
East West Bank added longtime securitization professional Ken Laudano to its New York office this month as a senior vice president. While East West is known in the securitization industry for offering warehouse lines, Laudano’s role apparently encompasses structuring and underwriting of asset-backed bond transactions. He arrived from fixed-income investment firm YieldStreet, with his earlier stops including Credit Suisse, BNY Mellon, WestLB...



The Grapevine

Fri, 31 Jan 2020
Information Management Network is considering postponing or canceling its “Global Investors’ Conference on Securitisation in China” because of the growing coronavirus threat. The conference is scheduled for March 27-28 at the Kerry Hotel in Beijing. IMN, which is hosting the event with China’s leading securitization group, CAF100, is likely to decide next week. Many airlines have indefinitely suspended flights to China....



The Grapevine

Fri, 31 Jan 2020
DZ Bank has added a risk analyst to its structured-finance team. Eric Schwarz, who started in December, supports origination and deal-management activities for the bank’s commercial-paper conduits, with a focus on non-traditional assets including timeshare loans, tax liens and equipment leases. He arrived from Morgan Stanley, where he had worked in New York since 2018. He earlier covered a portfolio of securitized investments at TD...



The Grapevine

Fri, 31 Jan 2020
Drew An joined KopenTech this month as head of distribution, managing sales across the Los Angeles technology company’s suite of products. Before joining KopenTech, An was a senior partner at Fed Hill Capital, a private REIT specializing in agency mortgage-bond investments. He earlier headed structured-product sales at Mizuho and traded corporate bonds at Wachovia. KopenTech, formed in 2018, works with CLO issuers and investors to reset...



The Grapevine

Fri, 31 Jan 2020
Salesman Justin Brody has returned to broker-trader Odeon Capital as a senior vice president in New York. Brody, who started last week, previously worked at Odeon from 2010 to 2012. He arrives after nearly a year at Sunrise Brokers, a derivatives dealer. Brody earlier sold asset- and mortgage-backed securities at William Blair. He also has worked in sales posts at Credit Agricole and...



The Grapevine

Fri, 31 Jan 2020
Capital One is looking to hire a credit officer for its financial-institutions group. The recruit would hold the title of senior director, tasked with evaluating risk tied to financing nonbank originators of mortgages, auto loans and “point-of-sale” personal loans. The new staffer would be based in McLean, Va., Richmond, Va., New York or Chicago. Candidates should email recruiter Caitlin Maier at...



The Grapevine

Fri, 31 Jan 2020
Mortgage-bond portfolio manager Stephen Zhu joined Blackstone last month as a principal in New York. Zhu most recently oversaw a pool of mortgage-bond investments at hedge fund manager Axonic Capital. He earlier worked at Ellington Management.



The Grapevine

Fri, 31 Jan 2020
Joshua Tatum left his job at Chicago mortgage lender Guaranteed Rate last week. He’s now running his own advisory business, Tatum Technology Consulting. Tatum had been a general manager in Guaranteed Rate’s home-loan development group since 2018. Prior to that, he headed business development at Social Finance’s mortgage-lending arm.



The Grapevine

Fri, 31 Jan 2020
Alston & Bird is seeking an associate for its finance practice in New York. The position requires 4-5 years of experience in warehouse lending and structured finance, including asset- and mortgage-backed securities.



The Grapevine

Fri, 31 Jan 2020
All rooms at the Aria Resort & Casino have sold out for the Structured Finance Association’s “SFVegas 2020” conference, scheduled for Feb. 23-26. The event’s spillover hotel, the neighboring Waldorf Astoria Las Vegas, also is fully booked. The demand for rooms adds to expectations the conference’s attendence will exceed last year’s record turnout of...



Pretium Sees Opportunity in CLO Weakness

Fri, 24 Jan 2020
Investment firm Pretium Partners is expecting a downturn in the collateralized loan obligation market.Rather than taking short positions right away, however, the New York firm recently set out to raise $500 million of equity for an opportunistic fund that would deploy its capital only after deal performance starts to suffer. “They plan to sit on the cash until the market crashes,” one source said.The idea is that by jumping in at that...



Freedom Building Non-Agency MBS Program

Fri, 24 Jan 2020
One of the largest non-bank mortgage originators is building a private-label securitization program.Freedom Mortgage sees itself becoming a routine bond issuer, starting this year. Its securities would be backed both by loans that meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards, including jumbo accounts, and by receivables that fall outside those parameters.Heading the effort is senior vice...



China Bond-Rating Initiatives Back on Track

Fri, 24 Jan 2020
President Trump’s trade deal with China has paved the way for Moody’s and Fitch to set up shop in the nation.Both agencies had applied to the Bank of China and National Association of Financial Market Institutional Investors for permission to grade securities that issuers in China distribute at home. But the efforts stalled as the Chinese and U.S. governments battled over tariffs and other trade policies last year.Now comes word that...



Delayed-Mezz CLOs Enter Next Phase

Fri, 24 Jan 2020
With the values of mezzanine collateralized loan obligation notes recovering, PGIM Investments and Redding Ridge Asset Management are thinking about issuing bonds that they initially excluded from recent deals.PGIM priced its $410.4 million Dryden CLO 80 on Nov. 1, but left out an $8 million mezzanine piece with a “BB-” rating from S&P. Redding Ridge likewise priced its $522 million RR 7 on Dec. 17, sans a $16.25 million class with a...



Card Lender Exploring Issuance

Fri, 24 Jan 2020
Credit-card lender Genesis Financial is considering securitization as a funding strategy.Representatives from the Beaverton, Ore., operation have been discussing the idea informally with bankers and rating-agency analysts in recent months. Should the effort move ahead, sources said a deal of perhaps $200 million could hit the market during the second half of the year.Genesis’ cards come both in private-label form, written through merchants...



New Angle Sought for Libor Switch

Fri, 24 Jan 2020
An education lender is attempting to retire two securitizations, rather than face the disruptions involved in changing their benchmarks when Libor phases out.The issuer, North Texas Higher Education Authority, is working with DealVector to identify the holders of the transactions, both issued in 2010. The not-for-profit organization’s request: for approval to redeem the securities ahead of schedule at a price equal to 101.5% of outstanding...



Carvana Expands Issuance Scope

Fri, 24 Jan 2020
Carvana is simultaneously preparing two auto-loan securitizations.One of the transactions would continue a series of subprime-loan deals the online used-car dealer launched in 2019. The other would be its first backed by prime-quality accounts.The subprime-loan deal, totaling $300 million, is expected to hit the market in February. Its bookrunners would include most or all of a group that has appeared on Carvana’s recent offerings: Amherst...



Issuers Rush to Meet Buyer Appetites

Fri, 24 Jan 2020
The flow of new asset-backed bonds remained heavy this week.Even with many industry participants out of the office on Monday for Martin Luther King Jr. Day, the full-week pipeline in the U.S. encompassed 14 deals totaling some $10 billion. That continued a trend toward strong supply that began the week earlier, when 16 offerings totaling $10.4 billion priced.A week before that, new-deal activity encompassed a more modest six transactions for $2.8...



Asset Sale to Sap Sallie's Volume

Fri, 24 Jan 2020
Another reduction in Sallie Mae Bank’s securitization volume appears to be in store for 2020.The expectations are tied to the education lender’s disclosure this week that it plans to sell $3 billion of private student loans, assets that otherwise might flow into its asset-backed bond program.Sallie was holding $22.9 billion of loans on its balance sheet at yearend 2019. The company would use some of the proceeds from the planned sales...



Tidewater Keeps Up Issuing Strategy

Fri, 24 Jan 2020
Subprime auto lender Tidewater Finance is readying its next securitization.The $170 million offering is expected to hit the market in the coming weeks with KeyBank running the books. S&P and Kroll will rate the bonds.Tidewater so far has completed seven securitizations totaling $930.9 million, with a single deal taking place in 2009 and the other six coming since 2010, according to Asset-Backed Alert’s ABS Database.The Virginia Beach, Va.,...



Upgrades Boost Risk-Transfer Values

Fri, 24 Jan 2020
Encouraged by recent rating upgrades, investors are bidding up agency risk-transfer securities on the secondary market.The activity was most evident among the deals’ mezzanine securities, which typically carry grades of triple-B down to double-B. On Jan. 22, for example, several batches of Class-M2 bonds with triple-B marks that Fannie Mae issued in 2016 via its Connecticut Avenue Securities program changed hands at 200 bp over Libor.That...



The Grapevine

Fri, 24 Jan 2020
Sameer Tikoo has parted ways with Ionic Capital. Tikoo, who managed and traded a portfolio of structured products at the New York hedge fund shop, left in December, destination unknown. He previously held a similar position at PartnerRe from 2008 to 2016, with earlier stops at UBS and Nomura. Tikoo began his career as a credit analyst at Fitch. Ionic, led by founders Bart Baum and Daniel Stone, had $2.5 billion of gross assets under management on...



The Grapevine

Fri, 24 Jan 2020
Craig Phillips, a former counselor to U.S. Treasury Secretary Steve Mnuchin, has joined New York loan-analytics shop DV01 as a senior advisor on matters including business strategy, growth and sales. Phillips left the Treasury Department in June. He had started there in January 2017, tasked with advising the Trump Administration on regulatory issues and on mortgage-finance policies, which include the emergence of Fannie Mae and Freddie Mac from...



The Grapevine

Fri, 24 Jan 2020
Genworth Financial chief risk officer Lori Evangel died suddenly last week. She was 57. Evangel, a resident of Richmond, Va., joined the New York mortgage insurer in 2014 following a year-long stint as chief risk officer at Aflac. Before that, she served as the top credit-risk officer at MetLife. Prior to joining MetLife, Evangel spent 18 years at bond insurer MBIA, where, among other initiatives, she ran a team that guaranteed collateralized...



The Grapevine

Fri, 24 Jan 2020
Joseph Kohout has left Verus Mortgage to join residential fix-and-flip lender Toorak Capital. Kohout started this month as a principal at the Summit, N.J., operation, which priced $350 million of unrated bonds on Sept. 27 via bookrunner Deutsche Bank. Kohout had been a senior vice president at Verus. Before that, he headed residential lending at Window Rock Capital from 2016 to 2018. Kohout also has worked at WinWater Home Mortgage, Arbor...



The Grapevine

Fri, 24 Jan 2020
Former Imperial Capital trader Darius Saib has resurfaced at investment firm Pretium Partners. Saib started in the shop’s capital-markets unit this month. He had been a consultant since leaving Imperial’s structured-product brokerage team in October 2018. Before joining Imperial in 2013, Saib had stops at R.W. Pressprich, UBS, StoneCastle Partners and...



The Grapevine

Fri, 24 Jan 2020
Iuliia Palamar resigned from DBRS Morningstar last week after four years at the agency. Palamar, a vice president, most recently headed a team of analysts grading deals backed primarily by student loans, as well as other consumer assets and unusual cashflows. Her plans are unknown. Palamar joined Morningstar from rating firm R&R Consulting, where she worked as a securitized-product analyst since...



The Grapevine

Fri, 24 Jan 2020
Nellie Flek has joined DZ Bank in New York as a risk analyst focused on structured products. Flek arrived at the bank a few weeks ago from FMS Wertmanagement Service, where she held a similar position since 2013. Her prior stops include Depfa Bank, BNP Paribas and J.P. Morgan.



Hungry Investors Turn to Secondary Market

Fri, 17 Jan 2020
A slowdown in the supply of new asset-backed securities has coincided with a jump in demand, lifting values on the secondary market.Top-rated securities backed by virtually all types of consumer assets have seen their spreads narrow 2-8 bp since the beginning of this month, with lower-rated subordinate paper tightening by 3-13 bp. The cause: Investors, eager to start deploying their 2020 capital allocations, were unwilling to wait for the flow of...



CLOs Seek Support for Distressed Holdings

Fri, 17 Jan 2020
Collateralized loan obligation issuers are looking into mechanisms that could afford them more flexibility in managing distressed collateral.The hope is to avoid what happened in the case of Deluxe Entertainment. In August, the troubled visual-effects company sought additional funding from lenders in a bid to position itself for a turnaround. Blocked from taking more exposures to troubled borrowers, however, many CLO managers were unable to add...



Sidley, Mayer Repeat as Law Firm Leaders

Fri, 17 Jan 2020
Sidley Austin retained its title as the most active underwriter counsel for U.S. asset- and mortgage-backed bond deals in 2019, with Mayer Brown keeping the top spot among law firms representing issuers.Sidley advised the bookrunners of 126 transactions last year. That was up from a market-leading 101 the year before, when the firm surpassed Morgan Lewis for the league-table crown, according to Asset-Backed Alert’s ABS Database.Morgan Lewis...



EJF Locks In Mortgage Supply

Fri, 17 Jan 2020
EJF Capital has taken a major step toward establishing itself as a mortgage-bond issuer, striking an agreement to buy loans from originator AmWest Funding.Under the arrangement, EJF will tap AmWest as its main source of home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards. EJF has been angling for several months to purchase and securitize those accounts, but until now didn’t have such...



Deer Park Road Nixes ABS Fund

Fri, 17 Jan 2020
Hedge fund operator Deer Park Road Management has largely unwound a vehicle that invested in asset-backed securities.The entity, SBF Opportunities Fund, was running about $50 million in July. By mid-December, it was about 80% liquidated, according to sister publication Hedge Fund Alert.The move comes amid broader headaches for Deer Park Road. The Steamboat Springs, Colo., firm’s flagship STS Master Fund suffered its first down year ever in...



Autos Avoid Late-Year Hit

Fri, 17 Jan 2020
Performance indicators were mixed for securitized pools of auto loans during the month ended Dec. 19.According to an index maintained by Fitch, losses among subprime loans fell 30 bp to an annualized 9.39%. While that remains high on a historical basis, the sector appears to have avoided a major jump in losses that typically occurs as borrowers bust their budgets around the yearend holidays. Delinquencies were up, however, rising 10 bp to 5.53%....



Defaults Trend Up for CLO Assets

Fri, 17 Jan 2020
The amounts of defaulted assets backing collateralized loan obligations rose in November.CLOs issued since the financial crisis saw their median defaulted holdings increase 13 bp to 0.37%. Within that category, deals still in their reinvestment periods registered a 0.33% reading. Both figures were the highest since July 2016, according to Moody’s.The exposures were higher than a month before for every vintage of transaction. The biggest...



Diamond Dealer Preps Securitization

Fri, 17 Jan 2020
Pluczenik Diamond Co. is readying its next securitization.The $80 million deal, led by Guggenheim, is expected to hit the market in coming weeks, with its senior securities rated triple-A by Kroll. The offering is the second for Pluczenik and its first rated, Rule-144A transaction following an unrated issue in 2019.The deal is backed by payments owed to the diamond merchant by its customers.The Antwerp, Belgium, firm does business in the...



Loan-Review Pros Land New Roles

Fri, 17 Jan 2020
The former leaders of mortgage-review firm New Diligence Advisors have found a new employer.Mark Hughes and Ann Gibbons started this month as managing directors at Evolve Mortgage, a Frisco, Texas, operation that offers services including loan-origination, review and technology assistance to clients including originators and warehouse lenders. While Evolve has worked mainly in the agency-lending space, the recruits are tasked with expanding its...



Data Firm Adds Freddie Offering

Fri, 17 Jan 2020
Data-analytics firm TheNumber plans to list Freddie Mac’s next risk-transfer securitization on its deal-information service.The offering, Structured Agency Credit Risk Notes, 2020-DNA1, is expected to hit the market next week. TheNumber is giving access to its service to all potential investors at no cost. However, buyers must use a link and code supplied either by lead manager Nomura or their own dealers.TheNumber’s web-based system...



US Bank Repeats as Top Trustee

Fri, 17 Jan 2020
U.S. Bank remained the structured-finance industry’s most-active trustee in 2019.The bank again was the leader in the combined market for U.S. asset- and mortgage-backed bonds, working on $115.9 billion of new offerings for a 31.9% market share. It also retained the top position among trustees for collateralized loan obligations worldwide, appearing on $86 billion of deals for a 49.1% market share, according to Asset-Backed Alert’s...



Shares Slip for Top Rating Agencies

Fri, 17 Jan 2020
The securitization industry’s most-active rating agencies saw slight decreases in their market shares in 2019, as their smaller competitors grew.Retaining a position it has held since 2012, S&P again rated more U.S. asset- and mortgage-backed bonds than any of its peers last year. But its $195.1 billion showing amounted to only a 3% increase from a year earlier, at a time when overall issuance grew by 5%, according to Asset-Backed...



The Grapevine

Fri, 17 Jan 2020
Millennium Management has hired a portfolio manager to oversee a book of mortgage-bond investments. Phil Hermann joined the New York hedge fund manager in December. Hermann previously oversaw a portfolio of home-loan bonds at BlueMountain Capital, which he joined in March 2018. Before that, he managed a bond fund at Pine River Capital from 2011 to 2017.



The Grapevine

Fri, 17 Jan 2020
Mark Simmer joined Clear Haven Capital a few weeks ago to take a leading role on a new credit-product fund. Simmer, a partner at the New York investment firm, had been on gardening leave from Macquarie, which he left in July. The new fund supplies credit lines to consumer and small-business lenders that securitize their receivables. At Macquarie, where Simmer had been a managing director since 2008, he focused on the bank’s warehouse lines...



The Grapevine

Fri, 17 Jan 2020
Freyda Mechlowicz was promoted to partner at Milbank this month. Mechlowicz, who is based in the law firm’s New York headquarters, specializes in financing aircraft assets. She’s a member of the firm’s transportation practice. Mechlowicz joined Milbank out of law school in 2004.



The Grapevine

Fri, 17 Jan 2020
Jenna Kaufman and Michele Voon have left Deutsche Bank for UMB Bank’s corporate-trust division, reuniting them with former colleague Stuart Mitchell. Kaufman, who started in December, is a senior vice president at UMB. She held a similar role at Deutsche. Voon, a vice president, is a senior relationship officer. The two are based in New York and report to Mitchell, who joined UMB in September as head of sales and product development for...



The Grapevine

Fri, 17 Jan 2020
Sara Famouri joined Mizuho as a director in London last month. Famouri is working as part of a team that handles trading and banking across a range of instruments that include structured products, with a scope that includes distressed and emerging-markets deals. She arrived at Mizuho from Wells Fargo, where she held a similar title and focused on collateralized loan obligations. Famouri joined Wells in...



The Grapevine

Fri, 17 Jan 2020
Kroll is seeking a credit analyst to cover bonds backed by equipment, aircraft and railcar leases, as well as whole-business securitizations and other non-traditional deals. The position requires at least seven years of experience.



The Grapevine

Fri, 17 Jan 2020
Bank of Montreal is seeking a trader for its U.S. asset-backed commercial-paper operation. The recruit would be stationed in Chicago, reporting to the bank’s head of asset-backed bond origination. Bank of Montreal runs a single U.S. conduit called Fairway Finance Corp. It had $3.2 billion of securities outstanding at the end of the third quarter, according to...



The Grapevine

Fri, 17 Jan 2020
The Structured Finance Association will increase the number of registration stations at its “SFVegas 2020” conference to head off the long lines that plagued last year’s event. The SFA expects the number of attendees to top last year’s record of 8,050, some of whom waited for hours to obtain their credentials. This year, registration stations will be positioned throughout Las Vegas’ Aria Resort & Casino to better...



Industry Pros Betting on Continued Growth

Fri, 10 Jan 2020
Securitization professionals are predicting another year of expanded issuance.A panel of 13 industry participants surveyed by Asset-Backed Alert are forecasting, on average, that $929 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 4% increase from the 2019 tally of $894.5 billion, according to Asset-Backed...



As Arb Shrinks, CLO Issuers Face Pullback

Fri, 10 Jan 2020
Collateralized loan obligation professionals are anticipating a slowdown in new-deal volume this year amid challenging market conditions.Worldwide CLO issuance totaled $175.1 billion in 2019, down 2% from the 2018 count of $179 billion, according to Asset-Backed Alert’s ABS Database. For 2020, the expectation is that a retreat of perhaps 10-15% might be in store.That would add yet another swing to what has been one of the securitization...



Crisis Memories Prompt Non-QM Intervention

Fri, 10 Jan 2020
The Structured Finance Association is taking steps to address weakness among nonqualified mortgages before federal policymakers do.The 30-day delinquency level across all types of home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards is approaching 5%, according to Kroll.Within that category, the figures look even worse for “bank-statement” accounts. Those loans,...



MUSA Alleges "Love Contract' Breach

Fri, 10 Jan 2020
MUSA Auto Finance claims that instances of sexual harassment contributed to its September 2018 firing of president Richard Frunzi, whose exit derailed the company’s securitization plans.Responding to a lawsuit filed by Frunzi, parent MUSA Auto Holdings said in a Dec. 16 filing in Texas state court in Dallas that his “brief tenure was marked by repeated episodes of poor performance, insubordination, failure to follow established...



Early-Year Pipeline Filling Up

Fri, 10 Jan 2020
A busy week is shaping up in the market for new asset- and mortgage-backed securities.Seven asset-backed bond deals totaling an estimated $8 billion are in the pipeline for Jan. 13-17. Among them are a subprime auto-loan transaction from Exeter Finance, an auto-lease securitization from Hyundai and a personal-loan offering from Social Finance.This week’s supply was more modest, with a $1.2 billion prime-loan offering from General Motors...



DBRS to Grade "Tokenized' Deal

Fri, 10 Jan 2020
DBRS Morningstar has signed on to rate the debut securitization from restaurant operator FAT Brands, a deal that would be among the first with a blockchain-technology component.There’s no word on the grades DBRS expects to assign to the transaction, which would be backed by franchise fees and other whole-business cashflows. But the agency’s participation alone marks a step toward adoption of blockchain products in the...



Upstart Issue Adds Riskier Loans

Fri, 10 Jan 2020
Upstart’s latest offering of pass-through certificates contains a new category of riskier collateral.The asset pool for the deal, sponsored by Jefferies, includes $4.1 million of personal loans that FinWise of Sandy, Utah, originated to weaker borrowers on Upstart’s behalf. That amounts to 5.5% of the total collateral for the $86.5 million offering, which was on the verge of pricing this week.The idea is to generate stronger returns...



Solar Push Aids Tesla Partners

Fri, 10 Jan 2020
Tesla’s renewed focus on residential solar-power products is likely to boost business for the company’s lending partners, leading them to issue greater volumes of asset-backed bonds.Solar Mosaic and Sunlight Financial have worked with Tesla since 2017 to finance customer purchases of the company’s solar panels and batteries. The relationship initially was a boon to the lenders, particularly Solar Mosaic, which saw a 73% increase...



Data Jumbled for Personal Loans

Fri, 10 Jan 2020
Personal-loan performance was mixed in December.According to an index maintained by Kroll, securitized pools of so-called Tier 1 loans saw losses fall 34 bp for the month to an annualized 5.91% while delinquencies rose 1 bp to 1.48%. Tier 1 loans are originated by Marlette Funding and Social Finance to borrowers with credit scores of 710-740. For Tier 2 loans, losses fell 183 bp to an annualized 12.97% while delinquencies dropped by 7 bp to...



