Article List

UN Pension Weighs Investment Onslaught

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



Hewlett Packard Eyes Lease-Backed Bonds

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



Wider Spreads Curtail CLO Refinancings

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



SFIG Initiates Lobbying Makeover

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



Takeover Improves SunTrust Outlook

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



CLO-Equity Vehicle Shopped

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



S&P Staffing Up in China

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



Santander Maps Chrysler Lease Deal

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



Semper Aims for More Growth

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



CLO Weakness Hits Europe Harder

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



China Fund Promises Lofty Gains

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



Clean-Energy Bill Gains Traction

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



"Tiering' Grows as Spreads Tighten

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



Redwood Preps Hybrid MBS Deal

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



Data Firms Link Services

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



Citi Maps Return of Jumbo-Mortgage Deals

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



Orrick Adds CLO Team From Arnold & Porter

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



Risk-Transfer Market Balks at Refinancings

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



CLOs Flow Despite Shaky Spreads

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



Investors Sigh as Volatility Wanes

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



Launch Set for Fix-and-Flip Fund

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



PenFed Reconsiders Funding Strategy

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



Strong Borrowers Show Weakness

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



Investors Gaining Access to Carvana

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



Payments Lag for Subprime Autos

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



Sluggish Start Continues in Europe

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



Buildup Pushes On at Wilmington

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



Wells Seeks Funding for Auto-Loan Book

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



Morgan Lewis Installs Top CLO Attorney

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



Rebound Forecast in Card-Bond Issuance

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



Jennings Lands at New Employer

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



Risk-Retention Loans Catching On

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



IMN Group to Meet at SFIG Event

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



Panelists Bearish on Blockchain

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



Computershare Adding Appraisers

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



Biz2Credit Offering Ready to Go

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



Credit-Card Performance Improves

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



Regulations Shut Down European Pipeline

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



Structured-Product Funds Show Well for 2018

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



REITs Shy Away From Risk-Transfer Bets

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



Banks Discuss Mega-Mortgage Issues

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



Bankruptcy Interrupts PG&E Plan

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



Broker Targeting Structured Products

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



CLO Issuers Pursue Warehouse Play

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



SoFi Ends Issuance Respite

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



Outlook Worsens for Honor Investors

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



Startup Commences Token Sales

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



Pressure On for CECL Delay

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



Funding Denied for Tesla Leases

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



The Grapevine

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



Repo Desks Chase Private-Label Contracts

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



SFIG Campaigning for Portfolio-Risk Deals

Fri, 18 Jan 2019
The Structured Finance Industry Group is intensifying a push for the Comptroller of the Currency to allow banks to gain capital relief via “portfolio risk transfer” transactions.The effort comes as part of a broader plan by the trade group to task newly hired chief executive Michael Bright with gaining influence among policymakers, with an emphasis on reductions in capital charges. Should the organization succeed, the expectation is...



New Team Leads Mayer's Securitization Unit

Fri, 18 Jan 2019
Jon Van Gorp has stepped down as co-head of Mayer Brown’s securitization practice.Van Gorp, who had led the group since 2012 alongside Stuart Litwin, remains a partner at Mayer and a member of the management committee overseeing the entire firm. Litwin, who is based in Chicago, will continue overseeing the team along with newly named co-heads Julie Gillespie and David O’Connor. The management changes took effect this month.“This...



Issuers Take Shutdown in Stride

Fri, 18 Jan 2019
The business of structuring and distributing asset- and mortgage-backed bonds is continuing with little thought to the government shutdown.Although the SEC has been running with a skeleton crew since the shutdown began on Dec. 22, new-issue volume has been healthy so far — with 13 deals totaling $8.8 billion having priced this year. That’s comparable to the market’s output during the same period last year.Another 10 issuers have...



CLO Pros Hopeful for Relief in Japan

Fri, 18 Jan 2019
Japanese banks appear likely to persuade regulators to ease up on a newly proposed risk-retention rule for structured products.The proposal, published Dec. 28 by Japan’s Financial Services Agency, poses an enormous threat to the collateralized loan obligation market, where Japanese banks have been among the largest and most reliable buyers of senior securities. As written, the rule change would penalize banks for investing in deals when the...



Graticule Drops Credit-Product Unit

Fri, 18 Jan 2019
Graticule Asset Management Asia’s plan to start an opportunistic credit-product fund didn’t pan out.The Singapore global-macro firm is unwinding a San Francisco unit that had been aiming for the fourth quarter of 2018 to launch the vehicle. A source said that in a matter of days, the initiative went from the roadshow-planning stage to being scrapped, according to sister publication Hedge Fund Alert.The fund’s investments would...



Lobbying Tops SFIG's Agenda

Fri, 18 Jan 2019
The Structured Finance Industry Group’s selection of Washington insider Michael Bright as chief executive reflected a desire by the trade group to remake itself as a more powerful lobbying entity.Bright, a mortgage-finance specialist who most recently served as interim head of Ginnie Mae, starts Jan. 20. From day one, his focus will be on gaining a voice in Washington — starting with a push to convince the Comptroller of the Currency...



Downgrades Reflected in CLO Pools

Fri, 18 Jan 2019
Leveraged-loan downgrades caused an increase in the percentage of low-quality assets in U.S. collateralized loan obligation pools in November.According to Moody’s, median holdings of loans rated “Caa1” or worse rose by 10 bp to 3.60% for the month. That figure has been rising since 2015 as issuers have sought higher-yielding loans at a time when many stronger borrowers have refinanced at lower interest rates. This time, the...



Trustee Crown Stays With US Bank

Fri, 18 Jan 2019
U.S. Bank retained its standing as the structured-finance industry’s most active trustee in 2018, as its key rivals shifted positions.The bank again led its peers in the combined U.S. asset- and mortgage-backed bond sector, this time working on $85.7 billion of new offerings for a 24.9% market share. It also remained the number-one collateralized loan obligation trustee worldwide, appearing on $93.6 billion of deals for a 52.2% claim,...



S&P Unchallenged for Top Standing

Fri, 18 Jan 2019
S&P again rated more U.S. asset- and mortgage-backed bonds than any of its rivals in 2018.The agency graded $189.8 billion of transactions for a 55.1% market share. That amounted to a 16% jump from a year earlier, outpacing a 15% increase in overall supply, according to Asset-Backed Alert’s ABS Database.S&P has held the number-one ranking since 2012. Moody’s, meanwhile, moved up to second place from third, switching spots with Fitch....



Fitch Nabs CLO-Rating Crown

Fri, 18 Jan 2019
Fitch surpassed Moody’s as the U.S. collateralized loan obligation market’s busiest rating agency in 2018.The switch reflected factors including a staff buildup that Fitch began in 2016 and ongoing criticism of Moody’s ability to handle surges of deal volume. All told, Fitch’s ratings appeared on $99.9 billion of fresh CLOs last year for a 75% market share, according to Asset-Backed Alert’s ABS Database.That marked a...



Sidley Austin Grabs First Place in Tally of Underwriter Law Firms

Fri, 18 Jan 2019
A one-third surge in deal count allowed Sidley Austin to overtake Morgan Lewis in the league table for most active underwriter counsel in 2018.Sidley last year fielded 101 assignments from bookrunners of U.S. asset- and mortgage-backed securities, up from 74 in 2017, according to Asset-Backed Alert’s ABS Database. That was far ahead of number-two Morgan Lewis, whose 2018 deal count totaled 79, compared to 76 the year before. Hunton Andrews,...



Asset Tracker on Growth Trajectory

Fri, 18 Jan 2019
Data company T-Rex Group is planning a staff expansion.The New York company is seeking a head of data management. It also is looking for two staffers who would help oversee data collection and analysis. The plan is to fill the positions by March 31.The expansion follows an agreement this month to handle a greater workload for Macquarie Capital and the December signing of a contract with an undisclosed insurer.Via its Performance Data Service,...



Morningstar Gives Nod to Infinity IPS

Fri, 18 Jan 2019
Morningstar has added Infinity IPS to the list of due-diligence firms whose findings it will accept when rating mortgage securitizations.The agency finished vetting the Infinity in the past month or so. The Rockville, Md., firm already was approved to perform reviews for deals rated by Moody’s, S&P, Fitch, DBRS and Kroll.John Hutchinson, who oversees Infinity’s due-diligence business, worked with Morningstar. Hutchison said due...



The Grapevine

Fri, 18 Jan 2019
Mario Verna resigned as head of collateralized loan obligation origination at Guggenheim this week to join Robert W. Baird & Co., where he will start in New York after waiting out a gardening leave. Verna worked at Guggenheim since 2014, following stops at Krypton Advisors, Deutsche Bank, J.P. Morgan and Fitch. His exit from his most recent role followed Guggenheim’s October hiring of Adrian Radulescu to help lead its CLO business, which...



The Grapevine

Fri, 18 Jan 2019
Mortgage-conduit specialist Michael Wold joined the former New Penn Financial this month as a Los Angeles-based vice president on a team that originates loans that fall outside the Consumer Financial Protection Bureau’s “qualified-mortgage” parameters. Wold had been part of the correspondent-lending group at FirstBank since 2016, following stops at Redwood Trust, Morgan Stanley, First Nationwide Mortgage and California Federal...



The Grapevine

Fri, 18 Jan 2019
Former Federal Reserve chief Janet Yellen will speak at the Structured Finance Industry Group’s “SFIG Vegas 2019” gathering. The appearance will take place Feb. 26 in the form of a “fireside chat” with Reed Auerbach, who heads Morgan Lewis’ securitization practice. SFIG originally commissioned Yellen to speak at an October conference in Washington that it wound up canceling — paying an appearance fee that...



The Grapevine

Fri, 18 Jan 2019
Former KeyBank trader Kevin Gordon has landed a job as a portfolio manager at startup hedge fund operator Alagna Advisors. Word has it that Gordon is establishing a Connecticut outpost for the firm, where he will deal broadly in structured products. Gordon supervised asset-backed bond trading at Key from November 2017 to June 2018. He previously spent time at Cowen & Co. and Credit Suisse. Alagna, of Sea Girt, N.J., employs a special-situations...



The Grapevine

Fri, 18 Jan 2019
John Krementowski joined Fitch’s asset-backed bond rating team in New York this week as a director. Krementowski, who reports to senior director Hylton Heard, had been a senior structured-finance investment analyst at Hartford Investment since 2007. He also has worked at ING and Aetna.



The Grapevine

Fri, 18 Jan 2019
Mortgage-bond trader Steve Palmer left KeyBank’s New York office last week to join the Stamford, Conn., office of BOK Financial, the broker-dealer arm of Bank of Oklahoma. Palmer started at Key in 2016. His resume, which dates back to 1994, also includes stops at Nathan Hale Capital, BNY Mellon, Southwest Securities, J.P. Morgan and FTN Financial.



The Grapevine

Fri, 18 Jan 2019
Buy-side shop Loomis, Sayles & Co. has added a collateralized loan obligation trader to its Boston office. Michael Herald arrived this month from GMO, where he worked since 2014. Herald also has spent time at CRT Capital, RBS and Travelers.



The Grapevine

Fri, 18 Jan 2019
Well Fargo has an opening for a mortgage-bond structuring and analytics specialist in New York. The bank is focusing on analyst-level recruits with 1-3 years of experience. To apply, click on “careers” at wellsfargo.com and search for job number 5456087.



The Grapevine

Fri, 18 Jan 2019
City National Bank is seeking a relationship manager. The New York-based recruit would work on an effort in which the RBC unit offers funding to fund operators that in turn finance specialty lenders, including those that securitize their assets. Candidates can email in-house recruiter Bill Donnelly at bill.donnelly@cnb.com.



Forecasters Calling for Diminished Dealflow

Fri, 11 Jan 2019
Securitization volume appears to be headed for a down year.On average, a panel of 12 industry participants surveyed by Asset-Backed Alert is predicting that $815 billion of fresh asset-backed securities, residential mortgage bonds, commercial mortgage securities and collateralized loan obligations will price worldwide this year. That would mark a decline of 4% from the 2018 tally of $850 billion.Worldwide securitization volume was up 9% in 2018,...



Buy-Side Team Breaking With Credit Suisse

Fri, 11 Jan 2019
The managers of a $2.5 billion hedge fund are spinning off from Credit Suisse Asset Management.The group, led by Albert Sohn, is retaining control of the $2.5 billion SPF Securitized Products Fund — doing business through a newly formed firm called SPF Investment. The vehicle is expected to change hands during the first quarter.In exchange, Credit Suisse Asset Management will receive payments equal to no more than 25% of SPF’s...



JP Morgan Reclaims Underwriting Crown

Fri, 11 Jan 2019
J.P. Morgan was the world’s most active underwriter of securitized products in 2018.After losing its usual market-leader status to Citigroup in 2017, the bank surged back into first place in the early months of last year. It finished with bookrunning credit on $94.9 billion of asset-backed bond offerings, residential mortgage securitizations, commercial mortgage deals and collateralized loan obligations — good for an 11.2% market...



Manufactured-Home Deal in Pipeline

Fri, 11 Jan 2019
Cascade Financial is considering a rare securitization of manufactured-housing loans.The Gilbert, Ariz., company already has accumulated more than $100 million of the accounts in a warehouse line from MassMutual unit Barings, one source said. While it hasn’t yet decided whether to securitize, the talk is that a debut offering could come by midyear.It’s unclear if Cascade has spoken to underwriters and other service providers. Rather,...



"Print-and-Sprint' Window Closing

Fri, 11 Jan 2019
Rising asset prices are threatening to halt production of so-called print-and-sprint collateralized loan obligations.The deals began flowing in late November, as a selloff in the leveraged-loan market enabled issuers to snap up collateral at discount prices. But values in that sector have been recovering in recent weeks.The upshot: Industry participants believe only a small window remains to conduct print-and-sprint deals, in which issuers use...



Smaller CLO Dealers Face Tough Year

Fri, 11 Jan 2019
Banks that have relied heavily on refinancings for collateralized loan obligation underwriting work, as opposed to new offerings, could see their businesses shrink in 2019.While refinancings have been a boon for CLO bookrunners generally, they especially have benefitted institutions including Guggenheim, Mizuho, MUFG and RBC that struggle to compete with the leading underwriters of new CLOs. In 2018, worldwide CLO refinancings totaled $172.6...



MountainView Offers Mortgage Pool

Fri, 11 Jan 2019
MountainView Financial is auctioning a portfolio of jumbo mortgages.The $270 million pool is made up of seasoned adjustable-rate accounts with loan-to-value ratios of 70% or less. The average borrower credit score is 770.A buyer could securitize some or all of the loans. The offering is expected to draw interest from large banks including Bank of America, Citigroup, J.P. Morgan and Wells Fargo. Bids are due Jan. 17.MountainView, a Denver firm...



Brown Brothers Forms Fund

Fri, 11 Jan 2019
Brown Brothers Harriman has launched a hedge fund with a focus on structured products.The Cayman Islands-domiciled BBH-NG Structured Fixed Income Fund began trading this month with about $7 million, according to sister publication Hedge Fund Alert.While Brown Brothers already counts investments in asset-backed securities and commercial mortgage bonds among its core fixed-income strategies, those holdings mainly reside in mutual funds and separate...



Late Payments Hit Consumer Loans

Fri, 11 Jan 2019
Delinquencies among pools of online personal loans continued to creep higher in December.According to an index maintained by Kroll, delinquencies among so-called Tier 3 borrowers rose 22 bp to 4.56%. Losses also increased, by 91 bp to an annualized 21.84%. Kroll’s Tier 3 category encompasses loans to the least-creditworthy borrowers — those with scores of 630-660 originated by Avant and Lending Club. Meanwhile, delinquencies among...



Retiring Kravitt Tops Forecasters

Fri, 11 Jan 2019
Mayer Brown attorney Jason Kravitt was the securitization industry’s most accurate forecaster of issuance volume in 2018.A year ago, a panel of 11 market participants surveyed by Asset-Backed Alert forecast, on average, that $811 billion of fresh asset-backed bonds, residential mortgage bonds, commercial mortgage securities and collateralized loan and bond obligations would price over the following 12 months. The actual total was $850...



Losses Ease for Subprime Autos

Fri, 11 Jan 2019
Performance indicators for securitized pools of subprime auto loans saw some improvement during the month ended Dec. 15.According to an index maintained by Fitch, losses within those portfolios fell 5 bp during the period to an annualized 9.66%. While that measure still is high by historical standards, the expectation had been that it would rise as borrowers skipped payments in favor of holiday spending. To that end, subprime-loan delinquencies...



The Grapevine

Fri, 11 Jan 2019
Robert Hershy told his colleagues at Morgan Stanley this week that he will retire at the end of the month. The New York-based Hershy served two stints at the bank, the first from 1984 to 2008 — when he lost his job as head of structured-product sales. He then returned in 2009 and later moved into his most recent post as head of warehouse lending.



The Grapevine

Fri, 11 Jan 2019
Former Hunt Financial Securities sales specialist Kenneth Clisham started in KeyBank’s New York office on Jan. 10. Clisham, who worked at Hunt since 2017, was among a number of staffers who exited the firm amid the firm’s November merger with Brean Capital. He previously worked at Cantor Fitzgerald, Piper Jaffray, Vcross Capital, A.K. Capital, J.P. Morgan, Greenwich Capital and Merrill Lynch. His arrival at Key comes as part of a...



The Grapevine

Fri, 11 Jan 2019
S&P is seeking an analyst to help rate securitizations of transportation-related assets, including aircraft, shipping-container and railcar leases. The director-level recruit would be stationed in New York. S&P is focusing on candidates with at least seven years of experience. To apply, click on “careers” at standardandpoors.com and search for job number...



The Grapevine

Fri, 11 Jan 2019
Former Eaglewood Capital chief investment officer Steve Lee has taken a job heading a San Francisco office for Finitive, a firm that arranges funding across a range of consumer and commercial receivables. Lee had been on the sidelines since his 2017 exit from Eaglewood, where he helped carry out one of the first-ever securitizations of marketplace-originated personal loans. Earlier, he worked at Cambridge Place Investment, UBS, Fidelity...



The Grapevine

Fri, 11 Jan 2019
OneMain Financial has an opening for an analyst on its capital markets team. The recruit would be stationed in a new headquarters the company opened in New York at the beginning of this year, working on both its personal-loan securitizations and corporate-debt offerings. Since 2014, OneMain has sold $9.3 billion of personal-loan bonds and $1.2 billion of subprime auto loans. Candidates can email resumes to capital-markets head Ravi Mittal at...



The Grapevine

Fri, 11 Jan 2019
Guggenheim is looking for a collateralized loan obligation specialist in New York. The recruit would hold the title of structuring analyst. Guggenheim is focusing on candidates with 2-4 years of experience. For more information, click on “careers” at guggenheimpartners.com and search for job number 11246.



The Grapevine

Fri, 11 Jan 2019
Keri Findley has landed at San Francisco venture capital firm General Catalyst. Findley had been working as a consultant to various online lenders in California since 2017, when she left a New York post overseeing a portfolio of distressed structured products at Third Point Management. She also has worked at D.B. Zwirn & Co.



The Grapevine

Fri, 11 Jan 2019
T. Rowe Price is seeking an associate analyst to cover investments in collateralized loan obligations in Baltimore. The recruit would build deal-modeling systems and handle transaction surveillance, along with managing data on issuers and the performance of their offerings. He or she also would collaborate with the firm’s high-yield debt researchers. Candidates can email resumes to in-house recruiter Karen Robinson at...



Freddie Lures Small Banks Into RPL Market

Fri, 21 Dec 2018
Community banks are starting to show an interest in reperforming-mortgage bonds, but only from Freddie Mac.As many as 15 of the institutions looked at the senior portions of a $1.3 billion transaction that priced on Nov. 15 under the Freddie Mac Seasoned Loans Structured Transaction Trust label. Among them were American Bank, City National Bank and Dollar Bank.While it’s unclear if any wound up as buyers, their presence was significant...



LoanDepot Exiting Personal Loan Business

Fri, 21 Dec 2018
Mortgage specialist LoanDepot has pulled the plug on its personal-loan operation.The move, which ends an accompanying asset-backed bond initiative, apparently came as a confluence of factors prompted founder Anthony Hsieh to lose patience with the program.Most recently, losses among LoanDepot’s accounts began rising in November. That could be due in part to a broader trend in which holiday spending often causes borrowers to miss late-year...



Aircraft Lessor Developing Issuance Program

Fri, 21 Dec 2018
Airborne Capital plans to tap the asset-backed bond market to fund a joint venture that leases jets to airlines.The Dublin firm teamed up in September with L1 Treasury, a Luxembourg asset manager, to form AltitudeOne Aviation. The partners capitalized the joint venture with $250 million of equity, and are negotiating with banks to secure several warehouse lines.Now comes word that Airborne, which serves as the investment manager for AltitudeOne,...



Wells Alum to Lead BMO Project

Fri, 21 Dec 2018
BMO Capital has zeroed in on a longtime Wells Fargo executive to lead it into the U.S. mortgage-finance business.Michael Pryluck resigned from Wells on Dec. 18 and will start his new job as a New York-based managing director at BMO after waiting out a gardening leave.BMO began seeking candidates for the position in October, signaling that it was interested in offering warehouse financing to a swath of lenders — including those that...



Santander Keeps Auto Deals Flowing

Fri, 21 Dec 2018
Santander Consumer USA is planning two securitizations for January.One of the deals would come via the Dallas lender’s Santander Drive Auto Receivables Trust, which finances auto loans on the upper end of the subprime spectrum. The other would take place under the “deep-subprime” Drive Auto Receivables Trust label.Both are expected to total more than $1 billion.Word of the offerings follows a record year in the market for...



BofA Reconsiders Auto-Loan Holdout

Fri, 21 Dec 2018
Rumors are swirling again that Bank of America might restart its auto-loan securitization program.The talk stems from recent discussions in which BofA has sought to gauge investor demand for such offerings. Should the bank move forward, a deal could surface by mid-2019.The transactions and any that follow would be backed by prime-quality loans.BofA last securitized its own auto loans in 2012, and since then has been relying on deposits and other...



Commercial PACE Pipeline Filling

Fri, 21 Dec 2018
An increase in securitizations of commercial Property Assessed Clean Energy loans is expected to accompany widespread expansion efforts among originators of those accounts.CleanFund Commercial PACE Capital, Greenworks Lending and Petros PACE Finance are among past issuers positioned to sell more asset-backed bonds in 2019. Meanwhile, Twain Financial is seen as likely to join Redwood Trust in planning its first offering in the sector.The...



Fed Action Brings Promise for CLOs

Fri, 21 Dec 2018
Collateralized loan obligation professionals are hoping the Federal Reserve’s Dec. 19 interest-rate increase will help leveraged-loan prices stop falling.Average leveraged-loan values hovered around 98 cents from March 2017 to this October, when broad financial-market volatility caused them to begin sinking. The deterioration then picked up when the Fed indicated in November that it might move less aggressively in raising rates.That’s...



Brokerage Expanding MBS Group

Fri, 21 Dec 2018
Hilltop Securities is building up its mortgage-bond trading operation.The Dallas firm plans to hire a number of traders and sales professionals in the next few months, expanding an existing team of mortgage-bond specialists. For the moment, the operation is focused on the agency market. But it could begin dealing in private-label securities as issuance picks up.Spearheading the expansion is Chris Belhumeur, who joined Hilltop in March. He...



Israeli Shop Pooling Personal Loans

Fri, 21 Dec 2018
A money manager that has been buying unsecured personal loans from online lenders is working on its first securitization.Sources said Pagaya Investments plans to bundle about $120 million of loans it purchased from Lending Club, with a single investor lined up to buy all of the bonds. The unrated transaction is expected to price before yearend, with Cantor Fitzgerald running the books.Pagaya, headquartered in Tel Aviv, touts its ability to use...



Loan Quality Sinks for Aging CLOs

Fri, 21 Dec 2018
Asset quality among U.S. collateralized loan obligations broadly worsened in October, particularly for deals whose investment periods are over.The erosion occurred across transactions completed from 2014 to 2017, with each vintage experiencing a deterioration in its weighted average rating factor, according to Moody’s. But the 2013 class saw an improved weighted average rating factor, a key indicator of borrower health.In the 2013 and 2014...



Rated Master, Primary and Special Mortgage Servicers

Fri, 21 Dec 2018
The listing below shows the ratings of U.S. home-loan servicers evaluated by Moody’s, S&P, Fitch, DBRS and Kroll.Master servicers oversee primary servicers and, if necessary, step in as primary servicers if the original ones fail to fulfill their responsibilities. Primary servicers handle payment collections and loan reporting. Special servicers take charge of nonperforming loans by collecting payments, liquidating repossessed assets and...



Personal-Loan Fund Enters Pipeline

Fri, 21 Dec 2018
AlphaCentric Advisors is setting up a fund that would purchase online personal loans and bonds backed by those receivables.The vehicle is expected to launch during the second quarter of 2019. It would seek exposures to loans whose underlying borrowers are at the cusp of prime quality or better.While the fund would add to demand for asset-backed bond deals, personal-loan purchases by such entities has reduced the volume of such assets available to...



Sentencing Delayed for MBS Traders

Fri, 21 Dec 2018
Federal prosecutors once again have postponed sentencing for former RBS traders Matthew Katke and Adam Siegel, who each pleaded guilty in 2015 to one count of securities fraud for misleading investors about mortgage-bond prices.As they originally did in July, U.S. Justice Department officals petitioned the court to delay Katke’s sentencing because he still may have to testify in the retrial of former Nomura traders Michael Gramins and Ross...



The Grapevine

Fri, 21 Dec 2018
The final member of Imperial Capital’s structured-product brokerage team has parted ways with the firm. Trader Darius Saib exited the New York operation in October, and is looking for a new job. He had arrived in 2013 from R.W. Pressprich, and before that was at UBS, StoneCastle Partners and Fitch. Imperial began unwinding its structured-product team with the May departures of head trader Keith Grimaldi and several associates. Saib,...



The Grapevine

Fri, 21 Dec 2018
Collateralized loan obligation trader David Torres has left Crescent Capital’s Los Angeles office to join Prime Advisors, a Redmond, Wash., firm that advises insurers on investment-grade bond exposures. Torres had arrived at Crescent in 2013 from Payden & Rygel. Taking his place at Crescent is James Guido, a buy-side CLO analyst who joined the firm in January from Marv Capital. In addition to buying CLOs, Crescent maintains an issuing...



The Grapevine

Fri, 21 Dec 2018
Nomura is seeking an associate to evaluate risk models tied to its work as an asset- and mortgage-backed bond underwriter. The recruit would be stationed in New York. Nomura is focusing on candidates with 1-3 years of experience.



The Grapevine

Fri, 21 Dec 2018
Rudy Orman signed on in November as head of correspondent lending and new-product development at Reliant Bank, a role in which he focuses on the Brentwood, Tenn., institution’s purchases of newly originated mortgages. Orman, a marketing veteran, most recently worked from 2017 to this October at Promontory Fulfillment. He previously served at Carrington Mortgage, American Capital Mortgage, Marathon Asset Management, Goldman Sachs,...



The Grapevine

Fri, 21 Dec 2018
Capital-markets head Brian Bernard officially left Hunt Financial Securities on Dec. 14. Bernard was among a number of employees who either declined to move or weren’t offered new positions when parent Hunt Cos. purchased a stake in Brean Capital on Nov. 9 and began folding Hunt Financial into the operation. The former Resource America executive had arrived in 2017 with the task of building a now-disbanded underwriting unit that focused on...



The Grapevine

Fri, 21 Dec 2018
Mortgage-trading consultant Tomahawk Capital has added a whole-loan specialist to its staff. Jeff Drott, who joined the Nashville firm on Dec. 14 as a managing partner, had been in a mortgage-trading role at Mountainview Capital from 2010 to this October. He also has worked at Hermitage Funding, Beltway Capital, American Residential Equities, SN Servicing, Bear Stearns and Lehman...



The Grapevine

Fri, 21 Dec 2018
Verizon is seeking two analysts for a team that reports on the mobile-device payments backing its securitizations. The recruits would work in Basking Ridge, N.J., and Lake Mary, Fla., with a focus on risk assessments and the creation of new analysis methods. Verizon is zeroing in on candidates with at least three years of experience. To apply, click on “careers” at verizon.com and search for job number...



The Grapevine

Fri, 21 Dec 2018
S&P has added New Diligence Advisors to its list of approved due-diligence firms that review mortgage securitizations. New Diligence already was approved by Fitch, Kroll and Morningstar. The Horsham, Pa., operation is owned by Lewis Ranieri’s Selene Holdings, which is in the midst of a sale to Pretium Partners. That transaction is scheduled for completion in...



Market Pros "Fearful' With CLOs in Freefall

Fri, 14 Dec 2018
Structured-product values continue to drop.The deterioration, which began in late November, remains sharpest among junior securities — particularly the mezzanine and equity pieces of collateralized loan obligations. But other sectors increasingly are seeing similar weakening.Among CLOs, triple-B-rated bonds with lives of 5-10 years saw discount margins widen 50 bp to an average of 400 bp on the secondary market this week. The same notes...



CP Conduit Taking Shape at GreensLedge

Fri, 14 Dec 2018
GreensLedge is developing a commercial-paper conduit.The New York investment-banking firm’s vehicle would fund assets including auto loans, student loans, credit-card accounts and trade receivables for multiple clients. It is expected to begin selling its short-term paper by mid-2019.The creation of a new conduit would be a rarity. Still, many saw it as inevitable that GreensLedge would throw its hat into the ring. That’s in part...



STS Labels Suddenly Imminent in Europe

Fri, 14 Dec 2018
Designations for “simple, transparent and standardized” securitizations in Europe could be around the corner.The European Banking Authority this week finalized the requirements for so-called STS treatment. Meanwhile, the not-for-profit Prime Collateralized Securities appears to be within days of receiving approval from the U.K. Financial Conduct Authority to certify for issuers that individual deals qualify for that label.The...



MFA Preps Fix-and-Flip Program

Fri, 14 Dec 2018
MFA Financial is stockpiling residential fix-and-flip loans with an eye toward securitizing the accounts.Sources said the New York REIT began buying the loans in bulk around midyear. It is expected to have amassed a portfolio of almost $100 million soon, setting the stage for a bond offering by yearend 2019.MFA already has discussed the effort with rating-agency analysts. Credit Suisse is seen as a likely underwriter.While it’s unclear if...



AIG Broadens Underwriting Effort

Fri, 14 Dec 2018
AIG Asset Management is expanding a unit that underwrites private asset-backed bond offerings and routes them into its own investment portfolio.For some time, a team within AIG Asset Management’s private-credit group has helped specialty lenders finance assets including leases on aircraft, cellular towers, railcars and solar-energy equipment by structuring asset-backed bond transactions. The motivation, aside from collecting underwriting...



Subprime Auto Issuers Calling Deals

Fri, 14 Dec 2018
Asset-backed bond investors are scratching their heads over a wave of cleanup calls among deals backed by subprime auto loans.Since mid-October, many of the sector’s most active issuers, including American Credit Acceptance and World Omni, have exercised call options on large numbers of older transactions. The terms of auto-loan securitizations typically permit issuers to call the bonds once the outstanding principal balances fall to...



Sprout MBS Program Taking Shape

Fri, 14 Dec 2018
Sprout Mortgage at last appears ready to launch a securitization program.The company, which entered the issuance pipeline in 2016, has set its sights on the first half of next year to float its debut transaction. The catalyst: Its origination volume has grown to the point where it no longer can rely solely on whole-loan sales for funding.Indeed, Sprout recently has been writing more than $180 million of mortgages per month. It focuses on accounts...



Restraint Urged for FHFA Nominee

Fri, 14 Dec 2018
Mortgage professionals are responding to the nomination of Mark Calabria to head the Federal Housing Finance Agency by reiterating calls for the government to exercise caution in taking Fannie Mae and Freddie Mac out of conservatorship.While industry participants welcome the idea that Calabria would reduce the agencies’ roles, and thus open more business to private-label lenders, they also have expressed a belief that a hasty effort could...



BNY Fights Back in Tech War

Fri, 14 Dec 2018
BNY Mellon’s trust unit is upgrading its loan-analysis technology, with an emphasis on winning more business from collateralized loan obligation issuers.The improvements marry the bank’s existing LoanArc system with a data-retrieval and document-processing tool called Solvas/Digitize developed by Deloitte. The new version is being tested by clients in the CLO sector.LoanArc allows issuers to quickly ascertain how their loan portfolios...



Losses Climb for Subprime Autos

Fri, 14 Dec 2018
Performance indicators continue to deteriorate among securitized pools of subprime auto loans.According to an index maintained by Fitch, annualized losses rose 18 bp to 9.71% during the month ended Nov. 15 — approaching a high of 10.92% reached in November 2016. Delinquencies increased 1 bp to 5.48%, also nearing a high of 5.74% from this February. Fitch said both figures could eclipse the previous records in the months ahead, as borrowers...



The Grapevine

Fri, 14 Dec 2018
The whereabouts of several more Hunt Financial Securities executives have come to light. Kevin Cooney transferred to Brean Capital on Dec. 3, joining about a half-dozen colleagues who took similar assignments after Hunt Cos. bought a stake in the New York brokerage firm on Nov. 8 and began folding Hunt Financial into the operation. Meanwhile, Patrick Carvell, already on a long list of Hunt staffers to turn down positions at Brean, re-joined the...



The Grapevine

Fri, 14 Dec 2018
BMO Capital has hired a head asset-backed bond trader. David Stauber, who arrived in the Bank of Montreal unit’s New York office in recent weeks, most recently worked in a similar capacity at Cantor Fitzgerald from 2016 to June 2017. He previously spent time at RBC, Braver Stern and UBS. BMO long has dealt in mortgage bonds and collateralized loan obligations. It expanded into asset-backed securities with its parent’s September...



The Grapevine

Fri, 14 Dec 2018
Meanwhile, BMO Capital has closed a search for a New York-based managing director who would lead new business aimed at arranging funding for U.S. mortgage lenders, indicating that the bank is about to appoint someone to the role. BMO began collecting applications in mid-October, apparently drawing interest from a number of market veterans. The recruit’s duties would including offering warehouse financing to a swath of lenders and arranging...



The Grapevine

Fri, 14 Dec 2018
Barclays has hired a collateralized loan obligation structuring specialist. Chengnan “Tracy” Zhou arrived in the bank’s New York office last week from Societe Generale, where she worked since March. Her addition comes as part of a buildup that began with the July arrival of head CLO banker John Clements from Citigroup.



The Grapevine

Fri, 14 Dec 2018
Latonia Hubbs started in Morningstar’s New York office on Dec. 10 as a vice president covering deal evaluations, surveillance and research across a mix of asset-backed securities and collateralized loan obligations. Hubbs had been in charge of research and analytics at First Data, and before that spent time at Commerzbank, GE Capital and Moody’s. At Morningstar, she reports to asset-backed securities head Rohit...



The Grapevine

Fri, 14 Dec 2018
Citigroup has an opening for a vice president to handle due-diligence reviews for its mortgage-finance group in New York. The recruit would join a 24-member team that arranges deals backed by receivables including prime-quality and subprime mortgages, along with agency risk-transfer, reperforming, nonperforming and rental-home cashflows. Candidates can apply by clicking on “careers” at citi.com and entering job number...



The Grapevine

Fri, 14 Dec 2018
Consulting firm ICF is seeking a senior leader for its aircraft-finance practice. The New York-based recruit’s duties would include analyzing portfolios of aircraft leases and forecasting cashflows for related securitizations. ICF is focusing on candidates with at least 15 years of experience. To apply, click on “careers” at icf.com and enter job number...



The Grapevine

Fri, 14 Dec 2018
Longtime securitization specialist Frank Deutschmann has taken a New York post as chief technology officer at Simpl, a Mumbai company that bills customers on behalf of small merchants. Deutschmann most recently led business development at data-analytics company DV01 from 2016 to this May. He previously developed structured-product technology at FSI Capital and Fortis Investments, and before that worked in technology-focused roles at Trepp and...



Delay Leaves European Issuers in Limbo

Fri, 07 Dec 2018
A new wave of uncertainty has accompanied an admission by European regulators that compliance templates for the region’s new securitization rules still aren’t ready.In conceding on Nov. 30 that they wouldn’t release reporting guidelines before the controls take effect at the beginning of 2019, the European Securities and Markets Authority, European Banking Authority and European Insurance and Occupational Pensions Authority also...



Verizon Dials Up Business-Line Program

Fri, 07 Dec 2018
Verizon wants to securitize mobile-telephone payments from its corporate clients.Indications are that the company initially will bundle the receivables into deals in which it already securitizes payments on personal plans, starting with an offering in the first quarter of 2019. Business lines would make up perhaps 10% of the collateral pool for that issue.By late 2019, Verizon would set up a separate trust for its corporate contracts —...



Downgrade Threat Spooks CLO Professionals

Fri, 07 Dec 2018
Buyers and issuers of collateralized loan obligations are expressing increasing nervousness about the possibility of downgrades within the deals’ collateral pools.The concerns reflect something of a disconnect in the market. On one hand, industry participants have long worried that strong demand for leveraged loans was making it too easy for weak companies to borrow money while enabling them to reduce investor protections to perilously low...



Nelnet Jumpstarts Private-Loan Effort

Fri, 07 Dec 2018
Nelnet is taking another swing at developing a securitization program that would finance portfolios of private student loans.The effort is tied to an initiative under which the Lincoln, Neb., education lender plans to begin originating private loans for the first time. An initial offering is expected to hit the market in the second half of 2019, with subsequent deals flowing quarterly.The first few transactions could be backed by a combination of...



Issuers Prep "Print-and-Sprint' CLOs

Fri, 07 Dec 2018
A selloff in the leveraged-loan market is prompting a flurry of fresh collateralized loan obligations.The offerings would employ a “print-and-sprint” format in which the issuers would use proceeds from the bond sales to finance collateral purchases — as opposed to tapping warehouse facilities to accumulate the underlying loans beforehand. No such transactions have taken place since 2016, the last time market conditions favored...



Reverse-Mortgage Deal On the Way

Fri, 07 Dec 2018
Finance of America is preparing its next reverse-mortgage securitization.The deal, totaling more than $350 million, is expected to hit the market in the next few days. Kroll and Morningstar will rate the bonds.Word of the offering comes on the heels of a $419.5 million reverse-mortgage offering that Finance of America priced on Oct. 2 with Nomura running the books. All told, the Horsham, Pa., company has completed five such offerings totaling...



New Personal Lenders Enter Pipeline

Fri, 07 Dec 2018
As many as 12 online personal lenders are preparing to launch in 2019.Like their already-established peers, some of the start-ups would fund themselves through securitization. Other options might include pass-through certificates or straight loan sales, sometimes via partnerships with banks or credit unions.In something of a twist, the yet-to-be-identified operations plan to cater either to the highest-scoring customers or those low on the...



Dechert Shores Up CLO Team

Fri, 07 Dec 2018
Dechert has elevated two of its collateralized loan obligation lawyers to partner.Associates Christopher Desmond and Sam Gilbert, both in Boston, were among 16 lawyers to receive the partner designation on Dec. 5, effective Jan. 1.The new assignments follow the November arrival of London-based partner Cameron Mitcham from Allen & Overy. The moves were intended in part to reinforce Dechert’s CLO practice following the losses of several...



Voya Eases Up on Structured Products

Fri, 07 Dec 2018
A Voya Investment mutual fund has eased back on its purchases of structured products.The vehicle, Voya Intermediate Bond Fund, had a little more than $6 billion under management on Nov. 1, including $1.45 billion of asset-backed securities, commercial mortgage bonds, non-agency residential mortgage bonds, agency risk-transfer securities and bonds backed by rental-home cashflows. That’s down from $1.54 billion at midyear.At the same time,...



Holiday Stress for Personal Loans

Fri, 07 Dec 2018
Losses among pools of online personal loans rose in November.According to an index maintained by Kroll, the weakening was pronounced among loans to more-creditworthy borrowers. Consider that losses across pools of Tier 1 loans — to borrowers with credit scores of 710-740 — rose 63 bp to an annualized 5.53% in November. That’s just shy of a 5.92% high in November 2016. The 60-day delinquency rate also rose, by 9 bp to 1.25%....



SFIG to Request CSP Access

Fri, 07 Dec 2018
The Structured Finance Industry Group will ask Congress to expand the Common Securitization Platform to encompass private-label mortgage bonds.Dan Goodwin, the trade group’s director of mortgage policy, plans to present the case at a House Financial Services Committee hearing on a bill that calls for the unwinding of Fannie Mae and Freddie Mac. His testimony will include evidence that the program’s securitization infrastructure would...



The Grapevine

Fri, 07 Dec 2018
Mortgage-bond origination professional James Harrington has turned up at Cantor Fitzgerald’s New York office as a managing director. Harrington had worked at Deutsche Bank from 2015 to this August. He previously spent time at Shellpoint Mortgage, Fortress Investment, Lehman Brothers, J.P. Morgan and Brown Brothers Harriman. His arrival at Cantor comes as part of a large-scale staff buildup that began about a year...



The Grapevine

Fri, 07 Dec 2018
Buyside specialist Blake Eger joined Redwood Trust’s New York outpost this week with oversight of opportunistic investments in mortgage products. Eger had been at Structured Portfolio Management since 2014. She previously spent time at Merrill Lynch, J.P. Morgan and Bear Stearns.



The Grapevine

Fri, 07 Dec 2018
Asset-backed bond trader Kyle Pietila moved to Societe Generale’s New York office from RBC in November. Pietila had been at RBC since 2014, following stops at 40/86 Advisors, Chicago Mercantile Exchange and Commercial Defeasance. At SocGen, Pietila fills a vacancy created with Alan Johannsen’s July exit for BOK Financial. He reports to structured-product trading chief Alexandre...



The Grapevine

Fri, 07 Dec 2018
Asset-backed bond trader Antonio Blasetti has left Brean Capital to join KeyBank’s New York office in a similar capacity. Blasetti worked at Brean since 2012, and before that was at Gleacher & Co. Key downsized its securitization staff this year, pushing out sales co-head Michael Corsi and top trader Joe Vaccaro, among others. Brean, meanwhile, is in the process of combining with Hunt Financial...



The Grapevine

Fri, 07 Dec 2018
Haksun Kim started in Morningstar’s New York office on Dec. 3 as a senior vice president focused on ratings, surveillance and research of asset-backed securities and collateralized loan obligations. Kim had been at Kroll since 2015. He also has spent time at Moody’s and Argus Information. At Morningstar, he reports to asset-backed securities head Rohit...



The Grapevine

Fri, 07 Dec 2018
Morgan Stanley has added a lawyer to its collateralized loan obligation origination team. John Bumgarner arrived in the bank’s New York office in recent weeks from Dechert, where he represented issuers and underwriters of CLOs and credit-card bonds since 2010. Earlier, he spent time at Wells Fargo.



The Grapevine

Fri, 07 Dec 2018
Melvin Zhou joined Kroll’s New York office on Dec. 3 as a director responsible for rating bonds backed by a variety of assets, including credit-card accounts, student loans and personal loans. Zhou had worked at Fitch since 2007, and before that was at Citigroup.



The Grapevine

Fri, 07 Dec 2018
Credit Suisse has hired a mortgage-analytics specialist. Yicheng Zhong will join the bank’s New York office soon from hedge fund operator Structured Portfolio Management, where he worked since 2010. Zhong also has worked at Deutsche Bank, Platinum Grove Asset Management and RBS.



The Grapevine

Fri, 07 Dec 2018
Morgan Lewis added an associate to its securitization practice on Nov. 26. Jay Southgate joined the firm’s New York office from Thacher Proffitt, where he worked since 2004. His arrival came the day before Sarah Nelson started as a partner focused on securitization-related tax issues. Nelson formerly worked at Credit Suisse, Locke Lord and Nixon Peabody, following an earlier stint at Thacher...



The Grapevine

Fri, 07 Dec 2018
Nicole Montecalvo left her post as head of investors relations at Renovate America in November to join Chicago rental-home company Home Partners of America. Montecalvo started at Renovate in 2016, after stops at Avant and Morgan Stanley. Renovate is a routine issuer of bonds backed by Property Assessed Clean Energy loans. Home Partners also maintains a securitization...



The Grapevine

Fri, 07 Dec 2018
Longtime structured-finance professional Ken Gill has switched career tracks, starting a Miami home-renovation company called Gill Renovations in November. Gill last worked from 2010 to 2017 as part of the home-loan management group at Bayview Asset Management. Before that, he was at Fitch, S&P and KeyBank.



SEC Examines Honor's Lending Tactics

Fri, 30 Nov 2018
The SEC is investigating whether subprime auto lender Honor Finance overstated its historical asset performance before conducting its lone securitization, which is on the verge of default.Indications are that a formal examination already is under way and that the regulator soon will issue a subpoena for records and testimony from Honor. The agency also intends to order documents from Honor’s majority owner, CIVC Partners.Additional requests...



Japan Regulator Takes Aim at Investor Risk

Fri, 30 Nov 2018
Japan’s Financial Services Agency is considering a change in policy for structured-product investors, with a focus on buyers of collateralized loan obligations.Accounts of the regulator’s intentions vary widely, with some suggesting it might implement a risk-retention rule spanning securitized instruments, or for CLOs in particular. Others are pointing to higher risk weightings — again with an emphasis on CLOs.Another...



Hunt Staffers Turn Down Positions at Brean

Fri, 30 Nov 2018
A large number of Hunt Financial Securities’ employees won’t move to Brean Capital.As Hunt Financial parent Hunt Cos. initially prepared to fold the operation into Brean, widespread staff exits were seen as unlikely. Following the deal’s completion on Nov. 8, however, many of Hunt Financial’s salesmen and traders have opted to leave the company.Hunt Financial had a headcount of about 35 at the time of the merger,...



Zillow Maps Mortgage-Bond Effort

Fri, 30 Nov 2018
Zillow is looking at securitization as a primary funding source for its new mortgage business.The Seattle company, best known for its online tools for home buyers, already has discussed its bond-issuing ambitions informally with bankers and rating-agency officials. An initial offering could come in the second half of 2019.That deal likely would be backed by prime-quality jumbo loans. Eventually, the program could encompass a range of assets,...



Cautious Investors Dent Bond Values

Fri, 30 Nov 2018
Investors are retreating from asset-backed bonds.With volatility rising in the equity and corporate-bond markets amid climbing Treasury yields, the concern among buysiders is that securitized products soon could fall victim to broader financial-market weakness. In response, many have sought to lighten their exposures in recent weeks via a wave of secondary-market listings — causing spreads to widen.Buysiders also have pulled back from new...



SFIG Narrows Field for Top Post

Fri, 30 Nov 2018
The Structured Finance Industry Group is closing in on the selection of a new executive director.Sources said a search committee overseeing the interviewing process for the trade group has narrowed its list of candidates to a final few. A decision is expected before yearend, though an official announcement may not come until early 2019.If the recruit is a Wall Street executive, the thinking is he or she would want to delay an official move until...



Fiat Chrysler Eyes Subprime Lender

Fri, 30 Nov 2018
Fiat Chrysler, which is dropping Santander Consumer USA as its preferred lender, is exploring a deal to acquire subprime lender Exeter Finance.The automaker first approached Exeter’s parent, Blackstone, in September, sources said. But it apparently balked at the asking price.In August, Reuters reported that Blackstone had hired investment banks to explore a possible sale of Exeter, with hopes of fetching more than $1 billion.But in the past...



Agency Limits Seen as Short-Lived

Fri, 30 Nov 2018
Jumbo-mortgage specialists are predicting a quick reversal of the Federal Housing Finance Agency’s new limits for agency loans.The FHFA said on Nov. 27 that it plans to increase the maximum sizes of Fannie Mae and Freddie Mac mortgages in high-cost areas to $726,525 from $679,650, and to $484,350 from $453,100 in the rest of the country.The increase, championed by FHFA director Mel Watt, takes effect Jan. 1. But with Watt’s term...



Brazos Readies Bond Offering

Fri, 30 Nov 2018
Brazos Higher Education is getting ready to securitize its student loans for the first time in more than three years.The nonprofit lender plans to roll out an offering of perhaps $120 million in the next few weeks, sources said. The deal would be backed by government-guaranteed accounts the company has held on its balance sheet for years.It’s unclear whether Brazos plans to resume routine issuance or is pooling the loans now for bookkeeping...



Buyside Shop's Holdings Soar

Fri, 30 Nov 2018
(SEE CORRECTION BELOW) Modern Woodmen of America has stepped up its purchases of asset-backed bonds.The operation, which offers a mix of insurance and investment products to its 760,000 members, has purchased some $300 million of such securities this year. That’s up from about $100 million in 2017. The holdings include bonds underpinned by auto loans, credit-card receivables and student loans.Modern Woodman, a “fraternal benefit society,”...



The Grapevine

Fri, 30 Nov 2018
Nomura has hired Florian Bita as head of collateralized loan obligation banking. The New York-based Bita most recently headed CLO trading at RBC from 2013 to this April, when he was caught in a round of layoffs. He also has spent time at Cantor Fitzgerald, UBS, Deutsche Bank, Goldman Sachs and Citigroup. Despite its status as an active trader, Nomura has been nearly idle on the CLO-origination front since...



The Grapevine

Fri, 30 Nov 2018
BNY Mellon hired Gwen Collins this month as head of product management and strategy for its issuer-services division, a New York post in which she oversees the development of new services for the bank’s securitization-trust and depository-receipts businesses worldwide. Collins had been at Alpha Governance since 2016, and before that supervised banks and technology companies at the Federal Reserve. She also has worked at G Capital, Deutsche...



The Grapevine

Fri, 30 Nov 2018
Managing director Rob Steelman has left the investment team at CIFC. Steelman had been covering leveraged loans of healthcare, technology and chemical companies at the New York firm since 2006 — including those underpinning its collateralized loan obligations. He previously worked at ABN Amro, Janney Montgomery Scott, J.P. Morgan, Tague Securities and First USA Bank. CIFC has issued five CLOs totaling $3.8 billion this...



The Grapevine

Fri, 30 Nov 2018
Qbera Capital, a startup asset manager focused on financing of energy, natural-resources and agriculture companies in Asia and Africa, has hired a securitization specialist. Paul Petkov arrived in October with oversight of advising the London firm’s targeted businesses on their structured-finance options. He also serves as chief operating officer. Petkov previously served two stints at HSBC, separated by a stop at Lloyds Banking from 2016...



The Grapevine

Fri, 30 Nov 2018
Bank of Montreal is seeking a New York-based managing director to develop a new business aimed at arranging funding for mortgage lenders, in part through securitization. The bank is focusing on candidates with at least 15 years of experience. To apply, click on “careers” at bmo.com and enter job number 1800026310.



The Grapevine

Fri, 30 Nov 2018
Wellington Management has an opening for an associate-level researcher. The Boston-based recruit’s duties would include creating financial models for structured products the $1 trillion fund manager is interested in buying. Wellington is focusing on candidates with 2-5 years of experience. Applicants can contact in-house recruiter Adwoa Taylor at 617-790-7113 or...



The Grapevine

Fri, 30 Nov 2018
Amherst Pierpont Securities has transferred managing director Ryan Stroker out of its broker-dealer unit, reassigning him to the acquisition team of an operation called Amherst Residential that buys rental homes. Amherst had placed Stroker on leave in January after Finra recommended that he face disciplinary actions for allegedly violating standards for conduct in his role as a structured-product trader. His Finra registration expired Nov. 16,...



The Grapevine

Fri, 30 Nov 2018
Former Pelican Auto Finance chief executive Troy Cavallaro has resurfaced in the Wilmington, Del., office of OneMain Financial as a vice president on a sales team that focuses on originating personal loans — assets the company routinely securitizes. Cavallaro founded Pelican in 2009 and shuttered the operation this March. He previously worked at ACC Consumer Finance, Centrix Financial, Household Finance and...



The Grapevine

Fri, 30 Nov 2018
Buyside specialist Eliza Jane Crawford has transferred to TCW’s London office, from Los Angeles. Crawford, who handles analysis and trading of structured products, joined the company in 2015 from EJF Capital. She also has worked at Credit Suisse.



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Neuberger BermanNew YorkLongtime player runs its own CLO programs in the U.S. and Europe, and owns minority stakes in issuers H.I.G. Capital, Halcyon Capital, HPS Investment and Sound Point Capital via Dyal Capital unit. Major buyer through massive mutual fund business.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Market” section under “CLO...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
BlueMountain CapitalNew YorkBegan issuing in Europe in 2016, supplementing a U.S. program that dates back to 2005. Invests across the structured-product universe.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Market” section under “CLO Issuers.”



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Palmer Square CapitalMission Woods, Kan.Bought back a minority stake in October from Montage Investments, which was among its original backers. Along with deals in which it trades the underlying loans, the firm added unusual static-pool offerings in 2015. Founded by the husband-and-wife team of Chris and Angie Long.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
THL CreditBostonIssues under the name THL Credit Wind River. Emerged as an issuer after the credit crisis. CLOs complement a broader investment business that includes interests in syndicated loans and direct mid-size accounts.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Market” section under “CLO...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Benefit Street PartnersNew YorkParent Providence Equity agreed in October to sell the $26 billion operation to Franklin Templeton. One of the few big issuers without a European unit. Paasche was among a group of former Deutsche Bank executives who started the operation, led by Thomas Gahan.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Market” section under...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Apollo ManagementNew YorkHas cut back on volume of deals backed by broadly syndicated loans amid concerns about deteriorating credit performance. But there’s been no such decrease for offerings underpinned by mid-size loans. Some of its deals take place under the name Redding Ridge Asset Management, reflecting the use of a risk-retention vehicle set up in 2016. Others are offered under the MidCap Financial label.NOTE: Complete listing...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Antares CapitalChicagoOriginator of mid-size business loans resumed issuing CLOs in 2017, having remained out of the market since 2005. The catalyst for its return: The operation’s sale by GE Capital to Canada Pension Plan. Hired head CLO banker Mathew away from J.P. Morgan in February 2016 to oversee the effort.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Voya FinancialNew YorkFormer U.S. arm of ING traces its origins to the early days of the CLO market. Current staff has been in place for years, while former personnel have given rise to a number of other issuers. Among them is Covenant Credit, which agreed to a takeover by AIG in May.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Market” section under...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Golub CapitalChicagoOne of the oldest and biggest issuers of deals backed by mid-size leveraged loans. Also offers syndicated-loan deals. CLO investments mainly involve junior securities.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Market” section under “CLO...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Sound Point CapitalNew YorkCanada Pension Plan agreed in September to invest $285 million in equity pieces of the firm’s deals over the next few years. Dyal Capital last year took a minority stake in the operation, formed by former Bank of America executive Steve Ketchum with backing from Stone Point Capital. Only buys CLOs opportunistically.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Fortress InvestmentNew YorkDeals are backed by broadly syndicated loans and mid-size accounts it writes. December 2017 takeover by Softbank added to funding options. In 2016, bought the rights to manage four deals issued by Hildene Capital, ending that firm’s presence in the business. CLOs complement diversified investment and warehouse-lending activities.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
BaringsSpringfield, Mass.Resources as investment arm of MassMutual gives it ample buying power and ability to maneuver through issuance obstacles, including risk retention. Active in U.S. and Europe. Rebranded from Babson Capital in 2016, taking the name of a London subsidiary.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Market” section under “CLO...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
CVC CreditLondonCary Ho, who formerly led CLO banking at Nomura, arrived in 2017 as head of structuring with the promotion of Bergstresser to head of performing credit-product investments. Bergstresser had founded a predecessor CLO program at Apidos Capital, which combined with CVC in 2012. Originally the European private equity arm of Citigroup, CVC has operated in the U.S. since 2007.NOTE: Complete listing appeared in November 16, 2018, issue...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Och-Ziff CapitalNew YorkArrived as part of a wave of new issuers that formed after the credit crisis, and is on pace for its busiest year yet. Klein took control of issuance program when Don Young left in 2016 to form CBAM.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Market” section under “CLO...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Octagon CreditNew YorkInvestments include CLO debt and equity. Oversees purchasing decisions for XA Investments funds. As an issuer, frequently trades in and out of collateral positions. Founded as a unit of Chemical Bank and spun off from Chase Manhattan in 1999. In 2016, sold a majority stake to Conning & Co.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
KKRNew YorkIssuing program continues to regain momentum after slowing a few years ago. Branched into Europe with 2013 purchase of Avoca Capital.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Market” section under “CLO Issuers.”



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
MJX Asset ManagementNew YorkGenerally takes a buy-and-hold approach to managing collateral pools. Chief investment officer Brian Colgan left in 2017. Unlike most major players, doesn’t maintain an issuing program in Europe or invest heavily in other firms’ deals. Formed via a management buyout from Barclays, led by founders Christensen and Davey.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
CIFCNew YorkProduction has rebounded after a slow 2016, when shareholders approved a takeover by F.A.B. Partners with backing from Qatar’s royal family. Remained busy despite the sudden exit of co-chief executive Oliver Wriedt in May. Building a European issuance program under Dan Robinson, who arrived from Apollo Global in July. Huang signed on from Citigroup in January as co-head of structured-product investments.NOTE: Complete listing...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Ares ManagementLos AngelesEarly innovator has issued more than 50 U.S. deals. They include core offerings backed by broadly syndicated loans and a series from Ivy Hill unit underpinned by mid-size accounts. Also busy in Europe.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Market” section under “CLO...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Carlyle GroupNew YorkTakes a buy-and-hold approach to managing collateral pools. Has been issuing CLOs since the earliest days of the market in the U.S. and Europe. Along with deals backed by broadly syndicated accounts, occasionally offers CLOs underpinned by its own mid-size loans. Major buyer of senior and subordinate securities, but most often pursues mezzanine and equity positions.NOTE: Complete listing appeared in November 16, 2018, issue...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
CBAMNew YorkRelative newcomer formed in 2016 under the umbrella of investment firm Eldridge Industries, which is headed by former Guggenheim executive Todd Boehly. Began issuing the next year under the supervision of Damaso and Young, formerly of Och-Ziff Capital. Kim came on board from Natixis. Recent hires include loan trader Allie Fink, from Guggenheim.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
PrudentialNewark, N.J.Issues under the Dryden brand in the U.S. and Europe, often taking a creative approach. Also manages deals alongside new issuers, allowing it to share in their fees. Hoyer and Juliano have led issuance efforts since the 2013 promotion of Sara Bonesteel. Juliano additionally was named head of U.S. bank loan portfolio with the exit of Joe Lemanowicz this year. A major buyer of senior CLO securities.NOTE: Complete listing...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Credit SuisseNew YorkEmphasis on innovation produced the first vertical risk-retention structures. Among just a few with CLOs backed by both loans and high-yield bonds. Active in the U.S. and Europe, and is the only bank operating a major CLO program. Veteran group is led by Popp, whose experience as a leveraged-loan investor pre-dates the CLO market.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
BlackstoneNew YorkSince its 2008 purchase of fund operator GSO Capital, Blackstone’s CLO-management portfolio has swelled to $23.6 billion. European arm augments dealflow. The firm’s presence also reflects its 2017 purchase of a $2.4 billion loan portfolio from NewStar Financial. Does the occasional deal backed by commercial mortgages. Heavily trades collateral positions. Sobol arrived in March.NOTE: Complete listing appeared in...



LISTING: Most-Active CLO Issuance Programs

Sat, 17 Nov 2018
Intermediate CapitalLondonGrowing European market is boosting the profile of one of the few major issuers based there. Was among the first to offer a deal in the region after the credit crisis, under its St. Paul’s brand. U.S. program started in 2014.NOTE: Complete listing appeared in November 16, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Market” section under “CLO...



Failure Imminent for Auto-Loan Transaction

Fri, 16 Nov 2018
Amid accusations that the company may have exaggerated its asset performance, the lone securitization from subprime auto lender Honor Finance is on the verge of default.Asset losses have caused over-collateralization for the $100 million transaction’s first-loss Class-C piece to fall to virtually zero. And with the tranche’s remaining receivables including a large number of delinquent accounts, sources said those notes likely will...



Ex-Regulators Bow Out of Card Business

Fri, 16 Nov 2018
Subprime credit-card lender Continental Finance is buying troubled rival FS Card, adding a twist to a frosty relationship between the two firms’ leaders.The deal, signed last week, would give Continental some 80,000 FS accounts totaling $38 million. Continental already is preparing to take over servicing of the receivables, which it plans to securitize through a series of privately placed transactions it long has used to fund its...



Freddie Alum Targets Distressed Mortgages

Fri, 16 Nov 2018
A mortgage-market veteran who most recently oversaw Freddie Mac’s holdings of distressed home loans and pre-credit-crisis mortgage bonds has opened his own investment shop.After leaving Freddie in October, Adama Kah formed Kah Capital of McLean, Va., with the aim of launching a hedge fund that would invest in nonperforming and re-performing mortgages, as well as newly originated home loans. He also would trade mortgage-backed securities,...



Managers Hit Pedal on Europe CLOs

Fri, 16 Nov 2018
Issuers of collateralized loan obligations are hastening to complete deals in Europe before the region’s regulatory overhaul takes effect Jan. 1.For European CLOs due to price in the coming weeks, the plan is to accelerate the closing process so the transactions can be finalized by Dec. 31 — and thereby avoid data-collection and reporting requirements under the new rules. In Europe, CLOs typically take up to two months to close.Take...



New Heights for CLO Conference

Fri, 16 Nov 2018
Opal Group’s next conference promises to be one of the largest-ever gatherings of collateralized loan obligation professionals.An estimated 1,500 issuers, investors, bankers and vendors have registered for the annual “CLO Summit,” which takes place Nov. 28-30 at the Monarch Beach Resort in Dana Point, Calif. That would easily top last year’s headcount of 1,200.It also would roughly match the turnout for Information...



MBS Issuers Cranking Out Deals

Fri, 16 Nov 2018
Get ready for a surge of mortgage-bond offerings.Nearly 20 transactions are expected to hit the market in the coming weeks as issuers and their bankers push to price deals before investors close their books for the year. The pipeline includes offerings from J.P. Morgan and New Residential Investment backed by prime-quality jumbo loans that meet the Bureau of Consumer Financial Protection’s “qualified-mortgage” guidelines. Also...



Data-Analysis Firm Expands in US

Fri, 16 Nov 2018
Structured-product analytics shop Oxane Partners is gaining traction in the U.S.The 5-year-old firm, which initially focused on Europe, has picked up four clients in New York in the past six months. It signed its first U.S. client in late 2017.The growth spurt comes as Oxane, of Gurgaon, India, has been expanding the scope of the services it offers to asset managers, including hedge fund operators. Its core business is advising clients on...



Bitcoin Loans Seen as Collateral

Fri, 16 Nov 2018
A firm that lends against borrowers’ cryptocurrency investments is considering securitization as a funding source.Unchained Capital of Austin still is in the early stages of examining how an asset-backed bond program would mesh with its business. It likely would take some time to build up the assets needed for an initial offering.Unchained’s borrowers use its loans to finance their cryptocurrency investments or for personal expenses,...



Subprime Autos Keep Sinking

Fri, 16 Nov 2018
Performance indicators for securitized pools of subprime auto loans continue to worsen.According to an index maintained by Fitch, the volume of delinquent subprime accounts increased 36 bp to 5.47% during the month ended Oct. 15 — the highest level ever recorded for the month. Annualized losses were up 14 bp to 9.53%. Fitch expects both figures to keep climbing into January as borrowers prioritize holiday shopping over debt service....



World's Top 25 Issuers Account for Half of CLOs

Fri, 16 Nov 2018
The listing below shows the collateralized loan obligation market’s most active issuers.The operations are ranked by total deal volume worldwide from Jan. 1, 2017 to Nov. 9, 2018. The sizes of their total management portfolios aren’t taken into account, nor are refinancings.While all categories of CLOs are counted, the largest programs typically fund investments in broadly syndicated corporate loans. In several cases, the issuers also...



Blockchain Lender Sets Issuance Plan

Fri, 16 Nov 2018
The securitization plans of blockchain-driven mortgage lender Figure Technologies are coming into focus.The San Francisco operation, led by Social Finance co-founder Mike Cagney, is aiming for early 2019 to complete a debut offering backed by home equity lines of credit. Amid the preparations, it has become clearer that the firm will hire outside underwriters and rating agencies — as opposed to attempting to handle those functions through its...



Dividend Readies Solar-Panel Deal

Fri, 16 Nov 2018
Dividend Finance is preparing its next securitization of solar-power equipment loans.The Rule-144A offering is expected to total about $125 million. Citigroup is running the books. The deal’s top class will carry a double-A rating from Kroll.The issue’s collateral pool mainly will encompass 20-year loans written to residential property owners. San Francisco-based Dividend also lends to commercial-property owners and offers home-improvement...



Loan Downgrades Hit CLOs

Fri, 16 Nov 2018
Asset quality worsened in September among collateralized loan obligations issued in the U.S. after the credit crisis, according to Moody’s.The erosion was reflected in weakening of their median weighted average rating factors, a key indicator of borrower health. Older transactions fared the worst, although all vintages remained within the equivalent of a “B2” rating. Analyst Aniket Deshpande attributed the deterioration to...



The Grapevine

Fri, 16 Nov 2018
Former Apollo Global executive Steve Baker is headed to the London office of J.P. Morgan, where he will head collateralized loan obligation originations in Europe after waiting out a gardening leave. Baker appears to be absorbing some of the duties of Ben Peletier, who is moving to a different leadership position on J.P. Morgan’s asset-backed bond origination team. Until September, Baker led Apollo’s investments tied to risk-shedding...



The Grapevine

Fri, 16 Nov 2018
Hunt Financial Securities’ merger with Brean Capital has claimed its first victim. Salesman Kenneth Clisham exited Hunt’s Rye Brook, N.Y., office on Nov. 8 after learning that he wouldn’t have a position at the combined operation. He had joined Hunt in 2007 with a focus on mortgage bonds, whole loans and collateralized loan obligations, following stops at Cantor Fitzgerald and Piper Jaffray. Hunt affiliate Hunt Capital purchased...



The Grapevine

Fri, 16 Nov 2018
A team of veteran mortgage-bond traders has launched a hedge fund operation called INF-YGW Capital. The New York firm, led by Raymond Yu, Bruce Graham and Brian Wilson, started trading its INF-YGW Partners Fund on Oct. 29 with an undisclosed amount of capital. Yu’s former employers include Providence Investment, American Capital, Watch Hill Investments and Prudential. Graham most recently worked at Piper Jaffray from 2014 to 2016, and...



The Grapevine

Fri, 16 Nov 2018
Lain Gutierrez left his post as a senior vice president at DBRS on Nov. 2 to start a Norwalk, Conn., operation called SolFin Capital that mainly would finance the installation of solar-power equipment in new residential developments. Gutierrez worked at DBRS since 2011, with a scope that included deals backed by clean-energy receivables. He also has spent time at advisory shop Cold Street Partners, Citigroup and Mitsui Trust. SolFin initially is...



The Grapevine

Fri, 16 Nov 2018
Mortgage-focused due-diligence shop Infinity IPS has hired two sales specialists, both as senior vice presidents. Kurt Eaton, who works in Rocklin, Calif., had been running a home-rehabilitation business since 2014. Before that, he handled relationships with Fannie Mae and Freddie Mac on behalf of Union Bank, and spent time at Deloitte, Bohan Group and Countrywide. Sandra Penichet, who is stationed in New York, most recently managed a...



The Grapevine

Fri, 16 Nov 2018
Renewable-energy finance company PACEFunding is seeking a chief financial officer. The recruit’s duties would include oversight of risk management. He or she would be stationed in Los Gatos, Calif. Applicants must have at least 10 years of experience. PACEFunding, which operates in California, Missouri and Florida, funds its lending activities in part through...



The Grapevine

Fri, 16 Nov 2018
Orchard Platform founder Matt Burton has landed at QED Investors, a venture capital firm in Alexandria, Va., that invests in financial-technology businesses. Burton had started Orchard in 2013 as a data-analysis firm catering to online lenders and buyers of their accounts. He left shortly after the operation was purchased by small-business lender Kabbage in April. Earlier, Burton worked at LiveRail, Google and...



FHFA Outlook Drives MBS Issuance Plans

Fri, 09 Nov 2018
Expectations that the Federal Housing Finance Agency soon will hike so-called guarantee fees on agency loans is driving more lenders to the private-label market.In just the past few weeks, bankers, lawyers and rating-agency executives have fielded a flurry of inquiries from nonbank lenders interested in tapping the mortgage-bond market for the first time.“We’ve talked to several lenders who aren’t issuing now but [are] very...



Credit Unions Study Student Loan Options

Fri, 09 Nov 2018
Several credit unions are exploring the possibility of issuing bonds backed by private student loans.Digital Federal Credit Union, Navy Federal Credit Union and Pentagon Federal Credit Union are among the operations interested in conducting such deals. Each already has spoken to potential underwriters and rating-agency analysts.The credit unions likely would retain some of the senior bonds from their securitizations, while distributing the rest...



Angel Oak Seeks Capital for MBS Vehicle

Fri, 09 Nov 2018
Angel Oak Capital is marketing a fund that would buy slices of its own mortgage securitizations — a sure sign the lender plans to ramp up issuance.The Atlanta firm is seeking to raise at least $600 million for the drawdown vehicle, Angel Oak Real Estate Investment Fund 2, which is designed in part to help Angel Oak meet risk-retention requirements. A source said Angel Oak already has lined up about $100 million of commitments for the...



Clean-Energy Program Eyes Issuance

Fri, 09 Nov 2018
New York Power Authority is taking a hard look at tapping the asset-backed bond market to finance loans and leases it doles out for clean-energy projects.Executives from the state-owned utility have discussed the plan with securitization bankers and advisory shops that focus on assisting companies in structuring asset-backed bond offerings. The bonds likely would be backed by low-cost loans the White Plains, N.Y., agency originates for business...



CLO Investors Testing the Market

Fri, 09 Nov 2018
Trading of collateralized loan obligations picked up in recent weeks as volatility subsided in the broader market.Secondary-market brokers circulated bid lists totaling $997.5 million of CLOs last week, up from $873.1 million the previous week and a 2018 average of $570 million, according to Empirasign. That was the highest two-week total since the first quarter. About two-thirds of offered securities changed hands.So-called BWIC lists continued...



Chinese Lessor Mulls Aircraft Deal

Fri, 09 Nov 2018
Word is circulating among bankers and investors that an affiliate of China Development Bank is eyeing securitization as a funding source for a large portfolio of aircraft leases.The expectation is that CDB Aviation will float a bond offering of perhaps $300 million in the second half of 2019. Sources said BNP Paribas and Credit Agricole, which have longstanding relationships with China Development Bank, are in the running for underwriting...



Credit Card Performance Rebounds

Fri, 09 Nov 2018
Securitized credit-card accounts showed improved performance in the third quarter, reversing a weakening trend.Charge-offs among U.S. bankcard accounts fell 24 bp to an average of 2.97%, according to an index maintained by Fitch. The percentage of bankcard accounts more than 60 days past due dipped 6 bp to an average of 1.00%. After hovering around historic lows, performance indicators for U.S. bankcards have been gradually deteriorating for the...



CLO in Highland Case Fails Key Test

Fri, 09 Nov 2018
A collateralized loan obligation issued by a Highland Capital unit engaged in a legal battle with a former executive has failed a performance test.Sources said Acis CLO 3, a $416.8 million offering issued in January 2014, hit its interest-coverage trigger last week, prompting the manager to divert payments away from mezzanine and equity investors and instead channel them to senior noteholders.The test requires the collection of specified amounts...



JD Byrider Adds to Record Volume

Fri, 09 Nov 2018
A securitization of subprime auto loans that J.D. Byrider has in the market is set to boost year-to-date issuance to a new record for the sector.So far this year, U.S. auto lenders have sold $29.5 billion of subprime-loan paper — less than $5 million shy of the full-year record for dollar volume set in 2005. J.D. Byrider’s offering, together with a deal from Santander Consumer USA, promises to lift the total above $30 billion.And...



Lower Losses on Personal Loans

Fri, 09 Nov 2018
Loss rates among pools of online-originated personal loans improved across the board in October.According to an index maintained by Kroll, annualized losses among so-called Tier 1 accounts fell 8 bp to 4.90%, while 60-day delinquencies dipped 3 bp to 1.16%. The Tier 1 category encompasses loans written by Marlette Funding and Social Finance to borrowers with credit scores of 710-740. Among Tier 2 accounts — originated by Lending Club,...



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

Fri, 09 Nov 2018
The listing below shows contact information for the top-ranking securitization professionals at the investment banks that consistently distribute the most asset- and mortgage-backed bonds worldwide.The institutions included typically have achieved rankings atop league tables published by Asset-Backed Alert.Head bankers oversee deal origination, structuring and other areas unrelated to trading and syndicate operations. Those in charge of syndicate...



US Bank Offers Fannie Certifications

Fri, 09 Nov 2018
U.S. Bank has won approval from Fannie Mae to certify that mortgages from originators including smaller banks and credit unions meet the agency’s standards.With the addition, those originators can choose between U.S. Bank and BNY Mellon for document custody and verification of accounts they sell to Fannie through its cash-loan program.Fannie previously farmed out that work entirely to BNY, but in 2016 started an expanded pilot program in...



The Grapevine

Fri, 09 Nov 2018
Asset-backed bond structurer David Hufnagel has returned to Barclays after a four-year hiatus. He joined the bank’s New York office this week as a director. Hufnagel most recently was employed at SunTrust Robinson Humphrey from 2014 to this past September. Prior to that, he spent about five years at Barclays as part of an asset-backed securities group. His resume also includes a stint in Viacom’s corporate-treasury group, preceded by...



The Grapevine

Fri, 09 Nov 2018
BOK Financial, the broker-dealer arm of Bank of Oklahoma, has hired a structured-product trader for its office in Stamford, Conn. Sung Cho most recently spent about two years at KeyBank, but left last year amid a flurry of staff departures. His prior employers include RBC, MF Global, Jefferies and Citigroup. BOK is pushing to expand its coverage of asset- and mortgage-backed securities. As part of that effort, it recently hired Alan Johannsen,...



The Grapevine

Fri, 09 Nov 2018
Barings added an executive to its securitized-product group in Charlotte last month. Austin Tucker, who joined as a director, most recently worked in the asset-backed finance group at Wells Fargo, which he joined in 2012 following a stint as a management consultant for CSC. At Barings, Tucker evaluates investments in bonds backed by commercial transportation assets, including aircraft, shipping-container and railcar leases. CORRECTION (11/16/18):...



The Grapevine

Fri, 09 Nov 2018
Sales and business-development professional Jenine Fitter parted ways with consulting firm Birdsey Group about a month ago. She had been at the Atlanta company since September 2017. Before joining Birdsey, Fitter worked as a consultant for Incenter, a mortgage-servicing business controlled by Blackstone, preceded by a stint at mortgage due-diligence shop Opus CMC. She is perhaps best known for her tenure as head of marketing and investor...



The Grapevine

Fri, 09 Nov 2018
Wenbo Xu joined the financial-advisory unit of Houlihan Lokey in recent weeks from Duff & Phelps. Xu, who is based in New York, leads a unit that helps clients assign values to portfolios of whole loans and structured products. He previously spent about seven years at Duff & Phelps, and before that was at U.S. Bank. At Houlihan Lokey, Xu is filling a void left by Gunes Kulaligil and Greg VanLear, who quit in July to launch an asset-valuation...



The Grapevine

Fri, 09 Nov 2018
Freddie Mac executive Adama Kah has left the mortgage agency, destination unknown. Kah spent more than 10 years at Freddie, most recently overseeing portfolios of non-agency mortgage bonds and whole loans. In that role, he contributed collateral for risk-transfer securitizations Freddie offers under its Structured Agency Credit Risk label. Taking Kah’s place is senior director Terin Vivian, previously a whole-loan trader at Bank of...



The Grapevine

Fri, 09 Nov 2018
Ramnik Ahuja has joined MUFG in London as a director. Ahuja is working in a deal-structuring role, with a focus on synthetic risk-transfer deals that are increasingly popular among European banks. He previously spent about four years at Deloitte. Prior to that, Ahuja worked for the U.K. Financial Conduct Authority, where his duties included representing the Bank of England on policy issues before the Bank for International Settlements and...



The Grapevine

Fri, 09 Nov 2018
Morgan Stanley has hired Miguel Tolda to structure asset-backed bond transactions. Tolda joined the bank’s London office in recent weeks with a focus on deals backed by consumer debt originated prior to the credit crisis. He previously worked at Credit Suisse from 2011 to 2017, and also has spent time at Societe Generale.



Santander Recruiting for US Underwriting Push

Fri, 02 Nov 2018
Santander is moving aggressively to build a larger securitization-underwriting business in the U.S., starting with the installation of new leadership.Former MUFG executive Devang Sodha arrived in Santander’s New York office in September as head of the banking side of the operation. That post formerly was occupied by Luis Araneda, who remains at the bank in an undisclosed role.Also new to Santander is head structured-product trader Jason...



Alarms Sound Over Europe Conduit Freeze

Fri, 02 Nov 2018
Banks in Europe increasingly are concluding that an upcoming regulatory update will force them to temporarily stop issuing securities through their commercial-paper conduits.At the center of the matter are reporting requirements that take effect on Jan. 1 as part of the region’s sweeping regulatory update for securitized products. The reporting rules originally contained an exemption for privately placed transactions, including conduit...



Structured-Product Hedge Funds On a Roll

Fri, 02 Nov 2018
Hedge funds that invest in structured products were largely profitable amid the financial market’s October carnage, which punished equity funds and took a heavy toll on high-yield bond funds.Some of the leading structured-product shops managed to produce strong gains for the month, building on year-to-date returns that already were among the best of any hedge fund strategy. Take Prosiris Capital, which told investors last week that its...



Lender's MBS Program Taking Shape

Fri, 02 Nov 2018
Mr. Cooper is broadening the scope of its securitization program.Since changing its name from Nationstar Mortgage in August 2017, the Coppell, Texas, company has been originating home loans that don’t meet the Bureau of Consumer Financial Protection’s “qualified-mortgage” standards. All along, its plan has been to tap the mortgage-bond market as a primary funding source, with a deal tentatively slated for the second half...



Sallie Kills Lending Club Partnership

Fri, 02 Nov 2018
Sallie Mae Bank is upending its personal-loan program.The Newark, Del., operation said in a third-quarter earnings call on Oct. 22 that it had stopped buying such credits from outside originators due to worse-than-anticipated borrower performance. While it didn’t specify who wrote of the accounts, all signs point to Lending Club as the exclusive source.Sallie’s strategy of buying personal loans from an outside originator reflected a...



More Supply From Used-Car Chain

Fri, 02 Nov 2018
An auto lender that caters to customers without credit histories is adopting a more active securitization schedule.Tricolor Auto of Dallas is preparing its second asset-backed bond deal of 2018, marking the only time it has attempted more than one such offering in a year. The $100 million transaction is expected to hit the market in the coming weeks with Credit Suisse running the books.Tricolor has completed four securitizations since it started...



Jefferies Pitches Revolving MBS

Fri, 02 Nov 2018
Jefferies is offering to assemble a novel type of revolving securitization for mortgage originators.The offerings would take the place of warehouse lines, with the bond issuers gaining temporary funding for accounts that they plan to sell to whole-loan buyers including Fannie Mae and Freddie Mac — and swapping in new receivables along the way.Jefferies already has been conducting similar transactions with its own loans through a vehicle...



North Mill Reviving ABS Program

Fri, 02 Nov 2018
North Mill Equipment is returning to the asset-backed bond market.Sources said the Norwalk, Conn., equipment-finance company is laying the groundwork for a deal with an estimated size of about $100 million. It is expected to hit the market during second half of 2019.It’s unclear whether the bonds would be backed by loans or leases. North Mill’s two previous deals both were backed by loans — most recently a $111.2 million...



Accounting Change Perplexes Pros

Fri, 02 Nov 2018
Industry professionals are beginning to focus their attention on a new accounting standard for estimating loan losses.Although the Financial Accounting Standard Board’s directive for calculating “current expected credit losses” doesn’t take effect until 2020, bankers and lawyers say they’re increasingly concerned about the scope and complexity of the rule change. They confess to having little insight at this point...



Data Firm Seeks Non-QM Work

Fri, 02 Nov 2018
DV01 is hoping its debut appearance as a loan-data agent on a securitization of non-qualified mortgages will help it win more business in the space.DV01’s first such appointment came on a $310.7 million offering that New Residential Investment priced on Oct. 19 with Credit Suisse, Citigroup and Nomura running the books. Now, the New York firm is intensifying its marketing efforts in the area while highlighting the assignment as an example...



The Grapevine

Fri, 02 Nov 2018
Laurie Lawler started work as a managing director on Societe Generale’s securitization-banking team in New York in the past week. Lawler previously helped oversee a similar group at HSBC, which she joined in 2006 after a stop at Citigroup. She was hired at SocGen by Daniel McGarvey shortly before he resigned in August from his post as head securitization banker for a move to BNP Paribas. Syndicate chief Robert Pucel has assumed...



The Grapevine

Fri, 02 Nov 2018
Small-business lender Kabbage has added a member to its capital-markets team. Ashley Putterman, who joined the company’s New York office in September, had been employed in a similar role at Spruce Finance from 2014 until that operation shut down in July. Putterman also has worked at Loughlin Management, ProCure and Miller Buckfire. Kabbage has completed four securitizations totaling $790 million since entering the market in...



The Grapevine

Fri, 02 Nov 2018
TD Bank has added Tim Garrett to its New York office, assigning him to work under head asset-backed bond trader Geoff Chang. Garrett had been at Citigroup since 2003, most recently as a director in the bank’s London office. He also has worked at Lazard.



The Grapevine

Fri, 02 Nov 2018
Hedge fund operator Och-Ziff Capital has hired an employee whose responsibilities include helping to structure asset-backed bonds it buys privately from issuers. Alex Song, who starts in the firm’s New York office in January, had been working in a similar capacity at Crayhill Capital since 2015. He also has worked at Bain Capital and Morgan Stanley. At Och-Ziff, Song is part of a private credit team that offers direct financing to small-...