BofA's Kane Nails Volume Forecast

Fri, 10 Jan 2020
Bank of America’s Brian Kane hit the bull’s-eye with his predictions for issuance volume in 2019.A year ago, a panel of 11 market participants surveyed by Asset-Backed Alert forecast, on average, that $815 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 $894.5 billion.Kane, a...



Citigroup Reclaims Worldwide Bookrunner Crown

Fri, 10 Jan 2020
Citigroup was the world’s most active underwriter of securitized products in 2019.After losing its market-leader status to J.P. Morgan in 2018, the bank quickly reestablished a lead. By yearend, it had earned $97.9 billion league-table credit for a 10.9% share of the combined worldwide market for new asset-backed bonds, residential mortgage securitizations, commercial mortgage deals and collateralized loan obligations, according to...



The Grapevine

Fri, 10 Jan 2020
Nearwater Capital, which offers risk-retention financing to structured-product issuers, has hired a general counsel. Scott Kimmel joined the New York outfit about a week ago. Kimmel was most recently deputy general counsel at Guggenheim, where he provided legal advice on sales and trading activities. He earlier played a similar role at Barclays, which he joined by way of the bank’s 2008 takeover of Lehman Brothers. Kimmel’s move to...



The Grapevine

Fri, 10 Jan 2020
Bill Moretti has joined RiskSpan as a senior managing director in charge of the data-analytic shop’s SmartLink Innovation Lab, which applies blockchain technology, machine learning and other tools to the firm’s modeling and analysis of mortgage and consumer-loan data. Moretti started at RiskSpan’s Arlington, Va., headquarters on Jan. 1. He had briefly run his own consulting firm, Chainlink Advisory, after leaving MetLife in...



The Grapevine

Fri, 10 Jan 2020
Nick Clemente left Amazon last month to join Genesis Financial. Clemente, stationed in Seattle, is chief capital officer at Genesis, which writes loans and credit cards to small and mid-size merchants. Clemente oversaw capital markets and business development at Amazon Lending, where he worked to shed risk and raise financing. Before joining Amazon in 2016, he was a director in the credit-structuring group at BNP Paribas, leading...



The Grapevine

Fri, 10 Jan 2020
Behzad Taufiq, who headed credit-product trading at Hudson Advisors, left the firm last week, destination unknown. Taufiq had been working in the New York office of Dallas-based Hudson since 2011, trading an array of non-agency home-loan bonds. Before that, he traded mortgage bonds and whole loans at Cerberus Capital. Taufiq also has worked at Certavi...



The Grapevine

Fri, 10 Jan 2020
A trader specializing in mortgage-bond derivatives has joined Millennium Management as a portfolio manager. Josh Bertman moved to Millennium’s Santa Monica, Calif., office in December. He arrived from Brevan Howard Asset Management, where he had been since 2012, most recently as a partner. Bertman previously was at Credit Suisse.



The Grapevine

Fri, 10 Jan 2020
Credit analyst Phoebe Xu has joined KPMG as a securitization manager. Xu started this month in New York after a six-month stint at rating agency Egan-Jones. She previously spent time at Morningstar, where she was a lead analyst focusing on consumer-loan securitizations. Before joining Morningstar in 2015, Xu served in a similar role at Moody’s.



The Grapevine

Fri, 10 Jan 2020
Brean Capital has added a salesperson specializing in collateralized loan obligations. Kevin Lamoin started this month at Brean’s New York headquarters after 11 years at Jefferies, where he sold a variety of structured products, including collateralized mortgage obligations, project loans, non-agency residential mortgage bonds, asset-backed bonds and commercial mortgage bonds. Prior to joining Jefferies, Lamoin spent time at RBS and...



The Grapevine

Fri, 10 Jan 2020
Salesman Mark Zarrilli joined broker-dealer Zeus Financial in Boca Raton, Fla., this month as a senior vice president. Zarrilli arrives from Mizuho, where he focused on mortgage- and asset-backed securities since 2010. He earlier had stops at Janney Montgomery Scott and Deutsche Bank.



Refi Experiment Getting Under Way for CLOs

Fri, 20 Dec 2019
A new process for refinancing collateralized loan obligations will be put to the test in early 2020.Known as an applicable margin reset (AMR), the mechanism permits issuers to periodically reset interest rates on their notes via modified Dutch auctions. Seven CLOs have been issued with such provisions so far.The first to reset will be TCW Asset Management’s TCW AMR CLO, 2019-1. That $402.9 million transaction, which priced Feb. 11 with MUFG...



Buyers Fret Over Late Mortgage Payments

Fri, 20 Dec 2019
A continued rise in borrower delinquencies is causing investors to recoil from bonds backed by home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” rules.The proportion of non-qualified loans at least 60 days past due was approaching 6% this week, up from 5.2% a month ago, according to Wells Fargo. Securities backed by those accounts, meanwhile, saw their values drop on the secondary...



TIAA Swears Off Jumbo-Mortgage Offerings

Fri, 20 Dec 2019
TIAA has shut down its jumbo-mortgage securitization program.The exit took place gradually over about a year, as TIAA reduced its activities as a jumbo-loan originator and placed more emphasis on writing agency loans. It concluded with the November departure of executive vice president J.B. Long.TIAA became a jumbo-mortgage lender with its 2017 purchase of EverBank, with Long moving over from his post as that institution’s president. He...



PennyMac Revisits MBS Issuance

Fri, 20 Dec 2019
PennyMac again is exploring a return to private-label mortgage securitizations.The Westlake Village, Calif., company is seeking a senior vice president whose primary role would include overseeing sales of bonds tied to agency risk-transfer securities and mortgage-servicing rights. But another task would be to engage investors in potential home-loan securitizations, with a possible emphasis on financing accounts that don’t meet the Consumer...



Putnam Preps Reverse-Mortgage Issue

Fri, 20 Dec 2019
Putnam Investments is preparing its first-ever reverse-mortgage securitization.The transaction, estimated at $200 million, is expected to hit the market in January. Sources said the Boston operation has been acquiring collateral accounts for the deal from Longbridge Financial of Mahwah, N.J.Putnam hasn’t issued a securitization since the onset of the financial crisis in 2007, and has never offered mortgage-related bonds. It’s best...



Annaly Examines Rental-Home Sector

Fri, 20 Dec 2019
Annaly Capital is interested in offering financing for bulk purchases of rental homes, with securitization as a possible funding strategy.While the initiative still is in the exploratory stage, industry participants believe the New York REIT could begin writing loans to buyers of large single-family portfolios in 2020. An initial bond deal could come soon after.Annaly has quietly discussed the effort with shareholders, pointing to a growing...



Issuer Seeks Extended Reach

Fri, 20 Dec 2019
Pagaya Investments appears poised to seek broader distribution for its future securitizations of online personal loans.The Tel Aviv asset manager already has completed five such offerings since launching its issuance program this year, most recently placing $200 million of securities on Dec. 18 with Cantor Fitzgerald running the books. But those transactions all have been privately placed and unrated.Looking ahead, the talk is that Pagaya could...



Fiat-Peugeot Deal Benefits Santander

Fri, 20 Dec 2019
The marriage of Fiat Chrysler and Peugeot parent PSA Group could strengthen Santander Consumer USA’s position as an auto lender.The Dec. 18 merger agreement calls for Fiat Chrysler and PSA to combine as equals within 12 months. The final version is expected to designate Santander’s Chrysler Capital unit as the preferred lender for the joint business, a move that could buoy the Dallas company’s securitization volume.Indeed, the...



Zais Circulates ESG Transaction

Fri, 20 Dec 2019
Zais Group is planning a collateralized loan obligation in Europe that would incorporate responsible environmental, social and governance policies the firm recently adopted.While other CLOs have contained provisions for ESG principles, they typically have taken the approach of prohibiting loans to certain types of companies, including makers of tobacco products and firearms. Zais’ deal would be one of the first to integrate the approach...



CLO Equity Trading Picks Up

Fri, 20 Dec 2019
Trading of equity positions in collateralized loan obligations picked up over the past two days, following several weeks at a virtual standstill.Bids on nearly $77 million of equity from five CLOs flowed in on Dec. 18 and 19, according to Empirasign. While trading of such products typically is light, it had been unusually so of late.Indeed, prior to this week’s outburst, investors had submitted bids on less than $40 million of CLO equity...



Loan Defaults Carry Into CLOs

Fri, 20 Dec 2019
After a long period at zero, median holdings of defaulted loans in collateralized loan obligation pools jumped in October.For CLOs issued since the financial crisis, median defaulted-asset exposures registered at 0.24% for the month. Within that category, the tally was 0.14% for transactions still in their reinvestment periods. Defaulted-loan holdings had been at zero for both groupings since February 2018, according to Moody’s.The jump in...



Rated Master, Primary and Special Mortgage Servicers

Fri, 20 Dec 2019
The listing below shows the ratings of U.S. home-loan servicers evaluated by Moody’s, S&P, Fitch, DBRS Morningstar 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...



The Grapevine

Fri, 20 Dec 2019
Securitization volume has topped year-ago levels. According to preliminary figures from Asset-Backed Alert’s ABS Database, issuers worldwide sold approximately $880 billion of fresh asset-backed securities, residential mortgage securities, commercial mortgage paper and collateralized loan obligations this year. As recently as the end of the third quarter, industry participants were divided over whether the tally would exceed the full-year...



The Grapevine

Fri, 20 Dec 2019
Sunnova Energy has added a staffer to its capital-markets group in New York. Arthur Kwok joined the Houston operation last month as a senior director. He most recently worked at ING, where he focused on financing startup personal lenders and renewable-energy companies through the issuance of asset-backed bonds. Kwok also has logged time at BNP Paribas, ABN Amro, Credit Agricole and Ernst & Young. Sunnova issued $167.6 million of bonds backed by...



The Grapevine

Fri, 20 Dec 2019
Structured-product veteran Brian Stoker joined commercial mortgage lender Korth Direct Mortgage this week as head of securitization. Stoker, stationed in the operation’s Miami headquarters, had been working at his family’s Charles A. Stoker Real Estate Brokerage since January 2019, focusing on investing and sales. Before that, he headed underwriting for collateralized loan obligations at StormHarbour Securities from 2013 to 2018....



The Grapevine

Fri, 20 Dec 2019
New York Life has hired an asset-backed securities analyst away from Moody’s. Aileen Wang joined the insurance company’s investment team last month. She had been at Moody’s since 2012, most recently rating bonds backed by equipment leases, aircraft loans and rental-car fleets. She previously graded collateralized loan obligations for the...



The Grapevine

Fri, 20 Dec 2019
Political commentators Donna Brazile and Ana Navarro are among the scheduled keynote speakers at the Structured Finance Association’s “SFVegas 2020” conference. Brazile, twice the interim chair of the Democratic National Committee, has been a contributor to Fox News since March. Navarro is a former Republican strategist and a current CNN contributor. Joining them are Carly Zakin and Danielle Weisberg, co-founders of theSkimm...



The Grapevine

Fri, 20 Dec 2019
Mortgage-servicing professional Kim Flynt recently started at Reverse Mortgage Solutions as senior director of compliance. Flynt arrived in October at the Houston firm, which was acquired that month by Mortgage Assets Management. She previously worked for 21 years at Ditech Financial, most recently as a vice president. Ditech and Reverse Mortgage Solutions are former subsidiaries of Ditech Holdings, which sold the companies after emerging from...



The Grapevine

Fri, 20 Dec 2019
Stripe, which manages an online payment service and lends to online businesses, is looking for a securitization professional to assemble a capital-markets team. The new hire, to be based in New York, would recruit employees, build and manage relationships with investors and develop a strategy for funding the company’s loans and other financial products, including a recently launched corporate credit card. Candidates should have eight years...



The Grapevine

Fri, 20 Dec 2019
Chapman & Cutler has an opening for a structured-product attorney in Washington. The position requires at least five years of securitization experience in a variety of asset classes as well as familiarity with secured and unsecured credit facilities.



Libor Worries Take Toll on FFELP Securities

Fri, 13 Dec 2019
Investor nervousness over the phase-out of Libor is erasing value from bonds backed by government-guaranteed student loans at an accelerated rate.Five-year securities with triple-A ratings in the asset class were changing hands on the secondary market this week at an average of 97 bp over three-month Libor. At the beginning of the month, they were trading at 85 bp. In mid-October, they were at 70 bp.The widening, which contrasts with a move...



SFA Takes the Lead on ESG Designations

Fri, 13 Dec 2019
The Structured Finance Association is aiming to standardize the information compiled in determining the sustainability and social impact of securitized transactions.The effort will involve the January formation of a task force with the mission of creating a unified approach to measuring so-called ESG principles for structured products — that is, the environmental, social and governance policies for those deals.Many details have yet to be...



Two Founders of New Diligence Jump Ship

Fri, 13 Dec 2019
The leaders of mortgage-review firm New Diligence Advisors abruptly resigned this week.While the plans of Mark Hughes and Ann Gibbons are unknown, sources suggest their exits were prompted by the Nov. 4 purchase of New Diligence’s owner, Selene Holdings, by mortgage-focused investment firm Pretium Partners. The belief is that Hughes and Gibbons disagreed with Pretium about New Diligence’s direction.Industry participants expressed...



Amazon Rekindles Buying Activity

Fri, 13 Dec 2019
Amazon appears likely to continue a recent expansion of its asset-backed bond portfolio.The online retailer was holding an all-time high of $2.2 billion of such securities on Sept. 30, with sources suggesting it plans to add $1 billion or more to that total by mid-2020. The purchases have been heavy on senior bonds backed by prime-quality auto loans, subprime auto loans and credit-card receivables, with a smaller amount of whole-business paper...



Rating Firms Chase PMI Assignments

Fri, 13 Dec 2019
DBRS Morningstar’s hiatus from rating risk-transfer securities has prompted its rivals to take a harder look at grading such products for private mortgage insurers.Morningstar once had a lock on rating risk-transfer securities designed to shed mortgage insurers’ exposures to newly originated loans. But efforts to reconcile its methods with those of DBRS following its July purchase of the agency have faced delays, creating an opening...



Small-Business Lender Folds

Fri, 13 Dec 2019
An online small-business lender that was eyeing securitization as a funding source has shut down.Credit Junction closed for business the week of Dec. 2. Sources said the move resulted from a series of events in which high loan delinquencies prompted MidCap Financial to revoke a $150 million credit facility and assume control of the underlying receivables, which represented the entirety of Credit Junction’s portfolio.MidCap, managed by...



Reverse-Mortgage Tactic Revived

Fri, 13 Dec 2019
Finance of America is preparing a reverse-mortgage securitization, this time with a twist.The $267 million offering is expected to hit the market in the coming days. Nomura is running the books.The transaction would be the first since before the 2007-2008 market collapse to be underpinned by “active” reverse mortgages — that is, loans whose borrowers still live in their homes. All subsequent securitizations in the sector have...



Ruling Adds Doubt to UBS Effort

Fri, 13 Dec 2019
An ongoing legal battle could dampen efforts by UBS to regain a presence as an issuer and underwriter of mortgage bonds.Talk of a setback began to circulate after a U.S. District Court judge’s Dec. 10 denial of a motion by UBS to dismiss a lawsuit from the Justice Department. That complaint, filed in 2018, alleges that the bank defrauded investors in 40 mortgage-bond deals from 2005 to 2007 in part by using faulty loans as collateral.The...



Ygrene Adding to C-PACE Baskets

Fri, 13 Dec 2019
Ygrene Energy is gradually increasing the commercial-borrower exposures in its securitizations of Property Assessed Clean Energy cashflows.The Petaluma, Calif., lender is alone among PACE lenders in bundling both residential and small-balance commercial loans into its bond deals. But the commercial component typically has been minimal.In Ygrene’s most recent securitization, a $315 million deal that priced Oct. 9 via underwriters Deutsche...



Losses Climb for Auto Pools

Fri, 13 Dec 2019
Losses among securitized pools of prime-quality auto loans worsened during the month ended Nov. 15.According to an index maintained by Fitch, losses within the category rose 11 bp to an annualized 0.61% after falling slightly the month before. Delinquencies fell 1 bp to 0.27%, continuing a recent stretch in which that figure has hovered near historical lows. Among subprime-loan pools, losses rose 54 bp to an annualized 9.69%. That resumed a long...



No Precedent Seen in THL Takeover

Fri, 13 Dec 2019
Even as they continue to predict a thinning of the herd among collateralized loan obligation issuers, market participants are pointing to First Eagle Investment’s Dec. 9 agreement to buy THL Credit as an example of what not to expect.The reason: THL, a unit of Thomas H. Lee Partners with $16.8 billion under management, has completed five CLOs totaling $2.3 billion this year, according to Asset-Backed Alert’s ABS Database. Most...



The Grapevine

Fri, 13 Dec 2019
Moody’s has hired John McCarthy as head of relationship management for its structured-finance division in New York. McCarthy started on Dec. 2. In his new role, he manages existing accounts and develops new business, meeting with issuers, investors and other market players. McCarthy had been doing similar work as a senior director in the relationship-management group at S&P. It was his second tour of duty at S&P, having earlier worked there...



The Grapevine

Fri, 13 Dec 2019
Scoggin Management has hired a portfolio manager to oversee investments in asset-backed securities, collateralized loan obligations and other securitized products. Kevin Gordon started this week at the New York hedge fund shop. He previously held a similar post at hedge fund startup Alagna Advisors and, before that, oversaw asset-backed bond trading at KeyBank. Gordon earlier worked at Cowen & Co. and Credit Suisse. Scoggin is led by Craig Effron...



The Grapevine

Fri, 13 Dec 2019
James Jester has landed in Ernst & Young’s structured-finance practice in New York. Jester, who started this month, is working alongside Adam Bareham and Tom Phelan, reviewing the values assigned to clients’ portfolios of structured products. Jester arrived from Thomson Reuters, where he had been in a similar role since 2016. He’s also had stops at Deutsche Bank, UBS, G2 Investment, Sterne Agee, Cohen & Co. and Guggenheim....



The Grapevine

Fri, 13 Dec 2019
Doug Maxham is joining MountainView Financial to help credit unions evaluate mortgages, some destined for securitization. Maxham, who starts in January, will be based in Jacksonville. His previous employers include Pentagon Federal Credit Union, Proficio Mortgage Ventures, EverBank and Bank of Oklahoma. MountainView, headquartered in Denver, specializes in asset valuations and data...



The Grapevine

Fri, 13 Dec 2019
Carmax Auto Finance is seeking a head of credit risk and analytics to oversee origination strategy, including credit policy, for its loan portfolio. The candidate, to be based in Kennesaw, Ga., also would support securitization and other funding efforts. Carmax is a routine issuer of securities backed by prime-quality auto loans, having completed four deals totaling $5.9 billion this year. Candidates must have eight years of experience. To apply,...



The Grapevine

Fri, 13 Dec 2019
Stuart Mitchell, who until September was a senior relationship officer in Deutsche Bank’s corporate-trust division, has resurfaced as head of asset-backed bond sales and product development at UMB Bank in Pittsburgh. Mitchell spent 19 years at Deutsche, serving clients across North and South America. He earlier worked in asset-backed bond sales at M&T...



The Grapevine

Fri, 13 Dec 2019
Arch Capital is looking for a vice president. The position, based in Raleigh, involves determining the pricing of structured mortgage-insurance transactions and assessing the economic impact of various forms of reinsurance. Candidates should have at least seven years of experience in finance, risk management or actuarial disciplines. To apply, click on “careers” at archcapgroup.com and search for job number...



Card Holdings Signal Further Issuance Dip

Fri, 06 Dec 2019
A maneuver by J.P. Morgan has triggered speculation that a broad reduction in credit-card securitization activity will continue into 2020.The talk is tied to a practice in which card-bond issuers hold more collateral accounts in their master trusts than are necessary to support their outstanding obligations. As banks including J.P. Morgan, American Express, Bank of America and Citigroup have sold fewer new card securities, and some of their...



Fannie Aims to Repackage Retained B Notes

Fri, 06 Dec 2019
Fannie Mae is planning to sell bonds backed by risk-transfer notes retained from its Connecticut Avenue Securities program.The offerings would repackage Class-B securities from the deals. Those notes represent the most subordinate positions in the transactions, with the agency typically retaining about half of them from each offering in an effort to align its interests with those of investors.The expectation is that Fannie will conduct a series...



FHFA Prioritizes Big-Picture Approach

Fri, 06 Dec 2019
Political concerns apparently were behind the decision to raise the loan-size limits of Fannie Mae and Freddie Mac.Many market professionals were caught off guard by the Nov. 26 move, considering a well-publicized desire by Federal Housing Finance Agency head Mark Calabria to reduce the roles of Fannie and Freddie. But it turns out he was reluctant to pick a fight with Congress, and even doubted his authority to prevent the increases.When it...



RPL Issuers Reaching New Heights

Fri, 06 Dec 2019
The October-December period has been the busiest quarter ever for securitizations of reperforming mortgages, but the record might be short-lived.With three weeks left in the year, the fourth quarter already has produced a record $8.4 billion of new transactions. Now comes word that several already-active issuers, including Angelo Gordon & Co., Chimera Investment, FirstKey Mortgage and New Residential Investment, could produce $10 billion of...



Solar Lender Broadening Scope

Fri, 06 Dec 2019
Loanpal, America’s largest originator of residential solar-power loans, is expanding its product lineup.The Roseville, Calif., company mainly finances solar-power systems and the upgrades needed for them, such as electric-panel upgrades and roof reinforcements. Starting next week, it also will allow borrowers to bundle the cost of energy-efficiency improvements including insulated windows and new heating, ventilation and air-conditioning...



Santander CEO Maintains Course

Fri, 06 Dec 2019
Santander Consumer USA’s new chief executive plans to leave the company’s auto-loan securitization strategy unchanged.While Mahesh Aditya’s Dec. 2 appointment to the post prompted speculation that he might add his own imprint to the Dallas operation’s funding initiatives, sources said he since has signaled plans to keep those efforts on their current courses. Santander’s securitization team, led by corporate...



Rebranded Kapitus Coming to Market

Fri, 06 Dec 2019
Small-business lender Kapitus is preparing a securitization.The $200 million offering is expected to hit the market by yearend. Guggenheim is running the books.The deal would be the first entirely new transaction to take place under the Kapitus name. Until this January, the New York company was known as Strategic Funding Source — an identity under which it conducted a debut transaction of $105 million in May 2018.It added a $25 million...



Mill Hill Undeterred By CLO Losses

Fri, 06 Dec 2019
Hedge fund operator Mill Hill Capital has taken a hit from a wrong-way bet on collateralized loan obligations.The New York firm’s Mill Hill Credit Opportunities Master Fund lost 9.6% during the first 10 months of the year, leaving the vehicle’s performance close to flat since its inception in November 2016. The entity, with about $100 million under management, lost 4.9% in October alone — its worst monthly result to date,...



PACE Eyed for Hemp Growers

Fri, 06 Dec 2019
A newly written loan has raised the possibility that Property Assessed Clean Energy financing will catch on with hemp cultivators, with some of the resulting receivables potentially landing in securitization pools.Wheatfield Gardens this month received a $2 million loan from Greenworks Lending. The company is using the proceeds to finance a power system for a 12.5-acre greenhouse in North Tonawanda, N.Y., that it uses to grow hydroponic lettuce...



Forklift-Loan Issue Nears Launch

Fri, 06 Dec 2019
Forklift manufacturer Hyster-Yale Group is getting closer to issuing its first asset-backed bond offering.The transaction, estimated at $300 million, is expected to hit the market during the first quarter. The proceeds would fund a mix of loans and leases that Hyster-Yale offers to customers through its lending arm, HYG Financial of Irving, Texas.Those receivables are currently financed via a line of credit from Wells Fargo, which is expected to...



Funding Circle Keeps Producing

Fri, 06 Dec 2019
Funding Circle is preparing its next securitization of U.S. small-business loans.The $300 million offering is expected to hit the market in early 2020 with Credit Suisse running the books.Funding Circle launched its U.S. securitization program with a $198.5 million offering that priced Aug. 16, also via Credit Suisse. In the U.K., it has completed five transactions totaling $1.1 billion since 2016, according to Asset-Backed Alert’s ABS...



Losses Up for Personal Loans

Fri, 06 Dec 2019
Personal-loan performance worsened in November.Among securitized pools of so-called Tier 3 loans, written by Avant and LendingClub to borrowers with credit scores of 630-660, losses rose 658 bp during the period to an annualized 23.45%, according to an index maintained by Kroll. The main reason: higher charge-offs for Avant’s 2018 and 2019 accounts. Delinquencies in the category also were up, rising 39 bp to 4.83%. For Tier 2 loans, offered...



The Grapevine

Fri, 06 Dec 2019
Christy Freer has joined Mayer Brown as counsel. Freer, who works on financing in a variety of asset classes, started Nov. 20 in Washington. She arrived from Capital One, where she was an associate general counsel managing legal support for capital-markets funding, including auto-loan and credit-card securitizations. Before joining Capital One in 2012, Freer worked as an associate at Orrick Herrington and Jones...



The Grapevine

Fri, 06 Dec 2019
An executive with experience trading and structuring asset- and mortgage-backed bonds has landed at BNP Paribas. Solomon Berkoff, who started this week in the Paris bank’s New York office, most recently was a principal at Charleston Capital, an asset manager that finances small lenders. Before joining Charleston in January, Berkoff was a managing director at Hunt Financial. He also has worked at Performance Trust Capital, KGS-Alpha Capital...



The Grapevine

Fri, 06 Dec 2019
Online personal lender Upgrade has added to its capital-markets group. Rebecca Bacon started last week as a senior director in the company’s San Francisco headquarters. Bacon most recently was an associate director in the capital-markets group at Prosper Marketplace. Before joining Prosper in May 2018, she had been at Bank of America since 2012. Bacon also has had stops at Goldman Sachs and Brown Brothers Harriman. Upgrade has completed six...



The Grapevine

Fri, 06 Dec 2019
John Nagykery has joined Capital One’s lender-finance team as a vice president in New York. Nagykery, who started last month, previously was an analyst focusing on collateralized loan obligations at Morningstar. Prior to joining the agency in June 2017, Nagykery spent time at CLO-structuring firm Prime II Management, broker-dealer Eureka Capital Markets and now-shuttered SF Solutions, a structured-investment vehicle...



The Grapevine

Fri, 06 Dec 2019
Nicole Byrns has joined CPP Investment Board, where she focuses on whole-loan purchases and the origination of secured lending transactions. Byrns, who started several weeks ago in the Canadian pension’s New York office, arrived from Deutsche Bank, where she had been a director since 2011. She previously worked at Garrison Investment and Citigroup.



The Grapevine

Fri, 06 Dec 2019
A senior analyst with a background in distressed-debt investments has joined Elmwood Asset Management, an issuer of collateralized loan obligations. As reported by sister publication Hedge Fund Alert, Daniel Berlin jumped to the New York firm in November from high-yield and distressed-debt manager Phoenix Investment Adviser. He had worked at the hedge fund operator since 2018. Berlin’s resume also includes stops at GoldenTree Asset...



The Grapevine

Fri, 06 Dec 2019
Online mortgage lender Better.com is seeking an analyst and a strategist for its capital-markets team in New York. The analyst will evaluate loan-funding strategies and price accounts for sale or securitization. Analyst candidates should have a degree in a quantitative field. The strategist will work to improve workflow and communication across departments amid an expected increase in monthly loan closings. Candidates must have 2-4 years of...



The Grapevine

Fri, 06 Dec 2019
Personal lender Regional Finance is seeking a director for its capital-markets unit. The recruit would be stationed in Greer, S.C., focused on structuring and negotiating the company’s securitizations and warehouse facilities. Candidates must have eight years of experience. Regional has conducted three securitizations totaling $411 million since entering the market in...



Slow Start for Goldman's Non-QM Initiative

Fri, 22 Nov 2019
A plan by Goldman Sachs to buy and securitize home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards is moving slower than expected.With an eye toward launching a bond-issuing program this year, Goldman has spent months lining up agreements with correspondent lenders that would write the accounts to its specifications. But the availability of the loans has fallen short of the...



Another Rental-Car Program In the Works

Fri, 22 Nov 2019
Rental-car company Sixt is developing an asset-backed bond program.The securities would be backed by leases on the Pullach, Germany, operation’s vehicle fleet in the U.S. Sources said an initial offering of some $300 million could hit the market during the second half of 2020 or in early 2021.The plan is still in its early stages, with executives from Sixt recently beginning discussions with bankers and rating-agency analysts. The talks...



Late-Year Investor Maneuvers Lifting Values

Fri, 22 Nov 2019
Senior bonds backed by auto loans and credit-card receivables are rapidly gaining value on the secondary market.The rally began around the end of October, as investors including asset managers and corporate treasury operations increasingly moved into the market. Their goal: to put any undeployed capital to work before closing their books for the year.That annual process typically wraps up by mid-December. “It’s getting close to crunch...



Sprout Talking to Potential Suitors

Fri, 22 Nov 2019
Sprout Mortgage is in play.The company, a major originator of home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards, has been circulating a pitchbook to potential buyers in recent weeks. Chatter about the effort intensified at Information Management Network’s “Non-QM Forum,” which took place Nov. 14-15 in Los Angeles.It’s unclear why Sprout is pursuing...



Whole-Loan Bid Stalls Impac Push

Fri, 22 Nov 2019
Impac Mortgage is delaying its securitization plans.The Irvine, Calif., company had been looking at this year to launch an issuance program underpinned by home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards. But those accounts have been selling so well as whole loans that it has pushed back the effort to 2021 at the earliest.Impac is no stranger to structured finance, having...



Bahamas Deal Hits Blockade

Fri, 22 Nov 2019
A planned securitization from Bahamas Power & Light has again lost momentum.The deal, in development since 2015, at last appeared ready to enter the pipeline in recent weeks, with Citigroup set to lead a $500 million transaction. But indications are a newly launched challenge from the Progressive Liberal Party has convinced Bahamas Power that it lacks the political wherewithal to proceed.The party, which holds a minority position in Parliament,...



Proposed Regs Buoy Online Lenders

Fri, 22 Nov 2019
Marketplace-loan originators believe a proposed regulation could make their accounts more appealing to buyers, even if it doesn’t shield the accounts entirely from state usury laws.A rule suggested this week by the Comptroller of the Currency and the FDIC would clarify that a permissible interest rate for a loan written by a national bank would remain valid after the account is sold or otherwise transferred.The thought is that endorsing a...



CLO Issuers Opt for Direct Funding

Fri, 22 Nov 2019
As they pursue more leeway to invest in the debts of weaker companies, asset managers increasingly are seeking to fund their portfolios by borrowing directly from individual banks instead of issuing collateralized loan obligations.That is, rather than creating new CLOs or syndicated warehouse lines with larger allocations for triple-C-rated collateral, those shops are negotiating for bilateral financing facilities.While bilateral facilities are...



Hiring Adds Traction to MBS Plan

Fri, 22 Nov 2019
Startup mortgage lender SimpleFinance has hired a head of capital markets, with an eye toward launching a securitization program.Shayan Salahuddin arrived in the Newport Beach, Calif., company’s New York office on Nov. 4 after a brief stop at newly forming mortgage originator Loansteady. Salahuddin’s former employers also include Lenderworks, RoundPoint and Fannie Mae, where he worked in portfolio-management and trading...



Double-B CLOs Regaining Value

Fri, 22 Nov 2019
A selloff in the lowest-rated tranches of collateralized loan obligations appears to have abated.On Nov. 19, BlackRock priced a $608.8 million issue via bookrunner Wells Fargo, placing a batch of notes rated “BB-” by S&P at 695 bp over three-month Libor. That translated to an effective yield of 725 bps — some of the tightest pricing for double-B-minus CLO paper in weeks.CLO notes rated double-B-plus, double-B and double-B-minus,...



Slide Continues for CLO Assets

Fri, 22 Nov 2019
Asset quality deteriorated in September among U.S. collateralized loan obligations.Median holdings of loans with “Caa” ratings increased 13 bp for the month to 3.33% for CLOs completed after the credit crisis, according to an index maintained by Moody’s. The cause: The senior-secured debt of seven underlying companies was downgraded to that level.Oil-and-gas exploration company Ultra Resources, whose debt is held in 125...



The Grapevine

Fri, 22 Nov 2019
Credit-card lender Mission Lane has tapped Henry Domenici as chief financial officer. Domenici, who started at the San Francisco company on Nov. 18, will in part focus on carrying out future securitizations. He arrives from credit-card processing firm Square Capital, where he had worked since 2015. Domenici had earlier stops at Morgan Stanley, Barclays and Lehman Brothers. Mission Lane offers credit cards to low- and middle-income consumers. The...



The Grapevine

Fri, 22 Nov 2019
Brian Foley has joined Santa Clara, Calif., investment bank SVB Financial as a managing director. Foley, who started this month in SVB’s New York office, co-heads warehouse funding for online lenders on behalf of parent of Silicon Valley Bank. He previously worked at Macquarie from 2012 to this July. At Macquarie, Foley oversaw a team that supplied funding to investors buying marketplace personal loans for securitization. He also provided...



The Grapevine

Fri, 22 Nov 2019
Former Fitch executive John Olert started this month as a senior advisor at Star Mountain Capital, a New York firm that invests in small and mid-size businesses, including those that might use securitization as a funding strategy. Olert was at Fitch from 1995 to January 2018, serving in various leadership posts in the agency’s structured-product rating and risk groups. In 2015, he was named chief risk officer, a position he held until...



The Grapevine

Fri, 22 Nov 2019
Doo-Sik Nam joined Fitch this month as a director in the agency’s asset-backed securities group. Nam, based in New York, reports to senior director Hylton Heard. Nam previously was at Battery Point Financial, a REIT that specializes in lending to low-income home buyers. Before joining Battery Point in 2014, Nam was a vice president for securitized products at BNP...



The Grapevine

Fri, 22 Nov 2019
Steven Katz has landed at Texas Capital Bank as a senior vice president in a group that offers financing to commercial lenders, including those aiming to issue asset-backed bonds. Katz, who started at the Dallas bank’s New York office in October, arrives from Ally Financial, where he worked in a similar capacity since March. Before his stint at Ally, Katz headed the lender-finance group at Citizens Commercial Banking for more than five...



The Grapevine

Fri, 22 Nov 2019
Subprime auto lender Exeter Finance is seeking a senior analyst for its capital-markets group in Irving, Texas. The new hire will work with underwriters, attorneys and rating agencies on securitizations, including deal execution, cashflow-modeling, investor reports and reviews of loan data. Four years of experience is required. To apply, click on “careers” at exeterfinance.com and search for job number...



The Grapevine

Fri, 22 Nov 2019
PennyMac is seeking a senior vice president for its mortgage-finance unit in Westlake Village, Calif. The recruit would manage all facets of whole-loan purchases, as well as negotiate securitization and repurchase agreements. At least 10 years of experience is required. To apply, click on “careers” at pennymacusa.com and search for job number...



The Grapevine

Fri, 22 Nov 2019
Dechert is recruiting mid- and senior-level associates to support teams focusing on issuance of collateralized loan obligations and asset-backed securities. The law firm particularly is seeking attorneys with experience in auto loans, mortgages and online personal loans. The new hires would be based in New York, Charlotte, Boston or Chicago. For more information, email...



First-Time Managers Take Over CLO Pipeline

Fri, 15 Nov 2019
Several more asset managers are planning to launch new collateralized loan obligation programs.Most of the firms have established track records and experienced staffs, and are looking at CLOs as a quick way to boost their assets under management. While at least one is in the preliminary stages of marketing and could price a deal by yearend, most are likely to surface during the first half of 2020.Among those in the pipeline are East West...



Issuers Consider Filing Public MBS Shelves

Fri, 15 Nov 2019
With the SEC signaling that it likely will ease its disclosure rules for mortgage-bond deals, issuers and their attorneys are considering whether to apply to launch new shelf entities.Other industry participants, meanwhile, are concerned that those efforts might be developing too slowly.Currently, Redwood Trust is the only mortgage-bond issuer to operate a shelf entity that complies with an updated version of the SEC’s Regulation AB that...



Oil Giants Explore Bonds Backed by Reserves

Fri, 15 Nov 2019
Some of the world’s largest oil companies are looking at securitization.Sources said Chevron, Exxon Mobil, Lukoil and their peers have spoken to bankers and rating-agency analysts about the potential deals. Lukoil, for example, is considering an offering of up to $1 billion that could hit the market by midyear 2020.While the exact structures of the offerings remain uncertain, what’s known is that the issuers would use them to monetize...



Risk-Transfer Remics Lack Traction

Fri, 15 Nov 2019
Efforts by Fannie Mae and Freddie Mac to broaden the appeal of their risk-transfer bonds haven’t produced the desired results.The thought was that by structuring the deals as Remics, as opposed to general obligations, Fannie and Freddie could drum up more demand from mortgage REITs. But interest from buyers in that category remains scant, perhaps due to insufficient yields among the transactions’ widely distributed M1 and M2 mezzanine...



Santander Debuts Revolving Trust

Fri, 15 Nov 2019
Santander Consumer USA is preparing a securitization of subprime auto loans using a new shelf entity that employs a revolving structure.The $750 million offering, via Santander Revolving Auto Loan Trust, hit the market Nov. 12, with Barclays, Citigroup and J.P. Morgan sharing bookrunner duties.In a revolving collateral pool, maturing loans are replaced by newer accounts. While more expensive to operate than a straight term structure, a revolving...



Automakers Rev Up Issuance

Fri, 15 Nov 2019
Get ready for a rush of auto-related securitizations.As many as six transactions are expected to hit the market next week, including prime-loan offerings from Ford, Nissan and Scotiabank, and a lease securitization from Tesla. Additionally, a $750 million deal backed by subprime auto loans that Santander Consumer USA began shopping Nov. 12 is expected to price (see article on this page).The activity would build on a spurt of auto-related...



Firm to Bundle Ginnie Obligations

Fri, 15 Nov 2019
A long-planned securitization of Ginnie Mae pass-through certificates is close to completion.The offering, from Thompson Hunt & Associates of Phoenix, is expected to price by yearend with BB&T as underwriter. It would encompass a single tranche of securities with a triple-A rating from Moody’s.The issuing trust was registered with the SEC in 2017. Since then, Thompson Hunt has come close to pricing an offering a few times, only to see...



Aussie Issuers Turn to US Buyers

Fri, 15 Nov 2019
Mortgage-bond issuers in Australia want to increase the volume of securities they distribute in the U.S.Columbus Capital, Pepper Finance and Resimac, all based in Sydney, are developing plans to build larger U.S.-dollar denominated classes into their future offerings. An upcoming transaction from La Trobe Capital, meanwhile, would include the Melbourne lender’s first-ever tranche in American dollars.The reason: With the supply of Australian...



Auto-Loan Indicators Hold Steady

Fri, 15 Nov 2019
The performance of securitized auto-loan pools barely changed during the month ended Oct. 15.According to an index maintained by Fitch, losses among prime-quality loans fell 3 bp for the month to 0.5%. Delinquencies dipped 2 bp to 0.28%, approaching a record low of 0.24% set in April. For subprime loans, where performance had been deteriorating for some time, losses fell 22 bp to 9.15% while delinquencies inched up 4 bp to 5.43%. Despite the...



SFA to Suggest Reg AB Changes

Fri, 15 Nov 2019
The Structured Finance Association has responded to the SEC’s planned reevaluation of Regulation AB by forming a task force that aims to give the regulator feedback on the process.The panel encompasses some two dozen representatives from SFA member companies including issuers, banks and rating agencies. It is emphasizing mortgage-bond deals, where a 2016 rule update known as Reg AB 2 introduced some 250 data points that issuers must fill in...



The Grapevine

Fri, 15 Nov 2019
Swen Nicolaus is no longer heading capital markets at Funding Circle. He left the London firm a few weeks ago, destination unknown. Nicolaus arrived at the small-business lender in November 2018 from Computershare, where he headed loan trading and securitization since 2015. Nicolaus also has worked as a structured-product portfolio manager at J.P. Morgan. He earlier traded asset- and mortgage backed securities at Deutsche...



The Grapevine

Fri, 15 Nov 2019
Bill Moretti, the former head of structured-finance investing at MetLife, has opened a consulting firm. Through his Chainlink Advisory, based in Cranford, N.J., Moretti assists clients on asset-management and technology strategies. Separately, he is serving as chairman of this year’s “ABS Tech Conference,” hosted by Information Management Network. The event will be held Nov. 20 at the Crowne Plaza Times Square in New York....



The Grapevine

Fri, 15 Nov 2019
Capital-markets head Lydia Foo parted ways with online personal lender Upgrade in October. Foo had joined the San Francisco company’s New York office in 2017 as head of its structured-finance efforts, and was elevated to her most recent role this March. She previously was employed at Square since 2016, following stops at Morgan Stanley, Bear Stearns, IndyMac and PricewaterhouseCoopers. Upgrade has completed six securitizations totaling...



The Grapevine

Fri, 15 Nov 2019
Kevin Baum is leaving Incenter unit Finance of America, where his duties include trading reverse mortgages that the New York operation securitizes. Baum, a vice president, has been on board since 2013. His departure date and future plans are unclear. Before joining the company, he worked at Bank of America. Incenter, a Blackstone portfolio company, is headquartered in St. Paul,...



The Grapevine

Fri, 15 Nov 2019
Nisha Choksi has joined the capital-markets team at Figure Technologies, where she is focusing on the company’s recent expansion into the origination and securitization of jumbo home loans. Choksi, a senior director at Figure, started at the San Francisco firm’s New York office in October. She previously worked as a director in the mortgage unit at Social Finance, whose co-founder, Mike Cagney, founded Figure in January 2018. Before...



The Grapevine

Fri, 15 Nov 2019
Nearwater Capital, which offers risk-retention financing to structured-product issuers, is seeking a director and a vice president. The staffers would line up financing for issuers of asset- and mortgage backed securities. Candidates should have at least five years of experience. The hiring effort comes as Nearwater rapidly expands its business. Since launching in 2017, the company has arranged $1.4 billion of risk-retention financing. It also...



The Grapevine

Fri, 15 Nov 2019
Law firm Dentons is seeking an associate with 2-4 years of experience to join its capital-markets practice. The position focuses on secured financing, whole-loan trading, servicing and securitization. Responsibilities include managing a range of transactions and performing due diligence reviews. The staffer would have the flexibility to be based in Houston, New York or San...



The Grapevine

Fri, 15 Nov 2019
Deutsche Bank is seeking a vice president to analyze market trends, with a focus on modeling structured-finance transactions and interpreting data affecting securitization programs. The position is based in New York. Candidates must have three years of experience. To apply, click on “careers” at db.com and search for job number R0034403.



LISTING: ABS MARKET MAKERS

Sat, 09 Nov 2019
Amherst PierpontContact:Adam Smith646-776-7723asmith@apsec.comKevin Gibbons312-416-3898kgibbons@apsec.comJim Dowd312-224-9977jdowd@apsec.comScott Romanowski646-776-7280sromanowski@apsec.comTom Anderson646-776-7836tanderson@apsec.comTom Anderson646-776-7836tanderson@apsec.comMainly a player in mortgage-related deals, including those backed by reperforming and non-qualified loans. Also active in timeshare-loan and subprime auto-loan issues. Kevin...



LISTING: ABS MARKET MAKERS

Sat, 09 Nov 2019
Bank of AmericaContact:Martin Migliara44-207-996-6720martin.migliara@baml.comBenjamin Merrill646-855-0231benjamin.merrill@baml.comGreg Petrie (Europe)44-207-995-6501gregory.petrie@baml.comBrian Kane646-855-9095brian.f.kane@baml.comTristan Cheesman (Europe)44-207-995-9844tristan.cheesman@baml.comDavid Sklar646-855-9095david.sklar@baml.comAmit Patel (Europe)44-207-995-4862amit2.patel@baml.comConsistently among the top underwriters worldwide. Among...



LISTING: ABS MARKET MAKERS

Sat, 09 Nov 2019
BarclaysContact:Marty Attea (U.S.)212-528-7375martin.attea@barclays.comEdward Ballin (Europe)44-207-773-1124 edward.ballin@barclays.comBrian Wiele212-412-5780brian.wiele@barclays.comWill Zak (U.S.)212-412-2449will.zak@barclays.comPratik Gupta (Europe)44-207-773-5575pratik.gupta@barclays.comHired Greg Schmidt from J.P. Morgan in June to co-head, with Grace Park, a unit that buys non-qualified mortgages and supplies warehouse lines to lenders....



LISTING: ABS MARKET MAKERS

Sat, 09 Nov 2019
BMO CapitalContact:Matt Peters312-461-3416matt.peters@bmo.comJohn Vidinovski (Canada)416-359-5248john.vidinovski@bmo.comSean Hayes212-702-1866seanm.hayes@bmo.comPreston Blankenship212-702-1866preston.blankenship@bmo.comDavid Stauber646-658-3955david.stauber@bmo.comMany assignments come from subprime auto lenders Santander Consumer USA and Westlake Services. Also appears on prime-loan deals from Ford and General Motors, along with its own lending...



LISTING: ABS MARKET MAKERS

Sat, 09 Nov 2019
BNP ParibasContact:Matthew Salvner212-841-2788matthew.salvner@us.bnpparibas.comDan McGarvey (U.S.)212-340-6034daniel.mcgarvey@us.bnpparibas.comSimon Jones (Europe)44-207-595-3245simon.l.jones@uk.bnpparibas.comMick Wiedrick (U.S.)917-472-4866mick.wiedrick@us.bnpparibas.comBilal Husain (Europe)44-207-595-5727bilal.husain@uk.bnpparibas.comChris Haid (U.S.)212-842-2090chris.haid@us.bnpparibas.comMehdi Kashani...



LISTING: ABS MARKET MAKERS

Sat, 09 Nov 2019
Cantor FitzgeraldContact:Michael Cunningham212-829-4718michael.cunningham@cantor.comDeirdre Harrington212-610-2220deirdre.harrington@cantor.comChristian Wall212-826-5259christian.wall@cantor.comTim Daly212-826-5259tidaly@cantor.comMichael Collins212-829-5259michael.collins@cantor.comCarlos Garza212-829-5259carlos.garza@cantor.comRebuilding effort that began in 2018 continues, with the bank recently leading non-qualified mortgage deals for Grand...