The Grapevine

Fri, 02 Nov 2018
In a corresponding move, Sloan Sutta has signed on as a managing director in Crayhill Capital’s private-credit group in New York. He had been employed at Och-Ziff Capital from 2015 until this July, handling tasks that have been picked up by former Crayhill staffer Alex Song. However, Sutta isn’t a direct replacement for Song at Crayhill. Sutta also has worked at Garrison Capital and Credit...



The Grapevine

Fri, 02 Nov 2018
Wynkoop Financial has hired a head of business development. John Tomeo joined the Greenwood Village, Colo., hedge fund manager’s Southampton, N.Y., office this week as a managing director with the primary task of lining up investors for its Wickapogue Structured Credit Fund. Tomeo had been at fund-marketing firm Hedge Connection since 2016. Before that, he worked at Liberty SBF, Angel Oak Capital, Treesdale Partners, Duncan-Williams, RBS...



The Grapevine

Fri, 02 Nov 2018
T. Rowe Price is seeking an associate analyst to cover investments in collateralized loan obligations. The Baltimore-based recruit would build CLO surveillance software and organize data about issuers and their deals. He or she would work alongside Jean Marc Breaux, who arrived in September from Aegon USA. Candidates can email resumes to in-house recruiter Karen Robinson...



The Grapevine

Fri, 02 Nov 2018
Helene Penido, a leveraged-loan sales and trading specialist, was laid off by BNP Paribas last week. Penido had worked in the bank’s New York office since 2000. She and her colleagues handled duties including the placement of loans with collateralized loan obligation issuers.



The Grapevine

Fri, 02 Nov 2018
Look for online personal lenders to fund more of their receivables by issuing pass-through certificates, with Morningstar rating the deals. The outlook was expressed on a Nov. 1 panel discussion that servicer First Associates hosted alongside Morningstar in New York. Speakers included Lending Club capital-markets chief Val Kay and Morningstar president Brian Grow, with First Associates executive Larry Chiavaro as moderator. Personal lenders...



SFIG Facilitating Transition From Libor

Fri, 26 Oct 2018
The Structured Finance Industry Group is taking a leading role in replacing Libor as a benchmark for existing structured products.The project’s centerpiece would be an online tool that would allow issuers to connect with investors in their outstanding deals, for purposes of polling them on a Libor replacement upon the interest rate’s phase-out in 2021.But SFIG wouldn’t directly commission the system. Rather, it is aiming for...



Redwood Gearing Up for PACE Initiative

Fri, 26 Oct 2018
Redwood Trust is exploring the possibility of writing and securitizing Property Assessed Clean Energy loans.The Mill Valley, Calif., REIT began researching the business a few months ago, and apparently is leaning toward moving ahead with the effort. Initially, it would focus on PACE loans to commercial-property owners.The accounts would include, for example, financing for mall operators that want to retrofit their properties with solar panels or...



Auto-Finance Executives Wage Legal Battle

Fri, 26 Oct 2018
A spat between the founder of MUSA Auto Finance and its former president is complicating the company’s securitization plans.The Dallas firm, which specializes in originating leases for Tesla, sees the asset-backed bond market as a long-term funding source. In 2016, it hired Richard Frunzi away from subprime auto lender Exeter Finance to spearhead its securitization efforts.But MUSA fired Frunzi on Sept. 5. In response, Frunzi filed a...



Agencies Grab Focus at SFIG Event

Fri, 26 Oct 2018
Efforts to pare the activities of Fannie Mae and Freddie Mac will be the core topic at the Structured Finance Industry Group’s “Residential Mortgage Finance Symposium.”A capacity crowd of more than 1,000 industry professionals are expected to attend the conference, which takes place Oct. 29-30 at the Conrad New York hotel. That about matches the turnout from last year, which marked the event’s debut.As was the case in...



Alliance Data's Issuance to Increase

Fri, 26 Oct 2018
Credit-card lender Alliance Data is implementing a strategy that promises to boost its output of asset-backed securities.The Columbus, Ohio, company — the most active issuer of retail-branded credit-card bonds — is shifting away from its longstanding tactic of financing cards for mall-based apparel stores including Bon-Ton, J. Crew and Victoria’s Secret. Instead, it is targeting a broader swath of businesses including big-box...



Lone Star's NPL Bonds Evolving

Fri, 26 Oct 2018
Lone Star Funds’ nonperforming-mortgage securitizations increasingly are reflecting a play by the company to rent out repossessed homes.The Dallas private equity firm, the most active issuer of nonperforming-mortgage bonds, long has included some rental-home cashflows in those deals’ collateral pools. But it has been creating larger allocations for rental receivables in its recent offerings.In the near term, that could lead to an...



Fitch Adds Third-Party Reviewer

Fri, 26 Oct 2018
Fitch has added New Diligence Advisors to the list of due-diligence shops approved to supply it with reviews of mortgage securitizations.New Diligence, a Horsham, Pa., startup owned by Lewis Ranieri’s Selene Holdings, joins about 10 other firms Fitch relies on to help assess the quality of collateral loans. New Diligence already was approved to perform reviews for Kroll and Morningstar.Other reviewers on Fitch’s list include American...



Data Firm Sounds Storm Warning

Fri, 26 Oct 2018
Data-analytics firm TheNumber is telling investors in agency risk-transfer bonds that their exposures to potential losses are larger than many realize.The warnings reflect simultaneous trends toward longer deal terms and stronger hurricanes. Over time, TheNumber believes the combination could lead to enough property damage to wipe out subordinate bondholders.Consider that Freddie Mac used to issue its risk-transfer deals with a requirement that...



Broker-Dealer Pitching Blockchain

Fri, 26 Oct 2018
Propellr, which uses blockchain technology to structure unrated commercial mortgage securitizations for small issuers, wants to expand its coverage to include asset-backed securities and collateralized loan obligations.Previously, the New York broker-dealer mainly financed small-balance commercial mortgage transactions. But its technology is adaptable for other asset classes, and a spokesman confirmed it is in early-stage talks with business- and...



Santander Lines Up Auto-Loan Deals

Fri, 26 Oct 2018
Santander Consumer USA plans to complete two more subprime auto-loan securitizations this year.The offerings reflect increasing loan volume. The Dallas operation’s originations totaled $7.9 billion during the second quarter, up 45% from the year-earlier period.One or both of the upcoming deals might come via the Santander Drive Auto Receivables Trust, which Santander uses to securitize loans to standard subprime borrowers. Or they could...



Wider Scope for MFA Program

Fri, 26 Oct 2018
MFA Financial’s upcoming home-loan securitization program could be more expansive than originally anticipated.In addition to bonds backed by accounts that don’t meet the Bureau of Consumer Financial Protection’s “qualified-mortgage” standards, the New York REIT is interested in selling securities underpinned by investment-property loans and home-equity lines of credit.The operation began setting plans for its...



The Grapevine

Fri, 26 Oct 2018
Former Wells Fargo mortgage-bond banker Peter Perna resurfaced this week in the Charlotte office of Bayview Asset Management. Perna holds the title of assistant treasurer at the Coral Gables, Fla., firm, which issues bonds backed by nonperforming and reperforming home loans. He had been on the sidelines since getting laid off from a warehouse-financing and bond-structuring role at Wells in August. He worked there since 2011, following stops at...



The Grapevine

Fri, 26 Oct 2018
Mortgage-bond specialist Dan Sikora left J.P. Morgan last week to take a job at Pretium Partners. Sikora’s tasks appear to include efforts to integrate the New York firm’s business with that of mortgage servicer Selene Holdings, which it agreed to buy from Oaktree Capital and Ranieri Partners on Oct. 18. To that end, he likely will be involved in the trading of whole loans, as opposed to the rental properties and nonperforming...



The Grapevine

Fri, 26 Oct 2018
Semper Capital has added a mortgage-bond specialist to its investment team. Sandeep Bangar arrived at the New York firm in September from Citigroup’s trading desk, where he started in 2016. Bangar also has worked at Nomura. Semper manages more than $2.5 billion of gross assets through a hedge fund, two mutual funds and separate accounts.



The Grapevine

Fri, 26 Oct 2018
Capital One’s financial-institutions group has hired another executive away from BMO Capital’s securitization team. Brian Zaban, a Chicago-based director, had been at BMO since 1997, most recently as the manager of the bank’s structured-finance exposures. He earlier worked at Coopers & Lybrand. The CapOne team offers a mix of financing services to lenders. It has added numerous personnel this year, including former BMO employee...



The Grapevine

Fri, 26 Oct 2018
Marketing veteran Rudy Orman has parted ways with Promontory Fulfillment, a Danbury, Conn., operation that advises mortgage lenders and banks on loan sales, compliance and technology. Orman had been at the company since September 2017. He previously worked at American Mortgage Capital, Marathon Asset Management, Goldman Sachs, Countrywide and HSBC.



The Grapevine

Fri, 26 Oct 2018
Robert Gargiulo has joined Morningstar’s New York office as head of business development for the agency’s mortgage-bond rating group. Gargiulo had been working in an analytical role at S&P since 2015. He also has worked at RBS and predecessor Greenwich Capital, along with Bloomberg. At Morningstar, he reports to managing director Brian Vonderhorst.



The Grapevine

Fri, 26 Oct 2018
Morgan Lewis is seeking an experienced attorneys to cover a range of work involving structured products. The recruits would work in New York, Washington or Chicago. Candidates can email resumes to recruiting manager Melissa N. Meyer at melissa.n.meyer@morganlewis.com.



The Grapevine

Fri, 26 Oct 2018
Demica, a London firm that helps clients package their trade receivables into securitizations, has opened a New York office. Leading the outpost is origination head Andrew Holmes, who had been working at Barclays since 2009, most recently as head of trade finance for North America and South America. Demica, originally a data company, has been broadening its business in recent...



The Grapevine

Fri, 26 Oct 2018
Salesman Jesse Maffei joined Barclays’ New York office last week. Maffei most recently worked at StormHarbour Securities from 2016 until this March. His former employers also include RBS, Bear Stearns and Morgan Stanley.



The Grapevine

Fri, 26 Oct 2018
S&P has elevated Alastair Bigley to a senior director post in which he is in charge of advising issuers and buyers of European mortgage bonds on the agency’s rating processes and its views on market developments. The London-based Bigley had been a director at the agency, where he started in 2016. He previously worked at Lloyds Banking, DBRS and...



The Grapevine

Fri, 19 Oct 2018
Deutsche Bank has an opening for a credit officer in its New York office. The recruit would work as an assistant vice president within the bank’s risk-management division, with a focus on advising on exposures it takes as an underwriter of asset- and mortgage-backed bonds. Candidates can apply at db.com by clicking on “careers” and searching for job number...



The Grapevine

Fri, 19 Oct 2018
Correspondent-lending specialist Bela Donine has joined the Anaheim, Calif., office of Carrington Mortgage, where she handles acquisitions of loans that don’t meet the Bureau of Consumer Financial Protection’s “qualified-mortgage” standards. Donine worked at Impac Mortgage since 2016, following stops at Homebridge Financial, Greenlight Loans, MAGI Cos., Guggenheim and Macquarie. Carrington, which was a frequent issuer of...



The Grapevine

Fri, 19 Oct 2018
Stream Asset Management has followed through with plans to launch a hedge fund whose investments include structured products. The Red Bank, N.J., firm started trading its Stream Credit Opportunities Partners this month with $44 million of equity, according to sister publication Hedge Fund Alert. Stream, which also runs an equity fund, changed its name from Pinelands Capital in the past...



The Grapevine

Fri, 19 Oct 2018
Natixis wants to hire an associate for its asset-backed bond underwriting group in New York. The recruit mainly would assemble deals backed by unusual assets. Candidates can email resumes to Natixis recruiting manager Susan Bella at susan.bella@natixis.com



The Grapevine

Fri, 19 Oct 2018
Digital Risk is seeking a business-development specialist with a background in the mortgage market who would pitch the Maitland, Fla., firm’s due-diligence services to loan buyers and originators. For more information, email diligence-services head Sadie Gurley at sadie.gurley@digitalrisk.com.



The Grapevine

Fri, 19 Oct 2018
Randal Johnson has resurfaced in a capital-markets and asset-management role at Shelter Growth Capital, a Stamford, Conn., firm that buys and securitizes residential and commercial mortgages. Johnson was laid off by Deutsche Bank in July from his post as a managing director in charge of banking for deals backed by marketplace-originated personal and small-business loans. He had started at the bank in 2005 with a focus on mortgage finance. Before...



The Grapevine

Fri, 19 Oct 2018
Cass Tokarski is leaving his New York post as co-head of Cantor Fitzgerald’s structured-product desk, with one source suggesting that he is exiting the securitization business altogether. Tokarski joined Cantor in 2014 from RBS. He also has spent time at UBS and Goldman Sachs. His exit comes amid an apparent restructuring of the securitization team at Cantor, which has been hiring aggressively over the past year but more recently has seen a...



The Grapevine

Fri, 19 Oct 2018
Mortgage-bond specialist Mayur Madkaikar landed at New York hedge fund operator Millennium Management last week as a portfolio manager. Madkaikar had been working at Structured Portfolio Management since 2016. He served two stints at Citadel before that, separated by some time at Carrington Capital. He also counts Lehman Brothers as a former employer.



The Grapevine

Fri, 19 Oct 2018
Dell is seeking a corporate counsel to help support its capital-markets operations, including its equipment-lease securitization program. The recruit would be stationed in Round Rock, Texas. Dell is focusing on candidates with at least eight years of experience. The computer maker has completed two securitizations totaling $1.7 billion this year. For more information, click on “careers” at dell.com and search for job number...



IMN Assembles Asia Players

Fri, 19 Oct 2018
Information Management Network is anticipating that some 600 market professionals will attend a structured-finance conference it is hosting in Hong Kong.The “Asian Structured Credit Summit,” scheduled for Oct. 23-24 at the JW Marriott hotel, is geared largely toward U.S. issuers that want to distribute their deals among insurers, private equity firms and other investors in China.The agenda spans asset classes, with an emphasis on...



CLO Asset Quality Remains Solid

Fri, 19 Oct 2018
The quality of loans underpinning U.S. collateralized loan obligations issued after the global financial crisis held steady in August.The median weighted average rating factor, a key indicator of borrower health, improved marginally, while median defaults among the collateral pools remained at zero, according to Moody’s. But holdings of loans rated “Caa1” or lower ticked up 3 bp to a median of 3.7% of outstanding loan balances....



Small-Business Deal In the Pipeline

Fri, 19 Oct 2018
Small-business lender Credibly is preparing its first securitization.The $200 million offering is expected to hit the market in the coming weeks with SunTrust running the books. Kroll will rate the deal.Credibly writes its loans online, offering business-expansion and working capital financing of up to $250,000 and merchant cash advances up to $150,000. The accounts carry terms of 6-17 months, with monthly factor rates starting at 1.15.In July,...



TIAA Tees Up Jumbo MBS Deal

Fri, 19 Oct 2018
TIAA is working on another securitization of prime-quality jumbo mortgages.An offering of perhaps $350 million could price as soon as next week. The collateral pool encompasses 489 loans originated by online lender EverBank, which TIAA purchased last year and folded into a new unit called TIAA Bank.TIAA issued its debut jumbo-mortgage deal on Feb. 8, when it sold $381.5 million of bonds via EverBank Mortgage Loan Trust. Then, on June 21, TIAA...



New Life for RV Loan Offerings

Fri, 19 Oct 2018
Securitizations of recreational-vehicle loans are set for a comeback.Lenders including Mountain America Credit Union, SouthEast Bank and USAA have explored the possibility of conducting such offerings — the last of which took place in 2008. Bankers also have approached rating-agency officials and investors in recent weeks to discuss the plans.Early indications are that the offerings, totaling $100 million to $300 million apiece, could start...



White House Seeks FHFA Action

Fri, 19 Oct 2018
The idea of scaling back Fannie Mae and Freddie Mac without legislative approval is gaining traction.The Trump Administration floated the concept a few months ago as an option should Democrats take control of Congress in the November elections, suggesting that the Federal Housing Finance Agency could pursue such action on its own. Now comes word that White House officials are favoring that approach no matter what happens at the polls.The changes...



CLO Dealers Pushing Europe Sales

Fri, 19 Oct 2018
Collateralized loan obligation dealers are urging issuers in the U.S. to structure more of their deals so that they comply with Europe’s risk-retention rule.So far, however, they are finding little cooperation.The dealers are aiming to reverse a trend that developed after a U.S. Appeals Court panel ruled in February that CLOs should be exempt from the Dodd-Frank Act’s risk-retention rule. No longer bound by that measure, many issuers...



Bill Sparks Talk of Airport-Receivable Bonds

Fri, 19 Oct 2018
Securitization could help finance the privatization of airports across the U.S.A bill signed into law on Oct. 5 by President Trump that reauthorizes funding for the Federal Aviation Administration includes a component that opens every airport in the country to partial privatization. Previously, only 10 airports were eligible.The idea is to bring in private-sector capital for improvements and new construction. The businesses that might pursue such...



Kondaur Founder Starting Anew

Fri, 19 Oct 2018
Longtime subprime-mortgage professional Jon Daurio is setting up a new origination business that would fund itself through securitization.Daurio, best known as the founder of Kondaur Capital, appears to be close to locking in startup backing for the operation. He is aiming for a first-quarter launch. Discussions already are under way with rating-agency officials about the possibility of conducting securitizations.Daurio would run the business...



Broker Taps Market Vet for Underwriting Role

Fri, 19 Oct 2018
Rob Riviere, a securitization pioneer who helped structure the first student-loan and subprime auto-loan deals, has resurfaced at Heritage Financial.Riviere has been tasked with building a structured-finance trading and underwriting operation in the vein of Riviere Securities, an investment-banking firm he started. To support the effort, Heritage also has hired former Riviere Securities executive Larry Bowman.Riviere Securities was known for...



Auriga, NatAlliance Discuss Joining Forces

Fri, 19 Oct 2018
Broker-dealers Auriga USA and NatAlliance Securities are negotiating a merger.The discussions have reached an advanced stage in recent months, with the two firms already seeking approval from Finra to operate under the NatAlliance name. NatAlliance’s leaders apparently would own about two-thirds of the combined business, with Auriga’s partners holding the rest.Auriga’s employees would remain in the firm’s New York...



Brean Negotiating Hunt Financial Marriage

Fri, 12 Oct 2018
Broker-dealer Brean Capital is in talks to merge with Hunt Financial Securities.Word on the street is that the two operations have been negotiating for months and could finalize an agreement as early as next week, presumably with Brean absorbing Hunt Financial’s operations. While some layoffs are possible, a source described the businesses as largely complementary.Brean’s core businesses include sales, trading and investment-banking...



Novel Student-Loan Program In Development

Fri, 12 Oct 2018
Education lender Funding University is planning to issue asset-backed bonds, with longtime structured-finance professional Jeffrey Nabi leading the effort.The Atlanta operation, which differentiates itself from competitors by lending to undergraduates without co-signers, aims to complete its first securitization in the coming year. The offering would total perhaps $200 million, with routine transactions to follow.Nabi will meet with banks in the...



CLO Refis Swing Back Toward Short Terms

Fri, 12 Oct 2018
Collateralized loan obligation issuers are suddenly favoring short-term refinancings.Issuers had for months been leaning away from those arrangements, in which outstanding bonds are assigned new terms that include reinvestment periods of up to two-and-a-half years. Instead, the operations gravitated toward so-called reissues in which they create new bonds with reinvestment windows of about five years.But funding costs have fallen for the...



MBS Fund Keeping Ahead of Market

Fri, 12 Oct 2018
Garrison Point Capital has been tweaking the strategy of a rapidly growing mutual fund that mainly buys mortgage bonds.The firm, in its role as subadvisor for AlphaCentric Advisors’ AlphaCentric Income Opportunities Fund, mainly has been purchasing home-loan paper issued before the credit crisis. But as those products have become more scarce, it recently broadened its scope.Garrison Point has been buying more risk-transfer bonds issued by...



Utilities Considering Cat-Bond Sales

Fri, 12 Oct 2018
More power and gas companies are looking at the possibility of issuing catastrophe bonds following a first-of-its kind offering from Pacific Gas & Electric.Sources said Florida Power & Light and Southern California Edison are among the utilities eyeing cat-bond offerings as a way to transfer the risk of infrastructure damage from wildfires and floods — perils seen as increasingly likely due to climate change.“Utility companies are an...



Galton Bumps Up Offering Size

Fri, 12 Oct 2018
Galton Capital is preparing is largest jumbo-mortgage securitization to date.The $457.9 million deal is expected to hit the market in the next week. Many of its underlying loans don’t meet the Bureau of Consumer Financial Protection’s “qualified-mortgage” standards.New York-based Galton previously completed a $254 million deal in March 2017 with Citigroup running the books and a $316.9 million offering this January, via...



Flagstar to Offer Floating-Rate MBS

Fri, 12 Oct 2018
Flagstar Bank is adding a floating-rate component to a home-loan securitization that’s about to hit the market.The deal, totaling perhaps $300 million, already was expected to feature an unusual collateral pool combining subprime jumbo mortgages and agency-eligible loans on single-family investment properties. Now comes word that the offering will include both fixed- and floating-rate notes.The last time investors got a crack at newly...



Buyers Impatient Over Aircraft Deals

Fri, 12 Oct 2018
Investors are pressuring issuers of aircraft-lease bonds to bring their offerings to market faster.The discussions revolve around a prevailing timeframe of 8-10 weeks to structure and distribute a deal in the asset class. With demand running high but supply recently dropping off, the hope is that the process could come more in line with the 3-4 weeks that is the standard for mainstream offering types.Buysiders approached issuers and underwriters...



New Penn Boosts LoanScorecard Tool

Fri, 12 Oct 2018
New Penn Financial is expanding its use of technology that helps it buy home loans that don’t meet the Bureau of Consumer Financial Protection’s “qualified-mortgage” standards.The web-based tool, developed by financial-technology firm LoanScorecard, allows mortgage companies to quickly determine whether prospective borrower accounts would meet their underwriting standards. New Penn, which has been using the program...



Subprime Borrowers Fall Behind

Fri, 12 Oct 2018
Delinquencies among securitized pools of subprime auto loans continue to revert toward record levels.According to an index maintained by Fitch, the volume of past-due subprime accounts rose 22 bp to 5.11% during the month ended Sept. 15. Delinquencies had reached an all-time high of 5.74% in February before retreating and then climbing again in recent months. Now, even more borrowers are expected to fall behind as they divert cash for yearend...



Shapiro Leaning on SEC Settlement

Fri, 12 Oct 2018
Former Nomura trader Ross Shapiro has again asked that a criminal securities-fraud charge against him be thrown out.Shapiro’s attorneys submitted the request with U.S. District Court in Hartford on Oct. 5. Their reasoning: Just two days earlier, Shapiro settled a similar civil complaint from the SEC in U.S. District Court in New York.That arrangement would appear to satisfy a June order in which the judge overseeing the criminal matter,...



Bloomberg Reviewing Personal Loans

Fri, 12 Oct 2018
Bloomberg has teamed up with analytics firm PeerIQ to assign values to online personal loans.The assessments would be available under an existing service called Bloomberg Valuation, with New York-based PeerIQ supplying the data.PeerIQ already tracks loans from 25 personal-loan originators, including Lending Club, Marlette Funding, Prosper Marketplace and Social Finance. Bloomberg could eventually offer values for securities backed by those...



The Grapevine

Fri, 12 Oct 2018
Ying Shen, who stepped down as head of mortgage-bond research at Deutsche Bank in September, has taken a job at BlackRock. Word has it that Shen will assume a similar role as a managing director at the New York investment giant in the coming weeks, reporting to top mortgage-product researcher Dapeng Hu. Shen had worked in Deutsche’s New York office since 2007, following stops at J.P. Morgan and Goldman...



The Grapevine

Fri, 12 Oct 2018
Collateralized loan obligation researcher Bjarni Torfason has parted ways with Deutsche Bank. Torfason, a vice president, had been stationed in the bank’s New York office since 2012. He previously worked in a banking-evaluation role for Iceland’s parliament, and spent time at Icelandic bank Glitnir and predecessor Islandsbanki.



The Grapevine

Fri, 12 Oct 2018
Mortgage-product specialist Michael Daurio has signed on as a portfolio manager at VWH Capital, opening an Orange, Calif., outpost for the New York fund operator. Daurio previously oversaw loan pricing and risk modeling as head of capital markets at Kondaur Capital, where he worked since 2008. VWH, led by Vivien Huang, invests in securitized instruments, along with a mix of distressed credit products and whole...



The Grapevine

Fri, 12 Oct 2018
Alan Johannsen resurfaced last week in BOK Financial’s Tulsa, Okla., office with a focus on structured-product sales. Johannsen had been working in a trading role at Societe Generale from 2015 until a few months ago, having arrived at the bank in 2015 after stops at KGS-Alpha, RBS, Bank of America and Bank One. BOK, the broker-dealer arm of Bank of Oklahoma, recently began branching into asset- and mortgage-backed...



The Grapevine

Fri, 12 Oct 2018
Goldman Sachs has added a structured-product risk and valuation analyst to its staff. As a member of the bank’s Winnetka, Ill., office, Corissa DeRose works with an asset-management group that helps oversee purchases and trades of mortgage bonds and whole loans. DeRose had been employed at HSBC since 2007, most recently as part of a group that is unwinding the bank’s illiquid holdings. She also has spent time at Opus Capital and...



The Grapevine

Fri, 12 Oct 2018
Roy Park joined Guggenheim’s Santa Monica, Calif., office in September as a risk analyst focused on the company’s structured-product investments. Park had been monitoring performance indicators for mortgage products at investment firm Wedgewood since 2017, following stops at Hudson Advisors, Mortgage Industry Advisory, Calpers, Credit Suisse, Washington Mutual and GE...



The Grapevine

Fri, 12 Oct 2018
James Zheng has joined MUFG’s asset-backed securities underwriting team in a structuring and origination role. Zheng had been working in a similar capacity at Natixis since 2016, and before that was at Deutsche Bank and Morgan Stanley.



The Grapevine

Fri, 12 Oct 2018
Morningstar is seeking a vice president or senior vice president to analyze asset-backed securities and collateralized loan obligations in its New York office. Candidates must have at least five years of experience. The recruit would report to asset-backed bond rating head Rohit Bharill. Applicants can email resumes to Bharill at rohit.bharill@morningstar.com.



The Grapevine

Fri, 12 Oct 2018
Trustmoore, which has been seeking to expand its corporate-trust and administrative functions in Europe’s structured-finance market, brought in Huub Mourits last week as head of its capital-markets practice. Mourits is stationed in Amsterdam. He most recently led a group that helped clients establish and run collateralized loan obligation issuing vehicles at TMF Group, which he joined in 2001 from NIBC...



The Grapevine

Fri, 12 Oct 2018
Christopher Esposito landed a contract in September to assign values to structured products for New York hedge fund operator Millennium Management. Esposito has been offering himself as a financial consultant since May, when he left his post as a managing director on a Duff & Phelps team that advises holders of structured products and other complex assets. He had arrived there in 2016, following stops at FirstKey Mortgage and Deloitte, where he...



Market Losing Momentum in Final Stretch

Fri, 05 Oct 2018
Structured-product issuance slowed during the third quarter.The year-to-date volume of new asset-backed bonds, collateralized loan obligations, residential mortgage securities and commercial mortgage paper sold worldwide totaled $632.5 billion on Sept. 30. That marked a 14% increase from $554 billion a year earlier, according to Asset-Backed Alert’s ABS Database.At $186.4 billion, however, the volume of deals completed during the third...



PHEAA Returns as Private Education Lender

Fri, 05 Oct 2018
Amid a shift in its lending strategy, the Pennsylvania Higher Education Assistance Agency is planning a return to the asset-backed bond market.The Harrisburg, Pa., operation’s issuance outlook is tied to its intention to begin writing private student loans, with a pilot program set to launch in January and a full-fledged business starting for the 2019-2020 school year. Origination volume is expected to build quickly, with an initial...



BofA Sale Points to Shift in MBS Sentiment

Fri, 05 Oct 2018
The sale of a mortgage-bond portfolio by Bank of America could point to an increased willingness by large banks to issue new deals in the sector.The thinking is that the offering, encompassing $1.8 billion of securities from issuers including Countrywide, Deutsche Bank and Lehman Brothers, signals that BofA wants to lessen its mortgage exposure. Another way to accomplish that would be through securitizations of whole loans.“It could be part...



Former Wells Execs Open Shop

Fri, 05 Oct 2018
Derrick Land and Travis Masters, who worked together at Wells Fargo and then Man Group, have started an investment business focused on fix-and-flip loans.Their Charlotte firm, Blue Cypress Capital, opened on Sept. 27, just days after Land and Masters left Man. They joined the London hedge fund manager in January 2017 via its acquisition of Aalto Invest, where they started in 2015 after leaving Wells.Their vision for Blue Cypress is two-fold. The...



Banks Pitching Swaps to CLO Shops

Fri, 05 Oct 2018
With investor demand for leveraged loans running high, banks are stepping up efforts to sell synthetic financing to collateralized loan obligation issuers.Rather than funding loan purchases through CLOs, which lock up capital for years at a time, the banks are offering exposures to leveraged loans via total-return swaps. Those instruments allow an asset manager or separate-account client to pocket the interest payments and capital gains from a...



Foursight Picks Up Pace of Issuance

Fri, 05 Oct 2018
Auto lender Foursight Capital is getting ready to tap the asset-backed bond market for the second time this year.The planned offering, backed by a mix of prime-quality and subprime loans, is expected to hit the market in the next few weeks with a face value of about $250 million. J.P. Morgan is running the books.Since entering the market in 2014, Foursight has been good for one securitization per year. The fact that it is preparing its second...



Buyers Drawn Away From New CLOs

Fri, 05 Oct 2018
A shift in investor demand is contributing to a reduction in the volume of new collateralized loan obligations.The situation is the latest to stem from an ongoing trend in which demand for fresh offerings has been dictated by refinancing activity. Most recently, managers cut back on short-term refinancings in which the terms of their deals are reset. Instead, they began conducting more long-term exchanges in which they reissue the transactions...



Losses Pile Up for Personal Loans

Fri, 05 Oct 2018
Performance indicators for personal loans written to the strongest borrowers worsened again in September.According to an index maintained by Kroll, annualized losses among so-called Tier 1 accounts rose 38 bp for the month to 4.98% — continuing a climb from 3.74% in July. Delinquencies also rose, by 10 bp to 1.19%. Tier 1 loans encompass accounts from Marlette Funding and Social Finance whose borrowers have credits scores of 710-740. Tier 3...



More Backing for China Tech Shop

Fri, 05 Oct 2018
A technology company that caters to consumer lenders in China is continuing to expand.In a second round of private equity funding, WeShare on Sept. 30 raised $90 million from a group including Bertelsmann Asia Investment, CCB Trust, Citic Capital, DT Capital, Huaxing Growth Capital, ICBCI, Loyal Valley Capital, Mangrove Capital, Tencent Holdings and Welight Capital.Hong Kong-based WeShare plans to use the capital, in part, to increase its...



The Grapevine

Fri, 05 Oct 2018
Guggenheim has hired two collateralized loan obligation heavyweights. Adrian Radulescu joined the bank’s New York office this week as a managing director handling CLO originations, with Ervin Pilku set to arrive soon as head of trading in the sector. Radulescu most recently co-headed the CLO-origination team at Barclays, where he worked from 2014 to this June. He also has spent time at Lehman Brothers, SecondMarket, Credit Suisse, Donaldson...



The Grapevine

Fri, 05 Oct 2018
Salesman Michael Romaszka is no longer employed at Credit Suisse. Romaszka, who covered all types of structured products, had joined the bank’s New York office in 2013 from J.P. Morgan. He also has worked at Goldman Sachs and PricewaterhouseCoopers. His plans couldn’t be learned.



The Grapevine

Fri, 05 Oct 2018
Diana Moreno has joined Sidley Austin’s New York office as an associate focusing on asset-and mortgage backed securities. Moreno had been working in a dual role as an attorney and rating analyst at Moody’s, where she started in 2012. She also has spent time at Tower Legal, Thacher Proffitt and Cleary Gottlieb.



The Grapevine

Fri, 05 Oct 2018
Salesman Tim Dukovich started in Morgan Stanley’s New York office in recent weeks. Dukovich had been a vice president at Deutsche Bank, where he worked since 2009.



The Grapevine

Fri, 05 Oct 2018
Sales-and-trading specialist Bharath Rajamani will leave the London office of brokerage firm HPC Investment in the coming weeks to work outside the structured-finance industry. Rajamani’s work at HPC encompassed the mezzanine and equity pieces of asset-backed securities, mortgage bonds and collateralized loan obligations, along with whole loans. He also has worked at interdealer broker Tradition, and at ICP Capital and GE Capital. His new...



The Grapevine

Fri, 05 Oct 2018
Mortgage-evaluation firm New Diligence Advisors has added a business-development specialist to its Washington office. Suzanne Singer, a senior vice president, arrived in September with a focus on expanding the operation’s clientele under managing director Ann Gibbons. Singer had been a senior managing director at Clayton Holdings since 2015. Her former employers also include Litigation Guard, Auction.com, Actualize Consulting, Wingspan...



The Grapevine

Fri, 05 Oct 2018
Shipping-container lease company Textainer elevated Michael Chan from senior vice president to chief financial officer on Sept. 30, filling a position that opened with the recent exit of Hilliard Terry. Chan has served two stints at the Hackensack, N.J., operation — initially establishing its asset-backed bond program as controller from 1994 to 2006 and more recently helping to maintain those deals as a member of its finance department...



The Grapevine

Fri, 05 Oct 2018
BNY Mellon has transferred managing director Rob Wagstaff to Sydney to help lead an effort to win more trustee assignments on structured-finance transactions in Australia. Wagstaff, who joined the bank in 2006 from J.P. Morgan, had been handing trust-services sales in Europe, the Middle East and Africa from London. He also has worked at Perpetual. At BNY, Wagstaff reports to Kenneth Cheong, who heads business development for the bank’s...



The Grapevine

Fri, 05 Oct 2018
Carlyle Group has added a data analyst to its credit-product investment group, whose $36 billion portfolio includes positions in collateralized loan obligations and other structured credit products. Yuan Li, an associate, joined the firm’s New York office in September. She had been employed at DBRS since 2013 with a focus on mortgage bonds.



STS Adjustments Dampen Europe Outlook

Fri, 28 Sep 2018
A consensus is forming that Europe’s new structured-finance regulations will cause a near-term market dislocation.The outlook reflects a belief that the rules, centered around a designation for “simple, transparent and standardized” securities, will make it harder for banks to own certain securitized products. At worst, industry participants envision a scenario in which dealflow would shrink sharply.At best, they say, spreads...



Subprime Credit-Card Deals In the Pipeline

Fri, 28 Sep 2018
Subprime credit-card lenders Credit One and Fortiva Financial are preparing their first securitizations.Las Vegas-based Credit One is working on an offering with an estimated size of $500 million that could hit the market in early 2019. From there, it could routinely float a couple of transactions each year.In preparation for the program, Credit One officials have been meeting with bankers and rating-agency officials in recent months.As for...



Goldman Readying Jumbo-Mortgage Deals

Fri, 28 Sep 2018
Goldman Sachs is back in the picture as an issuer of jumbo-mortgage bonds, with a new whole-loan trader on board.After an absence of several years, the bank is aiming for the first quarter of 2019 to float such an offering. Routine transactions would follow.Word of the effort surfaced with the Sept. 4 arrival of Joshua Banschick, who had been working at J.P. Morgan since 2008 — most recently as an executive director on the bank’s...



Flagstar Expands Mortgage Repertoire

Fri, 28 Sep 2018
Flagstar Bank is about to start securitizing jumbo mortgages written to home buyers with spotty credit histories.The Troy, Mich., lender is expected to issue its first batch of bonds backed by the loans in the coming weeks. Instead of conducting a stand-alone offering, however, it likely would bundle the receivables into the collateral pool for a $300 million-plus transaction underpinned predominantly by agency-eligible mortgages on single-family...



ETF Operators Eye Active Vehicles

Fri, 28 Sep 2018
More investment firms are preparing exchange-traded funds encompassing actively managed portfolios of mortgage bonds.BlackRock, Barclays and Vanguard are among the shops developing such offerings, each with a projected launch date by mid-2019. They would join Janus Henderson, which on Sept. 12 started a first-of-its kind vehicle called Janus Henderson Mortgage-Backed Securities ETF.The Barclays and Vanguard ETFs could invest in bonds backed by...



AIG Rejoining Ranks of CLO Issuers

Fri, 28 Sep 2018
AIG is preparing to issue a collateralized loan obligation via its recently acquired Covenant Credit unit, marking the insurance giant’s first CLO since before the global financial crisis.The Charlotte-based Covenant Credit team has begun buying leveraged loans via a warehouse line from an unidentified bank. The CLO is expected to hit the market late in the fourth quarter or early next year.“Given the large number of deals and the...



AmeriHome Maps Issuance Routine

Fri, 28 Sep 2018
AmeriHome Mortgage is developing a jumbo-mortgage securitization program.A debut offering is expected to hit the market next year. After that, AmeriHome would be good for 2-4 deals annually.The Woodland Hills, Calif., company is originating $30 million to $40 million of jumbo mortgages per month via a network of 500 correspondent lenders.The AmeriHome name has been around for 30 years, but the current business took shape in 2014 when its former...



Lender Pools Refinanced FFELP Loans

Fri, 28 Sep 2018
Education Loan Finance is preparing another bond offering backed by refinanced government-guaranteed student loans.The offering, expected to weigh in around $200 million, likely will hit the market early next year. It would be backed by loans the Knoxville, Tenn., company wrote to borrowers weighed down by debt originated under the U.S. Department of Education’s now-unwinding Federal Family Education Loan Program. The refinanced credits...



S&P Finds Heavier Reliance on ABS

Fri, 28 Sep 2018
A surge of new issuance has reversed a long-running decline in the percentage of consumer receivables financed through the asset-backed bond market.Prior to the financial crisis, securitization pools contained 25-40% of total outstanding U.S. auto loans, credit-card balances, mortgages and student loans. However, those numbers began ticking down in the years before the 2007-2008 market crash, then fell sharply in the aftermath.But the latest data...



SEC Rethinks Registration Tactics

Fri, 28 Sep 2018
The SEC is reconsidering how it might convince more mortgage companies to register their securitization vehicles.Frustrated by a lack of such filings, representatives from the agency recently huddled to discuss policy changes that might encourage more participation from issuers. They also have been talking to industry participants about the matter.At issue is the SEC’s 2015 update to its Regulation AB disclosure rules. So far, only Redwood...



REGULATORY ROUNDUP

Fri, 28 Sep 2018
US Environment Favors Private Issuers Over Mortgage AgenciesThe regulatory outlook in the U.S. is becoming increasingly friendly to securitization, while industry participants in Europe prepare for a possible disruption.In a move that could make more business available to private-label mortgage lenders, the Trump Administration is pushing to privatize Fannie Mae and Freddie Mac. President Trump also is considering a replacement for Federal...



REGULATORY ROUNDUP

Fri, 28 Sep 2018
Mortgage Agencies — CongressThe Trump Administration laid out its vision for the futures of Fannie Mae and Freddie Mac in a June 21 plan under which the agencies would be privatized and taken out of government conservatorship. Responsibility for affordable-housing efforts would be tasked to HUD, while a yet-to-be-named entity would oversee mortgage trading. Such an undertaking would in some ways mirror a January recommendation from the...



REGULATORY ROUNDUP

Fri, 28 Sep 2018
STS Rules — European RegulatorsThe European Securities and Markets Authority isn’t expected to release final implementation guidelines for Europe’s new securitization rules until December, months later than expected (see article on Page 1). That’s despite the fact that the package, built around a designation for “simple, transparent and standardized” securities, takes effect Jan. 1. The upshot is that issuers...



REGULATORY ROUNDUP

Fri, 28 Sep 2018
Qualified Mortgages — BCFPThe Bureau of Consumer Financial Protection is looking into whether it should be easier for certain home loans to achieve “qualified-mortgage” status. The agency currently is studying the effects the so-called QM standards have had on various types of lenders, with a final report due Jan. 10. Under the Dodd-Frank Act’s risk-retention rule, qualified mortgages are the only home loans that can be...



REGULATORY ROUNDUP

Fri, 28 Sep 2018
Libor — UK GovernmentIssuers are adjusting to life without Libor. On July 26, Fannie Mae priced a corporate-bond issue benchmarked to the secured overnight financing rate, a Federal Reserve Bank of New York measure of the cost of borrowing against Treasurys. The Fed has recommended that issuers in the U.S. peg their deals to the rate, known as Sofr. In Europe, Lloyds Banking on Sept. 5 completed a corporate-bond deal linked to the Bank of...



REGULATORY ROUNDUP

Fri, 28 Sep 2018
Risk Retention — Fed, SEC, TreasuryAttorneys are still banking on the idea that issuers of asset- and mortgage-backed bonds don’t have to comply with the Dodd-Frank Act’s risk-retention rule. Following a Feb. 9 decision by a U.S. Appeals Court panel that the Federal Reserve and SEC were mistaken in applying the skin-in-the-game requirement to collateralized loan obligations, lawyers rushed to develop structures that would allow...



REGULATORY ROUNDUP

Fri, 28 Sep 2018
Marketplace Lending — TreasuryThe Conference of State Bank Supervisors said on Sept. 12 it intends to file a lawsuit challenging a plan by the Comptroller of the Currency to supervise marketplace-loan originators. The Comptroller said on July 31 that it would begin accepting applications for a so-called fintech charter that would give it that oversight, while allowing the lenders to avoid state-by-state licensing. With the lawsuit looming...



REGULATORY ROUNDUP

Fri, 28 Sep 2018
Student Loans — CongressThe House has yet to vote on a bill called the Promoting Real Opportunity, Success and Prosperity through Higher Education Act that would reduce the amounts certain students could borrow directly from the Department of Education, and thus stimulate production of ready-to-securitize private loans. The proposal would have the greatest effect on graduate students, in the form of annual borrowing caps of $28,500 and a...



REGULATORY ROUNDUP

Fri, 28 Sep 2018
Trade Reporting — FinraThere’s still no word on when Finra will release trade-by-trade details for secondary-market sales of mortgage bonds and collateralized loan obligation notes. Following several delays, the self-regulatory agency was expected to set a date early in 2017. Finra already has been releasing daily aggregate trading data for mortgage bonds and CLOs through its Trade Reporting and Compliance Engine. The additional...



REGULATORY ROUNDUP

Fri, 28 Sep 2018
Volcker Rule — Fed, CFTCComments on a proposal to simplify and clarify the Volcker Rule are due to the Federal Reserve, Commodities Futures Trading Commission, Comptroller of the Currency, SEC and FDIC on Oct. 17. But market participants don’t expect major changes to the measure, and instead anticipate a minor streamlining of market-making controls. Still, banks could save on compliance costs and might see a modest uptick in trading....



REGULATORY ROUNDUP

Fri, 28 Sep 2018
Common Securitization Platform — FHFAThe outlook for the Federal Housing Finance Agency’s Common Securitization Platform remains uncertain. Freddie Mac has been conducting administrative functions for its mortgage-bond offerings through the project since 2016, with Fannie Mae slated to follow suit — and all issuing functions for securitizations of fixed-rate agency loans scheduled to move under its umbrella on June 3, 2019. But...



The Grapevine

Fri, 28 Sep 2018
BNP Paribas has a new head of U.S. structured credit product sales. Deepali Advani started in the bank’s New York office on Sept. 10 as a managing director. She had been employed at Citigroup since 2011, and before that spent time at Deutsche Bank, Barclays, Lehman Brothers and Moody’s.



The Grapevine

Fri, 28 Sep 2018
Former Jefferies executive Peter Melichar resurfaced at GreensLedge this month as a London-based managing director with a focus on structuring collateralized loan and debt obligations. Melichar headed CLO-origination activities at Jefferies from 2015 to 2016, and since then worked as a consultant while starting a furniture-making business and launching a recording studio. Earlier, he spent time at Deutsche Bank, Key Capital, Societe Generale and...



The Grapevine

Fri, 28 Sep 2018
Credit Suisse has laid off New York-based sales specialists Lou Rosenfeldand Darce Swaggert. Rosenfeld, who has worked on Wall Street since the 1980s, ar-rived at the bank in 2014 from investment firm Good Hill Partners. His former employers also include Goldman Sachs, RBS, Bear Stearns and Kidder Peabody. Swaggert was on board since 2001. The cuts came as part of a broader series of staff reductions. CORRECTION (9/28/18): This article has been...



The Grapevine

Fri, 28 Sep 2018
The final headcount for Information Management Network’s “ABS East” conference landed around 4,500, the highest ever for the event. The gathering took place Sept. 23-25 at the Fontainebleau hotel in Miami Beach. The next edition of ABS East is set for September 2019, with IMN considering an October date for 2020.



The Grapevine

Fri, 28 Sep 2018
Ying Shen left his New York post as head of mortgage-bond research at Deutsche Bank last week. Shen’s plans are unknown. He had joined Deutsche in 2007 from J.P. Morgan, and before that was at Goldman Sachs.



The Grapevine

Fri, 28 Sep 2018
Moody’s appointed New York-based associate managing director Shivani Kak as head of new-business development for its U.S. structured-finance group around the beginning of this month. Kak replaces Mark DiRienz, who retired at yearend 2017. Kak joined Moody’s in 2008 as a mortgage-bond analyst and moved into its business-development group in 2011. She also has worked at Lehman Brothers and...



The Grapevine

Fri, 28 Sep 2018
Education lender CommonBond is seeking a general counsel. The New York-based recruit’s duties would include legal and regulatory work associated with the company’s securitization program. CommonBond is focusing on candidates with at least 10 years of experience. To apply, go to commonbond.com and click on “careers.”



The Grapevine

Fri, 28 Sep 2018
Stephanie Lobaccaro has joined Capital One’s financial-institutions group, which offers warehouse lines and other forms of financing to lenders. Lobaccaro, who is stationed in New York, had been an asset-backed bond analyst at Fitch since 2014.



The Grapevine

Fri, 28 Sep 2018
Finitive, which helps arrange funding for so-called alternative lenders, has hired a securitization professional. Guido Geissler had been arranging warehouse lines for lenders at Macquarie Group since 2016. He previously worked at Credit Suisse, Deutsche Bank and Morgan Stanley. New York-based Finitive was launched last year by Eaglewood Capital founder Jon Barlow and former Prospect Capital executive Chris...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Allen & OveryContact: John Hwang212-610-6395David Krischer212-610-6350Benefits of the 2017 hiring of partner Larry Berkovich and four associates from now-dormant CLO practice at Ashurst are reflected in a far stronger standing among firms representing issuers in that market. In the asset-backed bond sector, often pursues issuer assignments on deals involving trade receivables, equipment cashflows and aircraft leases. Also advises Canadian banks,...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Alston & BirdContact: Aimee Cummo212-210-9428Growing deal count bolstered by issuer-counsel assignments on mortgage transactions from AIG and TIAA, plus subprime auto-loan offerings from Consumer Portfolio Services. Also has appeared on transactions backed by personal loans and rental-home cashflows, and is working with new clients in asset classes including jumbo mortgages and small-business loans.NOTE: Complete listing appeared in September 21,...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Arnold & PorterContact: Henry Morriello212-836-7170Securitization practice consists largely of personnel brought over in 2017 merger with Kaye Scholer. Those lawyers benefit from Arnold’s work on consumer-lending and banking regulations. Focus remains on financing for mortgages, corporate loans, personal loans and transportation assets, along with some less-common receivables.NOTE: Complete listing appeared in September 21, 2018, issue of...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Cadwalader WickershamContact: Michael Gambro212-504-6825Stuart Goldstein704-348-5258A major player both among issuer and underwriter counsel. Issuer work is driven by risk-transfer offerings from Freddie Mac, along with CLOs. Underwriter work is more diverse, with CLO work complemented by mandates in asset classes including student loans, whole-business receivables, personal loans, catastrophic risk and renewable-energy cashflows.NOTE: Complete...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Chapman and CutlerContact: Walt Begley312-845-3904Works for both issuers and underwriters, with a focus on mainstream asset-backed securities and CLOs. Biggest source of issuer-counsel work remains credit-card deals from Bank of America and Capital One. Other areas of emphasis include auto and personal loans.NOTE: Complete listing appeared in September 21, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Cleary GottliebContact: Paul St. Lawrence202-974-1782Macey Levington202-974-1972Macey Levington was promoted to counsel as the firm sought to retain assignments from CLO underwriters after the retirement of structured-finance co-head Joyce McCarty. Has handled multiple deals from Barclays, Bank of America, Citigroup, Credit Suisse and Goldman Sachs this year. Also represents BofA as underwriter of CDOs backed by trust-preferred shares, including...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Clifford ChanceContact: Steven Kolyer212-878-8473Robert Villani212-878-8214Bulk of work comes from CLO issuers, where it has expanded into deals backed by commercial mortgages. Clients there have included LoanCore Capital. Also benefitting from increase in mortgage-bond supply, while working to a lesser extent with online personal-loan originators. London team is active in commercial-paper conduits and CLOs, along with credit-card, mortgage and...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Cravath SwaineContact: Nicholas Dorsey212-474-1350Stephen Burns212-474-1146Securitization pointman Joel Herold left to become chief legal counsel at DRI Capital, with Stephen Burns and Nicholas Dorsey assuming his post. Most often represents underwriters of Citibank’s credit-card deals, while advising the bank’s in-house lawyers on issuer-counsel tasks. Has been lining up work from underwriters of drug-royalty and cellular-tower lease...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
DechertContact: Malcolm Dorris212-698-3519Hired senior partners Bruce Bloomingdale and Matt Hays this year, plus several associates. But lost senior CLO attorney Sean Solis and four members of his team to Milbank Tweed. Cindy Williams postponed retirement after Solis’ departure, however, and the firm remains the number-one CLO issuer counsel under the leadership of John Timperio. It also is active as an issuer and underwriter counsel in the...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
DentonsContact: Stephen Kudenholdt212-768-6847Added Milan-based partner Gianpaolo Garofalo in June to head Italian structured-finance practice. In the U.S., emphasizes helping issuers comply with the Dodd-Frank Act’s risk-retention rule, along with the Structured Finance Industry Group’s development of a deal-agent role for mortgage bonds. Partner Stephen Kudenholdt is co-chairman of SFIG’s residential-mortgage committee....



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
DLA PiperContact: Richard Reilly212-335-4910Hired Art Rublin from BlackRock’s structured finance team at yearend 2017, with Eric Peterman arriving from Weil Gotshal in February. Both have CLO expertise, keeping with an area of focus for the firm. A Boston team focused on nontraditional assets, meanwhile, is attempting to broaden into more mainstream deals. That effort is led by Andrew Sroka and David Ridenour, who were elevated to partner...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Greenberg TraurigContact: Mark Michigan212-801-9200Firm, which typically has favored work from issuers of timeshare- and equipment-loan bonds, got into subprime auto-loan deals with representation of Veros Credit a year ago. Aircraft financing is another specialty, as well as deals in Latin America. Added Koh Ueda to Tokyo office in April.NOTE: Complete listing appeared in September 21, 2018, issue of Asset-Backed Alert and can be found on...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Hogan LovellsContact: Emil Arca212-918-3009U.S. team seeks assignments from issuers and underwriters in most asset classes, and covers Latin America. In the States, work includes representation on deals backed by credit-card receivables, small-business loans, marketplace-originated personal loans, cellular-tower receivables and billboard revenues. Also helped T-Mobile set up a commercial-paper conduit program. Headcount excludes London team that...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Hunton AndrewsContact: Mike Nedzbala704-378-4703Tom Hiner212-309-1302April 1 merger between Hunton & Williams and Andrews Kurth boosted the firm’s already-strong standing as an issuer counsel. Also has been hiring, with 11 additions this year. Angus Duncan, who joined Hunton & Williams from Winston & Strawn in January, heads a new European practice from London. Also new is Bob Davis, a Washington tax specialist from Cadwalader Wickersham....



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Katten MuchinContact: Anna-Liza Harris202-625-3635Howie Schickler212-940-6391Followed up October 2017 hiring of mortgage-focused partner Shan Haider by bringing in Paul Kruger in May to focus on deals backed by transportation-related assets, also as a partner. Best known as a leading issuer counsel, with a client list heavy on auto lenders including Ford, General Motors Financial, DriveTime, Exeter Finance and Westlake Services. Also represents...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
King & SpaldingContact: Michael Urschel212-556-2285Terry Novetsky212-556-2328June hiring of counsel Ryan McNaughton from Paul Weiss adds to presence in financing of tax liens, timeshare loans and PACE loans. Matthew Sandiford was promoted to partner. League-table presence mainly reflects underwriter-counsel work on deals backed by whole-business cashflows from issuers including CKE Restaurants and Driven Brands, along with cellular-tower lease...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Kirkland & EllisContact: Jeffrey O’Connor312-862-2597Janette McMahan212-446-4754Most active as an issuer counsel, where it leans heavily on deals backed by auto loans, auto leases and dealer-floorplan loans from clients including Ally Bank, NextGear Capital and World Omni Financial. Equipment-loan deals from John Deere and timeshare-loan offerings from Wyndham also offer repeat business. Underwriter assignments mainly entail floorplan deals...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Kramer LevinContact: Gilbert Liu212-715-9460Rise toward the upper echelon of firms representing underwriters reflects work on PACE-loan deals along with offerings backed by auto loans, equipment leases and timeshare receivables. As issuer counsel, practice emphasizes PACE-loan securitizations from Renovate America.NOTE: Complete listing appeared in September 21, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Latham & WatkinsContact: Kevin Fingeret212-906-1237Focuses on deals backed by unusual cashflows, where assignments in recent years have included representation of issuers and underwriters in asset classes including leases on cellular towers, aircraft, railcars and solar panels, along with royalty payments. Also known as a CLO issuer counsel, with clients this year including Ares Management, DoubleLine Capital and LCM Asset Management. Lawyers...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Locke LordContact: Evan Drutman212-415-8544Evan Drutman took over after Keith Krasney left in November 2017 for Morgan Lewis. Small practice often represents trustees. Also advises represents servicers and rating agencies in mortgage-bond deals. Other work includes whole-loan sales, purchases and financing.NOTE: Complete listing appeared in September 21, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Mayer BrownContact: Stuart Litwin312-701-7373Jon Van Gorp312-701-7091Among the industry’s most active law firms, represents issuers and underwriters across virtually all asset classes. Among prime-quality auto lenders, for example, clients have included Honda, Hyundai, Nissan and Volkswagen. On the subprime-auto side, has represented Flagship Credit Acceptance and Santander Consumer USA. Also has worked on credit-card offerings for Discover...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Milbank TweedContact: Jay Grushkin212-530-5346Most active in representing issuers and underwriters of CLOs, where it got a boost with the May arrival of New York-based partner Sean Solis and four colleagues from Dechert. The CLO team has a West Coast presence led by Deborah Festa, and counts staff in London. Asset-backed bond practice, typically focused on aircraft-lease deals, scored big with an underwriter-counsel assignment on a...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Morgan LewisContact: Reed Auerbach212-309-6200Jeffrey Johnson202-739-5645Routine contender for market-leader status as issuer and underwriter counsel opened a Chicago practice with the August hiring of partners Patrick Lampe and Jeff Weinstein from Sidley Austin. The firm, active in a range of asset classes, plans to add more personnel to the new team as it seeks a deeper presence in deals by subprime auto loans and equipment cashflows. Other key...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Norton RoseContact: Patrick Dolan212-318-3399Andrew Coronios212-408-5506Continued buildup with May addition of Latin America finance specialist George Baptista from Mayer Brown. Issuer-counsel assignments have mixed work on deals backed by renewable-energy receivables with the occasional tax-lien and aircraft-lease offering, while underwriter representation has included project-finance offerings. Structured-product push started with 2017 hiring...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Orrick HerringtonContact: Al Sawyers212-506-5041Alan Knoll212-506-5077Growing deal count has placed the firm just below the upper tier of issuer and underwriter counsel. Among issuer assignments, work includes prime-quality mortgage deals from Redwood Trust, subprime-mortgage offerings from Invictus Capital and credit-card transactions from American Express. As underwriter counsel, major sources of business include AmEx card deals and...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Paul HastingsContact: Scott Faga202-551-1935Eugene Ferrer212-318-6048Top CLO underwriter counsel continues to distance itself from the field following the 2015 recruitment of a team from Ashurst. Has added a few junior lawyers this year. A London team wooed away from Ashurst in 2016 also has been contributing on the CLO side, while picking up mortgage-bond work. A mortgage-focused team in New York, meanwhile, works on warehouse facilities and...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Paul WeissContact: Jordan Yarett212-373-3126Whole-business specialist has picked up issuer-counsel work this year from CKE Restaurants, Coinstar, Driven Brands and Wendy’s, plus assignments on timeshare-loan and tax-lease offerings. Expects to close three more whole-business deals soon. Also advising issuers of bonds backed by cellular-tower leases and PACE loans.NOTE: Complete listing appeared in September 21, 2018, issue of Asset-Backed...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Pillsbury WinthropContact: Mark Lessard212-858-1564Best known for representing underwriters of aircraft-lease deals, with a history of working on utility-fee offerings as well. Additionally continues to pursue work involving railcar leases and drug royalties. Mark Lessard also emphasizes representation of companies in emerging markets that seek to distribute their bonds in the U.S.NOTE: Complete listing appeared in September 21, 2018, issue of...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Schulte RothContact: Paul Watterson212-756-2563Boris Ziser212-756-2140Works solely on CLOs and often-private deals backed by nontraditional assets, where it increasingly has focused on litigation finance. Typically advises issuers, including Barings and Prudential on the CLO side. While its specialized nature can impede the firm’s staffing efforts, it is seeking some experienced associates.NOTE: Complete listing appeared in September 21,...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Seward & KisselContact: Greg Cioffi212-574-1439Pioneer in developing risk-retention financing for CLOs suffered a setback when those deals became exempt from the Dodd-Frank Act’s skin-in-the-game rule. But the firm is using its experience to develop risk-retention vehicles for commercial mortgage bond issuers instead. Also remains active in CLOs, typically as issuer counsel, and works on commercial-paper conduit facilities for AT&T and...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Shearman & SterlingContact: Bjorn Bjerke212-848-7395Most visible this year as underwriter counsel for personal-loan deals from OneMain Financial, complementing work in less-common asset classes including aircraft and equipment leases. Issuer-counsel assignments on Freddie Mac risk-transfer deals, meanwhile, appear to have slowed. Presence includes CLOs and commercial-paper conduits as well.NOTE: Complete listing appeared in September 21, 2018,...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Sidley AustinContact: Edward Fine212-839-5395R.J. Carlson212-839-6730Always among the busiest law firms in the industry. As underwriter counsel, collection of mandates includes subprime auto-loan deals from Santander Consumer USA, prime auto deals from Nissan and Volkswagen and jumbo-mortgage offerings from J.P. Morgan. Offerings backed by equipment leases, rental-home cashflows and student loans also are in the mix. Issuer-counsel work includes...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Simpson ThacherContact: John Schueller212-455-3575As underwriter counsel, appears most often on deals backed by cellular-tower leases and automotive fleet leases, where clients have included bookrunners for Avis Budget, Element Fleet Management and Enterprise. Rental-home deals from Invitation Homes lead issuer-counsel mandates, with the firm also seeking work from CLO managers. Other uncommon assets also are on the menu.NOTE: Complete listing...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Skadden ArpsContact: Andrew Faulkner212-735-2853James Stringfellow212-735-3405Richard Kadlick retired as head of the practice in March. Credit-card deals from Bank of America and Capital One represent the bulk of its underwriter-counsel work. J.P. Morgan’s card offerings headline issuer-counsel practice, complemented by subprime auto-loan offerings from Credit Acceptance Corp. and CLOs. Also has presence in drug-royalty and whole-business...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Stradley RononContact: David Joseph215-564-8090Kevin Kundra215-564-8183Helping fund managers structure warehouse lines that they use to buy a mix of loans, many destined for securitization. Among them are mortgages, student loans and online personal loans. Also working on similar initiatives for mortgage originators. Known for advising investors as well.NOTE: Complete listing appeared in September 21, 2018, issue of Asset-Backed Alert and can be...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Stroock & StroockContact: Richard Fried212-806-6047A long period of contraction appears to be over. The remaining team is highly specialized, pursuing underwriter-counsel assignments on student-loan securitizations.NOTE: Complete listing appeared in September 21, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Law...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
WalkersContact: Philip Paschalides345-814-4675Garry Ferguson353-470-6659Assists issuers of CLOs and other deals in setting up offshore vehicles in the Cayman Islands and Ireland, and parlays that work into representation on those shops’ securitizations. Aircraft finance is another specialty. Also offers directorship services. Promoted Paige Gaston-Thiery to partner and Joanne Ziegler to senior counsel ahead of plans to renew a recent hiring...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Weil GotshalContact: Frank Nocco212-310-8918Issuer-counsel work includes assignments on automotive fleet-lease deals from Hertz, along with personal-loan offerings from Lendmark Financial and OnDeck Capital. As underwriter counsel, Bank of Scotland’s credit-card deals represent a major source of business. Has represented underwriters of personal-loan and insurance-premium bonds as well. Also has a presence in CLOs.NOTE: Complete listing...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
White & CaseContact: David Thatch212-819-8342Has been picking up more underwriter-counsel work on whole-business securitizations. Issuer work has included project-finance and automotive fleet-lease offerings. Fields both types of assignments in the CLO sector as well, working with underwriters including GreensLedge, Morgan Stanley and J.P. Morgan, and issuers including Antares Capital and TPG. Jan. 1 promotion of James Fogarty gave CLO practice...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Willkie FarrContact: David Katz202-303-1149Tom French212-728-8124Underwriters of subprime auto-loan securities from Consumer Portfolio Services and Skopos Financial are its most-frequent clients. Has worked on personal-loan deals as well. Advises on commercial-paper conduit programs and warehouse lines, along with purchases and sales of distressed asset-backed securities.NOTE: Complete listing appeared in September 21, 2018, issue of Asset-Backed...



LISTING: SECURITIZATION LAW FIRMS

Sat, 22 Sep 2018
Winston & StrawnContact: Dan Passage212-294-6710Jeffrey Stern212-294-6710CLOs remain at the center of the firm’s securitization practice. Among other types of deals, fields issuer-counsel assignments on PACE-loan offerings from Renew Financial and Renovate America, along with personal-loan transactions from Prosper Marketplace. As underwriter counsel, PACE-loan and equipment-lease offerings top the list.NOTE: Complete listing appeared in...



Participation Soars for IMN's Miami Summit

Fri, 21 Sep 2018
This year’s “ABS East” conference promises to be the largest ever.Almost 5,000 industry professionals have registered for the event, which Information Management Network is hosting Sept. 23-25 at the Fontainebleau hotel in Miami Beach. And several hundred more are expected to sign up at the door.The outlook marks something of a turnaround for the conference, which encountered a series of setbacks in recent years. The 2017...



Buy-Side Impasse Obscures MBS Outlook

Fri, 21 Sep 2018
Mortgage professionals are raising concerns about whether investors will be able to absorb an influx of private-label securitizations that would accompany a reduction in agency-loan limits.While a growing volume of non-agency mortgage bonds has met with strong demand from mid-size insurers and mutual fund operators in recent years, many of the deepest-pocketed buy-side firms have remained on the sidelines. The reason: Issuers still haven’t...



Europe Funds Blocked From US Investments

Fri, 21 Sep 2018
Preparations are under way for a rule change that would curtail the abilities of mutual fund-like vehicles in Europe to invest in securitizations from the U.S.The measure, part of European Parliament’s ongoing overhaul of its structured-finance regulations, would eliminate a loophole under which so-called UCITS funds currently can buy structured products from issuers that don’t comply with the region’s risk-retention...



Victory Park Opts for Warehouses

Fri, 21 Sep 2018
Victory Park Capital wants industry participants to know it still is involved in the online-lending business.The Chicago firm, an early buyer of marketplace-originated personal loans, completed a series of asset-backed offerings that priced as recently as 2015. But it since has stopped purchasing the accounts while stepping up its activities as a warehouse lender and private equity investor in the space — negating its need to...



Aircraft-Lease Issuance Accelerating

Fri, 21 Sep 2018
Look for an uptick in the volume of aircraft-lease securitizations during the final three months of the year.At least five deals are in the pipeline, including offerings from KKR DVB Aviation Capital, Sprite Aviation and Wings Capital. The expected dealflow compares to nine offerings totaling $5.3 billion that have priced so far this year, according to Asset-Backed Alert’s ABS Database.The pace suggests 2018 could turn out to be the busiest...



Gallatin Plays Up Smaller Size

Fri, 21 Sep 2018
Gallatin Loan Management is laying the groundwork for its next collateralized loan obligation, using its relatively small size as a selling point.The San Juan, Puerto Rico, firm plans to begin talking to potential investors at Information Management Network’s “ABS East” conference on Sept. 23-25 in Miami Beach. It has yet to hire an underwriter. The deal, with an estimated size of $400 million, is expected to price by...



Reverse-Mortgage Deals Seen Rising

Fri, 21 Sep 2018
Sales of bonds backed by private-label reverse mortgages are poised to increase next year.That’s the comclusion of a Sept. 24 report from Kroll, which points to a combination of factors including long-term demographic trends and changes to HUD guidelines for agency lending.To date, most securitizations of reverse mortgages have pooled obligations insured by the FHA. But last October, HUD issued a revised set of policies including a new...



PeerIQ Offering Stress Test

Fri, 21 Sep 2018
PeerIQ is rolling out a stress-testing tool for online personal and small-business loans.The New York company is offering the function as an upgrade to its broader loan-analysis package, at no charge to existing users. The idea is to give loan buyers and originators a better idea of how the accounts would perform in a range of market conditions, including periods of severe disruption.PeerIQ, which hopes the addition will help draw in new clients,...



Deephaven Adds Loan-Buying Tool

Fri, 21 Sep 2018
Deephaven Mortgage has implemented technology that helps it buy home loans that don’t meet the Bureau of Consumer Financial Protection’s “qualified-mortgage” guidelines.The web-based tool, Identi-Fi AUS, allows originators to load applications and get immediate feedback on whether the resulting accounts would meet Deephaven’s purchase criteria. It has been in testing in recent weeks, with an unveiling planned for...



New Diligence Reaches Milestone

Fri, 21 Sep 2018
New Diligence Advisors, a startup owned by Louis Ranieri’s Selene Holdings, has landed its first assignment to review the assets for a rated securitization.The mandate, from Finance of America, calls for the New York operation to handle due-diligence functions for 260 reverse mortgages underpinning a deal that is set to hit the market in the coming days. Kroll and Morningstar are rating the offering.The transaction is the third from Finance...



US CLOs Marginally Weaker

Fri, 21 Sep 2018
Asset quality among U.S. collateralized loan obligations issued after the credit crisis weakened marginally in July.The deal’s weighted average rating factor, a key indicator of borrower health, deteriorated by 11 points to 2820, remaining at the equivalent of a “B2” rating, according to Moody’s. Meanwhile, holdings of loans rated “Caa1” or lower rose 17 bp to a median of 3.7%. Analyst Haoning Ding said the...



Disasters Stoke PACE Financing

Fri, 21 Sep 2018
Efforts by homeowners and businesses to protect their properties from natural disasters could boost originations of Property Assessed Clean Energy loans.In a Sept. 24 report, Morningstar describes a trend in which property owners increasingly are turning to PACE loans to fund improvements that would to minimize damage from hurricanes, earthquakes, floods and fires. The agency predicts that such “natural-disaster retrofitting” will...



Mutual Funds Return to NPL Market

Fri, 21 Sep 2018
Mutual funds have resumed buying bonds backed by nonperforming and reperforming mortgages.The 24 most active structured-product buyers among mutual funds tracked by Wells Fargo combined to buy $400 million of those securities during the second quarter, according to a report from Wells analyst Gary Zhu. That marked the funds’ first purchases in the sector since the second quarter of 2017, when they combined to buy $800 million of the...



Loan-Tracking Tool Gets Update

Fri, 21 Sep 2018
Global Debt Registry has built a new version of a tool that helps warehouse lenders compare receivables that borrowers are pledging as first-loss collateral.The update introduces blockchain technology to Global Debt Registry’s ePledge product, which launched in January. The hope is to convince warehouse lenders across a broader range of loan types to contribute data, thus broadening its appeal as a marketable offering.Currently, Global Debt...



Apple Reduces ABS, MBS Holdings

Fri, 21 Sep 2018
Apple has been absent from the structured-product market this year.That’s the word from bankers and issuers who had come to count on the company’s Braeburn Capital arm to be a routine buyer of asset-backed securities and mortgage bonds. Indeed, the company’s latest earnings report confirms that Braeburn hasn’t done much buying of late.Consider that Braeburn’s holdings of asset-backed bonds and non-agency mortgage...



Leading Law Firms in US Securitization Industry

Fri, 21 Sep 2018
The accompanying listing offers a rundown of the most active law firms in the U.S. securitization business.In most cases, the practices mentioned are the ones that claim top standings in Asset-Backed Alert’s league tables for issuer and underwriter counsel on asset- and mortgage-backed bond deals distributed in the States. Work on collateralized loan obligations also is included.However, some firms are included based on transactions that...



Divergence Develops for Online Loans

Fri, 21 Sep 2018
Avant is teeing up its next personal-loan securitization, as Prosper Marketplace prepares to open a new financing avenue.Avant’s deal, totaling $300 million, is expected to hit the market in the coming weeks with Credit Suisse running the books. Prosper, meanwhile, has two transactions in the pipeline — one with a projected pricing date in October and another that would surface later this year or in early 2019.Beyond that, Prosper is...



The Grapevine

Fri, 21 Sep 2018
Neil McPherson has taken a job as a senior director at S&P’s New York office, where his duties include helping issuers, underwriters and investors better understand the agency’s structured-product rating methods. McPherson had been working at Northwestern Mutual since December 2017 and before that was at housing-data shop Weiss Analytics. He also has spent time at Interactive Data, NewOak Capital and Markit Group. His resume, dating...



The Grapevine

Fri, 21 Sep 2018
T. Rowe Price has hired a collateralized loan obligation investment specialist. Jean Marc Breaux joins the firm’s Baltimore office from Aegon USA, where he worked since 2003 in a variety of roles emphasizing CLOs and collateralized debt obligations. Breaux previously worked at Cambridge Associates. T. Rowe Price invests in a range of structured products through numerous funds. It had $960.6 billion under management on Dec....



The Grapevine

Fri, 21 Sep 2018
Collateralized loan obligation structuring specialist Prabu Soundararajan parted ways with MUFG around the beginning of this month to join Natixis’ New York office. Soundararajan was a director at MUFG, which he joined in May 2017 from Resource America. He also counts Stifel Nicolaus, Penserra Securities, Vantage Capital, and StoneCastle Partners among his former...



The Grapevine

Fri, 21 Sep 2018
Former Guggenheim trader George Mancheril has taken a job as chief financial officer at startup business lender Bespoke Financial in Los Angeles. Mancheril worked at Guggenheim from 2011 until this July, most recently with a focus on trading collateralized loan obligations and non-traditional asset-backed securities. He also has worked at Macquarie and Goldman...



The Grapevine

Fri, 21 Sep 2018
Wilmington Trust is seeking several relationship managers for its structured-finance team. The recruits would work in Minneapolis, Baltimore or Wilmington, Del. The unit of M&T Bank, is focusing on candidates with 5-7 years of experience. To apply, click on “careers” at mtb.com and enter job number 3DK7C, 3DKD4 or 3DKD5.



The Grapevine

Fri, 21 Sep 2018
Fidelity Investments is looking for a mortgage-bond analyst. The recruit would work in Merrimack, N.H. Fidelity is focusing on candidates with 3-5 years of experience. Interested individuals can email resumes to in-house recruiter Allison Wilson at allison.wilson@fmr.com



The Grapevine

Fri, 21 Sep 2018
Flexpoint Ford has added two professionals with structured-finance backgrounds to the staff of its Flexpoint Ford Special Assets Fund. Joon Lee joined the Chicago firm’s New York office from Citigroup’s securitization-structuring team, where he worked since 2014 as an associate focused on transportation-related offerings. Also on board in New York is Jeff Zinn, as head of business development for the fund. Zinn had been heading...



The Grapevine

Fri, 21 Sep 2018
Managing director Gerald Casey left mortgage-data company LoanScorecard in recent weeks to become a whole-loan trader at Dyck-O’Neal, a Dallas-based buyer of distressed home loans. Casey had joined LoanScorecard a year ago from a top mortgage-acquisition post at Lone Star Funds affiliate Hudson Advisors. He also has spent time at Westport Capital, Winter Group and Beacon Hill Asset...



The Grapevine

Fri, 21 Sep 2018
Small-business lender CAN Capital is closing its New York office, prompting chief executive Parris Sanz and chief financial officer Tom Davidson to jump ship. Sanz had joined the Kennesaw, Ga., company in 2004 from Endeavor Pharmaceuticals. Davidson had just arrived in April from Sierra Auto Finance. CAN is looking for replacements.



Buyers Fret Over Subprime-Auto Extensions

Fri, 14 Sep 2018
Buyers of bonds backed by subprime auto loans are expressing nervousness over a trend in which lenders increasingly are granting payment extensions to the deals’ underlying borrowers.The focus is on moves in which companies including Consumer Portfolio Services and General Motors Financial have allowed such deferrals multiple times for the same accounts. The worry is that the maneuvers could be another sign of trouble in the asset class,...



Protective Life Betting Big on New-Issue MBS

Fri, 14 Sep 2018
Protective Life has emerged as one of the most aggressive buyers of newly issued mortgage paper.Since the start of the year, the Birmingham, Ala., insurer has gobbled up nearly $1 billion of private-label securities backed by home loans, some of which don’t meet the Bureau of Consumer Financial Protection’s “qualified-mortgage” standards. That accounts for more than half of all investments in those types of deals among...



Fund Operators Chase Online Loan Portfolios

Fri, 14 Sep 2018
Several large investment firms are setting up funds that would purchase personal loans, student loans and small-business loans from online originators — moves that could reduce the potential for those receivables to be securitized.Franklin Templeton and Neuberger Berman are among the shops forming such vehicles. Pimco, already an active buyer, also is seen a candidate. Several others are testing the waters by building loan portfolios within...



Steadier Supply Seen for CLOs

Fri, 14 Sep 2018
September is shaping up as a busy month for the collateralized loan obligation market, reflecting an issuance pattern that will soon have run its course.The new-deal pipeline for this month is jammed as issuers prepare to price deals just before and immediately after Information Management Network’s “ABS East” conference, which takes place Sept. 23-25 in Miami Beach. But October promises to bring lighter supply.The forecast...



Card Lender Encounters Setback

Fri, 14 Sep 2018
Subprime credit-card lender FS Card has lost its warehouse line, possibly disrupting the operation’s securitization plans.While the exact details remain fuzzy, sources said a combination of factors prompted Keystone Private Equity of San Ramon, Calif., to cancel a $150 million facility it had been supplying.Tricadia Capital apparently has stepped in with a replacement line. But FS temporarily stopped originating new accounts amid the...



Investment-Loan Deal Replicated

Fri, 14 Sep 2018
Flagstar Bank is teeing up its next offering of bonds backed by agency-eligible mortgages on single-family investment properties.The $300 million-plus transaction is expected to hit the market within the next month. Bank of American likely will run the books.The offering would follow a first-of-its-kind transaction in which Flagstar priced $329 million of bonds backed by conforming investment loans on May 18 via J.P. Morgan and Wells Fargo. That...



Subprime Auto Shop Readies Offering

Fri, 14 Sep 2018
Subprime auto lender Veros Credit is preparing its second securitization.An offering of perhaps $150 million is expected to hit the market in the next few weeks, with Deutsche Bank running the books. The deal will carry ratings from Kroll.Veros writes auto loans to borrowers with credit scores of 450-700. The Santa Ana, Calif., firm works with 6,500 auto dealers in 21 states.Veros priced its debut securitization on Oct. 24, 2017, selling $150.1...



Vendors Target Risk-Transfer Investors

Fri, 14 Sep 2018
Data firms DV01 and TheNumber are adding services for buyers of agency risk-transfer securities.New York-based DV01 is aiming for early next year to launch a tool that would help bondholders better view and organize data from Fannie Mae and Freddie Mac. TheNumber is further along with a broader project in which it is taking a big-data approach to analyzing the deals’ underlying receivables on a loan-by-loan basis.TheNumber also touts its...



More Erosion for Subprime Autos

Fri, 14 Sep 2018
Performance indicators among securitized pools of subprime auto loans worsened again during the month ended Aug. 15.According to an index maintained by Fitch, losses within those portfolios rose by 62 bp to an annualized 8.02%. Delinquencies were up 42 bp to 4.89%. Fitch expects a continued rise in losses for subprime loans, already at high levels, as borrowers continue to deplete cash set aside from their tax refunds. Among prime-quality loans,...



The Grapevine

Fri, 14 Sep 2018
Alex Siroky joined Canyon Partners in recent weeks with the task of helping to oversee the Los Angeles firm’s structured-product investments. Siroky had been working in a similar capacity at Athene Asset Management since 2010. He previously was a mortgage-bond trader at Knight Capital and Deutsche Bank. Canyon runs about $20 billion through a mix of vehicles, including a series of collateralized loan...



The Grapevine

Fri, 14 Sep 2018
Canada Pension Plan has added a collateralized loan obligation specialist to its London outpost. Jeppe Gregersen most recently worked from 2010 to 2016 at Apollo Global, overseeing origination activities in Europe for the firm’s CLO program. Gregersen also has worked on the CLO-issuing side at Black Diamond Capital, GSC Partners and J.P. Morgan. It’s unclear if his work at the $366.6 billion Canada Pension will involve investments in...



The Grapevine

Fri, 14 Sep 2018
Mortgage-bond trader Tim Brown started as a senior vice president in Mesirow Financial’s Los Angeles office on Sept. 10. Brown, a member of the firm’s brokerage arm, had been working in a buy-side role at TCW since 2016. His Wall Street career, dating back to 1997, also includes stops at Daiwa Capital, BNP Paribas, RBC, Maxim Group, Countrywide, J.P. Morgan, Donaldson Lufkin & Jenrette and Lehman...



The Grapevine

Fri, 14 Sep 2018
Morningstar added a senior vice president to its mortgage-bond rating unit on Sept. 10. Youriy Koudinov is stationed in New York, reporting to group head Kevin Dwyer. Koudinov previously held a number of high-level posts at Moody’s, where he was employed since 2013. He also has worked at TIAA, Access Industries and Credit Suisse.



The Grapevine

Fri, 14 Sep 2018
Director Laura Spichiger has resigned from Barclays, where she set up warehouse lines for asset-backed bond issuers from New York. Spichiger started this week at Capital One, which has been expanding its warehouse-finance staff. She joined Barclays in 2013 from WestLB.



The Grapevine

Fri, 14 Sep 2018
Buy-side shop AQR Capital has hired a quantitative analyst. Yunlin Zhang had been employed since 2016 at Structured Portfolio Management, which began shutting down in June. He also has spent time at Barclays and IBM. AQR, of Greenwich, Conn., runs $226 billion through a mix of funds.



The Grapevine

Fri, 14 Sep 2018
SunTrust Robinson Humphrey is seeking a collateral analyst for its securitization-underwriting group in New York. The recruit’s duties would include structuring deals, reviewing loan pools and developing cashflow models and reports across a range of consumer and commercial asset classes. He or she would hold the title of analyst. SunTrust is focusing on candidates with at least six years of experience. To apply, click on...



The Grapevine

Fri, 14 Sep 2018
S&P has openings for several structured-finance analysts. The recruits, typically junior personnel with about two years of experience, would be stationed in New York, Chicago, Dallas and Centennial, Colo. The additions would follow an early-2018 move in which S&P eliminated a number of structured-finance positions, including those of several senior...



The Grapevine

Fri, 14 Sep 2018
Salesman Eric Sullivan started on Sept. 10 at Mint Partners, a BCG Partners unit in New York where he is tasked with marketing a wholesale derivatives-trading service. Sullivan had been employed in a structured-product sales role at Odeon Capital since 2013.



The Grapevine

Fri, 14 Sep 2018
The Structured Finance Industry Group has enlisted Milken Institute fellow Ed DeMarco and Ginnie Mae chief executive Michael Bright to speak on government mortgage-agency policy and private-label home-loan securitizations at its “Residential Mortgage Finance Symposium.” Both DeMarco and Bright are viewed as candidates to head the Federal Housing Finance Agency, a position DeMarco held until he was replaced by current director Mel Watt...



SocGen's McGarvey Splits for BNP Paribas

Fri, 07 Sep 2018
Daniel McGarvey has left his job as head of asset-backed securities banking and syndication at Societe Generale to join rival BNP Paribas.McGarvey exited SocGen’s New York office last week, and is scheduled to arrive as a managing director at BNP following a short gardening leave. Indications are that he will play a leading role in efforts by BNP to expand its asset-backed bond origination business in the U.S.That said, it remains to be...



Oakleaf Slashes Headcount as Lawsuits Wane

Fri, 07 Sep 2018
Analytics firm Oakleaf Group has laid off a large portion of its staff amid a reduction in assignments to help holders of troubled mortgage-backed securities pursue legal claims against the deals’ trustees.The Bethesda, Md., operation dismissed an initial wave of technology and due-diligence staffers in May, and more recently followed up by terminating more than a dozen senior personnel. All told, it cut its headcount to about 90 from...



Morgan Lewis Assembling Team in Chicago

Fri, 07 Sep 2018
Morgan Lewis is pushing to establish a large structured-finance presence in Chicago as part of an effort to expand into asset classes it has traditionally overlooked.The firm, whose securitization practice is based in New York, wants to hire at least 10 partners and associates to focus on transactions backed by subprime auto loans and equipment loans and leases, as well as collateralized fund obligations.“We’re expanding the offerings...



Beer-Branded Card Program Brewing

Fri, 07 Sep 2018
O Bee Credit Union is strongly considering the creation of a credit-card securitization program.The Tumwater, Wash., institution has discussed the potential effort with underwriters, rating agencies and attorneys, signaling that it could float an initial deal of $80 million to $100 million by midyear 2019.Expectations are that such a transaction would find strong demand from investors, given a recent lack of diversity in the market for...