LISTING: ABS MARKET MAKERS

Sat, 09 Nov 2019
CitigroupContact:Ted Counihan212-723-1155ted.counihan@citi.comJohn Dahl212-723-3716john.c.dahl@citi.comRobert Liao (Europe)44-207-986-4000robert.liao@citi.comCristina Chang (Asia)852-2501-2529cristina.chang@citi.comAoiffe McGarry212-723-6171aoiffe.mcgarry@citi.comGaro Torossian (Europe)44-203-569-4991garo.torossian@citi.comMatt Zhang44-207-986-9393matt.zhang@citi.comIlias Islamo212-723-1695Ilias.a.islamov@citi.comJeff...



LISTING: ABS MARKET MAKERS

Sat, 09 Nov 2019
Credit AgricoleContact:Michael Guarda212-261-7681michael.guarda@ca-cib.comBeth Starr212-261-7714beth.starr@ca-cib.comBrian Kustrup212-261-3584brian.kustrup@ca-cib.comStrong showing in 2019 was aided by last year’s arrival of syndicate chief Beth Starr. With a presence in both the U.S. and Europe, concentrates on deals backed by auto-related cashflows. Also targets deals backed by equipment loans, aircraft leases, railcar leases and...



LISTING: ABS MARKET MAKERS

Sat, 09 Nov 2019
Credit SuisseContact:Michael Dryden212-538-6614michael.dryden@credit-suisse.comCraig Leonard212-325-8549craig.leonard@credit-suisse.comRob Zahra212-325-2747rob.zahra@credit-suisse.comJames Whitticom212-325-2747james.whitticom@credit-suisse.comAbove-market growth reflects work on deals underpinned by auto loans, equipment leases, servicer advances and personal loans, among other assets. Has built a presence in risk-transfer deals, where its work...



LISTING: ABS MARKET MAKERS

Sat, 09 Nov 2019
Deutsche BankContact:Jay Steiner212-250-8424jay.steiner@db.comHarlan Rothman (Europe)44-207-547-2638harlan.rothman@db.comRoey Eyal (Europe)44-207-547-7826roey.eyal@db.comRandall Outlaw (U.S.)212-250-4880randall.outlaw@db.comJonathan McCormick (Europe)44-207-545-5726jonathan.mccormick@db.comSebastien Cottrell212-250-5971sebastien.cottrell@db.comJohn Parker (Europe)44-207-547-3157john.parker@db.comHead structured-product trader John Hanisch...



LISTING: ABS MARKET MAKERS

Sat, 09 Nov 2019
Goldman SachsContact:Vivek Bantwal212-902-6576vivek.bantwal@gs.comChristina Minnis212-902-1612christina.minnis@gs.comScott Walter212-357-8910scott.walter@gs.comEric Siegel212-357-9753eric.siegel@gs.comA leader in personal-loan bonds, with clients including Lendmark Financial, Marlette Funding and Upstart. Also handles deals backed by aircraft leases, solar-power equipment leases and student loans. Other work includes risk-transfer deals tied to...



LISTING: ABS MARKET MAKERS

Sat, 09 Nov 2019
GuggenheimContact:Cory Wishengrad212-518-9909cory.wishengrad@guggenheimpartners.comRichard Onkey212-518-9719richard.onkey@guggenheimpartners.comSreesha Vaman212-381-8773sreesha.vaman@guggenheimpartners.comScott Levy312-977-1883scott.levy@guggenheimpartners.comLed the debut personal-loan issue for Caribbean Financial. Known mainly for deals backed by unusual cashflows. Among whole-business deals, recent clients have included Blackstone-owned...



LISTING: ABS MARKET MAKERS

Sat, 09 Nov 2019
HSBCContact:Nigel Batley44-207-992-2250nigel.batley@hsbcgroup.comMichael Banchik (U.S.)212-525-3399michael.banchik@us.hsbc.comKyson Ho (Asia)85-22-899-8777kysonho@hsbc.com.hkMichael Banchik (U.S.)212-525-3399michael.banchik@us.hsbc.comJames Cunniffe (Europe)44-207-991-5335james.cunniffe@hsbcgroup.comVarun Sharma (U.S.)212-525-3197varun.sharma@us.hsbc.comAlexander Harrison (Europe)44-207-991-5767alexander.harrison@hsbcgroup.comU.S. business leans...



LISTING: ABS MARKET MAKERS

Sat, 09 Nov 2019
J.P. MorganContact:David Lefkowitz (U.S.)212-834-9118david.m.lefkowitz@jpmorgan.comOldrich Masek (Europe)44-207-325-9758oldrich.masek@jpmorgan.comAndy Cherna (U.S.)212-834-4154andy.cherna@jpmorgan.comPeter Basso (U.S.)212-834-3720peter.basso@jpmchase.comBorja Taboada (Europe)44-207-134-0709borja.taboada@jpmorgan.comPrevious market leader has slipped behind Citi this year. But it remains number one in U.S. mortgage bonds, thanks to in-house...



LISTING: ABS MARKET MAKERS

Sat, 09 Nov 2019
JefferiesContact:Mike Wade203-708-6569michael.wade@jefferies.comJordan Rothstein203-708-5910jrothstein@jefferies.comJordan Rothstein203-708-5910jrothstein@jefferies.comMortgage bonds account for a big chunk of volume. So do deals from personal and small-business lenders including Prosper Marketplace and Upgrade.NOTE: Complete listing appeared in November 8, 2019, issue of Asset-Backed Alert and can be found on ABAlert.com, in the...



LISTING: ABS MARKET MAKERS

Sat, 09 Nov 2019
LloydsBankingContact:Tom Spary (U.S.)212-895-9519thomas.spary@lbusa.comMatthew Cooke (Europe)44-207-158-6866mathew.cooke@lbusa.comBen Tuffnell (U.S)212-930-5039benjamin.tuffnell@lbusa.comColin Parkhill (Europe)44-207-158-8253colin.parkhill@lloydsbanking.comThomas Oh212-827-3165tom.oh@lbusa.comDavid Hoffman (Europe)44-207-158-8210david.hoffman@lloydsbanking.comEfforts to gain a foothold in the U.S. have relied in part on auto-loan deals, where...



LISTING: ABS MARKET MAKERS

Sat, 09 Nov 2019
MizuhoContact:Jeremy Ebrahim212-205-7664jeremy.ebrahim@mizuhogroup.comJeremy Ebrahim212-205-7664jeremy.ebrahim@mizuhogroup.comTed Moran212-205-7558ted.moran@mizuhogroup.comRecently hired former Hunt Financial executive Jiwon Park to oversee a move into mortgage-bond underwriting and home-loan warehousing. Issues backed by auto-related cashflows are a core business, with clients including Ford and Mercedes-Benz. Also handles aircraft-lease and...



LISTING: ABS MARKET MAKERS

Sat, 09 Nov 2019
Morgan StanleyContact:Yared Yawand-Wossen212-761-1973yared.yawand-wossen@morganstanley.comRachel Russell212-761-2832rachel.russell@morganstanley.comKenny Rosenberg212-761-5357kenny.rosenberg@morganstanley.comBharat Chandrasekaran212-761-1440bharat.chandrasekaran @morganstanley.comHas been angling for growth in mortgage bonds, with moves that included the May addition of former J.P. Morgan staffer Darius Houseal to handle warehouse lending....



LISTING: ABS MARKET MAKERS

Sat, 09 Nov 2019
MUFGContact:Tricia Hazelwood212-405-7434thazelwood@mufgsecurities.comTricia Hazelwood212-405-7434thazelwood@mufgsecurities.comAnn Tran212-405-7355atran@mufgsecurities.comLauren Hoard212-405-7380lhoard@mufgsecurities.comChris Gray212-405-7085chris.gray@mufgsecurities.comChris Gray took sole leadership of trading with the exit of co-head David Cannon in June. Keith Allman, formerly of Loomis, Sayles & Co., joined in August to lead expansion into...



LISTING: ABS MARKET MAKERS

Sat, 09 Nov 2019
NomuraContact:Jack Kattan212-667-9092jack.kattan@nomura.comPatrick Quinn212-667-9394patrick.quinn@nomura.comBrian Hargrave212-667-9686brian.hargrave@nomura.comMost-active warehouse lender in non-qualified mortgage sector, with clients such as Angel Oak, Caliber Home Loans, Deephaven Mortgage and Invictus Capital. Also runs reverse-mortgage and agency risk-transfer issues.NOTE: Complete listing appeared in November 8, 2019, issue of Asset-Backed...



LISTING: ABS MARKET MAKERS

Sat, 09 Nov 2019
RBCContact:Giuseppe Pagano212-428-6424giuseppe.pagano@rbccm.comRichard Lawrence212-618-7763richard.lawrence@rbccm.comAnthony Tobin (Europe)44-207-029-7108anthony.tobin@rbccm.comChris Amato212-428-6441chris.amato@rbccm.comJaimin Shah (Europe)44-207-029-0438jaimin.shah@rbccm.comRecent growth push centered on deals backed by auto loans, auto leases and student loans. Also leads credit-card offerings for American Express and Capital One, and is...



LISTING: ABS MARKET MAKERS

Sat, 09 Nov 2019
SantanderContact:Devang Sodha (U.S.)212-407-4554devang.sodha@santander.usShaun Baddeley (Europe)44-207-756-4309shaun.baddeley@santandergcb.comPatrick Beranek (U.S.)212-407-7865patrick.beranek@santander.usHeike Hoehl (Europe)44-207-756-7202heike.hoehl@santandergcb.comJason Delanty (U.S.)212-350-3909jdelanty@santander.usColm Corcoran (Europe)44-207-756-6891colm.corcoran@santandercib.co.ukSantander Consumer USA auto-lending unit is major source of...



LISTING: ABS MARKET MAKERS

Sat, 09 Nov 2019
Societe GeneraleContact:Laurie Lawler (U.S.)212-278-6435laurie.lawler@sgcib.comLaurent Mitaty (Europe)33-14-213-9858laurent.mitaty@sgcib.comLaurie Lawler (U.S.)212-278-6435laurie.lawler@sgcib.comRupert Carter (Europe)44-207-676-7647rupert.carter@sgcib.comFouad Farah (U.S.)212-278-6212fouad.farah@sgcib.comTony Venutolo (Europe)33-14-213-4526tony.venutolo@sgcib.comFormer J.P. Morgan executive John Cho will step in by yearend as head banker in the...



LISTING: ABS MARKET MAKERS

Sat, 09 Nov 2019
TD SecuritiesContact:Brad Dansker212-827-2834brad.dansker@tdsecurities.comDavid Stern212-827-2849david.stern@tdsecurities.comGeoffrey Chang212-827-7880geoffrey.chang@tdsecurities.comHas long worked with BMW and other auto lenders. Also focuses on credit-card deals, including in-house deals, and equipment-finance offerings. Looking to hire a senior structuring professional.NOTE: Complete listing appeared in November 8, 2019, issue of Asset-Backed...



LISTING: ABS MARKET MAKERS

Sat, 09 Nov 2019
Wells FargoContact:Chris Pink212-214-5600chris.pink@wellsfargo.comJennifer Doyle704-410-3008jennifer.doyle@wellsfargo.comChristie Tintle704-410-3008christie.tintle@wellsfargo.comSergei Zagin704-410-3315sergei.zagin@wellsfargo.comOne of the busier bookrunners. Focus is on deals backed by auto receivables, credit-card accounts and equipment cashflows. Rehired Gary Zhu after a brief separation, just as he was named a top researcher by Institutional...



LISTING: ABS MARKET MAKERS

Sat, 09 Nov 2019
WestpacContact:Craig Parker61-28-254-9116cparker@westpac.com.auJames Kanaris61-28-254-8798jkanaris@westpac.com.auChristophe Denoux61-28-204-2770cdenoux@westpac.com.auA leader in structured finance in Australia and New Zealand, including private placements.NOTE: Complete listing appeared in November 8, 2019, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Market...



Identity of Vendor Surfaces in Live Well Case

Fri, 08 Nov 2019
At least three banks are preparing to sue Intercontinental Exchange for allegedly overstating the values of bonds that reverse-mortgage lender Live Well Financial pledged as collateral for financing facilities.Sources said Flagstar Bank of Troy, Mich., Beijing-based Industrial and Commercial Bank of China and Mirae Asset Securities of Seoul are among those readying civil complaints. Each case would center around a contention that Intercontinental...



Prime-Loan Issues From GM Seen Declining

Fri, 08 Nov 2019
Buyers of prime auto-loan bonds sold by General Motors are girding for a dip in supply.That’s because origination volume of prime-quality loans by the auto maker’s GM Financial unit fell sharply in the third quarter to $4.4 billion, down 24.4% from a year earlier. The decline is attributable to slower-than-expected sales and a reduction in GM’s incentive programs, according to an Oct. 29 earnings report.Investors expect the drop...



Large Legal-Settlement Deal In the Works

Fri, 08 Nov 2019
Structured-settlement investor Sutton Park Capital is preparing the biggest-ever securitization in the asset class.The $700 million transaction is expected to hit the market in the first quarter at the earliest, according founder Josh Wander. As with Sutton Park’s previous deals, the bonds would be backed by cashflows from legal settlements, with perhaps a smattering of lottery settlements in the mix.Over the years, J.G. Wentworth has been...



Triple-B CLOs Raising Eyebrows

Fri, 08 Nov 2019
Traders of collateralized loan obligations are scratching their heads over a surge of secondary-market activity involving triple-B-rated notes — typically a quiet segment of the market.During the two-week period ended Nov. 1, bid lists encompassing 97 offerings of CLOs rated triple-B-plus, triple-B and triple-B-minus totaling $331.8 million circulated among dealer desks, according to Empirasign. That’s substantially more than the...



Equipment Program Taking Shape

Fri, 08 Nov 2019
Equipment-leasing company Sertant Capital is looking at securitization as a funding source.Executives from the Newport Beach, Calif., company have been discussing the possible effort with bankers and rating-agency analysts. Indications are that an initial deal of some $200 million could come during the second half of 2020.Sertant’s bonds would be backed by leases it writes on behalf of mid- and large-ticket equipment vendors. The company...



SFA Rethinks Mortgage Conference

Fri, 08 Nov 2019
The Structured Finance Association is weighing whether to continue hosting its annual mortgage conference.Attendance at the latest edition of the “Residential Mortgage Finance Symposium,” held Nov. 4-5 at the Conrad Hotel in New York, was down roughly 10% from the 2018 event, which drew about 600 industry professionals. SFA executive director Michael Bright said the trade group will decide in the next few months whether to hold the...



Carvana Readies Next ABS Offering

Fri, 08 Nov 2019
Online used-car dealer Carvana is ramping up its bond offerings amid strong demand from investors.A $300 million deal from the Tempe, Ariz., company that is expected to hit the market this month would mark its fourth issue backed by subprime auto loans this year. The three preceding transactions totaled $1.4 billion.Carvana, which has seen breakneck growth since its founding in 2012, first considered asset-backed bond offerings in 2017, with...



Europe Regs Weigh on US CLOs

Fri, 08 Nov 2019
The European Commission’s endorsement of asset-level reporting templates for structured-product issuers leaves U.S. collateralized loan obligation managers in limbo.Although European regulators introduced new disclosure requirements in January, they have yet to address whether the rules would apply to U.S. CLOs that include euro-denominated tranches. The European Commission, which approved the reporting templates last month, did nothing to...



Why Non-QM Delinquencies Are Up

Fri, 08 Nov 2019
A recent increase in the average delinquency rate among pools of non-qualified mortgages is being blamed on Deephaven Mortgage.Research analysts are pointing to a $240.1 million securitization Deephaven priced in June 2017 as the main contributor to a jump in 60-day delinquencies to 5.2% in October, from 4.4% the month before. The late-payment rate among loans in the collateral pool of Deephaven’s deal spiked to 10.5%, from 6.5%.“Most...



Used-Car Dealer Preps Lease Issue

Fri, 08 Nov 2019
American Car Center is teeing up another offering of bonds backed by subprime leases on used cars.The $228 million transaction is expected to hit the market any day now, with ratings from Moody’s and Kroll. The bookrunners are Credit Suisse and Wells Fargo, which together provide American Car with $246 million of warehouse lines.The deal is backed by a pool of 16,687 leases with an average balance of $16,956. According to Kroll’s...



Losses Cloud Personal-Loan Pools

Fri, 08 Nov 2019
Securitized personal loans to the most-creditworthy borrowers are experiencing losses at a record rate. For the month ended Oct. 31, losses among so-called Tier 1 accounts jumped 31 bp to an annualized 6.04%, according to an index maintained by Kroll. That’s the highest mark since the rating agency created the index in 2016. Delinquencies among the Tier 1 pools — encompassing loans originated by Marlette Funding and Social Finance to...



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

Fri, 08 Nov 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, 08 Nov 2019
Incenter has hired structured-product valuation expert Travis Mayes away from Chimera Investment. Mayes started this week as a director at Incenter’s New York-based Finance of America unit, which issues bonds backed by reverse mortgages. The unit also is developing a non-qualified home-loan program. Mayes reports to senior managing director Khalil Kanaan. Mayes had been at Chimera since 2013, working in the mortgage REIT’s...



The Grapevine

Fri, 08 Nov 2019
Structured-products salesman James Showers joined New York-based R.W. Pressprich & Co. several weeks ago. Showers left Brean Capital in March following its merger with Hunt Financial Securities, where he had worked as a managing director since 2017. Showers previously held sales positions at Stifel Nicolaus, Knight Capital, Aladdin Capital and Hexagon Securities, among other...



The Grapevine

Fri, 08 Nov 2019
ExodusPoint Capital has added a portfolio manager with a background in structured products. Jenna Collins started this week at the hedge fund manager’s London office, where she focuses on debt securities, including structured products, issued by U.K. and European financial institutions. Collins comes off a six-month gardening leave after quitting BlueCrest Capital, where she had been a partner. Before joining BlueCrest in 2014, she traded...



The Grapevine

Fri, 08 Nov 2019
Sales and business-development professional Jenine Fitter has a new job in the sales group at New York-based Sharestates. The online real estate lending and investing firm matches investors with borrowers looking to rehabilitate residential properties. Fitter, who started this week, was most recently vice president of sales at Teaneck, N.J., mortgage lender Accolend. She earlier worked at Birdsey Group, Incenter, Opus CMS and NC Capital, the...



The Grapevine

Fri, 08 Nov 2019
Former BNP Paribas managing director Mary Dierdorff has resurfaced at Moody’s after 20 years away from the rating agency. She is serving on the board of directors. Dierdorff parted ways with BNP in February. She had been at the bank since 2006, overseeing its commercial-paper conduit business. During her first stop at Moody’s, Dierdorff was a senior vice president in the agency’s structured-finance group from 1991 to 1999....



The Grapevine

Fri, 08 Nov 2019
American Mortgage Investment Partners, an asset-management firm that specializes in acquiring and resolving distressed residential mortgages, tapped Michael Daurio this month for a capital-markets role in New York. Daurio had been a portfolio manager at VWH Capital since September 2018. He earlier served as director of capital markets at Kondaur Capital.



The Grapevine

Fri, 08 Nov 2019
Information Management Network has signed up more than 500 industry professionals for its debut “Non-QM Forum.” The event, scheduled for Nov. 14-15 in Los Angeles, will focus on mortgages that fall outside the Consumer Financial Protection Bureau’s “qualified mortgage” guidelines. Non-QM issuance is expected to top $20 billion this year. The forum will be held at the Sofitel Los Angeles at Beverly...



The Grapevine

Fri, 08 Nov 2019
Cross River Bank is looking to hire a capital markets analyst or associate in Fort Lee, N.J. The new staffer would assist senior members of the capital markets team in structuring various types of asset-backed bond transactions. The recruit also would help build analytical systems for regulatory compliance and investor disclosures. Cross River serves as an originator-of-record for online...



LISTING: MBS Market Makers

Sat, 02 Nov 2019
Bank of AmericaContact:Baron Silverstein646-855-1237baron.silverstein@baml.comBrian Kane646-855-9095brian.f.kane@baml.comNick Smith646-855-6843nsmith3@baml.comTop-five bookrunner led the inaugural deal from Quicken Loans in October. Client list also includes Chimera Mortgage and New Residential Investment, and risk-transfer deals from Fannie Mae and Freddie Mac. Baron Silverstein has led the group since arriving as part of Bank of America’s...



LISTING: MBS Market Makers

Sat, 02 Nov 2019
BarclaysContact:Joseph O’Doherty212-528-7482joe.odoherty@barclays.comBrian Wiele212-412-5780brian.wiele@barclays.comWill Zak212-412-2449will.zak@barclays.comUnveiled plan in May to resume issuing mortgage bonds in the U.S. Deals for clients include jumbo-loan and risk-transfer issues. Hired trader Roy Cantu in May to cover older bonds alongside Oren Benzaquen, who specializes in newer jumbo-loan and risk-transfer securities.NOTE: Complete...



LISTING: MBS Market Makers

Sat, 02 Nov 2019
CitigroupContact:Phillip Seares212-723-1145phillip.seares@citi.comCheryl Glory212-723-6809cheryl.l.glory@citi.comPhillip Seares212-723-1145phillip.seares@citi.comPhillip Seares212-723-1145phillip.seares@citi.comBrian Appell212-723-1145brian.j.appell@citi.comHired Michael Marra from Credit Suisse in August to build relationships with issuers. Returning as a conduit sponsor, with an eye toward both qualified and non-qualified collateral. Contending...



LISTING: MBS Market Makers

Sat, 02 Nov 2019
Credit SuisseContact:Peter Sack212-325-7892peter.sack@credit-suisse.comCraig Leonard212-325-8549craig.leonard@credit-suisse.comRyan Bernholz212-325-0357ryan.bernholz@credit-suisse.comAlready-large presence has been growing in part on the strength of non-qualified mortgage deals, where the bank is a major warehouse lender. Clients in that asset class include New Residential Investment and Seer Capital. For qualified-loan deals, the list includes...



LISTING: MBS Market Makers

Sat, 02 Nov 2019
Deutsche BankContact:Ryan Stark212-250-8473ryan.stark@db.comRandall Outlaw212-250-4880randall.outlaw@db.comSebastien Cottrell212-250-5971sebastien.cottrell@db.comSebastien Cottrell took over as head trader in July with the exit of John Hanisch. The group’s specialties include rental-home bonds, where clients include Pretium Partners and Tricon American Homes. In the non-qualified loan sector, has appeared on New Residential Investment and...



LISTING: MBS Market Makers

Sat, 02 Nov 2019
Goldman SachsContact:Joshua Banschick212-357-5486joshua.banschick@gs.comAndrew McDermott212-357-8267andrew.mcdermott@gs.comScott Walter212-357-8910scott.walter@gs.comEric Siegel212-357-9753eric.siegel@gs.comSources of work include own jumbo-mortgage conduit. Also continuing to plan deals backed by non-qualified loans the bank would buy. Joshua Banschick arrived in 2018 from J.P. Morgan. Whole-loan trader Drew Hardt signed on from FirstKey...