Morgan Stanley Targets Online Loans

Fri, 07 Sep 2018
Morgan Stanley Investment Management is preparing a fund that would invest in online loans.The vehicle’s holdings could encompass a range of accounts, including personal loans and small-business loans — some of which it could securitize. It also is expected to consider purchases of other issuers’ online-loan securities.Sources said that as part of the process, Morgan Stanley has sought permission from the SEC to structure the...



PACE Pools See Payment Rush

Fri, 07 Sep 2018
Borrowers are prepaying their Property Assessed Clean Energy loans faster than expected.According to a report that Kroll plans to release on Sept. 10, annual prepayment levels have averaged 15-20% among PACE accounts securitized by Renovate America and Ygrene Energy since mid-2017. The agency had projected prepayments of 8-12% when rating those deals.The faster-than-expected inflows reflect a combination of factors, including refinancing by...



KGS Dovetails With BMO Team

Fri, 07 Sep 2018
The combined structured-product operations of Bank of Montreal and KGS-Alpha Capital could be greater than the sum of its parts.BMO completed its purchase of KGS on Sept. 4, renaming the New York-based broker-dealer BMO Capital. Now, a clearer picture is developing of how the shops’ structured-finance groups could complement each other.While Montreal-based BMO has been expanding as an asset- and mortgage-backed bond underwriter in the U.S.,...



S&P Brings Back Exec for CLO Role

Fri, 07 Sep 2018
S&P has re-hired a former employee to co-head its U.S. collateralized loan obligation rating team.Brian O’Keefe returned to the agency’s New York office this week with the title of co-analytical manager for the group — a role that has him working alongside existing head Jimmy Kobylinski. Both men report to U.S. structured-product rating chief Mark Risi.O’Keefe fills a vacancy created when Kobylinski’s previous...



Losses Jump for Personal Loans

Fri, 07 Sep 2018
Performance indicators worsened in August for securitized pools of personal loans written to the weakest and strongest borrowers.According to an index maintained by Kroll, losses rose 86 bp to an annualized 4.6% among so-called Tier 1 accounts, whose borrowers have credit scores of 710-740. Delinquencies among Tier 1 loans rose 2 bp to 1.09%. The main cause for the deterioration, the agency said, was weakening among deals conducted by Social...



Buyers Reject Dine Brands Deal

Fri, 07 Sep 2018
It could be a while before Dine Brands reattempts a securitization of whole-business cashflows it canceled on Aug. 17.The Glendale, Calif., parent of the Applebee’s and IHOP restaurant chains called off the $1.3 billion transaction after bookrunners Barclays and Credit Suisse were able to find buyers for only about half of the bonds. The talk is that it won’t bring the offering back until 2020.Instead, Dine Brands has expanded a...



End of the Line for Conduent Unit

Fri, 07 Sep 2018
Conduent’s student-loan servicing operation is in its final days.The unit is expected to shut down for good by the end of this month, finalizing an unwinding process that has spanned several years. Already, its servicing book has dwindled to as little as $20 million, a rival said.He added that the remaining loans mostly are less-desirable accounts.The broader business that would become Conduent formed with Xerox’s 2010 purchase of...



Morningstar Expands Servicer Ratings

Fri, 07 Sep 2018
Morningstar is creating a rating classification for servicers of securitized consumer loans.The grades would apply to companies active in areas including auto loans, credit-card accounts, personal loans, solar-power equipment financing and student loans. The first recipient would be First Associates of San Diego.In something of a twist, Morningstar actually rated First Associates a year ago, assigning its top “MOR RV1” grade to the...



The Grapevine

Fri, 07 Sep 2018
SMBC Nikko has a new head of asset-backed bond trading. John Lennon started in the bank’s New York office on Aug. 20, filling a vacancy created by Pat Beranek’s move to Banco Santander in July. Lennon had been working in a similar capacity at MUFG since 2013. He also has spent time at Credit Agricole, UBS, BNP Paribas and J.P. Morgan.



The Grapevine

Fri, 07 Sep 2018
Senior managing director Bill Heskett has resigned from Bank of America’s asset-backed securities origination unit in New York to join Cantor Fitzgerald. Heskett had joined BofA via the bank’s credit-crisis takeover of Merrill Lynch, where he worked since 1994. Cantor has been hiring aggressively since January. Other recruits have included Jim Buccola and Marshall Insley, both from Credit...



The Grapevine

Fri, 07 Sep 2018
Details are emerging about the role Joe D’Urso is playing at Blackstone. As president of a fund-management unit called Blackstone Toro, D’Urso is charged with building up a vehicle that buys mortgages and related bonds — and securitizing the entity’s loan holdings. A debut offering is penciled in for 2019. D’Urso started on Aug. 20 at Toro. He most recently was exploring the launch of a technology firm, following his...



The Grapevine

Fri, 07 Sep 2018
Executive director Eric Shea has left MUFG’s structured-product banking unit in New York. Shea was employed at the bank since 2013. His former roles include a stint as head of warehouse financing for UBS’ asset-backed bond group, along with a high-profile post at Deutsche Bank. He has spent time at Prudential and Credit Suisse as well.



The Grapevine

Fri, 07 Sep 2018
Jing Xie joined Northwestern Mutual’s Milwaukee office in August as a director overseeing investments in nontraditional asset-backed securities. Xie previously was the lead analyst covering securitizations of aircraft, shipping-container and railcar receivables at S&P, where she worked since 2005.



The Grapevine

Fri, 07 Sep 2018
Vice president Katarzyna “Kate” Szalus has left Barclays’ asset-backed securities origination group in New York. Word has it that she is headed to Goldman Sachs. Szalus was employed at Barclays since 2015 with a focus on deals backed by nontraditional assets. She previously spent time at Bank of America and PricewaterhouseCoopers.



The Grapevine

Fri, 07 Sep 2018
Clifford Chance has added a partner to its New York office. James Gouwar starts today with a focus on the tax aspects of structured-finance transactions. He had been employed as a partner at Morgan Lewis since 2014, and before that was at McKee Nelson and Sidley Austin.



The Grapevine

Fri, 07 Sep 2018
Director David Vener left BNP Paribas’ structured-finance banking unit in New York a week ago to take a job at Morgan Stanley. Vener, who joined BNP in 2006, most recently focused on assembling deals backed by mortgages and unusual cashflows. He also put together collateralized loan obligations.



The Grapevine

Fri, 07 Sep 2018
Silicon Ranch has hired a staffer to help arrange structured-finance transactions that would fund its purchases of solar-energy plants. Erick Bauman joined the Nashville company’s New York office in August from a property-acquisition role at Landmark Dividend, which leases land to operators of cellular towers, billboards and wind turbines — and securitizes the resulting cashflows. Bauman started there in March 2017, following stops at...



The Grapevine

Fri, 07 Sep 2018
Bradesco of Sao Paulo, Brazil, has hired a New York-based managing director to oversee its fixed-income unit, whose businesses include sales, trading and syndication of structured products. Ajay Chawdhry had been on gardening leave since exiting his post as head of structured-product sales in North America and South America at Standard Chartered Bank in May. He worked there since 2007, following stops at Deutsche Bank, Transworld and Ernst &...



Barings Lines Up Mortgage-Bond Program

Fri, 17 Aug 2018
Barings is positioning itself as an issuer of home-loan bonds.The MassMutual subsidiary has been aggregating an array of accounts that could back the deals. Among them are loans that don’t meet the Bureau of Consumer Financial Protection’s “qualified-mortgage” guidelines, along with nonperforming and reperforming mortgages, home-equity lines of credit, investor loans, servicing rights and manufactured-housing...



CLO Buyers Defend Key-Man Protections

Fri, 17 Aug 2018
Investors are more closely scrutinizing the “key-man” provisions built into new collateralized loan obligations, in some cases insisting that they be strengthened.At issue are separate trends that have seen increased job hopping among senior CLO professionals and continued sales of management contracts among issuers. Concerned that such changes could affect how their holdings are managed, investors are pushing harder to ensure they...



Investors Tracking Trustee Lawsuit in Ohio

Fri, 17 Aug 2018
A legal battle between Western & Southern Life and BNY Mellon could mark a final opportunity for the holders of troubled structured products to seek damages from trustees.On Oct. 2, the Ohio Court of Appeals in Cincinnati will hear Western & Southern’s appeal of a lower court’s August 2017 dismissal of claims by the insurer that BNY failed to protect it as an investor in 31 Countrywide mortgage securitizations that defaulted during...



Regulator Rethinks "True Sale' Issue

Fri, 17 Aug 2018
The U.S. Comptroller of the Currency is reconsidering its stance on “portfolio risk-transfer” securitizations, with an eye toward granting regulatory capital relief to issuers even when the deals don’t achieve “true sales” of their underlying mortgages.Last year, the Comptroller denied a bid by J.P. Morgan to reduce the amount of capital it held against two risk-transfer deals because the transactions didn’t...



Rare Truck-Loan Deal On the Way

Fri, 17 Aug 2018
Freedom Truck Finance is preparing its first securitization.The offering, backed mainly by subprime truck loans that the Dallas company writes to owner/operators, is scheduled to hit the market in late 2018 or early 2019. It has a projected size of $250 million. Discussions are under way with underwriters and rating agencies.Freedom is seen as a candidate to bring follow-up offerings to market on a routine basis. That would make the company the...



Retailer Pooling Personal Loans

Fri, 17 Aug 2018
Online retailer Purchasing Power is teeing up its next personal-loan securitization.The transaction has an estimated size of $200 million. It is expected to hit the market in the coming months with Credit Suisse running the books.Sources describe the offering as a step toward the creation of a routine issuing program. To that end, Purchasing Power last week began a search for a capital-markets head whose responsibilities would include oversight...



US Ruling on CLOs Felt in Europe

Fri, 17 Aug 2018
The number of U.S. collateralized loan obligations available to European investors has fallen sharply since issuers in the States became exempt from the Dodd-Frank Act’s risk-retention rule.After the Dodd-Frank mandate took effect for CLOs in December 2016, an increasing number of U.S. issuers began marketing deals in Europe. That’s because the rule required issuers to retain 5% stakes in their deals, dovetailing with European Union...



Santander Ups Chrysler Originations

Fri, 17 Aug 2018
Santander Consumer USA is gaining ground in its efforts to finance more buyers of Fiat Chrysler vehicles.According to a quarterly filing with the SEC on July 31, Santander’s Chrysler Capital operation had a 32% penetration level with the automaker during the April-June period. That was up from 28% during the January-March stretch and 19% for the final three months of 2017.Still, Santander is well short of the 65% goal set when it became...



Carvana Mimics Marketplace Lenders

Fri, 17 Aug 2018
Online auto dealer Carvana took an unexpected route for its first securitization.The Tempe, Ariz., company initially was expected to distribute the offering broadly on the open market. But instead, it privately placed all of the notes with a single investor on Aug. 7.In an added twist, the buyer already had purchased the underlying loans from Carvana — only to sell all $236 million of the receivables back and then repurchase them in...



More Losses for Subprime Autos

Fri, 17 Aug 2018
Performance indicators worsened among securitized pools of subprime auto loans during the month ended July 15.According to an index maintained by Fitch, losses within those portfolios grew 64 bp to an annualized 7.4%, remaining within a historically high range that has prevailed since mid-2016. Indeed, losses typically were around 5.8% in 2015 and less than 5% before the credit crisis. Along with continued weakness among accounts that smaller...



Goal Buys ReliaMax Servicing Unit

Fri, 17 Aug 2018
Failed private student loan insurer ReliaMax has sold its servicing business to rival Goal Structured Solutions.The deal took place about a week ago, with ReliaMax’s few remaining staffers moving to Goal but remaining in Sioux Falls, S.D. Goal also gains proprietary technology through the transaction.The sale comes after the South Dakota Division of Insurance declared ReliaMax’s core insurance business insolvent in June and ordered...



Weaker CLO Vintages Exposed

Fri, 17 Aug 2018
Asset quality among U.S. collateralized loan obligations issued since the credit crisis weakened modestly in June.The weighted average rating factor, a key indicator of borrower health, deteriorated by four points to 2812, remaining at the equivalent of a “B2” rating, according to Moody’s. Meanwhile, holdings of loans rated “Caa1” or lower held steady at a median of 3.5%, but pools from certain years weakened. Most...



The Grapevine

Fri, 17 Aug 2018
Pat Beranek started this week as head of the asset-backed bond syndicate desk at Banco Santander in New York. Beranek had been the top asset-backed securities trader at SMBC Nikko from 2016 until this July. He previously spent time at Mischler Financial, RBS, Mizuho and Bank of America.



The Grapevine

Fri, 17 Aug 2018
PNC has added a Charlotte-based origination specialist to its securitization team, whose financing tools include a commercial-paper conduit. Nina Austin, a managing director, arrived in July from Fifth Third Bank. She was employed there since August 2017, and before that was at Bank of America.



The Grapevine

Fri, 17 Aug 2018
Former S&P executive Felix Herrera has resurfaced as a member of Fitch’s credit-policy group, which oversees formulation of the agency’s structured-product rating criteria. Herrera was laid off from his job as a senior credit officer in S&P’s New York office in March. He had joined the agency in 1997 from Fleet Bank.



The Grapevine

Fri, 17 Aug 2018
Judd Deppisch has joined Capital One’s financial-institutions group, which offers warehouse lines and other forms of financing to lenders. Deppisch is stationed in Chicago as a managing director. He had been employed since 2004 as a member of the securitization origination and structuring team at BMO Capital — the former employer of CapOne financial-institutions head Dave Kucera. Deppisch also has worked at Bank...



The Grapevine

Fri, 17 Aug 2018
Separately, Adam Prather joined Capital One’s McLean, Va., office as a structured-product analyst. His exact duties are unclear. Prather previously was working on his own as analytics-focused consultant since 2015, counting CapOne, DV01 and Oakleaf Group among his clients. He also has worked at Solve Advisors, Loews and Bear Stearns.



The Grapevine

Fri, 17 Aug 2018
Jordan Milman, who in December left his job as head trader at hedge fund operator LibreMax Capital, has switched career tracks. Milman this month launched a New York-based data center, called Archer Datacenters, that uses only renewable energy sources. He was among a group of former Deutsche Bank executives, led by Greg Lippmann, who started LibreMax in...



The Grapevine

Fri, 17 Aug 2018
Marathon Asset Management is looking for a collateralized loan obligation structuring specialist. The New York-based recruit also would assist in business development. Marathon is focusing on candidates with at least four years of experience. Marathon has completed 16 collateralized loan and debt obligations totaling $7.7 billion since launching its issuing program in...



The Grapevine

Fri, 17 Aug 2018
Tesla is seeking a financing analyst. The recruit would work in the electric-car maker’s Fremont, Calif., office with a focus on managing its capital-raising programs, including its warehouse lines and asset-backed bond deals. He or she also would handle investor-relations duties. Tesla, which securitizes both auto leases and solar-energy equipment receivables, is considering candidates with 1-3 years of experience. For more information,...



The Grapevine

Fri, 17 Aug 2018
Attorney Joshua Smith left CleanFund Commercial Pace Capital this week. As a senior transaction counsel, Smith helped oversee the Sausalito, Calif., company’s securitizations of loans written to commercial property owners under the Property Assessed Clean Energy program. He had arrived in 2016 from Umpqua Bank. CleanFund priced its most recent securitization on July 25, issuing $103.6 million of bonds with Credit Suisse running the...



The Grapevine

Fri, 17 Aug 2018
Morningstar has hired a quantitative analyst. Qiao Wang, who recently earned a Ph.D. in applied mathematics, started in the firm’s New York office on Aug. 6 reporting to quantitative-research head Olgay Cangur.



Task Force Plans Final Flurry of Settlements

Fri, 10 Aug 2018
The Financial Fraud Enforcement Task Force still has a few mortgage-bond fraud cases to finalize before it disbands, including potential settlements with Nomura and UBS.The interagency group, created in 2010 by President Obama, officially was terminated under a July 11 executive order from President Trump that created a replacement entity called the Task Force on Market Integrity and Consumer Fraud. But its members — encompassing 200...



SFIG Walloped on DC Conference Expenses

Fri, 10 Aug 2018
The Structured Finance Industry Group stands to lose more than $1 million on its canceled “SFIG D.C.” conference.The trade group called off the inaugural event on Aug. 8, citing “time constraints” that prevented industry participants from registering. But it remains obligated for a number of financial commitments.Among them is a block of as many as 800 rooms at the Marriott Wardman Park Hotel in Washington, where the event...



College Ave Lands Education-Finance Vet

Fri, 10 Aug 2018
Marketplace education lender College Ave Student Loans has hired Sharon Asch Gold to head its capital-markets unit.Gold started on July 30, adding instant momentum to a push by the Wilmington, Del., lender to become a routine sponsor of asset-backed bond deals.College Ave’s securitizations so far have been limited to a $160.9 million deal in July 2017 and a $199.3 million transaction this June, both with Barclays as bookrunner. The timing...



Mayer Takes Aim at State Actions

Fri, 10 Aug 2018
Mayer Brown has hired a veteran attorney to better equip it to advise clients who are under pressure from state agencies.Michael McElroy, most recently of First Guaranty Mortgage, will join Mayer’s Washington office on Aug. 13. As a partner within the firm’s financial-services regulatory practice, he will be in charge of the group’s work with nonbank mortgage and consumer lenders — an assignment that will have him dealing...



Lenders Shrug Off Higher Costs

Fri, 10 Aug 2018
Securitizations of online personal loans keep flowing, despite widening spreads on new deals.LendingClub, for example, is working with bookrunner J.P. Morgan on a $300 million offering backed by prime-quality loans. Marlette Funding, Social Finance and Upstart also were undeterred as they brought similar deals to market in the past three weeks.Rising interest rates started to bump up funding costs during the second quarter, reversing two years of...



Blockchain Project Reaches Milestone

Fri, 10 Aug 2018
Figure, a home-loan startup led by Social Finance co-founder Mike Cagney, has originated its first loan using blockchain technology, and soon will begin work on a first-of-its-kind securitization.After testing its system in recent weeks on a single home equity line of credit, the San Francisco company expects to begin originating loans on a commercial scale in the next few months. In preparation, it is talking to several banks in an effort to...



Equipment Lessor Enters Pipeline

Fri, 10 Aug 2018
Equipment-finance company Pawnee Leasing is planning its first asset-backed bond deal.The offering, with an estimated size of $200 million, could hit the market by yearend. Pawnee already has spoken to potential underwriters including Bank of America and J.P. Morgan, along with rating agencies.The Fort Collins, Colo., lender has been funding its receivables in part through a syndicated line of credit led by J.P. Morgan and a secured facility from...



Promontory Offers Loan Verification

Fri, 10 Aug 2018
Promontory Fulfillment Services and Street Solutions are launching a service that they tout as offering faster pre-purchase verification that mortgages meet loan buyers’ guidelines.The two companies already have been testing the web-based service with clients, and could unveil it as early as today. The hope is to build a stronger customer base among mortgage investors, who so far have been slower than originators to adopt such tools.Indeed,...



Synchrony Still Wants Walmart Cards

Fri, 10 Aug 2018
Synchrony Financial hopes to retain control of the credit-card accounts it wrote under a partnership with Walmart.The fate of the receivables has been in question since Walmart said in July that it would shift originations of new store-branded plastic to Capital One. On a July 25 earnings call, Synchrony stated that it would either keep the existing portfolio or sell it to Walmart or CapOne.Now, Synchrony is quietly telling asset-backed bond...



China Lender Seeks Foreign Buyers

Fri, 10 Aug 2018
Industry participants are buzzing about the latest personal-loan securitization from China, pegging it as the first in the asset class to seek broad distribution outside the countryThe 1 billion yuan ($150 million) offering, from online retailer JD.com, was circulating this week with Bank of China as bookrunner. Of particular note was that its 750 million yuan senior class carried an “A+” grade from Fitch.Sources said that’s a...



The Grapevine

Fri, 10 Aug 2018
Jason Kopcak’s destination has come to light. Kopcak, who left his post as an executive director on Nomura’s whole-loan trading desk on July 27, will join Morgan Stanley in September after waiting out a gardening leave. He again will hold the title of executive director, this time with a focus on business development for the bank’s structured-finance group. Kopcak had been at Nomura since 2012. He also has worked at Cantor...



The Grapevine

Fri, 10 Aug 2018
Joe Vaccaro left his post as head of structured-product trading at KeyBank this week, destination unknown. Vaccaro and more than a half-dozen colleagues had arrived in Key’s New York office in 2016 with the mission of expanding its structured-product business. But difficult secondary-market conditions more recently have prompted the bank to pare back, with all but about five of the group’s 20 personnel leaving over the past year....



The Grapevine

Fri, 10 Aug 2018
Another former KeyBank staffer, Jeffrey Tucker, started this week as a salesman at BOK Financial in Stamford, Conn. Tucker had been working on mortgage-bond sales at Key from 2016 to July 2018. That was preceded by a long stop at Credit Suisse, as well as time at Merrill Lynch, PNC and Mellon Financial.



The Grapevine

Fri, 10 Aug 2018
Grant Thornton is seeking a senior associate for its securitization transaction-services unit in New York. The recruit’s duties would include assisting in due-diligence reviews, conducting cashflow-modeling work and interacting with issuers. He or she would report to group head Parkson Young. Grant Thornton is focusing on candidates with 2-5 years of experience. For more information, email Young at...



The Grapevine

Fri, 10 Aug 2018
Salesman Jason Foundakos died this week. Foundakos, 42, had been working since 2017 as a real estate agent at Nest Seekers in Hoboken, N.J. He was an account manager at Interactive Data before that, and helped lead sales and business development for Principia Partners’ structured-product software. He also worked at commercial-paper conduit operator BSN Capital, Deutsche Bank and...



The Grapevine

Fri, 10 Aug 2018
OneMain Financial has an opening on its capital-markets team in Stamford, Conn. The recruit would help assemble the company’s personal-loan securitizations and corporate-debt offerings, and would handle investor-relations work. Candidates can email capital-markets head Ravi Mittal at ravi.mittal@omf.com.



The Grapevine

Fri, 10 Aug 2018
Adam Croskery started a consulting gig this week with London small-business lender Iwoca, with a focus on structured finance. Croskery most recently worked on the securitization-structuring team at Natixis from 2015 until February 2017, when he was caught in a round of layoffs. His previous employers also include Credit Suisse, S&P and Gulf International Bank. Iwoca’s structured-finance plans aren’t...



The Grapevine

Fri, 10 Aug 2018
AmeriSave Mortgage has hired a whole-loan trader. Mary Malloy, an executive vice president in the Atlanta lender’s capital-markets group, most recently worked as a managing director at Stearns Lending from 2009 to this January. She also counts Compass Analytics, New Century Financial, Fremont Investment & Loan, Pacific Republic Mortgage, Tuttle Risk Management, Old Kent Bank, Cole Taylor Bank and Household International as former...



The Grapevine

Fri, 10 Aug 2018
Cross River Bank elevated Geoffrey Kott this month to chief financial officer from head of finance and strategy. The Fort Lee, N.J., bank does not plan to fill his former position. Kott arrived in 2016 from Morgan Stanley, where he headed an asset-finance group. He also has worked at McKee Nelson, Fried Frank and Blake Cassels. His work at Cross River includes tasks related to the bank’s services as an originator of record, warehouse lender...



Wells Dismisses Mortgage-Bond Leadership

Fri, 03 Aug 2018
Wells Fargo has removed the core of its private-label mortgage securitization team.Group heads Susan Valenti and Kirk Meyers were dismissed late last week. Also gone are origination and structuring specialists Burak Cetin, Peter Perna, Andrew Riebe and Edward Yu.As part of Wells’ broader mortgage-finance unit, the group has established a large footprint among underwriters of non-agency mortgage bonds — including deals backed by jumbo...



Trading Seats Vacant as Profits Dwindle

Fri, 03 Aug 2018
The outlook is getting dimmer for senior asset-backed bond traders.The culprit is a long-developing trend in which it has become less profitable to match up buyers and sellers of those securities. That environment recently has led a growing number of traders to view their current jobs as dead ends, prompting them to explore their options.At the same time, industry participants describe a situation in which, as senior traders quit or are let go,...



Sprout Hires Akre for Non-QM Funding Push

Fri, 03 Aug 2018
In a move that could jumpstart its mortgage-bond issuing efforts, Sprout Mortgage has hired David Akre to head its capital-markets unit.Akre, a securitization veteran whose former employers include Five Oaks Investment, New York Mortgage Trust and Thornburg Mortgage, arrived last week with the title of executive vice president. Among his initial tasks: fine tuning Sprout’s conduit operation, which has been slow to produce an initial bond...



Refi Slowdown Weighs on RPLs

Fri, 03 Aug 2018
With fewer homeowners refinancing their mortgages, the values of bonds backed by reperforming loans are falling.Triple-A-rated securities with three-year lives from the asset class were changing hands on the secondary market this week at 84 bp over Libor. That’s the widest level seen since May 17, 2017, when similar paper was trading at 85 bp.Back then, however, spreads were on a tightening trajectory after hitting 100 bp during the first...



Flagstar Considers Heloc Offering

Fri, 03 Aug 2018
Flagstar Bank is taking a hard look at securitizing home-equity lines of credit — a type of receivable that hasn’t backed a new deal in the U.S. since 2007.Sources said the Troy, Mich., lender is talking to underwriters and rating agencies about such an offering. Indications are that a deal of at least $300 million could come by yearend.Flagstar had $667 million of home-equity loans and lines of credit on its books on March 31, up...



Trups Play Picks Up for Hildene

Fri, 03 Aug 2018
Rising interest rates and an improved regulatory climate for smaller banks are lifting the fortunes of Hildene Capital.The Stamford, Conn., firm’s flagship Hildene Credit Opportunities Fund rose 10.1% in the first half, bringing its 12-month return to 22.1%.Hildene specializes in trading and managing collateralized debt obligations backed by trust-preferred securities, a popular financing mechanism for small and mid-size banks prior to the...



Japanese Buyers Enable CLO Refis

Fri, 03 Aug 2018
Several Japanese banks have stepped up their collateralized loan obligation investment activities, to the frustration of some U.S. buyers.Bank of Tokyo-Mitsubishi, Mizuho and Sumitomo Mitsui Banking are among a number of major buyers to have recently expanded the lists of issuers whose deals they will consider. Some smaller institutions also have made similar moves, including Sony Bank.Their purchases have been focused on senior notes.While...



PACE Lenders Call Off Merger Talks

Fri, 03 Aug 2018
Renovate America and Ygrene Energy, the leading issuers of bonds backed by Property Assessed Clean Energy loans, have broken off negotiations about a possible merger.The companies began discussing a deal in the second quarter amid a broad slump in origination volume. Greg Frost, a spokesman for Renovate, confirmed the talks had ended without an agreement.Sources said both companies advised staffers of the decision about two weeks ago.The volume...



Indicators Mixed for Personal Loans

Fri, 03 Aug 2018
Losses worsened in July for securitized pools of personal loans whose underlying borrowers carry credit scores of 680-710. According to an index maintained by Kroll, annualized losses among those “Tier 2” accounts rose 181 bp for the month to 12.1% — with the rise attributable mainly to credits originated by Prosper Marketplace in 2017. The Tier 2 loans, which also include receivables from LendingClub and Upstart, saw 60-day...



IHOP Serving Up Bond Deal

Fri, 03 Aug 2018
Dine Brands is planning its next securitization of whole-business cashflows.The Glendale, Calif., parent of the Applebee’s and IHOP restaurant chains is expected to float the $1.4 billion transaction under Rule 144A this month, pledging licensing fees from franchisees as collateral. Guggenheim is among the banks under consideration to run the books.The transaction would re-fund a two-part securitization totaling $1.3 billion that Dine...



Conflicting Signals for Cards

Fri, 03 Aug 2018
Performance indicators for securitized credit-card accounts were mixed in the second quarter. According to an index maintained by Fitch, charge-offs among pools of U.S. bankcard receivables rose to 3.32%, from 3.01% in the previous quarter — continuing a gradual increase that started in early 2017. Meanwhile, the percentage of accounts more than 60 days delinquent fell by 3 bp to 1.10%. “Although we still see charge-offs trending...



The Grapevine

Fri, 03 Aug 2018
Scott Snell, who resigned from his post as co-head of BlackRock’s collateralized loan obligation-issuing team in July, is headed to Tetragon Credit of New York. Snell’s mission: to oversee a new fund that would invest in the debt pieces of CLOs. He is expected to arrive in late September, after helping to install new leadership at BlackRock. He worked there since 2012, following stops at Oak Hill Advisors, Lehman Brothers and...



The Grapevine

Fri, 03 Aug 2018
Scott Eichel’s role at Barclays may end up being broader than advertised. Officially, Eichel starts in New York on Aug. 6 as head of structured-product sales and trading — a role in which he would help expand the bank’s securitization business alongside top bankers Marty Attea and Edward Ballin. But a source close to Barclays said the institution will seek approval from regulators, possibly the Office of the Comptroller of the...



The Grapevine

Fri, 03 Aug 2018
Stanton Lenahan started this week in the New York office of Raymond James, with a broad structured-product sales mandate. Lenahan most recently worked at ED&F Man, which pulled the plug on structured-product trading unit in March. He had worked there since 2015, following stops at Guggenheim and Citadel Securities.



The Grapevine

Fri, 03 Aug 2018
Alphabet, the parent company of Google, is on the hunt for a portfolio manager to oversee its holdings of asset-backed bonds and non-agency commercial mortgage bonds. The recruit, who would work in Alphabet’s treasury unit in Sunnyvale, Calif., also would handle some commercial-paper investments. Alphabet is focusing on candidates with at least 10 years of experience. The company held $15.3 billion of asset- and mortgage-backed securities...



The Grapevine

Fri, 03 Aug 2018
Arnold & Porter has an opening for a lead collateralized loan obligation attorney in New York. The firm is focusing on candidates with at least four years of experience. Arnold & Porter’s securitization practice is staffed in part by attorneys who arrived via the firm’s 2017 merger with Kaye Scholer. Candidates can email in-house recruiter Kiley Bostick at...



The Grapevine

Fri, 03 Aug 2018
Tribal Capital has added Robert Rogoz to its Chicago office as a managing director focused on renewable-energy financing activities — a role in which he would be involved in plans by the Summit, N.J., brokerage firm to originate and securitize clean-energy equipment loans. Rogoz, who reports to capital-markets head Barry Mohr, most recently worked at Guggenheim from 2011-2016. He also has spent time at Keefe, Bruyette & Woods and...



The Grapevine

Fri, 03 Aug 2018
Common Securitization Solutions is seeking a senior operational specialist to oversee the coordination of the Common Securitization Platform’s various components ahead of the program’s planned launch next year. The operation, a joint venture between Fannie Mae and Freddie Mac, is focusing on candidates with at least 12 years of experience. The recruit would be stationed in Bethesda, Md. The Federal Housing Finance Agency, which...



The Grapevine

Fri, 03 Aug 2018
Fortress Investment is seeking an analyst for a unit that supplies warehouse financing to specialty lenders that fund themselves through securitization, and sometimes buys those clients’ bonds or loans. The recruit would be stationed in New York. To apply, click on “careers” at fortress.com and search for job number 2203.



Long-Term Buyers Eye Short-Dated Bonds

Fri, 27 Jul 2018
A mix of investors are increasing their exposures to the shortest-dated asset-backed bonds.The buyers include corporate treasury programs, public pension systems, mutual fund operators and insurers, most of which typically gravitate toward longer-dated paper. One source pointed to Allstate, Alphabet, Apple, Calpers, MetLife and State Street as being among those that have added to their positions.The buying has been strongest among the A-1 classes...



Credit Suisse Pitching Retention Strategy

Fri, 27 Jul 2018
Credit Suisse is offering to help lenders avoid costs associated with the Dodd-Frank Act’s risk-retention rule by buying their receivables and securitizing them itself.Word of the undertaking adds a twist to a sequence of events that culminated with a June 22 personal-loan securitization in which Credit Suisse stepped in for LoanDepot as sponsor. While the initial talk was that LoanDepot simply had concluded it would be uneconomical to...



Leadership Shakeup Hits BlackRock CLO Unit

Fri, 27 Jul 2018
In a matter of just a few weeks, both co-heads of BlackRock’s U.S. collateralized loan obligation-issuing unit have resigned from the firm.Managing director Scott Snell is expected to remain in BlackRock’s New York office for about two months to help transfer his duties to other staff — including some new recruits. His plans beyond that are unknown.Snell’s resignation comes as the group’s other leader, managing director Adrian Marshall,...



IMN Challenge Speeds SFIG Search

Fri, 27 Jul 2018
The Structured Finance Industry Group is hastening its efforts to hire a new executive director, responding in part to the formation of an investor group by Information Management Network.After forcing out Richard Johns as its leader on June 29, SFIG insiders signaled that they could take several months to find a replacement — with a committee of officers overseeing the trade group in the meantime. But sources said this week that the...



Indian Tribe Entering Market

Fri, 27 Jul 2018
A broker-dealer controlled by a Native American tribe is positioning itself as an issuer and underwriter of asset- and mortgage-backed securities.Tribal Capital, owned by the Morongo Band of Mission Indians, initially would play both issuing and underwriting roles for bonds backed by clean-energy equipment loans that it has been accumulating from other originators. A debut offering could come late this year or in early 2019.The asset pools for...



Saudi Mortgage Bonds Taking Shape

Fri, 27 Jul 2018
Details are emerging about Saudi Real Estate Refinance’s securitization plans.The state-sponsored housing agency is eyeing 2021 for an initial deal, with routine offerings to follow. It would distribute the bonds in the U.S. and elsewhere.The timeline reflects a funding strategy that would start with corporate-bond sales in Saudi Arabia this year. Similar offerings in foreign markets would come next, followed by covered-bond transactions...



Valuation Service Preps for Launch

Fri, 27 Jul 2018
A New York startup is positioning itself to calculate loan values for clients including originators, investors and servicers.Methodical Management is aiming for a September launch. It is currently assembling a staff and preparing its technological tools.Overseeing the operation are Gunes Kulaligil and Greg VanLear, most recently of Houlihan Lokey, and former Angelo, Gordon & Co. executive Manny Malbari. They left their previous jobs in April and...



Listed CLO Fund Enters Pipeline

Fri, 27 Jul 2018
XA Investments is starting another collateralized loan obligation fund.The Chicago firm sought SEC approval to list its closed-end fund, XAI Octagon Credit Trust, on the New York Stock Exchange on July 20 and is waiting to hear back from the regulator — a process that usually takes at least 30 days.Octagon Credit would be responsible for all investment decisions as sub-advisor to the fund. Its holdings would include debt and equity pieces...



Caliber, Invictus Focus on Jumbos

Fri, 27 Jul 2018
Caliber Home Loans is expanding its jumbo-mortgage origination program to include prime-quality loans, which it would securitize.Caliber, a unit of private equity firm Lone Star Funds, recently began writing mortgages with principal balances of up to $2 million to borrowers with credit scores of at least 740. It plans to begin securitizing the credits next year, likely as stand-alone issues.Caliber already is a routine issuer of bonds backed by...



SFIG Weighs Entering CLO Dispute

Fri, 27 Jul 2018
The Structured Finance Industry Group is considering whether to intervene on behalf of Highland Capital in a court case that raises questions about the legal status of collateralized loan obligations.At issue is an ongoing bankruptcy proceeding involving Highland affiliate Acis Capital, which issued seven CLOs from 2013 to 2017. Over the objections of Highland, U.S. Bankruptcy Court Judge Stacey Jernigan on July 10 approved a trustee’s...



Report Buoys Canadian Card Bonds

Fri, 27 Jul 2018
Look for Canadian banks to increase their output of credit-card bonds following a report from Moody’s on a new regulatory framework for shoring up troubled financial institutions.At issue is the Canadian government’s recently adopted Bank Recapitalization, or “bail-in,” protocol for handling severe market shocks. If a bank faces insolvency, regulators including the Bank of Canada, Canadian Department of Finance and the...



Mill Hill Notches Asset Growth

Fri, 27 Jul 2018
David Meneret’s Mill Hill Capital is attracting attention from institutional investors.Since the start of the year, the New York investment shop’s assets have risen to about $200 million, from $150 million — thanks to commitments from pensions and other large investors in the U.S., Europe and Asia. As a rule, institutional investors won’t look at hedge funds that have less than $100 million under management.Hoping to build...



The Grapevine

Fri, 27 Jul 2018
Pat Beranek has left his job as SMBC Nikko’s head of asset-backed bond trading. Beranek’s next move couldn’t be learned. He had joined the bank’s New York office in 2016 from RBS as part of a push into structured products and before that spent time at Mizuho and Bank of America.



The Grapevine

Fri, 27 Jul 2018
Bruce Gehrlein is no longer working at Cairn Capital, where he handled structured-product investment and collateralized loan obligation-management duties. His plans aren’t known. Gehrlein had arrived in the London firm’s New York office in 2012 from Treesdale Partners. His former employers also include RBS and predecessor Greenwich Capital, along with Credit...



The Grapevine

Fri, 27 Jul 2018
Whole-loan trader Jason Kopcak left Nomura this week, destination unknown. As an executive director, Kopcak played a key role in positioning the bank as a major trader of nonperforming mortgages and as an underwriter of bonds backed by those accounts. He had arrived in 2012 from Cantor Fitzgerald. Earlier, he worked at American Residential Equities, Carlton Group and Genesis...



The Grapevine

Fri, 27 Jul 2018
Wynkoop Financial has added a mortgage-bond trading analyst to the team running its Wickapogue Structured Credit Fund. Jui Chiew Tan joined the Denver hedge fund manager’s Southampton, N.Y., office this week, working under principal Leland Abrams. Tan most recently worked at Anato Investment from 2015 until the firm shut down in February. He also has spent time at Stifel Nicolaus, Odeon Capital, Interactive Data and Credit...



The Grapevine

Fri, 27 Jul 2018
Ralph Daloisio moved into a full-time role at Amherst Securities in June, signing on as a managing director in charge of a financing group involved in a number of areas, including securitization. Daloisio had been working at the New York brokerage firm on a part-time basis since 2016, while also running a consulting shop called Stealth Financial Innovation. His former employers also include Natixis and Bank of Tokyo-Mitsubishi. He served a...



The Grapevine

Fri, 27 Jul 2018
U.S. Bank is seeking a credit approval officer. The recruit would work within the bank’s newly forming asset-backed securities underwriting group in Charlotte, leading the development of credit-risk policies for warehouse facilities it plans to offer to bond issuers. U.S. Bank is focusing on candidates with at least 15 years of experience. For more information, click on “careers” at usbank.com and search for job number...



The Grapevine

Fri, 27 Jul 2018
Jefferies has added a vice president to its asset-backed bond banking team. Joseph McMahon had been helping to oversee the securitization program at small-business lender Kabbage since June 2017. He also has worked at J.P. Morgan and Barclays.



The Grapevine

Fri, 27 Jul 2018
Small-business lender Credibly has hired a treasurer. Naren Nayak’s duties at the Troy, Mich. company include helping to build a securitization program. Nayak arrived in June from Dan Zwirn’s Applied Data Finance, where he worked since 2015. He previously spent time at Freddie Mac, Morgan Stanley, Barclays, Sallie Mae, PG&E and AT&T.



The Grapevine

Fri, 27 Jul 2018
J.P. Morgan is looking for an accountant. The recruit would work in Brooklyn as an associate on an external-reporting controller team assigned to the bank’s securitized-product group, assisting in preparing regulatory reports and interacting with regulators. He or she also would communicate regulations to securitization staff. Candidates can apply at jpmorgan.com by clicking on “careers” and searching for job number...



The Grapevine

Fri, 27 Jul 2018
Business-development specialist Brent Taggart has signed on as a senior vice president at SingleSource Property Solutions, a Canonsburg, Pa., firm whose services include home appraisals and liquidation oversight. Taggart previously worked at Clayton Holdings, which he joined by way of that company’s 2015 purchase of Green River Capital. He also has worked at 406...



SEC Demands Change in Asset Valuations

Fri, 20 Jul 2018
(SEE CORRECTION BELOW) In a directive that could lead to widespread markdowns, the SEC is telling certain investors to change how they assign values to their structured-product holdings.The effort is aimed mostly at fund operators that have been using historical data to determine projected collateral losses — and then factoring those calculations into the values of their bond positions. Instead, the SEC is pushing for a discounted-cashflow...



Agencies Downplay Collateral Deterioration

Fri, 20 Jul 2018
Buyers of agency risk-transfer bonds are taking a closer look at the quality of the securities’ underlying mortgages.The scrutiny comes in response to a recent phenomenon in which rising interest rates have suppressed origination volume, prompting lenders to make up for some of the lost business by accommodating weaker borrowers. However, both Fannie Mae and Freddie Mac insist their risk-transfer pools remain unsullied.According to the...



RBC Recruits Pair of CP Pros From BofA

Fri, 20 Jul 2018
RBC’s commercial-paper unit has picked up two high-profile professionals from Bank of America.Ralph Esposito had been a managing director handling commercial-paper origination, sales and trading at BofA, with John Widmeier serving as his deputy on the trading side. Now, Esposito is playing a key role involving sales and trading of both secured and unsecured short-term securities in RBC’s New York office — with Widmeier helping...



Spotify Shuffles Funding Options

Fri, 20 Jul 2018
Spotify is taking a hard look at using securitization as a funding source.Talk is circulating that the Stockholm streaming-music company is contemplating an offering backed by its whole-business cashflows, mainly fees paid by its 75 million-plus subscribers and its advertising revenues. The deal, totaling close to $1 billion, could hit the market in the second half of 2019.Sources characterize Spotify’s interest in securitization as...



Credit Suisse Steps In for LoanDepot

Fri, 20 Jul 2018
A personal-loan securitization that Credit Suisse completed on June 22 replaced a transaction that fell apart prior to pricing.The bank originally was assembling the offering for originator LoanDepot, positioning it as a “club” deal whose asset pool also would include accounts that Foothill Ranch, Calif., firm had sold to Magnetar Capital.But LoanDepot backed out just as the issue was about to hit the market. That prompted Credit...



CLO Pioneer Plans Next Act

Fri, 20 Jul 2018
Collateralized loan obligation pioneer Mark Gold wants to re-start his dormant HillMark Capital.Gold, who founded HillMark in 2006 with Hillel Weinberger, is in talks with an unidentified backer about his desire to jumpstart the New York firm. HillMark hasn’t issued a CLO since 2014, and in February it sold the management rights to its last two deals to Pretium Partners.Like many smaller CLO shops, HillMark was hobbled by the Dodd-Frank...



Essent Eyes More PMI Offerings

Fri, 20 Jul 2018
Private mortgage insurer Essent Guaranty wants to expand its recently launched securitization program.The effort would see the Radnor, Pa., company issue bonds backed by premium payments on policies it plans to write against loans that don’t meet the Bureau of Consumer Financial Protection’s “qualified-mortgage” standards. An offering could come during the second half of 2019.Talk of the push comes just weeks after it got...



Softer Loan Market Buoys CLO Pros

Fri, 20 Jul 2018
After nearly two years of dwindling arbitrage profits, collateralized loan obligation issuers are seeing glimmers of hope.In their negotiations with borrowers over loan repricings, the firms are finding it easier to win concessions on a range of terms including interest rates. While the balance of power began to shift marginally several months ago, it has become more noticeable since mid-June, sources said.“In the last month, every...



Fraud Sentencing Pushed Back

Fri, 20 Jul 2018
A federal court has delayed the sentencing of former RBS trader Matthew Katke, who in 2015 pleaded guilty to one count of securities fraud for overcharging clients for their mortgage-bond investments.Katke’s sentencing was scheduled for Sept. 14 in U.S. District Court in New Haven, Conn. But the Department of Justice filed for a postponement on July 2, with the court granting the request on July 10.That’s because Katke, as part of his...



Ellington Pitches Advisory Service

Fri, 20 Jul 2018
Fund operator Ellington Management is aiming to capitalize on its structured-product trading experience by forming a unit that would advise small and mid-size depository institutions on their investments in those instruments.The operation, Ellington Portfolio Solutions, is targeting a universe of about 1,000 banks, credit unions and savings associations with assets of $1 billion to $50 billion apiece. Its services include securities selection,...



Moody's Retools CLO Data Feed

Fri, 20 Jul 2018
Moody’s has changed the way it reports performance indicators for collateralized loan obligations via its monthly “Market Pulse” data feed.Starting this month, the reports no longer include data about CLOs issued before the 2007-2008 financial crisis. Because the number of outstanding “CLO 1.0” deals is now miniscule, the data was presenting a skewed picture of their performance.The new format also breaks out...



The Grapevine

Fri, 20 Jul 2018
Broker-dealer Incenter Securities has a new head of structured-product sales. Charles “Mac” Macintosh arrived in the firm’s New York office this week from Lima One Capital, where he worked in a similar capacity since April. Macintosh also has worked at Orchard Platform, FirstKey Mortgage, Sterne Agee, Morgan Keegan, Thornburg Mortgage, Merrill Lynch and Lehman Brothers. At Incenter, he reports to senior managing director Jeremy...



The Grapevine

Fri, 20 Jul 2018
Former Credit Suisse banker Matthew Brand started this week in a leading role on ITE Management’s investment and structured-finance team in New York. Brand previously served two stints at Credit Suisse dating back to 2007, with a year at Barclays in between. He most recently held the title of director in the bank’s asset-backed bond unit, which he left in June. ITE specializes in industrial and transportation-related investments. As...



The Grapevine

Fri, 20 Jul 2018
Bond-structuring specialist David Nathanson parted ways with Deutsche Bank in June. Nathanson had joined the bank’s New York office a year earlier, working on deals backed by auto loans and credit-card accounts, among other receivables. He also has worked at Morningstar and Moody’s, following an earlier stop at Deutsche and stints at Citigroup and J.P....



The Grapevine

Fri, 20 Jul 2018
Kroll has installed Giles O’Flynn as a director in its Dublin office, assigning him to handle investor-relations duties across Europe. O’Flynn had been working in a similar capacity at Moody’s since 2000, most recently for the agency’s Moody’s Analytics unit. At Kroll, he reports to senior managing director Kate Kennedy.



The Grapevine

Fri, 20 Jul 2018
Peter Silberstein has signed on as a senior director in the capital-markets area of Figure, a San Francisco startup that plans to write and securitize online home loans using blockchain technology. Silberstein had been working in the capital-markets unit of Social Finance since 2016, and before that was at Goldman Sachs, Morgan Stanley and TCW. Figure is headed by SoFi founder Mike...



The Grapevine

Fri, 20 Jul 2018
Auriga USA has hired a sales-and-trading specialist to focus on collateralized debt obligations, including deals backed by trust-preferred shares. Michael Magaldi started in the firm’s New York office on July 17, working alongside collateralized loan obligation trading chief Paul Pasqua. Magaldi had been employed at Resource America since 2008, and before that was at J.P. Morgan and the...



The Grapevine

Fri, 20 Jul 2018
Ciaran O’Brien has joined RBC’s New York office as a director in a unit that writes repurchase agreements against clients’ assets. O’Brien had been working in a sales capacity at Mizuho since 2014, and before that was a mortgage-bond trader at Cantor Fitzgerald and UBS.



The Grapevine

Fri, 20 Jul 2018
New Diligence Advisors has hired Carrie Thompson to head its in-house legal department in Jacksonville. Thompson had been working since 2014 as a senior attorney at Lewis Ranieri’s Selene Finance, which counts New Diligence as an affiliate. She also has spent time at Digital Risk. New Diligence formed in February. This month, Kroll added the firm to its list of vendors qualified to review the assets backing SEC-registered...



The Grapevine

Fri, 20 Jul 2018
East West Bank has added a member to a team that offers warehouse financing to a mix of lenders, including those that use the facilities to accumulate receivables for securitization. Mark Parsa arrived in the Pasadena, Calif., institution’s New York office this week from Brooklyn Park Asset Management, a loan-focused investment firm he co-founded in 2010. Parsa’s former employers also include Greystone & Co., Fortress Investment, DZ...



The Grapevine

Fri, 20 Jul 2018
Morningstar is seeking an associate for its asset-backed securities rating group in New York. The recruit would report to group head Rohit Bharill. Morningstar is focusing on candidates with 1-3 years of experience. For more information, email Bharill at rohit.bharill@morningstar.com.



Personnel Moves Reshape Law Firm Tables

Fri, 13 Jul 2018
A shakeup is occurring among law firms in the securitization industry.Among the five most active firms representing underwriters of asset- and mortgage-backed bond deals in the U.S., only fifth-place Dentons arrived at midyear in the same league-table position it held at yearend 2017 — with Sidley Austin moving up one spot to first place, according to Asset-Backed Alert’s ABS Database. There was less change in the issuer-counsel...



New Front Opens in Non-Agency Market

Fri, 13 Jul 2018
A number of mortgage-bond issuers are working on non-agency deals backed entirely by conforming loans on single-family investment properties.Since Flagstar Mortgage issued a first-of-its-kind deal on May 21, others including Carrington Mortgage, J.P. Morgan and TIAA have begun assembling pools of agency-eligible loans written to individual borrowers who buy single-family rental properties for investment purposes.A flurry of offerings is expected...



Moody's CLO-Rating Status in Jeopardy

Fri, 13 Jul 2018
Amid growing complaints that its evaluation process has become too lengthy, Moody’s standing as the most active rating agency in the collateralized loan obligation business is at risk.The agency retained its usual lead at midyear, having appeared on 94 U.S. transactions totaling $52.2 billion for a 73.6% market share. But that left it only a hair ahead of Fitch, whose 93 deals totaling $52 billion amounted to a 73.2% share, according to...



REITs Move Back to Risk-Transfers

Fri, 13 Jul 2018
Invesco Mortgage Capital is taking another look at agency risk-transfer securities.The Atlanta operation has invested in such securities before, but joined many other REITs in stepping back over the past year as yields shrank to levels too small for their liking. But spreads began widening about a month ago, prompting some to show interest again.Word has it that Invesco plans to buy more of the securities during the second half. It’s...



Fortress Boosts Warehouse Capital

Fri, 13 Jul 2018
Fortress Investment is attempting to increase the amount of warehouse financing it supplies to specialty lenders that fund themselves through securitization.The effort spans a mix of small-business and consumer lenders, including those that write auto loans, personal loans and credit-card accounts. Sources said Fortress personnel recently have been courting those operations more aggressively, telling them it is making more capital available.It...



Judge Rules Against Highland

Fri, 13 Jul 2018
A judge overseeing the bankruptcy of a Highland Capital affiliate has approved a trustee’s plan to transfer control of five collateralized loan obligations to Oaktree Capital.Under a July 10 order from U.S. Bankruptcy Court Judge Stacey Jernigan in Dallas, Oaktree will purchase Highland’s majority equity interests in the CLOs, which have a combined principal balance of $2 billion, and take over management of the deals. A Highland...



Subprime-Auto Losses Drop Again

Fri, 13 Jul 2018
Losses among securitized pools of subprime auto loans continue to drop.During the month ended June 15, annualized losses fell 5 bp to 6.76%, according to an index maintained by Fitch. That’s the best showing since June 2016, when the figure stood at an annualized 6.32%. Subprime-loan delinquencies, which had been falling since February, jumped 33 bp to 4.41%. Fitch said that’s because borrowers are running out of income-tax refund...



Business Lender Engaging Investors

Fri, 13 Jul 2018
A company that writes loans to small and mid-size businesses is talking to investors about a potential securitization.If it moves forward with the effort, Austin-based CrowdOut Capital would start by privately placing deals with single buyers in 2019. The offerings eventually could take the form of asset-backed securities or collateralized loan obligations.CrowdOut, which formed in 2015, so far has been employing a marketplace-lending strategy in...



Asia Fund Buys US Loans

Fri, 13 Jul 2018
FinEX Asia has purchased a portfolio of marketplace-originated personal loans from the U.S.The $500 million-plus portfolio now resides in a fund that FinEX markets to investors in Asia. It’s unclear if the Hong Kong firm is considering securitization as an exit strategy.The year-old FinEX has some links to the asset-backed bond market. In September, it took a $50 million equity stake in Prosper Marketplace, which so far has issued $2.4...



US Bank Keeping Ahead of Rivals

Fri, 13 Jul 2018
U.S. Bank remains the most active trustee in the structured-finance industry, despite rapid growth by some of its rivals.The bank led the field for U.S. asset- and mortgage-backed bonds by appearing on 79 transactions totaling $45.8 billion during the first half of 2018, earning a 24.4% market share. It also was number one in the worldwide collateralized loan obligation sector, with 95 offerings for $48.4 billion that amounted to a 51.4% market...



S&P Establishes Early Lead

Fri, 13 Jul 2018
S&P is on pace to capture for its sixth straight league-table crown.The agency rated 151 new U.S. asset- and mortgage-backed bond offerings totaling $98.6 billion during the first half of 2018, earning a 52.6% market share. But its deal volume was up just 16%, trailing the overall market’s growth level of 24%, according to Asset-Backed Alert’s ABS Database.That allowed second-place Moody’s to gain some ground. It rated 136...



The Grapevine

Fri, 13 Jul 2018
Russ Mueller joined First Empire Securities of Hauppauge, N.Y., in recent weeks as a mortgage-bond trader. Mueller previously co-headed a structured-product sales unit that he helped start at ED&F Man in 2015. He left as the group shut down in March in response to dwindling trading volume. He also has worked at Pierpont Securities, Cortview Capital, MF Global, Greenwich Financial, GFI Securities and Morgan...



The Grapevine

Fri, 13 Jul 2018
Managing director Jeff Mullins has parted ways with Stabilis Capital, where his duties included investing in bonds and other products related to consumer loans and commercial mortgages. Mullins had joined the New York investment shop’s Indianapolis office in 2016, after a few months as a consultant. He led securitized-product sales and trading at CRT Capital before that, and spent time at Jefferies, RBS and...



The Grapevine

Fri, 13 Jul 2018
Word has it that Alexey Dronov has signed on with Allstate’s Chicago office to oversee investments in collateralized loan obligations. Dronov had been in charge of CLO trading and structuring at broker-dealer Marv Capital since 2016. He previously spent time at Highland Capital, Calyon, Morgan Stanley and Deutsche Bank.



The Grapevine

Fri, 13 Jul 2018
George Mancheril has left his post as portfolio manager handling investments in collateralized loan obligations and nontraditional asset-backed securities in Guggenheim Partners’ Santa Monica, Calif., office. Mancheril’s plans aren’t known. He joined Guggenheim in 2011 from Macquarie, and before that was at Goldman Sachs.



The Grapevine

Fri, 13 Jul 2018
Stephen Rappaport left his job as a top structured-product risk manager at Deutsche Bank in June to become chief risk officer at Hunt Financial Securities of Rye Brook, N.Y. Rappaport had joined Deutsche in 2005. His resume also includes stops at Interactive Data, Retirement System Group and Mitsubishi Trust & Banking.



The Grapevine

Fri, 13 Jul 2018
Fitch added a senior analyst to its New York office this week, assigning director Richard Koch to analyze mortgage servicers under managing director Roelof Slump. Koch had been handling operational risk assessments at Morningstar since 2011, and before that was at S&P.



The Grapevine

Fri, 13 Jul 2018
StormHarbour Securities added a trader to its New York office this week, assigning Isaac Maya to cover mortgage-bond derivatives and asset-backed bonds underpinned by unusual cashflows. Maya had been working at Seaport Global since April 2017, and before that was at Halcyon Capital and United Capital.



The Grapevine

Fri, 13 Jul 2018
Morningstar has hired a vice president to handle rating and surveillance work on asset-backed securities and collateralized loan obligations. Joshua Gatmaitan is stationed in New York, reporting to asset-backed bond chief Rohit Bharill. Gatmaitan had been working at Ferry Farm Capital since 2017, with a focus on investments in loans and asset-backed securities. He also has spent time at Citigroup, Bank of the Philippine Islands, Institutional...



The Grapevine

Fri, 13 Jul 2018
Brown Brothers Harriman is seeking a junior analyst to evaluate and monitor asset-backed bond investments in its New York office. The private bank is focusing on individuals with up to five years of experience. Candidates can apply at bbh.com by clicking on “careers” and searching for job number 39270.



The Grapevine

Fri, 13 Jul 2018
David Bell has signed on as head of business development at Link Asset Services, a London operation that handles a range of back-office services in industries including structured finance. Bell most recently led corporate-trust and agency services at Law Debenture Corp., which he joined in 2017 after stops at TMF Group, BNY Mellon and Goldman Sachs.



Uncertain Outlook Follows First-Half Rush

Fri, 06 Jul 2018
Industry participants aren’t sure if this year’s surge in structured-product issuance will last.Worldwide sales of new asset-backed bonds, collateralized loan obligations, residential mortgage securities and commercial mortgage paper totaled $444.1 billion during the January-June stretch. That represented a 23% jump from a year earlier — and the highest first-half tally since 2008, according to Asset-Backed Alert’s ABS...



Johns' Conference Plans Cause SFIG Divorce

Fri, 06 Jul 2018
A clash over the Structured Finance Industry Group’s role as a conference organizer precipitated the sudden exit of executive director Richard Johns on June 29.At issue is the strategy for the inaugural edition of “SFIG D.C.,” which takes place at the Marriott Wardman Park hotel in Washington from Sept. 30 to Oct. 2.SFIG insiders said Johns initially pitched the conference to the trade group’s leadership as a low-key...



Midweek Holiday Halts Secondary Trades

Fri, 06 Jul 2018
Secondary-market activity has stalled.This week started slow as industry participants took time off ahead of Independence Day. Trading then froze across asset classes, with no formal bid lists on Thursday or Friday. “It’s dead,” one trader said.According to Empirasign, asset-backed bond trades totaled $117.8 million on July 2-3, down 83% from the week-earlier timeframe. Collateralized loan obligation trades totaled $32 million,...



Essent Proposes PMI for Non-QMs

Fri, 06 Jul 2018
Essent Guaranty wants to write private mortgage insurance policies on loans that don’t meet the Bureau of Consumer Financial Protection’s “qualified-mortgage” standards.Sources said the Radnor, Pa., company already has moved beyond the planning stages of the effort, and could launch an official program as early as the fourth quarter.Private mortgage insurance protects lenders who write loans to individuals with down...



Insurers Flock to Bond-Backed CLOs

Fri, 06 Jul 2018
Insurers increasingly are stocking their investment portfolios with collateralized loan obligations whose underlying assets include large amounts of corporate junk bonds.While the identities of specific buyers remain under wraps, sources said large insurers recently have shown more interest in the deals — which unlike typical CLOs can be underpinned by any mixture of loans and bonds. That could help create more momentum in the sector, where...



Refis Boost Underwriters' Fortunes

Fri, 06 Jul 2018
Collateralized loan obligation underwriters both large and small benefitted from a continued flow of refinancings during the first half of 2018.CLO issuers worldwide refinanced $92.3 billion of existing deals during the January-June period, rivaling the $94.2 billion of new offerings completed during the same stretch, according to Asset-Backed Alert’s ABS Database. The biggest banks in the business, meanwhile, maintained a commanding...



Project Showcases Blockchain Tech

Fri, 06 Jul 2018
Global Debt Registry is working on a pilot project intended to demonstrate how the parties involved in asset-backed bond deals can save money by adopting blockchain technology.The savings would come from a reduction in due-diligence costs. Currently, underwriters engage outside vendors to verify origination data for loans they fund through warehouse facilities — a process that is repeated by auditors, often through different due-diligence...



VW Plans Routine Issuance in States

Fri, 06 Jul 2018
Volkswagen already is mapping its next U.S. asset-backed bond offering on the heels of its return to the market.Executives in the German automaker’s U.S. treasury division told investors this week that the company plans to be a routine issuer of bonds backed by loans, leases and dealer-floorplan credits in the States, sources said. The next deal is likely to hit the market around yearend.“They’re letting people know...



Riskier Personal Loans Strengthen

Fri, 06 Jul 2018
Performance among securitized pools of personal loans written online to prime-quality borrowers weakened in June, while lower-quality pools strengthened.According to an index maintained by Kroll, losses among so-called Tier 1 loans — originated by Social Finance and Marlette Funding to borrowers with average weighted credit scores of 710-740 — shot up 112 bp to an annualized 5.31%. Kroll said the rise was primarily driven by weakness...



JP Morgan Soars on US Growth

Fri, 06 Jul 2018
J.P. Morgan was the world’s leading bookrunner of structured-product transactions during the first half of 2018, thanks in large part to a growing presence in U.S. asset-backed bonds.The bank appeared on 148 asset-backed bond deals, residential and commercial mortgage securitizations, and collateralized loan obligations during the January-June period, earning $54.9 billion of league-table credit for a 12.4% market share. The dollar volume...



Carvana Offering Headed to Market

Fri, 06 Jul 2018
Online auto dealer Carvana is moving ahead with a planned securitization program.The effort is set to start with a $200 million offering in the coming weeks. J.P. Morgan will run the books, with Kroll rating the transaction.Carvana, which bills itself as a one-stop shop where customers can buy and finance used cars, initially was looking at 2017 to float its debut deal. But it held off, in part, due to a November agreement by Ally Financial to...



The Grapevine

Fri, 06 Jul 2018
Managing director Randal Johnson is no longer employed at Deutsche Bank. Johnson had worked in the bank’s New York office since 2005, most recently in a banking role focused on securitizations of marketplace-originated loans and other nontraditional assets. He also has worked at Lehman Brothers. Sources said his exit from Deutsche came as part of broad staff reductions that are projected to claim 10% of the bank’s workforce by yearend...



The Grapevine

Fri, 06 Jul 2018
Mayer Brown attorney Jason Kravitt will officially retire at yearend. Kravitt has been phasing out of his job as one of the firm’s highest-ranking structured-finance attorneys since 2012, just before he reached its mandatory retirement age of 65. But he has stayed on board on a year-to-year basis, while gradually handing off his duties to other attorneys. Kravitt, considered one of the securitization industry’s top regulatory...



The Grapevine

Fri, 06 Jul 2018
Jeffrey Tucker resigned from KeyBank’s New York sales desk this week. Tucker had arrived in 2016 with a focus on mortgage bonds, following a long tenure at Credit Suisse. He also has worked at Merrill Lynch, PNC and Mellon Financial.



The Grapevine

Fri, 06 Jul 2018
Kathryn James joined the structured-finance and derivatives practice at London law firm Simmons & Simmons in June as a managing associate covering deals backed by residential and commercial mortgages, credit-card receivables and whole-business cashflows. James most recently was a senior associate at Clifford Chance, where she worked since 2006.



The Grapevine

Fri, 06 Jul 2018
Saleswoman Jessica Yan joined Societe Generale’s New York office in May as a vice president. Yan had been employed at StormHarbour Securities since 2016. She also has worked at Bank of America.



The Grapevine

Fri, 06 Jul 2018
Gil Tollinchi is no longer employed at Nomura, where he was a managing director on a team that places leveraged loans with collateralized loan obligation issuers. Tollinchi had joined the bank’s Rye Brook, N.Y., office in October from Golub Capital, but is better known for long stretches as a loan trader at CLO issuer Crescent Capital and predecessor TCW, along with Standard Chartered Bank, BNY Mellon and Chase...



The Grapevine

Fri, 06 Jul 2018
Mortgage-bond trader Tony Mun has left First Empire Securities. Mun, a Los Angeles-based managing director, had arrived at the firm in January 2017 from Piper Jaffray. He was tasked with helping lenders sell loans and hedge their exposures. He also has spent time at Gleacher & Co., PrinceRidge, Ally Financial, Deutsche Bank, Nomura and Credit Suisse.



The Grapevine

Fri, 06 Jul 2018
DealVector has hired a business-development executive. Timothy Day, who joined the electronic matchmaker’s New York office around the beginning of June, had been working as an independent consultant since 2015. Before that, he traded and sold collateralized loan and debt obligations at Odeon Capital and spent time at Guggenheim.



The Grapevine

Fri, 06 Jul 2018
Philip Toth, a New York-based managing director at Oberon Securities whose duties include advising specialty lenders on their structured-finance activities, has taken a side job as a finance instructor at Columbia University. Toth also teaches at Seton Hall University. He has worked at Oberon since 2015, following stops in the structured-finance groups at Bonwick Capital, Janney Montgomery Scott, Cohen & Co. and Stifel...



Wyndham Maps Timeshare-Bond Comeback

Fri, 29 Jun 2018
With the spinoff of its hotel division complete, Wyndham plans to resume issuing timeshare-loan bonds.The Orlando company, which hasn’t completed such an offering since March 2017, is looking at late this year or early 2019 to float a deal of about $400 million. From there, the expectation is that it would quickly revert to a routine encompassing three or four transactions totaling some $1 billion each year.Wyndham’s last...



JP Morgan Reasserts League-Table Strength

Fri, 29 Jun 2018
J.P. Morgan is well on its way to reclaiming the number-one ranking among structured-product bookrunners worldwide.The bank is heading toward the midpoint of 2018 with credit for more than $50 billion of combined year-to-date offerings in the asset-backed bond, residential mortgage bond, commercial mortgage bond and collateralized loan obligation sectors, according to preliminary information from Asset-Backed Alert’s ABS Database. That puts...



Hedge Fund Taps Jefferies to Lead Rare CBO

Fri, 29 Jun 2018
Industry professionals are abuzz over a rare collateralized bond obligation that Jefferies is structuring on behalf of a small hedge fund operator.The issuer, RVX Asset Management of Aventura, Fla., invests in emerging-market debt and equity. Sources said the deal’s collateral pool would be made up of corporate bonds from developing countries. The exact size and timing of the offering are unknown.“In a lot of countries, loans...



Two Harbors Explores MBS Program

Fri, 29 Jun 2018
Add Two Harbors Investment to the list of companies interested in rebooting their jumbo-mortgage securitization programs.The New York mortgage REIT recently has spoken to a few investors about an offering that could hit the market by yearend, with the goal of measuring potential demand. The issue presumably would take place though a conduit that produced its last deal in August 2016.At the time, low mortgage rates and weak bond values were...



Dechert's Williams Back On Duty

Fri, 29 Jun 2018
Dechert has brought a leading collateralized loan obligation attorney back into service.Cynthia Williams, who co-heads the firm’s CLO practice with John Timperio, had been reducing her involvement in new deals while planning her retirement. But the May exit of lieutenant Sean Solis for Milbank Tweed has created the need for her to resume a full workload.“She’s been out on deals again lately,” one rival attorney said.The...



Insurance Lender Steps Up Issuance

Fri, 29 Jun 2018
The acquisition of a competing insurance-premium lender is helping to drive up IPFS Corp.’s securitization volume.The Kansas City, Mo., company already has completed four issues totaling $1.1 billion in 2018, easily putting it on pace for its busiest year ever. Next up is a deal with a projected size of $300 million.Citigroup and J.P. Morgan, which typically lead IPFS’ securitizations, are planning to start a roadshow in August ahead...



CLO Issuers Make Way for Refis

Fri, 29 Jun 2018
Collateralized loan obligation issuers increasingly are scheduling new offerings so that they don’t coincide with bouts of heavy deal-refinancing activity.At issue is a phenomenon in which issuers typically refinance existing CLOs around the transactions’ quarterly payment dates. In the past, issuers and underwriters haven’t eased back on new-deal supply at those times — causing spreads to widen as the market became...



Hunt Wins ABS-Underwriting Roles

Fri, 29 Jun 2018
Hunt Financial Securities has landed its first assignment as a structured-product underwriter.The Rye Brook, N.Y., firm is the sole bookrunner for a $250 million securitization of tax liens from Cazenovia Creek Investment. The deal, expected to hit the market in July, will carry ratings from Kroll. Cazenovia last issued a tax-lien offering in 2015 via Guggenheim.Hunt also has begun work on a securitization of “fix-and-flip” loans for...



MFA, Waterfall Join Non-QM Rush

Fri, 29 Jun 2018
MFA Financial and Waterfall Asset Management are separately developing mortgage-securitization programs.Sources said both companies are determining the infrastructures and staffs needed for the initiatives, which could begin producing bond deals in 2019. The securities would be backed by loans that don’t meet the Bureau of Consumer Financial Protection’s “qualified-mortgage” standards.Both MFA and Waterfall would buy the...



PennyMac MBS Moves Into Pipeline

Fri, 29 Jun 2018
PennyMac is moving ahead with plans to resume issuing jumbo-mortgage bonds.Word is circulating that the Westlake Village, Calif., company is envisioning an initial offering of $500 million that would hit the market during the fourth quarter.That would be consistent with a timeline that emerged in February, when PennyMac was on the verge of reviving a then-dormant jumbo-loan program that would routinely draw its funding from both securitizations...



Amazon Eases Back on Purchases

Fri, 29 Jun 2018
Amazon.com is tempering its purchases of asset-backed bonds.The online retailer was holding $795 million of such securities on March 31, down from an all-time high of $905 million at yearend 2017. And sources report that it has been largely absent as a bidder since then.The reduction reverses an expansion of the portfolio that began in 2015. Amazon ended that year with $117 million of asset-backed securities, and by yearend 2016 had brought the...



The Grapevine

Fri, 29 Jun 2018
Investment specialist Sanjay Gulati joined ArrowMark Partners’ Denver office in recent weeks with a focus on collateralized loan obligations. Gulati had been employed at Highland Capital since 2013. He also has spent time at MHT Partners and Merrill Lynch. ArrowMark runs $16.6 billion through a mix of vehicles. Its CLO portfolios are overseen by Sanjai...



The Grapevine

Fri, 29 Jun 2018
Quentin Belouchat is leaving his job as a vice president on Natixis’ bond-structuring team in London. Word has it he is headed to a Cerberus Capital unit that has been buying older mortgage portfolios and bundling them into securitizations. Belouchat has worked at Natixis since 2012.



The Grapevine

Fri, 29 Jun 2018
Dylan Mark and Shanice Thompson arrived at Morgan Stanley this week as members of a New York team that evaluates the credit risk associated with warehouse facilities the bank supplies to structured-product issuers. Mark and Thompson report to executive director Shaun Magee. Both previously worked at DBRS, where they started in 2015 — with Mark having served an earlier stint at Morgan...



The Grapevine

Fri, 29 Jun 2018
Kevin Gordon has left KeyBank’s asset-backed bond trading desk in New York. Gordon’s plans are unknown. He had worked under Joe Vaccaro since arriving at the bank from Cowen Prime Services in November. He also has spent time at Credit Suisse, BGC Financial, Dealerweb and Tullett Liberty Securities.



The Grapevine

Fri, 29 Jun 2018
Online small-business lender OnDeck Capital has rehired an employee it laid off in May 2017. Based in Denver, Joseph Gaworecki is tasked with determining the values of OnDeck’s loans. He had been working at Optimal Solutions and Technologies since last July, having previously held a number of capital-markets and loan-review positions at OnDeck dating back to 2014. OnDeck has completed three securitizations totaling $650 million since...



The Grapevine

Fri, 29 Jun 2018
Natixis has an opening for a senior credit officer in New York. The recruit would help manage a team that oversees the exposures the bank takes on through its warehouse-lending and securitization businesses. Along with credit-risk analysts, his or her duties would include assessing counterparties including banks, insurers and fund operators. Natixis is focusing on candidates with at least 15 years of...



The Grapevine

Fri, 29 Jun 2018
Consulting firm Signet Partners has hired a senior vice president to build a new group in Washington, with an eye toward winning more business from government agencies, banks and lenders. Timothy Lee arrived a few weeks ago from a position advising financial institutions on structured-product reviews at accounting firm Grant Thornton. Lee also has worked at FI Consulting and the FHFA, and has held securitization-related posts at Allied Capital,...



The Grapevine

Fri, 29 Jun 2018
RBC is seeking a deal-structuring specialist. The New York-based recruit would develop deal models across asset classes, and would assist in assigning values to transactions. His or her duties also would include interacting with rating-agency analysts and marketing staff. RBC is focusing on candidates with at least two years of experiences. For more information, click on “careers” at rbc.com and enter job number...



The Grapevine

Fri, 29 Jun 2018
Lending Club has promoted Valerie Kay to oversee interactions with all buyers of its personal loans. Kay already had been handling those responsibilities for institutional investors, including those that funnel the accounts back into its quarterly “club” securitizations. Her new assignment adds responsibility for individual investors. The move follows the exit last week of her supervisor, Patrick Dunne. Kay arrived in 2016 from Morgan...



Barclays Dusting Off Gracechurch Program

Fri, 22 Jun 2018
Barclays’ U.K. credit-card unit is getting ready to resume issuing asset-backed bonds both in Europe and the U.S.Via its Gracechurch Card Programme, Barclays is teeing up an offering of more than $1 billion for mid-July, encompassing both pound- and dollar-denominated tranches. The bank is dispatching a team of bankers to meet investors in the States next week.A routine series of deals would follow.Barclays last completed an open-market...



BofA Mortgages to Flow Through Chimera

Fri, 22 Jun 2018
Chimera Investment is positioning itself as a routine issuer of jumbo-mortgage bonds, with Bank of America supplying the collateral.Chimera pledged around the beginning of this year to purchase an undisclosed volume of prime-quality accounts from BofA on an ongoing basis, and on April 30 completed a pilot securitization of those receivables, distributing $380 million of securities.A follow-up transaction is in the works for the next month or so,...



New Assignments for Morningstar Execs

Fri, 22 Jun 2018
Morningstar has promoted three senior members of its structured-finance staff, with two of them absorbing duties that formerly belonged to chief operating officer Joe Petro.Managing director Becky Cao is filling a newly created position in which she aims to ensure the quality of the agency’s securitized-product ratings via proper applications of its evaluation procedures. Michael Brawer and Brian Vonderhorst, meanwhile, are splitting a job...



Nelnet Mulls Personal-Loan Bonds

Fri, 22 Jun 2018
Nelnet is exploring a personal-loan securitization program.The Lincoln, Neb., company already has discussed the potential effort with some of the banks that underwrite its student-loan bonds, indicating that it could come to market with a $150 million transaction during the second half of 2018.Nelnet began buying personal loans from community banks and other originators about a year ago. It was holding $62.1 million of the accounts at yearend...



China MBS Headed for US Market

Fri, 22 Jun 2018
Look for more mortgage-bond issuers in China to distribute their securities in the States.With both supply and demand picking up in the market for U.S. home-loan paper, the talk is that those shops see an opportunity to cash in on the market’s momentum.Adding to the expectations is a 10 billion yuan ($1.5 billion) transaction that China Construction Bank is expected to price on June 25, with banks and other investors in the U.S. among the...



Kroll Nabs CLO Analyst From S&P

Fri, 22 Jun 2018
Kroll has lured another executive from S&P as part of an ongoing effort to expand its coverage to include collateralized loan obligations.Sean Malone, a lead analyst for newly issued CLOs at S&P, will join Kroll as a director on June 25. He’ll report to his old boss at S&P, Eric Hudson. Hudson joined Kroll in April as a managing director in charge of CLO ratings.Malone had been a member of S&P’s CLO-rating team since 2013. Hudson...



Signs Point to End of Criminal Probe

Fri, 22 Jun 2018
The government’s crackdown on illicit mortgage-bond trading practices increasingly appears to be winding down.On June 14, attorneys representing former RBS trader Adam Siegel agreed to a sentencing date of Sept. 21. That’s significant because Siegel, who pleaded guilty to one count of securities fraud in 2015, functioned as a cooperating witness as prosecutors charged other traders with misquoting bond prices to clients. His...



CLO Issuers Amp Up Trading

Fri, 22 Jun 2018
Collateralized loan obligation issuers stepped up trading of their deals’ underlying assets last year.According to a report from Moody’s Analytics, issuers turned over an average of 32% of their deal collateral in 2017, up from 20% in 2016.Kingsland Capital posted the highest turnover level, at 101%, up from a market-leading 60.6% in 2016. Some of the rise may have come in preparation for the New York firm’s purchase by Hayfin...



Fitch Flags Reps and Warranties

Fri, 22 Jun 2018
Fitch is preparing a report that will give mortgage-bond investors a clearer understanding of how various issuers enforce representations and warranties.The report, to be released June 26, comes amid increasing concern that some issuers have weakened their procedures for reviewing and removing collateral loans that are seriously delinquent or in default. Investors are particularly worried about smaller subprime lenders whose credits don’t...



Renovate, Ygrene Discuss Merger

Fri, 22 Jun 2018
Property Assessed Clean Energy lenders Renovate America and Ygrene Energy are exploring a merger.The talks come in response to a broad decrease in PACE-loan volume in California, which is by far the largest market for such financing.Renovate and Ygrene, meanwhile, have been the most active issuers of bonds backed by PACE credits. It’s unclear which firm would absorb the other.The lending slump was triggered by an April 1 change to the...



Semper Expansion Picks Up Speed

Fri, 22 Jun 2018
Semper Capital continues to grow.The New York investment firm is heading into midyear with $2.5 billion of gross assets, up from $1.8 billion at yearend 2017 and $1.3 billion at yearend 2016. It also added two analysts to its trading desk in recent weeks.Mike Stefanelli had been employed at PricewaterhouseCoopers since 2015, handling a mix of analytical duties that included assigning values to mortgage bonds. Ian Rappaport had been leading a...



The Grapevine

Fri, 22 Jun 2018
Adrian Radulescu has left his job as co-head of Barclays’ collateralized loan obligation origination unit. Radulescu’s next move couldn’t be learned. He had joined Barclays’ New York office in 2013, working alongside Jonathan Kitei to build one of the CLO market’s more-active underwriting practices. His exit precedes the July arrival of former Citigroup executive John Clements as Barclays’ head CLO banker...



The Grapevine

Fri, 22 Jun 2018
Flagstar Bank has hired a vice president to oversee its jumbo-mortgage securitization program. Eileen Lindblom arrived in the bank’s Troy, Mich., headquarters in May. She most recently was building a book of mortgage servicing rights at Seneca Mortgage from 2013 to December 2017. Before that, she spent time at Dreambuilder Investments and UBS, where her titles included head of mortgage...



The Grapevine

Fri, 22 Jun 2018
Director Matthew Brand exited Credit Suisse’s asset-backed bond banking unit early this month, apparently to take a job at an issuer. Brand served two stints at Credit Suisse, starting in 2007 and returning in 2012 after one year at Barclays.



The Grapevine

Fri, 22 Jun 2018
Vice president Rob McDonald is no longer working at Goldman Sachs. McDonald had been on board since 2002, handling structuring duties on deals backed by auto and equipment cashflows. He earlier worked in the treasury department at Ford.



The Grapevine

Fri, 22 Jun 2018
Structured-product investment specialist John Eck left his post as a managing director at Arena Investors this week to take the same title at Ares Management in New York. Eck joined Arena in 2013. He earlier worked on securitizations of unusual assets at Bank of America, Citigroup and Bear Stearns.



The Grapevine

Fri, 22 Jun 2018
Oliver Dunsche resurfaced in BNP Paribas’ New York office this week as part of a team that sets up warehouse facilities for issuers of bonds backed by leveraged loans and unusual cash flows. Dunsche worked in a similar capacity at HSBC from 2014 to this April, and since then was waiting out a gardening leave. He also has spent time at Barclays, Deutsche Bank, Morgan Stanley and Oliver...



The Grapevine

Fri, 22 Jun 2018
S&P has two openings in its structured-finance rating group. One is for a New York-based associate who would handle cashflow-modeling and quantitative analysis on deals backed by mortgages, student loans and aircraft leases. The other job is for a researcher in Centennial, Colo., covering transactions backed by nontraditional cashflows including aircraft, container and railcar leases. Both positions require two years of experience. To apply,...



The Grapevine

Fri, 22 Jun 2018
Goldman Sachs is seeking an analyst for its mortgage-securitization group in New York. The recruit would handle cashflow-modeling, asset-valuation and document-review duties, and would work with investors and rating agencies. Coverage areas would include deals backed by jumbo loans, nonperforming loans and rental-home cashflows. To apply, click on “careers” at goldmansachs.com and enter job number...



The Grapevine

Fri, 22 Jun 2018
The head of a unit that aims to expand the universe of buyers for Lending Club’s personal loans left the San Francisco originator last week. Patrick Dunne had arrived in 2016 from BlackRock. His plans couldn’t be learned.



The Grapevine

Fri, 22 Jun 2018
Product-strategy head Jack Mahoney has left Avant, where his work included tasks related to the Chicago personal lender’s securitization program. Mahoney, who had arrived at Avant in 2014 from Morgan Stanley, now works on the operations side at recruiting website Indeed.com. There’s no word of any securitization plans at Indeed.



Mortgage Pros Fret Over Waning Standards

Fri, 15 Jun 2018
Worries are spreading that enforcement of the representations and warranties for certain mortgage securitizations has become too weak.At issue is a trend in which issuers increasingly have implemented lax procedures for reviewing and removing collateral accounts that run into trouble. Of particular concern are smaller subprime lenders whose credits don’t meet the Bureau of Consumer Financial Protection’s...



Ally to Revive Jumbo-MBS Issuing Program

Fri, 15 Jun 2018
Ally Financial is planning a jumbo-mortgage securitization.In early discussions with rating agencies and underwriters, the Detroit institution has described an offering of some $750 million that it would float in early 2019 — thus ending a long absence from the market.Ally and predecessor GMAC once were among the biggest players in the mortgage-finance sector, having issued $450.4 billion of securities backed by prime-quality, subprime and...



Mortgage-Bond Manager Shutting Down

Fri, 15 Jun 2018
Structured Portfolio Management, a mortgage-bond shop that made a killing for its investors in the wake of the financial crisis, is unwinding.Talk began circulating last week when Bank of America offered a portfolio of mortgage derivatives on behalf of an undisclosed hedge fund manager. Now comes word that the package, with a face value of more than $1 billion, represented the holdings of SPM’s main fund.The liquidation is tied to a move by...



Lone Star Shifts NPL Strategy

Fri, 15 Jun 2018
Lone Star Funds is paring back its sales of fresh nonperforming-mortgage bonds.The Dallas private equity firm’s Caliber Home Loans unit typically has completed a dozen unrated transactions per year since launching its Vericrest Opportunity Loan Transfer program in 2015, including 11 offerings for $12 billion in 2017. But its activity in the sector this year has encompassed just a single issue of $497.3 million that priced April...