LISTING: MBS Market Makers

Sat, 02 Nov 2019
J.P. MorganContact:Michael Brown212-834-5257michael.a.brown@jpmchase.comAndy Cherna212-834-4154andy.cherna@jpmorgan.comMarc Simpson212-834-4176marc.simpson@jpmorgan.comRevival of innovative “portfolio risk-transfer” program resulted in a transaction this month, after regulators swatted down an earlier version. The bank also issues its own jumbo-loan bonds and fields a range of assignments from clients, supporting its standing as the...



LISTING: MBS Market Makers

Sat, 02 Nov 2019
Morgan StanleyContact:Christopher Scott212-761-4940chris.scott@morganstanley.comKenny Rosenberg212-761-5257kenny.rosenberg@morganstanley.comChristopher Scott212-761-4940chris.scott@morganstanley.comHired Christopher Scott away from Ally Financial in October to oversee mortgage finance, including bond underwriting and warehouse lending. That followed the May addition of senior banker Darius Houseal from J.P. Morgan. Both moves dovetailed with a...



LISTING: MBS Market Makers

Sat, 02 Nov 2019
NomuraContact:Jack Kattan212-667-9092jack.kattan@nomura.comPatrick Quinn212-667-9394patrick.quinn@nomura.comBrian Hargrave212-667-9686brian.hargrave@nomura.comStatus as the most active warehouse lender in the non-qualified mortgage sector has fueled a rapid rise in bookrunning volume, with the bank now rivaling the longtime market leaders. Among non-qualified loan deals, clients include Angel Oak, Lone Star Funds and Varde Partners. Also appears...



LISTING: MBS Market Makers

Sat, 02 Nov 2019
Wells FargoContact:Michael Llodra212-214-5600michael.llodra@wellsfargo.comAri Kavour212-214-4883ari.kavour@wellsfargo.comEvan Siegert212-214-5603evan.siegert@wellsfargo.comChristie Tintle704-410-3008christie.tintle@wellsfargo.comMax Jaeger704-410-3303max.jaeger@wellsfargo.comMichael Llodra and Ari Kavour took over as co-heads of mortgage finance last year, helping to establish a routine jumbo-loan securitization program. Heavy supplier of...



Senior MBS Notes Absorb Interest Shortfalls

Fri, 01 Nov 2019
A number of investors didn’t receive the full interest due on their holdings of senior jumbo-mortgage bonds in September.The rare shortfalls occurred across 27 classes of notes with triple-A ratings, including 19 from J.P. Morgan. Also on the list were three classes from Redwood Trust, two apiece from Credit Suisse and Goldman Sachs, and one from LoanDepot.As word of the deficits began to circulate a few weeks ago, investors bombarded...



Auto Deal Marks Debut for Credit Unions

Fri, 01 Nov 2019
GTE Financial is preparing a securitization of prime-quality auto loans — a deal that would mark the first asset-backed bond offering from a federal credit union.The $350 million offering is set to hit the market next week, with Stifel Nicolaus running the books. S&P and DBRS are rating the deal, which is backed by loans to borrowers at the high end of the price spectrum.Several other credit unions including Digital Federal Credit Union,...



Societe Generale Enlists JP Morgan Veteran

Fri, 01 Nov 2019
Societe Generale is bringing in market heavyweight John Cho to lead its asset-backed bond underwriting operation in the U.S.For the next few weeks, Cho apparently will remain employed as a managing director at J.P. Morgan. He is expected to arrive in SocGen’s New York office by yearend as head of asset-backed bond banking, a post that has been in flux since Dan McGarvey jumped to BNP Paribas in 2018.Sources said that once on board, Cho will...



As Costs Rise, CLOs Go to Plan BBB

Fri, 01 Nov 2019
As spreads widen for subordinate collateralized loan obligation notes with double-B ratings, more issuers are seeking to reduce their funding costs by splitting their deals’ triple-B mezzanine tranches into multiple classes.Subordinate CLO securities, which are senior only to equity and typically carry double-B ratings, recently have been selling at spreads as wide as 850 bp over three-month Libor amid growing investor nervousness about...



LendingClub Targeting Safer Loans

Fri, 01 Nov 2019
LendingClub’s next securitization will be backed by personal loans to borrowers with high credit scores.The online lender is eyeing early this month to begin marketing the deal, which is expected to exceed $200 million. Kroll has been hired to rate the bonds, and sources are pointing to Credit Suisse and J.P. Morgan as potential bookrunners.LendingClub’s recent asset-backed bond offerings have been underpinned by loans to borrowers...



Sallie Backs Away From Refis

Fri, 01 Nov 2019
A plan by Sallie Mae to offer student-loan refinancing has stalled.The effort, geared toward individuals with advanced degrees and high-paying jobs, was intended to prevent Sallie’s top-performing borrowers from refinancing with other lenders. But in the process, the Newark, Del., company found that it also might have cannibalized some of the best loans from its core portfolio.Sallie’s decision to step back from the project, in turn,...



SFA Event Showcases Regulators

Fri, 01 Nov 2019
With regulators playing a prominent role in the Structured Finance Association’s annual mortgage-finance conference, industry participants are heading to the event with a list of topics they would like to see addressed.For example, SEC Commissioner Hester Peirce is scheduled to speak at a “fireside chat” where many are hoping for an indication of whether the agency will heed requests for looser disclosure requirements. They also...



REITs Poised to Gain Liquidity

Fri, 01 Nov 2019
Industry participants are increasingly hopeful the Federal Housing Finance Agency will clear the way for mortgage REITs to resume tapping Federal Home Loan Banks for funding — a move that likely would result in a surge of mortgage-bond offerings.The Trump Administration’s blueprint for overhauling the mortgage market, released in September, recommended the FHFA revisit the issue of allowing REITs access to the Home Loan Bank system....



Radian Balks at Seasoned Loans

Fri, 01 Nov 2019
Mortgage insurer Radian doesn’t plan to issue risk-transfer securities referencing policies on older loans, at least for now.On an Oct. 31 earnings call, chief financial officer Franklin Hall said it isn’t cost-effective to shed risk on older policies via the capital markets. He noted the loans covered by those policies have experienced considerable price appreciation and are being prepaid at a rapid rate.Those factors, combined with...



MBS Market's Leading Bankers, Syndicators and Traders

Fri, 01 Nov 2019
The listing below shows contact information for the top mortgage-securitization professionals at the industry’s most-active investment banks.The institutions included typically have achieved rankings atop league tables published by Asset-Backed Alert. The listing takes into account activity across mortgage-related asset classes in the U.S.Head bankers oversee deal origination, structuring and other areas unrelated to trading and syndicate...



The Grapevine

Fri, 01 Nov 2019
Some $41.5 billion of U.S. asset-backed securities priced in October, the heaviest monthly volume since before the 2007-2008 financial crisis.



The Grapevine

Fri, 01 Nov 2019
Managing director Manish Peshawaria has left his job overseeing secondary-market trading of asset- and mortgage-backed bonds in Europe, the Middle East and Africa at Wells Fargo. Peshawaria had been stationed in Wells’ London office since 2010, following a brief stint at Knight Libertas. Peshawaria’s former employers also include Tullett Prebon, Calyon, Commerzbank and Abbey National Treasury...



The Grapevine

Fri, 01 Nov 2019
Mortgage-finance specialist Randy Appleyard joined S&P’s New York office in October as a rating analyst. Appleyard had been working as a consultant since his May exit from Blackrock, where he helped advise clients on matters involving mortgages, servicing rights, rental-home cashflows and other home-loan products. His resume also includes stops at Residential Credit Solutions and Citigroup, along with an advisory firm called AGS Financial...



The Grapevine

Fri, 01 Nov 2019
Separately, S&P brought in Diane Lebowitz on Oct. 14 as a director on its mortgage-bond rating team in New York. Lebowitz had been working since 2013 as the manager of a cashflow-modeling group within Wells Fargo’s corporate-trust division. Her former employers also include Vichara Technologies, Markit and Bloomberg, along with Donaldson Lufkin & Jenrette, Bear Stearns and Lehman...



The Grapevine

Fri, 01 Nov 2019
The destination of former Sculptor Capital executive Nim Sivakumaran has come to light. Sources said Sivakumaran is headed to Morgan Stanley’s London office, where he will fill a senior post involving structured credit products. At Sculptor, where he worked from 2009 to this month, he was a managing director overseeing the hedge fund manager’s investments in structured products in Europe — including asset-backed securities and...



The Grapevine

Fri, 01 Nov 2019
Bond salesman Robert Piszko left BNP Paribas’ structured-product group this week to take a similar job at Mizuho. Piszko, a director based in New York, had been at BNP since 2014. Before that, he was at Guggenheim. He also has held sales positions focused on mortgage products at UBS, Keefe Bruyette & Woods, Barclays and Lehman Brothers.



The Grapevine

Fri, 01 Nov 2019
Servpro, the Gallatin, Tenn., company specializing in flood and fire cleanups, is seeking a chief financial officer. The recruit’s duties would include oversight of a whole-business securitization program that launched with a $510 million deal on Sept. 17. Servpro is focusing on candidates with at least 10 years of experience.



The Grapevine

Fri, 01 Nov 2019
CommonBond is seeking a manager for its capital-markets group in New York. The recruit would handle duties related to the education lender’s securitization programs, along with whole-loan sales and warehouse facilities. He or she also would develop relationships with investors. CommonBond is focusing on candidates with 2-5 years of experience. CommonBond’s securitization program has produced nine deals totaling $2 billion since...



The Grapevine

Fri, 01 Nov 2019
Figure Technologies, a blockchain-technology company that originates home-equity lines of credit and student loans, is seeking a director for its capital-markets group in New York. The recruit would help develop funding mechanisms, including a securitization program the company is set to launch soon. Figure is only considering candidates with at least eight years of...



The Grapevine

Fri, 01 Nov 2019
Solar-power equipment lender Sunlight Financial has an opening for an associate on its capital-markets team in New York. The recruit’s duties would include due-diligence reviews, cashflow modeling, structuring and legal-documentation tasks related the New York company’s funding efforts. Sunlight is focusing on candidates with 2-5 years of...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Willkie FarrContact: David Katz202-303-1149Tom French212-728-8124Prominent in representing mortgage insurers that issue risk-transfer bonds. Also works with a mix of parties involved in financing of subprime auto loans, personal and credit-card accounts. Advises on commercial-paper conduit programs as well, along with purchases and sales of receivables.NOTE: Complete listing appeared in October 25, 2019, issue of Asset-Backed Alert and can be...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
White & CaseContact: David Thatch212-819-8342Frankfurt-based Andreas Lischka made partner in October, a year after coming on board from Hengeler Mueller. Known for work with less-common assets, with issuer-counsel assignments heavy on fleet-lease deals. Whole-business transactions feature more prominently as underwriter counsel. Fields both types of assignments in the CLO sector, where clients include Hayfin Capital and TPG Capital. Work is...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
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.NOTE: Complete listing appeared in October 25, 2019, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Weil GotshalContact: Frank Nocco212-310-8918Issuer-counsel work encompasses automotive fleet-lease deals from Enterprise and Hertz, along with personal-loan offerings from Lendmark Financial and CLOs. Known for representing underwriters of Bank of Scotland and Barclays credit-card transactions, plus banks that put together a whole-business offering for Jack in the Box. Also has a presence in CLOs as issuer counsel.NOTE: Complete listing appeared...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Stroock & StroockContact: Richard Fried212-806-6047Specialized team pursues underwriter-counsel assignments on student-loan securitizations, with Nelnet as its main client.NOTE: Complete listing appeared in October 25, 2019, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Law Firms.”



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Stradley RononContact: David Joseph215-564-8090Kevin Kundra215-564-8183Works with fund managers to structure warehouse lines for a range of loans, many destined for securitization. Among them are mortgages, student loans and online personal loans. Works on similar initiatives for mortgage originators. Known for advising investors as well.NOTE: Complete listing appeared in October 25, 2019, issue of Asset-Backed Alert and can be found on...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Skadden ArpsContact: Andrew Faulkner212-735-2853James Stringfellow212-735-3405Credit-card deals from Bank of America and Capital One represent the bulk of its underwriter-counsel work. Recent issuer-counsel work has been heavy on CLOs, complementing appearances on subprime auto-loan and card offerings.Also has a hand in personal-loan, drug-royalty and whole-business transactions.NOTE: Complete listing appeared in October 25, 2019, issue of...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
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. As issuer counsel, best known for representing Invitation Homes on rental-home transactions. Also seeks work from CLO issuers.NOTE: Complete listing appeared in October 25, 2019, issue of...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Sidley AustinContact: Edward Fine212-839-5395R.J. Carlson212-839-6730The most active law firm representing underwriters of asset- and mortgage-backed bonds. Work there includes subprime auto-loan deals from Santander Consumer USA and prime auto deals from CarMax and General Motors Financial, plus mortgage, equipment-lease and rental-home transactions. Also near the top of the issuer-counsel ranking, where mandates include auto-loan deals from...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Shearman & SterlingContact: Bjorn Bjerke212-848-7395Personal-loan deals from OneMain Holdings top list of underwriter-counsel assignments. Also landed an issuer mandate from Mariner Finance. Represents Freddie Mac on risk-transfer transactions, and maintains a presence in CLOs and commercial-paper conduits. Looks for work in less common asset classes as well.NOTE: Complete listing appeared in October 25, 2019, issue of Asset-Backed Alert and can...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Seward & KisselContact: Greg Cioffi212-574-1439Emphasizing development of risk-retention financing for commercial mortgage bond issuers, now that such assistance isn’t needed for CLOs. Less visible as a deal counsel, but does occasionally represent CLO issuers. Also works on commercial-paper conduit facilities for AT&T and Sprint.NOTE: Complete listing appeared in October 25, 2019, issue of Asset-Backed Alert and can be found on...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Schulte RothContact: Paul Watterson212-756-2563Boris Ziser212-756-2140Works on CLOs, most often for issuers, along with deals backed by nontraditional assets. In that area, it increasingly has focused on litigation finance on top of existing personal-loan and timeshare-loan presence. In the CLO market, clients include Hildene Capital, GoldenTree Asset Management and Prudential. Seeking some experienced associates.NOTE: Complete listing appeared...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Pillsbury WinthropContact: Mark Lessard212-858-1564Small practice best known for representing underwriters of aircraft-lease deals. Additionally continues to pursue work involving railcar leases and drug royalties. Also emphasizes representation of companies in emerging markets that seek to distribute their bonds in the U.S., along with rating agencies and commercial-paper conduits.NOTE: Complete listing appeared in October 25, 2019, issue of...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Paul HastingsContact: Scott Faga202-551-1935Eugene Ferrer212-318-6048The most active underwriter counsel in the CLO market also fields mandates from issuers. A London team has been contributing on the CLO side, while picking up mortgage-bond work. While CLOs represent the group’s core business, a Washington group led by Rich Davis that arrived from DLA Piper in 2018 has been pursuing work involving online loans. A mortgage team in New York...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Paul WeissContact: Jordan Yarett212-373-3126Whole-business specialist has picked up issuer-counsel work this year from Driven Brands, Massage Envy and Primrose Schools. As an underwriter counsel, appears most often on securitizations of timeshare loans, PACE loans and tax liens.NOTE: Complete listing appeared in October 25, 2019, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Law...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Orrick HerringtonContact: Al Sawyers212-506-5041Alan Knoll212-506-5077Activity ranks just below the top tier of firms serving as issuer and underwriter counsel for asset- and mortgage-backed bonds in the U.S. Credit-card deals from American Express and mortgage offerings from Invictus Capital headline issuer presence. Also represents AmEx’s underwriters, along with those for Barclays card transactions and auto-loan securitizations from Ally...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Norton RoseContact: Patrick Dolan212-318-3399Andrew Coronios212-408-5506Continued buildup with April addition of Dallas-based senior associate Geren Brown from Bracewell. Most active as an issuer counsel, but picks up underwriter work as well, with targeted assets including personal loans, power-purchase agreements and trade receivables. Also active outside the U.S., having worked on a Peruvian toll-road deal and offerings in Canada and the U.K....



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Morgan LewisContact: Reed Auerbach212-309-6200Jeffrey Johnson202-739-5645Already among the asset- and mortgage-backed bond market’s most active issuer and underwriter counsel, the firm has continued to building up its staff. The recruits include CLO specialist Paul St. Lawrence, who came on board from Cleary Gottlieb with six associates. And the plan is to keep hiring. Issuer-counsel assignments lately have included deals backed by...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
MilbankContact: Jay Grushkin212-530-5346The former Milbank Tweed is most active in representing issuers of CLOs, where it continues to build on momentum gained with the 2018 hiring of partner Sean Solis and four colleagues from Dechert. The CLO team also has a West Coast presence led by Deborah Festa, and counts staff in London. Asset-backed bond practice works most often on aircraft-lease deals for issuers.NOTE: Complete listing appeared in...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Mayer BrownContact: Julie Gillespie312-701-7132Stuart Litwin312-701-7373David O’Connor44-203-130-3390Julie Gillespie in Chicago and David O’Connor in London were elevated in January to head the practice with Stuart Litwin, after Jon Van Gorp stepped down. The group is the market’s most active in representing issuers of asset- and mortgage-backed bonds, and is near the top of the underwriter-counsel league table. Auto-loan deals...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Locke LordContact: Evan Drutman212-415-8544Small practice represents trustees, servicers and rating agencies. Doesn’t typically appear on new deals, but does advise issuers of mortgage bonds and CLOs. Other work includes mortgage-financing arrangements, including whole-loan trades.NOTE: Complete listing appeared in October 25, 2019, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Latham &amp; WatkinsContact: Loren Finegold 212-906-1327<div&rt;<br&rt;Focus as issuer counsel is on CLOs, with a client list that includes Alcentra, Carlyle Group and DoubleLine Capital. Also represented Blackstone-owned Sesac on a music-royalty transaction. Leans more toward asset-backed bonds as an underwriter counsel, where recent work has encompassed deals underpinned by datacenter cashflows, automotive fleet leases and cellular-tower leases. Also has shown up on deals backed by home-improvement and small-business loans.NOTE: Complete listing appeared in October 25, 2019, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Law Firms.”</div&rt;



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Kramer LevinContact: Gilbert Liu212-715-9460Strong standing as an underwriter counsel reflects a deal mix that includes transactions backed by equipment leases, personal loans, timeshare loans, solar-power equipment loans and PACE loans. Appears less often as an issuer counsel, with past work including representation on securitizations of PACE loans and small-business loans.NOTE: Complete listing appeared in October 25, 2019, issue of...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Kirkland & EllisContact: Jeffrey O&rsquo;Connor312-862-2597Janette McMahan212-446-4754Most active as an issuer counsel, with a growing presence heavy on deals backed by auto loans, auto leases and dealer-floorplan loans from clients including Carvana, NextGear Capital and World Omni. Equipment-loan deals from John Deere and timeshare-loan offerings from Wyndham also support business. Underwriter-counsel assignments mainly entail floorplan deals...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
King & SpaldingContact: Michael Urschel212-556-2285Terry Novetsky212-556-2328September hiring of partner Jonathan Arkins from Arnold & Porter adds to presence in trade receivables. Promotion of Ryan McNaughton to partner, meanwhile, reinforces leadership in advising issuers and underwriters of deals backed by nontraditional assets such as whole-business cashflows, cellular-tower leases and tax liens. League-table presence mainly reflects...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Katten MuchinContact: Anna-Liza Harris202-625-3635Howie Schickler212-940-6391A leader in representing issuers, with a client list that remains heavy on auto lenders including CIG Financial, DriveTime, Ford, General Motors Financial, United Auto Credit and Westlake Services. Also represents Fannie Mae on risk-transfer deals, with assignments on offerings backed by equipment leases and credit-card accounts sprinkled in. Underwriter-counsel work...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Hunton AndrewsContact: Mike Nedzbala704-378-4703Tom Hiner212-309-1302Already one of the most active underwriter counsels for asset- and mortgage-backed bond deals in the U.S., and has risen into the upper echelon of firms representing issuers following the 2018 merger of Hunton & Williams and Andrews Kurth. Added mortgage-securitization attorney Serena Mentor from Wells Fargo in May, reinforcing a team whose clients have included Angel Oak,...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Hogan LovellsContact: Emil Arca212-918-3009U.S. team&rsquo;s most visible work recently has involved dollar-denominated deals backed by credit-card accounts and remittance payments from Latin America. In the States, looks for assignments on securitizations of card receivables, small-business loans, marketplace-originated personal loans, cellular-tower leases, trade receivables and billboard revenues.NOTE: Complete listing appeared in October 25,...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Greenberg TraurigContact: Mark Michigan212-801-9200Among the most active counsel to issuers of timeshare-loan bonds. Also represented Orange Lake Resorts on a capital infusion from KSL Capital. Other work includes advising issuers of bonds backed by equipment loans and subprime auto loans. Additionally looks for assignments involving U.S. aircraft leases and a mix of receivables in Latin America.NOTE: Complete listing appeared in October 25,...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
DLA PiperContact: Richard Reilly212-335-4910Has focused on representing issuers and underwriters of CLOs, where it lost counsel Art Rublin to Mayer Brown in July. A Boston team that has worked mainly on securitizations of nontraditional assets, meanwhile, is attempting to broaden into more mainstream deals. That effort is led by David Ridenour and Andrew Sroka. A London unit is active in most major asset classes.NOTE: Complete listing appeared in...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
DentonsContact: Stephen Kudenholdt212-768-6847Mortgage deals, including those backed by non-qualified loans, account for the largest portion of the firm&rsquo;s issuer- and underwriter-counsel assignments in the U.S. Also represents Westgate Resorts on timeshare-loan issues. Partner Stephen Kudenholdt plays a lead role on the Structured Finance Association&rsquo;s mortgage committee and has been working with the SFA on the transition to new...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
DechertContact: Malcolm Dorris212-698-3519The number-one CLO issuer counsel, with John Timperio leading that side of the business. Advises CLO issuers occasionally, while appearing routinely as an issuer and underwriter counsel in the asset-backed bond market, especially for auto-loan deals. Asset-backed bond head Matt Hays, who joined in 2018 from Kirkland & Ellis, has been pushing into deals backed by marketplace-originated personal loans....