Cloudy Forecast Develops in Europe

Fri, 15 Jun 2018
Even with issuance volume growing in Europe, uncertainty prevailed at this year’s “Global ABS” conference.Heading into the June 5-7 event, hosted by the Association for Financial Markets in Europe and Information Management Network at the Barcelona International Convention Center, expectations were that dealmaking activity would abound. Instead, some of the 3,800 attendees reported a lack of meetings that at times reflected...



Highland CLO Contracts Under Fire

Fri, 15 Jun 2018
A court-appointed trustee is seeking to wrest control of the majority equity positions that Highland Capital holds in five of its own collateralized loan obligations.Robin Phelan’s June 8 request to U.S. Bankruptcy Court Judge Stacey Jernigan in Dallas marks the latest twist in a long-running dispute between Highland and former portfolio manager Josh Terry — who in April won a lawsuit that led to Phelan’s appointment.Phelan’s motion aims...



Sallie Ramps Up Personal Loans

Fri, 15 Jun 2018
Sallie Mae Bank’s portfolio of online personal loans is swelling faster than expected, leading to speculation that it could move up the timetable to securitize those assets.The student-loan giant began buying personal loans from Lending Club last year and was sitting on $675 million of those accounts at the end of the first quarter — up from $400 million at yearend. The increase was more than twice what equity analysts who cover the...



Freddie Tweaks Principal Structure

Fri, 15 Jun 2018
Subordinate investors in future risk-transfer deals from Freddie Mac can expect to stop receiving principal payments when conditions turn sour.The agency first employed the policy for a $1.1 billion transaction that priced June 12, Structured Agency Credit Risk Debt Notes, 2018-DNA2 (see Initial Pricings on Page 9). It plans to do the same for all of its risk-transfer deals going forward.The new terms pause principal distributions to junior...



Strong Month for Subprime Autos

Fri, 15 Jun 2018
Losses and delinquencies swung lower among securitized pools of subprime auto loans during the month ended May 15.According to an index maintained by Fitch, losses fell 120 bp during the period to an annualized 6.81% while delinquencies dipped 22 bp to 4.08% — the lowest levels for both figures since June 2016. Fitch attributed the improvements to economic health, along with moves by borrowers to pay their debts with tax-return proceeds....



TIAA Builds MBS-Issuance Shelf

Fri, 15 Jun 2018
A year after buying EverBank, TIAA is ready to begin securitizing jumbo mortgages under its own name.A team of attorneys hired by the $1 trillion asset manager has been working for the past month or so to set up an issuance vehicle dubbed TIAA Bank Mortgage Loan Trust. A debut transaction of about $500 million is expected to hit the market any day.In EverBank, TIAA picked up an online-banking and mortgage-lending operation that relied in part on...



Sandler Pitches Retention Strategy

Fri, 15 Jun 2018
Sandler O’Neill & Partners is telling collateralized loan obligation issuers that it can raise money for them through corporate-bond sales.The pitch, geared toward smaller managers, is that the firms could use the proceeds to retain equity positions in their CLOs. Sandler closed its first such deal on June 6, privately placing $30 million of five-year unsecured notes for Trinitas Capital.The bank’s strategy is based partly on the idea...



The Grapevine

Fri, 15 Jun 2018
Continuing a hiring spree that began last year, Cantor Fitzgerald has picked up three mortgage-bond sales professionals from Nomura. Alexandra DaCosta was a managing director in Nomura’s Boston office, which she joined in 2009 from Mesirow Financial. Brendan McNamara was a vice president in New York, having arrived in 2010 from State Street. Sources said a junior staffer also will make the move. It’s unclear when the recruits will...



The Grapevine

Fri, 15 Jun 2018
(SEE CORRECTION BELOW) Senior credit officer Youriy Koudinov has left Moody’s mortgage-bond surveillance group in New York. Koudinov had worked at the agency since 2013, following stops at TIAA, Access Industries, Credit Suisse, Manhattan Consulting, Bankers Trust and Fidelity Investments. His exit follows a series of moves within the mortgage-bond surveillance unit that included the 2017 retirement of Eric Fellows, the promotion of former...



The Grapevine

Fri, 15 Jun 2018
SunTrust is seeking a New York-based associate to help arrange securitizations for clients. The recruit’s duties would include business-development tasks and performing due-diligence reviews on asset pools. Candidates can email SunTrust hiring manager Ileana Chu at ileana.chu@suntrust.com.



The Grapevine

Fri, 15 Jun 2018
New Diligence Advisors has hired a vice president to head a mortgage-review team in Jacksonville. Mikhael Mikle arrived this month from PHH Mortgage, where she held a series of posts dating back to 1997. Most recently, she was a site director responsible for credit-risk administration and whole-loan repurchases.



The Grapevine

Fri, 15 Jun 2018
Attorney Michael Jo joined Kroll’s New York office in May as a managing director focused on the legal aspects of residential and commercial mortgage-bond deals. Jo most recently worked as a managing director at REIT Annaly Capital from 2013 to July 2017. He also has spent time at KSL Capital, Fortress Investment, CWCapital and Weil Gotshal.



The Grapevine

Fri, 15 Jun 2018
Mortgage-finance specialist Andrew Platt has taken a job as senior managing director at agency lender Sun West Mortgage. Platt had been working since 2015 as chief investment officer at Sprout Mortgage, a conduit operation focused on loans that fall outside the Bureau of Consumer Financial Protection’s “qualified-mortgage” guidelines. While Sprout hasn’t issued mortgage bonds, Platt was involved in such transactions in...



The Grapevine

Fri, 15 Jun 2018
Former Lending Club executive Sid Jajodia has landed in the top lending role at PayU, a company whose products include online small-business loans. Jajodia, who is based in Amsterdam, had been employed at Lending Club from 2013 to this April. His work there included managing a series of in-house personal-loan funds and helping to pitch some early securitizations. Earlier, he worked at Capital One. There’s no word on whether PayU plans to...



The Grapevine

Fri, 15 Jun 2018
William “Wim” Ludington, who once led structured-product sales at Canaccord Genuity, has taken a job as a partner at wealth manager Dowling Group in Greenwich, Conn. Ludington’s new job doesn’t involve securitization, nor did the one he took at insurance broker Swett & Crawford after Canaccord shuttered its broker-dealer unit in 2015. But he earlier worked in the industry at banks including CapRok Capital, UBS and J.P....



UK Student-Loan Bonds Teed Up in the States

Fri, 08 Jun 2018
A company that writes student loans in the U.K. is planning to issue asset-backed bonds, with an eye toward distributing the securities in the U.S.Future Finance already has been talking to underwriters and rating agencies, indicating that it hopes to float an offering of perhaps $150 million in late 2018 or early 2019. The collateral: private loans that it extends to individuals attending universities in the U.K.Future’s desire to sell its...



Candidate List Emerges for FHFA Leader

Fri, 08 Jun 2018
The Trump Administration is considering a short list of candidates to replace Mel Watt as head of the Federal Housing Finance Agency.The frontrunners are:Mark Calabria, chief economist to Vice President Mike Pence.Adolfo Marzol, senior advisor to HUD Secretary Ben Carson.Mick Mulvaney, director of the Office of Management and Budget and acting head of the Consumer Financial Protection Bureau.Craig Phillips, counselor to Treasury Secretary Steve...



Citi Alumni to Finance Consumer Lenders

Fri, 08 Jun 2018
Former Citigroup bankers Ari Rosenberg and David Mandel are starting a business that would back consumer lenders, with securitization as part of their strategy.The New York operation, Spot18, is forming as a unit of investment firm Sherman Financial. Rosenberg and Mandel started talking to prospective clients this week.Sources said the operation would offer warehouse lines to originators of consumer-finance products including personal loans, auto...



Upgrades Propelling MBS Rally

Fri, 08 Jun 2018
A flurry of rating upgrades is adding momentum to a continuing rise in the values of jumbo-mortgage bonds.S&P has twice raised its marks on large samplings of home-loan securities in recent months, most recently taking such actions on May 30 for 59 classes of notes issued from 2012 to 2015. Investors, anticipating additional rating increases from the agency in the coming months, have responded by accepting tighter spreads on the secondary...



Rollback Seen for "Bond-Bucket' Rule

Fri, 08 Jun 2018
Collateralized loan obligation issuers anticipate that the Federal Reserve’s Volcker Rule overhaul will again open the door to the use of bonds in their asset pools.While no explicit prohibition exists for so-called bond buckets, the Volcker Rule has since 2015 barred banks from investing in CLOs whose underlying portfolios include anything but loans — leading issuers to structure their deals accordingly.The Fed’s proposed...



Loan Science Preps Debut Offering

Fri, 08 Jun 2018
Loan Science is preparing to securitize a portfolio of private student loans.The Austin firm is working with Bank of America on a Rule-144A offering of about $200 million. The deal, with ratings from DBRS, is expected to price in the next week or so.It would be the first securitization from Loan Science, which advises student-loan investors on analyzing, managing and servicing their portfolios. The deal’s collateral encompasses some 12,000...



Santander Forecasts Steady Supply

Fri, 08 Jun 2018
Santander Consumer USA is signaling that its near-term output of asset-backed bonds won’t be hurt by the loss of its status as the preferred lender for Fiat Chrysler.That’s in part because the only receivables Santander recently was securitizing under the Chrysler Capital brand were leases. And since it will take some time for the two companies to unwind their partnership, Santander expects to continue generating collateral for fresh...



Digital Risk Chases Diligence Work

Fri, 08 Jun 2018
Digital Risk is working to become a more active supplier of due-diligence services in the non-agency mortgage market.The effort comes on the heels of a technology upgrade. While the Maitland, Fla., operation works mainly in the agency mortgage sector, it recently has sold its due-diligence services to some buyers of nonperforming and reperforming private-label loans.Digital Risk also is pitching itself to buyers of performing non-agency loans,...



Mixed Signals for CLO Pools

Fri, 08 Jun 2018
Asset-quality indicators for collateralized loan obligations issued after the credit crisis were mixed in March.For U.S. deals, median holdings of defaulted collateral fell 15 bp from the previous month to zero, matching the long-running level seen in Europe, according to Moody’s. Median holdings of loans rated “Caa1” or lower also fell, by 2 bp to 3.58% for U.S. deals and 4 bp to 1.74% for transactions in Europe. But...



Big Gains for Low-Scoring Loans

Fri, 08 Jun 2018
The performance of online personal loans with the highest risk profiles improved in May, outpacing less-risky accounts.According to a new index from Kroll, “Tier 3” loans experienced a 580 bp decline in losses for the month, to an annualized 20.15%. Delinquencies were down 68 bp, to 4.35%. The Tier 3 class tracks securitized loans to borrowers with credit scores of 630-660 from Avant and Lending Club. Improved underwriting standards...



Busy Month Ahead for ABS Issuance

Fri, 08 Jun 2018
Get ready for a fresh flow of new asset-backed bond offerings.After taking a bit of a breather in which they completed just $3.7 billion of deals this week, issuers are preparing to unleash some $30 billion of transactions before Independence Day.“I would definitely expect the next three weeks to be busy,” one banker said. “There has been a lot of marketing activity in recent days.”The heavier dealflow will be noticeable...



No Bump Seen From Fed Action

Fri, 08 Jun 2018
The Federal Reserve’s revisions to the Volcker Rule aren’t expected to lead to a big increase in structured-product trading.That’s because the largest 40 or so banks still will be subject to a ban on proprietary trading and thus won’t be able to build large in-house inventories. And smaller institutions typically aren’t in positions to create sizeable trading books.For those shops, the more likely scenario would be...



The Grapevine

Fri, 08 Jun 2018
Portfolio manager Murtaza Haque has left Sound Point Capital to join GoldenTree Asset Management. Haque had started at Sound Point in 2012 as senior analyst, following stops at Apollo Management and Bank of America. New York-based GoldenTree, led by Steven Tananbaum, invests in a range of credit products.



The Grapevine

Fri, 08 Jun 2018
Sales specialist Michael Murray left Imperial Capital on May 31 amid a move by the New York broker-dealer to unwind its structured-product business. Murray had joined Imperial in 2016. He also has worked at Nomura, Cantor Fitzgerald and Credit Suisse. His exit followed that of Keith Grimaldi, Imperial’s head of structured credit product trading.



The Grapevine

Fri, 08 Jun 2018
Sales specialist Patrick Carvell will start this month at Hunt Financial Securities of Rye Brook, N.Y. Carvell had been employed since 2010 as a vice president at KeyBank. He also has spent time at HBK Investments and J.P. Morgan.



The Grapevine

Fri, 08 Jun 2018
Ned Myers no longer is working as head of capital-markets strategy at Black Knight, a role in which he had been working to extend the Jacksonville firm’s mortgage data and analytics services into the bond market. His new employer: New York blockchain-technology company AlphaPoint. Myers had joined Black Knight in 2015 from Lewtan.



The Grapevine

Fri, 08 Jun 2018
Managing director Christopher Esposito left Duff & Phelps’ New York office last week. Esposito had joined the firm in October 2016 as a member of a team that offers valuation, risk-management and advisory services to holders of complex assets, including structured products. He served as FirstKey’s temporary chief financial officer before that, following a long run at Deloitte in which he led the accounting firm’s...



The Grapevine

Fri, 08 Jun 2018
Mortgage-analytics firm Recursion Co. has hired a head of research. The recruit, Richard Koss, had been working as an adjunct business professor at Johns Hopkins University since 2016. Before that, he led capital-markets research at Fannie Mae and managed fixed-income investments at Brown Brothers Harriman. His former employers also include CIBC and General Motors. Recursion is led by former Paulson & Co. analyst Li...



The Grapevine

Fri, 08 Jun 2018
Wells Fargo has openings for two junior mortgage-finance specialists. One of the recruits would help set up warehouse lines, with duties including preparing underwriting documents and analyzing originators’ financial data. The other would work on the securitization side, assisting in marketing efforts and communications with lawyers, accountants, due-diligence teams and traders. Both new employees would hold the title of associate and would...



The Grapevine

Fri, 08 Jun 2018
Waterfall Asset Management is seeking a vice president for its capital-markets team. The recruit would work in New York with a focus on offering warehouse lines to clients, and would help some of those operations bundle their assets into securitizations. Candidates can apply by emailing vice president Tim Geraghty at tgeraghty@waterfallam.com.



The Grapevine

Fri, 08 Jun 2018
Fiona Nelson started her new job at Barclays this week. Nelson had signed on with the bank in April as a director on a London team that helps clients finance a mix of assets, often through securitization. She had been working at Morgan Stanley since 2014. Her former employers also include Giltspur Capital, Urbanicity, Nationwide Building Society and Merrill...



US Bank Considering Card-Bond Program

Fri, 01 Jun 2018
U.S. Bank is giving serious thought to securitizing its massive portfolio of credit-card receivables, instead of relying solely on deposits.Treasury officials in the bank’s Chicago headquarters have been talking to underwriters about an initial offering of perhaps $500 million, sources said. The deal could hit the market by yearend.The initiative coincides with a separate push by U.S. Bank to expand its role as an underwriter of...



Climate Change Inspires Issuing Proposal

Fri, 01 Jun 2018
Pacific Gas and Electric is proposing a new use for utility-fee securitizations.The San Francisco company has proposed to the California Public Utilities Commission that it could deploy the proceeds from such transactions to fortify its generation facilities in the state against disasters resulting from climate change — including storms and wildfires. Should the effort move ahead, the expectation is that copycat offerings could surface...



Supply, Regs Take Center Stage in Barcelona

Fri, 01 Jun 2018
Against a backdrop of conflicting signals, industry participants are heading to this year’s “Global ABS” conference in hopes of better understanding the direction of Europe’s structured-product market.The event, hosted by the Association for Financial Markets in Europe and Information Management Network, takes place June 5-7 at the Barcelona International Convention Center.On one hand, strong new-issue supply promises to...



Dead End for "Deal Agent' Concept

Fri, 01 Jun 2018
A proposal by industry leaders including the Structured Finance Industry Group to enlist “deal agents” to monitor mortgage securitizations appears to have died.The idea of a deal agent that would work with issuers and trustees to bolster investor confidence surfaced in 2015 as the U.S. Treasury Department was developing initiatives to revive the market for private-label mortgage securities. Investors that got burned during the...



Container-Deal Volume Set to Rise

Fri, 01 Jun 2018
Get ready for a flurry of bond offerings backed by leases on shipping containers.Big suppliers including CAI International, Textainer Group and Triton International are gearing up to issue a half-dozen or more deals in the next six months or so. The combined dollar volume of the transactions could reach $3 billion.Year-to-date, container suppliers have priced four asset-backed bond offerings totaling $1.4 billion, according to Asset-Backed...



Covenant Gets Boost From AIG

Fri, 01 Jun 2018
Collateralized loan obligation issuer Covenant Credit is remaining intact as a unit of AIG.Sources said managing partner Marc Boatwright continues to lead his Charlotte-based team while retaining oversight of its CLO-issuing business, and possibly adding some personnel. With AIG already established as a large investor in such deals, meanwhile, it stands to gain a ready equity buyer.That could help Covenant become a more stable issuer, as could...



CLO Pros Sound Off on Loan Terms

Fri, 01 Jun 2018
Collateralized loan obligation investors are becoming more vocal about deteriorating asset quality.Industry participants have been grumbling about the situation since 2016, pointing to a trend in which leveraged-loan borrowers have been refinancing their debts at lower interest rates and with increasingly lax terms. But their concerns were especially palpable at Information Management Network’s annual “Investors’ Conference on...



Kayne Anderson Joins CLO Ranks

Fri, 01 Jun 2018
Kayne Anderson Capital has completed its first collateralized loan obligation.The $407 million offering priced on May 30. J.P. Morgan is running the books.Sources said Kayne Anderson employees were meeting with investors at Information Management Network’s annual “Investors’ Conference on CLOs and Leveraged Loans” on May 23-24 in New York. Overseeing the push is John Eanes, a former Ares Management senior portfolio...



Investors Get Crack at Mortgage Pool

Fri, 01 Jun 2018
Mountainview Financial is auctioning a portfolio of nonperforming home loans.The pool, with a total principal balance of more than $100 million, is expected to trade at a price of roughly 65 cents on the dollar. Mountainview, a Denver firm that supplies data and other services to issuers and investors, is conducting the auction on behalf of a West Coast hedge fund.Bids are due by 2 p.m. on June 1.The offering is expected to attract the attention...



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

Fri, 01 Jun 2018
The listing below shows contact information for the top-ranking securitization professionals at the investment banks that consistently distribute the most asset- and mortgage-backed bonds worldwide.The institutions included typically have achieved rankings atop league tables published by Asset-Backed Alert.Head bankers oversee deal origination, structuring and other areas unrelated to trading and syndicate operations. Those in charge of syndicate...



The Grapevine

Fri, 01 Jun 2018
Keith Grimaldi has exited his post as head of structured credit product trading at Imperial Capital, apparently amid a move by the New York firm to withdraw from those instruments — including asset-backed bonds, mortgage securities, collateralized loan obligations and whole loans. Grimaldi, a market veteran who arrived at Imperial in 2012, earlier held a similar position at Cantor Fitzgerald and led CDO origination and trading at UBS. He...



The Grapevine

Fri, 01 Jun 2018
Managing director Sloan Sutta has departed the structured-product investment team at Och-Ziff Capital. Sutta had joined the New York hedge fund operator in 2015 from Garrison Investment, where he held a similar role. He also has spent time at Credit Suisse and GLG.



The Grapevine

Fri, 01 Jun 2018
Huub Mourits is no longer head of structured-finance services at TMF Group, a role in which he most recently led a group that helps clients establish and run collateralized loan obligation issuing vehicles in Europe. Mourits’ plans couldn’t be learned. He joined TMF in 2001 from NIBC Bank. TMF was purchased last year by CLO issuer CVC Capital.



The Grapevine

Fri, 01 Jun 2018
Fouad Onbargi has taken a job as a vice president at Burnham Sterling, an investment-banking firm in Greenwich, Conn., that arranges a mix of aircraft-finance transactions for clients — including securitizations. Since January 2017, Onbargi ran a business called ABS Advisory Services that helped customers securitize healthcare receivables and nonperforming mortgages. He earlier led the securitization-banking group at KGS-Alpha Capital, and...



The Grapevine

Fri, 01 Jun 2018
Anthony Brown has resurfaced in the New York office of East West Bank, filling a role in which he helps arrange structured-finance transactions for commercial and industrial clients. Brown had been working until February 2017 as a senior director handling asset-backed bond originations and commercial-paper conduit deals at NordLB. He started there in 2007, after stops at Calyon, NatWest, Lehman Brothers and Citigroup dating back to...



The Grapevine

Fri, 01 Jun 2018
Senior banker Gregory Roti left Wells Fargo in early May to join the Charlotte office of Man Group. Roti had been working at Wells since 2012 as head of a group that supplies repurchase facilities and warehouse lines to originators of investment-property loans — including those that issue asset-backed bonds. He is taking a similar post at Man. Roti also has worked at River...



The Grapevine

Fri, 01 Jun 2018
MUFG Securities has an opening for a vice president. The recruit would structure asset-backed bond and asset-backed commercial paper transactions in a mix of asset classes, while also developing cashflow models for those deals. The recruit would work in New York, reporting to group head Tricia Hazelwood. Candidates can apply by emailing recruiter Lauren Pressman at...



The Grapevine

Fri, 01 Jun 2018
Morningstar has hired an analyst to cover bonds backed by mortgages and rental-home receivables. Minxi Qiu arrived as a vice president in the agency’s New York office on May 28, reporting to mortgage-bond head Kevin Dwyer. Qiu had been working at Moody’s since 2009, and before that was at Ernst & Young.



The Grapevine

Fri, 01 Jun 2018
Shirley Prada-O’Reilly has transferred off of Hunt Financial’s structured-product sales desk, taking a job as a director in the capital markets area of commercial mortgage lending affiliate Hunt Mortgage in New York. Prada-O’Reilly was among a group of former Jefferies personnel who followed former Hunt president William Jennings to the firm in 2017. She also has worked at J.P. Morgan and Bear...



"Headline Risk' Holds Up Wells' RMBS Plan

Fri, 25 May 2018
Wells Fargo has pushed back a plan to securitize newly originated jumbo mortgages for the first time since the financial crisis.With its portfolio of jumbo loans approaching $300 billion — the highest total for any bank — Wells last year began planning to revive a once-prolific mortgage-securitization program. There was talk that an initial offering of perhaps $1 billion would hit the market before yearend 2017, after which the bank...



Uber Partner Kicks Off Issuance Effort

Fri, 25 May 2018
Startup auto-leasing company Fair is developing a securitization program.Officials from the Santa Monica, Calif., company have been talking to rating-agency analysts about an initial offering that would hit the market during the second half of this year. The underlying receivables: a portfolio of leases it agreed to buy from Uber in January.Those accounts currently are financed through warehouse facilities of $500 million each that Fair recently...



Credit Agricole Lands Starr for Leading Role

Fri, 25 May 2018
Beth Starr joined Credit Agricole’s New York office this week as a managing director in charge of the bank’s asset-backed bond syndicate desk.Starr had been working until April as head of the capital-markets group at Spruce Finance, a solar-equipment lender that completed a single securitization shortly before her arrival in 2016 but more recently has struggled to stay in business.Before that, Starr helped shepherd a series of bond...



Banking Rules Open Door to Trading

Fri, 25 May 2018
A component of Congress’ Dodd-Frank Act rollback could lead to increased trading of asset-backed bonds and collateralized loan obligations.The expectations hinge on a provision in the Economic Growth, Regulatory Relief, and Consumer Protection Act, signed into law by President Trump on May 24, that renders banks with less than $10 billion of assets exempt from the so-called Volcker Rule.That’s because banks that fall under...



Ford Kicks Issuance Into High Gear

Fri, 25 May 2018
With its investment-grade rating on shaky ground, Ford is again hitting the gas on its securitization program.So far this year, the Dearborn, Mich., automaker has issued five asset-backed bond offerings totaling $6 billion, compared to four deals for $4.9 billion a year earlier. And it is still in the early stages of a plan to substantially increase its issuance of those bonds, backed by loans, leases and deal-floorplan accounts.Ford began...



Exeter Alum Eyes Auto Program

Fri, 25 May 2018
Subprime auto-lending veteran Mark Floyd’s arrival at Horizon Digital Finance is sparking rumors that the company could emerge as an asset-backed bond issuer.Horizon Digital currently focuses on matching borrowers with subprime auto lenders online under its myAutoloan.com brand. But Floyd apparently wants the Irving, Texas, company to form its own origination business that eventually would fund itself through securitization.Floyd bought a...



Retained CLOs Make the Rounds

Fri, 25 May 2018
Collateralized loan obligation issuers are unloading increasing volumes of bonds that they kept under the Dodd-Frank Act’s risk-retention rule.The offerings first surfaced in April, after a U.S. Appeals Court panel in Washington ruled that CLOs should be exempt from the skin-in-the-game requirement. But they especially picked up after the Federal Reserve and SEC let a May 10 deadline pass without appealing the decision.BlueMountain Capital,...



Supply Heats Up in Latin America

Fri, 25 May 2018
A flurry of securitizations is shaping up in Latin America.Among offerings that industry participants anticipate for this year are personal-loan deals from Brazil. They also expect more mortgage-bond transactions from Argentina, along with what could be billions of dollars of issues that would finance the construction of toll roads, bridges and other public projects in the nation.S&P said in a May 7 report that those projects are part of the...



Fitch: Used-Car Supply Poses Risk

Fri, 25 May 2018
Holders of bonds backed by subprime auto loans could be in for a bumpy ride.In a report to be released on May 29, Fitch forecasts that the supply of used cars will continue to swell, further depressing resale values. That, in turn, could hurt the performance of securitized subprime loans written against those vehicles, potentially leading to bond downgrades.“While loss frequency has been largely stable, loss severity is rising as...



PACE Rules Weigh on Bond Supply

Fri, 25 May 2018
A new California law is cutting down on originations of Property Assessed Clean Energy loans, thus reducing potential for securitizations in the space.At issue is a change to the California Financial Code that, effective April 1, requires all PACE loans in the state to include assessments of whether borrowers have a “reasonable ability” to repay their debts. The update, signed into law by Gov. Jerry Brown last October, also stepped up...



The Grapevine

Fri, 25 May 2018
Chris Haid joined BNP Paribas in recent weeks as head of asset-backed bond trading. Haid had been working in a similar capacity at Barclays from 2004 to this January, when he was caught in a round of layoffs. Before that, he was a portfolio manager at Merrill Lynch Investment Managers.



The Grapevine

Fri, 25 May 2018
Morgan Stanley has a new head of asset-backed bond trading. Bharat Chandrasekaran is expected to join the bank’s New York office by mid-June, filling a vacancy created with Dave Bell’s move to Baird in April. Chandrasekaran most recently was trading commercial mortgage bonds at Deutsche Bank, where he started in 2011 with an initial focus on balance-sheet-optimization efforts involving swaps and repurchase facilities. He also spent...



The Grapevine

Fri, 25 May 2018
Ajay Chawdhry is leaving his New York post as head of a team covering structured-product sales in North America and South America at Standard Chartered Bank. Sources said Chawdhry will wait out a gardening leave before starting a new job. He had joined Standard Chartered in 2007 after stops at Deutsche Bank, Transworld and Ernst & Young.



The Grapevine

Fri, 25 May 2018
CBAM has added a leveraged-loan trader to its collateralized loan-obligation issuing unit. Allie Fink arrived in the operation’s New York office in recent weeks from Guggenheim, where she worked since 2017. Fink also has spent time at Veronis Suhler Stevenson and Morgan Stanley. CBAM has issued six CLOs totaling $7.1 billion since entering the market in 2017. The firm is led by former Guggenheim executive Michael Damaso, one-time...



The Grapevine

Fri, 25 May 2018
Allstate has an opening on its collateralized loan obligation team in Chicago. The recruit would serve as an intermediate portfolio manager, working alongside staffers including senior portfolio manager Chris Goergen to oversee holdings of leveraged loans and corporate bonds. Allstate is focusing on candidates with 5-7 years of experience. The insurer’s CLO division oversees $2 billion of assets underpinning four deals it has issued since...



The Grapevine

Fri, 25 May 2018
Longtime securitization specialist Charles Macintosh resurfaced last month as head of sales at Lima One Capital, a Greenville, S.C., firm that writes loans to residential property investors. Macintosh had been a technology consultant to Orchard Platform from September to November, and before that headed the capital-markets business at FirstKey Mortgage. He also has worked at Sterne Agee, Morgan Keegan, Thornburg Mortgage, Merrill Lynch and Lehman...



The Grapevine

Fri, 25 May 2018
Mortgage-review firm New Diligence Advisors added two senior personnel to its Jacksonville office this month. Anthony Grasso signed on as head of compliance, moving over from a mortgage due-diligence role that he held at Mission Global since 2017. Grasso also has worked at Opus Capital, Waterworth Mortgage and J.P. Morgan. Also on board is David Littleton, a vice president responsible for technology. He was working at EverBank since 2010. New...



The Grapevine

Fri, 25 May 2018
J.P. Morgan has an opening for an analyst in its asset-backed commercial paper group. The recruit would be stationed in Chicago, working with investors and rating agencies while producing monthly asset-performance reports. J.P. Morgan runs two conduits with about $23 billion of securities outstanding.



The Grapevine

Fri, 25 May 2018
Zhengyuan Lu is headed to the New York office of Silicon Valley Bank, with the mission of offering financing to a mix of online loan originators. Lu had been working in a similar capacity at Victory Park Capital since 2016, and before that spent time at OnDeck Capital, Gleacher & Co., Keefe Bruyette & Woods, Fortis Bank and WestLB.



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Amherst PierpontContact: Erez Biala646-776-7826ebiala@apsec.comErez Biala646-776-7826ebiala@apsec.comWith secondary-market trading slow across the board, the firm has been arranging refinancings of existing deals. Erez Biala, who arrived in 2016 from Jefferies, hopes to build a full-fledged origination business. Sales staff includes former Guggenheim trader Joe Guzzi.NOTE: Complete listing appeared in May 18, 2018, issue of Asset-Backed Alert and...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Auriga USAContact:Paul Pasqua646-998-6453paul.pasqua@aurigausallc.comAfter backing away, returned to secondary-market trading with the March hiring of Paul Pasqua. He had been working at StormHarbour Securities, where origination business evaporated.NOTE: Complete listing appeared in May 18, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Market...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
BairdContact:David Barrish646-557-3237dbarrish@rwbaird.comContinued to build up busy secondary-market trading operation this month with the addition of sales specialist Darryl Smith, who just shut down a rival unit at ED&F Man. The move gives Baird two CLO sales specialists, augmenting a broader structured-product sales team.NOTE: Complete listing appeared in May 18, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Bank of AmericaContact: Wynne Comer646-855-7771wynne.comer@baml.comEd Tang646-855-8562edward.c.tang@baml.comCharles Hand44-207-996-7964charles.hand@baml.comAlex Murdzhev646-855-9680aleksandar.murdzhev@baml.comLeap in volume led to a number-two league-table ranking in 2017, reversing a drop in 2016. And that doesn’t include a heap of refinancing work. Wynne Comer leads origination, with Ed Tang heading syndication and Charles Hand overseeing...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
BarclaysContact: Jonathan Kitei212-412-2035jonathan.kitei@barcap.comAdrian Radulescu212-412-1310adrian.radulescu@barclays.comSebastien Illat44-207-773-3821sebastien.illat@barclays.comSam Oher212-526-0998samuel.oher@barclays.comMichael Clarke44-207-773-5339michael.clarke@barclays.comU.S. staff buildup has paid off, with above-market growth complementing status as a go-to underwriter in Europe. In just the last month, hired CLO co-head John...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
BNP ParibasContact: Adnan Zuberi212-841-3877adnan.a.zuberi@us.bnpparibas.comDushy Puvan44-207-595-8500dushy.puvan@uk.bnpparibas.comOmar Chaudhry212-471-8252omar.chaudhry@us.bnpparibas.comMehdi Kashani44-207-595-1819mehdi.kashani@uk.bnpparibas.comMaintains a stable presence just a step below the most active banks. Standing has been aided by generous warehouse financing and structuring flexibility, including conversions of dollar-denominated paper...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Brean CapitalContact:Richard Barry212-702-6585rbarry@breancapital.comPouya Minazad212-702-6527pminazad@breancapital.comLike its peers, has felt the effects of slow secondary-market trading. Has kept active, however, and was buoyed by recent volatility. Richard Barry set up the operation in 2015 with focus on mezzanine and equity trades, drawing on a deep contact list.NOTE: Complete listing appeared in May 18, 2018, issue of Asset-Backed Alert and...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Brownstone InvestmentContact:Marc Steinberg212-905-0546msteinberg@brownstone.comHas gradually claimed trading business following the 2016 hiring of Eric Steinberg, formerly of ED&F Man, Guggenheim and Morgan Stanley. Additions on the sales side also have helped.NOTE: Complete listing appeared in May 18, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Market...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Cantor FitzgeraldContact:Ervin Pilku212-829-5259epilku@cantor.comFocused on secondary-market trading for now, but has been seeking an origination head. That addition would supplement a broader structured-product push under the leadership of former Deutsche Bank executive Anshu Jain.NOTE: Complete listing appeared in May 18, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Market...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
CitigroupContact: Jim Hughes212-723-1120jim.hughes@citi.comEric Velay44-207-986-1227eric.velay@citi.comLaura Coady44-207-986-1304laura.coady@citi.comBrian Bejile212-723-1024brian.bejile@citi.comVitaliy Kozak44-207-986-3702vitaliy.kozak@citi.comMaintaining usual status as the market’s busiest underwriter. But outsiders see it as vulnerable without former origination co-head John Clements, who left after Jim Hughes was promoted to lead the...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Credit SuisseContact: Brad Larson212-325-9207brad.larson@credit-suisse.comArun Cronin44-207-888-3449arun.cronin@credit-suisse.comBrian Hochhauser212-325-3563brian.hochhauser@credit-suisse.comSlipped out of the top-five underwriters of new deals, but has kept active in the refinancing business. After a string of exits dating back to 2015, tumult continued on the secondary-market desk with this month’s ouster of Carlos Garza and installation...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Deutsche BankContact: Francis McCullough212-250-2530francis.mccullough@db.comSebastien Cottrell212-250-7553sebastien.cottrell@db.comAnna Farbiszewska212-250-7553anna.farbiszewska@db.comMatthew Matson212-250-7553matthew.matson@db.comJohn Parker44-207-547-3157john.parker@db.comStill trying to regain former top-10 status, with 2017 growth trailing market levels. Head trader Francis McCullough moved from London to New York last year. Team remains...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Goldman SachsContact: Amit Roy212-357-2019amit.roy@gs.comKamal Ramnani212-357-0077kamal.ramnani@gs.comHas climbed farther into the top-10 underwriters this year. Trading head Sameer Maru stepped aside in April, with his more market-facing colleague, Kamal Ramnani, promoted to oversee the desk. Leadership on the banking side is unchanged.NOTE: Complete listing appeared in May 18, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com,...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
GreensLedge CapitalContact: Ken Wormser212-796-6551kwormser@greensledge.comBrian Zeitlin212-792-5272 bzeitlin@greensledge.comPaul Levy44-203-440-3034plevy@greensledgeuk.comJean-Manuel Costa44-203-440-3031jmcosta@greensledgeuk.comJim Kane212-792-5271jkane@greensledge.comDavid Powar212-796-6552dpowar@greensledge.comBusiness fell off slightly last year, despite market growth. The dip was offset by refinancing work, although the firm hasn’t...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
GuggenheimContact: Mario Verna212-293-3970mario.verna@guggenheimpartners.comBryan Gonnella212-518-9544bryan.gonnella@guggenheimpartners.comEnded a drought on the underwriting side last year, with assignments from issuers including ArrowMark Partners, Highland Capital and New York Life. Dealflow remains sporadic, but is supplemented by other work. Lost head trader Nirjhar Jain to hedge fund manager LibreMax Capital in November, and promoted Bryan...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Hunt FinancialContact:Jiwon Park914-701-1028jiwon.park@huntfinsecurities.comPaul Tedeschi914-701-1028paul.tedeschi@huntfinsecurities.comJoined the secondary-market trading business with the August hiring of Jiwon Park from KeyBank. Added Paul Tedeschi from Spring Hill Capital in November. The effort is part of a broad push into structured-product trading and origination.NOTE: Complete listing appeared in May 18, 2018, issue of Asset-Backed Alert...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
J.P. MorganContact: Sean Griffin212-834-5532sean.p.griffin@jpmorgan.comShivraj Bhushan212-834-2424shivraj.s.bhushan@jpmorgan.comMatt Carpenter44-207-134-0709matthew.carpenter@jpmorgan.comBusiness as usual for top-five origination team, thanks in part to busy leveraged-loan syndication business. But trading desk was shaken up by Kristen Erickson’s February move to TPG. Her duties now belong to Shivraj Bhushan in New York and Matt Carpenter...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Janney Montgomery ScottContact:Clay Brasher212-888-2931cbrasher@janney.comFortified sales staff with the March addition of Anthony Veltri from ED&F Man. He concentrates on equity buyers, while Jeff Bertoni and Ross Heller place mezzanine bonds. Priority remains trading, with no plans to expand into origination.NOTE: Complete listing appeared in May 18, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
JefferiesContact: Jason Schechter212-336-7176jschechter@jefferies.comJason Schechter212-336-7176jschechter@jefferies.comMore or less keeping pace with the market, sitting just outside the top-10 underwriters. Has an outsized presence in longer-term refinancings that reset deal terms. But efforts in Europe have been sluggish, with London managing director Sharif Anbar-Colas leaving in London.NOTE: Complete listing appeared in May 18, 2018, issue...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
KGS-AlphaContact:Richard Rizzo646-560-7048rrizzo@kgsalpha.comAlready a force on the secondary market, KGS-Alpha is attracting attention for what it might do after a pending takeover by BMO. Early expectations are a further expansion under Richard Rizzo, who once led CLO trading at Deutsche Bank.NOTE: Complete listing appeared in May 18, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Marv CapitalContact:Alexey Drono212-244-7561adronov@marvcapital.comRaised profile with the 2016 hiring of equity-focused trader Alexey Dronov, formerly of Highland Capital. He works under Manish Awasthi and Raparthi Virupaksha.NOTE: Complete listing appeared in May 18, 2018, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Market...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
MizuhoContact: Steve Kahn212-205-7568steven.kahn@us-mizuho-sc.comHao Jiang212-205-7598hao.jiang@us-mizuho-sc.comJim Stehli212-205-7568james.stehli@us.mizuho-sc.comAmit Khurana212-205-7568amit.khurana@us.mizuho-sc.comHasn’t led a new deal since 2015, but has been helping clients refinance existing transactions. And with secondary-market trading also slow, recently dismissed some personnel from what was an over-manned sales team.NOTE:...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Morgan StanleyContact: Loris Nazarian212-761-4756loris.nazarian@morganstanley.comRachel Russell212-761-2832rachel.russell@morganstanley.comOrestis Millas44-207-677-8119oristis.millas@morganstanley.comRebecca Dorrian212-761-2102rebecca.dorrian@morganstanley.comHas continued to solidify its business after layoffs and leadership changes in 2016, ranking as one of the busiest underwriters of new deals while handling heavy refinancing volume. Already...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
MUFGContact: Asif Khan212-405-7360akhan@us.sc.mufg.jpSean Gibson212-405-7493sgibson@us.sc.mufg.jpContinued to pick up underwriting and refinancing business last year, with a modest flow of assignments. Drummed up work, in part, by hosting conferences in Asia that introduce U.S. issuers to investors across the region. This year’s stops were in Hong Kong, Shanghai and Tokyo.NOTE: Complete listing appeared in May 18, 2018, issue of...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
NatixisContact: Alex Zilberman212-891-5870alex.zilberman@us.natixis.comReggie Fernandez212-891-1979reginald.fernandez@us.natixis.comDealflow has kept up with market growth despite high-level staff departures in recent years. But the biggest challenge may have come this April, when Mike Hopson left for Barclays. Outsiders think issuers of bonds backed by mid-size loans might follow him, relegating Alex Zilberman to work mostly on issues secured by...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
NomuraContact: Nate Weber212-667-2284nathaniel.weber@nomura.comAnton Lokho212-667-2230anton.lokhov@nomura.comBen Ufer212-667-2406benjamin.ufer@nomura.comGiven its status as perhaps the most active player on the secondary market, the bank has felt the effects of a broad trading slowdown more than most. Already-slow underwriting business took another hit with the October exit of head structurer Cary Ho for CVC Capital. Nate Weber has absorbed his...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
RBC CapitalContact: Russell Pemberton212-618-7765russell.pemberton@rbccm.comTom Hasse212-618-7723thomas.hasse2@rbc.comNew-issue supply has slowed, but pipeline is robust and refinancing activity has been decent. Previously attracted clients by offering risk-retention financing, but this year lost that ability with the defanging of the Dodd-Frank Act’s skin-in-the-game rule. Cut loose head trader Florian Bita in April and installed colleague...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Societe GeneraleContact: Harry Huang212-278-5978harry.huang@sgcib.comHong Zhao212-278-5686hong.zhao@sgcib.comUnderwriting assignments remain characteristically scarce, although there are deals in the pipeline. Weighing a move into Europe’s growing market. Bogomil Ivanov, formerly of Seer Capital and Deutsche Bank, joined structuring team in October.NOTE: Complete listing appeared in May 18, 2018, issue of Asset-Backed Alert and can be found...



LISTING: Leading CLO Market Makers

Sat, 19 May 2018
Wells FargoContact: Kevin Sunday704-410-2384 kevin.sunday@wellsfargo.comJason Powers704-410-2490 jason.a.powers@wellsfargo.comSergei Zagin704-410-3315 sergei.zagin@wellsfargo.comHas trailed other large banks in refinancing volume. But new-issue underwriting business remains solid, with this year’s client list including Cerberus Capital, Goldentree Asset Management and GSO Blackstone. Scope includes deals backed by loans to both large and...



Gushing Market Sets Tone for CLO Summit

Fri, 18 May 2018
Despite some signs of trouble down the road, bullish sentiments are expected to prevail at Information Management Network’s annual collateralized loan obligation conference.The “Investors’ Conference on CLOs and Leveraged Loans,” scheduled for May 23-24 at the Sheraton New York Times Square Hotel, has a projected headcount of 1,400. While that’s up only slightly from the gathering’s 2017 tally, it includes a...



Agency-Eligible Loans Headed for MBS Pools

Fri, 18 May 2018
Several issuers of jumbo-mortgage bonds are about to start incorporating loans that meet agency standards into their securitization pools.The issuers, including EverBank, Flagstar Mortgage and J.P. Morgan, have been discussing their plans with rating-agency analysts and investors. Their motivation: to take advantage of an improving market for jumbo-mortgage deals, where funding costs have fallen roughly in line with those for agency-loan...



Leading CLO Attorney Moving to Milbank

Fri, 18 May 2018
In a move that could affect both firms’ business volumes, collateralized loan obligation attorney Sean Solis is leaving Dechert to join Milbank Tweed.As a partner reporting to Charlotte-based group head John Timperio, Solis was the highest-ranking member of Dechert’s CLO practice in New York. He leaves today and starts at Milbank on May 21, also in New York.Sources said some or all of the six associates working under Solis will...



Unease Surrounds Low-Doc Loans

Fri, 18 May 2018
Mortgage-bond professionals are expressing wariness about recent inclusions of “bank-statement” loans in securitization pools.Such accounts, offered to subprime borrowers, are so named because their approvals are based mainly on bank statements rather than tax records, pay stubs or other more-reliable forms of income documentation. While such products have existed for a while, they just now are spreading as bond collateral —...



CapOne Preps Next Loan Offering

Fri, 18 May 2018
Encouraged by strong demand for its last portfolio of reperforming home loans, Capital One is preparing to auction another pool of dented mortgages.The next offering — encompassing reperforming loans — is expected to hit the market in the next six weeks or so. Wells Fargo will manage the auction process, as it did for a $17 billion pool CapOne sold on May 7.CapOne executives were pleased with the results of that transaction, which...



Mutual Funds Drive CLO Demand

Fri, 18 May 2018
Mutual funds continue to gobble up collateralized loan obligations.The 22 most active structured-product buyers among multi-asset mutual funds tracked by Wells Fargo absorbed another $1.6 billion of CLO paper in the first quarter, bringing their holdings to $29.4 billion. That’s up from $28 billion at yearend and $26.4 billion at the end of the third quarter of 2017, according to a May 15 report from Wells analyst Gary Zhu.The outlook for...



MetLife Broadens Issuing Push

Fri, 18 May 2018
MetLife is expanding its presence as a mortgage-bond issuer.Sources said the insurer is in the early stages of an initiative in which it would offer bonds backed by performing jumbo and subprime loans, along with nonperforming accounts. The push would complement a program that saw it start issuing reperforming-mortgage securities in November.The next wave of transactions is expected to begin with a jumbo-loan deal in the second half of this year,...



Utility-Fee Proposal In Limbo

Fri, 18 May 2018
A push to issue utility-fee bonds in Missouri is likely to be delayed as state lawmakers focus on the possible impeachment of Gov. Eric Greitens.The securitization effort began with Sen. Paul Wieland’s Jan. 29 introduction of a bill that would allow power companies to use securitization proceeds to cover costs associated with the decommissioning coal-fired plants. But the Republican lawmaker’s measure now appears to be among a number...



PACE Poised to Spread to Europe

Fri, 18 May 2018
A pilot project in Spain could pave the way for securitizations of Property Assessed Clean Energy loans in Europe.Working with grant money from the European Commission, GNE Finance of Barcelona has won local approvals to lend money to homeowners and businesses for clean-energy expenditures including solar panels and more efficient heating and cooling systems — adopting the same PACE name that applies to similar programs in the U.S. The...



Gramins Seeks Reversal in Fraud Case

Fri, 18 May 2018
Attorneys for former Nomura trader Michael Gramins have submitted a motion seeking to vacate a 2017 conviction for securities fraud.The May 7 filing in U.S. District Court in Hartford cites the recent acquittal of former Cantor Fitzgerald trader David Demos on similar charges, and a U.S. Appeals Court ruling vacating the conviction of former Jefferies trader Jesse Litvak. Demos, Gramins and Litvak all were accused of over-charging clients for...



Pipeline Refilling With CLO Refis

Fri, 18 May 2018
Another rush of collateralized loan obligation refinancings is shaping up for July.The exchanges would continue a trend in which such transactions have been taking place at a rapid clip, with the heaviest volumes corresponding with payment dates shortly after the end of each calendar quarter. And as was the case when the last wave hit in April, the expectation is that the activity could temporarily put pressure on market technicals.For example,...



Leading Collateralized Loan Obligation Underwriters

Fri, 18 May 2018
The listing below shows contact information for the senior-most bankers and traders in the collateralized loan obligation market.Many of the investment banks and brokerage firms included are the same ones that have appeared atop Asset-Backed Alert’s underwriter league tables. They also include broker-dealers that don’t maintain large underwriting operations, but are active on the trading side.Heads of CLO banking oversee deal...



The Grapevine

Fri, 18 May 2018
John Lennon no longer is working as MUFG’s head of asset-backed bond trading. Lennon exited the bank’s New York office around the beginning of this month. His plans are unknown. He had joined MUFG in 2013, after stops at Credit Agricole, UBS, BNP Paribas and J.P. Morgan. David Cannon is absorbing his duties.



The Grapevine

Fri, 18 May 2018
Former Citigroup collateralized loan obligation specialist Todd Fritchman has turned up at Morgan Stanley, with a continued focus on arranging deals backed by loans to mid-size companies. Fritchman is expected to arrive in Morgan Stanley’s New York office soon, joining a team that ranks high on the list of CLO underwriters but has handled just one “middle-market” transaction so far in 2018 — a $1 billion offering from Ares...



The Grapevine

Fri, 18 May 2018
Jonathan Chin joined Guggenheim’s collateralized loan obligation underwriting team in New York last week as a director. Chin most recently held the title of chief operating officer for the CLO-issuing program at NewMark Capital, where he worked since 2013, and before that led an analytics and reporting effort at Guggenheim. He also has spent time at Hiscox USA and BNY...



The Grapevine

Fri, 18 May 2018
Sharif Mahdavian joined Kroll’s New York office in March as a senior director focused on rating mortgage-backed securities. Mahdavian had been employed since 2016 at risk-management firm ComplianceEase, and before that was at LenderLive and S&P. At Kroll, he reports to mortgage-bond head Jack Kahan.



The Grapevine

Fri, 18 May 2018
Chief executive Jerry Schiano parted ways with New Penn Financial in April. While there’s no official word on the reason for Schiano’s exit, the move came ahead of the planned midyear purchase of the mortgage lender’s parent, Shellpoint Partners, by New Residential Investment. He had launched the Plymouth Meeting, Pa., operation in 2008, after founding Wilmington Finance and spending time at ContiMortgage. He also continues to...



The Grapevine

Fri, 18 May 2018
A U.S. District Court judge in New Haven, Conn., has ordered the return of $2 million of fines that former Jefferies trader Jessie Litvak paid upon his January 2017 conviction on charges that he improperly altered mortgage-bond documents. The May 13 directive resulted from a U.S. Appeals Court decision this month that vacated that decision — a move that saw Litvak released eight months into a two-year prison sentence. The U.S. Justice...



The Grapevine

Fri, 18 May 2018
One-time Credit Agricole executive Gary Miller has signed on as a consultant to Genesis Block, a New York startup that advises clients on their blockchain-technology ventures. The assignment is separate from Miller’s role as head of a firm called Blockchain Consulting that he started in 2015, after leaving investment firm Verum Capital. Miller is best known among securitization professionals as the former head of a 24-person team at Credit...



The Grapevine

Fri, 18 May 2018
The whereabouts of former Banco Santander executive Javier Canseco have come to light. It turns out Canseco, who left his post as the bank’s head of European asset-backed bond trading in January, is taking graduate courses in analytics at a training program called Datahack in Madrid. He had been working at Santander since 2014.



Citi Execs Restless Over Leadership Changes

Fri, 11 May 2018
One of Citigroup’s top collateralized loan obligation professionals has left the bank amid a restructuring that increasingly is looking like the cause of a broader series of departures.John Clements, who had been co-heading Citi’s CLO team alongside Jim Hughes, jumped ship this week after Hughes was promoted to lead the group a layer above him. Clements’ destination: Barclays, where he will head CLO origination.Both Clements and...



OneMain Downplays ABS in Funding Shift

Fri, 11 May 2018
OneMain Financial wants to rely more on unsecured corporate debt to fund its massive portfolio of consumer loans — a shift that would reduce the amount of asset-backed securities it issues.Over the next year or two, the Evansville, Ind., lender plans to increase its issuance of high-yield corporate bonds until they meet 50% of its funding needs, up from 40% at yearend 2017. At the same time, it would curtail its securitization volume by a...



Rumor Mill Churns Amid KeyBank Departures

Fri, 11 May 2018
A continuing series of staff departures is prompting speculation about the future of KeyBank’s structured-product brokerage unit.While there’s no official word on the fate of the operation, some industry participants see the moves as a sign its days might be numbered. Others suggest the bank merely is paring down to reflect a market-wide decrease in trading activity.Either way, many of the sales and trading professionals that Key...



Forklift-Loan Program In the Works

Fri, 11 May 2018
Forklift manufacturer Hyster-Yale Group is exploring securitization as a funding source for its lending arm.Executives from the Cleveland company discussed the idea of starting an asset-backed bond program with bankers in recent weeks. They also inquired with rating-agency officials about the possibility of achieving triple-A grades for the deals.Should Hyster-Yale move forward, sources said offerings could start flowing by midyear 2019 —...



Sprint, T-Mobile Map ABS Program

Fri, 11 May 2018
Finance executives at Sprint and T-Mobile are working on plans to begin securitizing lease payments on their customers’ mobile devices, should regulators approve T-Mobile’s planned acquisition of Sprint.The two companies separately have spent several years trying to develop securitization programs to fund billions of dollars of cell-phone leases, but neither one has completed a deal. Meanwhile, Verizon has sold $7.5 billion of bonds...



Credit Suisse to Package Reperformers

Fri, 11 May 2018
Credit Suisse’s purchase of a massive portfolio of reperforming mortgages from Capital One positions the bank to conduct a large-scale series of securitizations.The bank would offer the securities under its DLJ Mortgage Capital label, drawing from a $17 billion loan portfolio it agreed to buy from CapOne on May 7. The first issues are expected to hit the market soon after the purchase closes, which is likely to happen by midyear.Whatever...



No Letup in LendingClub Supply

Fri, 11 May 2018
LendingClub is moving ahead with its latest securitization despite accusations from the Federal Trade Commission that it hid fees from borrowers.The $300 million offering is scheduled to hit the market this month with Citigroup running the books. It will be backed by prime-quality loans.While industry participants don’t expect the FTC’s allegations to derail the offering, one investor said the bonds might price at slightly higher...



CLO Newcomer Adds Key Piece

Fri, 11 May 2018
Startup investment firm Flat Rock Global is laying the groundwork for a collateralized loan obligation program.The deals would be backed by loans Flat Rock writes to mid-size businesses through Flat Rock Capital, a private fund structured as a business development company. It could take some time before an offering materializes, however.Industry participants believe the New York firm is serious about the effort. A key reason: This week, it hired...



Asset Sales Aid CLO Pools

Fri, 11 May 2018
Asset-quality indicators improved in February for collateralized loan obligations issued after the credit crisis.Among U.S. deals, median holdings of loans rated “Caa1” or lower fell 6 bp during the month to 3.74% in the U.S., according to Moody’s. In Europe, a 20 bp drop brought the figure down to 1.80%. Meanwhile, holdings of defaulted assets fell 2 bp bp in the U.S., to 0.25%, while remaining at zero in Europe. Deals in both...



Canadian MBS Deals in the Works

Fri, 11 May 2018
An increasing number of lenders are poised to securitize Canadian home loans that don’t carry government guarantees.Bank of America, First National Financial and Paradigm Mortgage have been meeting with rating agencies as part of broader efforts to develop securitization programs for such accounts. Sources said BofA is furthest along, and already has met with originators in Canada about supplying collateral loans. While the timing of an...



Auto-Loan Indicators Run Strong

Fri, 11 May 2018
Securitized pools of prime-quality auto loans performed at some of their best-ever levels during the month ended April 15.According to an index maintained by Fitch, delinquencies within those portfolios fell 8 bp during the period to 0.29% — a level last seen in May 2015, just one month after the all-time low of 0.28% was set. Losses also dropped 2 bp to an annualized 0.60%. Improvements were seen in subprime-loan pools as well, with...



DealVector Addresses Libor Issue

Fri, 11 May 2018
DealVector has added a feature to its electronic messaging service: an online forum where structured-product issuers and investors can discuss changes to Libor.Libor Hub, which went live May 8 at liborhub.com, is open to market participants who want to share ideas about replacing Libor as a key benchmark following a move by the U.K. Financial Conduct Authority last year to release banks from their obligation to report the rates, effective...



Canada Firm Hosts Marketplace Pros

Fri, 11 May 2018
Kilgour Williams Capital is conducting a marketplace-lending forum on June 13.The meeting, at the investment-banking firm’s Toronto headquarters, is aimed at promoting trades among originators and buyers of online personal loans, small-business loans and mortgages in the U.S. and Canada.Kilgour Williams currently runs Canada’s only hedge fund aimed specifically at marketplace-loan investments, KiWi Private Credit Fund. That vehicle...



The Grapevine

Fri, 11 May 2018
Carlos Garza is no longer head of collateralized loan obligation trading at Credit Suisse. Garza joined the bank in 2003 as a mortgage-bond trader. He took his most recent position in 2016 after risk-shedding measures led to a series of higher-level staff exits. His plans are unknown.



The Grapevine

Fri, 11 May 2018
Industry veteran Jerry Marriott is retiring. Since 2013, Marriott has been advising clients in the U.S. and Canada on regulatory matters via his Toronto-based Eastmount Financial. He originated and structured asset-backed securities, mortgage bonds and commercial-paper conduit deals at National Bank Financial before that, and held a number of senior positions at DBRS. He also spent time in Bank of Montreal’s structured-finance...



The Grapevine

Fri, 11 May 2018
Collateralized loan obligation sales specialist Darryl Smith has joined the New York office of broker-dealer R.W. Baird & Co. Smith most recently started and led the CLO unit at ED&F Man, which like his new employer competes directly with larger banks in the sector. He had arrived there in 2014, after stops at RBS, Bear Stearns, Citigroup and Chemical Bank. At Baird, he works under former Credit Suisse trader David...



The Grapevine

Fri, 11 May 2018
SMBC Nikko has hired an executive director to help head a push into collateralized loan obligation underwriting. Daniel Strong joined the bank’s New York office in April from Capital One’s financial-institutions group, where he worked since 2016. Strong also has helped oversee CLO structuring at Natixis, and spent time at S&P.



The Grapevine

Fri, 11 May 2018
Partner Lewis Cohen left the securitization unit at Hogan Lovells on April 29 to start his own law firm. Cohen’s practice would focus on blockchain technology, including its use in capital-markets applications. He had joined Hogan Lovells in 2014, following a long stretch at Clifford Chance and a stop at Simpson Thacher. He serves as co-chairman of the Structured Finance Industry Group’s blockchain-technology task...



The Grapevine

Fri, 11 May 2018
Risk-management head Shahzad Kazi no longer is working at Solar Mosaic. His next move couldn’t be learned. Kazi had arrived at the Oakland, Calif., lender in 2016 from Sindus Group. Mosaic, which writes loans on residential solar-power equipment and other energy-saving upgrades, has completed two securitizations totaling $681.8 million since launching a bond-issuing program in...



The Grapevine

Fri, 11 May 2018
Trader Andrew Dobbin started this week in the New York office of broker-dealer R.W. Pressprich & Co. His coverage areas include performing asset-backed securities and high-yield corporate bonds, along with distressed debt. Dobbin most recently worked at Cowen & Co. since 2014, and before that was at Swedbank, Rodman & Renshaw, Quadrex Securities, Wolfe & Hurst, Prudential and J.B. Hanauer &...



The Grapevine

Fri, 11 May 2018
Morningstar added an analyst to its New York office on May 7. As an assistant vice president, Bryan Li rates new deals and performs surveillance on existing ones under asset-backed bond chief Rohit Bharill. Li had been employed at Moody’s since 2013. Before that, he was at Credit Suisse.



The Grapevine

Fri, 11 May 2018
Michael Dean resurfaced in April at OceanFirst Bank, with the task of starting a group that would invest on behalf of the Red Bank, N.J., institution’s retail-banking clients. Dean most recently headed issuer relations for Kroll’s asset-backed bond rating group from May 2017 until this January. Before that, he co-headed asset-backed bond ratings at...



The Grapevine

Fri, 11 May 2018
Kroll is putting the finishing touches on credit-quality standards it will use in grading collateralized loan obligations — a new area for the agency. The New York company plans to release its CLO-rating criteria on May 16. While Kroll has rated a few commercial real estate CLOs, the agency hasn’t before graded securitizations of leveraged loans. Moody’s is the most active rating agency in the CLO market, followed by Fitch and...



Navient Lays Groundwork for Mortgage Push

Fri, 04 May 2018
Navient is considering the launch of a mortgage-lending arm that it would fund in part through securitization.The lending side of the effort would tie in with plans to expand a student-loan origination business Navient inherited with its November purchase of Earnest. Eventually, the Wilmington, Del., company hopes to transform the operation into a broad source of consumer financing, including home loans offered under its own brand.Early...



Personnel Shuffle Points to CLO Shakeup

Fri, 04 May 2018
A recent series of personnel shifts could disrupt the balance of power among banks that underwrite collateralized loan obligations backed by the debts of mid-size businesses.Managing director Michael Hopson and lieutenant Lorraine Medvecky resigned from Natixis a few weeks ago to join Barclays, where they will start in a few months. And director Todd Fritchman left Citigroup, destination unknown.Hopson and Fritchman, along with Wells Fargo...



Group Proposes Twist on Stranded Costs

Fri, 04 May 2018
A California trade group is suggesting that two energy companies in the state team up to float a massive securitization.The California Community Choice Association’s plan calls for Pacific Gas and Electric of San Francisco and Southern California Edison of Rosemead to carry out a joint offering of some $2.5 billion by yearend. It proposed the idea to the California Public Utilities Commission on April 3, with the pitch that it could reduce...



Big Buyers Return to Jumbo Market

Fri, 04 May 2018
Institutional investors are taking a fresh look at jumbo-mortgage products.In the past few months, a number of insurers and large asset managers that had largely avoided the market since the credit crisis have begun buying newly issued bonds and, in some cases, portfolios of whole loans. Sources said the list includes AIG, MetLife and Pacific Mutual.“A year ago, you were lucky to have maybe up to a dozen investors in a jumbo deal,”...



Starr Steps Down From Solar Lender

Fri, 04 May 2018
With employer Spruce Finance struggling to stay afloat, longtime securitization specialist Beth Starr has left the company.As Spruce’s head of capital markets, Starr was the primary employee responsible for securitizations and sales of its receivables — mainly loans that funded purchases of solar panels and other energy-efficiency products. But the San Francisco company has been telling partners in recent weeks that it was ending its...



Court Actions Buoy Ex-Nomura Traders

Fri, 04 May 2018
Attorneys representing former Nomura mortgage-bond traders Michael Gramins and Ross Shapiro will press to have the charges dismissed following favorable outcomes for two other accused traders.On May 3, a U.S. District Court jury in Hartford, Conn., found former Cantor Fitzgerald trader David Demos not guilty on five counts of securities fraud. The same day, U.S. Court of Appeals tossed out the conviction of former Jefferies trader Jesse Litvak,...



Hunt Swings Back at Jennings

Fri, 04 May 2018
Disputing a wrongful-termination lawsuit from former president William Jennings, Hunt Cos. claims it was justified in firing him.Hunt presented its arguments in an April 27 follow-up to a motion to dismiss the case, telling the U.S. District Court in New York that Jennings’ Feb. 1 removal followed an “escalating period of insubordination and brinksmanship.” Without providing specific details, the firm wrote that Jennings was...



Partners Group Readies US CLO

Fri, 04 May 2018
Partners Group is moving ahead with plans to issue collateralized loan obligations in the U.S.The firm is expected to come to market in the coming weeks with its first such deal, a $400 million offering dubbed Pikes Peak 1. Credit Suisse will run the books.From there, Partners would float two or three CLOs per year.The Zug, Switzerland, firm signaled its intention to enter the U.S. market with its February hiring of New York-based portfolio...



MBS Runoff Saps Insurers' Holdings

Fri, 04 May 2018
Life insurers’ holdings of non-agency mortgage bonds continue to run off faster than the companies can replace them.The world’s 28 largest insurers saw their portfolios of non-agency mortgage securities shrink by a combined $8 billion in 2017, to $60 billion, according to an April 11 report from Wells Fargo. That compares to a $3 billion decline in 2016 — with an even larger drop projected for this year.“I wouldn’t...



Candlewood Partners Divide Up Firm

Fri, 04 May 2018
Candlewood Investment is splitting in two.The debt-fund manager, formed via the 2010 spinoff of a Credit Suisse hedge fund unit, has broken off its structured-product and asset-finance investment team as Medalist Partners. Candlewood, meanwhile, continues to manage two distressed-debt funds.Former Candlewood partners Brian Herr and Greg Richter have moved to Medalist, with Herr in the role of chief investment officer and Richter serving as chief...



Tech Firm Gains Traction

Fri, 04 May 2018
A startup that matches investors with a mix of loan originators is signing up clients at a rapid clip.Finitive has been adding one new subscriber a day for its technology since April 10, when it said it already had lined up $1.3 billion of sales involving personal loans, renewable-energy receivables and commercial mortgages.Most of the incoming users are loan buyers with more than $1 billion of assets each, with one weighing in at more than $100...



The Grapevine

Fri, 04 May 2018
Ken Kroszner has left Bayview Asset Management, where he established a collateralized loan obligation investment program, to pursue a similar mandate at Wellfleet Credit. Kroszner had joined Bayview in 2014 from RBS. He starts at Wellfleet next week. The Greenwich, Conn., unit of Littlejohn & Co. also is an issuer of CLOs, having completed six such deals totaling $2.5 billion since it was set up in 2015 by Scott McKay and Dennis...



The Grapevine

Fri, 04 May 2018
Longtime securitization specialist Peter Ostrem has resigned from PayPal to join the capital-markets unit at BlueVine, a Redwood City, Calif., firm that offers invoice factoring and credit lines to small businesses. As head of personal-loan operations at PayPal, Ostrem was rumored to be working on a securitization program. He had joined the company via its 2017 takeover of Swift Capital, where he started in 2015. Ostrem is best known in...



The Grapevine

Fri, 04 May 2018
Citigroup hired mortgage-bond trader Robert Sheridan in April, installing him as a director in its New York office. Sheridan had been working at Mizuho since June 2017, and before that was at BNP Paribas, Deutsche Bank and General Electric.



The Grapevine

Fri, 04 May 2018
Vice president Erica Dorfman has left the capital-markets arm of Social Finance, where her work encompassed tasks related to the San Francisco company’s securitizations of student loans, personal loans and mortgages. Word on the street is that she is headed to credit-card lender Tally. Dorfman joined SoFi in 2016, and before that was at BDT Capital and J.P....



The Grapevine

Fri, 04 May 2018
Education lender CommonBond has an opening for a director in its capital-markets unit in New York. The recruit would develop cashflow models and structures for the company’s securitizations, and would seek investors. He or she would report to capital-markets head Samuel Luk. Commonbond is focusing on candidates with at least seven years of experience. The company so far has completed six securitizations totaling $1.1 billion. Candidates can...



The Grapevine

Fri, 04 May 2018
Tesla is seeking an attorney to work on its auto-lease securitization program. The recruit would fill the role of senior counsel in the company’s Fremont, Calif., office. Tesla is focusing on candidates with 8-10 years of experience. The company completed its debut auto-lease securitization in February, placing $546.1 million of bonds with Citigroup and Deutsche Bank running the books. It also has securitized receivables tied to its...



The Grapevine

Fri, 04 May 2018
Credit Agricole has added an associate to its asset-backed securities underwriting team in New York. Nick English arrived in the bank’s New York office about a week ago from EverBank, where he helped finance lenders in the aircraft, rail and shipping industries since 2015. Separately, Credit Agricole continues to hunt for an asset-backed bond syndicate chief. That job has been available since David Stern jumped to TD Bank in...



The Grapevine

Fri, 04 May 2018
Dechert is seeking a few associates for its Chicago office. The recruits would support partner Matthew Hays, who arrived this week from Kirkland & Ellis. Hays, who was employed at Kirkland since 2007, has been active in deals backed by marketplace-originated personal loans and a mix of auto-related receivables. His addition at Dechert comes come as part of a push by the firm to expand its securitization presence — where it mainly has worked...



Yield Impasse Freezes Credit-Card Supply

Fri, 27 Apr 2018
The flow of new credit-card bonds has suddenly evaporated.While supply in the asset class had been running behind year-ago levels throughout early 2018, the shortfall became even more pronounced this month as issuers exited the market altogether. Indeed, no credit-card securitizations have priced in the U.S. since TD Bank sold $600 million of bonds on March 28 with Citigroup, J.P. Morgan and affiliate TD Securities running the books.At 15 deals...



Morningstar's Petro Quits, Weighs Options

Fri, 27 Apr 2018
After getting passed up for a promotion to president, Joe Petro is leaving his post as chief operating officer of Morningstar’s credit-rating division.Petro resigned on April 20, with his departure effective May 16. Sources said he will take some time off before deciding on his next move.As Morningstar Credit Ratings’ number-two executive, Petro was considered the leading candidate to replace president Vickie Tillman when she retired on Dec....



Cantor to Install CLO-Underwriting Team

Fri, 27 Apr 2018
Cantor Fitzgerald is positioning itself as an underwriter of collateralized loan obligations.The broker-dealer has been seeking a banker to lead the effort, but has yet to zero in on a candidate.The recruit’s efforts would complement those of a longstanding CLO-trading business led by Ervin Pilku in New York. The push also would dovetail with a broader expansion that Cantor has been pursuing in the structured-product industry under the...



Echelon Offering New Loan Fund

Fri, 27 Apr 2018
Echelon Asset Management, an investor in personal loans originated by online lenders, has a new fund in the works.The Oakland, Calif., firm aims to raise $500 million of equity for the vehicle, which would use securitization to fund additional investments down the road. There’s no word yet on the timing of the launch.The plan comes amid signals that Echelon may liquidate one or more of its existing funds in the wake of weak returns and...



Funds Pursue Less-Liquid Strategies

Fri, 27 Apr 2018
Hedge funds that trade asset-backed securities, mortgage bonds and collateralized loan obligations increasingly are supplementing their strategies with investments in whole loans.Candlewood Investment, which earned hefty profits trading distressed structured products in the years immediately following the credit crisis, is assembling a vehicle that would originate loans to small and mid-size business. The offering would extend a lending program...



Railcar-Lease Deals Ready to Roll

Fri, 27 Apr 2018
Investors can expect to see an increasing supply of railcar-lease securities.Sources said several first-time issuers have deals in the works that likely will hit the market in the second half. The offerings would breathe new life into an asset class that typically produces only a couple of securitizations annually.The outlook is driven by expectations that the volume of railcar leases will increase by 7% over the next three years. Already, banks...



Libor Gap Pinches CLO Equity

Fri, 27 Apr 2018
An interest-rate mismatch is cutting into arbitrage profits for collateralized loan obligations.At issue is a long-developing trend in which the deals’ underlying borrowers increasingly have refinanced their debts with loans pegged to one-month Libor, instead of the usual three-month Libor. Issuers, meanwhile, have continued to pay interest to bondholders based on the three-month benchmark.Initially, the divergence didn’t present any...



Goldman Returns to MBS Sector

Fri, 27 Apr 2018
Goldman Sachs is back in the business of underwriting private-label mortgage bonds.The bank, which sharply curtailed its activities in the sector in late 2007, is eyeing a mix of offerings — including those backed by mainstream jumbo loans and accounts that don’t meet the Consumer Financial Protection Bureau’s “qualified mortgage” guidelines. Risk-transfer deals from Fannie Mae and Freddie Mac are on the menu as...



Trups-CDO Case Rattles Investors

Fri, 27 Apr 2018
Investors in collateralized debt obligations backed by trust-preferred securities are keeping a close eye on a dispute over deals issued by First Tennessee Bank.In late March, trustee BNY Mellon advised noteholders that it was withholding $20 million of proceeds from a recent collateral auction involving a 2004 transaction: Preferred Term Securities 14. BNY was acting on a request from Keefe, Bruyette & Woods, which was among the original dealers...



Jumbo Reverse Mortgages Catch On

Fri, 27 Apr 2018
With lenders writing more jumbo reverse mortgages, interest in securitizing the credits is increasing.At issue is a new set of policies that HUD implemented on Oct. 2 for reverse mortgages insured by the FHA, including a revised interest-rate structure and increased upfront guarantee fees for some accounts. As those changes cut into lenders’ agency origination volume, those shops have sought to replace the lost business by offering more...



More Losses for Card Portfolios

Fri, 27 Apr 2018
Performance indicators continued to weaken among securitized pools of U.S. credit-card accounts during the first quarter.Charge-offs in bankcard portfolios rose to an average of 3.1% over the period from 2.8% in the fourth quarter, according to an index maintained by Fitch. That continued a trend in which the figure has been climbing from historic lows that prevailed from 2014 to 2016 — a pattern the agency sees as likely to continue, while...



Ratings Aid SG Deal's Distribution

Fri, 27 Apr 2018
Shelter Growth Capital’s latest mortgage securitization demonstrates the extent to which ratings can aid in the distribution of such offerings.The $129.5 million transaction, backed by loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards, priced on April 17 with Credit Suisse running the books. It includes a 2.1-year class of bonds with triple-A grades from S&P and Morningstar that went at...



The Grapevine

Fri, 27 Apr 2018
Florian Bita is no longer head of collateralized loan obligation trading at RBC. Bita had been employed in RBC’s New York office since 2013 and assumed his most recent position in 2016, taking over for the departing Allen Fu. Bita also has worked at Cantor Fitzgerald, UBS, Deutsche Bank, Goldman Sachs and Citigroup. Thomas Hasse is taking over his...



The Grapevine

Fri, 27 Apr 2018
Former Saba Capital portfolio manager James Wang has signed on as head of quantitative research at Stream Asset Management, a structured-product investor in Red Bank, N.J. Wang worked at Saba from 2009 to 2016, with a focus on collateralized loan obligation investments. He earlier spent time at Deutsche Bank and Zais Group. Stream, which employs several other Saba alumni, invests in commercial mortgage securities. It also plans to move into...



The Grapevine

Fri, 27 Apr 2018
Salesman Brian Vanselow joined Mesirow Financial’s Chicago office on April 23, about a month after he was caught in a round of layoffs at Mizuho. Vanselow had been employed there since 2014, and before that spent time at CRT Capital, Sandler O’Neill, Guggenheim and Bear Stearns.



The Grapevine

Fri, 27 Apr 2018
Mortgage-bond salesman Conor Taniguchi has left Bank of America to work at Cantor Fitzgerald in Los Angeles. Taniguchi held the title of managing director at BofA, which he joined in 2009 from Goldman Sachs. His addition at Cantor continues a large-scale staffing buildup that began with the September recruitment of a team of traders from Credit Suisse (see article on Page...



The Grapevine

Fri, 27 Apr 2018
AXA Investment has brought in a senior portfolio manager to assist in a buildup of its collateralized loan obligation-issuing business. Matt Leventhal arrived in the operation’s Greenwich, Conn., office this week from River Birch Capital, where he invested in distressed and high-yield debt in Europe since 2016. Leventhal also has worked at Barclays, RBS and LaSalle Bank. At AXA, he reports to leveraged-loan and private-debt investment head...



The Grapevine

Fri, 27 Apr 2018
Associate Bharat Ganju is leaving Goldman Sachs’ trading desk in New York to join a team at TPG Capital that invests in collateralized loan obligations. Ganju signed on with Goldman in 2015, straight out of college. The TPG group is led by former J.P. Morgan executive Kristen Erickson under the umbrella of the $20 billion TPG Sixth Street Partners.



The Grapevine

Fri, 27 Apr 2018
Bond-structuring specialist Adarsh Dhand has joined U.S. Bank’s Charlotte office as part of a push by the bank to establish an asset-backed securities underwriting business. Dhand most recently worked at Bank of America, where he started in 2014. He also has logged time at RoundPoint Financial and Hudson Pacific Capital. U.S. Bank is aiming to start underwriting deals in the next year or...



The Grapevine

Fri, 27 Apr 2018
Director Jay Banerjee has left American Express, where his duties included helping to structure the company’s credit-card securities and handling investor-relations functions. His destination: The treasury unit at New York alternative-energy TerraForm Power, which hasn’t previously issued asset-backed bonds. Banerjee joined AmEx in 2004 after stops at Hyundai and...



The Grapevine

Fri, 27 Apr 2018
Morningstar has added two analysts to its rating team. Kailash Ahirrao arrived in the agency’s Mumbai office on April 16, working under asset-backed bond head Rohit Bharill. Ahirrao previously covered structured products as a senior analyst at research-and-analytics firm Axience, where he worked since 2008. Also on board is Jeremy Kugelman, who arrived in New York in March as part of a mortgage-bond rating team led by Kevin Dwyer. Kugelman...



Shifting Demand Draws Out Junior Offerings

Fri, 20 Apr 2018
Auto lenders and equipment-finance companies increasingly are adding subordinate classes to their asset-backed bond deals.The moves reflect heavy investor demand for lower-rated paper, with subprime auto lenders American Credit Acceptance, Foursight Capital, United Auto Credit and Westlake Services already having tacked more tranches to the bottoms of their offerings. Among their prime-quality counterparts, Honda and Hyundai are talking to...



IMN Rallies Early Support for ABS East

Fri, 20 Apr 2018
Attendance figures and sponsorships for Information Management Network’s annual “ABS East” conference are building amid efforts by the Structured Finance Industry Group to organize its own main-event gathering a week later.IMN has released a list of almost 900 individuals that have signed up for its summit, which takes place Sept. 23-25 at the Fontainebleau hotel in Miami Beach. It also has nailed down sponsorships from BNY...



Cantor Recruit Experiences Change of Heart

Fri, 20 Apr 2018
Cantor Fitzgerald has lured two more structured-finance executives away from Credit Suisse — only to see at least one of them change his mind.Peter Sack, a managing director in charge of Credit Suisse’s mortgage-finance team in New York, left the bank on March 27 after receiving an offer from Cantor. But he was back on Credit Suisse’s payroll on April 2.A source close to Sack said his reversal stemmed from a feeling that his...



ABS Issue Would Rely on Blockchain

Fri, 20 Apr 2018
A blockchain-technology company pioneering the use of “smart contracts” for securitization purposes expects to complete a debut transaction in the second half.Symbiont, among a growing number of firms operating blockchain networks, has lined up an undisclosed underwriter for the Rule-144A deal, which will be backed by auto or equipment leases. Using smart contracts similar to those employed by some cryptocurrencies, Symbiont would...



Cash Available for Non-QM Brokers

Fri, 20 Apr 2018
Several private equity firms are interested in backing wholesale mortgage brokers, with an eye toward positioning those operations to deal in accounts that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards.Sources said the field of potential investors includes Bain Capital, Warburg Pincus and a number of smaller shops. Their efforts remain in the exploratory phase, with a current emphasis...



Compliance Tool Pitched for Autos

Fri, 20 Apr 2018
A startup software company is offering a compliance tool to issuers of subprime auto-loan securities.LexAlign began meeting with potential customers in recent weeks. Its pitch: Bond issuers should commission its online program for distribution to the dealers that originate their accounts — and sometimes are responsible for breaches of federal or state consumer-protection rules.The Austin operation also is offering the cloud-based tool to...



Stage Set for Auto-Loan Program

Fri, 20 Apr 2018
Subprime auto lender Arivo Acceptance is on pace to float its debut asset-backed bond offering during the third quarter.Arivo so far has accumulated about half of the receivables for the transaction, which is expected to total about $100 million. It hasn’t yet selected an underwriter, nor has it decided whether to offer the bonds privately or under Rule 144A.Arivo was founded in 2016 by Robert Avery, formerly of Prestige Financial. The...



Huge Mortgage Pool Up for Grabs

Fri, 20 Apr 2018
Capital One is shopping a massive portfolio of reperforming home loans.The mortgages, with a total principal balance of $18 billion, are being auctioned in several blocks, with an April 27 deadline for final bids. Wells Fargo is handling the offering.The pool is heavy on pre-credit-crisis loans CapOne picked up via its 2011 purchase of ING Direct. “This has got to be the biggest whole-loan sale I’ve seen,” one source said....



Demos Turned Down Plea Agreement

Fri, 20 Apr 2018
Former mortgage-bond trader David Demos rejected a plea deal before being charged with criminal securities fraud.Demos, whose trial begins April 23 in U.S. District Court in Hartford, was offered a chance to plead guilty to reduced charges during interviews with federal investigators in early 2016, according to an April 14 motion by prosecutors seeking to introduce his statements at trial. In December 2016, the U.S. Justice Department charged...



Demand On the Rise in Europe

Fri, 20 Apr 2018
Banks and insurers in Europe are showing a stronger appetite for structured-product investments.Demand from those institutions has been building since the beginning of this year, partially reversing a trend in which they had pulled back from the market in 2016 in response to the European Union’s Solvency 2 rules and the Bank for International Settlements’ Basel 3 accord.Recently, some insurers apparently have adjusted internal...



The Grapevine

Fri, 20 Apr 2018
Eliot Rubenzahl has left his post as a managing director in charge of securitized-product sales and trading at Citigroup. There’s no word on Rubenzahl’s plans. He had been a member of Citi’s New York office since 1999, following a stint as a mortgage-bond researcher at the former Scudder, Stevens & Clark. Separately, Citi is seeking a vice president-level professional with 6-10 years of experience who could help lead...



The Grapevine

Fri, 20 Apr 2018
Securitization head Katya Baron parted ways with Solar Mosaic last week. Baron, a managing director, had joined the Oakland solar-panel loan originator in 2016 from investment firm Aequitas Capital. She also has worked at Sterne Agee, Gleacher & Co., Barclays, FGIC and J.P. Morgan. Mosaic has completed three securitizations totaling $681.7 million since entering the market in...



The Grapevine

Fri, 20 Apr 2018
Strategist Rick Stanley is retiring from BNY Mellon’s trustee business, effective April 30. The group’s leadership team will assume his responsibilities until a replacement is named. Stanley served in a number of capacities since joining BNY via its 1988 purchase of Irving Trust, including a year-long assignment as head of the bank’s structured-finance...



The Grapevine

Fri, 20 Apr 2018
Portfolio manager Avi Korn has left BlueMountain Capital to join KKR, where he signed on this week as part of a structured-product investment unit led by one-time Deutsche Bank executive Dan Pietrzak. The New York-based Korn started at BlueMountain in 2008. Before that, he was at J.P. Morgan.



The Grapevine

Fri, 20 Apr 2018
Longtime mortgage-industry professional Bruce Hurwitz died suddenly on April 12. Hurwitz had been working in a compliance role as a director at Freddie Mac, where he started in 2017. His earlier employers included Shellpoint Mortgage, RoundPoint Mortgage, Digital Risk, Securitized Asset Surveillance & Analysis, Fremont Mortgage, McDonough Holland and The Money...



The Grapevine

Fri, 20 Apr 2018
Emile Ernandez has signed on with hedge fund operator Kawa Capital, with a focus on investing in privately placed securitizations. The assignment follows a brief stint as a consultant at risk-retention financing shop Nearwater Capital, and longer stops on the securitization-banking teams at Barclays and Deutsche Bank. Kawa is led by Daniel Ades and Alex Saverin. It has $1 billion under...



The Grapevine

Fri, 20 Apr 2018
Paul Fielding has signed on as a partner at Social Capital, a Palo Alto, Calif., venture capital firm whose portfolio companies include education lender CommonBond. Fielding had been employed at Social Finance since 2013, holding a variety of roles including head of capital markets and manager of a fund that buys subordinate pieces of the company’s bond offerings. He also has spent time at Cignifi, MeasureOne, CoreLogic predecessor...



The Grapevine

Fri, 20 Apr 2018
Chief investment officer Sid Jajodia is leaving Lending Club to work for an unnamed online lender in Amsterdam. At Lending Club, Jajodia managed a series of funds that invest in the company’s personal loans. He also helped pitch some of its early securitizations. He arrived in 2013 from Capital One, where he led small-business lending.



The Grapevine

Fri, 20 Apr 2018
Oliver Dunsche has left HSBC’s New York office, where he had been working since 2014 as part of a team that sets up asset-financing facilities for issuers of bonds backed by leveraged loans and unusual cashflows. Dunsche’s plans couldn’t be learned. He previously worked at Barclays, Deutsche Bank, Morgan Stanley and Oliver Wyman.



The Grapevine

Fri, 20 Apr 2018
Goldman Sachs has added a junior collateralized loan obligation-structuring specialist to its London office. The recruit, Lorenzo Silvestri, will start in the coming weeks. He had been employed at Natixis since 2015, and before that was at Santander.



Repo Costs Spawn REIT Issuance Programs

Fri, 13 Apr 2018
Responding to a rapid rise in repurchase-facility costs, REITs increasingly are positioning themselves as mortgage-bond issuers.The trend began taking shape with a $279 million securitization that Annaly Capital completed on March 26 — its first ever. Expectations are that the New York operation will return with an offering of similar size in the coming months, with AGNC Investment, Invesco Mortgage Capital and MFA Financial possibly...



Diebold to Dispense ATM-Lease Securities

Fri, 13 Apr 2018
Diebold Nixdorf wants to write more leases on the ATMs it manufactures, with securitization as a potential funding source.The bond-issuing side of the effort still is in the exploratory phase, with treasury executives from the North Canton, Ohio, company having spoken informally to potential underwriters. Expectations are that an initial offering of perhaps $300 million might hit the market in late 2019.Diebold has long offered financing to...



Louisiana Poised to Securitize BP Settlement

Fri, 13 Apr 2018
Louisiana plans to securitize a portion of the proceeds from a settlement with BP over the Deepwater Horizon oil spill.Under a bill the state Senate is set to pass in the coming days, a newly created agency called Louisiana Economic Financing Corp. would issue $852 million of bonds backed by cashflows from the $6.8 billion settlement. The transaction is expected to hit the market late this year or early next year.Among the first orders of...



Gallatin Jettisons Retained Paper

Fri, 13 Apr 2018
No longer bound by the Dodd-Frank Act’s skin-in-the-game rule, Gallatin Loan Management acted quickly to sell the retained portion of its debut collateralized loan obligation.Other CLO issuers, however, are taking more time.CLOs officially became exempt from the Dodd-Frank regulation with the April 5 release of an order from the U.S. Court of Appeals for the District of Columbia Circuit, a move based on an earlier decision in favor of a...



Big Setback for China Merchants

Fri, 13 Apr 2018
China Merchants Bank has lost the head of its U.S. warehouse-lending unit, dealing a serious blow to the operation’s development.Mark Hemmann left the bank’s New York office in recent weeks. Sources suggest his exit was linked to a leadership shuffle that also saw the March exit of his supervisor, former WestLB colleague Xin Wang.Hemmann’s division had just formed in early 2017, with an eye toward offering financing to...



Witness List Confounds MBS Traders

Fri, 13 Apr 2018
Two mortgage-bond traders were surprised to learn they could be called as witnesses in the upcoming securities-fraud trial of David Demos.Scott Burg, chief investment officer at Deer Park Road Management, and Leland Abrams, formerly of Candlewood Investment, are among the industry professionals who appear on the U.S. Justice Department’s official witness list for Demos, who goes on trial April 23 in U.S. District Court in Hartford.But the...



Loan-Data Shop Negotiating Sale

Fri, 13 Apr 2018
After struggling to launch a brokerage operation, loan-data supplier Orchard Platform appears to have lined up a buyer for what remains of its business.The New York company, whose main product is technology that tracks the performance of online-originated loans, appears to be close to finalizing a deal under which it would sell that operation to a marketplace lender. One source pointed to small-business lender Kabbage as a possible buyer.Orchard,...



Upgrade Updates Funding Strategy

Fri, 13 Apr 2018
Upgrade’s securitization plans are coming into focus.The San Francisco firm, which originates personal loans online, is eyeing the third quarter for what would be its first asset-backed bond offering. After that, it would securitize its loans at a rate of roughly one deal per quarter.“They’ve been very clear that securitization will play a big role in growing their business,” a source said.In addition to personal loans,...



New Residential Adds Reperformers

Fri, 13 Apr 2018
New Residential Investment is planning a second offering of bonds backed by reperforming mortgages.Sources said the issue would be backed by a pool of 3,000 loans with an unpaid principal balance of $686 million that the New York REIT bought on April 11. The accounts have an average loan-to-value ratio of 65%.New Residential’s only previous securitization of reperforming mortgages was a $228.5 million unrated deal that priced in May 2017....



Deal Agent Cracks Mortgage Market

Fri, 13 Apr 2018
DV01 has picked up its first assignment as a loan-data agent for a mortgage securitization.The New York firm this week began distributing information to investors in a $275 million bond offering that Credit Suisse priced on March 28. The unrated transaction, CSMC 2018-RPL2, is backed by a pool of reperforming home loans.In its role as deal-data agent, DV01 supplements the efforts of issuers and trustees in supplying investors in...



CLOs Post Uneven Indicators

Fri, 13 Apr 2018
Asset-quality indicators were mixed in January for collateralized loan obligations issued in the U.S. after the credit crisis.The deals’ median holdings of defaulted loans rose 16 bp to 0.28%, according to Moody’s. That increase mainly reflected defaults by Philadelphia Energy and a U.K. affiliate of Expro Group, whose loans are held in 62 pools, analyst Haoning Ding said. At the same time, the transactions’ weighted averaged...



The Grapevine

Fri, 13 Apr 2018
Dave Bell left his job as Morgan Stanley’s head asset-backed bond trader this week to become a managing director at New York broker-dealer R.W. Baird & Co. In his new post, Bell focuses on trading bonds backed by unusual assets, including Property Assessed Clean Energy loans and marketplace-originated personal loans. Bell served two stints at Morgan Stanley, most recently starting in 2016. In between, he worked at Deutsche Bank and Third...



The Grapevine

Fri, 13 Apr 2018
Wells Fargo has appointed managing directors Michael Llodra and Ari Kavour to head its mortgage-finance division, which handles warehouse-lending and securitization functions for home loans. Wells had been seeking to fill the positions since August, when Dashiell Robinson moved to Redwood Trust. Llodra, who is in New York, joined Wells in 2011. He earlier worked for Harvard Management. The Charlotte-based Kavour arrived in 2012 from Morgan...



The Grapevine

Fri, 13 Apr 2018
(SEE CORRECTION BELOW) Word has it that former Citigroup asset-backed bond banker Ari Rosenberg is headed to KKR. Rosenberg’s new job apparently will have him working alongside Dan Pietrzak, a one-time Deutsche Bank executive who has been overseeing a portfolio of structured-product investments since arriving in KKR’s New York office in 2016. Rosenberg had been at Citi since 2004, most recently as head of a group catering to online lenders....



The Grapevine

Fri, 13 Apr 2018
Small-business lender Strategic Funding has a new chief financial officer. Anthony Rose assumed the post last week, with predecessor Steve Lerch leaving for undisclosed reasons. Rose had been working at Dime Community Bank since 2016, following stops at Marakon, Evercore Partners, Credit Suisse and J.P. Morgan. Lerch arrived in 2015. His resume includes stops at ZeOmega, MedeAnalytics, Inuvo, Workstream and PricewaterhouseCoopers. The switch...



The Grapevine

Fri, 13 Apr 2018
Longtime investor David Ells joined Ares Management’s New York office last week as a managing director. Ells most recently held the same title at Northwestern Mutual, where he ran portfolios of asset- and mortgage-backed securities since 2004. His resume also includes stops at Deerfield Capital and Liberty Hampshire.



The Grapevine

Fri, 13 Apr 2018
Capital One has added a director to a unit that helps fund companies that offer warehouse lines to other lenders, including those that issue asset-backed bonds. Alexander Dennis joined the bank last week from S&P, where he worked since 2007 — first with a focus on collateralized loan obligations and, more recently, asset-backed bonds. His new team is led by Dave...



The Grapevine

Fri, 13 Apr 2018
Just weeks after arriving at Hunt Financial Securities as a managing director, Steve Fulton left the brokerage firm’s Los Angeles office on March 29. There’s no word on the reason for his abrupt exit. Fulton most recently ran a martial-arts training business, and before that headed portfolio management for securitized products at Western Asset Management. Separately, salesman Hugh Wallace left Hunt’s Rye Brook, N.Y.,...



The Grapevine

Fri, 13 Apr 2018
Richard Mertl has signed on as counsel in the New York office of King & Wood, with the task of advising China-based institutions on U.S. securities law. Mertl had been employed at Dechert since March 2017, and before that was at Schulte Roth and Freshfields. He remains a member of the Structured Finance Industry Group’s Chinese Market Committee and a liaison to the China Securitization...



The Grapevine

Fri, 13 Apr 2018
Morningstar is seeking three analysts to cover asset-backed securities and collateralized loan obligations in its New York office. The recruits would hold the titles of associate, assistant vice president or vice president. Candidates can email resumes to manager Rohit Bharill at rohit.bharill@morningstar.com.



First-Quarter Issuance Hits Post-Crisis High

Fri, 06 Apr 2018
Despite a dip in issuance late last month, the volume of structured products sold in the January-March period amounted to the highest first-quarter total since before the 2008 market crash.An eye-popping $211.4 billion of fresh asset-backed securities, collateralized loan obligations and residential and commercial mortgage bonds priced worldwide during the first three months of the year — a 35% increase from the first quarter of 2017,...



SFIG Looks Askance at Evasion of Risk Rule

Fri, 06 Apr 2018
The Structured Finance Industry Group is questioning efforts by securitization lawyers to craft new deal structures that would allow mortgage- and asset-backed bond issuers to avoid the Dodd-Frank Act’s risk-retention rule.After a U.S. appeals court ruled that collateralized loan obligation managers are exempt from the retention requirement, industry lawyers began researching ways to structure other types of securitizations in a way that...



CLO Pipeline Shrinks Amid Gusher of Refis

Fri, 06 Apr 2018
Widening spreads on collateralized loan obligations appear to be deterring issuance at the start of what was expected to be a record month for deal flow.Only a week or so ago, U.S. issuers had a total of 35 new deals in the pipeline for April. But only a handful of offerings were in the market this week, and the few completed deals priced wider than expected. Dealers and managers focused instead on a packed calendar of CLO refinancings that must...



Tesla's Woes Worry ABS Investors

Fri, 06 Apr 2018
Spooked by Tesla’s production issues and stock-price volatility, investors suddenly are dumping bonds backed by leases on the company’s all-electric vehicles.On April 4, for example, a total of $13.2 million of notes from a securitization Tesla priced on Feb. 1 changed hands on the secondary market at below par, according to Finra’s Trade Execution and Compliance Engine. The fact that investors sought to sell Tesla paper just...



Blockchain Firm Extending Reach

Fri, 06 Apr 2018
A blockchain-technology company in Sydney is extending its reach to the U.S. and Europe.Othera already claims to have developed a fully functional system through which loans can be originated and securitized, with capabilities for rating-agency reviews and continued handling of payment streams by trustees. Its targeted clients in the U.S. include online personal-loan originators.In the next month or two, Othera also expects to sign deals with a...



HUD Readies Big Loan Offering

Fri, 06 Apr 2018
More details are emerging about a plan by HUD to revive a program through which it sells nonperforming home loans to investors.Sources said the federal housing agency is aiming for June to resume sales of defaulted mortgages via its Distressed Asset Stabilization Program, which has been largely dormant since 2016. The initial offering could encompass nonperforming loans with a total face value of up to $5 billion. After that, HUD is expected to...



Banks Drive Up LendIt Headcount

Fri, 06 Apr 2018
LendIt is expecting a record turnout for its annual marketplace-lending conference, thanks to increased participation by banks.Some 6,000 people are projected to attend the “LendIt Fintech USA 2018” event on April 9-11 in San Francisco, up from the 4,900 who showed up in New York in 2017. That jump can be attributed almost entirely to bank delegations, which are expected to account for 29% of the crowd — up from...



Moody's Enhances CLO-Data Tool

Fri, 06 Apr 2018
At the behest of clients, Moody’s Analytics has upgraded its structured-product information service to give collateralized loan obligation investors a clearer view of their risk-adjusted returns and other indicators of a manager’s style.The changes to the company’s Structured Finance Portal come in response to investor inquiries about whether the generous returns offered by CLO equity pieces, in particular, are sustainable in...



Traders May Testify at Demos Trial

Fri, 06 Apr 2018
The trial of former Cantor Fitzgerald executive David Demos, scheduled to get under way later this month, could feature testimony from several well-known structured-product professionals.Among the industry professionals on the U.S. Justice Department’s witness list are Scott Burg, chief investment officer at Deer Park Road Management; Leland Abrams, a mortgage-bond trader who previously worked at Candlewood Investment; Stuart Goldberg, head...



Tax Checks Fuel Subprime Autos

Fri, 06 Apr 2018
The performance of securitized subprime auto loans improved last month as borrowers used income-tax refunds to catch up on loan payments.According to an index maintained by Fitch, the 60-day delinquency rate among subprime-loan pools dropped 60 bp to 5.16% for the month ended March 15. Losses, meanwhile, fell 102 bp to an annualized rate of 8.80% — the lowest level since July 2017. Fitch attributed the improvement to seasonal spending...



The Grapevine

Fri, 06 Apr 2018
Ari Rosenberg, a Citigroup banker who led a group catering to online lenders, resigned from the bank this week. His plans are unknown, but a source said he will be on gardening leave before taking a new job. Rosenberg had been at the bank since 2004. Also leaving the group is second-in-command David Mandel, who joined Citi in 2007 from BNP Paribas. Earlier on, he worked at Merrill Lynch and Deutsche Bank. Sources said they expect Citi will...



The Grapevine

Fri, 06 Apr 2018
Longtime S&P executive Ted Burbage is jumping to rival rating agency Kroll. In his new role, Burbage will be a managing director in Kroll’s business-development group, with a focus on consumer assets. He is scheduled to start work April 9 in the firm’s New York office, reporting to business-development head Dana Bunting. Burbage joined S&P in 1994, and most recently served as head of rating criteria for asset-backed bonds underpinned...



The Grapevine

Fri, 06 Apr 2018
Guggenheim mortgage-bond trader Adam Laskar resigned from the firm this week. Laskar joined Guggenheim’s Los Angeles office in 2007 as part of a team that previously worked together at United Capital Markets. He was promoted to managing director in 2009. After taking some time off, Laskar plans to start a family office whose investments would include a range of structured products, with a focus on non-agency mortgage...



The Grapevine

Fri, 06 Apr 2018
Kevin McConahey has joined Yamaha Motor Finance as group manager for financial planning and analysis. McConahey, who works in Yamaha’s U.S. headquarters in Cyprus, Calif., previously spent 14 years in financing roles at Toyota. Yamaha Motor Finance is the captive-lending arm of Yamaha Motor Corp. USA. The finance division is considering securitization as a funding mechanism for Yamaha-branded credit cards the company began issuing in early...



The Grapevine

Fri, 06 Apr 2018
Corporation Service Co. continues to bulk up its staff in Europe. Robert Berry arrived in the Wilmington, Del., company’s London office in recent weeks to help lead strategy. Berry had been a top executive in the SFM Europe unit of Intertrust Group, which provides a range of support services to securitization trusts, investment funds and corporations. Intertrust acquired SFM in 2016 amid ongoing consolidation in the sector. Also set to...



The Grapevine

Fri, 06 Apr 2018
Collateralized loan obligation trader Paul Pasqua joined Auriga USA’s New York office on March 26. Pasqua had been working at StormHarbour since 2014, and before that was at PrinceRidge and Maxim Group. Auriga also is seeking to hire CLO sales specialists.



The Grapevine

Fri, 06 Apr 2018
Market veteran Yuri Chumak died March 28 following an illness. Chumak, 45, had spent much of his career structuring asset-backed bond transactions, collateralized debt obligations and collateralized loan obligations. His resume included stints at Mizuho and Wachovia, as well as Fieldstone Capital and S&P. Chumak is survived by his wife and two daughters. A memorial service is scheduled for April 7 at Somerset Hills Memorial Park and Mausoleum in...



ABS Rally Shows Signs of Losing Steam

Fri, 23 Mar 2018
For the first time in more than a year, dealers are struggling to move newly issued asset-backed securities.In the past week or two, demand has slackened due to a combination of factors including fears of rising interest rates and heightened volatility across the capital markets, traders said. It also may be that buysiders, having absorbed so much paper since the start of the year, want to take a breather.In any case, spreads widened across a...



TD Establishes MBS-Trading Beachhead

Fri, 23 Mar 2018
TD Bank has hired market veteran Nicholas Letica to oversee the creation of a U.S. mortgage-bond trading desk.Letica joined the bank’s New York office on March 12 as a managing director. Expectations are that he initially will pursue secondary-market trades of agency mortgage paper, and then expand into private-label and agency risk-transfer products.Letica most recently was a senior portfolio manager at investment firm Cello Capital, which...



Yamaha Resurfaces With Card-Bond Plan

Fri, 23 Mar 2018
Look for Yamaha Motor Corp. USA to resume issuing asset-backed securities after a long absence from the market — but with a new type of collateral backing the bonds.The motorcycle maker’s captive-lending arm, Yamaha Motor Credit, plans to use securitization as a funding mechanism for Yamaha-branded credit cards it started offering about a year ago. The operation also is looking into deals backed by dealer-floorplan loans.Word of the...



New Residential Eyes Registered MBS

Fri, 23 Mar 2018
Mortgage-bond issuer New Residential Investment is developing a securitization vehicle that it would register with the SEC.The REIT doesn’t plan to use the entity right away, however. Instead, it is going through the exercise of setting up the program so it can be ready when a market for SEC-registered home-loan paper eventually materializes.No issuer has completed a registered securitization of private-label mortgages since 2013....



Kroll Staffs Up for CLO Push

Fri, 23 Mar 2018
Kroll has hired two key professionals to help lead an expansion into collateralized loan obligation ratings.Eric Hudson is joining the agency’s New York office as a managing director in charge of CLO ratings. He most recently co-headed S&P’s CLO team. Also coming on board is business-development specialist Jason Lilien, formerly of Goldman Sachs.Hudson and Lilien will start on the same day, April 9 at the latest.Hudson led ratings for...



REIT Maps Non-QM Program

Fri, 23 Mar 2018
New York Mortgage Trust is developing a securitization program to fund purchases of home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards.Sources said the initiative is in the very early stages, with a debut bond offering unlikely before the second half of 2019. The New York REIT is talking to several Wall Street banks about establishing a warehouse line.New York Mortgage...



CLO Pros Knock Moody's for Backlog

Fri, 23 Mar 2018
A spike in refinancings of collateralized loan obligations once again has issuers and dealers grumbling that rating agencies — particularly Moody’s — aren’t equipped to handle the volume.Moody’s, which fields by far the largest number of CLO assignments, put the word out a couple of weeks ago that it no longer would accept orders to rate refinancings timed for quarterly payment dates in April. That threatens to...



Retention Rule Adds Risk for Lawyers

Fri, 23 Mar 2018
Attorneys are taking steps to insulate themselves from malpractice claims that could result from their work on asset- and mortgage-backed bond deals conducted outside the scope of the Dodd-Frank Act’s risk-retention rule.The concern is that issuers, investors or regulators could sue firms working as issuer or underwriter counsel should the SEC reject their interpretations of the retention requirement — specifically, that issuers no...



RiskSpan Testing Blockchain Tool

Fri, 23 Mar 2018
Data-analytics company RiskSpan is developing a blockchain-technology tool through which loans eventually could be originated, pooled and securitized.As an initial step, the Arlington, Va., operation began “shadowing” an unnamed mortgage-bond issuer’s deals in February — reproducing pertinent collateral data on a distributed ledger while setting up so-called smart contracts used to verify payments to bondholders. It also...



Business Lender Ready for Debut

Fri, 23 Mar 2018
Small-business lender Strategic Funding is preparing its first securitization.The $100 million deal is expected to hit the market in the coming weeks with Guggenheim running the books. Kroll will rate the bonds.Strategic has been in business since 2006. The New York firm’s securitization plan comes as part of a growth effort that nearly led it to purchase troubled rival Can Capital last year.When that deal didn’t pan out, Can sold a...



Issuers Prep for Rule-Change Overlap

Fri, 23 Mar 2018
Several risk-retention strategies are emerging among collateralized loan obligation issuers whose next deals might price just as their expected exemption from the Dodd-Frank Act’s skin-in-the-game rule becomes official.Some simply will wait to complete noncompliant deals after April 2, the expected date of a federal exemption order that would cover all CLOs. Others plan to carry out their offerings now while keeping 5% interests, setting...



The Grapevine

Fri, 23 Mar 2018
Namit Sinha is joining Angel Oak Capital as a senior portfolio manager — a key role in which he is helping to lead the operation’s mortgage-buying and securitization program. Sinha had been employed as an analyst at Los Angeles investment firm Canyon Capital since 2014. He also has spent time at Nomura, Barclays and Lehman Brothers. Angel Oak, an Atlanta consumer-finance company with $8.5 billion of assets, is both an investor and...



The Grapevine

Fri, 23 Mar 2018
Pat Gonzalez has joined Antarctica Capital’s New York office to lead a push into structured-product investments. Gonzalez, a portfolio manager with a history in the collateralized loan obligation sector, most recently was employed as chief executive of risk-management firm Athilon from 2005 until November 2016. He also has worked at XL Capital, MBIA and S&P. Antarctica is best known as a real-asset investor in the transportation,...



The Grapevine

Fri, 23 Mar 2018
Managing director Lance Soloway has left Guggenheim’s structured-product sales desk in Los Angeles. His plans are unknown. Soloway, a longtime industry professional, joined Guggenheim in 2007 from United Capital. His former employers also include HSBC, Countrywide, Donaldson Lufkin & Jenrette, Bear Stearns and Drexel Burnham Lambert.



The Grapevine

Fri, 23 Mar 2018
Former Cantor Fitzgerald staffers Raphael Gonzalez and Ben Morganstein have joined Performance Trust Capital’s New York office with a focus on trading asset- and mortgage-backed securities. Gonzalez, a managing director, worked at Cantor from March 2017 to this February. His previous employers include Angel Oak Capital, Baird, Passport Capital, J.P. Morgan, Bank of America and Barclays. Morganstein, a director, stopped working at Cantor in...



The Grapevine

Fri, 23 Mar 2018
Mortgage-focused due-diligence firm Barrent Group has hired a head of business development. Art Yeend arrived in the operation’s San Francisco office this month from MountainView Capital, where he worked since 2013 as head of sales. Yeend’s former employers also include Got Appraisals, PMI Mortgage Insurance and Links Securities.



The Grapevine

Fri, 23 Mar 2018
Pelican Auto Finance chief executive Troy Cavallaro will be looking for a new job on April 1. That’s the date Pelican will finish an unwinding process that began Dec. 15. The Chadds Ford, Pa., subprime-auto lender had been planning to securitize its receivables. Cavallaro co-founded Pelican in 2009 and later sold a stake in the business to Flexpoint Ford. He earlier worked at ACC Consumer Finance, Centrix Financial, Household Finance and...



The Grapevine

Fri, 23 Mar 2018
OneMain Financial has an opening for an analyst on its capital-markets and treasury team in Stamford, Conn. The recruit would handle a host of duties related to OneMain’s personal-loan securitization program, including preparation of marketing materials and coordination with underwriters and rating agencies. OneMain is focusing on candidates with at least one year of experience. Applicants can email hiring manager Joe Delgardio at...



The Grapevine

Fri, 23 Mar 2018
Figure, a startup home-loan company that plans to securitize some of its receivables, is looking for a chief compliance officer. Founder Mike Cagney, who previously was among the founders of Social Finance, is talking to candidates with 7-15 years of experience. The recruit would work in San Francisco. Figure plans to write home-equity lines, home-improvement loans and reverse mortgages, using blockchain technology throughout the origination,...



Outlook Favors Sustained Conduit Growth

Fri, 16 Mar 2018
Commercial-paper conduit professionals foresee a continuing rebound in the market.Buoyed by a wave of new investors, the amount of conduit paper in the hands of investors worldwide rose to an average of $333.5 billion during the fourth quarter of 2017 from $314.2 billion a year earlier, according to Moody’s.The last time the agency recorded a higher fourth-quarter figure was 2012, at $379.1 billion. The difference is that back then, the...



Morgan Stanley Boosts Mortgage Efforts

Fri, 16 Mar 2018
Morgan Stanley is placing a renewed emphasis on its mortgage-finance business.The undertaking follows a period of more than two years in which the bank reduced its warehouse-lending and bond-underwriting activities in the sector, while operating with a reduced staff. The plan is to start with a gradual expansion on the warehousing side, with an anticipated increase in underwriting assignments to follow.To that end, Morgan Stanley is eyeing a mix...



European CLOs Encounter Rough Period

Fri, 16 Mar 2018
Collateralized loan obligation issuers in Europe suddenly are having a harder time placing the senior portions of their deals.While characterizing the situation as temporary, industry participants said a number of factors are at play — including the approaching fiscal yearend for investors in Japan and an over-supply of offerings from first-time issuers. The upshot: Spreads on senior CLO paper in the region have reached their widest point...



More Growth for Redwood Program

Fri, 16 Mar 2018
Projections for Redwood Trust’s mortgage-securitization volume continue to swell.Just a few months ago, the expectation was that the Mill Valley, Calif., REIT’s output of home-loan bonds would rise by perhaps $1 billion this year, from $3.2 billion in 2017. Industry participants now are envisioning a $2 billion increase.The reason: a jumbo-loan program called Choice that caters to borrowers with blemished credit histories is gaining...



Clash Precedes FHFA Deadline

Fri, 16 Mar 2018
Mortgage professionals have yet to reach a consensus on a potential change to the Federal Housing Finance Agency’s credit-score policies.At issue is a suggestion by the regulator that Fannie Mae and Freddie Mac could continue to base their lending decisions on Fair Isaac Corp.’s FICO score, or switch to a system called VantageScore overseen by a partnership between Equifax, Experian and TransUnion. Another possibility would be for the...



Lawyers Eye Student-Loan Servicers

Fri, 16 Mar 2018
Lawyers are talking to asset-backed bond investors about possible legal action against student-loan servicers.The discussions are in response to lawsuits filed by several states alleging deceptive practices by servicers of loans guaranteed under the U.S. Department of Education’s now-unwinding Federal Family Education Loan Program. Among the servicers that have been named so far are Navient and the Pennsylvania Higher Education Assistance...



Defaults Weigh on US CLOs

Fri, 16 Mar 2018
Asset quality among collateralized loan obligations issued after the credit crisis declined in December, reflecting a flurry of corporate downgrades and defaults.Among deals in the U.S., the median weighted average rating factor — an indicator of borrower health — deteriorated by four points to 2817, according to an index maintained by Moody’s. That’s the equivalent of a “B2” rating. In Europe, the WARF measure...



Lenders Wary of State Actions

Fri, 16 Mar 2018
With the Consumer Financial Protection Bureau hobbled, concerns are building that state regulators will step up their borrower-advocacy efforts.Since taking over as acting head of the CFPB in November, Mick Mulvaney has walked back a number of the agency’s more-aggressive actions. But lawyers increasingly are warning that financial institutions could face bigger headaches if the states take up those causes.“Instead of one aggressive...



Divergence Seen in Funding Trend

Fri, 16 Mar 2018
The percentages of auto loans and leveraged loans bundled into securitizations rose in 2017, in contrast with other major asset classes.According to S&P, there were $1.1 trillion of prime-quality and subprime auto loans outstanding at yearend, of which 18.2% were securitized. That was up from 18% a year earlier, but down from a peak of 26.5% in 2002.S&P measured the leveraged-loan market at $959 billion, with collateralized loan obligations...



CLO Pros Unshaken by Zohar Filing

Fri, 16 Mar 2018
Collateralized loan obligation professionals are shrugging off Lynn Tilton’s latest legal maneuver.Acting as an equity holder in a CLO called Zohar 3 that her Patriarch Partners issued in 2007, Tilton filed a petition with Delaware Chancery Court in Wilmington on March 11 to force the deal into bankruptcy.The action appears to stem from a situation in which the deal doesn’t have sufficient cashflows for a balloon payment due in April...



Investors Embrace Skopos Offering

Fri, 16 Mar 2018
Skopos Financial’s second securitization of subprime auto loans was well-received by investors.The senior tranche of the $147 million deal, which priced March 14, went out the door at 87 bp over eurodollar futures — or 3 bp tighter than suggested levels from bookrunners Citigroup and Deutsche Bank (see Initial Pricings on Page 10).To be sure, Skopos had to offer senior bondholders substantially more protection than it provided for...



The Grapevine

Fri, 16 Mar 2018
Mizuho downsized its structured-product sales unit last week. Among those let go were Anders Hurst and Matthew Rossi in New York, and Brian Vanselow in Chicago. Hurst had joined the bank in 2015, after stops at Performance Trust, RBS and Merrill Lynch. Rossi came on board in 2009 from FTN Financial, and before that was at Countrywide, J.P. Morgan, Morgan Stanley and Oppenheimer & Co. Vanselow, an executive director, arrived in 2014 after working...



The Grapevine

Fri, 16 Mar 2018
Information Management Network has rescheduled its “ABS East” conference to Sept. 23-25, from Sept. 17-19. The reason: The original dates overlapped with the Jewish holiday of Yom Kippur. IMN officials said the move also came in response to feedback from industry participants who felt the event’s timing was too close to “SFIG Vegas,” which the Structured Finance Industry Group held in Las Vegas on Feb. 25-28....



The Grapevine

Fri, 16 Mar 2018
Sameer Maru is leaving his post as Goldman Sachs’ head collateralized loan obligation trader in New York. Maru, a managing director, is believed to be taking a large buyout. He joined Goldman in 2000 from Arthur Andersen. While Maru has been directing the bank’s CLO-trading strategy, sources said day-to-day interactions more often have taken place with Kamal Ramnani. He arrived in 2015 from KGS-Alpha...



The Grapevine

Fri, 16 Mar 2018
Portfolio manager Michael Sobol has left Axonic Capital, where he invested in collateralized debt and loan obligations. He is taking a similar job in GSO Blackstone’s New York office. Sobol started at Axonic in 2013. He previously worked at Cantor Fitzgerald, Tourmaline Advisors, Agamas Capital, Ivy Asset Management and BNY Mellon.



The Grapevine

Fri, 16 Mar 2018
Senior sales specialist Randee Paston no longer is employed at Cantor Fitzgerald. Paston had been working in the brokerage firm’s New York office since 2009. Before that, she spent time at UBS and predecessor Paine Webber. Her plans are unknown. Her exit from Cantor comes amid a staffing churn that has followed the January arrival of Jim Buccola from Credit...



The Grapevine

Fri, 16 Mar 2018
Hunt Financial Securities has added a managing director to its Los Angeles office. Steve Fulton’s previous employers include Western Asset Management, where he headed portfolio management for securitized products from 2000 to 2013. More recently, he started a martial-arts training business.



The Grapevine

Fri, 16 Mar 2018
MUFG has hired a managing director to lead a group that offers structured financing to investors in a range of products, including asset-backed securities, mortgage bonds and collateralized loan obligations. Scott Rodman joined the bank’s New York office this month from HSBC, where he worked since 2013. Rodman previously spent time at Nomura, Deutsche Bank, Credit Suisse and Merrill...



The Grapevine

Fri, 16 Mar 2018
Barry Rafferty has taken the top capital-markets post at San Mateo, Calif., personal-loan originator Freedom Financial. Rafferty, a senior director, had been working in a similar capacity at Upstart since 2016. He also has spent time OneMain Financial, J.P. Morgan and Citigroup. Freedom typically sells its loans, sometimes to investors that securitize...



The Grapevine

Fri, 16 Mar 2018
The organizers of the “SFIG Vegas” conference have differing accounts of how many people attended the gathering. The Structured Finance Industry Group pegs the headcount at 7,500. Information Management Network puts the total at 6,800. The difference: SFIG is counting individuals who conducted meetings outside the event but never registered, while IMN’s tally counts only official participants. Either way, the count was a record....



Job Prospects Weak Despite Market Growth

Fri, 09 Mar 2018
The employment outlook for structured-product banking, trading and distribution professionals isn’t keeping pace with the market’s expansion.Instead of bringing in new staff to handle increased dealflow, investment banks have been adding to the tasks of their existing teams — many of which have been operating in scaled-down form since the credit crisis. And those that are adding personnel in many cases are doing so only at the...



Jennings' Suit Raises Licensing Questions

Fri, 09 Mar 2018
William Jennings’ wrongful-termination lawsuit against Hunt Cos. could expose both the firm and himself to scrutiny from Finra.Jennings filed his complaint with U.S. District Court in New York on March 2, seeking $72 million of damages. In the complaint, he alleges that Hunt wooed him in October 2016 to build a securitization-focused broker-dealer business at subsidiary Hunt Financial Securities — leading to his official hiring on...



Angel Oak Solves Fix-and-Flip Problem

Fri, 09 Mar 2018
The latest securitization of “fix-and-flip loans” employed a novel structure that industry professionals see as a possible road map for other issuers.On March 2, Angel Oak Capital privately placed $90 million of bonds backed by short-term loans to developers and speculators who buy run-down houses, and then quickly fix and resell them. Performance Trust handled distribution and structuring duties — using a revolving trust for...



Direct-Loan Sales on the Table

Fri, 09 Mar 2018
Rumors are circulating that the U.S. Department of Education could sell some or all of its student-loan inventory.The chatter appears to stem from efforts in which small-government advocacy groups have asked Wall Street banks if they would be interested in buying and possibly securitizing the accounts. To that end, any such efforts would appear to be in the early conceptual stages.Republican lawmakers and Treasury Department officials already...



Tidewater Keeps Program Rolling

Fri, 09 Mar 2018
Tidewater Finance is preparing a securitization of subprime auto loans.The deal is expected to total about $150 million, with marketing scheduled to begin around the beginning of April. KeyBank is serving as bookrunner. S&P and Kroll are weighing in with ratings.Tidewater typically has floated an auto-loan securitization every two years, beginning in 1999. The Virginia Beach, Va., lender has completed five such offerings totaling $627.7 million...



Westlake Takes Over Pelican Loans

Fri, 09 Mar 2018
Westlake Financial has purchased the servicing rights for $75 million of subprime auto loans originated by Pelican Auto Finance.Westlake, which paid Pelican an undisclosed sum, will take over as servicer on March 15, sources said. Westlake also acquired an ownership stake in the loans.The Los Angeles firm is a routine issuer of subprime auto-loan bonds, most recently pricing a $1 billion offering on Jan. 17 that carried single-A grades from S&P...



CLO Tweak Raises Investors' Ire

Fri, 09 Mar 2018
Collateralized loan obligation investors are mobilizing against the expansion of a profit-taking tactic that favors equity holders.At issue are so-called par-flush provisions in which managers can route trading profits directly to their deals’ first-loss pieces. While such mechanisms already are common, they began to attract more attention amid proposals to allow them for longer periods.The response from senior and mezzanine noteholders has...



Rule Discrepancy Vexes CLO Buyers

Fri, 09 Mar 2018
Collateralized loan obligation investors in Europe are nervous that they may soon have less access to offerings from the U.S.At issue is the U.S. Court of Appeals for the District of Columbia Circuit’s Feb. 9 ruling that the Federal Reserve and SEC were mistaken in applying the Dodd-Frank Act’s risk-retention rule to CLOs. The concern is that as some managers respond by floating deals without keeping skin in the game, their offerings...



No Rebound for Subprime Autos

Fri, 09 Mar 2018
The performance of securitized pools of subprime auto loans continued to sputter last month, defying expectations of a post-holiday rebound.According to an index maintained by Fitch, delinquencies among subprime-loan pools rose 49 bp to 5.76% during the month ended Feb. 15. That’s the highest reading since Fitch started tracking auto-loan securitizations in 2001. Losses also worsened, ticking up 16 bp to an annualized 9.82%. Subprime...



CLO Bid List Seen as Anomaly

Fri, 09 Mar 2018
Secondary-market traders were buzzing about a massive batch of collateralized loan obligation securities that went out for bid late on March 5 — while keeping their expectations for more volume in check.The $650 million offering, described as coming from an undisclosed bank’s treasury portfolio, sold the next day amid strong demand. Sources said dealers including Morgan Stanley likely were the buyers, given the fact that the bonds...



Deutsche Adding Custody Tool

Fri, 09 Mar 2018
Deutsche Bank’s corporate-trust unit is offering to store and track electronic documents for mortgage originators.The effort currently is in a pilot phase, with several lenders taking part. Assuming it catches on, Deutsche plans to pitch the service as improving the efficiency with which home loans can be securitized.The participants in Deutsche’s pilot program are angling to be some of the first to fully digitize the mortgage...



Buyers Target Rental-Home Subs

Fri, 09 Mar 2018
Subordinate securities backed by rental-home receivables are selling briskly.Specifically, secondary-market traders said they have received an unusual number of inquiries in recent weeks from investors seeking the deals’ Class-F securities, which typically carry triple-B grades and five-year lives.The buyers have included a number of asset managers and corporate treasury operations that want to find higher-yielding alternatives to Treasury...



The Grapevine

Fri, 09 Mar 2018
Barclays appointed Will Zak as head of securitized-product trading on March 2. Zak takes over for Chris Haid, who was snared in a round of layoffs in January. His assignment encompasses trading of asset-backed bonds, residential mortgage securities and commercial mortgage products. The New York-based Zak arrived at Barclays in 2004 from SMBC Capital.



The Grapevine

Fri, 09 Mar 2018
The buzz is that Cantor Fitzgerald paid heavily to bring in Jim Buccola as head of its fixed-income division, with some sources pegging his annual compensation package at $12 million to $15 million. Word on the street is that Buccola was taking home about $9 million per year in his former role as Credit Suisse’s head structured-product trader, and that he sought a raise the bank was unwilling to provide. But Cantor apparently was ready to...



The Grapevine

Fri, 09 Mar 2018
Richard Tantone has signed on as head of an RBC unit that supplies warehouse financing to collateralized loan obligation issuers. Tantone arrived in the bank’s New York office in February. His resume includes two stints at Citigroup, most recently from 2004 to February 2018 and before that from 2000 to 2003 — with a stop at Deutsche Bank in...



The Grapevine

Fri, 09 Mar 2018
Executive director Sunil Rohra left Natixis’ collateralized loan obligation-underwriting unit in late February, apparently to take a similar job at J.P. Morgan. Rohra had been stationed in Natixis’ New York office since 2016. Before that, he worked at Moody’s, the FDIC and Bank of America.



The Grapevine

Fri, 09 Mar 2018
Word is circulating that Credit Agricole has zeroed in on a candidate to assume leadership of its asset-backed securities syndicate desk. The recruit would take over for David Stern, who left the bank’s New York office in December to take a similar post at TD Bank. Stern had been on board since 2009.



The Grapevine

Fri, 09 Mar 2018
Several employees have left Orchard Platform, a New York firm that offers data and brokerage services to participants in the marketplace-lending industry. Among those gone is business-development head Ethan Schwarzbach. He is now part of a group that is starting a Charleston, S.C., operation called inFactorIQ that helps marketplace lenders distribute their accounts. Schwarzbach had joined Orchard in 2015 from RBS. Also out is Jeremiah Neal, a...



The Grapevine

Fri, 09 Mar 2018
Barry Rafferty has left his post as capital-markets chief at online personal-loan originator Upstart. Rafferty’s plans are unknown. He had joined the San Carlos, Calif., company in November 2016 from OneMain Financial, having started at OneMain predecessor Springleaf Financial in 2014. He also has worked at J.P. Morgan and Citigroup. Upstart launched a securitization program in 2017. So far, it has completed two deals totaling $338.2...



The Grapevine

Fri, 09 Mar 2018
Salvatore Salzillo has left his post as a senior vice president in charge of commercial-lending activities at BofI Federal Bank, a role in which he assembled structured-finance transactions for commercial real estate and equipment-leasing companies. Salzillo had joined the San Diego parent of Bank of Internet USA in 2012 from Key Equipment Finance. His former employers also include the FDIC, Export-Import Bank of the United States, GE Capital and...



SEC Preps Action Over Prosper's Returns

Fri, 02 Mar 2018
The SEC is set to file a complaint against Prosper Marketplace for overstating returns on its personal loans.Sources said the SEC plans to submit a civil lawsuit soon, and will seek a fine. The regulator apparently has been investigating the matter for about a year, focusing on disparities between the returns listed on loan buyers’ statements and the lower amounts they actually received.There also is talk that the Department of Justice has...



ED&F Bowing Out of Secondary Market

Fri, 02 Mar 2018
Broker-dealer ED&F Man is getting out of the market for structured products.Group head Darryl Smith already is in the process of laying off his New York-based sales and trading staff, sources said. Smith will exit as well.Among those on their way out are collateralized loan obligation specialists Stanton Lenahan and Anthony Veltri. Lenahan, formerly of Guggenheim, had started in 2015 as one of Smith’s first recruits. He is looking for a new...



Finra Scrutiny Sidelines Amherst Sales Pro

Fri, 02 Mar 2018
Amherst Pierpont Securities has placed managing director Ryan Stroker on leave amid accusations from Finra that he committed securities fraud.Amherst removed Stroker from his New York post in January. The move followed an internal recommendation from Finra on Sept. 13 that he face disciplinary action for allegedly violating two of its guidelines and a separate SEC regulation.Finra’s investigation looked into an unspecified series of...



US Bank Chases Origination Work

Fri, 02 Mar 2018
U.S. Bank is seeking a larger presence as an asset-backed bond underwriter.The bank already has been active in the market for about two years, winning co-manager assignments mainly as a byproduct of its work as a warehouse lender. The next step, beginning now, is to assume a more active role in origination and structuring.The plan for the immediate future is to continue working as a co-manager. But U.S. Bank expects to land bookrunning mandates...



Goldman's Marcus Unit Shuns ABS

Fri, 02 Mar 2018
Goldman Sachs doesn’t plan to use securitization to fund its personal-loan business, dubbed Marcus.That’s the word from a bank spokesman following a Feb. 27 report in The Wall Street Journal about plans to expand Marcus beyond personal loans to include auto loans, mortgages and other types of consumer financing. The initiative had prompted speculation among securitization professionals and investors that Marcus could become a routine...



Aircraft Supply Keeps Climbing

Fri, 02 Mar 2018
The market for aircraft-lease securities is still running strong.As many as 18 potential issuers have approached rating agencies to discuss offerings that they might bring to market this year. Among them are a number of repeat participants, including Aergen and Castlelake, along with some first-time players.Two deals already have priced in the asset class this year. On Jan. 23, Apollo Aviation priced $422.3 million of bonds with DVB Bank, Goldman...



CLO Default Seen as Case Study

Fri, 02 Mar 2018
The default of a collateralized loan obligation issued by Airlie Group offered a rare glimpse into the events that can lead to losses for bondholders in such transactions.Airlie CLO, 2006-2, unwound in late 2017 after controlling noteholders exercised a call option. The move saw senior and upper mezzanine investors recover all of their principal, with some lower mezzanine bonds that initially carried double-B ratings from Moody’s and S&P...



China Bank Maps US Offerings

Fri, 02 Mar 2018
A U.S. warehouse-lending program at China Merchants Bank is expected to yield its first securitizations this year.Some of the deals would be backed by business loans that the Shenzhen-based institution’s New York office has been financing for originators and collateralized loan obligation issuers. Others would involve aircraft receivables and commercial mortgages.The transactions would mark the next step in an effort that saw China...



Issuance Revs Up Post-Vegas

Fri, 02 Mar 2018
Following a brief lull coinciding with the industry’s annual conference in Las Vegas, asset-backed bond issuers and investors are gearing up for what is expected to be a busy month.Many of the most active auto-finance companies, credit-card issuers and education lenders have deals in the works, including American Express, Citigroup, Ford, General Motors Financial, J.P. Morgan, Navient, Sallie Mae and Santander Consumer USA. For the month of...



Industry Pro Launches Shop

Fri, 02 Mar 2018
Structured-finance veteran Jennifer McGuinness has started a business that assists lenders with originations, financing, servicing and asset management.Strategic Venture Partners opened its doors about a week ago. The firm caters to lending operations that may have solid business models but lack expertise in certain areas — say, raising capital or servicing loans.For example, McGuinness hopes to advise online lenders that have developed...



The Grapevine

Fri, 02 Mar 2018
Managing director Kevin Webb has left Jefferies, where he helped oversee a push to buy and securitize marketplace-originated personal loans. His destination: The Greenville, S.C., office of subprime auto lender Global Lending Services, as head of capital markets. Webb had arrived at Jefferies in 2011 after stops at Corre Partners, Lehman Brothers and Wachovia. Global Lending Services has completed four securitizations totaling $803.8 million so...



The Grapevine

Fri, 02 Mar 2018
Credit Suisse has added a senior staffer to a Chicago operation called Sector Financial that offers warehouse lines to asset-backed bond issuers, with a focus on buyers of marketplace-originated personal loans. The recruit, Don Potts, most recently was a top relationship manager for a similar program at Capital One — but apparently began looking for a new job when the bank pulled back from marketplace-loan financing last year. He had...



The Grapevine

Fri, 02 Mar 2018
Cantor Fitzgerald added two more sales specialists to its New York office about a week ago, bringing in Gregory Conn and Joe Reardon to cover mortgage bonds. Conn had been employed at Citigroup since 2005, most recently as a member of the bank’s asset-backed securities syndicate desk. He also has worked at Yield Book. Reardon was a managing director at Brownstone Investment, which he joined in 2015 after a stint at Deutsche Bank. The...



The Grapevine

Fri, 02 Mar 2018
Sales specialist Justin Titus is leaving the Chicago office of J.P. Morgan, where he has covered a range of structured products since 2009. Titus’ destination is unknown. He earlier worked at Citigroup, by way of its purchase of Salomon Brothers, and spent time at Lehman Brothers.



The Grapevine

Fri, 02 Mar 2018
Sales specialist John Pagan started in Oppenheimer & Co.’s New York office last week, covering a mix of asset- and mortgage-backed securities. Pagan had worked in a similar role at CastleOak Securities since 2016. Earlier, he was at Mint Partners, BGC Financial and Tullett Prebon. At Oppenheimer, he reports to managing director Behzad Mansouri.



The Grapevine

Fri, 02 Mar 2018
Nomura added a senior associate to its structured-product sales desk in Manhattan Beach, Calif., last week. The recruit, Michaela Miro, most recently was a director at Cantor Fitzgerald and before was at HSBC Global Asset Management.



The Grapevine

Fri, 02 Mar 2018
The Structured Finance Industry Group is seeking an education manager. The recruit would work in Washington, with duties including the development of a quarterly trade journal, professional-development programs and industry research. He or she also would absorb some conference-organization duties that formerly were held by Scott Brody, who left the trade group in November. Brody had just arrived in May on the heels of a decision by SFIG not to...



The Grapevine

Fri, 02 Mar 2018
Wilmington Trust has two openings on its capital-markets team. One of the vacancies is for a structured-finance transaction manager with 4-6 years of experience. The other is for a cashflow-modeling specialist with 3-5 years in the field. The recruits could work in New York, Minneapolis, Buffalo, Baltimore, Chicago or Wilmington, Del. Candidates can apply at mtb.com by clicking on “careers” and entering job number 3DGR6 or...



The Grapevine

Fri, 02 Mar 2018
Empirasign is seeking a marketing specialist. The recruit would work in the data company’s New York headquarters, pitching trading-focused information on asset-backed bonds, mortgage securities and collateralized loan obligations to banks and investors. He or she would report to founder Adam Murphy.



Vegas Conference Feeding Off Hot Market

Fri, 23 Feb 2018
With issuance volume at a fever pitch and increasing optimism about the regulatory climate, a record number of industry professionals are descending on Las Vegas with packed meeting schedules and bullish spirits.The Structured Finance Industry Group and Information Management Network so far have signed up nearly 7,000 people for the “SFIG Vegas” conference, scheduled for Feb. 25-28 at the Aria Resort & Casino. And last-minute...



PennyMac Jumps Back Into Jumbo Loans

Fri, 23 Feb 2018
PennyMac is re-starting its jumbo-mortgage program, with securitization as a funding source.The origination side of the initiative is set to launch soon, with PennyMac aggregating the accounts from wholesale brokers and retail channels, and later, correspondent lenders. A securitization could occur by yearend, with routine offerings to follow.A REIT affiliate, PennyMac Mortgage Investment, would fill the role of issuer. PennyMac also plans to...



Gordian Knot Toying With SIV Re-Launch

Fri, 23 Feb 2018
Gordian Knot hasn’t given up on the market for structured investment vehicles.The London firm once ran an SIV called Sigma Finance that was the largest of its kind, with a portfolio of $45 billion. But the vehicle and all others like it failed after the 2007 financial-market crash.Now comes word that Gordian Knot founders Stephen Partridge-Hicks and Nicholas Sossidis were in the U.S. in recent weeks in an early attempt to determine the...



PayPal to Offer Business-Loan Bonds

Fri, 23 Feb 2018
PayPal is developing a small-business loan securitization program.Executives from the San Jose company have discussed the plan with underwriters and rating agencies in recent weeks, signaling a desire to float an offering of perhaps $500 million late this year or in early 2019.While PayPal has been considering securitization to fund its small-business loans for some time, the company only began moving ahead with the effort in earnest after buying...



Auto Lender Charting Program

Fri, 23 Feb 2018
A subprime auto lender that launched in 2007 is preparing to issue asset-backed bonds for the first time.The effort dovetails with an initiative in which the Gretna, La., operation plans to expand its origination business and is in the process of changing its name to 1803 Capital from National Auto Acceptance. It also reflects the influence of securitization veterans Scott Friedman and Patrick Ghere, who bought a stake in the business last...



AXA Bumping Up CLO Production

Fri, 23 Feb 2018
AXA is planning a further increase in its output of collateralized loan obligations.The insurer is expected to carry out three or four deals in the U.S. in 2018, up from two in 2017 and one per year from 2013 through 2016. Its first offering of 2018 likely will hit the market in the coming weeks, with a projected size of $400 million to $500 million.Goldman Sachs will run the books. Morgan Stanley, meanwhile, already is in talks to lead a...



CP Demand Soars on Tax Rule

Fri, 23 Feb 2018
As they prepare to repatriate vast sums of capital held abroad, U.S. companies are exploring the idea of temporarily parking some of the money in asset-backed commercial paper.Large pharmaceutical and technology businesses appear to be leading the pack, including Alphabet, Apple, Eli Lilly and Pfizer. Some smaller companies in the same industries also are mulling purchases at the instruction of their treasury units.The repatriation plans are tied...



Lenders Seek Feedback from Ginnie

Fri, 23 Feb 2018
Rattled by Ginnie Mae’s crackdown on aggressive refinancing of U.S. Department of Veterans Affairs mortgages, originators are asking the agency to specify what it views as unacceptable.At issue is a warning that Ginnie issued to nine lenders last week, informing them it would kick them out of its main mortgage-bond program unless they corrected their behavior. Specifically, the companies are suspected of rapidly refinancing veterans’...



Auto Lenders Tighten Credit

Fri, 23 Feb 2018
Data from DBRS quantifies ongoing steps that auto lenders took to reduce risk last year after their loan portfolios experienced higher-than-expected losses in 2015.Consider that borrowers with credit scores of 620-659 — at the high end of the subprime spectrum — accounted for an average of 43.6% of the lenders’ portfolios during the third quarter of 2017, up from a record low of 40.5%, on average, in 2015. And subprime-loan...



Real Estate Startup Joins Pipeline

Fri, 23 Feb 2018
A startup that originates fix-and-flip loans and buys distressed homes is looking at securitization.Aperture Real Estate is a ways off from its first bond offering. But it is interested in entering the market to fund both of its business lines, should they grow large enough. A securitization of fix-and-flip loans would employ a conventional structure in which loan payments would feed distributions to bondholders. A distressed-property offering...



Loan-Pricing Tool Adds DealVector

Fri, 23 Feb 2018
Collateralized loan obligation investors using Thomson Reuters’ loan-pricing information service soon will be able to connect with other investors via DealVector’s messaging system.The arrangement will allow Thomson’s clients to instantly share information about loan and bond prices, liquidity sources and deal-governance issues. DealVector’s clients, meanwhile, will gain access to an extended network of investors who use...



TIG Seeks More Buying Power

Fri, 23 Feb 2018
TIG Advisors is aiming to bring in some fresh capital for two of its structured-product funds.It’s unclear how much the New York firm intends to raise for the entities, TIG Securitized Asset Fund and TIG Sunrise Master Fund. TIG Securitized Asset Fund finished 2017 with $500 million under management, down perhaps $60 million from a year earlier. TIG Sunrise had $150 million under management, up $60 million.While both hedge funds already...



Bond Ratings Boost Exeter Plan

Fri, 23 Feb 2018
The prospects for a sale of Exeter Finance have improved, now that the subprime auto lender’s bonds are earning triple-A ratings from Moody’s and S&P.The Blackstone portfolio company long has relied on securitization as a funding source, but only saw its deals earn top grades from DBRS. That changed on Jan. 22, when a $550 million offering also earned the highest possible marks from Moody’s and S&P.Moody’s rating...



REGULATORY ROUNDUP

Fri, 23 Feb 2018
Government Actions Align to Market’s BenefitThe regulatory landscape continues to shift in favor of the structured-finance industry, with help from all branches of government.A Feb. 9 ruling by a U.S. Appeals Court panel in Washington that the Federal Reserve and SEC were wrong to apply the Dodd-Frank Act’s risk-retention rule to collateralized loan obligations has opened the door for other securitized products to gain the same...



REGULATORY ROUNDUP

Fri, 23 Feb 2018
Risk Retention — Fed, SEC, TreasuryA three-judge panel on the U.S. Court of Appeals for the District of Columbia Circuit ruled on Feb. 9 that the Federal Reserve and SEC were mistaken in applying the Dodd-Frank Act’s risk-retention rule to collateralized loan obligations, igniting talk that other types of securitizations also could be exempt. For CLOs, expectations are that the decision could prompt the return of some issuers that sat...



REGULATORY ROUNDUP

Fri, 23 Feb 2018
Mortgage Agencies — CongressThe Senate Banking Committee is pushing to take Fannie Mae and Freddie Mac out of government conservatorship and place them in receivership. The plan, released in draft form on Jan. 31, would have the agencies emerge as smaller, private entities that would compete with at least five other bond insurers. Ginnie Mae, meanwhile, would become the only government-sponsored enterprise offering explicit guarantees on...



REGULATORY ROUNDUP

Fri, 23 Feb 2018
Covered Bonds — CongressEfforts to develop a regulatory framework for covered-bond sales in the U.S. received a boost on Feb. 8, when the Senate Banking Committee approved Trump Administration nominee Jelena McWilliams to head the FDIC. McWilliams most recently was chief counsel at Fifth Third Bank. She earlier was on the staff of Sen. Mike Crapo (R-Idaho), who was behind a series of covered-bond bills that failed when former FDIC heads...



REGULATORY ROUNDUP

Fri, 23 Feb 2018
STS Rules — European RegulatorsApril looks like the timeframe for the European Banking Authority to release a more detailed version of a sweeping set of securitization-focused regulations. The outlook comes after the EBA and the European Securities and Markets Authority requested input on the process in December, as they stepped in following European Parliament’s approval of the new framework on Oct. 26. At the center of the...



REGULATORY ROUNDUP

Fri, 23 Feb 2018
Capital Reserves — BISThe Bank for International Settlements finalized development of its so-called Basel 3 rules on Dec. 7, setting a unified risk-weight floor for structured products in the U.S. and Europe. The figure, used in calculations of risk-based capital reserves, had received stricter treatment from the Federal Reserve and other U.S. regulators than from their counterparts in Europe. The BIS opted for the U.S. standard, with an...



REGULATORY ROUNDUP

Fri, 23 Feb 2018
CFPB — CongressThe Nov. 24 resignation of Consumer Financial Protection Bureau director Richard Cordray has paved the way for a reduction in the agency’s activities. Answering complaints from Trump Administration officials and other Republicans about the CFPB, interim director Mick Mulvaney already has tapped the brakes on several initiatives — including an investigation of Equifax’s 2017 data breach and lawsuits against...



REGULATORY ROUNDUP

Fri, 23 Feb 2018
Common Securitization Platform — FHFAThe Federal Housing Finance Agency continues to work toward a 2019 target date to begin issuing agency mortgage bonds through the Common Securitization Platform. But even that long-delayed timeframe is in doubt. That’s in part because a Senate Banking Committee proposal to reposition Fannie Mae and Freddie Mac as private mortgage-bond guarantors could upend the entire effort.Under that scenario,...



REGULATORY ROUNDUP

Fri, 23 Feb 2018
Marketplace Lending — CongressThe House passed a measure on Feb. 14 that would lessen the effects of state usury laws on sales of marketplace loans. The Protecting Consumers Access to Credit Act would reinforce a provision in the National Bank Act under which bank-originated loans could be sold or transferred to non-bank institutions at their original interest rates, no matter how high. In doing so, it would address concerns surrounding the...



REGULATORY ROUNDUP

Fri, 23 Feb 2018
Libor — U.K. GovernmentThe Federal Reserve, Structured Finance Industry Group and Loan Syndications and Trading Association are among the entities discussing how to respond to the U.K. Financial Conduct Authority’s proposed elimination of Libor. Among the more likely scenarios would be for Intercontinental Exchange or another data company to maintain the benchmark for existing deals, with future offerings pegged to a new rate. To that...



REGULATORY ROUNDUP

Fri, 23 Feb 2018
Trade Reporting — FinraThere’s still no word on when Finra will release trade-by-trade details for secondary-market sales of mortgage bonds and collateralized loan obligation notes. The self-regulatory agency was expected to set a date early last year, following several delays, but has kept mum on the matter. Finra already has been releasing aggregate trading data for mortgage bonds and CLOs daily through its Trade Reporting and...



REGULATORY ROUNDUP

Fri, 23 Feb 2018
Student Loans — Department of EducationThe House is expected to begin debating the Promoting Real Opportunity, Success, and Prosperity through Higher Education Reform Act (Prosper Act) in the coming weeks. The proposal, introduced Dec. 1 by Rep. Virginia Foxx (R-N.C.), would reauthorize the Higher Education Act — and in the process reduce the amounts that certain students could borrow directly from the U.S. Department of Education....



Radian Rolls Out New Sales Team

Fri, 23 Feb 2018
Radian Group is taking its newly configured sales team on the road.The Philadelphia mortgage insurer officially launched its “enterprise-sales” unit on Feb. 13. Headed by Brien McMahon, the unit’s mandate is to offer clients a suite of products across its parents’ business lines, including due-diligence shop Clayton Holdings, asset manager Green River Capital, brokerage Red Bell Real Estate and real estate-data supplier...



The Grapevine

Fri, 23 Feb 2018
Former BNP Paribas executive Fabrice Susini has a new job. Susini now works in Riyadh, Saudi Arabia, as chief executive of a government-sponsored operation called Saudi Real Estate Refinance whose mission is to improve conditions in the nation’s real estate market — in part by issuing mortgage bonds in the U.S. and Europe. That operation, established in 2017, falls under the umbrella of Saudi Arabia’s sovereign wealth fund....



The Grapevine

Fri, 23 Feb 2018
Bank of America sales specialist Arin Chilcote gave notice this week. Word has it that Chilcote is headed to Cantor Fitzgerald, which has continued a recruiting effort that included the September hiring of a bond-trading team from Credit Suisse. Chilcote, a managing director at BofA, has been working in the bank’s Chicago office since 2014. He also has worked at RBS, J.P. Morgan and Credit...



The Grapevine

Fri, 23 Feb 2018
Industry participants are pointing to friction with members of the Hunt family as the reason for William Jennings’ Feb. 9 resignation as president of Hunt Financial Securities. Specifically, sources said Jennings’ hard-charging management style didn’t mesh with the approach preferred by Chris Hunt, the chief executive of parent company Hunt Cos. Jennings, a former Jefferies executive who arrived at Hunt Financial less than a...



The Grapevine

Fri, 23 Feb 2018
Moody’s has appointed an insider to oversee ratings of bonds backed by corporate assets, including securities underpinned by equipment leases, whole-business cashflows, cellular-tower payments, solar-equipment leases and transportation-related receivables. Yian Ning Loh, an associate managing director, will transfer from Hong Kong to New York to assume the post on April 1 under managing director Jian Hu. He replaces Luisa De Gaetano, who...



The Grapevine

Fri, 23 Feb 2018
Collateralized loan obligation-structuring specialist Adam Schwartz left BNP Paribas this week to re-join Morgan Stanley as an executive director. Schwartz joined BNP in 2016 from Morgan Stanley, where he had been employed since 2003.



The Grapevine

Fri, 23 Feb 2018
Pretium Partners added an analyst to its collateralized loan obligation-issuing unit this week. Sajedur Rahman comes to the New York operation from RBC’s leveraged-finance division, where he worked since 2015. Rahman previously spent time at Morgan Stanley, Moody’s, Entrust Capital, PricewaterhouseCoopers and Ernst & Young. Pretium entered the CLO business with its 2017 purchase of Valcour...



The Grapevine

Fri, 23 Feb 2018
DLA Piper is adding a senior attorney to its securitization practice in New York. Eric Peterman arrived Feb. 19 from Weil Gotshal, where he worked since 2002 with a focus on collateralized loan obligations. Peterman previously spent time at Fried Frank.



The Grapevine

Fri, 23 Feb 2018
Loan-data company DV01 expects to hire a half-dozen employees in the next six months, after bringing its headcount to 34 with the additions of four staffers already this year. The growth reflects an increase in the New York operation’s client base, which consists mostly of companies involved in marketplace-originated personal loans and related bonds. And after conducting a pilot program with two banks, it plans to track mortgage products....



S&P Cuts Staff in Structured-Finance Unit

Fri, 16 Feb 2018
S&P this week laid off more than a dozen executives from its structured-finance division.The cuts, which the agency said were aimed at streamlining the unit, affected senior staffers in the U.S. and Europe, including some who had been with the company for more than 20 years.Among those shown the door: Felix Herrera, chief credit officer for structured finance; Philip Galgano, who oversaw ratings of asset-backed commercial paper; Belinda Ghetti,...



Free-for-All Follows Dodd-Frank Decision

Fri, 16 Feb 2018
With collateralized loan obligations now exempt from the Dodd-Frank Act’s risk-retention rule, issuers of asset- and mortgage-backed securities are scrambling to gain similar treatment.At the core of their efforts is the reasoning behind the U.S. Appeals Court’s Feb. 9 ruling that CLOs should be spared from the skin-in-the-game requirement: that the issuers buy the deals’ underlying receivables, as opposed to originating them (see article...



Bonds Favored for Sallie's Personal Loans

Fri, 16 Feb 2018
Sallie Mae Bank increasingly is looking like a candidate to issue personal-loan securities.Industry participants are envisioning an initial bond sale of $500 million to $1 billion that would hit the market late this year. The underlying accounts would consist mainly of marketplace loans that the Newark, Del., operation has been buying from Lending Club.Sallie began accumulating personal loans in significant volumes during the second half of 2017,...



Bonds at Center of Pimco RPL Push

Fri, 16 Feb 2018
Pimco is buying portfolios of reperforming mortgages, with plans to package them into bonds that its investment funds would retain.The effort quietly launched a few weeks ago with the purchase of a $2 billion pool of reperformers from Wells Fargo, which has been working to reduce its holdings of those accounts. Goldman Sachs represented Pimco in that transaction.The next step is for Goldman to help the Newport Beach, Calif., firm securitize the...



UK Deals Remain Scant in US

Fri, 16 Feb 2018
The inclusion of dollar-denominated tranches in two recent U.K. mortgage securitizations is raising hopes among U.S. investors that European issuers will begin marketing more deals in the States.A $704.8 million offering that Clydesdale Bank priced on Jan. 24 included a $300 million chunk denominated in dollars. Nationwide Building Society also was marketing a deal of unknown size in New York this week.During all of 2017, U.K. mortgage lenders...



Lenders Opt for Certificate Sales

Fri, 16 Feb 2018
Lending Club and Upgrade are adding a tool to their personal-loan distribution strategies.The efforts involve offerings of unrated pass-through certificates tied to the companies’ loan pools, as opposed to direct sales of the marketplace-originated accounts. Sources said Lending Club issued its first such certificates in January, possibly with help from Goldman Sachs. Upgrade completed an initial offering in December with assistance from...



Equipment Lender Adds to Calendar

Fri, 16 Feb 2018
Equipment-finance company Commercial Credit Group is planning a second securitization for this year.The Charlotte company had come to market once per year since launching its asset-backed bond program in 2012, always in the second or third quarter. But after completing a $305.7 million transaction on Feb. 5, it has signaled plans to return with a fourth-quarter offering.BMO Capital, J.P. Morgan and Wells Fargo are expected to run the books, as...



GM Readies Subprime-Loan Deal

Fri, 16 Feb 2018
General Motors Financial is preparing a subprime-auto-loan securitization.The deal, expected to price in the next few weeks, will be in excess of $1 billion. Its top class will carry triple-A ratings from Moody’s and S&P. To structure and distribute its deals, GM Financial relies on a pool of bookrunners including Barclays, Citigroup, Deutsche Bank, J.P. Morgan, RBC and Wells Fargo.The planned offering will come on the heels of a $1.25...



No Surge Seen From CLO Ruling

Fri, 16 Feb 2018
Collateralized loan obligation issuers are downplaying the potential that their newfound exemption from the Dodd-Frank Act’s risk-retention rule will bring a near-term jump in deal volume.Ever since the Loan Syndications and Trading Association challenged the regulation by suing the Federal Reserve and SEC in U.S. Appeals Court in Washington in 2014, the talk was that a decision in the trade group’s favor would lure more issuers into...



The Grapevine

Fri, 16 Feb 2018
Christopher Choate will retire from his post as chief financial officer at General Motors Financial on April 2. Choate joined the Fort Worth, Texas, office of the General Motors unit via its 2010 takeover of subprime auto lender AmeriCredit Financial, where he started in 1991 and became CFO in 2005. Before that, he was at Jones Day. GM Financial treasurer Susan Sheffield will take over his post, with Richard Gokenbach assuming her duties. GM...



The Grapevine

Fri, 16 Feb 2018
Morningstar has elevated Rohit Bharill to head of asset-backed securities ratings while placing Kevin Dwyer in charge of grading mortgage bonds. Bharill and Dwyer previously worked within those units under Brian Grow, who was promoted from managing director to president on Feb. 13. Bharill joined Morningstar from Moody’s in 2015. Dwyer arrived from Allonhill in...



The Grapevine

Fri, 16 Feb 2018
Pretium Partners’ collateralized loan obligation management unit has hired an analyst. Jack Palma started at the New York operation this week. He had been at Fifth Street Asset Management, a CLO issuer, since May. He also has spent time at Natixis, Credit Suisse and Paul Hastings. Pretium entered the CLO business with its 2017 purchase of issuer Valcour Capital. On Feb. 12, it priced a $458 million under that firm’s Crown Point CLO...



The Grapevine

Fri, 16 Feb 2018
Moody’s has two job openings. One is for a lead analyst who would develop cashflow models and analyze documents for collateralized loan obligations. The other would be an analyst covering deals backed by auto loans, dealer-floorplan loans and private student loans. Both New York-based positions require experience in structured finance. Candidates can apply at moodys.com by clicking on “careers” and entering job number 12128BR or...



The Grapevine

Fri, 16 Feb 2018
Sales specialist Matthew Giammarinaro started this week in Piper Jaffray’s Charlotte office. Giammarinaro previously covered mortgage bonds at Janney Montgomery Scott, which he joined in 2016 after stops at RBC, the Federal Housing Finance Agency, Bank of America, 400 Capital, Merrill Lynch, Countrywide and Legg Mason.



The Grapevine

Fri, 16 Feb 2018
Personal lender Affirm is seeking a capital-markets staffer. The recruit’s duties would include aiding in the development of a securitization program that the San Francisco firm has been planning under capital-markets head Zara Ivanova, who arrived last year from education lender Earnest. Affirm is focusing on candidates with one to four years of experience. The firm is led by PayPal co-founder Max...



The Grapevine

Fri, 16 Feb 2018
Hunton & Williams is seeking an associate. The recruit would work in New York, representing a mix of parties involved in asset- and mortgage-backed bond issues. Candidates can apply at hunton.com by clicking on “careers” and entering job number 17-0262.



The Grapevine

Fri, 16 Feb 2018
Financial-engineering firm Thomas Ho Co. has hired a head of whole-loan trading. As a managing director at the New York operation, Udoma Onwuachi covers a mix of products including home loans, auto loans and commercial mortgages. Onwuachi had been employed at Mortgage Industry Advisory Corp. since February 2017. He also has worked at Anigriv and Intercontinental...



The Grapevine

Fri, 16 Feb 2018
Hedge fund operator Hudson Cove Capital has recruited a head of business development and investor relations. Constance Sng joined the Jersey City, N.J., firm in January from Moore Capital, where she was employed since 2009. Sng also has worked at Satellite Asset Management, Credit Suisse Asset Management, Citigroup Asset Management and Standard Chartered Bank. Hudson also is looking for an investment analyst with 2-5 years of experience....



SFIG Adding Headliner Conference in DC

Fri, 09 Feb 2018
The Structured Finance Industry Group is planning a main-event conference that would take place on the heels of Information Management Network’s “ABS East” gathering.“SFIG DC” is scheduled for Sept. 30-Oct. 2 at the Marriott Wardman Park hotel in Washington. ABS East, meanwhile, is set for Sept. 17-19 at the Fontainebleau in Miami Beach.With two major back-to-back conferences geared toward the same audience,...



Citi Developing Non-QM Issuance Program

Fri, 09 Feb 2018
Citigroup is poised to securitize home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” guidelines.Sources said Citi has begun aggregating non-qualified mortgages originated by other lenders, with the timing and size of a debut bond offering dependent on the pace of that effort. But the first deal is expected to hit the market sometime in the second half, after which the bank would...



Ranieri Backs Clayton Alumni's Venture

Fri, 09 Feb 2018
Lewis Ranieri’s Selene Holdings is backing a new due-diligence business.The New York operation, New Diligence Advisors, initially is focusing on reviewing home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards. It also is covering nonperforming and reperforming accounts.Working with Ranieri are Mark Hughes, Tom Donatacci and Ann Gibbons. Hughes, a former Clayton Holdings...



Demand Deepens in CLO Sector

Fri, 09 Feb 2018
(SEE CORRECTION BELOW) U.S. investors’ appetites for collateralized loan obligations remain on the rise. In a continuation of a long-running trend, early 2018 has seen growing demand for CLOs both from existing investors and newcomers. Asset managers in particular have drawn attention, with firms including Elliott Management and GoldenTree Asset Management resuming buy-side activities after prolonged absences. Equity buyer Eagle Point Credit...



Non-QM Deals Beckon for REIT

Fri, 09 Feb 2018
New Residential Investment is looking at securitization to fund a non-qualified mortgage business that it will inherit with its purchase of Shellpoint Mortgage.New Residential agreed to the acquisition in November and is due to close by midyear. The expectation is that before yearend, it would complete its first bond offering backed by non-qualified loans — that is, accounts that don’t meet the Consumer Financial Protection...



Kroll Chases CLO-Rating Work

Fri, 09 Feb 2018
Kroll is expanding its collateralized loan obligation rating business to encompass deals backed by leveraged loans, at a time of already-increasing competition among its peers.Sources said the agency is about to hire a senior official to oversee the effort from New York, with more staff additions likely to follow. The initiative would involve deals backed by loans to both large and mid-size companies.Kroll’s CLO-rating activities to date...



Ellington Pitching Debt Fund

Fri, 09 Feb 2018
Ellington Management is assembling a fund that would invest in an array of loans and structured products.The Old Greenwich, Conn., firm started marketing its Ellington Private Opportunities Fund 2 in January with a $300 million capital-raising goal. It plans to deploy the capital, in part, by taking advantage of opportunities that are too small for banks and large asset managers while capitalizing on deleveraging efforts among major financial...



Tetragon Adding to CLO Holdings

Fri, 09 Feb 2018
Tetragon Credit is marketing the latest entry in its collateralized loan obligation fund series.The New York unit of Tetragon Financial hopes to raise $500 million to $600 million for the vehicle, Tetragon Credit Income 3. It plans to use the money mainly to buy equity in CLOs issued by affiliate LCM Asset Management and other shops, thus helping them comply with the Dodd-Frank Act’s risk-retention rule.The fund would have the flexibility...



Investors Fear Fallout From Ally Move

Fri, 09 Feb 2018
Ally Financial’s retreat from the asset-backed bond market could deprive investors of deals from other issuers as well.How so? While it’s been clear for some time that Ally intends to rely increasingly on deposits to fund its own lending activities, the Detroit company recently has inked deals with other auto lenders under which it is drawing on its massive deposit base to supply “permanent financing.” So far, it has...



Weak Start for Auto-Loan Pools

Fri, 09 Feb 2018
Losses among securitized pools of prime-quality auto loans worsened during the month ended Jan. 15.According to an index maintained by Fitch, those accounts saw losses rise 11 bp to an annualized 0.78%. That’s the second-highest reading since 2011, trailing only the February 2017 figure of 0.80%. Prime-loan delinquencies also ticked up, increasing 2 bp to 0.41%. Among subprime pools, losses jumped 66 bp to an annualized 9.66% and...



Issuers, Buyers Take Turmoil in Stride

Fri, 09 Feb 2018
Structured-product issuers and investors largely shrugged off volatility that roiled the stock market in the past week.While the Dow Jones Industrial Average posted its steepest one-day point drop on Feb. 5, and swung by triple- and quadruple digits the rest of the week, issuers showed no hesitation selling asset-backed securities, mortgage bonds and collateralized loan obligations. Indeed, from Feb. 5-8, U.S. structured-product issuance totaled...



Erosion Seen in Europe CLOs

Fri, 09 Feb 2018
Asset quality dipped in November for collateralized loan obligations issued in Europe after the credit crisis, nearly erasing gains made in October.The median weighted average rating factor, a key indicator of borrower health, worsened by 18 points to 2705 among those deals, according to an index maintained by Moody’s. That’s the equivalent of a “B1” rating. The figure had improved by 16 points the prior month. Analyst...



The Grapevine

Fri, 09 Feb 2018
William Jennings is leaving his job as president of Hunt Financial Securities. The abrupt exit comes three months after Jennings ascended to his most recent post — and less than a year after he arrived at the Rye Brook, N.Y., brokerage firm with the mission of overseeing a large-scale staff buildup. Jennings was pushed out of prior employer Jefferies in February 2014 as a result of the U.S. Justice Department’s crackdown on improper...



The Grapevine

Fri, 09 Feb 2018
Pessimism surrounding Harley-Davidson’s prospects as an asset-backed bond issuer is growing. Having already written off the possibility of a near-term offering, industry participants now expect the Milwaukee motorcycle maker to remain out of the market indefinitely. The reason: Harley said on Feb. 2 that its U.S. sales dropped 11% during the fourth quarter, continuing a long decline that has left it short on potential bond collateral....



The Grapevine

Fri, 09 Feb 2018
MetLife has added an associate to its asset-backed bond investment team in New York. Andrew Butville most recently was a lead analyst on a Moody’s team that rates securitizations of unusual cashflows. He started there in 2013, following stops at Banco Santander and Milbank Tweed.



The Grapevine

Fri, 09 Feb 2018
Joshua Tatum has left his post as head of business development for Social Finance’s mortgage-lending arm to become a general manager in the home-loan development group at Guaranteed Rate of San Francisco. Tatum, a longtime mortgage-industry professional, had been at SoFi since 2016. His arrival at Guaranteed Rate came as the firm also hired former S&P executive Diane...



The Grapevine

Fri, 09 Feb 2018
Director Emile Ernandez was caught in a round of layoffs at Barclays in late January. Ernandez originated and structured deals backed by unusual cashflows in the bank’s New York office, which he joined in 2011 from Deutsche Bank.



The Grapevine

Fri, 09 Feb 2018
Peter Heintz started this week as head of business development at consulting firm Opus Capital. Heintz most recently helped oversee home-loan acquisitions at mortgage-bond issuer Shelter Growth Capital, where he started in 2013. He also has worked at Clear Capital, NewOak Capital, UBS, Winter Group and Clayton Holdings. Opus, of Lincolnshire, Ill., performs due-diligence services for mortgage...



The Grapevine

Fri, 09 Feb 2018
The timeline for a retrial of former Nomura traders Michael Gramins and Ross Shapiro on securities fraud charges continues to shift. With the proceedings already delayed from Jan. 29 to May 8, defense attorneys said in a Feb. 1 letter to U.S. District Court Judge Robert Chatigny in Hartford that Justice Department officials had agreed to a postponement to July 16. That’s because the matter otherwise could overlap with a similar trial...



The Grapevine

Fri, 09 Feb 2018
Sales specialist Shane Beeson has moved from Morningstar to Money Source, where he works in Plano, Texas, as a vice president focused on business-development duties for the company’s sub-servicing arm. Beeson pitched operational risk-assessment services at Morningstar, where he started in 2013.



The Grapevine

Fri, 09 Feb 2018
Annaly Capital is seeking a New York-based transaction manager to coordinate whole-loan purchases and sales with various vendors. The recruit also would help arrange due-diligence reviews, servicing transfers and funding facilities. Annaly is focusing on candidates with at least five years of experience. Applicants can email resumes to Grace Baker at...



Credit Suisse MBS Program Back on Track

Fri, 02 Feb 2018
Credit Suisse wants to resume issuing bonds backed by newly originated mortgages.The effort is in the planning stages, with the bank eyeing deals that would fund purchases of both jumbo loans that meet the Consumer Financial Protection Bureau’s “qualified-mortgage” guidelines and credits that fall outside those standards. An offering could come during the second half of this year.In the meantime, Credit Suisse is talking to...



Fannie Explores Manufactured-Home Deals

Fri, 02 Feb 2018
Fannie Mae is exploring the possibility of selling risk-transfer bonds referencing manufactured-home loans.The discussions coincide with a push to offer financing in that market, with an official origination program slated to launch late this year. While any bond-issuing plans remain in the preliminary phases, indications are that the agency is envisioning a capital-markets initiative of some type that could produce a deal in late 2019 or early...



CLO Issuers Hopeful on Looming Court Ruling

Fri, 02 Feb 2018
The collateralized loan obligation market is abuzz with speculation that a pending court decision would render such transactions exempt from the Dodd-Frank Act’s risk-retention rule.At issue is a lawsuit the Loan Syndications and Trading Association filed in U.S. Appeals Court in Washington in 2014, arguing that the Federal Reserve and SEC were mistaken in applying the skin-in-the-game requirement to CLOs. The talk among industry...



Hospital Speeding Up Purchases

Fri, 02 Feb 2018
Hospital operator BJC Healthcare is becoming a heavier buyer of asset-backed bonds.Indications are that BJC plans to pick up $100 million of such securities this year. While the St. Louis operation’s 2017 purchases couldn’t be learned, they likely were similar to 2016 levels — when its portfolio grew by $58.5 million to $465.3 million.Many of the added investments would resemble BJC’s existing positions, which are heavy on...



Mortgage Bill Buoys Industry Pros

Fri, 02 Feb 2018
A updated Senate proposal to revamp the U.S. home-loan market would boost the potential for private-label mortgage securitizations.On Jan. 31, the Senate Banking Committee circulated the latest version of the bill among lobbyists and trade groups including the Structured Finance Industry Group. While the plan is subject to further revision, sources said Republican leaders in the Senate appear settled on a number of key points, including greatly...



No Sign of VW in US Market

Fri, 02 Feb 2018
Investors are losing hope that Volkswagen will return to the U.S. asset-backed bond market anytime soon.The automaker last completed a deal in the States in February 2015, when it sold $1.4 billion lease-backed securities via bookrunners Barclays and RBS. The company’s issuing efforts then stalled amid charges from the U.S. Environmental Protection Agency that it installed emissions-rigging software in its diesel models.Although bondholders...



Sound Point Payroll Keeps Growing

Fri, 02 Feb 2018
Sound Point Capital hired three senior analysts in late January.The additions of Nadav Besner, Sameer Pandhi and Kathy Song came as part of a recruiting effort that has seen Sound Point’s headcount rise to 62, from 49 a year ago. At the same time, the New York debt investor’s assets have grown to $15.4 billion from $11.4 billion.Besner focuses on event-driven investments as a member of Sound Point’s hedge fund team, which runs...



Healthy Supply Seen in Europe

Fri, 02 Feb 2018
The supply of new structured-product transactions is running strong in Europe.In the market this week was debut issuer Al Rayan Bank, which engaged Standard Chartered to place £250 million ($355 million) of bonds backed by U.K. mortgages written to comply with Islamic law. SMBC Nikko was also shopping 1.5 billion Turkish Lira ($400 million) of bonds backed by auto loans from Volkswagen.Nationwide Building Society additionally was marketing a...



Volume Reaches 11-Year High

Fri, 02 Feb 2018
The volume of U.S. asset-backed bonds issued in January represented a post-credit-crisis record for the month.At $26.6 billion, the tally marked a 21% jump from the previous post-crash high for January: $21.9 billion, set in 2015, according to Asset-Backed Alert’s ABS Database. January 2016 saw $19.2 billion of deals.The last time January issuance was higher was in 2007, when the month saw $49.6 billion of deals. The market collapsed just a...



Fitch: Charge-Offs Up But "Steady'

Fri, 02 Feb 2018
The performance of securitized U.S. bankcard accounts deteriorated in the fourth quarter.According to an index maintained by Fitch, charge-offs rose to an average 2.93% during the period, from 2.8% in the July-September stretch. Still, the reading remains below a recent peak of 3.12% in June 2017. Delinquencies among pools of bankcard accounts also increased 8 bp to 1.08%. “Credit card charge-offs will continue to rise off of unsustainable...