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Cravath SwaineContact: Nicholas Dorsey212-474-1350Stephen Burns212-474-1146Stephen Burns and Nicholas Dorsey took over as group heads with Joel Herold&rsquo;s 2018 move to DRI Capital. Most often has represented Citigroup as underwriter of the bank&rsquo;s own credit-card securitizations, while also advising Citi&rsquo;s in-house lawyers on issuer-counsel work. But that business dried up when Citi paused its card-bond program a year ago. Has been...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Clifford ChanceContact: Robert Villani212-878-8214Much of the firm&rsquo;s U.S. work comes from CLO issuers, where it has expanded into deals backed by commercial mortgages. Underwriter-counsel presence has benefitted from an increasing supply of non-qualified mortgage securitizations. Has been working with online personal-loan originators as well. London team is active in commercial-paper conduits and CLOs, along with credit-card and mortgage...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Cleary GottliebContact: Macey Levington202-974-1972Beau Sterling202-974-1918Michael Mazzuchi202-974-1572Business has held up despite the February departure of Paul St. Lawrence for Morgan Lewis and the 2018 retirement of Joyce McCarty, particularly when it comes to underwriter-counsel work on CLOs. As issuer counsel, recent assignments have included a CLO from Owl Rock Capital, which lends to mid-size businesses, and an equipment-lease offering...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Chapman & CutlerContact: Walt Begley312-845-3904Works for issuers and underwriters, but more often underwriters, with a focus on mainstream asset-backed securities and CLOs. Often works with underwriters of student-loan deals, for example, while appearing as issuer counsel on credit-card transactions from Bank of America and Capital One and personal-loan offerings from Avant and Upgrade. Has advised on PACE financing arrangements.NOTE: Complete...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Cadwalader WickershamContact: Michael Gambro212-504-6825Stuart Goldstein704-348-5258Maintains a sizeable presence. Issuer work is heavy on risk-transfer deals from Freddie Mac, plus CLOs. Focus as an underwriter counsel also includes CLOs, complemented by a mix of deals including those backed by student loans, insurance receivables and less-common assets.NOTE: Complete listing appeared in October 25, 2019, issue of Asset-Backed Alert and can be...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Arnold & PorterContact: Henry Morriello212-836-7170Focuses on consumer-lending and banking regulations. Most visible work on new deals involves CLOs, but handles financing through conduits and term securitization for mortgages, personal loans, transportation assets and trade receivables.NOTE: Complete listing appeared in October 25, 2019, issue of Asset-Backed Alert and can be found on ABAlert.com, in the &ldquo;Rankings&rdquo; section under...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Alston & BirdContact: Aimee Cummo212-210-9428Growing practice added partners Andrew Petersen to a new London office in August and Katrina Llanes in New York in April. As issuer counsel, core work includes subprime auto-loan deals from Consumer Portfolio Services and mortgage transactions from AIG and TIAA. Offerings from Chimera Mortgage and several small-business and personal lenders headline underwriter-counsel presence. Also growing in...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Allen & OveryContact: John Hwang212-610-6395Co-head David Krischer retired this year, leaving John Hwang as the practice&rsquo;s top lawyer. But firm gained a partner with the March addition of Nick Robinson, a former Milbank Tweed attorney who advises underwriters, issuers and investors in the collateralized loan obligation market. CLOs are a focus, with Larry Berkovich and Franz Ranero leading those efforts. In asset-backed bond sector, advises...



LISTING: SECURITIZATION LAW FIRMS

Sat, 26 Oct 2019
Winston & StrawnContact: Dan Passage213-615-1739Jeffrey Stern212-294-6710CLOs remain at the center of the practice. Among other deal types, fields issuer-counsel assignments on PACE-loan offerings from Energy Efficient Equity and PACE Funding, along with personal-loan transactions from Prosper Marketplace. As underwriter counsel, PACE and small business loan offerings top the list. Derivatives-focused counsel Aaron Levy joined in New York in July...



Morgan Stanley Installs Top Mortgage Pro

Fri, 25 Oct 2019
Morgan Stanley has consolidated leadership of its mortgage-finance activities under a new group head.Christopher Scott arrived in Morgan Stanley&rsquo;s New York office on Oct. 1 from Ally Financial, where he worked in an investment-management role since 2008. His newly created post encompasses supervision of the bank&rsquo;s activities as a whole-loan trader, warehouse lender and bond underwriter in the U.S. non-agency mortgage market.Those...



Buyers Shrugging Off Subprime-Auto Woes

Fri, 25 Oct 2019
Worsening asset quality doesn&rsquo;t seem to be deterring buyers of bonds backed by subprime auto loans.Despite heightened delinquencies and losses across the asset class, investors bid aggressively on Avid Acceptance&rsquo;s latest securitization. Buysiders also were eager to get their hands on a deal from Consumer Portfolio Services, even after some of the company&rsquo;s earlier offerings were downgraded.The continued demand has been evident...



CLO Loan Parameters Feeding Disruption

Fri, 25 Oct 2019
Amid signs of stress in the leveraged-loan market, spreads are widening for certain junior collateralized loan obligation notes.The problem is, the CLOs’ own portfolio-management guidelines are magnifying the effects.Among double-B-rated CLO notes, which typically are senior only to the deals’ equity pieces, new securities with five-year lives are selling at spreads in excess of 800 bp over three-month Libor — at least 15 bp wider than...



New Card-Bond Issuer Emerging

Fri, 25 Oct 2019
An online originator of subprime credit-card accounts is preparing its debut securitization.Fair Square Financial expects to float the $300 million offering in November, with Citigroup running the books.Fair Square lends under the &ldquo;Ollo&rdquo; brand. The Wilmington, Del., company was formed in 2016 by several former Bank of America and Capital One executives. Among them: chief executive Rob Habgood, who played a leading role in BofA&rsquo;s...



Jet-Lease Securitization Coming

Fri, 25 Oct 2019
Global Jet Capital is teeing up another aircraft-lease securitization.The deal, expected to hit the market by yearend, has an estimated size of $600 million.Global Jet&rsquo;s bond-issuing program has helped to support growing origination volume, with the Danbury, Conn., company telling investors this week that it anticipates writing $800 million of leases this year &mdash; up 20% from 2018.Global Jet so far has completed three asset-backed bond...



Kroll Seeks Bigger Role Outside US

Fri, 25 Oct 2019
Kroll is taking steps to increase its footprint outside the U.S.The New York company, which has had operations in Dublin since 2017, opened an office in London in September &mdash; in part to prepare for the possibility that the U.K. splits from the European Union without a trade agreement in place. Meanwhile, it has begun applying to regulators in Asia for official recognition as a rating agency.Mauricio Noe, who oversees Kroll&rsquo;s European...



CommonBond Adds Libor Provision

Fri, 25 Oct 2019
CommonBond has joined the list of education lenders whose asset-backed bonds contain provisions for the end of Libor.The New York company was set to price a $202 million deal this week that names the Secured Overnight Funding Rate as the first choice to replace Libor as the benchmark for its sole floating-rate class. In that respect, the offering follows a May 31 set of recommendations from the Federal Reserve&rsquo;s Alternative Reference Rates...



New Rules Cloud Risk-Transfer Effort

Fri, 25 Oct 2019
Concerns are arising that pending Financial Accounting Standards Board guidelines could make it less appealing for banks to conduct &ldquo;portfolio risk-transfer&rdquo; securitizations.The rules will require financial institutions to estimate &ldquo;current expected credit losses&rdquo; for loans in their portfolios, as opposed to the existing practice of booking losses as they&rsquo;re incurred. The change, which has been in the pipeline sine...



MGIC Favoring Risk-Transfer Deals

Fri, 25 Oct 2019
MGIC may accelerate the timing of its next risk-transfer securitization.Expectations were that the Milwaukee mortgage insurer would return to market in early 2020. But chief financial officer Nathan Colson said in an Oct. 22 earnings call that an increase in new policies could prompt it to act sooner. &ldquo;We may get there a little faster than we thought,&rdquo; he said.MGIC wrote $19.1 billion of mortgage-insurance policies during the third...



Cards Book Fewer Charge-Offs

Fri, 25 Oct 2019
Securitized credit-card accounts continued to perform well in the third quarter. After increasing over the previous three months, charge-offs among U.S. bankcard pools fell 16 bp to 2.99% during the July-September period, according to an index maintained by Fitch. At the same time, 60-day delinquencies dropped 2 bp to 1.05%. Fitch senior director Herman Poon said the lower delinquency level suggests that charge-offs should remain low in the short...



Leading Law Firms in US Securitization Industry

Fri, 25 Oct 2019
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&rsquo;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...



The Grapevine

Fri, 25 Oct 2019
Former Skadden Arps partner Richard Kadlick has resurfaced at Gracie Point, a New York originator of insurance-premium loans. Kadlick had been out of the market since leaving his job as head of Skadden&rsquo;s structured-product practice in March 2018. Since entering the market in 2017, Gracie Point has completed four securitizations totaling $67.2...



The Grapevine

Fri, 25 Oct 2019
Brean Capital added a bond salesman to its New York office this week. Brian Trotta, a director, had been at StormHarbour Securities since 2012. His former employers also include Tullett Prebon, Deutsche Bank and Credit Suisse.



The Grapevine

Fri, 25 Oct 2019
Paul Mangione has taken a job at 10X Capital, a New York technology company that matches lenders with institutional buyers of their accounts. Mangione had been running his own advisory shop, Fort Schuyler Advisors, since 2016. He previously was at Apollo Global, most recently as part of a team tasked with overseeing a REIT called Apollo Residential Mortgage, and before that was at Credit...



The Grapevine

Fri, 25 Oct 2019
BMW is seeking a senior treasury analyst for its capital-markets group in Woodcliff Lake, N.J. The recruit would help to structure the company&rsquo;s securitizations of auto loans, auto leases and dealer-floorplan loans, and would act as a contact for banks, rating agencies and law firms. BMW is focusing on candidates with at least five years of experience. To apply, click on &ldquo;careers&rdquo; at bmwgroup.com and search for job number...



The Grapevine

Fri, 25 Oct 2019
OnDeck Capital is looking for a senior capital-markets analyst. The New York-based recruit would work on the company&rsquo;s small-business loan securitizations, along with financing mechanisms including warehouse lines and corporate debt. OnDeck is focusing on candidates with 2-4 years of experience. The company has completed three securitizations totaling $650 million since April...



The Grapevine

Fri, 25 Oct 2019
The Loan Syndications and Trading Association is creating a grass-roots advocacy group. Unlike the LSTA, whose members are corporations, the Business Loans Coalition will be open to individuals. The idea is to give members a means of personally engaging in political processes that affect business lending and keep them updated on developments involving the industry.?Membership is free, with funds to be raised through an affiliated political action...



The Grapevine

Fri, 25 Oct 2019
William Jennings has resumed playing professional poker while awaiting the start of proceedings in a wrongful-termination lawsuit he filed against Hunt Cos. Jennings participated in a World Poker Tour tournament in Atlantic City, N.J., on Sept. 15-20, finishing in 118th place. He previously won nearly $1 million as a WPT participant in 2015 and 2016. Jennings had been co-head of the fixed-income division at Jefferies until 2014, when he was...



The Grapevine

Fri, 25 Oct 2019
Personal-loan originator Affirm has an opening for an associate on its capital-markets team in New York. The new staffer would assist in the structuring, negotiation and execution of various financing arrangements, including a securitization program the company plans to launch in 2020. Over time, the recruit could take on a deal-leadership role. Affirm is seeking candidates with 1-3 years of experience. The lender&rsquo;s capital-markets division...



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 &mdash; 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&rsquo;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.&ldquo;China&rsquo;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 &ldquo;portfolio risk-transfer&rdquo; transaction before J.P. Morgan began marketing the deal on Oct. 8.&ldquo;Treasury is on board [with] it, and the OCC knew about it,&rdquo; 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 &ldquo;originate-to-own&rdquo; program went into development in 2015, but was slow to gain momentum &mdash; 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&rsquo;s &ldquo;qualified-mortgage&rdquo; guidelines were trading this week at 85 bp over one-month Libor. That&rsquo;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 &mdash; this year&rsquo;s highest count so far, according to Asset-Backed Alert&rsquo;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 &mdash; a key indicator of borrower health &mdash; deteriorated by seven points for the month to 2853 for CLOs issued since the financial crisis with ratings from Moody&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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 &ldquo;Asian Structured Credit Summit&rdquo; 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&rsquo;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&rsquo;t claim capital relief via two &ldquo;portfolio risk-transfer&rdquo; 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&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; 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&rsquo;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 &mdash; out of total issuance of perhaps $1 billion.What&rsquo;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&rsquo;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 &mdash; continuing a pattern in which Renew, like many of its...



Arch Pays Price in Rating Switch

Fri, 11 Oct 2019
Arch Capital&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;s securitization-trust unit since 2010, in addition to developing strategies tied to the U.K.&rsquo;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&rsquo;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&rsquo;s and a stint at Fitch.



The Grapevine

Fri, 11 Oct 2019
Andrew Petersen joined Alston & Bird&rsquo;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&rsquo;s capital-markets division in Chanhassen, Minn., in September as a director. Johnson most recently worked as a principal in Piper Jaffray&rsquo;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&rsquo;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&rsquo;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&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; 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.&ldquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;s startup, Cleveland Park Advisors, works with clients on regulatory matters, marketing strategies and product development. Among the Washington firm&rsquo;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&rsquo;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&rsquo;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&rsquo; existing Libor benchmarks for a trend in which securities backed by accounts written under the Federal Family Education Loan Program have been losing value &mdash; 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% &mdash; 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 &ldquo;Dino&rdquo; Nikitiades is set to join Citi&rsquo;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&rsquo;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&rsquo;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&rsquo;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 &ldquo;careers&rdquo; 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&rsquo;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&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; 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&rsquo; 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&rsquo;s Volcker Rule under which banks&rsquo; 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&rsquo;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&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; 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&rsquo;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&rsquo;s because Fannie&rsquo;s Connecticut Avenue Securities transactions and Freddie&rsquo;s Structured Agency Credit Risk issues distribute cashflows on a sequential basis &mdash; 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&rsquo;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&rsquo;s warehouse line to $350 million, from $200 million. Meanwhile, there&rsquo;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 &mdash; 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% &mdash; 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&rsquo;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&rsquo;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&rsquo;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&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s...



The Grapevine

Fri, 27 Sep 2019
Vice president Meg Kehan left Credit Suisse&rsquo;s consumer-asset securitization team in New York last week to join Carvana. Kehan&rsquo;s new role has her working on the used-car retailer&rsquo;s asset-backed bond program, which so far has produced three subprime-loan deals totaling $1.4 billion &mdash; 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&rsquo;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&rsquo;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&rsquo;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 &ldquo;careers&rdquo; at www.bayview.com and search for job number...



Industry Pros Flock to Miami Conference

Fri, 20 Sep 2019
The turnout for this year&rsquo;s &ldquo;ABS East&rdquo; 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&rsquo;s edition of the event drew 4,235 participants &mdash; a record that few expected to be...



BNP Continues Raid on SocGen Executives

Fri, 20 Sep 2019
Two more leaders of Societe Generale&rsquo;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&rsquo;ll start as managing directors in BNP&rsquo;s New York office in mid-November &mdash; joining former SocGen colleague Daniel McGarvey.Pucel headed syndication for SocGen&rsquo;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 &ldquo;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&rsquo;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&rsquo;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 &ldquo;fallback&rdquo; 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&rsquo;s brands, including Fatburger, Bonanza Steakhouse, Buffalo&rsquo;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 &mdash; CongressThe Trump Administration&rsquo;s blueprint for removing Fannie Mae and Freddie Mac from government conservatorship didn&rsquo;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 &mdash; the same formats they maintained before their near-collapses in 2008. But the...



REGULATORY ROUNDUP

Fri, 20 Sep 2019
QM Rule &mdash; CFPBAs the window closes for Fannie and Freddie to buy home loans that fall outside the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; 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 &mdash; 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 &mdash; FHFAThe Trump Administration&rsquo;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 &mdash; Fed, SEC, TreasuryMortgage-bond issuer Redwood Trust is making a case to ease the Dodd-Frank Act&rsquo;s risk retention rule. The REIT began the effort via an August report in which it maintains that an issuer&rsquo;s skin-in-the-game requirement should apply only to the percentage of a securitization pool consisting of loans that don&rsquo;t meet the CFPB&rsquo;s &ldquo;qualified-mortgage&rdquo; standards. Currently, an...



REGULATORY ROUNDUP

Fri, 20 Sep 2019
Student Loans &mdash; 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 &mdash; 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 &mdash; 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 &mdash; 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&rsquo; 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 &mdash; 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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;s Dallas office this month as a vice president responsible for managing risk associated with the bank&rsquo;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&rsquo;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&rsquo;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&rsquo;s &ldquo;ABS East&rdquo; 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 &mdash; 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 &mdash; including those that don&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;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&rsquo; 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&rsquo; 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&rsquo;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&rsquo;s Sept. 11 &ldquo;Libor Symposium&rdquo; at the Kimpton Hotel Monaco in Washington. Among the buysiders&rsquo; requests: That issuers adopt more clear and consistent &ldquo;fallback language&rdquo;...



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 &mdash; a key indicator of borrower health &mdash; deteriorated by seven basis points to 2847 among CLOs issued since the credit crisis, according to an index maintained by Moody&rsquo;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 &ldquo;deep-subprime&rdquo; 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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;s duties would include structuring new deals underpinned by the company&rsquo;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&rsquo;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&rsquo;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 &ldquo;qualified mortgages.&rdquo;The request will come via a comment letter the SFA is preparing to submit in response to the CFPB&rsquo;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 &ldquo;ability-to-repay&rdquo; 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, &ldquo;it&rsquo;s been crickets&rdquo; 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&rsquo;s short-term credit rating to &ldquo;A-2&rdquo; (from &ldquo;A-1&rdquo;). Because Nomura supplies a liquidity backstop for Guggenheim&rsquo;s White Plains Capital conduit, the agency followed up with a corresponding downgrade to that vehicle&rsquo;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&rsquo;s mission is to supply financing to small and mid-size companies that often are ignored by larger Wall Street institutions &mdash; 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 &mdash; 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
&ldquo;Deep subprime&rdquo; 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&rsquo; 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 &mdash; 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&rsquo;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&rsquo;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&rsquo;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&rsquo;s 2017 merger with Kaye Scholer &mdash; 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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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 &ldquo;careers&rdquo; 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&rsquo;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.&rsquo;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&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; guidelines.While the early payment rate among non-qualified loans has broadly subsided this year, the reduction wasn&rsquo;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&rsquo;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&rsquo;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&rsquo;s &ldquo;ABS East&rdquo;...



Downgrade Pressures CLOs

Fri, 16 Aug 2019
An increase in exposures to loans rated &ldquo;Caa1&rdquo; or lower has contributed to an overall decrease in asset quality among U.S. collateralized loan obligations.The median weighted average rating factor &mdash; a key indicator of borrower health &mdash; deteriorated in June, rising 5 bp to 2840 for CLOs issued since the financial crisis, according to an index maintained by Moody&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;ll be stationed in New York, reporting to securitized-product head Christopher Belhumeur. Sullivan had joined NatAlliance via its January purchase of Auriga USA&rsquo;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&rsquo;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 &mdash; 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&rsquo;s Newport Beach, Calif., office in July. He previously worked as a trading assistant on Nomura&rsquo;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&rsquo;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&rsquo; 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 &ldquo;careers&rdquo; 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&rsquo; 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 &ldquo;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 &mdash; in particular, extensive disclosures of loan data.Changes to &ldquo;Reg AB 2&rdquo;...



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&rsquo;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 &mdash; 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&rsquo;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&rsquo; 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&rsquo;s warehouse-lending and securitization group &mdash; 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&rsquo; New York office in July. His plans are unknown. Sullivan joined NatAlliance through its January purchase of Auriga USA&rsquo;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 &mdash; 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&rsquo;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 &mdash; where he handled trading and risk-management duties involving mortgage products. Zall&rsquo;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&rsquo;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&rsquo; 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&rsquo;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&rsquo;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&rsquo;s known at this point is that the bonds would be backed by cashflows from the company&rsquo;s nuclear-power division. The exact nature of the receivables remains uncertain, however.Westinghouse&rsquo;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 &ldquo;qualified-mortgage patch.&rdquo;At issue is the CFPB&rsquo;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&rsquo;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&rsquo;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&rsquo;s treasury department has been working on a plan to securitize Yamaha-branded credit-card receivables. And it&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;s decision to seek reinsurance for a pool of affordable mortgages reflected a realization that the receivables weren&rsquo;t suitable for its flagship risk-transfer program.Fannie tested bond investors&rsquo; 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&rsquo;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&rsquo;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&rsquo;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&rsquo;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 &mdash; most recently with a focus on trading whole loans that don&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; 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&rsquo; 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 &ldquo;careers&rdquo; 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&rsquo;s duties would include servicing-related functions and monitoring of the automaker&rsquo;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 &ldquo;careers&rdquo; 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&rsquo;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 &ldquo;Non-QM Forum&rdquo; on Nov. 14-15. The event will feature panels on the origination, servicing, financing and management of home loans that don&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s definition of &ldquo;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&rsquo;s latest collateralized loan obligation &mdash; the Tokyo institution&rsquo;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&rsquo;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&rsquo;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&rsquo;s THL Credit Wind River, 2012-1, and ArrowMark Partners&rsquo; Elevation CLO, 2015-4. In both cases, the deals&rsquo; 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%. &ldquo;Despite a slight uptick, performance remains strong,&rdquo; 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&rsquo;s expected to weigh in around $350 million &mdash; 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&rsquo;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&rsquo;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&rsquo; 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&rsquo;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&rsquo; New York office in June with a focus on deals backed by pre-credit-crisis mortgages and newer home loans that don&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; 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&rsquo;s New York office with a focus on measuring the values and market risk associated with the bank&rsquo;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&rsquo;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&rsquo;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&rsquo;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 &mdash; that is, the projected percentage of losses within securitization pools that mortgage insurers aren&rsquo;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&rsquo; reinvestment periods is growing.Responding to tightening spreads, issuers refinanced seven CLOs from July 1-15. That&rsquo;s about on pace with June&rsquo;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&rsquo;s. His...



UK Plans Final Mortgage Auction

Fri, 19 Jul 2019
The U.K. Treasury&rsquo;s &ldquo;bad bank&rdquo; 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 &#163;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 &mdash; with just four transactions totaling $1.3 billion having priced so far this year, according to Asset-Backed Alert&rsquo;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&rsquo;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&rsquo;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&rsquo;s proposed value. At the time, the equity market was in the midst of a month-long slide.But a subsequent rebound doesn&rsquo;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&rsquo; 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&rsquo; other student debts, includes two senior tranches that are expected to...



Tariffs Dent Container-Lease Deals

Fri, 19 Jul 2019
President Trump&rsquo;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&rsquo;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&rsquo; exposures to obligors with &ldquo;Caa&rdquo; grades to increase in May.Median holdings in post-credit-crisis deals&rsquo; triple-C buckets increased 23 bp to 3.63% for the month, according to Moody&rsquo;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 &ldquo;concept release,&rdquo; the regulator said it &ldquo;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.&rdquo; 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&rsquo; 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&rsquo;s investments in structured products, including asset-backed securities, mortgage bonds and collateralized loan obligations. Silverstein starts July 22 in the insurer&rsquo;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&rsquo;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&rsquo;s McLean, Va., office in June as an analyst on the Chicago firm&rsquo;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 &ldquo;about&rdquo; 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&rsquo;s securitization program. Earlier, he worked at HSBC and General Electric. While Guaranteed Rate writes a variety of agency and non-agency loans, there&rsquo;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&rsquo;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 &ldquo;careers&rdquo; 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&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; 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 &mdash; roughly twice this year&rsquo;s average weekly output &mdash; 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&rsquo;t abiding by the Federal Reserve&rsquo;s May 31 recommendation that new deals include provisions for automatic benchmark replacements.In anticipation of the coming phaseout of Libor, the Fed&rsquo;s Alternative Reference Rates Committee released the guidelines as part of a broader package addressing &ldquo;fallback language&rdquo; 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% &mdash; 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&rsquo;s ABS Database.S&P&rsquo;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&rsquo;s ABS Database. That&rsquo;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&rsquo;s ABS...