SuMi Chasing CLO Trust Work

Fri, 02 Feb 2018
Sumitomo Mitsui Trust is planning to market its services as a collateralized loan obligation trustee in the U.S.The initiative would mark a step past the exploratory phase of a project that began in early 2016, when SuMi Trust saw an opportunity to parlay its presence as a CLO investor into trust business on those deals. In 2017, the institution landed its first two assignments in the sector — both from Marble Point Capital.Those mandates...



Semper Adds to Investment Pool

Fri, 02 Feb 2018
Semper Capital’s buying power is growing.The New York fund operator finished 2017 with $1.8 billion of gross assets, up from $1.3 billion a year earlier. It is seeking to raise an undisclosed amount of capital on top of that.Semper’s pitch relies in large part on strong returns it has produced via investments in asset-backed securities, mortgage bonds, and collateralized loan obligations. A $150 million hedge fund called Semper Midas...



Agencies Set Conference Agendas

Fri, 02 Feb 2018
Fannie Mae and Freddie Mac are finalizing their scripts for the upcoming “SFIG Vegas 2018” conference.Both agencies say their investor meeting schedules for the event are nearly full, with buysiders especially eager to discuss risk-transfer bonds. The gathering, sponsored by the Structured Finance Industry Group and Information Management Network, takes place Feb. 25-28 at the Aria Resort & Casino in Las Vegas.Among the topics Fannie...



The Grapevine

Fri, 02 Feb 2018
Kristen Erickson resigned from her job as J.P. Morgan’s head collateralized loan obligation trader this week. Word on the street is that Erickson is headed to TPG Capital, presumably as a member of a CLO-issuing team that has completed nine deals totaling $4.2 billion since 2014. She had worked in J.P. Morgan’s New York office since 2008, arriving via the bank’s credit-crisis takeover of Bear Stearns. Shivraj Bhushan in New York...



The Grapevine

Fri, 02 Feb 2018
Joe D’Urso is in the early stages of starting a technology firm whose products would help a range of players in the mortgage market in their origination and securitization efforts. D’Urso most recently helped oversee securitizations of rental-home cashflows as a managing director at Pretium Partners, where he served a one-year stint that ended in September. He also has worked at Clayton Holdings by way of that firm’s purchase of...



The Grapevine

Fri, 02 Feb 2018
Mortgage-bond trader Steve Hampton has joined Zeus Trading of Charlotte as a senior vice president. Hampton had been employed at Nathan Hale Capital since 2013, and before that was at Duncan Williams.



The Grapevine

Fri, 02 Feb 2018
Mark Hanslin started last week as a portfolio manager at Partners Group, a role in which he oversees leveraged-loan investments and a yet-to-be-launched collateralized loan obligation issuing program in the U.S. Hanslin is stationed in the New York office of Partners, a private equity firm in Zug, Switzerland, that already issues CLOs in Europe. He had been working as a consultant since 2014, and before that spent time at Nebula Capital and...



The Grapevine

Fri, 02 Feb 2018
Hunt Financial has hired a leveraged-loan specialist with a background in securitization. Glenn Medwar arrived at the Rye, N.Y., broker-dealer on Jan. 30. Medwar most recently headed Mizuho’s leveraged-finance activities in the U.S. from September 2014 to March 2017. His former employers also include CRT Capital, FBR Capital, Moore Capital, Credit Suisse, RBC and Lehman...



The Grapevine

Fri, 02 Feb 2018
A technology firm that aims to help bond, loan and warehouse investors put their money to work began approaching potential clients in January. The New York operation, Finitive, was founded last year by Jonathan Barlow and Chris Johnson. Barlow’s previous initiatives included the 2011 founding of Eaglewood Capital, which became the first issuer of marketplace-loan bonds. Johnson worked at Prospect Capital since 2012, overseeing a loan...



The Grapevine

Fri, 02 Feb 2018
Citizens Bank is seeking a vice president to handle a range of securitization-related activities in its Charlotte or Stamford, Conn., office. The recruit would hold the title of portfolio manager, with an emphasis on deals involving non-mortgage assets. Citizens is focusing on individuals with at least five years of experience. Candidates can apply at jobs.citizensbank.com by entering job number...



The Grapevine

Fri, 02 Feb 2018
Cross River Bank, which acts as an originator of record, warehouse lender and buyer of marketplace loans, has hired an attorney with securitization experience. Jim Lee arrived at the Fort Lee, N.J. operation from Square, where he worked since 2016. He also has worked at Morgan Stanley, J.P. Morgan and Sidley Austin.



Clayton Team Bolts Amid Radian Shakeup

Fri, 26 Jan 2018
Five senior members of Clayton Holdings’ sales team have quit amid a restructuring of the due-diligence firm by parent Radian.The “strategic account managers,” who were responsible for winning new business for Clayton and retaining existing clients, resigned after Radian asked them to apply for positions on a new companywide sales force. Only one member of the team, Andy Pollock, opted to stay on board in a different capacity....



Carrington Poised to Join Non-QM Pipeline

Fri, 26 Jan 2018
Carrington Mortgage is favoring securitization to fund a new program under which it is writing home loans that fall outside the Consumer Financial Protection Bureau’s “qualified-mortgage” guidelines.While the timing of an initial bond offering will depend on origination volume, sources expect the effort to take shape quickly — with a deal coming during the second half of this year. The transaction likely would total a...



RBS Eyes Fresh Start in US Securitization

Fri, 26 Jan 2018
RBS is giving serious thought to reviving its U.S. structured-product trading and underwriting businesses.Having settled charges that its U.S. trading desk systematically misled clients about bond prices, the Edinburgh-based bank sees an opportunity to reclaim its former status as a market maker and bookrunner for asset-backed securities, mortgage bonds and collateralized loan obligations. In recent weeks, sources said, executives there have...



Regs Bring Prospect of China Deals

Fri, 26 Jan 2018
Structured-finance professionals in China are measuring the extent to which a recent series of regulatory adjustments could boost deal volume in the nation.At issue are efforts by the China Banking Regulatory Commission, China Securities Regulatory Commission and the China Insurance Regulatory Commission to reduce financial-market risk by cutting down on the use of loosely governed funding tools in favor of those with closer supervision.The...



Fund Shop Bullish on Fannie, Freddie

Fri, 26 Jan 2018
Muirfield Capital is reaching out to investors about a planned hedge fund that would place a concentrated long bet on Fannie Mae and Freddie Mac.The New York firm is telling prospective backers that the fund would buy preferred shares of Fannie and Freddie “in anticipation of their privatization . . . and the resolution of shareholder litigation.” It has tapped placement agent Protocol Capital to market the offering.Although they have...



Cash-Out Refis Rise in Agency Pools

Fri, 26 Jan 2018
Fannie Mae and Freddie Mac increasingly bundled “cash-out refinancings” into the reference pools for their risk-transfer bonds last year.The trend, isolated to deals in which the underlying mortgages have loan-to-value ratios of 80% or lower, dates back to the market’s genesis in 2013. At that point, cash-out refinancings made up 16% of Fannie’s low-LTV assets and 17.3% of comparable receivables for Freddie’s...



Santander Preps Chrysler Lease Deal

Fri, 26 Jan 2018
Santander Consumer USA is readying its next securitization of leases originated by its Chrysler Capital arm.Sources said the Rule-144A transaction will hit the market around March 1, weighing in at $1 billion. It will likely carry ratings from Moody’s and S&P.The deal’s bookrunners will include some combination of Citigroup, J.P. Morgan, RBC and Societe Generale, which joined forces on Santander’s only previous securitization of...



Lenders Root for Education Bill

Fri, 26 Jan 2018
With the House of Representatives about to consider changes to federal student-loan programs, private lenders are sizing up growth opportunities that could result.At issue are expectations that the House will begin debating the Promoting Real Opportunity, Success, and Prosperity through Higher Education Reform Act (Prosper Act) in the coming days. That proposal, introduced on Dec. 1 by Rep. Virginia Foxx (R-N.C.), would reauthorize the Higher...



Orange Lake Preps Timeshare Deal

Fri, 26 Jan 2018
Orange Lake Resorts is returning to the asset-backed bond market.The $175 million deal, backed by timeshare loans, is expected to hit the market in the coming weeks with Bank of America leading the underwriting syndicate.Orange Lake operates its resorts under the Holiday Inn brand. The offering would be the Kissimmee, Fla., company’s first since October 2016, when it placed $176.2 million of bonds with BofA as structuring agent and S&P,...



CLOs Adopt "Permanent' Label

Fri, 26 Jan 2018
With collateralized loan obligation issuers still rushing to refinance their existing deals, industry participants increasingly are viewing the transactions as open-end offerings.The notion is that a manager could extend the life of a CLO indefinitely by periodically paying off its existing securities with the proceeds from new ones, in the process resetting the clock on its reinvestment period. That differs from the traditional view of the...



SoFi Floats Personal-Loan Paper

Fri, 26 Jan 2018
Social Finance is preparing a personal-loan securitization.The $650 million offering is expected to hit the market next week with Deutsche Bank leading the underwriting syndicate.SoFi completed six personal-loan securitizations totaling $3.2 billion in 2017, most recently placing $727.4 million of bonds on Nov. 7 with J.P. Morgan as structuring agent. All told, the San Francisco lender’s various asset-backed bond programs produced 12...



Hunton Recruiting for Europe Push

Fri, 26 Jan 2018
Hunton & Williams is seeking additional staff for its new structured-finance practice in London.The openings include positions for several associates. Hunton also could bring in more partners to work alongside Angus Duncan, who arrived on Jan. 3 as head of the unit.Duncan most recently worked at Winston & Strawn from March to September. He previously spent time at Cadwalader Wickersham and Allen & Overy, where his clients included issuers and...



The Grapevine

Fri, 26 Jan 2018
Barclays dismissed Chris Haid from his post as head of asset-backed bond trading on Jan. 23, apparently as part of broader staff cuts. The New York-based Haid also oversaw trading of commercial mortgage bonds. He was employed at Barclays since 2004, and before that was a portfolio manager at Merrill Lynch Investment Managers.



The Grapevine

Fri, 26 Jan 2018
Former American Capital executive Mark Pelletier has landed in Sun Life Financial’s Boston office as head of leveraged-loan investments — a move that sources see as positioning the Toronto insurer to become an issuer of collateralized loan obligations. Pelletier most recently led a CLO-issuing group at American Capital, having started there in 2005 and left when the firm sold that business to Marble Point Credit a year ago. He...



The Grapevine

Fri, 26 Jan 2018
William Horwath has left his Herndon, Va., post as treasurer of VW Credit, a role in which he presided over the Volkswagen unit’s U.S. securitization programs. Horwath’s plans are unknown. He had been in his most recent post since 2013, after arriving at Volkswagen in 2002 from DTE Energy. Volkswagen has issued $36.2 billion of bonds backed by its auto loans, auto leases and dealer-floorplan receivables in the States since...



The Grapevine

Fri, 26 Jan 2018
Veteran mortgage-bond specialist Manny Malbari will part ways with Angelo, Gordon & Co. in the next month or two. Malbari, a managing director, has worked at the New York investment firm since 2008 — serving both as a trader and chief operating officer for an asset- and mortgage-backed bond investment unit with $9 billion under management. He also has spent time at ZS Capital, Eurohypo, D.B. Zwirn & Co., Fannie Mae and Hanwa...



The Grapevine

Fri, 26 Jan 2018
Morgan Stanley is zeroing in on finalists to fill a long-vacant post for a vice president on its asset-backed bond syndicate desk in New York. While the position has been unoccupied since Lauren Hoard moved to Guggenheim in 2015, the bank didn’t start interviewing potential replacements until a few months ago. Now, it appears to be nearing a decision. The move dovetails with a push by Morgan Stanley to land more securitization-underwriting...



The Grapevine

Fri, 26 Jan 2018
New York broker-dealer KGS-Alpha Capital has added a member to its structured-product sales team. William Sylvia, who started last week, most recently traded agency mortgage bonds at Barclays from 2004 to 2016. He also has worked at Citigroup, Prudential, Vining Sparks and GX Clarke & Co.



The Grapevine

Fri, 26 Jan 2018
Oakleaf Group of Chevy Chase, Md., has hired Brad Davis to fill a newly created role as a managing director handling business-development duties for its cashflow-modeling, risk-analytics, mortgage-review and litigation-support services. Davis most recently was employed in a similar capacity at RiskSpan, which he joined in 2013 after a long stint at Wells Fargo in which he held a series of securitization-related...



The Grapevine

Fri, 26 Jan 2018
Credit-product investor Palmer Square Capital is seeking a senior credit analyst. The Mission Woods, Kan., firm is focusing on candidates with at least five years of experience. Palmer Square runs $4.6 billion through funds, separate accounts and collateralized loan obligations.Candidates can email resumes to investorrelations@palmersquarecap.com.



The Grapevine

Fri, 26 Jan 2018
Morningstar is seeking a business-development specialist. The recruit would work as a director, interacting with issuers and underwriters of asset-backed bonds and collateralized loan obligations under senior director Brian Vonderhorst. Morningstar is focusing on candidates with at least five years of experience. Applicants can email resumes to Vonderhorst at...



The Grapevine

Fri, 26 Jan 2018
Loan-data company DV01 has hired Barbara Bridges to head its legal department. Bridges started at the New York company on Jan. 22. She had been employed at DemystData since 2016.



MLB Endowment On Deck as ABS Investor

Fri, 19 Jan 2018
Major League Baseball’s endowment is building a book of structured-product investments.The operation, known as MLB Endowment Fund, initially is zeroing in on triple-A-rated bonds backed by prime-quality auto loans, credit-card accounts and possibly marketplace-originated personal loans. Indications are that it could be holding $100 million of those instruments by yearend.Future plays also could include mortgage bonds and collateralized loan...



Freddie Adds Twist to Risk-Transfer Plans

Fri, 19 Jan 2018
(SEE CORRECTION BELOW) Freddie Mac is interested in conducting its offerings of risk-transfer bonds through the Common Securitization Platform.The surprising plan, still in internal discussions, would bring all issuing and administrative functions for future deals under the program’s umbrella. Talks last week focused on potential roadblocks, including the idea that such a move would place Freddie in the role of trustee, paying agent and...



Traders Breathing Easier as Charges Fade

Fri, 19 Jan 2018
The U.S. government’s crackdown on improper structured-product trading practices appears to be in its final stages.The initiative, focusing on instances in which dealers overcharged secondary-market clients for their structured-product investments, has seen its active court cases shrink to just three — from more than a dozen at its peak.One of the remaining proceedings stems from a partial mistrial involving former Nomura home-loan...



Santander Backs Loan Program

Fri, 19 Jan 2018
Santander Consumer USA plans to begin funneling prime-quality auto loans to its U.S. retail-banking affiliate, Santander Bank.The program is expected to produce more than $2 billion of credits annually, with Santander Consumer USA originating the accounts with funding from Boston-based Santander Bank. The timing of the initiative is still to be determined, but sources said it likely will be up and running in the second half.The program would...



Subordinate Spreads Racing In

Fri, 19 Jan 2018
Asset-backed bond investors are moving down the capital ladder.Amid a brief lull in the flow of new deals late last week and early this week, buyers shifted to the secondary market in search of subordinate paper offering relatively generous yields. Traders described heavy buying, with securities rated single-A down to double-B changing hands at spreads 3-5 bp tighter than they were at yearend.“There is a ton of new money being put to work...



Finacity Downplays Legal Claim

Fri, 19 Jan 2018
Finacity has told a federal judge that Lord Capital can lay no particular claim to the techniques it uses to gain off-balance-sheet treatment for clients’ assets.The statement marks the latest salvo in a legal battle over a partnership in which the two firms were to arrange securitizations of trade receivables for clients. The dispute began in September, when Lord sued Finacity for allegedly abandoning the agreement and instead lining up...



Kingsland Sale Revives CLO Program

Fri, 19 Jan 2018
On the heels of its purchase by Hayfin Capital, Kingsland Capital is planning its return as a collateralized loan obligation issuer.The New York firm hasn’t completed a CLO since June 2014. The expectation is that its comeback will begin in the coming weeks with a refinancing of that $481 million transaction.The original deal included a senior class of 5.5-year notes with triple-A ratings that priced at 150 bp over 3-month Libor. Recent...



Marketplace Lenders Push Ahead

Fri, 19 Jan 2018
Marketplace lenders expect to keep increasing their origination and securitization volumes this year, despite stronger competition from banks.Amid continued growth, questions have arisen about how non-bank originators might maintain momentum as institutions including Barclays and Goldman Sachs expand their online personal-lending businesses — and others including Fifth Street Bank, PNC and Regions Bank aim to launch programs of their...



Guggenheim Angles for Assignment

Fri, 19 Jan 2018
Guggenheim has arranged a line of credit for CommonBond, positioning itself to join a group of bookrunners that underwrites asset-backed bond offerings for the education lender.Sources said Guggenheim has been angling for some time to win business from CommonBond, which specializes in refinancing private student loans for high-income borrowers. Arranging the warehouse line almost guarantees Guggenheim will be considered for a future bookrunner...



Ratings Likely for Blockchain Deals

Fri, 19 Jan 2018
Yesterday’s unveiling of a trial mortgage-securitization program that uses blockchain technology has suddenly raised the prospects that such deals could be rated.The initiative, which New York technology company R3 is pursuing in conjunction with Credit Suisse, U.S. Bancorp, Wells Fargo and Western Asset Management, initially would involve small, privately placed bond deals without ratings. Once fully up and running, the expectation is that...



Clean-Energy Agency Preps Offering

Fri, 19 Jan 2018
The New York State Energy Research and Development Authority is preparing its latest securitization of clean-energy loans.The taxable offering is expected to weigh in around $25 million and hit the market in the coming weeks. Ramirez & Co. is running the books on the deal, which will carry ratings from Kroll.The authority occasionally has tapped the asset-backed bond market since launching its clean-energy loan program in 2013. To date, it has...



Foursight Program Keeps Rolling

Fri, 19 Jan 2018
Subprime auto lender Foursight Capital is preparing its next securitization.The offering has an estimated size of $200 million. It is expected to hit the market in the coming weeks with J.P. Morgan running the books.Foursight has been on an annual issuance schedule, having completed four securitizations totaling $610.9 million since 2014. Most recently, it sold $172 million of bonds in April with J.P. Morgan as bookrunner, according to...



400 Capital Vehicle Gaining Steam

Fri, 19 Jan 2018
Hedge fund operator 400 Capital is boosting the buying power of one of its vehicles.The 400 Capital Asset Based Term Fund is scheduled to close on more than $40 million of fresh equity this month, on top of the $150 million it lined up from Cambridge Associates in an initial capital-raising round in August.The plan is to raise at least $250 million for the fund, with a limit of $300 million, according to sister publication Hedge Fund Alert.The...



The Grapevine

Fri, 19 Jan 2018
Diane Westerback has a new job. The longtime industry professional started this month as a New York-based vice president in the lending division at mortgage company Guaranteed Rate. Westerback has been running her own analytics firm, W Associates, since 2012 with a partial focus on regulatory effects on home-loan originations and securitizations. She helped lead mortgage-product analytics and surveillance at S&P before that, and spent time at...



The Grapevine

Fri, 19 Jan 2018
Wells Fargo is within days of naming a new head for its mortgage-finance division. The New York post, which encompasses oversight of the bank’s mortgage-bond bookrunning business, has been vacant since Dashiell Robinson left in August to join Redwood Trust. He had arrived at Wells via the bank’s 2008 takeover of Wachovia. Word has it that the bank is leaning toward an existing employee as his...



The Grapevine

Fri, 19 Jan 2018
Attorney Nicole Pineda arrived in Harneys’ Cayman Islands office last week as a partner, signaling an intention by the firm to work with issuers of collateralized loan obligations. Pineda most recently worked on Latin American structured-finance deals at Travers Thorp, which she joined in 2012 from Walkers. She also has spent time at Allen & Overy and Clifford Chance, both of which have active CLO practices. Most U.S. CLOs are domiciled in...



The Grapevine

Fri, 19 Jan 2018
Sound Point Capital added a director to its collateralized loan obligation issuing team in December. The recruit, Matt Seifert, had been employed in a similar capacity at American Capital since 2014, according to sister publication Hedge Fund Alert. Sound Point is led by Stephen Ketchum. Its CLO program has produced 17 deals totaling $10.2 billion since launching in...



The Grapevine

Fri, 19 Jan 2018
Morningstar has several openings on its structured-product rating team in New York. One of the slots is for a vice president who would analyze asset-backed bonds underpinned by non-traditional cashflows. That position requires five years of experience. Morningstar also is looking for an assistant vice president who would serve as a generalist on its asset-backed bond team, with a focus on candidates with at least two years of experience. The...



The Grapevine

Fri, 19 Jan 2018
Sidley Austin has added an associate to its New York office. The recruit, recent law-school graduate Nathaniel Kiechel, is working on a range of asset- and mortgage-backed bond deals. Sidley’s securitization practice is led by R.J. Carlson and Edward Fine.



The Grapevine

Fri, 19 Jan 2018
Kevin Gildea joined New York law firm DarrowEverett this month as a partner focusing on regulatory matters facing mortgage- and consumer-finance businesses, including those related to securitization. Gildea had been running his own practice since June 2017, and before that was at mortgage-bond issuer FirstKey Mortgage. His former employers also include Franklin Credit and the New York State Department of...



The Grapevine

Fri, 19 Jan 2018
Sales-and-trading specialist Wayne Liu joined the Los Angeles office of wholesale mortgage company Royal Pacific Funding in December as a senior vice president. Liu most recently was helping to oversee the capital-markets division at Prospect Mortgage, which shut down in April. He also has worked at Skyline Home Loans, Bank of America, Countrywide, LoanCity, Bloomberg, Tuttle & Co. and First Franklin...



PennyMac Reviving Market for Heloc Bonds

Fri, 12 Jan 2018
PennyMac is planning to write and securitize home equity lines of credit.The effort could bring a routine flow of bond deals, with a REIT affiliate called PennyMac Mortgage Investment filling the role of issuer. Those offerings, in turn, would be the first to be broadly offered in the asset class since 2007.PennyMac’s exact timing remains a moving target. The Calabasas, Calif., company began developing the initiative more than a year ago,...



Intense Demand Fuels ABS Issuance Surge

Fri, 12 Jan 2018
Get ready for a torrent of new asset-backed bond offerings.Led by automakers and credit-card lenders, issuers are lining up to sell nearly $20 billion of asset-backed securities via 25-30 transactions over the next two weeks. The deals would snap a dry spell that began in mid-December and continued into January, with only two offerings totaling $1.4 billion having priced this month.Issuers are responding to what bankers describe as ferocious...



Startup Aims to Securitize Crypto Loans

Fri, 12 Jan 2018
A Denver firm that recently began originating loans secured by cryptocurrencies is sketching out plans to securitize the credits.SALT Lending uses a couple channels to fund investors wishing to borrow against their holdings of digital currencies. On Dec. 27, the firm launched its Crypto Credit Opportunity Fund, which booked $7 million of loans in its first nine days and expects to originate about $50 million more in the next few weeks.Based on...



Redwood to Sell Rental-Home Bonds

Fri, 12 Jan 2018
Redwood Trust is planning to sell bonds backed by loans on rental homes.The offerings would tie in with a push by the Mill Valley, Calif., REIT to begin offering financing to landlords in the coming months. An initial bond deal could come late this year or in early 2019.Redwood informed investors of its lending initiative at yearend, pointing to a trend in which people have favored renting their homes over owning them. The undertaking, the...



Subprime Auto Lender Joins Pipeline

Fri, 12 Jan 2018
Subprime auto lender Avid Acceptance is preparing its first securitization.The offering is expected to hit the market in the coming weeks with a projected size of $100 million. KeyBank will run the books, with S&P and Kroll likely weighing in with ratings.Avid specializes in financing new and used vehicle purchases by individuals who are emerging from bankruptcy, originating its loans through dealers and bankruptcy attorneys. The Midvale, Utah,...



MountainView Plans Broader Coverage

Fri, 12 Jan 2018
Mortgage-analytics shop MountainView Financial plans to begin covering other asset types following its acquisition by Situs.MountainView, a Denver firm that helps mortgage investors including securitization programs assign values to their holdings, will expand the scope of its advisory work to include auto loans, unsecured personal loans, corporate loans and possibly other debt instruments.“We’re looking at those and other growth...



CLO Issuers Get Early-Year Jump

Fri, 12 Jan 2018
Collateralized loan obligation issuers are flooding into the market.Departing from a practice in which they typically have stepped back in the first half of January, managers in the U.S. got to work on a flurry of deals last week. They were joined this week by a number of firms in Europe.The activity, encompassing both new deals and those meant to refinance existing transactions, reflects a desire to exploit strong investor demand. “The...



As Trading Continue to Slumber

Fri, 12 Jan 2018
Secondary-market trading of collateralized loan obligation securities remains in the doldrums, with few signs of picking up.According to Empirasign, a mere $332.9 million of outstanding CLO paper went out for bid from Jan. 1 to Jan. 10. And even with bondholders offering another $94 million of securities on Jan. 11, industry participants characterized the supply as disappointing.The bid-list shortage can be attributed in part to a lack of...



Subprime-Auto Gauge Belies Fears

Fri, 12 Jan 2018
The performance of securitized subprime auto loans appears to be holding up better than expected.According to an index maintained by Fitch, annualized losses among those accounts fell 34 bp to 9% during the month ended Dec. 15. The delinquency rate — reflecting payments at least 60 days past due — rose 22 bp to 5.12%. But both measures remain well below their year-ago levels, despite concerns that losses would finish the year in...



US Bank Tops Shifting Trustee Field

Fri, 12 Jan 2018
U.S. Bank built on its status as the most active trustee for U.S. asset- and mortgage-backed bond deals last year, while several other key players switched positions in the league table.U.S. Bank claimed a 28.2% market share in 2017 by working on 124 deals totaling $84.1 billion, up from 108 transactions for $59.4 billion in 2016, according to Asset-Backed Alert’s ABS Database. That represented a 42% expansion, far outpacing the...



S&P Continues Winning Streak

Fri, 12 Jan 2018
S&P rated more U.S. asset- and mortgage-backed bonds than any of its rivals in 2017, capturing the league-table crown for a fifth straight year.The agency’s tally of 247 transactions totaling $164.4 billion represented a 55% share of overall issuance volume. That amounted to a 30% jump from its 2016 count of $126.7 billion in 206 transactions — exactly tracking the broader market’s expansion, according to Asset-Backed...



Market Growth Aids Top Law Firms

Fri, 12 Jan 2018
The securitization industry’s busiest law firms took advantage of last year’s issuance spurt, adding to their workloads in most areas.Mayer Brown was the most active issuer counsel for asset- and mortgage-backed bond deals in the U.S. for the second year in a row, winning assignments on 72 deals totaling $49.7 billion. That marked a healthy increase from its 2016 count of 58 offerings for $43 billion, according to Asset-Backed...



Loan Upgrades Boost Europe CLOs

Fri, 12 Jan 2018
Asset quality improved in October among collateralized loan obligations issued in Europe, and to a lesser extent for U.S. deals.For European transactions completed after the credit crisis, the weighted average rating factor improved 20 points to 2683, according to Moody’s. That score, an expression of borrower health, is the equivalent of a “B1” grade. The improvement reflected upgrades to chemical companies Chemours, Ineos and...



The Grapevine

Fri, 12 Jan 2018
Chapman & Cutler has hired away the top lawyer from Credit Suisse’s collateralized loan obligation origination business. Sam Yoo joined Chapman’s New York office last week as a partner. He had been employed at Credit Suisse since 2006, and before that spent time at Skadden Arps. At Chapman, he is working on a mix of structured-product transactions. Chapman has been on a hiring spree since July, when it scooped up most of...



The Grapevine

Fri, 12 Jan 2018
Peter Heintz no longer works at Shelter Growth Capital, which issues bonds backed by home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards. Heintz, who joined the Stamford, Conn., firm in 2013, had been co-heading mortgage acquisitions. He was in charge of mortgage due-diligence reviews for Credit Suisse’s securitization unit before that, having earlier spent time at...



The Grapevine

Fri, 12 Jan 2018
Barclays has hired a collateralized loan obligation trader. Stefan Kullberg is expected to join the bank’s New York office in the coming weeks, reporting to head trader Sam Oher. Kullberg was working in a similar capacity at RBC since 2013, and before that was at Citigroup.



The Grapevine

Fri, 12 Jan 2018
Count RiverNorth Capital portfolio manager Philip Bartow among those who expect the volume of marketplace-originated personal loans to rise this year, with securitization activity growing as well. Bartow shared his views via an online seminar hosted by servicer First Associates on Jan 10, adding that he anticipates more loan-buying competition from banks. Bartow purchases marketplace loans for Chicago-based RiverNorth, which plans to contribute...



The Grapevine

Fri, 12 Jan 2018
Former Deephaven Mortgage managing director Brett Hively landed a new job this week, signing on as a senior vice president helping to oversee the development of correspondent-loan buying programs at Ameris Bank of Moultrie, Ga. Hively headed a similar operation at Deephaven, where he worked from 2013 until October 2017. He also has spent time at Goldman Sachs. Deephaven, founded by former Goldman Sachs executive Matt Nichols, accumulates and...



The Grapevine

Fri, 12 Jan 2018
Tom Gere has joined White Plains, N.Y., brokerage firm Garnet Capital as a managing director responsible for buying personal loans and passing them on to institutional investors, including those that fund their purchases through securitization. Gere most recently was a managing director in the consumer-finance group at PricewaterhouseCoopers, where he worked since 2015. Before that, he ran an advisory firm called MEG Capital and spent time at...



The Grapevine

Fri, 12 Jan 2018
Deutsche Bank has added an associate to its structured-finance banking team in London. The recruit, Rami Hirmiz, had been working as an analyst at Moody’s since 2015. Before that, he was at Natixis.



The Grapevine

Fri, 12 Jan 2018
With legislators placing more scrutiny on Property Assessed Clean Energy lenders, Ygrene Energy has hired a senior director for government affairs. Chris Peterson joined the Petaluma, Calif., company this week from Renew Financial, where he worked in a similar capacity since August. Before that, he was at Renovate America. His appointment at Ygrene comes partly in response to the 2017 passage of a California law requiring that PACE lenders alert...



Growth Spurt Unlikely to Continue in '18

Fri, 05 Jan 2018
The securitization industry’s rate of growth is expected to slow in 2018.A panel of 11 industry participants surveyed by Asset-Backed Alert predicts, on average, that $811 billion of fresh asset-backed securities, residential mortgage bonds, commercial mortgage securities and collateralized loan and debt obligations will price worldwide this year. That would mark an increase of just 3.8% from the 2017 tally of $781.5 billion.Last year saw a...



Morgan Lewis Vet Arnholz Stepping Aside

Fri, 05 Jan 2018
One of the world’s most-recognized securitization attorneys is leaving the business.John Arnholz, who heads Morgan Lewis’ structured-finance practice alongside Reed Auerbach, will step down from his post as a partner at the firm today. He plans to pursue undisclosed opportunities outside the legal profession.Arnholz also will serve as a consultant to Morgan Lewis on as as-needed basis, while retaining the title of counsel.The...



Insurers Resist NAIC-Induced Bond Sales

Fri, 05 Jan 2018
Defying some industry participants’ forecasts, insurers largely sat on their portfolios of pre-credit-crisis mortgage bonds at yearend.At issue is a push by the National Association of Insurance Commissioners to assign new loss projections to residential and commercial mortgage securities — and in the process increase the amounts of capital insurers must set aside against some of those holdings.The expectation was that those companies...



CLO Issuers Lament Premature Refis

Fri, 05 Jan 2018
Some collateralized loan obligation issuers that refinanced existing deals in early 2017 are experiencing sellers’ remorse.The problem: The actions would have been more profitable for those firms and their equity investors had they waited until later in the year, when spreads were tighter.In all, CLO issuers in the U.S. refinanced $164.3 billion of their transactions in 2017 by selling new bonds backed by the original transactions’...



Pa. Liquor-Bond Deal Still on Table

Fri, 05 Jan 2018
Pennsylvania may yet securitize revenues from sales of liquor and wine at state-owned stores.Facing a $2.3 billion budget gap, Gov. Tom Wolf proposed in October 2017 to sell $1.2 billion of bonds backed by the revenues of the Pennsylvania Liquor Control Board. That agency brought in $2.5 billion during the 2016-17 fiscal year.But in November, Wolf backed away from that plan in favor of securitizing a portion of the proceeds Pennsylvania receives...



MountainView Plans Sale to Situs

Fri, 05 Jan 2018
It looks like mortgage-valuation shop MountainView Financial will soon have a new owner.Sources said the Denver firm is in advanced talks to be purchased by Situs, a commercial real estate advisory firm based in Houston. A deal could be struck as early as next week.“Buying MountainView gives Situs a foothold in the residential space, where they had none,” one source said.MountainView helps investors determine the values of various...



Rival Firms Woo Cleary's Clients

Fri, 05 Jan 2018
Law firms that represent collateralized loan obligation underwriters are trying to pick off some assignments from Cleary Gottlieb.The efforts aim to take advantage of the recent absence of counsel Joyce McCarty, a prominent CLO specialist who co-heads Cleary’s securitization practice alongside partner Paul St. Lawrence. While denying rumors that she retired at yearend, McCarty acknowledged that she has been on medical leave since September...



Birdsey Receives S&P Imprimatur

Fri, 05 Jan 2018
S&P has given a big boost to due-diligence shop Birdsey Group’s effort to expand its footprint in the residential-mortgage market.Birdsey, best known for its commercial mortgage underwriting services, entered the residential-mortgage field via the 2015 formation of a unit called Birdsey Group Residential. This week, the Atlanta firm received word that S&P will begin using its data to rate and monitor residential mortgage securitizations,...



SoFi Dialing Up Issuance Pace

Fri, 05 Jan 2018
Social Finance expects to keep increasing its asset-backed bond output.While the San Francisco company hasn’t pegged an issuance goal for 2018, indications are that its production of securities backed by student loans and personal loans will continue to rise — but perhaps a but slower than last year. Those programs produced 12 offerings totaling $6.9 billion in 2017, up from $4.3 billion in 2016 and $1.6 billion in 2015.The 2017 total...



Leonard Tops Volume Forecasters

Fri, 05 Jan 2018
In a year that saw new-deal volume far exceed expectations, Credit Suisse executive Craig Leonard emerged as the securitization industry’s most accurate volume forecaster.A year ago, a panel of 12 industry participants surveyed by Asset-Backed Alert forecast, on average, that $627 billion of asset-backed bonds, collateralized loan obligations and residential and commercial mortgage securities would price in 2017. The actual total was $781.5...



Citi Captures Bookrunning Crown Amid Surging Issuance

Fri, 05 Jan 2018
Citigroup was the world’s most active underwriter of securitized products in 2017, supplanting longtime market leader J.P. Morgan.Citi ran the books on $88.7 billion of asset-backed bonds, residential mortgage securities, commercial mortgage paper and collateralized loan obligations last year for an 11.3% market share. The bank’s total amounted to a 52% increase from its 2016 count of $58.5 billion — outpacing an industry-wide...



The Grapevine

Fri, 05 Jan 2018
Sales-and-trading specialist Joe Hornback joined New York startup Nearwater Capital in late December. Hornback, a senior director, most recently served a one-year stint at Mizuho that ended in October. He also has worked at Auriga Global, Barclays, Goldman Sachs and Lehman Brothers. Nearwater helps collateralized loan obligation issuers finance retained positions in their...



The Grapevine

Fri, 05 Jan 2018
It turns out Diane Wold is leading Wells Fargo’s efforts to resume issuing mortgage-backed bonds. Industry participants have been speculating about Wold’s role ever since she arrived in Wells’ St. Paul, Minn., office in May as a senior vice president. The word from sources close to the bank: She has been overseeing an array of responsibilities related to its mortgage-bond initiative, including addressing regulatory matters....



The Grapevine

Fri, 05 Jan 2018
Morgan Lewis has added a partner to its securitization practice in Washington. John Rickenbacker starts Jan. 7 with a focus on mortgage-related transactions. Rickenbacker was employed since 2015 as a deputy general counsel in Redwood Trust’s Denver office, and before that worked at Loan Value Group, Homeward Residential, Hunton & Williams and Moore & Van Allen. His arrival comes as part of staff buildup at Morgan Lewis, whose securitization...



The Grapevine

Fri, 05 Jan 2018
Also on board in Morgan Lewis’ Washington office is Michael Sherman, who started on Dec. 22 as an associate covering asset-backed bonds. Sherman most recently worked at Chapman & Cutler, having arrived there in September 2016 after stops at Clark Hill, Tucker Arensberg, PNC Bank and Huntington National Bank. The move to Morgan Lewis reunites him with partners Cory Barry and Mark Riccardi, who arrived from Chapman in...



The Grapevine

Fri, 05 Jan 2018
Deutsche Bank has added a member to a London team that advises lenders on their securitization-issuing activities. Sarah Ishman Hope most recently worked in a warehouse-financing role in Victory Park Capital’s New York office from January 2016 to March 2017. Hope also has spent time at Morgan Stanley, Garrison Investment, 20 Gates Management and Ipreo. Her arrival at Deutsche coincided with a late-2017 push by the bank to bolster its...



The Grapevine

Fri, 05 Jan 2018
IHS Markit has added a director to its New York office. The recruit, John Lynch, focuses on assigning values to asset- and mortgage-backed securities. Lynch most recently worked in a similar capacity at BNY Mellon, which he joined in 2014. He worked as a consultant before that, and spent time at firms including RiskSpan, AllianceBernstein, BlackRock, Bloomberg, UBS, EJV, S&P and Laidlaw...



The Grapevine

Fri, 05 Jan 2018
Credit Suisse has an opening on its securitization-banking team in New York. The recruit would work mostly on the financing of student loans and marketplace-originated personal loans. Credit Suisse is focusing on candidates with at least three years of experience.



The Grapevine

Fri, 05 Jan 2018
Jefferies is looking for a junior analyst to support a group of collateralized loan and debt obligation structuring and trading specialists in New York. That unit, currently encompassing five members, is led by Jason Schechter.



No Letup Seen in CLO-Issuance Deluge

Fri, 15 Dec 2017
Collateralized loan obligation professionals are predicting that new-deal volume will remain strong in 2018.Whether the sector’s full-year supply will top the ample levels seen in 2017 remains an open question, however. On average, industry participants expect supply in the U.S. to land around $100 billion — with virtually nobody calling for less than $90 billion.Researchers at Bank of America, for example, are projecting a $100...



Syndicate Pro Completes TD's Leadership

Fri, 15 Dec 2017
TD Bank has recruited industry veteran David Stern to head its securitization-syndicate desk, a final step in the bank’s efforts to become a major underwriter in the U.S.Stern joined TD’s New York office on Dec. 1 from Credit Agricole, where he was in charge of asset-backed bond syndication since 2009. With his arrival, the institution has a chief for each segment of its securitization team — with Brad Dansker in charge of...



Wells Slashes Funding for Subprime Autos

Fri, 15 Dec 2017
Wells Fargo is further reducing its exposure to subprime-auto loans, where it has long played a lead role in extending warehouse lines to lenders and running the books on their asset-backed bond offerings.Wells already has begun dismantling warehouse facilities used by some clients, particularly smaller lenders that focus on “deep” subprime borrowers. A spokesperson for the bank declined to comment.The pullback is the result of a...



Upgrade Juices Risk-Transfer Trading

Fri, 15 Dec 2017
Anticipating rating upgrades, buyers of agency risk-transfer securities bid up those securities on the secondary market this week.The activity was most evident among the deals’ mezzanine Class-M2 and Class-M3 securities, which typically carry grades of triple-B down to double-B. On Dec. 11, for example, a few batches of five-year M2 bonds with double-B marks from Fannie Mae’s Connecticut Avenue Securities program traded at 170 bp over...



CarVal Sets CLO-Issuing Plans

Fri, 15 Dec 2017
CarVal Investors is planning its first collateralized loan obligation.The deal is expected to price during the first quarter of 2018, with J.P. Morgan running the books. It would be offered through a unit called CarVal CLO Management that formed in July to oversee the issuing program.It’s unclear who CarVal has assigned to oversee the effort. One candidate could be corporate-loan investment head Chris Mawn, who arrived around the time of...



Porsche Restores Issuing Efforts

Fri, 15 Dec 2017
Porsche is reviving its asset-backed bond program.Talk is circulating that the automaker is aiming to bring an offering to market by midyear 2018. Like most of its previous transactions, the deal would be backed by leases extended to customers in the U.S.Porsche last completed a securitization in May 2015, selling $700 million of lease-backed bonds with Barclays, J.P. Morgan and Societe Generale running the books. The company then attempted to...



FHA Action Clouds PACE Outlook

Fri, 15 Dec 2017
Securitization professionals are trying to calculate how deeply the flow of bonds backed by Property Assessed Clean Energy loans might be reduced by the Federal Housing Administration’s decision to stop financing homes encumbered by those credits.The FHA said on Dec. 7 that, effective in 30 days, it no longer would write mortgages on homes with existing PACE liens — a policy mirroring the stance of the Federal Housing Finance Agency...



CLOs Withstand Retail Woes

Fri, 15 Dec 2017
Median defaults among the assets supporting collateralized loan obligations issued in the U.S. and Europe after the credit crisis remained at zero in September, despite that month’s Chapter 11 filing by Toys “R” Us.How? While loans to the retailer were represented in 94 U.S. deals, J. Crew, Rue21 and Payless ShoeSource completed debt restructurings around the same time — bringing those companies out of default,...



EU Regulatory Scramble Under Way

Fri, 15 Dec 2017
With implementation of the European Union’s new Markets in Financial Instruments Directive just days away, securitization professionals still aren’t sure how they’ll be affected.The broad-ranging rules take effect on Jan. 3, updating legislation that has been in place across the 31-nation European Economic Area since 2008. For structured-finance professionals, the chief concerns are how to comply with controls on the...



Cash Shortage Prompts Equifax Deal

Fri, 15 Dec 2017
Equifax has completed its first securitization.The $200 million transaction was backed by fees that lenders pay to the Atlanta credit-reporting agency when inquiring about borrowers’ scores — likely marking the only time such receivables have been bundled into asset-backed bonds. The securities were privately placed and unrated.The deal priced in recent weeks. It’s unclear if Equifax is planning further offerings.It appears the...



Holiday Costs Hit Subprime Autos

Fri, 15 Dec 2017
The performance of securitized pools of subprime-auto loans deteriorated during the month ended Nov. 15, reflecting the start of the holiday shopping season.Losses among those accounts rose 37 bp to an annualized 9.34%, according to an index maintained by Fitch. The 60-day delinquency rate ticked up 9 bp to 4.90%. Fitch attributed the weakness to a trend wherein borrowers defer bill payments to free up cash for holiday purchases. The agency...



Rated Master, Primary and Special Mortgage Servicers

Fri, 15 Dec 2017
The listing below shows the ratings of U.S. home-loan servicers evaluated by Moody’s, S&P, Fitch, DBRS and Kroll.Master servicers oversee primary servicers and, if necessary, step in as primary servicers if the original ones fail to fulfill their responsibilities. Primary servicers handle payment collections and loan reporting. Special servicers take charge of nonperforming loans by collecting payments, liquidating repossessed assets and...



The Grapevine

Fri, 15 Dec 2017
Citigroup has cemented its claim as this year’s most active underwriter of securitized-product transactions. The bank, which moved into the top spot at midyear after finishing 2016 in second place, has run the books on nearly $90 billion of asset-backed securities, residential mortgage bonds, commercial mortgage paper and collateralized loan obligations worldwide in 2017, according to preliminary figures from Asset-Backed Alert’s ABS...



The Grapevine

Fri, 15 Dec 2017
Lynn Maxwell will leave her London-based post as HSBC’s worldwide head of structured-finance strategy at yearend. Maxwell’s plans are unknown. She has held a variety of positions since joining HSBC in 2005, including global head of securitization. Earlier, she spent time at BNP Paribas, Clifford Chance and Stikeman Elliott.



The Grapevine

Fri, 15 Dec 2017
DLA Piper is adding a senior attorney to its securitization practice in New York. Art Rublin arrives on Dec. 18 from BlackRock’s structured-finance team, where he worked since 2005. Rublin also has worked at McKee Nelson and Fried Frank. His new assignment comes amid a growth initiative within DLA’s securitization unit, which is led by Richard...



The Grapevine

Fri, 15 Dec 2017
Executive recruiters report that job seekers in the structured-finance industry have been receiving an unusually large number of offers from underwriters, issuers and investors this month — the latest sign of a healthy hiring environment. In past years, employers generally held off on such moves until after annual bonuses were distributed during the January-April period. Indications are that by accelerating their offers, they hope to line...



The Grapevine

Fri, 15 Dec 2017
A restructuring at BNY Mellon has claimed the job of James Maitland, an executive vice president responsible for maintaining relationships with clients of the bank’s structured-product trust unit. Sources said Maitland’s exit will become effective at yearend. He had arrived in 2006 from J.P. Morgan. Also on his way out at yearend is Gary Lew, who has been heading corporate-trust services across Asia and...



The Grapevine

Fri, 15 Dec 2017
J.P. Morgan added a quantitative risk analyst to its mortgage-backed securities operation in November. The New York-based recruit, Shaojuan Liao, had been working in a similar capacity at Wells Fargo since 2014. She also counts Bank of the West and Freddie Mac among her former employers.



The Grapevine

Fri, 15 Dec 2017
Hunt Financial Securities has hired another structured-product salesman. Hugh Wallace joined the Rye Brook, N.Y., broker-dealer on Dec. 4. He most recently worked briefly at Robert W. Baird & Co., Hapoalim Securities and Cortview Capital, preceded by a longer tenure at Jefferies. The move to Hunt has him working alongside a number of other Jefferies alumni, including president William...



The Grapevine

Fri, 15 Dec 2017
Deutsche Bank has added a collateralized loan obligation specialist to its secondary-market trading desk in London. Sam Allender, who arrived in November, reports to head trader Nick Waring. Allender most recently worked in a similar capacity at Credit Suisse, which shut down its European structured-product trading unit in 2016. He was employed there since...



The Grapevine

Fri, 15 Dec 2017
Trading-software company Derivative Path has hired Luke Weeks in a sales-and-structuring role in New York. Weeks’ duties include helping banks use Derivative Path’s products for hedging purposes in the asset- and mortgage-backed bond market. He most recently was employed at Janney Montgomery Scott, having arrived there in August 2016 from Citigroup. At Derivative Path, he reports to co-chief executive Steve...



Federal Student-Loan Deals In the Works

Fri, 08 Dec 2017
The U.S. government is exploring securitization as a funding source for its massive inventory of student loans.The effort, still in its early stages, would help finance an estimated $1.5 trillion of accounts that the Department of Education has accumulated since launching its direct-lending program in 2010. As part of the push, the Treasury Department approached bankers and investors in recent weeks to measure their interest.The feedback has been...



Bond Sales to Fund Barclays Personal Loans

Fri, 08 Dec 2017
Barclays is positioning itself as an issuer of personal-loan securities.The offerings would be backed by online accounts that the bank recently began offering through its Barclaycard unit, with an initial deal possibly coming in 2019. Bookrunning duties likely will be handled in-house.Barclays so far has been writing personal loans on an invitation-only basis, but is planning to begin accepting applications more broadly during the first quarter....



Investors Ready to Pounce If Spreads Widen

Fri, 08 Dec 2017
Opportunistic buy-side shops are stockpiling cash in anticipation of increased volatility in the structured-product market.While opinions vary on timing, some investors are pointing to the fact that spreads are at their tightest levels since the financial crisis as an indication that a correction will come sooner than later.A buyer of collateralized loan obligations said he has been liquidating pieces of his portfolio to lock in profits and...



Starwood Targets Non-QM Market

Fri, 08 Dec 2017
Starwood Property, the largest commercial mortgage REIT, plans to begin securitizing residential mortgages.The Greenwich, Conn., affiliate of commercial real estate giant Starwood Capital has been quietly buying home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards. An initial bond offering of perhaps $400 million is expected to hit the market early next year.Among the banks...



Job Openings Abound in Late '17

Fri, 08 Dec 2017
A flurry of job openings for securitization professionals has developed this month.The positions span a range of banks, issuers, investment firms and vendors, most of which are aiming to have the recruits in place by yearend or in early 2018. And executive recruiters are pointing to them as evidence that structured-finance specialists will remain in high demand for months to come.Citigroup is among the banks in hiring mode. It is looking for a...



KKR Picks Up Personal Loans

Fri, 08 Dec 2017
Varadero Capital has sold a portfolio of marketplace-originated personal loans to KKR, which could securitize the credits.The transaction was completed last week. It encompassed 20,000 accounts with an average principal balance of $11,000, which works out to some $220 million. Deutsche Bank represented Varadero in the sale.KKR has securitized personal loans before. In November 2015, for example, the New York firm pooled receivables it bought from...



Card Lender Returning to Market

Fri, 08 Dec 2017
Continental Finance is planning another securitization of subprime credit-card accounts.The offering is expected to total less than $100 million. It is scheduled to hit the market in the coming weeks, with Natixis running the books. The bonds would be rated.Continental has completed a rated securitization just once before, placing $64.5 million of bonds last December, also via Natixis. That deal’s top one-year class earned a single-A grade...



Loan Tracker Teams Up With IBM

Fri, 08 Dec 2017
Global Debt Registry has been admitted to an IBM mentoring program for developers of blockchain applications.The New York firm’s acceptance by the IBM Blockchain Founder Accelerator is expected to become official in January. The focus of the arrangement: creating an asset registry for use by originators and buyers of marketplace-originated personal loans, along with warehouse lendersGlobal Debt Registry already has been talking to some of...



Dubai Aerospace Plans Follow-Up

Fri, 08 Dec 2017
Dubai Aerospace is preparing a second securitization of aircraft leases.The offering is expected to total about $400 million. Goldman Sachs likely will serve as bookrunner.Expectations are that the issue will hit the market around the time of the Structured Finance Industry Group’s “SFIG Vegas 2018” conference, which takes place Feb. 25-28 at the Aria Resort & Casino in Las Vegas. Indeed, Dubai Aerospace chief financial officer...



Issuing Candidate Calls it Quits

Fri, 08 Dec 2017
A subprime auto lender that was planning to securitize its accounts is shutting down.Pelican Auto Finance of Chadds Ford, Pa., will stop originating loans on Dec. 15 and will lay off most of its 70-person staff. It then will attempt to sell its existing accounts, which total $80 million.Pelican launched in 2013, and in 2016 set a strategy in which it would fund itself through securitization — starting with a $150 million offering. But its...



Tax Bills Cloud Solar-Power Outlook

Fri, 08 Dec 2017
Provisions in Congress’ tax bills could reduce the supply of bonds backed by solar-equipment cashflows.At issue are so-called tax equity plays in which investors, typically large banks, receive federal tax credits when they fund renewable-energy projects. The concern is that the separate House and Senate proposals would remove some of those incentives — thus reducing the amount of capital for new projects and, as a result, reducing...



Fund Shop Eyes Tax-Lien Offering

Fri, 08 Dec 2017
Hedge fund manager Prophet Capital is considering securitization as a funding source for its investments in property-tax liens.The Austin firm, a longtime investor in mortgage bonds and other structured products, envisions a $200 million bond offering in the first half of 2018, sources said. There’s no word on who would rate or underwrite the deal, though J.P. Morgan and Guggenheim have run the books on tax-lien securitizations in the...



The Grapevine

Fri, 08 Dec 2017
Brendan Keane is officially on board as head of capital markets at Dividend Finance, a San Francisco company that issues bonds backed by solar-equipment loans. Keane already had been working as a consultant to Dividend for about a year in his capacity as a managing member at Kinsale Capital. He was at EisnerAmper before that, preceded by leading roles in the asset-backed bond banking divisions at Sterne Agee, Gleacher & Co. and CoreLogic. His...



The Grapevine

Fri, 08 Dec 2017
Subprime consumer lender LendUp has hired a chief financial officer with securitization experience — a move that likely indicates an interest in issuing asset-backed bonds. William Donnelly joined the San Francisco operation in recent weeks from Tesla’s captive financing arm, where he served as president. Donnelly had arrived at the carmaker in 2013 from First Electronic Bank, and before that worked at BMW and J.P. Morgan. LendUp...



The Grapevine

Fri, 08 Dec 2017
Sales specialist Steve Kaiman has left Amherst Pierpont Securities to join the New York office of UBS, where he started in October as an executive director. Kaiman held the title of director at Amherst, where his coverage areas included asset-backed bonds and residential and commercial mortgage securities. He arrived there in October 2016 from Credit...



The Grapevine

Fri, 08 Dec 2017
Richard Tantone has left a Citigroup unit that supplies warehouse financing to collateralized loan obligation issuers. His plans couldn’t be learned. With the exception of a stint at Deutsche Bank in 2004, Tantone was employed in Citi’s New York office since 2000.



The Grapevine

Fri, 08 Dec 2017
Credit Agricole has an opening for a vice president on its securitization team in New York. The recruit would help structure, analyze and carry out deals backed by auto loans and equipment receivables. Credit Agricole is focusing on candidates with 6-10 years of experience.



The Grapevine

Fri, 08 Dec 2017
Incenter Securities has added a salesman to its Chicago structured-product team. The recruit, Paul Brandwein, worked from March 2016 until this May at marketing agency Logical Position. His former employers also include Northwestern Mutual. Incenter, owned by Blackstone, was launched in May. It is headed by managing directors Peter Harrison, Hal Hermelee and Tad...



The Grapevine

Fri, 08 Dec 2017
Cross River Bank has hired a senior vice president to help guide its corporate strategy. Brooke Reid’s new role includes tasks related to the Fort Lee, N.J., operation’s work as an originator of record, warehouse lender and buyer of marketplace loans. She reports to financing head Geoffrey Kott. Reid had been working as a consultant since 2015, with a focus on advising startup businesses run by women and minorities. Before that, she...



The Grapevine

Fri, 08 Dec 2017
PeerIQ has hired a director to help clients use its loan-analytics products. Jason Harris arrived at the New York operation in recent weeks from venture capital firm Flatiron Investors, where he started in November 2016. His earlier employers include Amherst Securities, Opus Trading and Jefferies.



Trail-Blazing "Tokenization' Deals in Works

Fri, 01 Dec 2017
A European bank is preparing to securitize mortgages next year by packaging each loan and its corresponding data into a digital token that would reside on a blockchain network and serve as the bonds’ collateral.Few other details are known about the pioneering transaction, or “asset tokenization.” But word of the planned deal goes a long way toward confirming the inevitability that blockchain technology will change the mechanics...



Mortgage-Bond Demand Poised for Surge

Fri, 01 Dec 2017
Mortgage-bond traders anticipate that even more capital than usual will pour into the market in January.Along with a typical practice in which investors put fresh money to work at the start of each year, next month’s outlook reflects a settlement under which J.P. Morgan agreed to pay bondholders $4.5 billion for losses they suffered during the financial crisis. Payments could arrive as early as the week of Jan. 22.Traders expect the...



Reperforming-Loan Buyers Eye "Dirty' Deals

Fri, 01 Dec 2017
Issuers of bonds backed by reperforming mortgages are planning deals backed by riskier collateral.Sources are pointing to Bayview Financial, Chimera Investment and FirstKey Financial as part of a growing group of candidates to offer the securities. Among the characteristics of the asset pools they are envisioning: higher delinquencies; shorter “clean” payment histories; lower borrower credit scores; and higher loan-to-value ratios.The...



Stage Set for QM Rule Revision

Fri, 01 Dec 2017
A change in leadership at the Consumer Financial Protection Bureau could bring swift revisions to the agency’s “qualified-mortgage” standards.In the days after President Trump appointed Mick Mulvaney as acting head of the CFPB on Nov. 27, the regulator apparently signaled to industry participants that it would prioritize an easing of the guidelines. Indications are that a review will start in the coming months.The focus would be...



Apple Resumes Buying Program

Fri, 01 Dec 2017
Apple’s structured-product holdings have jumped in recent months.The company, which invests through a unit called Braeburn Capital, was holding $21.6 billion of asset-backed securities and non-agency mortgage bonds on Sept. 30 — the end of its 2017 fiscal year. That marked a $2.4 billion increase from a year earlier.The growth occurred entirely over the final six months of the stretch, $900 million of it during the July-September...



Auto Lender Returning to Market

Fri, 01 Dec 2017
Subprime auto lender Sierra Auto Finance is planning its second securitization.The Dallas company is envisioning a deal that would hit the market by midyear 2018, with a size of about $140 million. Wells Fargo likely would run the books, with S&P and Kroll assigning ratings to the securities.Wells supplies Sierra with warehouse financing. It also led the shop’s first securitization, a $135 million issue that priced in June 2016. S&P and...



Outlook Cloudy for Eaglewood

Fri, 01 Dec 2017
A shakeup at Eaglewood Capital has industry participants questioning the firm’s future as an issuer of personal-loan bonds.Some are convinced the London firm is exiting the U.S. market, where it completed the first-ever securitization of marketplace-originated personal loans in 2013. But managing partner Lindsey McMurray insisted it plans to remain active, at least as a loan buyer.Feeding the rumors of a retreat was the November sale of a...



Returns Soar for Prytania Fund

Fri, 01 Dec 2017
Prytania Asset Management’s flagship hedge fund is well on its way to a standout year.The firm’s Athena Fund gained 27% over the first 10 months of 2017, and followed up with an unspecified gain in November.The results include both realized and unrealized profits. In October, for example, Prytania sold a long-held mortgage bond investment at a gain. The London firm also received an initial payment on a collateralized loan obligation...



CSC Boosting Europe Headcount

Fri, 01 Dec 2017
Corporation Service Co. is adding staff in Europe.The initiative is aimed at taking advantage of anticipated growth in the region’s securitization and warehouse-lending businesses, where the Wilmington, Del., firm has long offered accounting, special-purpose vehicle management and directorship services to issuers and investors.The buildup already is under way and is expected to last throughout 2018, with some senior personnel arriving...



ABS Issuers Poised for Busy Stretch

Fri, 01 Dec 2017
After a brief lull, the new-issue market for asset-backed securities is springing to life.Bankers are gearing up for a surge in deal volume as issuers seek to meet their funding needs before the yearend holidays. That would follow a two-week period during which the new-issue market slowed around Thanksgiving.From Nov. 20-30, just six asset-backed bond deals totaling $2.1 billion priced. Bankers said issuers and investors were slow to return to...



Trump Team Sets Sights on Watt

Fri, 01 Dec 2017
President Trump’s economic team is weighing its options for removing Federal Housing Finance Agency director Mel Watt following a move by the regulator this week to raise the loan limits for agency mortgages.Trump Administration officials were infuriated by a Nov. 28 announcement from the FHFA that effective Jan. 1, Fannie Mae and Freddie Mac would be able to buy mortgages in higher-priced markets with balances of up to $679,650, compared...



The Grapevine

Fri, 01 Dec 2017
Meghan Dinneen has jumped to 20 Gates Management from Societe Generale. Dinneen arrived at the fixed-income investment firm in October as a managing director responsible for risk management. She had been a member of SocGen’s asset-backed bond structuring group since 2004, most recently as a director. Before that, Dinneen was a member of the commercial-paper conduit team at Credit Suisse — which at the time was led by 20 Gates founder...



The Grapevine

Fri, 01 Dec 2017
Former Credit Suisse executive James Wall has returned to the structured-product world, arriving this week as a director on Natixis’ asset-backed bond banking team in London. Wall had been out of the market since August 2015, when he left his post as head of European mortgage-bond trading at Credit Suisse. That move came before Credit Suisse shut down its European structured-product trading desk. Wall’s former employers also include...



The Grapevine

Fri, 01 Dec 2017
Separately, deal-structuring specialist Yoann Bredillot returned to Natixis’ London securitization team in October. Bredillot, a vice president, had just left the bank in July to join Goldman Sachs. He initially started at Natixis in 2012, and before that was at Societe Generale.



The Grapevine

Fri, 01 Dec 2017
BNP Paribas has hired a structurer for its collateralized loan obligation banking team. Meric Topbas will arrive in the bank’s New York office soon from CLO issuer Crescent Capital, where he worked as an assistant portfolio manager. He arrived there in 2009, having previously worked at Patriarch Partners, Northern Leasing Systems and Akbank. BNP’s CLO team is led by Adnan...



The Grapevine

Fri, 01 Dec 2017
Online personal-loan originator Marlette Funding has added a staffer to its capital-markets team. Joseph Podolski arrived at the Wilmington, Del., firm last week from subprime auto lender Flagship Credit, where his work included securitization-related tasks. He started there in 2015, after stops at J.P. Morgan and Tiedemann Wealth Management. Marlette has completed four securitizations totaling $1.1 billion since July 2016, following a...



The Grapevine

Fri, 01 Dec 2017
Moody’s is seeking a lead analyst for its mortgage-bond rating team in New York. The recruit’s responsibilities would include developing cashflow models and reviewing deal structures and collateral. The position is open to individuals with advanced degrees and at least three years of experience. Candidates can apply at moodys.com by clicking on “careers” and searching for job...



The Grapevine

Fri, 01 Dec 2017
Fifth Third Bank has added a member to its asset-securitization group. Nina Austin is working in the Cincinnati bank’s Charlotte office as a director, moving over from a similar post at Bank of America. She had been employed there since 2002. Fifth Third’s securitization team focuses on structuring deals backed by auto loans, aircraft receivables and equipment...



The Grapevine

Fri, 01 Dec 2017
(SEE CORRECTION BELOW) The SEC filed a motion with U.S. District Court in New York on Nov. 28 challenging a bid by former Nomura trader Tyler Peters to dismiss civil charges that he overcharged clients for their mortgage-bond investments. Peters filed a motion to dismiss on Oct. 27, citing the June dismissal of criminal charges against him. That matter saw former colleague Michael Gramins convicted on six counts of fraud, with Ross Shapiro...



Profit-Taking Efforts Fuel Secondary Sales

Fri, 17 Nov 2017
The secondary market for asset-backed securities and collateralized loan obligations has roared to life.According to Empirasign, the two sectors saw bonds with a combined face value of $3.7 billion go out for bid via 161 offerings last week. That was followed by $3.5 billion of securities in 147 bid lists over the first three days of this week.Trading had been quiet until now. During the week of Oct. 30, for example, a combined $2 billion of...



Morgan Lewis Recruits Locke Lord Partner

Fri, 17 Nov 2017
Law firm Morgan Lewis has hired Keith Krasney away from Locke Lord in anticipation of an increase in mortgage-bond issuance.Krasney, who has led Locke’s structured-finance practice since 2012, is set to join Morgan Lewis’ New York office on Nov. 27 as a partner. Although Morgan Lewis already ranks among the most active law firms advising issuers and underwriters of U.S. mortgage securitizations, the addition is seen as something of a...



Merck Adds to Asset-Backed Bond Dosage

Fri, 17 Nov 2017
Merck continues to add to its holdings of asset-backed securities.Officials from the Kenilworth, N.J., drugmaker’s treasury department brought issuers and underwriters up-to-date on its plans in recent weeks, indicating that 2018 could bring an expansion of $200 million to $300 million. That would mark the portfolio’s biggest single-year addition in recent memory.Merck’s asset-backed bond holdings already were at an all-time...



Rental Substitutions Gain Traction

Fri, 17 Nov 2017
Look for more securitizations of rental-home cashflows to employ mechanisms that allow the issuers to swap out their underlying properties.In fact, so-called substitute contingencies could become standard structural features in the asset class — allowing issuers to become more nimble in managing their exposures, and thus, enabling them to carry out more deals.Substitute contingencies permit issuers of rental-home bonds to swap out...



Redwood Feeds Into Deal Pipeline

Fri, 17 Nov 2017
An uptick in Redwood Trust’s jumbo-mortgage purchases could suggest continued growth for the REIT’s securitization volume.Bankers and investors who have spoken to Redwood estimate that its 2018 issuance could top this year’s tally by $1 billion. That would work out to a total of perhaps $4.5 billion, considering that the Mill Valley, Calif., operation has completed nine deals totaling $3.2 billion so far in 2017 and is expected...



Fed Report Prompts Leverage Fears

Fri, 17 Nov 2017
Lenders are assuring holders of asset-backed bonds that they face little near-term risk from an ongoing rise in household debt.With the Federal Reserve reporting on Nov. 7 that total consumer debt in the U.S. climbed by $116 billion during the third quarter to a record $13 trillion, investors expressed concerns that borrowers could be over-leveraged. But lenders largely have downplayed the idea that the trend could portend another credit-market...



Mortgage Startup Enters Queue

Fri, 17 Nov 2017
An online mortgage lender is looking at securitization as a funding source.Neat Capital is thinking about bringing its debut offering to market by yearend 2018. The securities would be backed by prime-quality jumbo loans and would be rated.Neat began lending in January. The Boulder, Colo., operation so far has been funneling its accounts into a warehouse line and then selling them as whole loans.“Securitization is definitely someplace...



Funds Offloading Marketplace Loans

Fri, 17 Nov 2017
Hedge fund managers including Garrison Investment, Varadero Capital and Victory Park Capital are shopping large portfolios of online personal loans.Sources said the three shops are seeking buyers for loans with a combined face value of several hundred million dollars — an unusual spurt of selling activity. Altogether, at least 10 fund operators are trying to reduce their exposures to the asset class, through sales of whole loans or...



S&P Embraces Reperforming Loans

Fri, 17 Nov 2017
S&P is about to start rating bonds backed by home-equity loans and reperforming mortgages.The initiative is part of a months-long project at S&P to update its rating criteria for U.S. mortgage bonds — a process that should be complete by yearend. But it’s just now becoming apparent that the criteria would apply to deals backed by home-equity loans and reperforming mortgages, as opposed to only securitizations of newly originated first...



Santander Maps Public Lease Deals

Fri, 17 Nov 2017
Santander Consumer USA is planning to sell public bonds backed by leases it writes against vehicles manufactured by Fiat Chrysler’s U.S. unit.The Dallas operation is aiming to submit an application to the regulator in early 2018, and expects to receive approval by the end of the year.Such a timeframe would mesh with an effort by Santander to establish a routine securitization program for its FCA U.S. leases, written under the Chrysler...



Tech Firm Takes Aim at Underwriting

Fri, 17 Nov 2017
Mortgage-technology firm LoanScorecard is in growth mode.The effort entails a more aggressive marketing effort for a tool called Portfolio Underwriter that helps automate the loan-underwriting process. As more users come on board, the Irvine, Calif., company plans to hire an undisclosed number of technology specialists.Overseeing the push is Gerald Casey, a longtime mortgage specialist who joined LoanScorecard last week as a managing director...



Morningstar Cut From Rental Deal

Fri, 17 Nov 2017
Investors in securitizations of rental-home cashflows were scratching their heads after the latest deal to hit the market didn’t carry ratings from Morningstar.As it turns out, the issuer, Pretium Partners, initially engaged Moody’s, Kroll and Morningstar to rate the $251 million offering — the same agencies that worked on its seven previous transactions. But just days before the deal hit the market on Nov. 13, Pretium and...



The Grapevine

Fri, 17 Nov 2017
Hunt Financial Securities has appointed William Jennings as president. The designation confirms speculation that the former Jefferies executive eventually would assume a senior position at the Rye Brook, N.Y., firm, where he started in March. It also comes after Jennings passed Finra’s Series 24 examination in June, allowing him to work as a “general securities principal.” That designation had expired following Jennings’...



The Grapevine

Fri, 17 Nov 2017
Moody’s has completed another flurry of staff reassignments, finalizing a restructuring process that began last year. The latest moves saw associate managing director Kruti Muni take over surveillance of all consumer-asset securitizations. Muni most recently was in charge of rating deals backed by credit-card accounts, student loans and personal loans. Her new post previously was occupied by Linda Stesney, who in turn has moved to a new...



The Grapevine

Fri, 17 Nov 2017
Adam Bareham has joined Ernst & Young’s New York office as an executive director responsible for valuation and cashflow-modeling duties across a mix of structured products. Bareham previously worked in a similar capacity as head of Grant Thornton’s structured-product group since 2014 — and before that at Depository Trust & Clearing Corp., Deloitte and BNY Mellon. The move to Ernst & Young reunites him with Peter O’Connell,...



The Grapevine

Fri, 17 Nov 2017
Miriam Tai, who until January raised money for CIFC’s structured-product investment vehicles, resurfaced last week at Franklin Templeton Investments’ New York office. In her new position, Tai acts as a liaison to institutional investment consultants, including Wilshire Associates. She had started at CIFC in 2015, following stops at Itau Asset Management, Man Investments, BlackRock and Stone &...



The Grapevine

Fri, 17 Nov 2017
Buyside shop Semper Capital has hired a mortgage-bond trader. Ryan Biernesser started at the New York fund operator in recent weeks, having previously been employed at Cross Stone Capital from June 2016 until this July. Before that, he spent time at BlueCrest Capital, Bonwick Capital, C12 Capital, Barclays, Lehman Brothers and Goldman Sachs. His move to the $1.3 billion Semper reunites him with mortgage-bond investment chief Neil Aggarwal, who...



The Grapevine

Fri, 17 Nov 2017
Krishnan Harihara has a new job. Harihara started on Nov. 13 as a managing director responsible for structured finance at Global Bankers Capital, a Durham, N.C., firm that specializes in financing mid-size businesses. Harihara most recently helped to oversee an $11 billion portfolio of securitized instruments as Genworth Financial’s head of securitized-product research. He started there in 2008 and left this February amid a broader...



The Grapevine

Fri, 17 Nov 2017
Hedge fund operator Hudson Cove Capital is seeking an analyst. The recruit would help review investments in a mix of asset-based instruments, including structured products. Hudson Cove is focusing on candidates with 2-3 years of experience. Applicants can email resumes to the Jersey City, N.J., firm at info@hudsoncovecapital.com.



HUD Resuming Sales of Nonperforming Loans

Fri, 10 Nov 2017
HUD is jumpstarting its Distressed Asset Stabilization Program, promising a fresh supply of nonperforming mortgages available for securitization.After a 14-month hiatus, the federal housing agency plans to resume sales of defaulted home loans via a program that has supplied the market with more than $22 billion of such accounts since 2013. HUD is expected to float an offering early next year that would encompass mortgages with a combined...



Ally's Issuance Volume Poised for Sharp Drop

Fri, 10 Nov 2017
Investors’ fears about Ally Financial may be coming true.Ally, which only three years ago ranked as the most prolific issuer of auto-related securities, gradually has been reducing its reliance on securitization as a funding source in favor of bank deposits. Institutional buyers have been keeping their fingers crossed that Ally wouldn’t cut its production of asset-backed bonds too much more, but the latest signals from the Detroit...



Demand Sustaining CLO Spread Squeeze

Fri, 10 Nov 2017
Even with spreads on collateralized loan obligations steadily tightening for much of this year, managers keep looking for ways to further reduce their funding costs.Prudential issued CLO paper this week that set a three-year investment period for the refunding of a 2013 deal. That’s shorter than the typical extension, or “re-set,” of four or five years, and gave investors additional comfort that left them willing to accept lower...



Hopes Rise for MBS Revival in UK

Fri, 10 Nov 2017
With the Bank of England’s post-crisis loan-funding programs set to expire in February, expectations are building that London banks will return to issuing mortgage bonds on a more regular basis.Some disagree, but many in the U.K. are predicting that banks will start dipping their toes into the water next year and gradually increase their issuance as funding from the central bank runs off in the coming years.That would be welcome news for...



Japanese Bank Building CLO Business

Fri, 10 Nov 2017
Sumitomo Mitsui Banking is positioning itself as a bookrunner of collateralized loan obligations in the U.S.Its U.S. brokerage arm, SMBC Nikko, is searching for a banker with at least 15 years of experience in the CLO market to lead the effort. The recruit would be based in SMBC’s headquarters in New York.Sumitomo, Japan’s second largest bank by assets — and no relation to Sumitomo Mitsui Trust — has been gradually...



Congress Drafting GSE-Reform Bills

Fri, 10 Nov 2017
Republican-led committees in the U.S. House and Senate have been quietly drafting legislation to reform Fannie Mae and Freddie Mac, with hopes of introducing the measures early next year.The panels are still hammering out details, but one or both of the bills could call for the continuation of the U.S. government’s guarantee on loans acquired by the mortgage agencies — something that was previously considered a longshot.It’s far...



Huntington Calls Off 2017 Offering

Fri, 10 Nov 2017
Huntington National Bank has pulled the plug on a planned securitization of prime-quality auto loans.The offering, with a projected size of $1 billion, was expected to hit the market by yearend. Sources said treasury officials at the Columbus, Ohio, bank are choosing to finance the underlying loans through deposits instead.The decision comes despite low financing costs in the asset-backed bond market. New prime-quality auto-loan securities with...



Alexandria Preps Multi-Manager Fund

Fri, 10 Nov 2017
Wealth manager Alexandria Capital is starting a fund of funds whose underlying strategies would include structured products.The new offering, which the Washington firm expects to launch early next year, would deploy capital to vehicles that invest in the equity tranches of collateralized loan obligations, as well as special-situations hedge funds and private equity funds.Alexandria plans to market the vehicle primarily in Asia, with particular...



Angel Oak Teeing Up Rare CDO

Fri, 10 Nov 2017
Angel Oak Capital is coming to market with a collateralized debt obligation backed by subordinate bank debt — one of the few rated CDOs to materialize since the financial crisis.The Atlanta investment shop, with $7.4 billion under management as of Sept. 30, is set to begin marketing the deal in the next few weeks, with Nomura running the books. The offering is expected to weigh in around $200 million and carry ratings from Moody’s.The...



CLO Stats Reflect Downgrade

Fri, 10 Nov 2017
The credit quality of collateralized loan obligations sold since the financial crisis deteriorated slightly in August.According to data tracked by Moody’s, the percentage of loans rated “Caa1” or lower among the collateral pools rose 10 bp to 4.30% in the U.S. and 20 bp to 1.34% in Europe. Moody’s analyst Aniket Deshpande said the increases largely reflect the downgrade of a widely held loan to Canadian pharmaceutical...



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

Fri, 10 Nov 2017
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...



No Pullback for Golub Program

Fri, 10 Nov 2017
Defying recent rumors, Golub Capital plans to keep issuing collateralized loan obligations backed by broadly syndicated corporate debt.Industry participants were speculating that Golub might scale back its production of those deals, pointing to the recent exit of business-development specialist Gil Tollinchi. But now comes word that the New York firm is planning to refinance two existing transactions in the sector while preparing for a new...



Subprime Auto Loans Strengthen

Fri, 10 Nov 2017
The performance of securitized pools of subprime auto loans improved slightly in the latest reporting period.According to an index maintained by Fitch, during the month ended Oct. 15 subprime-loan losses fell 27 bp to an annualized 8.97%, despite expectations that performance would keep deteriorating through the holiday season. Delinquencies also recovered somewhat, dropping 29 bp to 4.81%, allaying fears that payments would be interrupted from...



The Grapevine

Fri, 10 Nov 2017
Collateralized loan obligation trader Michael Kessler is leaving Barclays. His next move is unknown, but sources said he plans take at least several months off. Kessler had ranked as the most senior CLO trader at Barclays following a round of layoffs in January 2016. But that changed in August, when Barclays hired Sam Oher from Nomura and named him head CLO trader. Kessler joined Barclays in 2008 via its takeover of Lehman...



The Grapevine

Fri, 10 Nov 2017
Securitized-product salesman Mohil Gupta no longer is working at Cantor Fitzgerald. He left about a month ago, ending a two-year stint as a managing director whose responsibilities included sales of asset-backed securities, mortgage bonds and collateralized loan obligations to hedge fund managers. Gupta previously spent four years in a similar role at Bank of...



The Grapevine

Fri, 10 Nov 2017
Matthew Petri started work at Mizuho this week as a structured-product salesman. He had been at KeyBank since 2016, and previously spent time at RBC and J.P. Morgan. Key is interviewing candidates to fill the vacancy. Petri’s arrival at Mizuho follows the departure last month of salesman Joe Hornback.



The Grapevine

Fri, 10 Nov 2017
John Kirsch no longer works at ICE Data Services. Kirsch, who joined the software company in 2011, left about a week ago. During his six years there, he oversaw a unit that computed mortgage-bond values. Prior to ICE Data, Kirsch spent about two years as a senior portfolio manager at Primus Asset Management, helping run a portfolio of asset-backed bonds. He also has spent time in the securitization groups at J.P. Morgan, Mizuho and...



The Grapevine

Fri, 10 Nov 2017
Volfi Mizrahi has joined YieldStreet with the title of managing director in charge of originations. YieldStreet buys a range of specialty-finance products including unsecured personal loans and small-business loans originated by online lenders; real estate bridge loans; and litigation-financing packages. It then offers them to investors via an electronic exchange. Mizrahi started work last month in the firm’s New York headquarters. He...



The Grapevine

Fri, 10 Nov 2017
Collateralized loan obligation issuer Antares Capital wants to hire a structured-product analyst. The recruit would work in New York under Vivek Mathew, managing director for structured products. Responsibilities would include preparation of global marketing materials, gathering market data and interacting with lawyers and rating-agency analysts. Candidates should have 2-4 years of experience in finance. Antares, formerly a unit of GE Capital,...



The Grapevine

Fri, 10 Nov 2017
Former HUD official Genger Charles has resurfaced at PricewaterhouseCoopers. She joined the accounting giant’s Washington office last week as a senior manager with a focus on financial regulation. Charles left HUD in August following two stints spanning eight years. Her roles at the housing agency included overseeing regulatory policy as it pertains to mortgage lenders, developers and financial institutions. Charles joined HUD in 2010 as a...



The Grapevine

Fri, 10 Nov 2017
The Structured Finance Industry Group may seek a new location for its “Residential Mortgage Finance Symposium” after the debut event, held Nov. 7-8 at the Conrad Hotel in New York, drew a larger-than-expected crowd. SFIG cut off registrations after the attendee list reached the facility’s capacity of 1,100. That meant many issuers, investors, service providers and regulatory agencies were able to send only their senior-most...



SFIG Mortgage Conference Tests Capacity

Fri, 03 Nov 2017
Interest in the Structured Finance Industry Group’s debut “Residential Mortgage Finance Symposium” has far exceeded expectations.The event, scheduled for Nov. 7-8 at the Conrad Hotel in New York, initially had a projected headcount of 350. But more than 1,100 investors, issuers, regulators and vendors have signed up — prompting the trade group to cut off registrations on Nov. 1.The showing in part reflects anti cipation...



Angelo Gordon Joins Growing MBS Pipeline

Fri, 03 Nov 2017
Angelo, Gordon & Co. is planning to securitize home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards.The deals are set to begin flowing in 2018. Angelo Gordon still is setting its strategy, but it’s possible the firm will start with a few privately placed transactions before moving into Rule-144A offerings with ratings.While Angelo Gordon doesn’t currently own any...



CapOne Seen Securitizing Cabela's Accounts

Fri, 03 Nov 2017
It looks like Capital One will fold Cabela’s credit-card business into its securitization program, allaying fears among investors that the bank would fund the retailer’s accounts by another means.After CapOne agreed to purchase Cabela’s card receivables in October 2016, the talk among industry professionals was that the bank most likely would fund that business via deposits — spelling the end for an asset-backed bond...



Europeans Fret Over Regulatory Fix

Fri, 03 Nov 2017
Industry participants in Europe are sounding alarms over an attempt to insulate securitized products from a proposed regulatory update, saying the effort wouldn’t do enough to protect collateralized loan obligations and nonperforming-mortgage deals.At issue is a reworking of the European Commission’s European Market Infrastructure Regulation. The original version of the regulation, implemented in 2012, designates securitization...



Cerberus Shops Home-Loan Fund

Fri, 03 Nov 2017
Cerberus Capital is marketing an opportunistic mortgage fund.The New York firm’s Cerberus Residential Opportunity Fund invests in reperforming home loans in the U.S. and buys performing mortgages in Europe from distressed sellers, according to sister publication Hedge Fund Alert. It presumably will rely on securitization as an exit strategy.In fact, it appears the vehicle could act as a short-term source of funding for Cerberus unit...



Online Lender Pulls the Plug

Fri, 03 Nov 2017
Another small-business lender has bitten the dust.Online originator Able Lending shut its doors this week. Sources said the Austin firm was running low on capital and sold its portfolio of roughly $21 million of loans to rival Fundation Group for a nominal amount.Able, founded in 2014, had planned to eventually securitize its assets but failed to reach critical mass.Several other small-business lenders including BizFi and Bond Street have shut...



Card Bonds Show Resilience

Fri, 03 Nov 2017
The performance of securitized pools of U.S. credit-card accounts improved in the third quarter after deteriorating during the first half.For bankcards, the average charge-off rate during the July-September period was 2.81%, down from 2.89% in the second quarter, according to an index maintained by Fitch. Charge-offs peaked at 3.12% in June after hovering around historic lows from 2014 to 2016. Now, Fitch believes the figure is normalizing after...



HSBC Funding Clients' Home Loans

Fri, 03 Nov 2017
HSBC is offering financing for mortgage portfolios.The effort initially is focusing on nonperforming and reperforming loans, but eventually could expand to encompass newly originated accounts. Sources said HSBC is making the capital available in the form of warehouse lines and repurchase facilities, drawing both on in-house capital and a commercial-paper conduit called Regency Markets.In some cases, HSBC would follow up by arranging...



Ellington Program Taking Shape

Fri, 03 Nov 2017
Ellington Financial’s mortgage-bond issuing plans are coming into focus.After about a year of planning, word is circulating that the Old Greenwich, Conn., firm could be in the market at any time with its first securitization of loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards.The expectation is that the deal’s asset pool will encompass most of Ellington’s...



Non-QM Lenders Reshape Mortgage-Bond Pipeline

Fri, 03 Nov 2017
The following is a rundown of U.S. mortgage companies that plan to fund themselves through securitization for the first time, are coming off extended absences or are moving into asset categories that are new to them. It also counts issuers that previously came to market privately, and now are conducting broadly offered transactions. It leaves out offerings from routine issuance programs and deals involving rental-home cashflows.Among deals backed...