The Grapevine

Fri, 12 Jul 2019
Cecilia Park joined Credit Agricole&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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 &ldquo;careers&rdquo; 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&rsquo;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 &ldquo;instant-buying&rdquo; 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&rsquo;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&rsquo;s biggest investors, Norinchukin has been known to take &ldquo;anchor&rdquo; positions in new deals encompassing half or more of certain transactions&rsquo; 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 &ldquo;point-of-sale&rdquo; 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 &mdash; 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 &mdash; 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&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; 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&rsquo;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 &ldquo;Non-QM Forum&rdquo; 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 &ldquo;ABS East&rdquo; and &ldquo;Global ABS,&rdquo; 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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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 &mdash; 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&rsquo;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&rsquo;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&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; 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&rsquo;s investment arm.That left Citi&rsquo;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&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified mortgage&rdquo; 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&rsquo;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. &ldquo;The week of July 8 looks pretty light too,&rdquo; 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&rsquo;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&rsquo;s Citi heading into midyear with a slight lead &mdash; 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&rsquo;s ABS Database. The bank...



The Grapevine

Fri, 28 Jun 2019
Meanwhile, Amanda Magliaro left her job as head of Citigroup&rsquo;s structured-product syndicate desk this week. Magliaro had joined Citi&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;Brien is no longer employed at Blackstone. As chief credit officer of an operation called Blackstone Residential Trust, O&rsquo;Brien led credit-risk analysis for purchases of non-agency mortgages. He had just joined the firm&rsquo;s Dallas office in November from Goldman Sachs. O&rsquo;Brien&rsquo;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&rsquo;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&rsquo;s securitization-related exposures affect its capital reserves under the Bank for International Settlements&rsquo; Basel 3 accord. BofA is focusing on candidates with at least five years of experience. To apply, click on &ldquo;careers&rdquo; 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&rsquo;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&rsquo;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&rsquo;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 &mdash; previously known as the Structured Finance Industry Group &mdash; assumes a title formerly held by chief executive Michael Bright.&ldquo;Kristi is going to be a big part of helping SFA to achieve the lofty objectives we have,&rdquo; 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&rsquo;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&rsquo; 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&rsquo;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&rsquo;s completion of a securitization with provisions to replace Libor as a benchmark could inspire other issuers to follow suit &mdash; 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&rsquo;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 &mdash; 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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;s duties at Avant included tasks related to the Chicago company&rsquo;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&rsquo;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&rsquo;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 &mdash; 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 &ldquo;RMBS 3.0&rdquo; 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&rsquo;s year-to-date loan-origination volume ballooned to $1 billion as of May 31. It focuses on loans that don&rsquo;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&rsquo;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&amp;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&rsquo;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 &mdash; 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&rsquo;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&rsquo;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&rsquo;s &ldquo;Global ABS&rdquo; conference, at last returning the event&rsquo;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&rsquo;s New York office since May 2018, with a focus on buying and selling nonperforming and reperforming mortgages for the company&rsquo;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&rsquo;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&rsquo; 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. &ldquo;All we&rsquo;re waiting on now is the rate sheets,&rdquo; 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&rsquo;Urso has stepped down as president of Podium Mortgage Capital.The exit of D&rsquo;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&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; standards. D&rsquo;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&rsquo;s trade war with China could increase prices for already-expensive smartphones, particularly Apple&rsquo;s iPhones, investors said last week they would press Verizon about the potential impact of higher tariffs on sales of the devices &mdash; 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&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; standards.The offering, which has been in the works since March 2018, is expected to hit the market in the coming weeks &mdash; 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&rsquo;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&rsquo; lending guidelines and borrowers&rsquo; 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&rsquo;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&rsquo;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 &ldquo;RMBS 3.0&rdquo; 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 &ldquo;careers&rdquo; at jpmorganchase.com and search for...



The Grapevine

Fri, 07 Jun 2019
Collateralized loan obligation trader Jim Soltesz resigned from Mariner Investment&rsquo;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&rsquo;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.



LISTING: ABS MARKET MAKERS

Sat, 01 Jun 2019
Wells FargoContact:Chris Pink212-214-5600chris.pink@wellsfargo.comJennifer Doyle704-410-3008jennifer.doyle@wellsfargo.comChristie Tintle704-410-3008christie.tintle@wellsfargo.comSergei Zagin704-410-3315sergei.zagin@wellsfargo.comOne of the busier bookrunners across the structured-finance industry. When it comes to U.S. ABS, the focus is on deals backed by auto receivables, credit-card accounts and equipment cashflows. Has lost a few...



LISTING: ABS MARKET MAKERS

Sat, 01 Jun 2019
TD SecuritiesContact:Brad Dansker212-827-2834brad.dansker@tdsecurities.comDavid Stern212-827-2849david.stern@tdsecurities.comGeoffrey Chang212-827-7880geoffrey.chang@tdsecurities.comHas a strong history of working with auto lenders, including Ford, Hyundai and Nissan. Also focused on credit-card and equipment-finance deals. Seeking a senior structuring professional to expand slate of services.NOTE: Complete listing appeared in May 31, 2019, issue...



LISTING: ABS MARKET MAKERS

Sat, 01 Jun 2019
Societe GeneraleContact:Robert Pucel (U.S.)212-278-5243robert.pucel@sgcib.comLaurent Mitaty (Europe)33-14-213-9858laurent.mitaty@sgcib.comRobert Pucel (U.S.)212-278-5243robert.pucel@sgcib.comRupert Carter (Europe)44-207-676-7647rupert.carter@sgcib.comFouad Farah (U.S.)212-278-6212fouad.farah@sgcib.comTony Venutolo (Europe)33-14-213-4526tony.venutolo@sgcib.comHired Arkady Lippa in April to run ABS banking in Australia. In U.S. ABS, deal volume has...



LISTING: ABS MARKET MAKERS

Sat, 01 Jun 2019
SantanderContact:Devang Sodha (U.S.)212-407-4554devang.sodha@santander.usShaun Baddeley (Europe)44-207-756-4309shaun.baddeley@santandergcb.comPatrick Beranek (U.S.)212-407-7865patrick.beranek@santander.usHeike Hoehl (Europe)44-207-756-7202heike.hoehl@santandergcb.comJason Delanty (U.S.)212-350-3909jdelanty@santander.usColm Corcoran (Europe)44-207-756-6891colm.corcoran@santandercib.co.ukAside from subprime auto-loan deals for Santander Consumer...



LISTING: ABS MARKET MAKERS

Sat, 01 Jun 2019
RBCContact:Giuseppe Pagano212-428-6424giuseppe.pagano@rbccm.comRichard Lawrence212-618-7763richard.lawrence@rbccm.comAnthony Tobin (Europe)44-207-029-7108anthony.tobin@rbccm.comChris Amato212-428-6441chris.amato@rbccm.comJaimin Shah (Europe)44-207-029-0438jaimin.shah@rbccm.comGrowth appears to have leveled off. But the bank remains busy with deals including auto-loan securitizations from CarMax and Hyundai, credit-card offerings from American...



LISTING: ABS MARKET MAKERS

Sat, 01 Jun 2019
NomuraContact:Jack Kattan212-667-9092jack.kattan@nomura.comPatrick Quinn212-667-9394patrick.quinn@nomura.comBrian Hargrave212-667-9686brian.hargrave@nomura.comRecognized as the most active warehouse lender in the non-qualified mortgage sector, with a client list that includes Angel Oak Mortgage, Caliber Home Loans, Deephaven Mortgage and Invictus Capital. Also runs reverse-mortgage deals and agency risk-transfer offerings. Hired sales specialist...



LISTING: ABS MARKET MAKERS

Sat, 01 Jun 2019
MUFGContact:Tricia Hazelwood212-405-7434thazelwood@mufgsecurities.comTricia Hazelwood212-405-7434thazelwood@mufgsecurities.comAnn Tran212-405-7355atran@mufgsecurities.comLauren Hoard212-405-7380lhoard@mufgsecurities.comDavid Cannon212-405-7397david.cannon@mufgsecurities.comChris Gray212-405-7085chris.gray@mufgsecurities.comSaw worldwide underwriting volume slide in 2018, due in large part to a decline in U.S. asset-backed bond activity. In that...



LISTING: ABS MARKET MAKERS

Sat, 01 Jun 2019
Morgan StanleyContact:Yared Yawand-Wossen212-761-1973yared.yawand-wossen@morganstanley.comRachel Russell212-761-2832rachel.russell@morganstanley.comKenny Rosenberg212-761-5357kenny.rosenberg@morganstanley.comBharat Chandrasekaran212-761-1440bharat.chandrasekaran@morganstanley.comHired Kenny Rosenberg to head ABS and MBS syndicate activities in the U.S. under Rachel Russell. Also brought in Darius Houseal to lead warehouse lending for non-agency...



LISTING: ABS MARKET MAKERS

Sat, 01 Jun 2019
MizuhoContact:Jeremy Ebrahim212-205-7664jeremy.ebrahim@mizuhogroup.comJeremy Ebrahim212-205-7664jeremy.ebrahim@mizuhogroup.comTed Moran212-205-7558ted.moran@mizuhogroup.comHas been moving up the underwriter league tables. Securitizations of auto-related cashflows are a core business, with clients including CarMax, Ford, Nissan and World Omni. Also works on equipment-lease and personal-loan offerings.NOTE: Complete listing appeared in May 31,...



LISTING: ABS MARKET MAKERS

Sat, 01 Jun 2019
LloydsBankingContact:Tom Spary (U.S.)212-895-9519Thomas.Spary@lbusa.comMatthew Cooke (Europe)44-207-158-6866mathew.cooke@lbusa.comBen Tuffnell (U.S)212-930-5039Benjamin.tuffnell@lbusa.comColin Parkhill (Europe)44-207-158-8253colin.parkhill@lloydsbanking.comThomas Oh212-827-3165tom.oh@lbusa.comDavid Hoffman (Europe)44-207-158-8210david.hoffman@lloydsbanking.comTom Spary is taking over as U.S. banking chief as Parker Russel retires. Ben Tuffnell...



LISTING: ABS MARKET MAKERS

Sat, 01 Jun 2019
JefferiesContact:Mike Wade203-708-6569michael.wade@jefferies.comJordan Rothstein203-708-5910jrothstein@jefferies.comJordan Rothstein203-708-5910jrothstein@jefferies.comABS team works mostly with online personal and small-business lenders, including Social Finance, Prosper Marketplace and Upstart. Underwrote a deal that financed Rosy Blue&rsquo;s stock of diamonds. Also expanding risk-retention financing for mortgage originators.NOTE: Complete...



LISTING: ABS MARKET MAKERS

Sat, 01 Jun 2019
J.P. MorganContact:David Lefkowitz (U.S.)212-834-9118david.m.lefkowitz@jpmorgan.comOldrich Masek (Europe)44-207-325-9758oldrich.masek@jpmorgan.comAndy Cherna (U.S.)212-834-4154andy.cherna@jpmorgan.comPeter Basso (U.S.)212-834-3720peter.basso@jpmchase.comBorja Taboada (Europe)44-207-134-0709borja.taboada@jpmorgan.comThe world&rsquo;s leading structured-product bookrunner. Also the top underwriter of mortgage-related deals in the U.S., thanks in...



LISTING: ABS MARKET MAKERS

Sat, 01 Jun 2019
HSBCContact:Nigel Batley44-207-992-2250nigel.batley@hsbcgroup.comMichael Banchik (U.S.)212-525-3399michael.banchik@us.hsbc.comKyson Ho (Asia)85-22-899-8777kysonho@hsbc.com.hkMichael Banchik (U.S.)212-525-3399michael.banchik@us.hsbc.comJames Cunniffe (Europe)44-207-991-5335james.cunniffe@hsbcgroup.comVarun Sharma (U.S.)212-525-3197varun.sharma@us.hsbc.comAlexander Harrison (Europe)44-207-991-5767alexander.harrison@hsbcgroup.comWorldwide reach...



LISTING: ABS MARKET MAKERS

Sat, 01 Jun 2019
GuggenheimContact:Cory Wishengrad212-518-9909cory.wishengrad@guggenheimpartners.comRichard Onkey212-518-9719richard.onkey@guggenheimpartners.comSreesha Vaman212-381-8773sreesha.vaman@guggenheimpartners.comScott Levy312-977-1883scott.levy@guggenheimpartners.comWorking to bolster syndicate desk by recruiting more personnel. Remains a major player in deals with unusual cashflows, with a list of clients that has included Coinstar, Domino&rsquo;s...



LISTING: ABS MARKET MAKERS

Sat, 01 Jun 2019
Goldman SachsContact:Vivek Bantwal212-902-6576vivek.bantwal@gs.comChristina Minnis212-902-1612christina.minnis@gs.comScott Walter212-357-8910scott.walter@gs.comEric Siegel212-357-9753eric.siegel@gs.comA leader in personal-loan bonds, with a range of clients including Lendmark Financial and Marlette Funding. Also emphasizing deals backed by aircraft leases, solar-power equipment leases and student loans. Has also expanded offerings to include...



LISTING: ABS MARKET MAKERS

Sat, 01 Jun 2019
Deutsche BankContact:Jay Steiner212-250-8424jay.steiner@db.comHarlan Rothman (Europe)44-207-547-2638harlan.rothman@db.comRoey Eyal (Europe)44-207-547-7826roey.eyal@db.comRandall Outlaw (U.S.)212-250-4880randall.outlaw@db.comJonathan McCormick (Europe)44-207-545-5726jonathan.mccormick@db.comJohn Hanisch212-250-7730john.hanisch@db.comJohn Parker (Europe)44-207-547-3157john.parker@db.comTypically among the more activeABS underwriters in the U.S....



LISTING: ABS MARKET MAKERS

Sat, 01 Jun 2019
Credit SuisseContact:Michael Dryden212-538-6614michael.dryden@credit-suisse.comCraig Leonard212-325-8549craig.leonard@credit-suisse.comRob Zahra212-325-2747rob.zahra@credit-suisse.comJames Whitticom212-325-2747james.whitticom@credit-suisse.comSolid market presence propped up by work on deals involving mortgages, where the bank has resumed issuing its own deals. Auto loans also receive emphasis. So do personal loans, where the bank hired Ray Yang...



LISTING: ABS MARKET MAKERS

Sat, 01 Jun 2019
Credit AgricoleContact:Michael Guarda212-261-7681michael.guarda@ca-cib.comBeth Starr212-261-7714beth.starr@ca-cib.comBrian Kustrup212-261-3584brian.kustrup@ca-cib.comU.S. ABS team started 2019 with a flood of transactions, aided by last year&rsquo;s arrival of syndicate chief Beth Starr. Concentrating on deals backed by auto loans and leases, dealer-floorplan loans, rental-car cashflows and fleet leases. Targeted asset classes also include...



LISTING: ABS MARKET MAKERS

Sat, 01 Jun 2019
CitigroupContact:John Dahl (U.S.)212-723-3716john.c.dahl@citi.comSusan Mills (U.S.)212-723-6376susan.mills@citi.comRobert Liao (Europe)44-207-986-4000robert.liao@citi.comAmanda Magliaro212-723-6171amanda.magliaro@citi.comTim Michael (Europe)44-207-986-9000tim.michael@citi.comTed Counihan212-723-6325ted.counihan@citi.comPhilip Seares212-723-1145philip.seares@citi.comMatt Zhang44-207-986-9393matt.zhang@citi.comA top player among underwriters...



LISTING: ABS MARKET MAKERS

Sat, 01 Jun 2019
Cantor FitzgeraldContact:Michael Cunningham212-829-4718michael.cunningham@cantor.comDeirdre Harrington212-610-2220deirdre.harrington@cantor.comBill Heskett212-610-2434bill.heskett@cantor.comChristian Wall212-826-5259christian.wall@cantor.comTim Daly212-826-5259tidaly@cantor.comMichael Collins212-829-5259michael.collins@cantor.comCarlos Garza212-829-5259carlos.garza@cantor.comBegan rebuilding securitized-product business in 2018, winning...



LISTING: ABS MARKET MAKERS

Sat, 01 Jun 2019
BNP ParibasContact:Matthew Salvner212-841-2788matthew.salvner@us.bnpparibas.comDan McGarvey (U.S.)212-340-6034daniel.mcgarvey@us.bnpparibas.comSimon Jones (Europe)44-207-595-3245simon.l.jones@uk.bnpparibas.comMick Wiedrick (U.S.)917-472-4866mick.wiedrick@us.bnpparibas.comBilal Husain (Europe)44-207-595-5727bilal.husain@uk.bnpparibas.comChris Haid (U.S.)212-842-2090chris.haid@us.bnpparibas.comMehdi Kashani...



LISTING: ABS MARKET MAKERS

Sat, 01 Jun 2019
BMO CapitalContact:Matt Peters312-461-3416matt.peters@bmo.comJohn Vidinovski (Canada)416-359-5248john.vidinovski@bmo.comSean Hayes212-702-1866seanm.hayes@bmo.comPreston Blankenship212-702-1866preston.blankenship@bmo.comDavid Stauber646-658-3955david.stauber@bmo.comMany of the bank&rsquo;s assignments come from subprime auto lenders, including Credit Acceptance Corp., Santander Consumer USA and Westlake Services. Also appears on prime auto deals...



LISTING: ABS MARKET MAKERS

Sat, 01 Jun 2019
BarclaysContact:Marty Attea (U.S.)212-528-7375martin.attea@barclays.comEdward Ballin (Europe)44-207-773-1124 edward.ballin@barclays.comBrian Wiele212-412-5780brian.wiele@barclays.comWill Zak (U.S.)212-412-2449will.zak@barclays.comPratik Gupta (Europe)44-207-773-5575pratik.gupta@barclays.comContinues to focus on auto-loan and credit-card deals, including in-house card offerings. Whole-business issues also are a big part of its business, along with...



LISTING: ABS MARKET MAKERS

Sat, 01 Jun 2019
Bank of AmericaContact:Martin Migliara44-207-996-6720martin.migliara@baml.comBenjamin Merrill646-855-0231benjamin.merrill@baml.comGreg Petrie (Europe)44-207-995-6501gregory.petrie@baml.comBrian Kane646-855-9095brian.f.kane@baml.comTristan Cheesman (Europe)44-207-995-9844tristan.cheesman@baml.comDavid Sklar646-855-9095david.sklar@baml.comAmit Patel (Europe)44-207-995-4862amit2.patel@baml.comWith Ted Breck&rsquo;s move to a wholesale-banking role,...



LISTING: ABS MARKET MAKERS

Sat, 01 Jun 2019
Amherst PierpontContact:Adam Smith646-776-7723asmith@apsec.comScott Romanowski646-776-7280sromanowski@apsec.comTom Anderson646-776-7836tanderson@apsec.comTom Anderson646-776-7836tanderson@spsec.comA player in mortgage-related deals, including those backed by reperforming and non-qualified loans. Also active in rental-home, timeshare-loan, personal-loan and subprime auto-loan issues. Hired back Kevin Gibbons to help oversee lender-finance...



LISTING: ABS MARKET MAKERS

Sat, 01 Jun 2019
WestpacContact:Craig Parker612-8254-9116cparker@westpac.com.auJames Kanaris612-8254-8798jkanaris@westpac.com.auChristophe Denoux612-8204-2770cdenoux@westpac.com.auA leader in structured finance in Australia and New Zealand, with a presence that spans all conventional and unconventional asset classes. Also manages a large portfolio of privately placed structured products.NOTE: Complete listing appeared in May 31, 2019, issue of Asset-Backed Alert...



European Pros Set to Deal at "Global ABS'

Fri, 31 May 2019
With the European market finally showing signs of life, the &ldquo;Global ABS&rdquo; 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&rsquo;s event was about 3,800.&ldquo;Our...



Tariff Exposures Worry Verizon Investors

Fri, 31 May 2019
President Trump&rsquo;s trade war could raise Verizon&rsquo;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 &mdash; a move that would create a corresponding increase in the prices of those products.Concerned that Verizon&rsquo;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&rsquo;s &ldquo;qualified-mortgage&rdquo; 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&rsquo;s agreement to buy DBRS has set industry participants abuzz about who will oversee the companies&rsquo; 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 &mdash; 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&rsquo;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&rsquo;s, which on May 7 raised it ratings on bonds totaling $986 million. Now, word is circulating that Moody&rsquo;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 &mdash; and thus the potential for disruptions to arise in the process of switching to new benchmarks &mdash; 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&rsquo;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&rsquo;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&rsquo;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&rsquo; 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&rsquo; 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&rsquo;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&rsquo;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&rsquo;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 &ldquo;careers&rdquo; 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&rsquo;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&rsquo;s New York, Washington or Chicago offices. To apply, click on &ldquo;careers&rdquo; 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&rsquo; 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&rsquo;s...



PG&E Considers $10 Billion Deal

Fri, 24 May 2019
It&rsquo;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&rsquo;t be offering warehouse funding for the accounts, which fall short of the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; standards. It&rsquo;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 &amp; 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&amp;P and Morningstar.&nbsp;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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 &ldquo;bank-statement&rdquo; mortgages, which have been growing as a category of securitization collateral.The Irvine, Calif., company&rsquo;s &ldquo;Bank Statement Analyzer&rdquo; would give originators of those credits direct access to borrowers&rsquo; 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&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; 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.&rsquo;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&rsquo; commercial-paper conduit business in the U.S., is absorbing Russell&rsquo;s...



The Grapevine

Fri, 24 May 2019
Bond-market veteran Chris O&rsquo;Connor has joined the New York office of brokerage firm INTL FCStone as head of debt capital markets. O&rsquo;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&rsquo;s Charlotte office, where as a director he was responsible for assigning values to mortgage pools and securities &mdash; 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&rsquo;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&rsquo;s Chicago office to return to Amherst Group. Gibbons had joined CapOne from Amherst&rsquo;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&rsquo; 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&rsquo;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&rsquo;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&rsquo;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 &ldquo;Rankings&rdquo; section under &ldquo;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 &ldquo;Rankings&rdquo; section under &ldquo;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&rsquo;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&rsquo;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 &ldquo;Rankings&rdquo; section under &ldquo;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&rsquo;s first since 2015, and it&rsquo;s hoping to win more new-deal business after receiving management&rsquo;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&rsquo;s purchases of senior notes and contacts with other players in Asia. Chris Gray is filling in as head trader following Sean Gibson&rsquo;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&rsquo;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 &ldquo;Rankings&rdquo; section under &ldquo;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&rsquo;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&rsquo;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&rsquo;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 &ldquo;Rankings&rdquo; 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&rsquo;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&rsquo; 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&rsquo;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&rsquo;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&rsquo;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. &ldquo;We&rsquo;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&rsquo; 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&rsquo;s ABS Database.All of J.P. Morgan&rsquo;s mortgage securitizations in the last two years were backed by...