Servicer Follows Clients Into Europe

Fri, 03 Nov 2017
First Associates is extending the reach of its servicing business into Europe.While the San Diego company would work on a mix of consumer and corporate debt across the region, the effort particularly is aimed at accommodating U.S. originators of online personal and small-business loans that are stepping up their businesses in the U.K.First Associates already has been performing custodial duties in the U.K., but on Oct. 18 received approval from...



Blockchain Pros Offer Credit Checks

Fri, 03 Nov 2017
A company that uses blockchain technology to verify borrowers’ identities and credit histories has lined up $50 million of fresh backing.The infusion, set to arrive in the coming weeks from an undisclosed investor group, promises to make Bloom Protocol a more viable competitor to the established credit agencies. The San Francisco operation so far has been operating with capital from founders John Backus, Ryan Faber, Jesse Leimgruber and...



The Grapevine

Fri, 03 Nov 2017
LibreMax Capital has hired a collateralized loan obligation investment specialist. Nirjhar Jain arrived at the New York hedge fund manager this week from the secondary-market trading desk at Guggenheim, where he worked since June 2016. He previously spent time TIG Advisors, Plus Funding, Morgan Stanley, Deutsche Bank and Lehman Brothers. During his time at Deutsche, he worked alongside LibreMax heads Fred Brettschneider and Greg...



The Grapevine

Fri, 03 Nov 2017
Moody’s has promoted several analysts. Associate managing director Luisa De Gaetano, who was in charge of rating corporate-asset securitizations, now leads the agency’s residential mortgage-bond group in New York under Will Black. De Gaetano arrived in 2005. Her new post had been occupied by Deepika Kothari, who has moved to a surveillance position. Meanwhile, senior vice president Nicky Dang has been assigned to lead ratings for most...



The Grapevine

Fri, 03 Nov 2017
Hunt Financial has hired a collateralized loan obligation trader. Paul Tedeschi arrived at the Rye Brook, N.Y., broker-dealer this week from Spring Hill Capital, where he was employed since 2008. Tedeschi also has worked at Lehman Brothers, overseeing the bank’s European structured-product syndicate desk just ahead of Lehman’s collapse. He now reports to Hunt’s head CLO trader, Jiwon Park. Hunt has been hiring aggressively this...



The Grapevine

Fri, 03 Nov 2017
Two employees have left Victory Park Capital, a Chicago investment firm that aims to use securitization to fund purchases of marketplace-originated personal loans. Karrie Truglia had been a principal on Victory Park’s loan-buying team since 2015, and before that spent time at Citigroup, Bear Stearns, Assured Guaranty and BMW. Her next move couldn’t be learned. Also gone is assistant controller Joe Hughes, who started in October at...



The Grapevine

Fri, 03 Nov 2017
Syndicate specialist Lauren Hoard resurfaced on MUFG’s asset-backed bond desk in New York about a month ago. Hoard most recently worked at Guggenheim from 2015 until this June. Earlier, she was at Morgan Stanley. At MUFG, she reports to asset-backed bond banking head Tricia Hazelwood.



The Grapevine

Fri, 03 Nov 2017
Online personal-loan originator Upgrade is seeking an analyst to support a team that sells its accounts to investors — including those that would funnel the accounts back into “club” securitizations the company plans to start floating in 2018. Upgrade is focusing on candidates with at least three years of experience. The San Francisco-based recruit would report to investor-operations head Christopher Young. Applicants can email...



The Grapevine

Fri, 03 Nov 2017
Kevin Walsh has joined New York data-analytics firm PeerIQ as head of sales and marketing. Walsh oversees negotiations of partnerships with other companies. He had been exploring some startup ventures since 2015, and before that led a mortgage-lending division of Ocwen Financial. He also has worked at EXL Service, Advanta, Opera Solutions, Inductis and Mars &...



Sallie Emerging From Securitization Respite

Fri, 27 Oct 2017
Sallie Mae Bank is preparing to resume issuing bonds backed by private student loans.The Newark, Del., operation has been telling analysts, bankers and investors that it could float such a deal by yearend — its first since completing a $772 million offering on Jan. 31 via bookrunners Credit Suisse, J.P Morgan and RBC.Even if Sallie doesn’t return to market this year, the talk is that it could produce $2 billion to $3 billion of fresh...



Otting Urged to Reverse Portfolio-Risk Rule

Fri, 27 Oct 2017
Mortgage-securitization advocates see a change in leadership at the Comptroller of the Currency as an opportunity to reopen the door to “portfolio risk transfer” transactions.The efforts, involving banks, attorneys and the Structured Finance Industry Group, would focus on convincing incoming Comptroller Joseph Otting to amend Sections 3.41 and 3.141(a) of Rule 12 of the Code of Federal Regulations.Citing those controls, the agency had...



Finacity Accused of Snatching Trade Secrets

Fri, 27 Oct 2017
Lord Capital is suing Finacity for allegedly stealing its trade secrets.Lord filed its complaint on Sept. 18, pointing to an October 2015 arrangement in which it was to work alongside Finacity to arrange securitizations of trade receivables for clients. Lord claims that during the buildup for an initial deal, for printing company Flint Group, Finacity abandoned the partnership and instead lined up the funding on its own.The New York Supreme Court...



US Firms Eye Europe's CLO Market

Fri, 27 Oct 2017
Word is spreading among collateralized loan obligation professionals in Europe that several more U.S. issuers are aiming to tap their market.Anchorage Capital, Angelo Gordon & Co., ArrowMark Partners and Credit Value Partners are among the CLO issuers in the States that are readying — or at least contemplating — their first European transactions.With multinational corporations seeking to borrow on both sides of the Atlantic Ocean,...



Investors Scrutinize CapOne, Discover

Fri, 27 Oct 2017
Look for investors in credit-card bonds to use the latest earnings reports from Capital One and Discover Financial to their advantage.The card-bond issuers each reported third-quarter earnings on Oct. 24. And while both beat analysts’ profit estimates, they revealed weaknesses in key areas that investors believe will give them an opening to push for higher yields on new deals both companies are expected to float before yearend.CapOne saw...



Reprieve Offered in STS Package

Fri, 27 Oct 2017
European regulators have defanged a proposed ban on securitizations of mortgages to borrowers with “self-certified” incomes and employment.The prohibition appeared in May as part of a broader regulatory framework for structured-finance transactions that the European Commission, European Council and European Parliament were drafting. But a final package approved by Parliament on Oct. 26 took a friendlier approach by specifying that...



Non-QM Lender Headed to Market

Fri, 27 Oct 2017
(SEE CORRECTION BELOW) Mortgage lender Citadel Servicing is preparing its first securitization.The offering, totaling $200 million to $300 million, would be backed by subprime loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards. It is expected to hit the market late this year or in early 2018.Potential underwriters include Nomura, which supplies Citadel with warehouse funding for the underlying...



Disasters Imperil Risk-Transfer Paper

Fri, 27 Oct 2017
The Association of Mortgage Investors is pressing Fannie Mae and Freddie Mac to protect investors in risk-transfer securities from losses stemming from natural disasters.In an Oct. 25 letter to the agencies and their regulator, the Federal Housing Finance Agency, the organization said industry professionals may have underappreciated the potential for property damage from Hurricanes Harvey and Irma to dent bondholders’ cashflows. The...



Santander Auto Program Accelerating

Fri, 27 Oct 2017
Santander Consumer USA is still gaining momentum as an issuer of bonds backed by “deep-subprime” auto loans.The Dallas lender is aiming to complete another offering via its Drive Auto Receivables Trust by yearend, on top of the five transactions totaling $4.8 billion that it already has carried out through the program this year.Of those deals, three came after Santander gained SEC approval to issue publicly under the Drive Auto label...



Global Jet Seen Revamping Deal

Fri, 27 Oct 2017
Don’t expect Global Jet Capital to return to the asset-backed bond market until next year.That’s the thinking among bankers and investors after the aircraft-leasing company abruptly canceled its debut bond offering last week in response to a critical report from Fitch. Given Fitch’s contention that the $1.4 billion transaction offered insufficient credit enhancement, it’s almost certain Global Jet and bookrunner Morgan...



Decision Cheered by CLO Pros

Fri, 27 Oct 2017
Collateralized loan obligation managers are hopeful a ruling by the U.S. Government Accountability Office will lead to an increase in the supply of leveraged loans.The GAO, responding to efforts by Republican lawmakers to loosen constraints on banks, said on Oct. 19 that lending guidance issued by the Federal Reserve, FDIC and Comptroller of the Currency in 2013 amounted to a formal regulation. The decision means the advice, which sets...



Arch Reinsurance Deals On the Rise

Fri, 27 Oct 2017
Arch Capital is eyeing a further expansion of its securitization program.The Bermuda company’s deals essentially act as reinsurance, with investors absorbing payout risk tied to mortgage-insurance policies written by its Arch Mortgage Guaranty unit. Word has it that the operation is planning at least two such deals for 2018, building on an annual schedule the program has maintained until now.With that increase, word has it that Arch could...



The Grapevine

Fri, 27 Oct 2017
Joe D’Urso left his job as managing director at Pretium Partners a few weeks ago. D’Urso had been at the New York rental-home investor since September 2016, helping to oversee a number of businesses that included its securitization program. He also has worked as president of Clayton Holdings, having joined the firm via its 2012 purchase of Green River Capital, and counts Merrill Lynch and Goldman Sachs among his former employers....



The Grapevine

Fri, 27 Oct 2017
Nomura has hired a managing director to place leveraged loans with issuers of collateralized loan obligations from its Rye, N.Y. office. The recruit, Gil Tollinchi, most recently worked in a business-development role at CLO issuer Golub Capital. He left that post in August, after just a few months on board. Earlier, Tollinchi spent time at Crescent Capital and predecessor TCW, along with Standard Chartered Bank, BNY Mellon and Chase Manhattan....



The Grapevine

Fri, 27 Oct 2017
Former Moody’s asset-backed bond analyst Henry Chen has resurfaced in the Herndon, Va., office of VW Credit. His focus: handling tasks associated with the Volkswagen unit’s securitizations of auto loans and leases. Chen joined Moody’s in 2012, and in 2015 was promoted to lead analyst for securitizations of auto loans, auto leases and dealer-floorplan receivables. He left in July. Volkswagen has been an active issuer of bonds...



The Grapevine

Fri, 27 Oct 2017
Wilmington Trust has picked up a staffer as part of a push to build up its structured-finance trust activities in Europe. Rhys Owens started this week as a transaction manager, splitting his time between London and Dublin. Owens had been employed since April 2016 at Sanne Group, and before that was at Deutsche Bank. Wilmington’s buildup in Europe is being led by Alan Geraghty, who oversees the company’s structured-finance activities...



The Grapevine

Fri, 27 Oct 2017
Trader Lorenzo Chiappetta joined Hunt Financial Securities’ Rye Brook, N.Y., office on Oct. 18 from a vice president post at Incapital, where he started in 2016. Chiappetta also has worked at Stifel Nicolaus and Keefe, Bruyette & Woods. Hunt has added a number of structured-product specialists to its staff this year amid a push into the trading and underwriting...



The Grapevine

Fri, 27 Oct 2017
Online personal lender Affirm has hired a head of capital markets, assigning her to build a securitization program. Zara Ivanova had been working since 2015 on the capital-markets team at education lender Earnest, which agreed on Oct. 4 to sell itself to Navient. Ivanova also has worked at Guggenheim, Dresdner Kleinwort and AIG. San Francisco-based Affirm is led by PayPal co-founder Max...



The Grapevine

Fri, 27 Oct 2017
The Second Circuit Court of Appeals in New York has scheduled a Dec. 11 hearing in which attorneys for former Jefferies mortgage-bond trader Jesse Litvak will argue that his conviction on federal fraud charges should be overturned. Litvak was accused of overcharging clients for their investments, and was found guilty of a single count of fraud on Jan. 27. He started a two-year prison sentence on Sept....



The Grapevine

Fri, 27 Oct 2017
Deephaven Mortgage has hired a head of business development for the Midwest. Derek Lewis joined the Charlotte lender this month from Quicken Loans, where he was employed since April 2016. Lewis also has worked at Fay Servicing, Nationstar Mortgage and BB&T Capital. Deephaven, whose loans don’t conform to the Consumer Financial Protection Bureau’s “qualified-mortgage” standards, has completed two securitizations totaling...



Credit Unions Expanding ABS Portfolios

Fri, 20 Oct 2017
Credit unions are becoming more active buyers of asset-backed securities.The trend appears to have taken hold in the past month or so, with the operations increasingly bidding on bonds backed by credit-card accounts, auto loans and student loans on both the new-issue and secondary markets. Among the buyers: Best Reward Credit Union, Catalyst Corporate Federal Credit Union, Corporate America Family Credit Union and Corporate One Federal Credit...



Investors Seek Reassurance on CLO Assets

Fri, 20 Oct 2017
Investors increasingly are casting doubt on the quality of today’s collateralized loan obligation assets.The concerns stem from a long-developing move toward more borrower-friendly terms in the leveraged-loan market. While CLO buyers have been tracking the trend for some time, they have been expressing more discomfort in the past few weeks — citing potentially heightened exposures to collateral defaults.To be sure, overall demand for...



Fitch Report Dooms Global Jet Transaction

Fri, 20 Oct 2017
The cancellation of Global Jet Capital’s debut securitization offers a rare look at the process of pulling a deal from the market.The $1.4 billion offering started making the rounds on Sept. 27 with Morgan Stanley running the books and Kroll assigning ratings of single-A down to triple-B to its various classes. But marketing efforts stalled when Fitch released an unsolicited report criticizing the transaction on Oct. 10, just days before it...



Varde Mulling Non-QM Conduit

Fri, 20 Oct 2017
Hedge fund operator Varde Partners is considering the formation of a conduit through which it would buy and securitize home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards.Sources describe the effort as being in an exploratory phase, with Varde discussing the idea of setting up correspondent-lending agreements with a few originators. Should it move forward, the Minneapolis...



Mortgage Startup In Buying Mode

Fri, 20 Oct 2017
Mortgage buyer VWH Capital is ready to start investing.The New York firm recently wrapped up capital-raising efforts for its debut fund, bringing in more than $100 million. The plan is to use the money to buy defaulted mortgages from Fannie Mae and Freddie Mac and then rehabilitate them.As an exit strategy, VWH would securitize or sell the reperforming loans — or both.VWH has been lining up investor commitments since 2015, but had to wait...



VantageScore Pressing Policymakers

Fri, 20 Oct 2017
VantageScore Solutions is trying a new tactic in its campaign to persuade mortgage lenders to adopt its credit-scoring protocol.The Stamford, Conn., firm, a joint venture between Equifax, Experian and TransUnion, has prepared a report aimed at influencing an ongoing debate concerning Fannie Mae and Freddie Mac, which are required by law to work with lenders that rely exclusively on Fair Isaac Corp.’s FICO score. The credit-reporting bureaus...



Private Student Loans in Spotlight

Fri, 20 Oct 2017
It’s been a good week for holders of private student-loan paper.Bond values have increased across the board. Triple-A-rated notes with five-year lives were changing hands on the secondary market at 90 bp over one-month Libor, 10 bp tighter than just a week ago. Senior securities with three-year lives were trading at 60 bp, in 5 bp.What’s driving demand? In a word, yield. Among mainstream asset classes, bonds backed by loans without...



Settlement Money Headed to Investors

Fri, 20 Oct 2017
Mortgage-bond investors finally are about to see the proceeds from a $4.5 billion settlement with J.P. Morgan.Trustees BNY Mellon, Deutsche Bank, HSBC, TMI Trust, U.S. Bank, Wells Fargo and Wilmington Trust notified bondholders last week that the IRS approved the deal on Sept. 19 and that they would determine how to divvy up the capital 90 days after. The window for lump-sum payments, meanwhile, is 120 days — meaning checks should arrive...



BNY Lawsuit to Proceed

Fri, 20 Oct 2017
A U.S. District Court judge in New York has again refused to dismiss a bondholder lawsuit against BNY Mellon for its work as a mortgage-bond trustee.At issue are breach of contract and negligence claims by Commerzbank. Judge George Daniels initially denied a motion by BNY that he throw out those complaints on March 21 — and on Oct. 12 shot down a request that he reconsider that decision.In its second motion, BNY argued that the statute of...



Issuers Crank Up Deal Volume

Fri, 20 Oct 2017
October is shaping up to be the biggest month of the year for sales of new U.S. asset- and mortgage-backed securities.By the end of this week, issuers representing a range of asset classes will have sold $26.3 billion of bonds, according to Asset-Backed Alert’s ABS Database. And with another $5 billion-$8 billion of transactions in the pipeline for the week of Oct. 23, full-month volume should easily eclipse the $30.3 billion of deals that...



New Trade Group Maps Agenda

Fri, 20 Oct 2017
A newly formed trade group for capital-markets professionals in the online-lending sector wants to be a resource for startups.The Capital Markets in Lending Association, which launched in September and now counts 50 members, is searching for a consultant who could advise newer, smaller online lenders on their financing options, including securitization. The association’s founder, James Alexander, said capital-markets pros working for online...



The Grapevine

Fri, 20 Oct 2017
Robert Klein has left his post as a senior portfolio manager responsible for structured-product investments at CIFC. Klein’s plans are unknown. He joined CIFC in 2015 from Prospect Capital. Before that, he worked at American Capital and Morgan Stanley. At CIFC, he sat on the structured-product investment committee.



The Grapevine

Fri, 20 Oct 2017
Michelle Gill has started her new job. The former Goldman Sachs executive, who left the bank in March to join TPG Sixth Street Partners, arrived at the San Francisco investment operation this week after waiting out a gardening leave. Gill worked as a member of Goldman’s securitization-banking team since 2003, and before that was at Lehman Brothers. At TPG, she is handling investments in a mix of structured...



The Grapevine

Fri, 20 Oct 2017
Former CarVal Investors structured-product trader Stephen Smitley has resurfaced in Eden Prairie, Minn., as an analyst overseeing asset- and mortgage-backed bond investments at Blue Cross and Blue Shield of Minnesota. Smitley left CarVal in June. He had joined the Cargill investment unit in 2009 from the then-affiliated Black River Asset Management. Before that, he worked at GMAC and...



The Grapevine

Fri, 20 Oct 2017
Verizon has an opening for a treasury manager in Basking Ridge, N.J. The recruit would handle a mix of duties tied to the company’s securitizations, including the collection and interpretation of performance data for the deals’ underlying mobile-device payments. Verizon so far has completed five such offerings totaling $6.4 billion. The company is focusing on candidates with at least five years of experience. To apply, go to...



The Grapevine

Fri, 20 Oct 2017
Eagle Point Credit has hired a collateralized loan obligation specialist away from BNP Paribas. Helen Guo started as a trader and analyst at the Greenwich, Conn., buy-side shop this week, covering investments in CLOs. She reports to portfolio manager Dan Ko. Guo had been a member of BNP’s CLO-origination team since 2015. Before that, she spent time at Barclays and DFG...



The Grapevine

Fri, 20 Oct 2017
Kroll has added an analyst to its New York office. Alla Mikhalevsky arrived Oct. 16 as an associate director responsible for rating bonds backed by auto loans, personal loans and student loans. Mikhalevsky had been employed since 2013 as a director in the capital-markets group at Santander Consumer USA, helping to oversee the company’s auto-loan securitizations. She also has worked at ALM First...



The Grapevine

Fri, 20 Oct 2017
Lydia Foo has joined the capital-markets team at online personal lender Upgrade. As head of structured finance, Foo’s tasks include overseeing the San Francisco operation’s warehouse lines and a securitization program it is developing. She reports to Adelina Grozdanova. Foo had been working in a similar capacity at Square since May 2016. Before that, she spent time at Morgan Stanley, Bear Stearns, IndyMac and...



The Grapevine

Fri, 20 Oct 2017
Longtime securitization specialist Mike Mittleman is pursuing a venture outside the structured-finance industry. As the founder of New York-based Career Services Plus, Mittleman is helping job seekers navigate the process of finding and landing new jobs in a range of fields. The operation opened for business a few weeks ago. Mittleman headed SolarCity’s securitization program from 2011 to 2012, and continued to work as a consultant to the...



The Grapevine

Fri, 20 Oct 2017
Vice president Joachim Skor left Moody’s a few weeks ago. His plans are unknown. Skor had joined the agency in 1994 straight out of college, most recently working on the development of structured-finance rating models.



TD Taps Dansker for Underwriting Campaign

Fri, 13 Oct 2017
TD Bank has hired veteran banker Brad Dansker to lead a long-planned expansion of its asset-backed bond origination business in the U.S.Dansker, whose resume includes prominent securitization posts at J.P. Morgan and ABN Amro, started in the Toronto institution’s New York office on Sept. 1. His mission: to land bookrunning assignments on a mix of deals, including those underpinned by prime-quality auto loans and leases, credit-card...



No Quick Fix for Risk-Retention Mandate

Fri, 13 Oct 2017
Securitization professionals think it could take up to two years to enact a U.S. Treasury Department plan to relax the Dodd-Frank Act’s risk-retention rule.Industry participants broadly cheered the proposal, laid out as part of a sweeping report from Treasury Secretary Steve Mnuchin on Oct. 6. But they note the process could move gradually, as the changes require cooperation from agencies including the Comptroller of the Currency, FDIC,...



Landlord-Loan Program On the Drawing Board

Fri, 13 Oct 2017
Window Rock Capital is planning to securitize landlord loans.The Gilbert, Ariz., investment firm began writing the credits in August and expects to start bundling them into bond deals by mid-2018. It already has discussed the initiative with rating agencies and underwriters, including a group of warehouse lenders that already are helping to fund the accounts.Window Rock partner Ketan Parekh is overseeing the effort.The firm writes each of its...



OneMain Seen Boosting Deal Flow

Fri, 13 Oct 2017
Reports that OneMain Financial is up for sale have industry professionals buzzing about the implications for the lender’s securitization program.The early view: A sale likely would result in a substantial increase in OneMain’s output of bonds backed by auto loans and personal loans. At least that’s the talk among bankers and rating-agency analysts who are privy to the thinking of treasury officials at the Evansville, Ind.,...



Canadian Bank Eyes Non-QM Conduit

Fri, 13 Oct 2017
National Bank of Canada is giving serious thought to forming what would be the first bank-sponsored conduit for U.S. home loans that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards.The bank, working through its U.S. subsidiary, Credigy, has begun assessing origination volume of non-qualified mortgages and the market’s growth potential, sources said. It also has been meeting...



LendingHome Hits Fund-Raising Goal

Fri, 13 Oct 2017
LendingHome, which writes loans to “fix-and-flip” homebuyers, has raised $100 million of equity for its second fund.The San Francisco firm, via its LH Capital unit, received contributions from a few dozen asset managers and institutional investors for its LendingHome Opportunity Fund 2. The vehicle launched in July with a $100 million equity-raising goal. LH will boost the fund’s buying power via a $300 million credit...



Navient to Boost Earnest's Output

Fri, 13 Oct 2017
Online education lender Earnest is expected to become a more active issuer of asset-backed bonds as a unit of Navient.The companies agreed to a $155 million takeover on Oct. 4. While Earnest will continue to operate under its own brand, the combination promises to give it easier access to short-term funding — thus enabling it to write more loans that it could pool into securitizations.Indeed, Navient said it is suspending stock buybacks...



Borrower Downgrade Whacks CLOs

Fri, 13 Oct 2017
Asset quality worsened in July for collateralized loan obligations in Europe.Median holdings of loans rated “Caa1” or lower increased 16 bp to 1.12% for CLOs issued in the region after the credit crisis, according to an index maintained by Moody’s. The deals also experienced deterioration in their weighted average rating factor, a key indicator of borrower strength. Analyst Hemal Shah said the erosion was due to the July 18...



Investors Bemoan "Whale' Buyers

Fri, 13 Oct 2017
An unusually large batch of pre-credit-crisis mortgage bonds that changed hands last week left some investors grumbling.The bid list encompassed notes from 20 subprime-loan deals with a combined face value of $456 million. After months of tight secondary-market supply, the offering attracted a wide swath of investors, from the biggest institutional asset managers to small hedge fund shops.In the end, most of the bonds were snapped up on Oct. 5 by...



Subprime Auto Lender Retooling

Fri, 13 Oct 2017
A subprime auto lender that used to securitize accounts written to military personnel is seeking to reposition itself following a run-in with the Consumer Financial Protection Bureau.Security National Automotive Acceptance’s securitization program was derailed in 2015, when the CFPB fined it $3.3 million for illegal debt-collection practices. Security National denied the allegations, but was fined again by the agency this year, for $1.25...



More Erosion for Subprime Autos

Fri, 13 Oct 2017
Performance indicators continue to deteriorate among securitized pools of subprime auto loans.According to an index maintained by Fitch, subprime-loan delinquencies increased 22 bp to 5.1% during the month ended Sept. 15. Losses climbed 15 bp to an annualized 9.24% — a figure the agency sees topping 10% by yearend. The reasons: Performance remains weak among asset pools assembled by smaller issuers in 2015 and early 2016, while payments...



The Grapevine

Fri, 13 Oct 2017
The destination of former Seer Capital executive Michael Lamont has come to light. Lamont now manages a book of structured-product investments at London merchant-banking firm RiverRock European Capital. He had been co-chief investment officer at New York-based Seer, which he helped set up in 2008 along with several former colleagues from Deutsche Bank. Among them: founder Philip Weingord and co-chief investment officer Richard d’Albert....



The Grapevine

Fri, 13 Oct 2017
Dave Prescher has stepped down as president of subprime-auto lender Skopos Financial. Prescher had arrived in November 2016 with a mandate to improve the Irving, Texas, operation’s underwriting and servicing practices, and to reverse a slide in its origination volume. Prescher previously led the auto-lending division at California Republic Bank, a routine issuer of asset-backed bonds. Before that, he worked at ConsumerXpress Finance, Sixth...



The Grapevine

Fri, 13 Oct 2017
Societe Generale has added a member to its collateralized loan obligation structuring team. Bogomil Ivanov started in the bank’s New York office in late September, reporting to head CLO banker Harry Huang. Ivanov most recently was employed as a CLO-focused managing director at Seer Capital. He took that post upon Seer’s formation in 2008, moving to the firm along with several colleagues from Deutsche Bank. He left in...



The Grapevine

Fri, 13 Oct 2017
Libremax Capital has added a special-situations and distressed-debt specialist to its investment team. Alexander Brown arrived at the New York hedge fund operator in September from Credit Suisse, where he was employed since 2014, according to sister publication Hedge Fund Alert. Brown also has worked at Canaccord Genuity, Icon Investments and UBS. Libremax is led by Fred Brettschneider and Greg Lippmann. It has $2.5 billion under...



The Grapevine

Fri, 13 Oct 2017
Two more professionals have moved from CapitalSource to Credit Suisse. Andrew Koepke and Alan Leland arrived in Credit Suisse’s Chicago office this month, joining former CapitalSource colleague John Costello as part of a group that offers warehouse lines to buyers of marketplace-originated loans — including accounts earmarked for securitization. Koepke had been working at CapitalSource since 2013. It’s unclear how long Leland...



The Grapevine

Fri, 13 Oct 2017
SAS Institute has hired an employee with securitization experience. Samrah Kazmi joins the analytics-software company’s New York office from small-business lender OnDeck Capital, where she started earlier this year as a senior director on the credit operations team. She was at GE Capital before that. Her work history, which dates back to the early 1990s, also includes stops in the structured-finance groups at BNP Paribas and...



The Grapevine

Fri, 13 Oct 2017
Robert Clark, whose background includes a number of securitization-related posts, has taken a job in the New York office of small-business lender BFS Capital. It’s unclear if Clark’s new job entails any structured-finance activities at the Coral Gables, Fla., firm. He most recently worked since 2016 at Milepost Capital, and before that was at Bonwick Capital, Empirasign, Daiwa Securities, Ally Financial, Advisors Asset Management,...



The Grapevine

Fri, 13 Oct 2017
PeerIQ has a new head of research. Ashish Dole started last week at the New York analytics firm. Dole previously was a trader at hedge fund operator Metacapital Management, and before that was at Morgan Stanley.



Open-Market Growth Standing On Its Own

Fri, 06 Oct 2017
With structured-product issuance continuing to run strong, industry participants are viewing 2017 as a landmark year.The volume of new asset-backed bonds, collateralized loan obligations, residential mortgage securities and commercial mortgage paper sold worldwide in 2017 stood at $541.4 billion on Sept. 30. That marked a 23% increase from the year-earlier tally of $439.6 billion, according to Asset-Backed Alert’s ABS Database.It also keeps...



Demand Rebounds for Risk-Transfer Paper

Fri, 06 Oct 2017
Buyers of agency risk-transfer bonds are at least temporarily setting aside concerns about the damage that Hurricane Harvey and Hurricane Irma caused among the deals’ underlying homes.The securities’ values fell sharply after Harvey hit Texas in August and Irma struck Florida in September, with investors voicing fears of reduced cashflows from affected borrowers. But the paper currently is trading almost at pre-storm levels.Take a...



Trustees Build Cases Against Auto Lenders

Fri, 06 Oct 2017
Issuers of subprime auto-loan securities could soon face a string of lawsuits from their deals’ trustees.The actions would focus on instances in which the values or performance of loans securitized in recent years have deteriorated because originators didn’t adhere to stated standards. The first could come as soon as January.There’s no word on which trustees are pursuing the actions. The most active banks in the sector in recent...



"Fix-and-Flip' Deals Dwindling

Fri, 06 Oct 2017
Efforts to securitize “fix-and-flip” loans, which only a few months ago were being hailed as a promising new asset class, appear to be losing steam.Even as banks and asset managers continue to pour capital into the sector, securitization is receding as a long-term funding option. The main reason: Investor demand for the accounts, which carry coupons of 7-15%, is so strong that lenders are finding it more profitable to fund themselves...



US Bank Seeks Bigger Share of Europe

Fri, 06 Oct 2017
U.S. Bank is beefing up its structured-finance trust operations in Europe.The move, which includes adding up to 12 positions to offices in London and Dublin, is aimed at solidifying the bank’s already-formidable presence in the region.U.S. Bank’s hiring plans include adding relationship managers who would guide corporate-trust clients through the securitization process and analysts who would monitor and help manage cashflows....



Long-Dated Card Bonds Tighten

Fri, 06 Oct 2017
Demand for long-dated credit-card paper continues to intensify.In the past week or so, the values of card bonds with lives of 5-10 years have shot up in secondary-market trading. Yield-hungry investors have shown a particular appetite for fixed-rate securities with 10-year maturities.Ten-year senior paper from benchmark issuers including Citigroup was changing hands this week at 65 bp over swaps. That’s 11 bp tighter than where those bonds...



Personal-Loan Deals Keep Coming

Fri, 06 Oct 2017
Online personal-loan originators continue to flow into the securitization pipeline.Oportun Funding was in the market this week with a $200 million offering, with Goldman Sachs, Jefferies and Morgan Stanley serving as underwriters. Avant, Marlette Funding and Prosper Marketplace also are working to float deals in October and November.Oportun and Avant accumulate loans on their balance sheets prior to securitization. Marlette and Prosper follow a...



Payday for Palmer Square Investors

Fri, 06 Oct 2017
The equity investors in two collateralized loan obligations issued by Palmer Square Capital have been rewarded for their bets.Palmer Square completed the transactions in December 2015 and April 2016 with expectations of exercising call options on them after 18-24 months, an action it took during the first half of this year.Sources said the 2015 deal produced a cumulative return of 17.4% for its equity holders while the 2016 offering returned...



Commercial PACE Bonds Coming

Fri, 06 Oct 2017
Several more securitizations of loans written to commercial borrowers under the Property Assessed Clean Energy program are on the way.The offerings, as many as four in all, are expected to price by yearend. They would follow a privately placed transaction of $75 million that Greenworks Lending completed on Sept. 26 — the first-ever bond deal backed solely by commercial PACE loans.While it remains unclear which other lenders are planning to...



Auto Lender Entering Market

Fri, 06 Oct 2017
Subprime auto lender Veros Credit is preparing its first securitization.The deal, with a projected size of $200 million, is expected to hit the market in the coming weeks through a vehicle called Veros Auto Receivables Trust. Deutsche Bank will run the books, with either DBRS or Kroll likely to weigh in with ratings.Veros plans to tap a new majority-owned affiliate to retain a “horizontal” equity interest equal to 5% of its...



Hope Remains for Zohar Investors

Fri, 06 Oct 2017
The dismissal of fraud charges against Patriarch Partners founder Lynn Tilton isn’t a complete setback for investors that suffered losses from the firm’s collateralized loan obligations.At issue are accusations by the SEC that Patriarch had failed to mark down troubled accounts in the deals’ asset pools, thus enabling it to collect $200 million of ill-gotten fees. The agency was seeking to force the New York firm to disgorge...



The Grapevine

Fri, 06 Oct 2017
Equipment-leasing company De Lage Landen Financial has hired an executive to oversee the development of its securitization program, which is expected to launch next year. Matthew Goldenberg joined the Rabobank unit’s Philadelphia headquarters last month as a vice president. Goldenberg previously led the securitization efforts of Leaf Commercial Capital as that company’s treasurer, a role he took in 2003 after overseeing DVI...



The Grapevine

Fri, 06 Oct 2017
Ygrene Energy has hired a director for its capital markets team. Michael McCormick joined the Petaluma, Calif., company this week from Davidson Kempner Capital, where he was employed since 2013 as a structured-finance and private equity analyst. McCormick also has worked at Ambac, Bear Stearns and S&P. Ygrene issues bonds backed by Property Assessed Clean Energy loans (see article on Page 6). Its most recent deal, totaling $176 million,...



The Grapevine

Fri, 06 Oct 2017
Credit Suisse has hired a Chicago-based executive to offer warehouse lines to buyers of marketplace-originated loans — including those that would package the receivables into asset-backed bonds. John Costello had been working in a similar capacity at Pacific Western Bank unit CapitalSource, where he was employed since 2005. Word has it that some staffers may be following him to his new post, which would complement an effort in which Credit...



The Grapevine

Fri, 06 Oct 2017
Sales-and-trading specialist Joe Hornback has moved on from Mizuho. Hornback was stationed in the bank’s New York office as an executive director since September 2016, with a focus on collateralized loan obligations. He earlier spent time at Auriga Global, Barclays, Goldman Sachs and Lehman Brothers.



The Grapevine

Fri, 06 Oct 2017
SMBC Nikko Securities has hired a senior asset-backed securities specialist. Sang Han joined the bank’s New York office a few weeks ago from the syndicate desk at HSBC, where he started in 2006. He also has spent time at BNY Mellon and Prudential.



The Grapevine

Fri, 06 Oct 2017
Personal-loan originator Marlette Funding has hired a lawyer with securitization experience away from OneMain Financial. William Reynolds had joined Springleaf Financial in 2011 and remained on board as the company took over OneMain in 2015 and adopted its name. Reynolds has also worked at Bloomberg and law firm Stevens & Lee. His work at Marlette includes tasks related to the Wilmington, Del., company’s bond program, which has produced...



The Grapevine

Fri, 06 Oct 2017
Ally Bank’s structured-finance team has an opening for a Charlotte-based analyst whose responsibilities would include compiling asset reports and transaction summaries for its securitizations of auto loans, auto leases and dealer-floorplan credits. Ally is focusing on individuals with at least two years of experience. Candidates can apply at ally.com by clicking on “about us” and then...



The Grapevine

Fri, 06 Oct 2017
Mortgage-bond analyst Justin Mazzamaro has left the New York office of Moody’s to take a securitization-related post as an associate at Citizens Bank. Mazzamaro joined Moody’s in 2015 from Ambac, and before that spent time at Chimera Securities.



The Grapevine

Fri, 06 Oct 2017
General counsel Shawn Singh has left DW Partners, a hedge fund firm where he worked with teams investing in asset-backed securities, mortgage bonds and collateralized loan obligations. His destination: Luminus Management, a New York fund operator that trades instruments tied to energy companies. Singh joined DW in 2011. He previously spent time at Calypso Capital, Cheyne Capital, Guggenheim, Fried Frank and Dewey &...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Willkie FarrContact: David Katz202-303-1149Tom French212-728-8124Maintains focus on representing underwriters of bonds backed by subprime auto loans, including those working with Consumer Portfolio Services, and banks that manage personal-loan deals for Social Finance and others. Also advises on commercial-paper conduit programs and warehouse lines, along with purchases and sales of distressed asset-backed securities.NOTE: Complete listing...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
White & CaseContact: David Thatch212-819-8342Representation of Guggenheim as underwriter of whole-business securitizations has added to typical flow of assignments in CLO sector, where the firm recently has won several choice assignments. U.S. practice is split between New York and Miami. In London, hired partner Chris McGarry and five associates from Ropes & Gray. Also has office in Singapore.NOTE: Complete listing appeared in September 29,...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Weil GotshalContact: Frank Nocco212-310-8918Automotive fleet-lease deals from Hertz and Enterprise top the list of issuer-counsel mandates, but remains active in CLOs as well. Has been working with underwriters of bonds backed by insurance premiums and personal loans.NOTE: Complete listing appeared in September 29, 2017, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Law...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
WalkersContact: Philip Paschalides345-814-4675Garry Ferguson353-470-6659Has been on a hiring jag over the past year, with two more staffers set to arrive in the coming weeks. Helping issuers of CLOs and other deals set up offshore vehicles in the Cayman Islands and Ireland, and parlays that work into representation on those shops’ securitizations. Aircraft finance is another specialty. Still growing from a 2015 push into directorship roles,...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Stroock & StroockContact: Richard Fried212-806-6047Group has been shrinking for several years with no plans to hire. But core team remains open for business, primarily seeking underwriter-counsel work on student-loan deals.NOTE: Complete listing appeared in September 29, 2017, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Law...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Stradley RononContact: David Joseph215-564-8090Kevin Kundra215-564-8183Focus on financial matters produces work with structured-product investors, including insurers taking part in privately placed deals. Helping mortgage originators set up shop in hopes they will securitize soon as well. Also waiting on mutual fund clients to get back into the CLO-issuing business.NOTE: Complete listing appeared in September 29, 2017, issue of Asset-Backed Alert...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Simpson ThacherContact: John Schueller212-455-3575Partner John Schueller took over for Laura Palma at the start of 2017. Most-visible work has been as advisor to underwriters of deals backed by cellular-tower and automotive fleet leases. Recently added rental-car offerings to its stable. Has gained some issuer-counsel work on CLOs as well. Other less-common assets also are in the mix.NOTE: Complete listing appeared in September 29, 2017, issue of...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Skadden ArpsContact: Richard Kadlick212-735-2716Issuer-counsel mandates on J.P. Morgan’s credit-card deals continue to headline the practice’s presence, complemented by subprime auto-loan offerings from Credit Acceptance Corp. Underwriter-counsel assignments include work on card deals from Bank of America and Capital One. Also targeting whole-business transactions, CLOs and drug-royalty offerings.NOTE: Complete listing appeared in...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Sidley AustinContact: Edward Fine212-839-5395R.J. Carlson212-839-6730Always near the top of both the issuer- and underwriter-counsel rankings. Biggest assignments as an issuer counsel this year have included an auto-lease deal from Mercedes-Benz, two mortgage offerings from J.P. Morgan and a personal-loan transaction from Springleaf Financial. Also landed underwriter-counsel mandates in most major asset classes, and several less-active ones.NOTE:...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Shearman & SterlingContact: Bjorn Bjerke212-848-7395Issuer-counsel contracts on agency risk-transfer deals from Freddie Mac have become mainstays. Remains active in equipment leases and other less-common asset classes, along with CLOs and commercial-paper conduits.NOTE: Complete listing appeared in September 29, 2017, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Law...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Seward & KisselContact: Greg Cioffi212-574-1439Business picked up this year as CLO issuers including Canaras Capital and Halcyon Capital engaged the firm to help them set up risk-retention vehicles. That work in part reflects Seward’s status as a leader in arranging retention financing from insurers via majority-owned affiliates. Also concentrates on commercial-paper conduits, where it overhauled a facility for AT&T, and is among firms that...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Schulte RothContact: Paul Watterson212-756-2563Boris Ziser212-756-2140Has added a few associates. Busy advising issuers of CLOs and less-common deals, including those backed by life settlements. Many of its assignments involve privately placed transactions, where its reach extends to asset classes including personal loans, lottery receivables and merchant cash advances, among others.NOTE: Complete listing appeared in September 29, 2017, issue of...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Pillsbury WinthropContact: Mark Lessard212-858-1564Practice has stabilized following a staff exodus in 2015, with partner Mark Lessard maintaining a focus on aircraft-lease deals. Represented underwriters of a Willis Lease offering this year, for example. Also pursuing work involving railcar leases, drug royalties and utility fees. Lured Daniel Budofsky away from Davis Polk in December after adding San Francisco-based partner Vanessa Gage.NOTE:...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Paul WeissContact: Jordan Yarett212-373-3126Benefitting from a pickup in whole-business deals, with assignments this year from Coinstar, Focus Brands, Jimmy John’s and TGI Fridays. Also worked on a cellular-tower deal this year for SBA Communications, and has been helping to arrange financing for Property Assessed Clean Energy lenders. Represents the occasional CLO issuer as well.NOTE: Complete listing appeared in September 29, 2017, issue...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Paul HastingsContact: Scott Faga202-551-1935Eugene Ferrer212-318-6048Sits atop the league table for firms representing CLO underwriters, thanks to the 2015 recruitment of a team from Ashurst. Within that unit, Nicole Skalla was promoted to partner this year. London team also expanded last year, and is working alongside U.S. counterparts. Practice includes a mortgage-focused team in New York, led by John Cahill, that works on warehouse facilities...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Orrick HerringtonContact: Al Sawyers212-506-5041Alan Knoll212-506-5077As issuer counsel, work includes mortgage bonds from Redwood Trust, personal-loan offerings from Oportun and credit card-transactions from American Express and Barclays. As underwriter counsel, major sources of business include AmEx card deals and auto-loan and lease securitizations from Nissan. Also fields business involving CLOs and securitizations of aircraft leases and tax...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Norton RoseContact: Patrick Dolan212-318-3399Andrew Coronios212-408-5506Attempting a push into U.S. structured products this year with the hiring of former Dechert co-head Patrick Dolan. A merger with Chadbourne & Parke, meanwhile, brought aboard partner Andrew Coronios, who has advised SolarCity on securitization and other matters. The combined practice is pursuing assignments from Property Assessed Clean Energy lenders. Added Elana Hahn in...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Morgan LewisContact: Reed Auerbach212-309-6200Jeffrey Johnson202-739-5645John Arnholz202-739-5705Routine contender for market-leader status as issuer and underwriter counsel in the U.S. Lately has been building a European practice in London. Issuer-counsel work in the States includes auto-loan deals from BMW and Toyota, student-loan offerings from Navient, and mortgage-related transactions from CarVal Investors, Cerberus Capital, Galton Capital...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Milbank TweedContact: Jay Grushkin212-530-5346Collateralized loan obligations account for bulk of the firm’s securitization work, with a strong representation of both underwriters and managers. New York office tends to focus on underwriters, with staffers in Los Angeles and London working with issuers. Deborah Festa oversees the Los Angeles operation. When advising on securitizations other than CLOs, the emphasis is on uncommon...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Locke LordContact: Keith Krasney212-415-8507Small practice specializes in securitizations of insurance- and energy-related receivables, including solar-panel cashflows. Works on small-business loan transactions as well. Also represents trustees.NOTE: Complete listing appeared in September 29, 2017, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Law...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Mayer BrownContact: Stuart Litwin312-701-7373Jon Van Gorp312-701-7091Routinely among the leading counsel to both issuers and underwriters. Among issuers, clients include prime auto lenders Fifth Third Bank, Honda, Hyundai, Nissan and USAA, along with subprime specialists Flagship Credit Acceptance and Santander Consumer USA. Also works with several major credit-card lenders, including Discover and World Financial Network, along with players in...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Latham & WatkinsContact: Kevin Fingeret212-906-1237Focuses on out-of-the mainstream asset classes, where notable assignments have included underwriter-counsel duties on securitizations of cellular-tower and automotive fleet leases. Also seeks business on deals backed by railcar leases and whole-business cashflows, among other assets. Is active in representing CLO issuers, where clients this year have included DoubleLine Capital and LCM Asset...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Kramer LevinContact: Gilbert Liu212-715-9460Practice emphasizes securitizations of Property Assessed Clean Energy loans and leases. As issuer counsel, represents Renovate America. As underwriter counsel, works on deals from Renovate America and Renew Financial. Also handles deals backed by other types of renewable-energy cashflows, along with CLOs and offerings underpinned by personal loans and timeshare loans, among other assets.NOTE: Complete...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Kirkland & EllisContact: Kenneth Morrison312-862-2347Prominent issuer counsel’s league-table position leans heavily on auto-loan deals from Ally Bank, CarMax, NextGear Capital and World Omni Financial. Equipment-loan deals from John Deere also offer repeat business. Less active as an underwriter counsel, where assignments have included floorplan-loan transactions from Ford and equipment-loan offerings from Kubota Credit.NOTE: Complete...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
King & SpaldingContact: Terry Novetsky212-556-2328Michael Urschel212-556-2285Underwriter-counsel assignments on whole-business transactions have been the main source of business for the practice, with recent assignments on deals for Cajun Global, Focus Brands, Jimmy John’s and TGI Fridays. Also represented Five Guys as issuer counsel, and has advised both issuers and underwriters of cellular-tower lease bonds. Practice launched in...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Katten MuchinContact: Anna-Liza Harris202-625-3635Howie Schickler212-940-6391Ranks among the busiest firms representing issuers. Client list includes Ford and General Motors in the prime auto-loan sector, along with Fannie Mae in the risk-transfer sector. Asset mix also encompasses deals backed by subprime auto loans, equipment leases, subprime mortgages and timeshare loans. Underwriter-counsel assignments recently have come on a mix of auto,...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Hunton & WilliamsContact: Mike Nedzbala704-378-4703Tom Hiner212-309-1302Rising to prominence in the underwriter-counsel league table mainly by winning assignments on mortgage-related offerings, including those backed by prime, subprime and nonperforming loans. Also active in risk-transfer deals. As issuer counsel, clients include subprime mortgage lender Caliber Home Loans and small-business lender Velocity Commercial Capital. Added partner John...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Hogan LovellsContact: Emil Arca212-918-3009U.S. team has ambitions of working in most asset classes, both for issuers and underwriters. That includes a mix of deals from Latin America. In the States, work includes representation on deals backed by marketplace-originated personal loans, cellular-tower receivables and billboard revenues. Also has helped T-Mobile set up a conduit program. Headcount excludes London team that has dealt in auto-loan...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Greenberg TraurigContact: Mark Michigan212-801-9200Tends to favor issuer-counsel assignments over those from underwriters. Active in broadly offered deals backed by equipment leases and timeshare loans. Aircraft financing another specialty, as well as deals in Latin America.NOTE: Complete listing appeared in September 29, 2017, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under “Law...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
DLA PiperContact: Richard Reilly212-335-4910U.S. work remains divided between New York team with a focus on CLOs and a Boston group that works on deals backed by marketplace-originated personal loans and other uncommon assets. That unit recently lost partner Ron Borod, who set up a consulting firm, but has added a few senior associates. Drawing on a long-running relationship with Goldman Sachs, designed repurchase program for CLO risk-retention...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
DentonsContact: Stephen Kudenholdt212-768-6847U.S. efforts emphasize helping issuers comply with the Dodd-Frank Act’s risk-retention rule, along with the Structured Finance Industry Group’s development of a deal-agent role for mortgage bonds. Partner Stephen Kudenholdt is co-chairman of SFIG’s residential mortgage committee. Gets a boost in the States from nonperforming-mortgage transactions, where clients include Caliber Home...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Cravath SwaineContact: Joel Herold212-474-1350Focuses on underwriter-counsel work for Citibank’s credit-card offerings, while also advising the bank’s in-house issuer counsel. Has been lining up work from underwriters of drug-royalty and cellular-tower lease deals as well.NOTE: Complete listing appeared in September 29, 2017, issue of Asset-Backed Alert and can be found on ABAlert.com, in the “Rankings” section under...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
DechertContact: Malcolm Dorris212-698-3519Departure of co-head Patrick Dolan this year hasn’t slowed the practice. Remains on top of the list of firms representing CLO issuers, and picks up occasional CLO underwriter assignments. Also represents issuers and underwriters of asset-backed bonds, with focus on subprime auto-loan deals. Has openings for lawyers on that side of the business.NOTE: Complete listing appeared in September 29, 2017,...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Clifford ChanceContact: Steven Kolyer212-878-8473Robert Villani212-878-8214Much of the firm’s business lately has entailed issuer-counsel assignments on CLOs and nonperforming-mortgage deals. Also represents CLO underwriters, and has been helping to establish risk-retention vehicles in that sector. Has found work from personal lenders and aircraft lessors in the U.S., while customizing some offerings in Latin America. London team is active...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Cleary GottliebContact: Joyce McCarty202-974-1574Paul St. Lawrence202-974-1782Emphasizes CLO underwriter assignments, with a client list that includes Bank of America, Citigroup, Credit Suisse and Goldman Sachs. Another major focus is re-Remics. Also has been advising BofA in its role as underwriter of CDOs backed by trust-preferred shares from banks.NOTE: Complete listing appeared in September 29, 2017, issue of Asset-Backed Alert and can be...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Chapman and CutlerContact: Walt Begley312-845-3904Lifted much of Ashurst’s CLO practice this year with the hiring of numerous partners and associates. Biggest source of issuer-counsel work remains credit-card deals from Bank of America and Capital One. Other clients include Sallie Mae Bank, personal lender Avant and solar-panel company Mosaic. As underwriter counsel, works on deals backed by cards and personal loans.NOTE: Complete listing...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Cadwalader WickershamContact: Michael Gambro212-504-6825Stuart Goldstein704-348-5258Hiring spree in 2016 saw the firm start representing Freddie Mac on risk-transfer deals, complementing its presence as a CLO issuer counsel. Underwriter-counsel assignments also include CLOs, along with deals involving student loans, catastrophic risk, personal loans, insurance-premium loans and renewable-energy assets. Maintains a large presence in Europe.NOTE:...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Arnold & PorterContact: Henry Morriello212-836-7170Securitization practice from Kaye Scholer remains intact following January merger with that firm. That team benefits from Arnold’s work on personal-loan regulations. Focus remains on financing for mortgages, CLOs, personal loans and railcar receivables.NOTE: Complete listing appeared in September 29, 2017, issue of Asset-Backed Alert and can be found on ABAlert.com, in the...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Alston & BirdContact: Aimee Cummo212-210-9428Busiest with representation of warehouse lenders and trustees, while remaining less active when it comes to issuer- or underwriter-counsel work. But has appeared on several nonperforming-mortgage deals including assignments from underwriters of New Penn Financial issues. Also advising Consumer Portfolio Services on subprime auto-loan issues. Other areas of emphasis lately have included funding for...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Allen & OveryContact: John Hwang212-610-6395David Krischer212-610-6350Just hired partner Larry Berkovich and four associates from now-dormant CLO practice at Ashurst. Issuer-focused practice often pursues assignments on deals backed by trade receivables, equipment cashflows and aircraft leases. Has picked up more CLO work, and already is a leader in representing Canadian banks that sell SEC-registered covered bonds. Also advises Canadian banks,...



LISTING: Securitization Law Firms

Sat, 30 Sep 2017
Winston & StrawnContact: M. David Galainena312-558-7442Jeffrey Stern212-294-6710Added Prosper Marketplace to list of issuer-counsel clients, which also includes Property Assessed Clean Energy lenders Renew Financial and Renovate America. But CLOs remain the center of firm’s practice as issuer and underwriter counsel. Also known for working with underwriters of bonds backed by PACE loans, auto leases and equipment leases.NOTE: Complete...



Conduits Consider Mortgage Warehousing

Fri, 29 Sep 2017
Banks are batting around the idea of offering financing for U.S. mortgages through commercial-paper conduits.The talks, still in the informal stages, appear to be most prevalent at foreign-run institutions including Barclays and BNP Paribas. A few banks in the States have run the concept by issuers and investors as well.Sources said it could be months before any of the operations moves ahead, pointing to difficulties in winning approval from...



Hedge Funds Re-Engage With CLO Issuers

Fri, 29 Sep 2017
Hedge fund operators suddenly are bidding on collateralized loan obligations.The firms mainly are eyeing the offerings as short-term plays, with some buying pieces of new deals with the intention of selling them quickly and others taking part in refinancings that mature in two years or less. A number also are picking up securities on the secondary market.Others are looking for opportunities to lock in returns for longer periods.Hedge fund...



EverBank Revives MBS-Issuing Discussions

Fri, 29 Sep 2017
EverBank is back on the list of prospective mortgage-bond issuers.Word is circulating from bankers and rating analysts that the Jacksonville lender recently signaled plans to routinely offer bonds backed by jumbo home loans, including those that don’t meet the Consumer Financial Protection Bureau’s “qualified-mortgage” standards.EverBank completed two mortgage-bond transactions totaling $610.7 million in 2013, but then...



Dividend Readies Debut Solar Deal

Fri, 29 Sep 2017
Dividend Solar is in the market with its first securitization of solar-power equipment loans.The San Francisco lender is aiming to issue $128.9 million of bonds, with Credit Suisse running the books. The deal size is in line with debut offerings from other residential solar-equipment lenders including Mosaic and Spruce Finance.Dividend’s transaction is expected to price in the next few weeks. It would be the fourth securitization of...



Liberty Mutual Bullish on CLOs

Fri, 29 Sep 2017
Liberty Mutual plans to increase its investments in collateralized loan obligations.The Boston insurer aims to at least double its holdings of CLOs in the next six months or so, sources said.Liberty doesn’t break out collateralized loan obligations as a distinct asset class on its balance sheet, instead lumping them in with its asset-backed securities portfolio — a category that also includes bonds backed by auto loans and credit-card...



Education Lender Maps Program

Fri, 29 Sep 2017
An online education lender is pursuing securitization as a funding source.The Washington operation, MPower Financing, hopes to bring a deal to market next year. It plans to start talking to rating agencies soon.As part of the preparations, MPower is in talks to secure a $100 million warehouse line. The suppliers of the additional financing presumably would be candidates to underwrite the company’s bonds.MPower launched in 2015 with a focus...



Investors Pursue China Offerings

Fri, 29 Sep 2017
Investors in the U.S. and Europe are taking a harder look at asset-backed bonds from China.The interest stems from the July launch of a wide-ranging project called Bond Connect that initially aims to facilitate investments across China’s interbank bond market by foreign institutions. Structured-product buyers have been inquiring about the channel since it opened.More recently, some of those shops have initiated due-diligence reviews. Most...



New Wrinkle in Agency Initiative

Fri, 29 Sep 2017
The Federal Housing Finance Agency has uncovered yet another issue that could further delay implementation of its Common Securitization Platform.Sources said FHFA officials discovered earlier this year that thousands of investment-management contracts will have to be amended before buysiders can begin participating in mortgage-bond deals Fannie Mae and Freddie Mac plan to issue under the initiative. Specifically, those contracts will have to be...



AerGen Transaction on Runway

Fri, 29 Sep 2017
AerGen Leasing is readying its next securitization of aircraft leases.The deal, with an anticipated face value of about $300 million, is expected to hit the market in the next month or two with ratings from Kroll. Deutsche Bank or Goldman Sachs, or perhaps both, are likely to underwrite the offering, since they ran the books on AerGen’s only previous asset-backed bond offering. That transaction, which priced in June 2016, amounted to $324.7...



Leading Law Firms In US Securitization Industry

Fri, 29 Sep 2017
The accompanying listing offers a rundown of the most active law firms in the U.S. securitization business.In most cases, the practices mentioned are the ones that claim top standings in Asset-Backed Alert’s league tables for issuer and underwriter counsel on asset- and mortgage-backed bond deals distributed in the States. Work on collateralized loan obligations also is included.However, some firms are included based on transactions that...



The Grapevine

Fri, 29 Sep 2017
Citigroup’s year-to-date bookrunning volume has surpassed its total for all of 2016. Retaining a position it claimed at midyear, the bank heads into the fourth quarter as the top bookrunner for asset-backed securities, residential mortgage bonds, commercial mortgage paper and collateralized loan obligations worldwide with some $65 billion of deals, according to preliminary figures from Asset-Backed Alert’s ABS Database. In 2016, Citi...



The Grapevine

Fri, 29 Sep 2017
Citizens Bank has hired longtime market professional Erik Priede as a managing director on a Stamford, Conn., team that offers warehouse financing to non-mortgage lenders that plan to use securitization as a long-term funding source. Priede most recently spent about a year at a operation called Amber 1. From 2004-2015, he worked as a founding member of the asset-backed bond underwriting team at RBS — Citizens’ one-time parent. He also...



The Grapevine

Fri, 29 Sep 2017
Three more collateralized loan obligation lawyers have jumped from Ashurst to Chapman and Cutler. Scott Pierpont, the last partner on Ashurst’s CLO team, made the move to Chapman’s New York office this week. Pierpont had joined Ashurst in 2015 from Jones Day. His switch coincided with whose of Mitch Naumoff and John Ketcham, both associates in Ashurst’s Washington office. Naumoff also joined Ashurst in 2015 from Jones Day. He is...



The Grapevine

Fri, 29 Sep 2017
Shumin Li has signed on with asset manager Hony Capital as head of securitization. While his exact duties are unknown, Li’s title suggests he might be involved in a recently launched effort by Hony to issue personal-loan bonds. He’ll start in the firm’s Beijing headquarters in October. Li had been chief strategist for Mizuho’s securitized-product desk since 2012. His former employers also include the Federal Reserve Bank of New York, UBS,...



The Grapevine

Fri, 29 Sep 2017
Structured-product salesman Daniel Abraham will join KeyBank’s New York office on Oct. 2. Abraham was most recently a managing director at Cantor Fitzgerald, which he joined in 2011 from Guggenheim. He also has worked at Washington Mutual and Wells Fargo.



The Grapevine

Fri, 29 Sep 2017
J.P. Morgan has hired a collateralized loan obligation structuring specialist. Chaka Wade started in the bank’s New York office today. He had been working at Lehman Brothers Holdings since 2010, helping to unwind positions in mortgage bonds and derivatives. He previously spent time at Black Swan Consulting, Citigroup, Natixis and State Street.



The Grapevine

Fri, 29 Sep 2017
Lilia Dobreva is headed back to Morgan Stanley. Since 2015, Dobreva has worked as a senior analyst in the capital-markets group of Eaglewood Capital — a role in which she was involved in the New York firm’s securitizations of marketplace-originated personal loans. She was on Morgan Stanley’s structured-finance team before that.



The Grapevine

Fri, 29 Sep 2017
Personal-loan originator Affirm has hired a head of strategy and risk management. Sandeep Bhandari arrives from Lending Club, where he had been chief credit officer since 2015. He also has worked at Capital One and Arthur Andersen. Affirm writes loans to individuals seeking to finance online purchases. It currently is funding the accounts through a line of credit from Morgan Stanley, with an eye toward...



Wells Returns to Mortgage-Bond Pipeline

Fri, 22 Sep 2017
Wells Fargo is preparing its first broadly distributed securitization of newly originated mortgages since 2008.The offering, with an estimated size of $1 billion, is expected to hit the market during the fourth quarter. The bonds likely would be rated by Fitch, alongside either Moody’s or S&P.More transactions would follow.Once a prolific issuer of private-label mortgage paper, Wells joined many of its peers in exiting the market in the...



Koch Family Office Readies Buying Program

Fri, 22 Sep 2017
The Koch brothers are plowing some of their personal fortunes into asset-backed securities.The investments are expected to start by yearend via 1888 Management, a Koch Industries arm that launched in 2015 to invest on behalf of Charles and David Koch. Word is circulating that the portfolio could start at $100 million and grow from there.Sources said the investments would consist mainly of senior bonds backed by auto loans, credit-card receivables...



Cantor Pulls Off Coup on Credit Suisse Desk

Fri, 22 Sep 2017
Cantor Fitzgerald has lured a group of high-profile traders away from Credit Suisse.Jim Buccola, Marshall Insley, Christian Wall and Michael Collins are expected to wait out a brief gardening leave before starting their new jobs, which could point to the eventual development of a major structured-finance business at Cantor.As Credit Suisse’s head of securitized-product trading, Buccola represents the biggest catch. He joined the bank in...



Conditions Favor CLO Supply

Fri, 22 Sep 2017
Collateralized loan obligation issuers and dealers are gearing up for a busy fourth quarter.The bullish outlook reflects several factors, including tight spreads and an improved outlook for the supply of leveraged loans. With 136 CLOs totaling $75 billion having priced year-to-date in the U.S., new issuance is on track to surpass $100 billion by yearend.Since the 2008 market crash, annual deal volume exceeded $100 billion only in 2014, when...



Greywolf Back in Issuing Mode

Fri, 22 Sep 2017
Greywolf Capital is returning to the collateralized loan obligation market.The Purchase, N.Y., firm is aiming for late this year to issue new bonds in place of an existing transaction, thus resetting its investment period while locking in today’s tighter spreads. J.P. Morgan is arranging the exchange.The next step would be to complete an entirely new deal.Greywolf last issued a CLO in March 2015, placing $658.9 million of securities with...



Banks Seek Consensus on "ABS East'

Fri, 22 Sep 2017
Information Management Network’s “ABS East” conference could be at a crossroads.Upon returning from this year’s event, held at the Fontainebleau hotel in Miami Beach on Sept. 17-19, a swath of industry participants relayed plans to discuss whether they might skip future editions. Some also said they would talk about the possibility of moving the annual gathering to a new city or a different time of year.The conversations...



Card-Bond Deals Tilt to Subprime

Fri, 22 Sep 2017
Look for issuers of credit-card securitizations to increase the proportions of subprime accounts underpinning their transactions.The overall volume of subprime card accounts has increased in recent years amid a gradual loosening of underwriting standards. Indeed, a Sept. 12 report from S&P said credit-card lenders had expanded their rosters of subprime borrowers for 25 consecutive quarters through the first quarter of this year. Now that most of...



Bond Buyers Stick With SoFi

Fri, 22 Sep 2017
The forced exit of Social Finance founder Mike Cagney isn’t dampening investor enthusiasm for the company’s asset-backed bonds.Cagney said on Sept. 15 that he would step down as chief executive in response to reports that he sexually harassed employees. The same day, SoFi completed its fifth personal-loan securitization of the year.The deal’s various classes priced 10-15 bp wider than the levels initially suggested by...



Investors Gain in Case Against BNY

Fri, 22 Sep 2017
A federal court ruling bodes well for investors suing trustees over their handling of mortgage-backed securities during the financial crisis.On Sept. 7, U.S. District Court Judge Valerie Caproni in New York declined to dismiss an investor lawsuit against BNY Mellon. While the judge granted a motion from the bank for summary judgment to throw out portions of the complaint, she held there was sufficient evidence in other areas to justify a...



Software Maker in Hiring Mode

Fri, 22 Sep 2017
Software company eOriginal, whose programs are used to secure electronically signed loan documents for securitization purposes, is staffing up to meet increasing demand from online lenders.The Baltimore company, flush from a recent infusion of private equity capital, kicked off the hiring campaign this week when it brought on Timothy Wall in the role of chief revenue officer. Wall previously worked since 2014 as a vice president at...



Data Specialist Enhances Offering

Fri, 22 Sep 2017
Drawing on its work as a data agent, DV01 has upgraded an analytics tool that it offers to buyers of bonds backed by marketplace-originated personal loans.The latest addition is a so-called cashflow model that allows investors to see how payments are distributed across each deal’s capital structure under various scenarios. They also can track actual and projected variables including loan losses and yields.The New York firm began reaching...



The Grapevine

Fri, 22 Sep 2017
Structured-product sales-and-trading specialist Michael Kasper joined Guggenheim’s New York office in August as a managing director. Kasper most recently held the same title at Nomura from June 2016 to June 2017, preceded by stints at Jefferies, J.P. Morgan and Bear Stearns. His arrival at Guggenheim comes as the firm has been adding a number of personnel to its securitization...



The Grapevine

Fri, 22 Sep 2017
Pat Lynch, formerly a marketing manager in Deutsche Bank’s corporate-trust division, landed in the New York office of Wilmington Trust this month. Lynch’s new role is similar to the one he played at Deutsche, where he handled marketing for a host of businesses including structured-product trust services. He worked at Deutsche until March, having joined the bank via its 1999 takeover of Bankers Trust — where he started in 1991.CORRECTION...



The Grapevine

Fri, 22 Sep 2017
Chief investment officer Brian Colgan has left collateralized loan obligation issuer MJX Asset Management. Colgan’s plans couldn’t be learned. He arrived at the New York operation in 2007 from the now-defunct Brightwater Capital. Earlier, he spent time at Commerzbank, NatWest and Brown Brothers Harriman. MJX started issuing in 2002 and since then has completed 32 deals totaling $16.3 billion, according to Asset-Backed Alert’s...



The Grapevine

Fri, 22 Sep 2017
Fitch has added three members to its collateralized loan obligation rating team. Director Harold Cornwall and associate directors Peter Connolly and Matthew Knight started in the agency’s New York office this week. Cornwall most recently worked from 2007 to 2015 at Societe Generale, with a focus on managing exposures to securities that lost value during the credit crisis. He also has worked at CIFG and Wachovia. Connolly arrives from Prime...



The Grapevine

Fri, 22 Sep 2017
Goldman Sachs is adding a member to its asset-backed securities origination team in London. William O’Brien had been employed at Natixis since 2015, following stops at Nomura and Commerzbank. His arrival would follow the July hiring of structuring specialist Yoann Bredillot, also from Natixis.



The Grapevine

Fri, 22 Sep 2017
Trader Barry Mohr joined Philadelphia broker-dealer REVL Capital on Sept. 5 as a managing director focused on structured products, including deals backed by Property Assessed Clean Energy loans. Mohr most recently worked at George K. Baum & Co. from April 2016 to December 2016, and before that helped start a lead a retailer-service venture called MallHawk. He also has worked at Guggenheim, Pierpont Securities, Cohen & Co. and Keefe, Bruyette &...



The Grapevine

Fri, 22 Sep 2017
Startup personal-loan originator Upgrade has added a vice president to a team that sells its accounts to investors, including those that would feed the receivables back into a securitization program the Palo Alto, Calif., firm is planning. The recruit, Soyoon Sung, had been working in a similar capacity at Lending Club since 2014 and before that spent time at Morgan Stanley and Barclays. Upgrade is led by Lending Club founder Renaud...



The Grapevine

Fri, 22 Sep 2017
Social Finance has added a business-development specialist to its mortgage-lending unit, which funds itself partly through securitization. Steven Parks covers the Midwest from the company’s Dallas office. He had been employed at LoanDepot since 2015.



ABS East In the Clear After Storm Threat

Fri, 15 Sep 2017
Information Management Network’s “ABS East” conference is going on as scheduled, after being thrown into doubt by Hurricane Irma.Last week, it seemed possible that a direct hit on Miami Beach would force cancellation of the event, set for Sept. 17-19 at the Fontainebleau hotel. And even after the storm largely spared the city, industry participants were expressing reservations about continuing.Their concern, in part, was that it...



MetLife Set to Securitize Reperforming Loans

Fri, 15 Sep 2017
MetLife is launching a program through which it would securitize billions of dollars of reperforming mortgages.The New York insurer is expected to float a debut offering of about $500 million in the next month or so. From there, it plans to develop an issuance routine that could supply roughly $1 billion of paper per year.The company has been in touch with several banks about possible bookrunner roles, including Bank of America, Credit Suisse and...



Redwood, Fitch Back On Speaking Terms

Fri, 15 Sep 2017
Redwood Trust and Fitch are patching up their relationship.Redwood commissioned Fitch’s ratings for every one of its jumbo-mortgage bond issues from 2011 to February 2015 — a run encompassing 25 deals totaling $9.9 billion. But the assignments stopped there, as the operations butted heads over a change in the cashflows for subsequent offerings.Indeed, for the 12 mortgage-bond transactions totaling $4.3 billion that Redwood has...



Secondary Trading Springs to Life

Fri, 15 Sep 2017
Secondary-market trading of asset-backed securities, mortgage bonds and collateralized loan obligations kicked into high gear this week as investors sought to take profits.Consider that $3.5 billion of investment-grade asset-backed bonds changed hands during the first three days of the week, according to Finra’s Trade Reporting and Compliance Engine. Compare that to $1.4 billion for the four days the market was open during Labor Day week,...



Small-Business Lender Shuts Doors

Fri, 15 Sep 2017
Marketplace lender Bond Street, whose small-business loans have served as securitization collateral, is calling it quits.Sources said the New York operation would close its doors in the coming days, after running out of cash. Many members of its 34-person staff already have left, with many going to Goldman Sachs lending unit Marcus or the small-business finance arm of Square.Bond Street got started in 2015, with Jefferies initially pledging to...



College Avenue Sets Annual Pace

Fri, 15 Sep 2017
Marketplace education lender College Avenue sees itself sponsoring an asset-backed bond deal each year.Word of the Wilmington, Del., company’s expectations followed the July 11 pricing of its debut transaction. That $160.9 million issue was offered through a new shelf entity called College Avenue Student Loans, with Barclays running the books.College Avenue’s anticipated issuing pace reflects a cycle in which it taps warehouse lines...



Outlook Dims for Harley Offering

Fri, 15 Sep 2017
Investors are losing hope that Harley-Davidson will issue asset-backed bonds this year.While it has been well known for some time that a decline in motorcycle sales was dampening Harley’s potential as an issuer, investors were expecting it to tap the market before long. Indeed, the Milwaukee company has completed at least one motorcycle-loan securitization per year since 1995 — and hasn’t reached out to say it might change that...



DBRS Tracks Auto-Loan Pools

Fri, 15 Sep 2017
DBRS is building a database of securitized auto loans.The product, dubbed Figures on Automotive Securitization Tapes, collects the loan-by-loan data that issuers began disclosing on Nov. 23 under the SEC’s Regulation AB update. The idea is to compare asset pools on a deal-by-deal basis and across all transactions.“It’s not easy for investors to work these tapes if they don’t have the resources or a complete...



Moore Pitching Debt Vehicle

Fri, 15 Sep 2017
Moore Capital is pushing to raise more money for a long-term debt fund it launched last year.Marketing documents circulated this month show the vehicle, Moore Asset Backed Fund, currently has about $70 million invested in a mix of consumer loans, small-business loans and private equity, plus another $70 million of undrawn commitments. Moore now aims to raise a total of $300 million to $500 million for the entity, which marks a departure from...



Losses Ding Subprime Auto Loans

Fri, 15 Sep 2017
Losses among securitized pools of subprime auto loans rose sharply during the month ended Aug. 15.According to an index maintained by Fitch, annualized losses jumped 168 bp to 9.09%, the highest level since February. More borrowers also fell behind on their monthly payments, with 60-day delinquencies increasing 21 bp to 4.88%. Fitch expects losses among subprime accounts to rise further in the coming months as a result of weak vehicle-resale...



Alarm Sounded Over Storm Damage

Fri, 15 Sep 2017
Data company TheNumber is warning that mortgage-bond investors’ estimated losses from Hurricane Harvey may be understated.The New York firm is basing that assertion on the idea that most calculations of damage to the deals’ underlying homes are drawn from zip codes, which can be imprecise, co-founder Hans Thomas said. In looking more closely at clients’ holdings, the firm has found potential losses that exceed competitors’...



Loan Defaults Rise for Aging CLOs

Fri, 15 Sep 2017
Asset quality deteriorated in June among collateralized loan obligations issued before the credit crisis.Among U.S. CLOs, the median amount of defaulted collateral in pre-crisis pools rose 198 bp to 10.76% during the period, while falling 6 bp to 0.12% for post-crisis transactions, according to an index maintained by Moody’s. In Europe, collateral defaults fell 23 bp to 1.08% for pre-crisis issues while holding at zero for post-crisis...



REGULATORY ROUNDUP

Fri, 15 Sep 2017
Trump Aligns Allies for Regulatory ReductionThe Trump Administration has outlined a hands-off approach to financial-market regulation, although it remains unclear when any changes might take effect.A June 12 report from the Treasury Department offered a sweeping view of the White House’s policy goals, with the Dodd-Frank Act in particular facing at least a partial rollback. The Consumer Financial Protection Bureau would see a reduction in...



REGULATORY ROUNDUP

Fri, 15 Sep 2017
Risk Retention — Fed, SEC, TreasuryDefying predictions of a slowdown, the supply of new structured products has seen little effect from the Dodd-Frank Act’s risk-retention rule. But the Trump Administration still is seeking a rollback of the measure as part of its broader push against financial-industry controls. The U.S. Treasury Department, for example, said in a June 12 report that it wants risk retention repealed or substantially...



REGULATORY ROUNDUP

Fri, 15 Sep 2017
Libor — UK GovernmentBankers, investors, lawyers, trade associations and regulators are huddling to discuss how the securitized-product industry might adapt to the elimination of Libor. The U.K. Financial Conduct Authority said on July 27 that it plans to phase out the popular benchmark by yearend 2021, although key details of that process remain undetermined. In the U.S., the Federal Reserve is considering the development of a new...



REGULATORY ROUNDUP

Fri, 15 Sep 2017
STS — European RegulatorsEuropean regulators are likely to soften a proposed ban on securitizations of mortgages to borrowers with “self-certified” incomes and employment. The measure appeared as a last-minute addition to a draft of Europe’s new regulatory framework for structured products that the European Commission, European Council and European Parliament released on May 30. While E.U. lenders already are barred from...



REGULATORY ROUNDUP

Fri, 15 Sep 2017
Capital Charges — BISThe Bank for International Settlements is eyeing October to bring regulators in the U.S. and Europe onto the same page when it comes to risk-weight floors for structured products. That figure, used in calculations of risk-based capital reserves, has received stricter treatment from U.S. regulators including the Federal Reserve than from their counterparts in Europe. At the same time, the Trump Administration has been...



REGULATORY ROUNDUP

Fri, 15 Sep 2017
Trade Reporting — FinraFinra continues to delay the release of trade-by-trade details for secondary-market sales of mortgage bonds and collateralized loan obligation notes via its Trade Reporting and Compliance Engine. Following repeated setbacks, the self-regulatory agency was expected to set an implementation date by the end of the first quarter. But it has kept mum, prompting expectations that a timeframe could surface in 2018. Finra...



REGULATORY ROUNDUP

Fri, 15 Sep 2017
Covered Bonds — CongressThe outlook for the development of a regulated covered-bond market in the U.S. was dealt a setback on July 12, when James Clinger withdrew from consideration to become chairman of the FDIC. Clinger was chief counsel for the House Financial Services Committee when it approved a bill in 2010 that would have created a framework for covered-bond sales. As such, he was seen as likely to lift the FDIC’s longstanding...



REGULATORY ROUNDUP

Fri, 15 Sep 2017
Common Securitization Platform — FHFADon’t look for agency mortgage bonds to start flowing from the Common Securitization Platform until 2019. The date marks the latest in a series of delays for the project, a joint venture between Fannie Mae and Freddie Mac that most recently was expected to begin producing deals in 2018. The most recent interruption: Fannie needs more time to implement new technology. Previous setbacks have included...



REGULATORY ROUNDUP

Fri, 15 Sep 2017
Mortgage Agencies — CongressDon’t look for the government to begin withdrawing support from Fannie Mae and Freddie Mac until 2018 at the earliest, despite signals from the Trump Administration that it would favor such a move. Indeed, Treasury Secretary Steve Mnuchin said in April that a housing-finance overhaul was necessary but that a timeline wouldn’t be set until other objectives such as tax reform are addressed. And Mnuchin...



REGULATORY ROUNDUP

Fri, 15 Sep 2017
CFPB — CongressThe Trump Administration continues to push Congress to rein in the authority of the Consumer Financial Protection Bureau. That goal already would be addressed by the Financial Choice Act, which passed the House on June 8. But there’s no word on the timing of a Senate version of the bill, which among other things would strip the CFPB of its role as a bank supervisor while giving the president the ability to select and...



REGULATORY ROUNDUP

Fri, 15 Sep 2017
Student Loans — Department of EducationEducation lenders are breathing easier after Secretary of Education Betsy DeVos this month rescinded a “memorandum of understanding” through which the Department of Education had been sharing key student-loan data with the Consumer Financial Protection Bureau. The thought is that without that information, the CFPB will be less able to pursue fraud or misconduct actions against originators,...



REGULATORY ROUNDUP

Fri, 15 Sep 2017
Marketplace Lending — CongressSeparate House and Senate bills could blunt the impact of usury laws on marketplace loans. The measures, introduced in July by Sen. Mark Warner (D-Va.) and Rep. Patrick McHenry (R-N.C.), would reinforce a provision in the National Bank Act under which bank-originated loans could be sold to non-bank institutions nationwide at their original interest rates, no matter how high. Such a step would address concerns...



PeerIQ Teams Up With TransUnion

Fri, 15 Sep 2017
Consumer-credit analytics shop PeerIQ is beefing up its flagship product with data from credit tracker TransUnion.Starting Sept. 15, clients of PeerIQ Analytics Platform, a portfolio-management tool used mainly by investors in personal loans and other consumer receivables, will be able to purchase a feature offering fresh views of consumer-credit trends via nearly 20 years of data aggregated by TransUnion. PeerIQ plans to begin marketing the new...



Risk Seen in Bank-Statement Loans

Fri, 15 Sep 2017
Fitch is advocating a cautious approach to securitizations of mortgages whose approvals were based on borrowers’ bank statements.In a Sept. 18 report, the agency notes that such accounts make up 20% of subprime home loans securitized in the U.S. And while their performance has been strong so far, it sees the receivables as carrying greater risk of defaults than mortgages with traditional income documentation — such as pay stubs and...



The Grapevine

Fri, 15 Sep 2017
Securitization-focused hedge fund manager LibreMax Capital installed a high-profile member on its investment team this week, bringing in David Moffitt as a managing director. The New York-based Moffitt previously headed asset management at J.C. Flowers & Co since 2014, and before that helped start investment firm Mead Park Management. He also spent time as head of Morgan Stanley’s securitization business, preceded by stops at...



The Grapevine

Fri, 15 Sep 2017
Enova International, an online originator of subprime personal loans, has hired an executive with securitization experience. Scott Cornelis joins the Chicago firm in a role that sources described as similar to the one he most recently held at rival BorrowersFirst, where he worked as head of capital markets since 2015. Cornelis previously worked on the asset-backed bond teams at J.P. Morgan and Bank One. Enova so far has completed a single...



The Grapevine

Fri, 15 Sep 2017
Salesman Rob Dubas joined J.P. Morgan’s New York office a few weeks ago, with a focus on structured credit products. Dubas most recently was employed at Hunt Financial, which he had just joined in April. He also has worked from Credit Suisse, Citigroup, MKP Capital and Deloitte.



The Grapevine

Fri, 15 Sep 2017
Katten Muchin has added a partner to its securitization practice in Washington. Claudine Chen-Young joined the law firm this month from Morgan Lewis, where she advised issuers and underwriters of an array of transactions — including deals backed by home loans and credit-card receivables.



The Grapevine

Fri, 15 Sep 2017
Fitch added a director to its New York office this week, assigning Cathy Oh to grade deals backed by auto loans and a mix of commercial assets under senior director Hylton Heard. Oh most recently worked since 2010 as part of Genworth Financial’s investment team. She also has spent time at the Financial Times, HSBC, Deutsche Bank, Credit Suisse and Duff &...



The Grapevine

Fri, 15 Sep 2017
Jefferies has added a member to its London sales desk, assigning him to cover mortgage bonds and other structured products. Hugo Chardon arrived this week from BNP Paribas, where he worked since 2014. Chardon also has spent time at Spartan Capital. His new assignment comes amid talk of an expansion in Jefferies’ trading capabilities in Europe.



The Grapevine

Fri, 15 Sep 2017
Fitch senior director Chris Bushart has moved to the agency’s relationship-management team from its commercial mortgage bond rating and surveillance unit, where he started in 2007. In his new role, Bushart handles investor relations and business development for asset-backed bonds, residential mortgage bonds and commercial mortgage bonds under managing director Zanda Lynn. Before joining Fitch, Bushart worked on the buy side at Brookfield...



The Grapevine

Fri, 15 Sep 2017
Sumitomo Mitsui Banking is seeking an analyst with experience in asset-backed securities and collateralized loan obligations. The New York-based recruit would advise clients on a mix of financing options, including securitization. Sumitomo is focusing on candidates with at least two years of experience.



The Grapevine

Fri, 15 Sep 2017
Electronic matchmaker DealVector has a new head of product development. Govind Sandhu had been employed since 2014 as a consultant in First Republic Bank’s wealth-management business. He also has worked at MyVest and SS&C Advent. At DealVector, he is working with the Sausalito, Calif., company’s clients and software engineers to add features to its Web-based service, which connects users with holders of various...



Hurricanes Take Toll on Risk-Transfer Bonds

Fri, 08 Sep 2017
Fearing losses from Hurricane Harvey and Hurricane Irma, investors are attempting to reduce their exposures to agency risk-transfer bonds.The concerns have been evident in the secondary market, as holders of Class B-1 and B-2 securities issued by Fannie Mae and Freddie Mac increasingly have sought bids for their positions in the past two weeks. The upshot has been a slide in values.The activity initially stemmed from reports of widespread...



Guggenheim Beefs Up Underwriting Unit

Fri, 08 Sep 2017
Guggenheim has added three senior executives to its asset-backed bond underwriting team.Anuj Bhartiya and Richard Onkey arrived this week as managing directors. Bhartiya is playing a key role on the New York firm’s origination desk, with a focus on deals backed by non-mainstream assets including whole-business cashflows. He reports to U.S. asset-backed bond underwriting chief Cory Wishengrad. Onkey is working on the syndicate desk.Also...



IMN Monitors Storm Ahead of Main Event

Fri, 08 Sep 2017
Information Management Network is eyeing Monday to let industry participants know if it still plans to hold its “ABS East” conference.Officials at the company were huddling this week to determine how they might proceed with the event in light of forecasts that Hurricane Irma will strike South Florida on Saturday. But they won’t decide until they have a better idea of the storm’s damage.At that point, IMN plans to post an...