Industry PAC Begins Spending

Fri, 17 May 2019
The Structured Finance Industry Group&rsquo;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&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; 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 &mdash; a measure of the excess collateral protecting holders of triple-A and double-A-rated paper &mdash; 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&rsquo;t kick in any of the collateral for the first five offerings. Instead, it arranged &ldquo;club&rdquo; 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&rsquo;s underwriter league tables. They also include broker-dealers that don&rsquo;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&rsquo;s New York office in April as head of the bank&rsquo;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&rsquo;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&rsquo;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&rsquo;s New York office in January. He previously worked briefly at Hunt Financial Securities, only to be let go amid that firm&rsquo;s 2018 merger with Brean Capital. Cleary&rsquo;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 &ldquo;careers&rdquo; 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&rsquo;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&rsquo;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&rsquo;s origination volume led Fiat&rsquo;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&rsquo;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 &ldquo;simple, transparent and standardized&rdquo; 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&rsquo;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 &mdash; a figure that&rsquo;s expected to double in 2019.The U.S. unit invests separately from AXA Investment, the main buyside operation of the Paris insurer.AXA&rsquo;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&rsquo;s head of mortgage policy.Goodwin&rsquo;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&rsquo;s experience as a mortgage-finance professional who most recently...



NY Fast-Tracking C-PACE

Fri, 10 May 2019
The City of New York&rsquo;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&rsquo;s size. Now those projections have grown, thanks to the New York City Council&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;s talks with Moody&rsquo;s yield a rating assignment, it would mark only the agency&rsquo;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&rsquo;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&rsquo;s Atlanta headquarters while working on a range of deals including...



The Grapevine

Fri, 10 May 2019
The executive in charge of National Life&rsquo;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 &mdash; 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&rsquo;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&rsquo;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&rsquo;s New York office last week. Kreydin&rsquo;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&rsquo;s New York capital-markets team in April as a senior analyst working on the company&rsquo;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&rsquo;s New York sales team on May 6 as a managing director focused on pitching the company&rsquo;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&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;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 &mdash; 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&rsquo;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&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified mortgage&rdquo; standards.While details remain sketchy, Ashmore&rsquo;s firm, Vista Point Mortgage of Irvine, Calif., apparently has begun buying mortgages from a network of lenders. It&rsquo;s unclear whether Vista Point&rsquo;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 &mdash; 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&rsquo;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&rsquo;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&rsquo;s inaugural securitization &mdash; namely, that tax-collection authorities across Florida could void lien sales the Jacksonville company used to build the $209 million deal&rsquo;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&rsquo;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&rsquo;s banking arm, where he worked since 2006. While DWS is a longtime CLO issuer, it hasn&rsquo;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&rsquo;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&rsquo;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 &ldquo;about Annaly&rdquo; and then &ldquo;careers&rdquo; 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&rsquo;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 &mdash; 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&rsquo;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&rsquo;s structured-product industry is entering a busier period.That&rsquo;s in part because the $1.3 billion transaction was one of the first designated as &ldquo;simple, transparent and standardized.&rdquo; 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 &mdash; 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 &mdash; a key indicator of borrower health &mdash; deteriorated slightly while remaining at the equivalent of a &ldquo;B2&rdquo; grade, according to Moody&rsquo;s. Median defaults remained at zero but are expected to have increased in March. That&rsquo;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&rsquo;s New York office this week with the title of director of leveraged loans, had been leading research for Och-Ziff&rsquo;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&rsquo;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&rsquo;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&rsquo;s mortgage-bond underwriting team in March. Jin had been at Wells since 2011. As a member of FirstKey&rsquo;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&rsquo;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&rsquo;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&rsquo;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 &mdash; 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&rsquo;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. &ldquo;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&rsquo; 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&rsquo;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 &mdash; 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 &mdash; 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&rsquo;s acquisition of Peak 8 Asset Management could position the combined company to securitize a mix of less-liquid assets.At a minimum, Hunt&rsquo;s hefty balance sheet and access to investors are expected to contribute to an expansion of Peak 8&rsquo;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&rsquo;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&rsquo;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&rsquo;s head collateralized loan obligation trader, with sources suggesting that he is headed to a buyside firm. Rizzo had just joined Bank of Montreal&rsquo;s New York office via the bank&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo; 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&rsquo;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&rsquo;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&rsquo; origination activities.About 5,000 people are expected to attend &ldquo;LendIt Fintech USA 2019&rdquo; 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&rsquo;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 &ldquo;deceptive negotiating tactics&rdquo; in trades both by buyers and sellers &mdash; 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 &mdash; originated to the weakest borrowers &mdash; 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&rsquo;s structured-finance division today. Binz had joined S&P&rsquo;s New York office in 1998 as an analyst, and helped rebuild the agency&rsquo;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&rsquo;s New York office since 2009. At Mizuho, he is helping to fill a gap created with the February exit of Amit Khurana &mdash; 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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;s mobile-device payment securitizations. The recruit&rsquo;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 &ldquo;careers&rdquo; 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&rsquo;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&rsquo;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 &mdash; 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&rsquo;s talk among asset-backed bond investors that Goldman Sachs is considering securitization as a funding source for the credit-card business it&rsquo;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&rsquo;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&rsquo;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 &ldquo;promote competition in the housing-finance market.&rdquo; 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&rsquo;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&rsquo;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 &ldquo;simple, transparent and standardized.&rdquo;The not-for-profit Prime Collateralised Securities got the go-ahead from U.K. Financial Conduct Authority last week, with Germany&rsquo;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&rsquo;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&rsquo;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&rsquo;s issuance slowdown hasn&rsquo;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 &mdash; 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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;t have the capacity for an anticipated uptick in business.At issue are the Trump Administration&rsquo;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&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;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&rsquo;s Direct PLUS education-loan program &mdash; 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 &mdash; a sales professional, a corporate-bond trader, a trading-support...



Sierra Team Continues to Shrink

Fri, 22 Mar 2019
With losses among the company&rsquo;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&rsquo;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&rsquo; 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&rsquo; 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 &mdash; a key indicator of borrower health &mdash; deteriorated slightly but remained at the equivalent of a &ldquo;B2&rdquo; rating, according to Moody&rsquo;s. Holdings of loans rated &ldquo;Caa1&rdquo; 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 &ldquo;Global Investors&rsquo; Conference on Securitisation in China,&rdquo; 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&rsquo;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 &mdash; thanks to a built-in exemption for deals whose collateral wasn&rsquo;t &ldquo;inappropriately formed.&rdquo; But...



SEC Action Could Stall Volkswagen

Fri, 22 Mar 2019
The SEC&rsquo;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 &mdash; 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 &amp; 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&rsquo;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&rsquo;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&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; guidelines. Now, the bank has hired market veteran Olivier D&rsquo;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 &ldquo;UltraFICO,&rdquo; the new reports would include a score based on a borrower&rsquo;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 &mdash; a push that began with his April 2018 arrival from Kirkland & Ellis. He takes over for Malcolm &ldquo;Mac&rdquo; 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&rsquo; 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&rsquo;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&rsquo; pending purchase of Lewis Ranieri&rsquo;s Selene Holdings has led to the departure of Selene&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;s destination has come to light. Dwyer, who will leave his post as head of Morningstar&rsquo;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&rsquo;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 &mdash; 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&rsquo;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&rsquo;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&rsquo;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 &mdash; 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 &mdash; 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&rsquo;s risk-retention rule wasn&rsquo;t enough to bring smaller collateralized loan obligation issuers back into the market.Leading up to the regulation&rsquo;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&rsquo;s &ldquo;qualified-mortgage&rdquo; 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&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; standards.The message is intended largely to counter suspicions that Western Asset Management&rsquo;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&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; standards, there&rsquo;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&rsquo;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&rsquo;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&rsquo;s growing concern among mortgage-securitization professionals that President Trump&rsquo;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&rsquo;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&rsquo;s &ldquo;SFIG Vegas 2019&rdquo; 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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;s Congressional election, former MUFG executive Zachary Emig has resurfaced in a business-development role at Moody&rsquo;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&rsquo;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 &mdash; 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&rsquo;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&rsquo;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 &mdash; 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 &mdash; 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&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; 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&rsquo;s &ldquo;SFIG Vegas 2019&rdquo; conference on Feb....



Bank Targets Non-QM Trades

Fri, 01 Mar 2019
Reliant Bank is positioning itself to buy home loans that don&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified mortgage&rdquo; 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&rsquo;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 &mdash; 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&rsquo;s headcount as it lands assignments from across continental Europe &mdash; 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&rsquo;t have technologically sophisticated collateral-management programs to automatically upload data to GDR&rsquo;s system.GDR&rsquo;s ePledge tool helps banks ensure that collateral isn&rsquo;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&rsquo;s capital-markets group in Newport Beach, Calif., this week as a senior vice president. Good&rsquo;s duties include selling the originator&rsquo;s accounts to securitization-funded conduit operators &mdash; focusing in part on credits that don&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; 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&rsquo;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&rsquo;s &ldquo;SFIG Vegas 2019&rdquo; conference landed at 8,050 &mdash; a record-breaking crowd that topped last year&rsquo;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&rsquo;s securitization-banking team in Charlotte. Cohen&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;s largest conference.The trade group already has fielded some 7,500 registrations for its &ldquo;SFIG Vegas&rdquo; 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&rsquo;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&rsquo;s inaugural bond deal would total $100 million to $200 million. While it&rsquo;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 &mdash; versus $525.9 million for all of 2018. Sources attributed the growth to a number of factors, including the broader financial market&rsquo;s late-year volatility and a slowdown in deal refinancings.&ldquo;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&rsquo; 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&rsquo;Neill & Partners, said the interest partly reflects concerns that the Financial Accounting Standards Board&rsquo;s updated treatment for &ldquo;current expected credit losses&rdquo; 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&rsquo;s political action committee finally is ready to begin putting money to work.Michael Bright, the trade group&rsquo;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.&ldquo;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&rsquo;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&rsquo; 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 &mdash;...



REGULATORY ROUNDUP

Fri, 22 Feb 2019
Mortgage Agencies &mdash; 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 &mdash; FHFAThe Federal Housing Finance Agency is sticking with a July 3 date to being issuing agency mortgage bonds via its Common Securitization Platform. That&rsquo;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 &mdash; 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 &ldquo;qualified-mortgage&rdquo; designation applies to any agency home loan, so long as the borrower&rsquo;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 &mdash; European RegulatorsThe sluggish implementation of the European Union&rsquo;s new securitization rules continues to weigh on the supply of fresh asset- and mortgage-backed bond deals. That&rsquo;s largely because various implementation procedures still aren&rsquo;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 &mdash; 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&rsquo;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 &mdash; 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&rsquo;s because Japanese banks play outsized roles as investors in the senior classes of those deals, and because &mdash; unlike many other securitized...



REGULATORY ROUNDUP

Fri, 22 Feb 2019
Loan Losses &mdash; 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 &ldquo;current expected credit losses.&rdquo; The...



REGULATORY ROUNDUP

Fri, 22 Feb 2019
Trade Reporting &mdash; 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 &mdash; on top of the aggregate trading data for mortgage bonds and CLOs it...



REGULATORY ROUNDUP

Fri, 22 Feb 2019
Volcker Rule &mdash; 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&rsquo;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 &mdash; Fed, SEC, TreasuryAttorneys continue to experiment with asset- and mortgage-backed bond structures that would circumvent the Dodd-Frank Act&rsquo;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 &mdash; 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 &mdash; 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 &mdash; 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&rsquo;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&rsquo;s corporate-trust unit is launching a mobile version of its Pivot tool.The app incorporates the technology&rsquo;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&rsquo;s &ldquo;ABS Vegas&rdquo; 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&rsquo;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&rsquo;s early-February additions of...



The Grapevine

Fri, 22 Feb 2019
Rick Zhang joined Fidelity Investments&rsquo; 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&rsquo;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 &mdash; 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&rsquo; collateral isn&rsquo;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&rsquo;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&rsquo; 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&rsquo;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&rsquo;s deals could be backed by cashflows attached to a range of software, hardware, data-storage and support services it offers to corporate clients &mdash; 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&rsquo;s new chief executive is beginning to spell out how he plans to raise the trade organization&rsquo;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&rsquo;s stance on a number of matters.Bright, who started Jan. 21, already is meeting with regulators and legislators. &ldquo;I...



Takeover Improves SunTrust Outlook

Fri, 15 Feb 2019
The growth of SunTrust&rsquo;s structured-product underwriting business is expected to accelerate as a result of the bank&rsquo;s acquisition by BB&T.The outlook in large part reflects a situation in which SunTrust&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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 &mdash; a key indicator of borrower health &mdash; deteriorated six points in December to 2820, according to Moody&rsquo;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&rsquo; 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 &ldquo;tiering&rdquo; 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 &mdash; 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&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified mortgage&rdquo; 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&rsquo;s analytical tools available to eMBS&rsquo; subscribers, effective via free trials in the coming weeks. The introductory period lasts one year for TheNumber&rsquo;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 &#8364;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&rsquo;s next move couldn&rsquo;t be learned. He had been an executive director in Mizuho&rsquo;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&rsquo;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&rsquo; 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&rsquo;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&rsquo;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 &ldquo;careers&rdquo; 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&rsquo;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&rsquo;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. &ldquo;We had a small window at the start of the year, but it closed so quickly,&rdquo; 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&rsquo;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&rsquo;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 &mdash; those with credit scores of 710-740 &mdash; 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% &mdash; a figure that approaches the record high of 10.42% from February 2017. Fitch said it&rsquo;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&rsquo;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&rsquo; head of fixed-income underwriting, sales and trading in the U.S. about a month ago. Zola&rsquo;s plans are unknown. He had joined Natixis&rsquo; 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&rsquo;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&rsquo;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&rsquo; 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&rsquo;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&rsquo;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 &mdash; 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 &#8364;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 &ldquo;Tino&rdquo; 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 &ldquo;careers&rdquo; 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&rsquo;s...



Morgan Lewis Installs Top CLO Attorney

Fri, 01 Feb 2019
Morgan Lewis has picked off the highest-ranking member of Cleary Gottlieb&rsquo;s securitization practice.Paul St. Lawrence, a collateralized loan obligation specialist, arrives in Morgan&rsquo;s Washington office today as a partner. Also making the move are three CLO-focused associates whose identities couldn&rsquo;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&rsquo;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&rsquo;s 80 member companies will meet on Feb. 24 at the Aria Resort & Casino in Las Vegas &mdash; sharing a site with SFIG&rsquo;s &ldquo;SFIG Vegas 2019&rdquo; 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&rsquo;s &ldquo;SFIG Vegas 2019&rdquo; 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&rsquo;t taken place &mdash; 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&rsquo;t meet the Consumer Financial Protection Bureau&rsquo;s &ldquo;qualified-mortgage&rdquo; 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 &mdash; 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&rsquo; commercial-paper conduit business. Dierdorff, who departed the bank&rsquo;s New York office last week, had been on board since 2006. She also has worked at WestLB, GE Capital, Moody&rsquo;s, CapMac and Chase Manhattan. BNP Paribas&rsquo; 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&rsquo;s former duties have been absorbed by vice president Steve LaPlante &mdash; 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&rsquo;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&rsquo;s New York office in 2016 after stops at RBC, Merrill Lynch and Bank of America. Baird&rsquo;s structured-product sales team has been adding personnel in recent years.



The Grapevine

Fri, 01 Feb 2019
Geoffrey Horton left Wells Fargo&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;s strongest returns in 2018, proving largely immune from late-year losses among strategies focused on stocks and corporate debt.Many of the sector&rsquo;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&rsquo; 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&rsquo;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 &mdash; 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 &ldquo;hung&rdquo; 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&rsquo;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 &ldquo;deficiency,&rdquo; 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&rsquo;s tokens have terms of only a few months and currently aren&rsquo;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&rsquo;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 &mdash; from bank officials, lawyers, accountants, asset-valuation specialists and others &mdash; will come during a public hearing at FASB&rsquo;s Norwalk, Conn., headquarters on Jan. 28. Citing confusion over the updated treatment for &ldquo;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&rsquo;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&rsquo;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&rsquo;s structured-product investment team in Davidson, N.C., in December as a senior analyst. Casadidio had been working in Wells Fargo&rsquo;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&rsquo;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 &ldquo;careers&rdquo; 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&rsquo;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 &ldquo;careers&rdquo; 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&rsquo;s Wilmington, Del., headquarters. Tonderys&rsquo; next move couldn&rsquo;t be learned. He had arrived at Marlette in 2016 after stops at Prosper Marketplace, Barclays and BankOne. Sources said Marlette doesn&rsquo;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 &ldquo;careers&rdquo; at commonbond.co.



Repo Desks Chase Private-Label Contracts

Fri, 18 Jan 2019
With agency-mortgage volume falling, banks&rsquo; repurchase desks are scrambling for fresh exposures to non-agency products.As they seek to drum up that business, the institutions &mdash; including Credit Suisse, Deutsche Bank, Goldman Sachs and J.P. Morgan &mdash; are cutting the fees they charge to clients. The efforts cover contracts tied to both bonds and whole loans.&ldquo;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 &ldquo;portfolio risk transfer&rdquo; 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&rsquo;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&rsquo;Connor. The management changes took effect this month.&ldquo;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 &mdash; with 13 deals totaling $8.8 billion having priced this year. That&rsquo;s comparable to the market&rsquo;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&rsquo;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&rsquo;s plan to start an opportunistic credit-product fund didn&rsquo;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&rsquo;s investments would...



Lobbying Tops SFIG's Agenda

Fri, 18 Jan 2019
The Structured Finance Industry Group&rsquo;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 &mdash; 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&rsquo;s, median holdings of loans rated &ldquo;Caa1&rdquo; 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&rsquo;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&rsquo;s ABS Database.S&P has held the number-one ranking since 2012. Moody&rsquo;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&rsquo;s as the U.S. collateralized loan obligation market&rsquo;s busiest rating agency in 2018.The switch reflected factors including a staff buildup that Fitch began in 2016 and ongoing criticism of Moody&rsquo;s ability to handle surges of deal volume. All told, Fitch&rsquo;s ratings appeared on $99.9 billion of fresh CLOs last year for a 75% market share, according to Asset-Backed Alert&rsquo;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&rsquo;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&rsquo;s, S&P, Fitch, DBRS and Kroll.John Hutchinson, who oversees Infinity&rsquo;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&rsquo;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&rsquo;s &ldquo;qualified-mortgage&rdquo; 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&rsquo;s &ldquo;SFIG Vegas 2019&rdquo; gathering. The appearance will take place Feb. 26 in the form of a &ldquo;fireside chat&rdquo; with Reed Auerbach, who heads Morgan Lewis&rsquo; securitization practice. SFIG originally commissioned Yellen to speak at an October conference in Washington that it wound up canceling &mdash; 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&rsquo;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&rsquo;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 &ldquo;careers&rdquo; 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 &mdash; 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&rsquo;s...



JP Morgan Reclaims Underwriting Crown

Fri, 11 Jan 2019
J.P. Morgan was the world&rsquo;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 &mdash; 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&rsquo;t yet decided whether to securitize, the talk is that a debut offering could come by midyear.It&rsquo;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&rsquo;s Tier 3 category encompasses loans to the least-creditworthy borrowers &mdash; 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&rsquo;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 &mdash; 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&rsquo;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&rsquo;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 &ldquo;careers&rdquo; 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 &ldquo;careers&rdquo; 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&rsquo;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&rsquo;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&rsquo;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 &mdash; 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&rsquo;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 &ldquo;deep-subprime&rdquo; 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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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 &ldquo;careers&rdquo; 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&rsquo;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 &mdash; 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&rsquo;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&rsquo;s in part...



STS Labels Suddenly Imminent in Europe

Fri, 14 Dec 2018
Designations for &ldquo;simple, transparent and standardized&rdquo; 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&rsquo;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&rsquo;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&rsquo;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&rsquo; 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&rsquo;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&rsquo;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 &mdash; 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&rsquo;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&rsquo;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&rsquo;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 &ldquo;Tracy&rdquo; Zhou arrived in the bank&rsquo;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&rsquo;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&rsquo;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 &ldquo;careers&rdquo; 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&rsquo;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 &ldquo;careers&rdquo; 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&rsquo;s new securitization rules still aren&rsquo;t ready.In conceding on Nov. 30 that they wouldn&rsquo;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 &mdash;...



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&rsquo; 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 &ldquo;print-and-sprint&rdquo; format in which the issuers would use proceeds from the bond sales to finance collateral purchases &mdash; 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&rsquo;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&rsquo;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 &mdash; to borrowers with credit scores of 710-740 &mdash; rose 63 bp to an annualized 5.53% in November. That&rsquo;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&rsquo;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&rsquo;s securitization infrastructure would...



The Grapevine

Fri, 07 Dec 2018
Mortgage-bond origination professional James Harrington has turned up at Cantor Fitzgerald&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;s majority owner, CIVC Partners.Additional requests...



Japan Regulator Takes Aim at Investor Risk

Fri, 30 Nov 2018
Japan&rsquo;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&rsquo;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 &mdash; 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&rsquo; employees won&rsquo;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&rsquo;s completion on Nov. 8, however, many of Hunt Financial&rsquo;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 &mdash; 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&rsquo;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&rsquo;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&rsquo;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&rsquo;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&rsquo;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 &mdash; 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&rsquo;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 &ldquo;careers&rdquo; 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&rsquo;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 &mdash; 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&rsquo;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 &ldquo;Market&rdquo; section under &ldquo;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 &ldquo;Market&rdquo; section under &ldquo;CLO Issuers.&rdquo;



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 &ldquo;Market&rdquo; section under &ldquo;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 &ldquo;Market&rdquo; 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&rsquo;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&rsquo;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 &ldquo;Market&rdquo; 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 &ldquo;Market&rdquo; section under &ldquo;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&rsquo;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&rsquo;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 &ldquo;Market&rdquo; section under &ldquo;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 &ldquo;Market&rdquo; section under &ldquo;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 &ldquo;Market&rdquo; section under &ldquo;CLO Issuers.&rdquo;



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&rsquo;t maintain an issuing program in Europe or invest heavily in other firms&rsquo; 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&rsquo;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 &ldquo;Market&rdquo; section under &ldquo;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&rsquo;s CLO-management portfolio has swelled to $23.6 billion. European arm augments dealflow. The firm&rsquo;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&rsquo;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 &ldquo;Market&rdquo; section under &ldquo;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&rsquo;s first-loss Class-C piece to fall to virtually zero. And with the tranche&rsquo;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&rsquo; 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&rsquo;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&rsquo;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 &mdash; 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&rsquo;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 &ldquo;CLO Summit,&rdquo; which takes place Nov. 28-30 at the Monarch Beach Resort in Dana Point, Calif. That would easily top last year&rsquo;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&rsquo;s &ldquo;qualified-mortgage&rdquo; 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&rsquo; 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&rsquo;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 &mdash; 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&rsquo;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&rsquo;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&rsquo;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 &ldquo;B2&rdquo; 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&rsquo;s asset-backed bond origination team. Until September, Baker led Apollo&rsquo;s investments tied to risk-shedding...



The Grapevine

Fri, 16 Nov 2018
Hunt Financial Securities&rsquo; merger with Brean Capital has claimed its first victim. Salesman Kenneth Clisham exited Hunt&rsquo;s Rye Brook, N.Y., office on Nov. 8 after learning that he wouldn&rsquo;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&rsquo;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&rsquo;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.&ldquo;We&rsquo;ve talked to several lenders who aren&rsquo;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 &mdash; 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 &mdash; less than $5 million shy of the full-year record for dollar volume set in 2005. J.D. Byrider&rsquo;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 &mdash; 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&rsquo;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&rsquo;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&rsquo;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.