Amazon's Holdings Keep Growing

Fri, 08 Sep 2017
Amazon.com is accelerating an expansion of its asset-backed bond holdings.Sources describe the Seattle online-retail giant as being on pace to add some $500 million of such investments during the second half of this year, bringing the portfolio to more than $1 billion. Indeed, industry participants recently have been abuzz over the company’s purchases on both the new-issue and secondary markets.Amazon started buying asset-backed securities...



E&Y Demonstrates Blockchain Tool

Fri, 08 Sep 2017
Ernst & Young is showing off how blockchain technology could be used in the origination and securitization of mortgages.Using an early-stage product called EY Mortgage Securitization, the accounting firm is demonstrating the technology’s capabilities to issuers, underwriters and investors. The idea is that those operations eventually could commission systems of their own.Ernst & Young is conducting the presentations at its Financial...



Life Seen for Railcar Bonds

Fri, 08 Sep 2017
An increase in coal production is raising hopes that railcar-lease securitizations could be poised for a comeback.That’s because most of the roughly 600 coal-burning power plants in the U.S. are served by rail deliveries. The thinking is that as those facilities become more active, the rail carriers working with them will need more cars.They include Union Pacific, which last was in the market in May 2016 with a $150.8 million transaction....



Cat-Bond Investors Sizing Up Irma

Fri, 08 Sep 2017
Holders of catastrophe bonds already are handicapping which issues would face the biggest losses in the event Hurricane Irma takes a heavy toll on Florida.This year alone, re-insurers have sold $10.6 billion of catastrophe bonds designed to offload some of the risk tied to named storms in Florida and elsewhere in the U.S., according to cat-bond data site Artemis. A major hurricane could trigger losses for investors in some of those deals,...



Deadline Looms for Santander

Fri, 08 Sep 2017
Santander Consumer USA has made little progress toward meeting loan-origination goals under its preferred-lender agreement with Chrysler, clouding the outlook for its securitization program.The most recent market-penetration figures show that at the end of the second quarter, Santander accounted for only 20% of loans and leases to Chrysler customers — barely changed from 19% in the first quarter and well below a 65% target set by Chrysler....



Issuance Barrage Taking Shape

Fri, 08 Sep 2017
The asset-backed bond pipeline is swelling again.After a few weeks of typically light volume in late August, issuers started filing back into the market in recent days. The week of Sept. 11, meanwhile, promises to be particularly busy with as many as 20 offerings making the rounds.Deals set for that period include Fifth Third Bank’s first securitization of prime-quality auto loans since 2015, along with a prime-auto offering from USAA. GM...



Freddie Offering Makes a Splash

Fri, 08 Sep 2017
Investors were chomping at the bit this week after Freddie Mac floated a bid list containing subprime-mortgage bonds issued before the credit crisis.The list encompassed bonds with a combined face value of $731 million, drawn from 12 tranches. Traders returning from the long Labor Day weekend were buoyed by such a large offering, following a period when both Freddie and Fannie Mae had been less active in shedding their books of older mortgage...



Vendor Costs Targeted for Reduction

Fri, 08 Sep 2017
Capital-markets consultant International Solutions Network is launching a service that promises to help investment banks and large buy-side firms manage their vendor expenses.Staffers including chief executive Richard Clements started talking to potential clients in recent weeks ahead of an official unveiling of the business, called VendorScape.Their pitch: International Solutions can audit relationships with data- and analytics-focused vendors...



The Grapevine

Fri, 08 Sep 2017
INTL FCStone Financial has eliminated Allan Berliant’s job as head of its asset-backed securities product manager. Berliant, who was let go about a week ago, had joined the New York broker-dealer in August 2015 with the task of building his unit. He previously headed investments in structured products at hedge fund operator Grantham, Mayo, Van Otterloo & Co., where he was employed since 2003. He also counts Hartford Investment, Zurich...



The Grapevine

Fri, 08 Sep 2017
Susan Thomas no longer is working as associate general counsel at Ford Credit, a position in which she oversaw legal and regulatory matters for the automaker’s asset-backed bond program. Thomas joined Ford in 2001 from Powell Goldstein. She played a high-profile role in the formation of the Structured Finance Industry Group.



The Grapevine

Fri, 08 Sep 2017
J.P. Morgan executive Ben Peletier has absorbed oversight of collateralized loan obligation originations in Europe. The responsibilities come on top of Peletier’s work as the bank’s co-head of asset- and mortgage-backed bond originations in the region, a title he shares with Oldrich Masek. On the CLO side, Peletier is working closely with U.S. counterpart Sean Griffin. Peletier joined J.P. Morgan in 1997. J.P. Morgan initially spoke...



The Grapevine

Fri, 08 Sep 2017
Former Credit Suisse securitization executive Vaibhav Piplapure has joined M&G Investments of London. In his new role, Piplapure mainly handles direct investments in mortgages, credit-card accounts, auto loans, personal loans, equipment leases, trade receivables and small-business loans. Piplapure headed Credit Suisse’s asset-backed bond banking unit in Europe from 2015 until this June. He previously worked at KKR and Avoca Capital,...



The Grapevine

Fri, 08 Sep 2017
Sanjeev Handa started this week at Crossbow Advisors. As a senior advisor at the New York firm, Handa aids clients including specialty lenders and real estate investors in managing their financing needs. He also apparently continues to lead Old Orchard Lane, a consulting firm he started in 2014, and remains a board member at Fitch. Handa is best known in the securitization industry for his work as head of asset-backed bond investments at TIAA,...



The Grapevine

Fri, 08 Sep 2017
Steven Park, who left his post as head of sales for Deutsche Bank’s structured-product trustee unit on March 31, has joined hedge fund manager Alexandria Capital after sitting out a gardening leave. Park is stationed in the Washington firm’s New York office as a managing principal responsible for raising capital and identifying structured-product investments. He worked at Deutsche since 1999, and before that was at J.P....



The Grapevine

Fri, 08 Sep 2017
Marketing veteran Rudy Orman has signed on as head of sales at Promontory Fulfillment, a Washington operation that advises mortgage lenders on compliance and technology. Orman had been employed since 2014 as a managing director at Carrington Holding. His former employers also include American Capital Mortgage, Marathon Asset Management, Goldman Sachs, Countrywide and...



The Grapevine

Fri, 08 Sep 2017
Four attorneys from Ashurst’s now-disbanded collateralized loan obligation practice have landed in Allen & Overy’s New York office. Eugene Bong, Chris Jackson, Luke Maimon and Cary Nadelman all were associates at Ashurst, which declined to rebuild its CLO unit when seven partners and several other lawyers left in July. One of the partners, Lawrence Berkovich, turned up at Allen & Overy on Aug. 15. Most of the others headed to Chapman...



Fitch's Duignan Tapped for Non-ABS Role

Fri, 18 Aug 2017
Fitch’s securitization group has a new look.The agency made a series of management changes this week that were set off by a need to fill a key opening: global head of financial-institutions ratings. That title went to market veteran Kevin Duignan, who had been worldwide structured-finance head since 2012.Meanwhile, insider Marjan van der Weijden has assumed Duignan’s former job, which encompasses oversight of all rating-related...



Bond Sales to Clear European NPL Logjam

Fri, 18 Aug 2017
A flurry of deals backed by nonperforming and reperforming loans is taking shape in Europe.Just this week, J.P. Morgan was approaching investors on behalf of an undisclosed issuer in Portugal. More offerings are expected to follow from that nation, along with Italy and Spain — and possibly Greece and Cyprus.The underlying loans would include a mix of residential mortgages, commercial mortgages, corporate loans and small-business loans. The...



Nationstar Developing Non-QM Program

Fri, 18 Aug 2017
Nationstar Mortgage plans to start writing and securitizing home loans that fall outside the Consumer Financial Protection Bureau’s “qualified-mortgage” guidelines.The Coppell, Texas, company intends to launch the lending program during the fourth quarter. It currently is setting underwriting standards and other specifications for the accounts, which would include alternative-A and interest-only products.The loans would be...



Conference Speakers Earn Big Bucks

Fri, 18 Aug 2017
Conference organizers are paying eye-popping fees to lure big-name pundits and celebrities to speak at their events.Sources said CoreLogic paid Fox News host Tucker Carlson $60,000 for a keynote speech at its “RiskSummit” conference in Dana Point, Calif., on July 30-Aug. 1. And MSNBC “Morning Joe” co-host Joe Scarborough, who gave a keynote address at the Structured Finance Industry Group’s “SFIG Vegas...



MBS Downgrades Taken in Stride

Fri, 18 Aug 2017
Actions by Moody’s and Fitch to downgrade mortgage bonds at risk of being called appeared to have a muted impact on the market this week, save for institutional investors that only hold top-rated paper.On Aug. 14, Moody’s downgraded five deals issued before the financial crisis that were subject to a controversial move by Wells Fargo’s trustee unit to hold back payments to bondholders for litigation expenses. Four days earlier,...



Heloc Package Up for Grabs

Fri, 18 Aug 2017
Garnet Capital is auctioning a large portfolio of home equity lines.Working on behalf of an unnamed regional bank, the Harrison, N.Y., loan-sale advisor plans to finalize the bidding process on Sept. 21. Registered users can view details of the offering on the company’s website, garnetcapital.com.The site lists the portfolio’s size at $800 million. About 95% of the loans are performing. The offering is divided into about 10 slices,...



Assurant Emerges as CLO Issuer

Fri, 18 Aug 2017
Assurant is preparing its first collateralized loan obligation.The New York insurer is accumulating assets for the deal in a warehouse facility from Morgan Stanley, which will serve as bookrunner. It has yet to determine the size of the offering.Assurant executives Michael Feeney, Paul Koenig and Matthew Sosland plan to discuss the transaction with potential investors at Information Management Network’s “ABS East” conference in...



PACE Lender Scrutinizes Borrowers

Fri, 18 Aug 2017
Renovate America is vetting more data when writing Property Assessed Clean Energy Loans — a move intended to assuage buyers of its asset-backed bonds.The San Diego company now collects statements of borrower income, along with mortgage- and tax-payment histories. It previously relied more on property values when underwriting the loans, which finance energy-saving upgrades including solar panels and improved insulation.The move follows a...



Hertz Paper Sees Trading Spurt

Fri, 18 Aug 2017
An improving outlook for Hertz has prompted increased secondary-market sales of the company’s asset-backed bonds.From Aug. 10 to Aug. 15, Finra’s Trade Reporting and Compliance Engine logged 25 trades of the securities with a total face value of $145.4 million — an unusual amount of activity for a name that rarely appears on bid lists.The bonds, issued from 2013 to 2015, are backed by leases on vehicle fleets that Hertz writes...



CFPB Formalizes Disclosure Update

Fri, 18 Aug 2017
The Consumer Financial Protection Bureau is seeking comments on new mortgage-disclosure procedures.The feedback would pertain to an updated version of the Dodd-Frank Act’s TILA-RESPA Integrated Disclosure project, which combines components of the Truth in Lending Act and the Real Estate Settlement Procedures Act under the agency’s Know Before You Owe initiative. Comments are due Oct. 10, the day the new “TRID” rules begin...



Yen CLO Classes to Remain Rare

Fri, 18 Aug 2017
Collateralized loan obligation professionals don’t expect many underwriters to mimic MUFG in offering securities denominated in Japanese yen, despite solid demand.Working with New York-based Marathon Investment, the bank priced a $534.6 million offering on Aug. 9 that included a 25.2 billion ($230 million) class of triple-A-rated paper — the first yen-denominated piece of a U.S. CLO since 2015.Such offerings take direct aim at...



Loan Shop Eyes Blockchain Uses

Fri, 18 Aug 2017
Marketplace-loan investor NSR Invest is giving thought to using blockchain technology to securitize its assets following its acquisition of LendingRobot.The deal, completed on Aug. 10, merges two asset managers with a combined $170 million invested in personal loans, small-business loans and mortgages originated by online lenders including Lending Club, Prosper Marketplace and Lending Home. Seattle-based LendingRobot already uses Ethereum, a...



The Grapevine

Fri, 18 Aug 2017
Deutsche Bank has hired a director for its asset-backed securities banking team in New York, installing Hector Campos as co-head of financial engineering for the group. Campos most recently worked as a vice president at Bank of America, which he joined in 2015 from S&P. He also has worked at Altavair.



The Grapevine

Fri, 18 Aug 2017
Gil Tollinchi no longer is employed at Golub Capital, where he had started in March as head of business development for a group that issues collateralized loan obligations backed by broadly syndicated loans. Tollinchi previously was employed at Crescent Capital since 2011, moving with the firm as it spun off from TCW. His exit from Golub is prompting speculation that the $20 billion operation has soured on issuing CLOs backed by broadly...



The Grapevine

Fri, 18 Aug 2017
Hunt Financial Securities has added another member to its structured-product sales team. Kenneth Clisham arrived at the New York operation on July 27 from Cantor Fitzgerald, where his coverage areas included mortgage-backed securities, whole loans and collateralized loan obligations. Clisham worked there since 2005. His former employers also include Piper Jaffray, A.K. Capital, J.P. Morgan, Greenwich Capital and Merrill Lynch. Hunt has added a...



The Grapevine

Fri, 18 Aug 2017
Barclays has hired a collateralized loan obligation structuring specialist. Eric Glyck arrived in the bank’s New York underwriting unit last week from Goldman Sachs, where he was employed since 2010. Barclays’ CLO team has been on a tear this year, running the books on 13 deals totaling $6 billion worldwide. It most recently priced a $509.4 million transaction dubbed Milos CLO for Invesco on Aug....



The Grapevine

Fri, 18 Aug 2017
Attorney Jared Axelrod, who focuses on the documentation of collateralized loan obligations, moved to the New York office of Dechert this month from Ashurst. Axelrod, an associate, had been working at Ashurst since 2015 and before that was at J.P. Morgan. His exit from Ashurst comes amid a wave of defections that has seen several of his former colleagues start a CLO practice at Chapman & Cutler. Others are moving...



The Grapevine

Fri, 18 Aug 2017
Sound Point Capital is looking for a collateralized loan obligation analyst. The recruit would aid both in the New York firm’s activities as an issuer and as an investor — reviewing documents, assisting with bondholder inquiries and updating marketing materials. Sound Point is focusing on candidates with at least five years of experience. Along with CLOs, the $13 billion Sound Point manages hedge funds, mutual funds and separate...



The Grapevine

Fri, 18 Aug 2017
Short Hills, N.J., hedge fund operator Toorak Capital has added an associate to its investment team, which trades mainly in mortgage-related instruments. The recruit, George Papadeas, had been employed at Nomura since 2015 as part of a team that analyzes troubled mortgage pools. Toorak is led by founder John Beacham, a longtime industry participant who previously led B2R...



The Grapevine

Fri, 18 Aug 2017
Stellwagen Capital, a consulting firm that aids asset managers in their product-development efforts, has added an executive with securitization experience to its staff. David Center joined the Cohasset, Mass., operation a few weeks ago as a managing director. Center most recently helped lead ECN Capital’s aircraft- and railcar-finance businesses. He started there in 2014, following stops at Sumitomo Mitsui Banking, Burnham Sterling & Co....



Card-Bond Volume Soars to New Heights

Fri, 11 Aug 2017
The volume of credit-card securities issued in the U.S. this year already has surpassed 2016’s full-year tally, with no signs of a letup in the months ahead.A $1.3 billion transaction from Discover Financial, a $525 million offering from RBC and a $400 million issue from World Financial Network this week took year-to-date deal volume in the asset class to 37 transactions totaling $35.7 billion — versus $34.5 billion for all of last...



Calm Prevails as Libor Faces Elimination

Fri, 11 Aug 2017
Structured-product professionals are taking the end of Libor in stride.The U.K. Financial Conduct Authority’s July 27 statement that it would phase out the widely used benchmark by yearend 2021 caught fixed-income specialists off guard. But those involved in asset-backed securities, mortgage bonds and collateralized loan obligations since have concluded that the transition to a replacement rate will be smooth.That attitude in part reflects...



Wilmington Bulking Up Trustee Operation

Fri, 11 Aug 2017
Wilmington Trust is pursuing a further expansion of its structured-finance trust business.The company has openings for five securitization specialists within its capital-markets group in the U.S., with potential locations in New York, Minneapolis, Buffalo, Baltimore, Chicago or Wilmington, Del. It also is seeking two staffers in Europe, in London and Dublin.Four of the U.S. recruits would be relationship managers charged with working with...



Issuers Shrug Off Retention Concerns

Fri, 11 Aug 2017
With more issuers coming off the sidelines, collateralized loan obligation professionals are gaining confidence that the market has adapted to the Dodd-Frank Act’s risk-retention rule.Just this week, Aegon USA, Canaras Capital and Covenant Capital were shopping their first deals of 2017. Marble Point Credit also priced its debut offering.That would bring to 75 the number of issuers to have tapped the market this year, according to...



Risk-Transfer Subs Swing Wider

Fri, 11 Aug 2017
Investors are taking a more cautious approach to junior risk-transfer bonds.At issue is the possibility that the unrated B-1 classes of the deals may lack the credit enhancement to withstand a potential collapse in the values of their underlying homes. The result has been a widening of spreads among those securities in recent weeks, as more bondholders have listed their positions on the secondary market.For example, a few batches of six-month B-1...



Mechanics to Revive CRB Program

Fri, 11 Aug 2017
California Republic Bank’s auto-loan securitization program could soon get back on track.The outlook is tied to the acquisition of the institution in October 2016 by Mechanics Bank of Walnut Creek, Calif. Sources project that the combined operation eventually will produce up to $2 billion of auto-loan bonds each year, tapping the market at least once per quarter.California Republic had been developing a similar issuance schedule prior to...



REIT Ramps Up Alt-A Portfolio

Fri, 11 Aug 2017
Anworth Mortgage is accelerating its purchases of pre-credit-crisis mortgage bonds backed by alternative-A loans.The Santa Monica, Calif., REIT is expected to buy another $200 million or so of the securities by yearend. That would add to a book of alt-A paper that stood at $512.8 million at the end of the second quarter, which in turn was up from $399.1 million at yearend 2016. On June 30, the portfolio had a weighted average yield of...



Mayer Taps ABS Team in BNY Suit

Fri, 11 Aug 2017
Mayer Brown’s securitization attorneys aided the firm’s trial lawyers in successfully defending mortgage-securitization trustee BNY Mellon against a bondholder lawsuit.Judge Steven Martin, serving on the Hamilton County Court of Common Pleas in Cincinnati, ruled on Aug. 3 against Western and Southern Life, which claimed BNY failed to protect it as an investor in 31 Countrywide deals that went bad during the credit crisis.The...



Conn's Joins Offering Pipeline

Fri, 11 Aug 2017
Conn’s is preparing a personal-loan securitization.The offering, with an estimated size of $500 million, is expected to hit the market in late September or early October. Sources have pointed to Credit Suisse, Deutsche Bank and MUFG as likely underwriters.Conn’s has completed one securitization so far this year, placing $469.8 million of bonds through the same group of banks on April 11. In 2016, it priced two deals totaling $1...



Subprime Borrowers Falling Behind

Fri, 11 Aug 2017
Delinquencies among securitized pools of subprime auto loans continue to climb.According to an index maintained by Fitch, the volume of past-due accounts in subprime-loan pools rose 12 bp to 4.67% during the month ended July 15. That was the highest level recorded for July since Fitch began maintaining its index in 2001. The figure also jumped in May and June, after reaching a recent low of 4.11% in April. Meanwhile, losses among subprime loans...



Rate Squeeze Persists for CLOs

Fri, 11 Aug 2017
A key indicator of asset revenues continued to deteriorate in May among collateralized loan obligations issued after the credit crisis.The weighted average spread, which expresses the difference between three-month Libor and the higher average interest rates on the deals’ underlying loans, fell 9 bp for the month to 3.65%, according to an index maintained by Moody’s. The decrease fits into a longer-term pattern in which Libor has been...



The Grapevine

Fri, 11 Aug 2017
Jiwon Park starts next week at Hunt Financial Securities as a trader of mortgage bonds and collateralized loan obligations. Park most recently worked at KeyBank, which he joined in April 2016 from RBC. He also has spent time at Moody’s and S&P. Hunt is in an expansion phase that likely will result in the New York firm amassing a large structured-product trading inventory through a desk led by Brian Pereira. The broker-dealer also is...



The Grapevine

Fri, 11 Aug 2017
Former Natixis syndication head Andy Phelps is joining Black Diamond Capital, an issuer of collateralized loan obligations and an investor in structured products. Phelps will focus on the Greenwich, Conn., firm’s CLO-issuing business. Since 1999, Black Diamond has issued 12 CLOs totaling $6.4 billion. Phelps left Natixis last month, after working there since 2013 as global head of syndication for asset-backed securities and CLOs. Phelps...



The Grapevine

Fri, 11 Aug 2017
Mortgage-bond trader Joseph Allen has landed a position at Galton Capital, a fund operator backed by Mariner Investment. Allen started last month at Galton as its head trader of mortgages and mortgage-backed securities. Before joining Galton, he worked for nearly eight years in a similar role at hedge fund manager Marinus Capital, which is in the process of unwinding. Allen previously worked at GSO Blackstone, Brevan Howard and...



The Grapevine

Fri, 11 Aug 2017
Collateralized loan obligation specialist John Chen has left Morgan Stanley’s investment-banking group to join a structured-product investment team at Calpers. He’s slated to start soon at the pension giant, reporting to Sacramento-based portfolio manager Jean Hsu. Chen was an executive director at Morgan Stanley, where he had worked since 2006. Before that, he was at...



The Grapevine

Fri, 11 Aug 2017
Bankers’ hopes of Uber Technologies becoming an asset-backed securities issuer were crushed last month, when the company terminated its program for leasing vehicles to its drivers. The ride-sharing firm, which started the Xchange leasing program in 2015, had been talking to bankers and attorneys about securitizing its lease receivables. Last year, it obtained a $1 billion credit facility from Citigroup, Goldman Sachs, J.P. Morgan and Morgan...



The Grapevine

Fri, 11 Aug 2017
MetLife has an associate director opening on its asset-backed securities team in Whippany, N.J. The recruit would conduct analysis of new issues and bonds offered on the secondary market. The job also involves regular communication with issuers. MetLife will only consider candidates with at least five years of investment experience. Apply by sending a resume to recruiter Carolyn Malloy at...



The Grapevine

Fri, 11 Aug 2017
Attorney James Thompson has returned to Cadwalader Wickersham, where he started his career in 2011. Thompson came back to Cadwalader on Aug. 7 as an associate in the capital-markets group in New York, reporting to co-heads Mike Gambro and Stuart Goldstein. Thompson, who focuses on asset-backed securities, previously practiced at Morgan Lewis since 2015.



The Grapevine

Fri, 11 Aug 2017
Wilfred Daye left his managing director post last week at PeerIQ, a data company specializing in the online-lending sector. Daye, who focused on quantitative strategies at PeerIQ, is expected to join an unspecified hedge fund management firm in the near future. Before joining PeerIQ in 2016, Daye was an executive director at UBS, where he focused on trading structured products. He also worked at Deutsche Bank and D.B....



REIT Portfolios Swell Amid Equity Sales

Fri, 04 Aug 2017
Mortgage REITs are in the midst of a capital-raising surge that has elevated their profiles among structured-product investors.Ten of the operations including AGNC Investment, Chimera Investment, MFA Financial, New Residential Investment, PennyMac and Two Harbors Investment have combined to issue $4.4 billion of fresh common or preferred shares this year. And conditions appear favorable for the campaigns to continue.Future equity sales could come...



Bond Scarcity Boosts Values Even Further

Fri, 04 Aug 2017
Just when it looked like the values of asset-backed bonds couldn’t go any higher, a recent shortage of new issues is lifting them further.Spreads on top-rated bonds backed by consumer debt tightened 1-3 bp on the secondary market this week. Example: Three-year, triple-A-rated notes backed by prime-quality auto loans were trading around 16 bp over swaps on Thursday. That’s 2 bp tighter than a week ago. The movement was even more...



Industry Pros Write Off Square Program

Fri, 04 Aug 2017
Count out Square as a near-term issuer of asset-backed bonds.The San Francisco company, best known for its credit-card processing devices, had been pegged as a potential source of small-business loan securities. But upon a closer look, industry participants have concluded that the underlying accounts would mature too quickly.Indeed, most of Square’s small-business loans pay off in six or seven months. That compares to up five years for...



No Rush for Public Redwood Deal

Fri, 04 Aug 2017
With the supply of new jumbo-mortgage bonds remaining lackluster, Redwood Trust is holding off on plans to float offerings registered with the SEC.Ever since Redwood received approval from the SEC on May 1 to conduct such transactions, industry participants have been looking for signs that the program would get under way in the near term. But with few other issuers entering the market, sources said the Mill Valley, Calif., REIT feels no urgency...



Deutsche Puts Servicers On Notice

Fri, 04 Aug 2017
Faced with a string of lawsuits from investors in troubled pre-crisis mortgage bonds, Deutsche Bank’s trustee unit is preparing its own complaints against the deals’ master servicers.As an initial step in the process, sources said the bank either has sent or is preparing to send indemnity claims to servicers including Ocwen Financial and Wells Fargo. Among its allegations: that the shops neglected to notify it when certain collateral...



Discover Eases on Personal Loans

Fri, 04 Aug 2017
Discover Financial is slowing the growth of its personal-loan portfolio — assets it has considered securitizing.The outlook, disclosed in a second-quarter earnings call on July 26, reflects a move by the Riverwoods, Ill., company to tighten underwriting standards for those accounts in response to deteriorating performance. Charge-offs stood at 3.18% at midyear, for example, up 80 bp from 2.38% a year earlier.Discover’s personal-loan...



Call-Option Fears Subside

Fri, 04 Aug 2017
Mortgage-bond professionals are expressing relief over a move in which Wells Fargo’s trustee unit withheld only a modest amount of capital from investors in a pre-credit-crisis deal that was called in July.The action saw Wells hold back $65,000 from a single issue, sticking with a strategy in which the bank recently has set aside such payments in an effort to pay for anticipated legal bills. But at $18.32 per underlying loan, the amount was...



SFIG Seeks Volcker Rule Feedback

Fri, 04 Aug 2017
The Structured Finance Industry Group plans to poll its members on how it should comment on possible changes to the Dodd-Frank Act’s Volcker Rule.The effort comes in response to an Aug. 2 statement in which the Comptroller of the Currency invited input on potential revisions to the measure, which limits proprietary trading by banks. The bureau is particularly interested in ways it might accomplish the purposes of the rule while reducing the...



Next Step for LendingClub Program

Fri, 04 Aug 2017
LendingClub is preparing another personal-loan securitization.The offering, with an estimated size of $400 million, is expected to hit the market in September. Citigroup and J.P. Morgan are seen as the likely bookrunners.The deal would be the second offered through LendingClub’s Consumer Loan Underlying Bond Credit Trust. The first was a $279.4 billion transaction that priced on June 14, with Citi and J.P. Morgan sharing bookrunning...



Card Performance Seen Weakening

Fri, 04 Aug 2017
Improvements among performance indicators for securitized credit-card pools may be short-lived. According to an index maintained by Fitch, charge-offs among those accounts averaged 2.89% during the April-June period, down 23 bp from the first-quarter figure. With charge-offs still well below the 5.44% average maintained since Fitch started tracking the market in January 1991, however, senior director Herman Poon predicts a...



Rated Master, Primary and Special Mortgage Servicers

Fri, 04 Aug 2017
The listing below shows the ratings of U.S. home-loan servicers evaluated by Moody’s, S&P, Fitch, DBRS and Kroll.Master servicers oversee primary servicers and, if necessary, step in as primary servicers if the original ones fail to fulfill their responsibilities. Primary servicers handle payment collections and loan reporting. Special servicers take charge of nonperforming loans by collecting payments, liquidating repossessed assets and...



The Grapevine

Fri, 04 Aug 2017
Several more attorneys are moving from the New York office of London-based Ashurst to a new collateralized loan obligation practice at Chapman & Cutler. Associates Christopher McGovern and Brad Vollkommer already have made the jump. Also expected to join Chapman from Ashurst are Eugene Bong, Kimberley de Looze, Sharon Kim and Michael Lyndon-James. Chapman’s CLO practice formed a few days ago, when partners William Gray and Patrick Quill...



The Grapevine

Fri, 04 Aug 2017
Salesman James Showers has joined Hunt Financial’s growing broker-dealer unit in New York as a managing director focusing on the distribution of asset-and mortgage-backed securities. He started work at Hunt last month, reporting to structured-product sales chief Pradeep Brian Pereira. Showers held similar positions at Stifel Nicolaus, where he had worked since 2013, and Knight Capital. He did prior stints at Aladdin Capital and Hexagon...



The Grapevine

Fri, 04 Aug 2017
Mortgage-bond salesman Patrick Cunningham also started work at Hunt Financial late last month. Cunningham was most recently at Jefferies, which he left in June to join R.W. Baird & Co. But while on a 60-day gardening leave, he was convinced to instead join the Chicago office of Hunt, which has been aggressive in recruiting professionals for a new mortgage-securities operation. Cunningham was a managing director at Jefferies. He arrived there in...



The Grapevine

Fri, 04 Aug 2017
Max Berger, who has been analyzing asset-backed securities at DBRS since 2009, is leaving his post to join Morgan Stanley’s deal-origination team. For the past five years, Berger has worked as an assistant vice present conducting credit analysis on a variety of asset-backed issues.



The Grapevine

Fri, 04 Aug 2017
Senior counsel Ron Borod is leaving DLA Piper’s securitization practice to start a consulting business. Borod’s Boston-based Ram Island Strategies opens for business next week. Its aim: to aid issuers of bonds backed by rarely securitized assets, including tobacco-settlement proceeds, whole-business cashflows and solar-power equipment cashflows. Despite Borod’s background, his firm won’t offer legal advice. Borod joined...



The Grapevine

Fri, 04 Aug 2017
Orchard Platform’s broker-dealer arm has begun interviewing for 3-5 junior and senior sales-specialist openings. The recruits will focus on arranging warehouse lines, loan-sale agreements and other financing arrangements with attention paid to potential securitization takeouts. The New York firm is focusing on deals involving consumer, small-business and solar-power loans as well as mortgages. Resumes can besent to chief executive Matt...



The Grapevine

Fri, 04 Aug 2017
Veteran marketer Rudy Orman has left his job as a managing director at Carrington Holding, were he worked with buyers of mortgage-related assets. Orman joined the Aliso Viejo, Calif., firm in 2014 from mortgage servicer Residential Credit Solutions. He also has worked at Marathon Asset Management, Goldman Sachs, Countrywide and HSBC.



The Grapevine

Fri, 04 Aug 2017
MFS Investment has hired Fidelity Investments alumnus LeNola Potami as a structured-product researcher. She started work last month at Boston-based MFS, a unit of Sun Life Financial. Potami worked at Fidelity in a similar capacity. Before starting there in 2005, she was at State Street Bank.



The Grapevine

Fri, 04 Aug 2017
S&P’s has an opening for an analyst who would focus on cashflow modeling and structural analysis of new issues of asset- and mortgage-backed securities. Candidates for the New York position must have two of years experience. Apply at spglobal.com/careers.



Navient Barreling Into Private-Loan Market

Fri, 28 Jul 2017
Navient is positioning itself as a bigger issuer of bonds backed by private student loans, starting with accounts it is buying on the open market and continuing with receivables it would originate itself.The plan marks an inevitable evolution for the Wilmington, Del., company, which so far has focused on servicing and securitizing private and government-guaranteed loans inherited in its 2014 split from Sallie Mae.First up on the private-loan side...



Lehman Estate Targets Mortgage Originators

Fri, 28 Jul 2017
In a bid to recover some of the $2.4 billion that it recently agreed to pay to holders of its mortgage bonds, Lehman Brothers Holdings is preparing to go after the originators that supplied collateral for those deals.A team of lawyers and consultants has begun examining deal documents from 238 mortgage securitizations Lehman issued prior to its financial-crisis collapse. They’re looking for breaches of representations and warranties that...



Exits Stamp Out Ashurst's CLO Practice

Fri, 28 Jul 2017
Ashurst, once among the most active law firms advising underwriters of collateralized loan obligations, is pulling back from the market amid a staff exodus.At least eight partners have quit Ashurst’s New York-based CLO practice this year, including six who will soon join rival law firm Chapman & Cutler. The result, sources said, is that Ashurst likely will exit the CLO market altogether.William Gray, who led Ashurst’s CLO practice, is...



Saudi Arabia Ponders Issuance Rules

Fri, 28 Jul 2017
The Saudi Arabian government is exploring the creation of a regulatory framework for securitization.Details are sketchy. What’s known is that the Capital Markets Authority of Saudi Arabia is spearheading the initiative, likely with an initial focus on drafting rules that would allow for securitizations of mortgages written in the country.The bonds likely would be distributed in other nations. Offerings backed by auto loans and auto leases...



Jefferies Steps Up Trading in Europe

Fri, 28 Jul 2017
Jefferies is building up its structured-product trading capabilities in Europe.The bank plans to launch the initiative in September, at which point it would set out to add an unspecified number of traders to its London office. For now, it is shifting some existing personnel to the desk.Those individuals appear to be working mostly on trades of mortgage portfolios, and possibly personal loans. Additional recruits could include more bond...



Servicer Targeted for Acquisition

Fri, 28 Jul 2017
Consumer-loan servicer CardWorks is in play.Sources said the Woodbury, N.Y., firm is in talks to be taken over by a group of three suitors, possibly including Pimco.CardWorks services a mix of credit-card accounts, unsecured personal loans and loans written against recreational vehicles, boats, solar-power equipment and automobiles — including those in securitization pools. It also operates a South Jordan, Utah, lending arm called Merrick...



Issuers Pull Back From Torrid Pace

Fri, 28 Jul 2017
The market for newly issued asset- and mortgage-backed securities is showing signs of fatigue.After a blistering first half, dealflow slowed in July. Month-to-date, issuers in the U.S. have priced 28 deals totaling $16.8 billion, according to Asset-Backed Alert’s ABS Database.That compares to a first-half average of about 40 transactions per month, with an average dollar volume of $24.8 billion.The expectation is that the pace will continue...



Next Prosper Deal Taking Shape

Fri, 28 Jul 2017
Prosper Marketplace is working on another securitization of its personal loans.The offering is expected to total $500 million and hit the market next month. It would be the second from the Prosper Marketplace Issuance Trust, which Prosper set up to securitize loans it sells to a loan-buying group led by Jefferies. The consortium also includes Fortress Investment unit New Residential, Soros Fund Management and Third Point.Credit Suisse and...



Valcour Resurfaces in CLO Market

Fri, 28 Jul 2017
Valcour Capital is planning to refinance its most recent collateralized loan obligation, with a new deal possibly to follow.Word of the effort follows an agreement by Valcour to sell itself to Pretium Partners — a marriage that could boost its issuing capacity going forward. The Stamford, Conn., firm hasn’t completed a CLO since March 2015.The refinancing would see Valcour issue notes in place of that $416 million deal, called Crown...



Huntington Maps Auto-Loan Deal

Fri, 28 Jul 2017
Huntington National Bank is planning its next securitization of prime-quality auto loans.The deal has a projected size of $1 billion. It is expected to hit the market in the coming months, with sources pointing to Credit Suisse and J.P. Morgan as potential underwriters.Industry participants will be keeping a close eye on the deal, following a timing snafu that came up with Huntington’s last transaction. In that $1.5 billion offering,...



STS Wrinkle Affects Supply Forecast

Fri, 28 Jul 2017
Mortgage-bond professionals in Europe are forecasting a flurry of deals backed by loans written before the financial crisis.The predictions mark the latest twist in a long-running effort to deem certain securitized products “simple, transparent and standardized” — and thus eligible for friendlier capital-reserve treatment.After two years of negotiation, the European Commission and European Parliament settled multiple...



Anchor to Float Next Offering

Fri, 28 Jul 2017
Anchor Loans is readying its second securitization of “fix-and-flip” loans.The privately placed transaction is expected to total more than $100 million. Sources said it is likely to hit the market before yearend.Man Group will serve as structuring agent. The London firm came into that role via its January purchase of Aalto Invest, which served in a similar capacity for Anchor’s first deal.That $100 million transaction priced in...



Fraud "Sunset' Riles Up Investors

Fri, 28 Jul 2017
Industry professionals are raising their eyebrows over the investor protections built into a jumbo-mortgage securitization from Flagstar Bank — with some deeming them insufficient.The $443.8 million offering hit the market on July 24 via bookrunners J.P. Morgan and Wells Fargo. But even as it was on the verge of pricing on July 27, the deal was drawing skepticism over a provision in which bondholders only would have a three-year window in...



The Grapevine

Fri, 28 Jul 2017
David Nathanson jumped to Deutsche Bank from Morningstar in June. As a member of Deutsche’s New York office, Nathanson mainly handles banking duties for deals backed by auto loans and student loans. He was employed at Morningstar since 2014, playing a key role in the development of the firm’s asset-backed bond rating business. He was at Moody’s before that, preceded by a stint in another area of Deutsche and stops at Citigroup...



The Grapevine

Fri, 28 Jul 2017
Morgan Stanley has added a vice president to its asset-backed bond structuring team in New York. Nishant Kumar arrived in June, charged with coverage of deals including those backed by aircraft leases, shipping-container leases, railcar leases and personal loans. Kumar had been employed since 2011 at Deutsche Bank and before that was at MSCI.



The Grapevine

Fri, 28 Jul 2017
Mortgage-bond trader Jiwon Park left KeyBank last week. Park apparently has another job lined up, although his destination couldn’t be learned. He joined Key’s New York office in April 2016 from RBC. Earlier, he worked at Moody’s and S&P. Key has been working to beef up its mortgage-bond sales-and-trading desk.



The Grapevine

Fri, 28 Jul 2017
Amherst Pierpont Securities has an opening for a collateralized loan obligation structuring specialist in New York. The recruit would report to Erez Biala. The search follows a late-2016 move by Amherst to establish a structured credit product origination and trading business. Candidates can email resumes to the firm’s human-resources department at...



The Grapevine

Fri, 28 Jul 2017
A salesman specializing in emerging-market structured products has jumped to BBVA from Deutsche Bank. As a vice president in BBVA’s New York office, Esteban Fernandez’s coverage areas include asset-backed securities, collateralized loan obligations, foreign currencies and government securities. His clients include asset managers and private banks. Fernandez was employed at Deutsche since 2013. He also has spent time at FG Cos., Garnet...



The Grapevine

Fri, 28 Jul 2017
Waterfall Asset Management has an opening for an analyst or associate on its investment team. The recruit would be stationed in the $6.7 billion fund operator’s New York office, supporting the evaluation and acquisition of high-yield asset-backed securities and whole loans. Candidates can email resumes to managing director Daniel Ostersehlte at...



The Grapevine

Fri, 28 Jul 2017
Bank of America is seeking an in-house attorney for its structured-product underwriting business. The recruit would work in Charlotte, with responsibility for reviewing various contracts and offering memorandums — while aiding in deal approvals and the drafting of company policies. BofA is seeking candidates with at least five years of experience. For more information, visit careers.bankofamerica.com and enter job number...



The Grapevine

Fri, 28 Jul 2017
Moody’s has two job openings in New York. One of the vacancies is for an assistant vice president who would handle research functions under managing director Jian Hu. That position requires five years of experience. The other slot is for a collateralized loan obligation analyst under Al Remeza. That job requires three years of experience.



The Grapevine

Fri, 28 Jul 2017
Brigade Capital executive Justin Pauley has written a book that instructs budding analysts on the technological aspects of their work. “Unlocking Financial Data: A Practical Guide to Technology for Equity and Fixed Income Analysts,” is available on Amazon.com. Pauley, a senior analyst, joined Brigade in 2012 from RBS. Brigade invests in collateralized loan obligations and maintains its own issuing program, which has produced 10 CLOs...



Citi Developing 30-Year Card Transactions

Fri, 21 Jul 2017
Citigroup is thinking about issuing credit-card bonds with 30-year maturities.Treasury officials at the bank recently have floated the idea by rating analysts and several investors, with an eye toward bringing a deal to market in the coming months.Citi and other issuers already have stretched the lives of some credit-card deals beyond the typical 2-5 years in the past few months. Indeed, Citi led the pack in selling $1.1 billion of seven-year...



Apollo Ends Holdout From CLO Issuance

Fri, 21 Jul 2017
Apollo Global Management is ready to resume issuing collateralized loan obligations.The firm is aiming for August or September to start shopping a $450 million offering called Redding Ridge CLO 2 with BNP Paribas running the books. It has been accumulating assets for the offering all year, to the point where almost all of the receivables are in place.Apollo last issued a CLO in June 2016. The firm stepped back because it took a dim view of...



Railcar Builder Readies Financing Program

Fri, 21 Jul 2017
One of the largest railcar manufacturers in the U.S. is positioning itself as a routine issuer of asset-backed bonds.American Railcar Industries’ offerings would be backed by leases written through an in-house financing unit that launched in June, and could start flowing as soon as October. As part of the push, the St. Charles, Mo., company has been talking to banks including Credit Suisse and Morgan Stanley about supplying warehouse lines...



SFIG Tackles Emerging Technology

Fri, 21 Jul 2017
The Structured Finance Industry Group is starting a pilot program focused on the adoption of blockchain technology in the structured-finance industry.The trade group hopes to start working on the project by yearend. The plan is to team up with one or more leading developers of the technology — with sources naming Chain, IBM, Microsoft and R3 as candidates.R3 already is working with at least 40 underwriters, along with issuers including...



Brigade to Shop European CLOs

Fri, 21 Jul 2017
Brigade Capital is preparing its first securitization of European corporate loans.The deal is expected to hit the market in the coming weeks with a projected size of €360 million ($415 million). Citigroup is running the books.New York-based Brigade invests broadly in credit products, and as part of that has been issuing collateralized loan obligations in the U.S. since 2007. Its London unit, meanwhile, began accumulating assets for a debut...



Rivals Wary of RBC Retention Plan

Fri, 21 Jul 2017
Major collateralized loan obligation underwriters are resisting pressure to help managers employ a risk-retention strategy designed by RBC.At issue is a process that aims to satisfy the Dodd-Frank Act’s skin-in-the-game rule by using a majority-owned affiliate to keep a 5% vertical stake in each tranche of a deal while simultaneously offering a second layer of securitization-like notes referencing that position. RBC first employed the...



CIFC Keeps Deal Pipeline Flowing

Fri, 21 Jul 2017
CIFC has returned to form as an issuer of collateralized loan obligations, with two more deals in the works following three it priced in the last six months.CIFC’s fourth CLO of 2017 is due to hit the market in August, with a fifth deal likely in the October-December period. Both transactions are expected to top $500 million. That would lift CIFC’s full-year deal volume to more than $3 billion — its highest annual total since...



MBS Trading Reflects Wells Action

Fri, 21 Jul 2017
A two-tiered pricing pattern appears to be taking hold in the mortgage-bond market as investors continue to weigh the risk that Wells Fargo and other trustees might withhold payments when deals are called.Buyers are steering clear of bonds issued before the 2007 market crash that are likely to be called — particularly if the trustee is among six institutions including Wells that are defendants in ongoing investor lawsuits. Trading in those...



Student-Loan Report Roils Market

Fri, 21 Jul 2017
Trading of private student-loan bonds issued by First Marblehead surged this week after The New York Times reported that up to $5 billion of debt underpinning the transactions may be forgiven.In a front-page article that ran July 18, the Times reported that judges around the country have been dismissing lawsuits against delinquent borrowers filed via National Collegiate Student Loan Trust, one of two entities First Marblehead used to securitize...



New Cloud for Solar-Energy Deals

Fri, 21 Jul 2017
Recent moves by several states to reduce or eliminate subsidies for solar-energy projects are raising concerns among securitization professionals who view the sector as a growth area.The Oregon State Legislature this month failed to renew a $6,000 tax credit for residential solar-power systems, meaning the program will expire at yearend. Other states including Indiana, Maine and Arizona have phased out “net metering,” a benefit that...



DealVector Scopes New Markets

Fri, 21 Jul 2017
DealVector could soon reach a broader field of investors.Driving that outlook is the Sausalito, Calif., firm’s agreement this month to sell an unspecified minority stake in its business to Tradeweb Markets — a Thompson Media unit that specializes in creating electronic marketplaces for agency mortgage bonds, corporate debt and Treasurys.The two operations are looking at ways to give Tradeweb’s clients access to DealVector, a...



The Grapevine

Fri, 21 Jul 2017
Barclays has hired Samuel Oher to head its U.S. collateralized loan obligation trading desk. Oher, who is expected to arrive in the bank’s New York office in mid-August, had been employed on Nomura’s CLO-trading desk since 2011. He earlier worked at marketing agency Deutsch and spent time at Ram Capital. Oher replaces Joe Hornback, who was caught in a round of layoffs in April...



The Grapevine

Fri, 21 Jul 2017
Andy Phelps no longer is in his New York-based post as Natixis’ global head of syndication for asset-backed securities and collateralized loan obligations. Phelps’ next move couldn’t be learned. He arrived at the bank in 2012 from Stifel Nicolaus, having previously spent time at Merrill Lynch, Goldman Sachs and J.P. Morgan.



The Grapevine

Fri, 21 Jul 2017
Separately, Natixis and asset-backed securities banker William O’Brien have parted ways. O’Brien’s plans are unknown. He joined Natixis’ London office in 2015 from Nomura. He also has spent time at Commerzbank.



The Grapevine

Fri, 21 Jul 2017
Senior portfolio manager William Lemberg has left BNY Mellon unit Alcentra. Lemberg joined the New York operation in 2008, after working at BNY in a variety of roles since 1991. Most recently, he worked on Alcentra’s collateralized loan obligation issuance program, which this year has produced two U.S. deals totaling $1 billion. His duties have been divvied up among other portfolio...



The Grapevine

Fri, 21 Jul 2017
Soyoon Sung is leaving her post as a senior director on LendingClub’s capital-markets team. Her destination is unknown. Sung had worked at the San Francisco marketplace lender since 2014. Earlier, she spent time at Morgan Stanley and Barclays. LendingClub issued its most recent personal-loan securitization on June 14, with Sung playing a key role in the $279.4 million deal’s...



The Grapevine

Fri, 21 Jul 2017
John D’Elisa joined Deutsche Bank’s Jacksonville office this week as head of financial engineering for asset-backed securities, a role in which he oversees a range of analytics, collateral-review and bond-structuring functions. D’Elisa had been working since April as a consultant to Fannie Mae. Before that, he spent time at Ernst & Young, RBS, Deloitte, Solomon Brothers, Merrill Lynch and Grumman...



The Grapevine

Fri, 21 Jul 2017
Michael Tannenbaum has left his job as Social Finance’s chief revenue officer, a position in which he mainly was responsible for product development. Tannenbaum joined SoFi in 2014 from Hellman & Friedman, and before that was at J.P. Morgan. His resignation followed the June departure of Nino Fanlo, the San Francisco lender’s chief operating officer and chief financial officer. Some sources have blamed the exits on a new bonus...



The Grapevine

Fri, 21 Jul 2017
Jeffrey Sisko has joined GE Capital for a third time. This time, Sisko is working as a vice president in the company’s capital-markets group in Norwalk, Conn. — although it’s unclear if the role involves securitization. Most recently, he was employed at Synchrony Financial since 2015 in a position that included treasury functions for the GE spinoff’s credit-card bonds. He twice served as a member of GE’s...



The Grapevine

Fri, 21 Jul 2017
Lloyds Banking has an opening on its asset-backed securities banking team in New York. The recruit mainly would handle analysis and structuring of bonds backed by auto loans and credit-card accounts. Candidates can email Kate Cronin at katherine.cronin@lbusa.com.



Pension Systems Build Up ABS Portfolios

Fri, 14 Jul 2017
Asset-backed bond traders are reporting a stronger bid from public pension systems.The activity has been building for about three months, coming in part from well-established buyers including Calpers in the U.S. and CPP Investment and Ontario Teachers in Canada. Some less-familiar players also have been jumping in, with industry participants pointing to Tennessee Consolidated Retirement and Rhode Island Employees as examples.Additionally in the...



Rival Trustees Eyeing Deutsche's Swoon

Fri, 14 Jul 2017
With rumors swirling that Deutsche Bank’s corporate-trust business could be for sale, the bank’s rivals are considering how such a move might benefit their structured-product businesses.As was the case at yearend 2016, U.S. Bank and Wells Fargo arrived at midyear 2017 as the most active trustees in the combined market for asset- and mortgage-backed bond deals in the U.S., according to Asset-Backed Alert’s ABS Database. Deutsche...



Fidelity Crafting Vehicle to Purchase ABCP

Fri, 14 Jul 2017
Fidelity Investments is planning a fund that would buy asset-backed commercial paper, a potential bright spot for a market that has been hurt by a recent exodus of money-market managers.While the effort still is in the early stages, sources said Fidelity executives intend to launch a mutual fund that would buy securities issued by commercial-paper conduits, as well as the short-dated “A-1” classes of term securitizations. The...



Wells Ruins Call-Option Play

Fri, 14 Jul 2017
Investors who aimed to make a quick buck by purchasing mortgage bonds on the verge of being called instead are finding themselves unable to carry out the plays.At issue is an undertaking in which New Residential Investment has been buying the rights to service vast amounts of pre-credit-crisis mortgage paper, and in the process has exercised call options on those deals. Anticipating those moves, opportunistic investors began...



Rating Relief Seen for AT&T

Fri, 14 Jul 2017
An effort by AT&T to issue asset-backed bonds appears to be gaining traction.The carrier has been working since early 2016 to securitize loans it writes against customers’ high-end mobile devices, but has been stymied by an inability to secure triple-A ratings for the notes. That’s in part because Fitch didn’t want to assign marks exceeding those of a facility called AT&T Receivables Funding that issues participating interests...



Aussie MBS Headed to US Market

Fri, 14 Jul 2017
Mortgage-bond issuers in Australia increasingly are positioning themselves to distribute their paper in the U.S. — moves that could help sustain a recent jump in supply.Issuers in the nation already have completed a healthy 24 home-loan securitizations totaling $12.4 billion this year, according to Asset-Backed Alert’s ABS Database. But much of that supply has come from smaller banks and non-bank operations, with distribution taking...



Subprime Autos Fall Behind

Fri, 14 Jul 2017
Delinquencies among securitized pools of subprime auto loans worsened during the month ended June 15. According to an index maintained by Fitch, the late-payment rate rose 26 bp to 4.55% — continuing a long-term ebb-and-flow pattern. Indeed, the figure was at an all-time high of 5.6% in January, then sank to a 2017 low of 4.11% in April as borrowers tapped income-tax returns to catch up on their bills. Since then, they gradually have been...



Fitch Seizes Rating-Agency Lead

Fri, 14 Jul 2017
Fitch has moved into the lead as the most active rating agency in the U.S. structured-product market, capitalizing on a surge in deal volume in the first half.Issuers in the States hired Fitch to grade 110 fresh asset- and mortgage-backed bond offerings totaling $86.4 billion during the first six months of the year, according to Asset-Backed Alert’s ABS Database. That amounted to a 44.3% increase from a year ago. S&P finished second, with...



Mayer, Morgan Lewis Maintain Leads

Fri, 14 Jul 2017
Mayer Brown and Morgan Lewis continue to rank as the most active law firms in the securitization industry.Among firms representing issuers of asset- and mortgage-backed bonds in the U.S., Mayer easily claimed the biggest market share in the first half, with 34 deals totaling $23.9 billion, according to Asset-Backed Alert’s ABS Database. Katten Muchin finished second with 18 transactions totaling $16.8 billion, while Morgan Lewis was third...



Buy-Side Startup Fizzles

Fri, 14 Jul 2017
Structured-product investor John Roach has called off efforts to start his own hedge fund.Roach had formed his Cross Stone Capital around the beginning of this year, but withdrew the Purchase, N.Y., operation’s SEC registration in June. It’s unclear if he ever began trading with outside capital.Roach, previously of BlueCrest Capital, was seen as likely to get a good look from prospective backers. But structured-product funds in...



July Issuance Heating Up

Fri, 14 Jul 2017
The market for new asset- and mortgage-backed bonds is back in full swing, after pausing for the Independence Day holiday.Eight deals totaling $5.1 billion hit the market during the July 10-13 stretch. On July 12, Redwood Trust priced a $483.9 million jumbo-mortgage securitization via bookrunners Morgan Stanley and Wells Fargo The day before, John Deere sold $857.2 million of equipment-loan paper via Barclays, Citigroup and MUFG and education...



Loan Refis Squeeze CLOs

Fri, 14 Jul 2017
With corporate borrowers still negotiating for lower interest rates on their debts, collateralized loan obligation managers saw their asset revenues shrink in April. According to an index maintained by Moody’s, the weighted average spread for post-credit-crisis deals in the U.S. fell 3 bp for the month to 3.69%. The figure, which expresses the difference between three-month Libor and the higher average interest rates on corporate loans,...



The Grapevine

Fri, 14 Jul 2017
John Malone joined SunTrust in June as a managing director responsible for originating, structuring and placing asset-backed bonds. Malone had worked in the securitization unit of Deutsche Bank since 2007. His former employers include Silver Point Capital and GE Capital.



The Grapevine

Fri, 14 Jul 2017
Hernan Quipildor has left his post as Natixis’ as head of collateralized loan obligation banking in Europe, apparently to work outside the industry. Quipildor had been employed in Natixis’ London office since 2005. He previously analyzed collateralized debt obligations at Moody’s. Natixis has led one CLO in Europe this year, placing $406 million of bonds for Rothschild unit Five Arrows Managers in...



The Grapevine

Fri, 14 Jul 2017
Subprime auto lender Sierra Auto Finance has a new head of capital markets. The recruit, Tom Davidson, most recently was employed from 2000 to September 2016 at GE Capital, where his duties included oversight of securitization activities. He also has worked at Donaldson, Lufkin & Jenrette and Arthur Andersen. Dallas-based Sierra has completed one securitization so far, placing $135 million of bonds in June...



The Grapevine

Fri, 14 Jul 2017
The sentencings of former RBS traders Matthew Katke and Adam Siegel have been postponed one year, at the request of the U.S. Justice Department. The new date: Sept. 14, 2018, in U.S. District Court in Hartford. Both men pleaded guilty in 2015 to one count of securities fraud for overstating structured-product prices to clients, but have served as cooperating witnesses in similar cases. In explaining the delay, prosecutors said Katke and Siegel...



The Grapevine

Fri, 14 Jul 2017
Nord/LB has an opening for a New York-based senior associate or associate director who would aid in origination and portfolio-management functions for the bank’s sole commercial-paper conduit, Hannover Funding. That vehicle funds a mix of assets in the U.S., Europe and Asia. It has almost $2 billion of its securities outstanding. Candidates can email resumes to group head Ed Weber at...



The Grapevine

Fri, 14 Jul 2017
Former mortgage-bond salesman Joel Katz has started at financial-engineering firm Thomas Ho Co. as head of capital markets, a role in which he is overseeing a new service that aids buyers and sellers in incorporating analytics and regulatory reports into their whole-loan trades. Eventually, the product could be used for structured-product transactions. Katz had been working at advisory firm Second Act Capital since September 2016. His former...



The Grapevine

Fri, 14 Jul 2017
Senior vice president David Nathanson is no longer working at Morningstar. Nathanson had joined the rating agency in 2014, assuming a key role in the development of its asset-backed bond business. Word has it he is joining an issuer. He previously spent time at Moody’s, Deutsche Bank and Citigroup.



The Grapevine

Fri, 14 Jul 2017
Fitch is seeking an analyst for its New York office. The recruit would rate new bonds and perform surveillance on existing ones under group heads John Bella and Andreas Wilgen, with a focus on deals backed by student loans, auto loans, credit-card receivables and personal loans. He or she also would cover commercial-paper conduits. Fitch is focusing on candidates with 3-7 years of experience. Applicants can email resumes to Jennifer Gold at...



The Grapevine

Fri, 14 Jul 2017
Renew Financial, an Oakland-based issuer of bonds backed by energy-efficiency loans, has added a member to its capital-markets team. Sei-Hyong Park had been employed since 2015 at analytics firm T-Rex Group. He also has worked at Fortress Investment, DBRS, Bank of America and Lehman Brothers. Renew has completed five securitizations totaling $556.8 million since September...



Unrelenting Supply Marks 2017 Midpoint

Fri, 07 Jul 2017
This year’s unexpected surge in structured-product issuance shows no signs of letting up.Worldwide sales of new asset-backed bonds, collateralized loan obligations, residential mortgage securities and commercial mortgage paper totaled $356.6 billion during the first half. That amounted to a 26% jump from the year-earlier count of $283 billion, according to Asset-Backed Alert’s ABS Database.Compare that to a 1% increase forecast by a...



Amazon Checking Out Issuance Program

Fri, 07 Jul 2017
Amazon.com is exploring securitization.The offerings would be backed by small-business loans written via the online retail giant’s fast-growing Amazon Lending unit. Executives from the company already have held informal discussions with potential underwriters, including Citigroup and J.P. Morgan, while reaching out to rating agencies for feedback on the grades they might assign to the securities.They also have attended industry conferences...



Barclays to Recommence Trading in Europe

Fri, 07 Jul 2017
Barclays is back in the business of trading asset- and mortgage-backed bonds in Europe.The push got under way this week with the hiring of former Credit Suisse staffer Pratik Gupta. He oversees trading of all mortgage bonds, along with floating-rate paper backed by consumer assets — including credit-card receivables, auto loans and personal loans.It’s unclear how many more additions are planned, although Barclays representatives were...



Wells Places Spotlight on Trustees

Fri, 07 Jul 2017
Mortgage-bond buyers are reexamining their exposures to trustees in the wake of Wells Fargo’s move last week to withhold $94 million from investors in 20 deals.Wells’ action applied to 20 securitizations issued by Bank of America in 2004 and 2005, with a combined face value of $540 million. Wells’ justification: It needs the money to defend itself against a lawsuit from bondholders including BlackRock and Pimco that lost money...



CAN Gets Lifeline From Varadero

Fri, 07 Jul 2017
In what amounts to a rescue of the troubled small-business lender, CAN Capital has lined up a capital infusion from investment firm Varadero Capital.The package encompasses an unspecified stake in CAN, along with a line of credit.CAN stopped writing new loans and suspended its leadership amid a late-2016 discovery that software deficiencies had led it to book some $8 million of delinquent loans as current. With Varadero’s backing, the New...



Lehman Settles With MBS Holders

Fri, 07 Jul 2017
A federal bankruptcy court judge has approved a settlement of a long-running dispute between the estate of Lehman Brothers and institutional holders of mortgage bonds issued by the once high-flying investment bank.Under the terms of the agreement, Lehman Brothers Holdings is expected to pay bondholders at least $2.4 billion, but it could be more than a year before all of them receive the money.The matter involves 244 mortgage-bond deals completed...



Tech Vendor Seeks Backer

Fri, 07 Jul 2017
Aspire Financial Technologies is in play.The Toronto company told clients last week that it had hired merchant bank SenaHill Partners to find a partner willing to supply a capital infusion, possibly through a purchase of its business. Details of the effort remain fuzzy.Aspire’s offerings include a program called Aspire Gateway that encompasses loan-analytics, risk-management and reporting functions for use by loan originators, investment...



Loomis Sayles Building NPL Book

Fri, 07 Jul 2017
Loomis, Sayles & Co. is placing a big bet on nonperforming mortgages.The Boston investment firm has set out to raise an initial $1 billion that it would use to buy pools of the accounts. It’s unclear if the portfolios would be structured as hedge funds, mutual funds or some other type of vehicle.Loomis could securitize the loans down the road, potentially after rehabilitating them. “They are looking to be a big player in the NPL...



Nomura Traders Seek January Retrial

Fri, 07 Jul 2017
Following a partial mistrial, attorneys representing former Nomura traders Michael Gramins and Ross Shapiro are asking for Jan. 29, 2018, as the date for a potential retrial.The request was filed with U.S. District Court in Hartford on June 29.Gramins, Shapiro and former colleague Tyler Peters were accused of overstating mortgage-bond prices to investors. On June 15, a jury convicted Gramins of a single conspiracy charge while remaining...



NewStar Takes Over Rival's CLOs

Fri, 07 Jul 2017
NewStar Financial has purchased the rights to manage two collateralized loan obligations issued by Fifth Street Asset Management.The agreement encompasses a $309.5 million deal that priced in January 2015 and a $416.6 million transaction completed that September, both under the Fifth Street Senior Loan Fund label. Fifth Street hasn’t returned to market since then, presumably because the Dodd-Frank Act’s risk-retention rule made...



The Grapevine

Fri, 07 Jul 2017
Morningstar has added a senior vice president to its ranks. Derek Moran started in the agency’s New York office today, grading both asset-backed bonds and collateralized loan obligations under managing director Brian Grow. Moran previously managed some $4 billion of structured-product investments at Merganser Capital. He started there in 2007, following stops at Wellington Management, DST International, Bloomberg and...



The Grapevine

Fri, 07 Jul 2017
Citadel SPV, which aids in the formation, governance and administration of special-purpose vehicles, has added a senior director with a focus on Delaware corporations to its ranks. Glenn Kenton until recently was a partner at Wilmington, Del., law firm Richards Layton, where he started in 1985. He served as Delaware’s Secretary of State before that — a position in which he helped lead banking-deregulation...



The Grapevine

Fri, 07 Jul 2017
Trading, clearing and data company Intercontinental Exchange is seeking a senior structured-product analyst. The recruit would be stationed in New York, working with teams that develop software for use across the asset- and mortgage-backed bond markets.Bank of America has an opening on its asset-backed securities banking team in New York. The recruit would handle analysis and structuring duties alongside about 30 other staffers whose coverage...



The Grapevine

Fri, 07 Jul 2017
BBVA Compass has hired an analyst with a background in securitization. Malou Fontanez joined the Birmingham, Ala., bank’s New York office around the beginning of June with an initial focus on auto loans, credit-card accounts and mortgages. While BBVA doesn’t currently securitize those assets, some view it as an issuing candidate. Fontanez had been employed from 2007 to 2016 at Portigon, where she handled investor-reporting duties for...



The Grapevine

Fri, 07 Jul 2017
BlackRock has added a credit-risk analyst to its Washington office. The recruit, Jonathan Price, arrived in June from E-Trade. He was employed there since 2015, following a stint at structured-product analytics shop RiskSpan.



The Grapevine

Fri, 07 Jul 2017
Online small-business loan originator Funding Circle has hired a head of capital markets for the U.S. — a position that includes interaction with companies that might securitize the London firm’s accounts. Joanna Karger arrived in Funding Circle’s San Francisco office last week from Renew Financial, where she helped arrange securitizations of Property Assessed Clean Energy loans. Karger started there in 2009, following stops at...



The Grapevine

Fri, 07 Jul 2017
Attorney Jonathan Joshua has set up his own legal practice in New York, with a focus on matters related to consumer and small-business lending. Joshua was working from April 2016 until this May as general counsel at online personal lender Pave, which is shutting down. His former employers also include Power Pyles, Sallie Mae and Arrow Financial. His website is...



The Grapevine

Fri, 07 Jul 2017
Paul Mangione of advisory firm Fort Schuyler Advisors has arranged a gathering of investors in risk-transfer bonds issued by Fannie Mae and Freddie Mac. The get-together takes place at 6 p.m. on July 18. The location: Fordham University’s McNally Amphitheater, 140 West 62nd Street in Manhattan. Li Chang, the founder of data company Recursion, will speak at the event. Mangione, a former Apollo Global Management executive, set out last year to...



Rabobank Unit Mapping Equipment Program

Fri, 30 Jun 2017
Equipment-financing giant De Lage Landen Financial is setting up a securitization program.The Rabobank unit is expected to start issuing in early 2018, with its initial deal totaling $500 million to $1 billion. Eventually, it could come to market quarterly.Rabo likely will play a key role in structuring and distributing the offerings.De Lage Landen, also known as DLL, would draw the collateral from a program through which it offers loans and...



European Buysiders Sizing Up US CLOs

Fri, 30 Jun 2017
European investors are showing an increasing interest in U.S. collateralized loan obligations.While the amount of capital deployed so far has been modest, issuers said they have been talking to banks and pension systems in the U.K., Germany, France, Switzerland and some Scandinavian nations. Most of the discussions have revolved around senior paper.The activity has been reflected, in part, in moves by some managers to structure their deals so...



No More Monopoly in Bookrunner Ranking

Fri, 30 Jun 2017
Bank of America and Citigroup may have loosened J.P. Morgan’s longstanding grip on the structured-product underwriting crown.The three banks are arriving at the midpoint of 2017 in a close race for the lead among bookrunners of asset-backed bonds, collateralized loan obligations and residential and commercial mortgage securities worldwide. Citi appears to hold a slight lead, with more than $40 billion of transactions year-to-date, according...



SoFi Sticks With Funding Formula

Fri, 30 Jun 2017
Social Finance is assuring investors that its asset-backed bond volume won’t shrink if it receives a federal bank charter.SoFi on June 12 submitted an application to the FDIC seeking permission to create a Utah-based operation called SoFi Bank that would take deposits and offer credit cards. With the move, structured-product buyers have questioned when the San Francisco parent company might use deposits to fund some of its student loans,...



Payday Lender Mulls ABS Issuance

Fri, 30 Jun 2017
Payday lender DFC Global is eyeing securitization as a funding source.The Malvern, Pa., firm has begun recruiting for a newly created position with responsibilities that include developing an asset-backed bond issuance program. DFC — formerly known as Dollar Financial Corp. — operates 1,200 retail outlets in the U.S., Canada, U.K. and five other countries.The initiative appears to be in response to regulations that are expected to...



CLO Asset Source Vanishing

Fri, 30 Jun 2017
Collateralized loan obligation issuers no longer view liquidations of pre-credit-crisis transactions as a meaningful source of assets for their new deals.The volume of pre-crisis CLOs outstanding stood at $27 billion at the end of the first quarter, down from $64 billion a year earlier and $98.1 billion at the same point in 2015, according to Wells Fargo.Along the way, the managers of those deals often have repaid investors by selling their...



New Twists on Whole-Business Deals

Fri, 30 Jun 2017
Issuers of whole-business securities are getting creative.Recent offerings by Coinstar and Domino’s Pizza featured novel deal structures designed to attract more-diverse groups of investors. A $1.9 billion transaction that Domino’s priced on June 12, for example, included a floating-rate tranche — perhaps the first of its kind for a securitization of whole-business cashflows. Sources said it was aimed specifically at banks,...



Trump Sparks Covered-Bond Buzz

Fri, 30 Jun 2017
President Trump’s nominee to head the FDIC is seen as open to removing a regulatory roadblock to U.S. covered-bond sales.Shaping that view is James Clinger’s work as chief counsel for the House Financial Services Committee, which in 2010 approved a bill that would have created a framework for covered bonds in the States. That measure, like others that followed, never made it to a full House vote.The reason: The FDIC, led by Sheila...



More CLO Refis On the Way

Fri, 30 Jun 2017
Collateralized loan obligation issuers are preparing another wave of transactions designed to refinance their existing deals.The exchanges, as many as 40 in all, are expected to coincide with a cluster of quarterly payment dates in and around the week of July 17. Most will take the form of so-called resets in which the replacement CLOs will come with a new investment period — and thus will be subject to the Dodd-Frank Act’s...



TIG Seeks More Buying Power

Fri, 30 Jun 2017
TIG Advisors is attempting to attract fresh capital for its main structured-product fund.It’s unclear how much the New York firm hopes to raise for the vehicle, TIG Securitized Asset Fund. But it presumably hopes to place the vehicle back on a growth trajectory that stalled in recent years.Between TIG Securitized Asset Fund, a less-liquid product called Sunrise Master Fund and related separate accounts, TIG’s structured-product unit...



Silvermine Nudges Back Into Market

Fri, 30 Jun 2017
Long locked out of the market, Man Group unit Silvermine Capital is refinancing some of its existing collateralized loan obligations.The effort started with a June 21 transaction that replaced the Stamford, Conn., firm’s $413 million Silver Spring CLO, originally issued in August 2014. Barclays returned as bookrunner on that offering.Silvermine now is attempting to refinance an April 2014 transaction called Silvermore CLO that totaled...



The Grapevine

Fri, 30 Jun 2017
Portfolio manager Allen Fu has left Hildene Capital’s structured-product desk. Fu arrived at the Stamford, Conn., hedge fund shop in March 2016 from RBC Capital, where he headed collateralized loan obligation trading. He was at Citigroup before that.



The Grapevine

Fri, 30 Jun 2017
William Jennings passed Finra’s Series 24 examination on June 13, giving him the ability to again serve as a “general securities principal.” The designation appears to confirm indications that the former Jefferies executive would play a supervisory role on the structured-product desk at broker-dealer Hunt Financial, which he joined in March. Jennings was pushed out of Jefferies in February 2014 as a result of the U.S. Justice...



The Grapevine

Fri, 30 Jun 2017
Meanwhile, Hunt Financial has added Raffaele Piu to its structured-product sales team. Piu had been employed since September at Mesirow Financial, where he dealt in products including asset-backed securities, residential mortgage bonds and commercial mortgage paper. He previously worked at CapRok Capital and RBS. At Hunt, a New York unit of Hunt Cos., Piu works alongside some 30 traders and sales professionals brought on board in recent months as...



The Grapevine

Fri, 30 Jun 2017
Mortgage-bond trader Jason Kim jumped this week to investment-banking firm Imperial Capital from Oppenheimer & Co. Kim held the title of executive director in Oppenheimer’s New York office, which he joined in 2014. He also has worked at JVB Financial, UBS, PrinceRidge, Auriga USA, Terwin Capital, Deutsche Bank, Merrill Lynch and Donaldson, Lufkin &...



The Grapevine

Fri, 30 Jun 2017
Morningstar added two members to its structured-product rating team this week. John Nagykery joins the agency as an assistant vice president covering asset-backed securities and collateralized loan obligations. He was employed since 2012 at securitization structuring and administration shop Prime II Management, with a focus on CLOs. Jie “Jenny” Yu, also an assistant vice president, is grading mortgage bonds. She was working at J.P....



The Grapevine

Fri, 30 Jun 2017
Trader Chaka Wade has left Lehman Brothers Holdings, where he was helping to unwind a multi-billion-dollar portfolio of mortgage bonds and derivatives. Wade arrived in the New York post in 2010 from Black Swan Consulting. He also has worked at Citigroup, Natixis and State Street. His plans are unknown.



The Grapevine

Fri, 30 Jun 2017
Director Maria Oliver will leave Citigroup’s Sydney office in the coming weeks. Oliver, whose work has included arranging mortgage-bond deals, joined the bank in 2005 from a credit-analyst post at Westpac Banking. She also has worked at Credit Suisse and KPMG. She will work her last day at Citi in the coming weeks, with plans to join a new employer in...



The Grapevine

Fri, 30 Jun 2017
Societe Generale has an opening for a collateralized loan obligation structuring specialist in New York. The new recruit would help assemble new deals and work with rating agencies, reporting to CLO chief Harry Huang. SocGen has been working on a buildup of its CLO-underwriting unit, which has led two transactions since a 2014 regrouping. Most recently, the group ran the books on a $407.9 million transaction for American Financial on March...



BlackRock Summons Issuers for ETF Plan

Fri, 23 Jun 2017
BlackRock is imploring asset-backed bond issuers to boost their deal volumes.The push comes as part of the planning for an exchange-traded fund called iShares Consumer Asset-Backed Securities ETF. With BlackRock envisioning the vehicle as possessing massive buying power — some think it could reach $100 billion — the firm is concerned that there might be too few deals flowing into the market to fill its portfolio.To that end, BlackRock...



Income Verifications Catch Eye of Regulators

Fri, 23 Jun 2017
An SEC investigation of online personal-loan originators is zeroing in on possible misrepresentations of borrower-income reviews.With several securitization pools facing cashflow shortfalls, the regulator launched the probe about a year ago with a broad focus on loan disclosures. Now, it apparently is taking a closer look at whether certain originators are violating securities law by reporting unverified or incorrect statements of...



Regulatory Relief Seen for European Insurers

Fri, 23 Jun 2017
European Union regulators are considering market-friendly adjustments to their Solvency 2 initiative.Word of the changes follow a May 30 compromise between the European Commission and the European Parliament that will afford more favorable capital-reserve treatment to most holders of securitized products deemed “simple, transparent and standardized.” It seems that the commission wants to see similar changes to Solvency 2, which...



Ratings Fuel Risk-Transfer Rally

Fri, 23 Jun 2017
An ongoing rally in the values of risk-transfer bonds issued by Fannie Mae and Freddie Mac is gaining steam.Driving the accelerated improvements are expectations that a new round up upgrades is on the way from Moody’s and Fitch, which already have raised their ratings on dozens of classes of the securities since mid-2016. Indeed, a June 16 report from Bank of America predicts the two agencies will upgrade 23 tranches over the next 18 months...



MFA Maps Bond-Issuance Program

Fri, 23 Jun 2017
Look for MFA Financial to become a regular issuer of bonds backed by rehabilitated home loans after its debut offering met with strong demand.The mortgage REIT is eyeing the fourth quarter for a follow-up transaction, after which it would settle in to an issuance routine of 2-3 deals annually, sources said. The average deal size is expected to exceed $200 million, compared to $159.5 million for an offering MFA priced on June 6 via underwriter...



Investors Stay the Course, for Now

Fri, 23 Jun 2017
Asset-backed bond investors shrugged off the Federal Reserve’s June 14 interest-rate hike, but are increasingly perplexed about how to position their portfolios amid conflicting market signals.For the second time this year, the Fed hiked short-term rates by 25 bp — increasing the benchmark to 1.25%. At the same time, it issued guidance on a long-awaited plan to unwind its massive bond portfolio, the result of years of...



CLO Traders Bemoan Weak Supply

Fri, 23 Jun 2017
Collateralized loan obligation traders are fretting over a proliferation of buy-and-hold investors.At issue is a trend in which secondary-market activity has weakened in recent months, reaching particularly low levels in May. The cause, in part, has been a lack of interest from buyers, with low volatility turning off those that focus on trading gains and others tapping a healthy flow of new deals to fill their portfolios.But with values high, why...



Trade Groups Rally for Originators

Fri, 23 Jun 2017
Several trade groups have registered their opposition to a court case that challenges the practices of marketplace lenders.The American Bankers Association, Clearing House Association, Independent Community Bankers of America, Loan Syndications and Trading Association, Marketplace Lending Association and New Jersey Bankers Association expressed their opinions in three friend-of-the-court briefs filed from April 28 to May 19 with U.S. District...



Goal Tees Up Student-Loan Deal

Fri, 23 Jun 2017
Goal Structured Solutions is preparing its next securitization of private student loans. The offering is expected to hit the market in the next week or so with a projected size of $50 million. The San Diego company will distribute the securities privately, without an underwriter. CORRECTION (6/30/17): This article contained errors. Goal Structured Solu-tions of San Diego is planning a securitization of private student loans, not Goal Financial of...



Auto Deals Roar Back to Life

Fri, 23 Jun 2017
A recent interruption in the supply of fresh auto-loan securities appears to be over.Just $1.4 billion of new transactions priced in the asset class over the first half of this month, with none completed the week of June 12. But the week of June 19 saw more than $6 billion of offerings hit the market — encompassing a mix of securities backed by prime-quality loans, subprime loans, leases and dealer-floorplan credits (see Initial Pricings on...



Online Lender Calls it Quits

Fri, 23 Jun 2017
Online personal lender Pave has thrown in the towel.The company, whose loans once were seen as candidates for securitization, stopped writing new accounts on June 16. It currently is attempting to sell a small portfolio of receivables.Former Goldman Sachs staffer Oren Bass founded Pave in 2011 with a focus on prime-quality loans, and was able to line up a few hedge fund operators as buyers of those accounts. But it lost momentum last year amid a...



Investors Snap Up Santander Deal

Fri, 23 Jun 2017
Santander Consumer USA encountered intense investor demand for its first public offering of bonds backed by “deep subprime” auto loans.The $1 billion deal priced June 21 under the Drive Auto Receivables Trust label, with bookrunners Citigroup, Deutsche Bank and RBC Capital fielding four times as many offers as they could accommodate. The demand was particularly notable given that eight other auto-related securitizations priced this...



Online-Loan Fund Off the Ground

Fri, 23 Jun 2017
A Toronto investment bank has launched a hedge fund that invests in online personal loans from the U.S. — assets it eventually might securitize.Kilgour Williams of Toronto began investing this week via its KiWi Private Credit Fund, tapping an undisclosed amount of capital from a single institutional investor.The fund, designed to give Canadian investors exposure to U.S. borrowers, is buying loans, at least initially, from Lending Club and...



The Grapevine

Fri, 23 Jun 2017
Matias Langer no longer is employed at Moody’s. Langer had joined the agency’s New York office in 2004, overseeing ratings for all consumer-asset securitizations — such as those backed by auto loans, credit-card receivables, student loans, personal loans, solar-panel leases and mobile-device cashflows. He also has spent time at MortgageIT and John W. Loofbourrow...



The Grapevine

Fri, 23 Jun 2017
Kroll has hired a longtime industry professional to head a relationship-management group focused on financial institutions that issue structured products. David DeMilt started in the agency’s New York office this week as a managing director, moving over from a business-development role he held at fund operator Z Capital since July 2016. DeMilt previously worked at Oaktree Capital. Before that, he pitched Goldman Sachs’ distribution...



The Grapevine

Fri, 23 Jun 2017
How do structured-finance professionals spend their “gardening leaves” between jobs? Before starting in CIFC Asset Management’s New York office in January, Jason Zeigler took a few extra weeks off to film an appearance on the Bravo reality-drama program “Below Deck Mediterranean.” In a two-installment episode that initially aired June 19 and concludes June 26, Zeigler rented a fully staffed yacht to sail the Adriatic...



The Grapevine

Fri, 23 Jun 2017
Word is circulating that Don Potts is on his way out of Capital One, where since 2011 he has been leading an effort to offer warehouse financing to buyers of marketplace-originated personal loans and small-business loans. That initiative had helped spur growth for originators including Lending Club and Prosper Marketplace. CapOne scaled it back last year amid an industry-wide downturn. Before joining the McLean, Va., institution, Potts spent time...



The Grapevine

Fri, 23 Jun 2017
PGIM has added an associate to its structured-product research desk. Diana Lande arrived in the $1 trillion-plus investment shop’s New York office in May, moving over from Morningstar. She had been employed as an asset-backed securities rating analyst there since 2015, and before that spent time at Moody’s and Chapman & Cutler. PGIM was known as Prudential Investment Management until...



The Grapevine

Fri, 23 Jun 2017
Online business-loan originator BlueVine Capital is seeking a head for its capital-markets team. The recruit would be involved in plans by the Redwood City, Calif., to funnel its loans into asset-backed bond deals, working alongside finance specialist Ana Sirbu and risk-management head Ido Lustwig. BlueVine offers lines of credit and invoice-factoring facilities to small...



The Grapevine

Fri, 23 Jun 2017
Troubled small-business lender CAN Capital has laid off an estimated 50 staffers in recent weeks, feeding speculation that the New York operation is in its final days. The reductions came as a potential takeover of the operation by Strategic Funding fell apart. CAN has been on the ropes since late last year, when an accounting error wiped out the over-collateralization cushions for its lone securitization. Senior investors in that deal still are...



Former RBS Executives Face Criminal Probe

Fri, 16 Jun 2017
Federal prosecutors are investigating some former RBS executives for their roles in a series of mortgage securitizations the bank issued on the eve of the financial crisis.The U.S. Attorney’s Office in Boston sent so-called target letters to several former RBS mortgage professionals after talks between the bank and the U.S. Justice Department broke down in December, a source said. The criminal probe, which began in 2012, is focused on the...



NPL Offerings to Dwindle as RPLs Take Off

Fri, 16 Jun 2017
A long-awaited transition appears to be taking place in the market for bonds backed by dented mortgages.Offerings backed by nonperforming loans are forecast to dry up in the next year or two as banks and housing agencies deplete their portfolios of such accounts. But the opposite is taking place for reperforming-loan deals.Indeed, sources are describing 2017 as an inflection point at which nonperforming-mortgage securitizations will become less...



SFIG Centralizes MBS-Conference Calendar

Fri, 16 Jun 2017
The Structured Finance Industry Group is hosting what it envisions as a single main-event conference for mortgage-securitization professionals.The “SFIG Mortgage Finance Symposium” is scheduled for Nov. 7-8 at the Conrad Hotel in New York. It already has a projected headcount of 400-700, representing a mix of issuers, investors and service providers involved in all aspects of the market for non-agency mortgage bonds.The idea is to...



Treasury Sounds Friendlier Tone

Fri, 16 Jun 2017
Structured-finance professionals are viewing the U.S. Treasury Department’s proposed regulatory overhaul as holding the potential to breathe new life into the market, while cautioning that any resulting changes could be slow to develop.The new framework is outlined in a 147-page report, titled “A Financial System that Creates Economic Opportunities,” that was commissioned by President Trump in February and issued by Treasury...



As CLOs Get Silent Treatment

Fri, 16 Jun 2017
The U.S. Treasury Department’s list of suggested changes to financial-market controls was silent on whether collateralized loan obligations should be exempt from the Dodd-Frank Act’s risk-retention requirement.Following extensive lobbying for such a change, CLO professionals had been looking to the June 12 report for signs of how the Trump Administration might incorporate their suggestions into a broader regulatory rollback. Now, many...



Lending Club Tweaks Deal Format

Fri, 16 Jun 2017
Lending Club’s latest personal-loan securitization offers an example of how issuers in the asset class are insulating investors from risks associated with local usury laws.At issue are continuing maneuvers by officials in states including Colorado, Maryland, Pennsylvania and West Virginia that could render marketplace-originated accounts with high interest rates unenforceable.In Lending Club’s case, part of the answer was to exclude...



Payday Lender Mulls Bond Program

Fri, 16 Jun 2017
With a new management team in place, payday lender Check ’n Go is planning an expansion that it could fund through securitization.While details of the initiative still are developing, a source said the operation hopes to write more loans online — and is exploring asset-backed bonds alongside several other potential capital-raising mechanisms. For now, it is funneling its receivables into credit lines from non-bank lenders.The...



Banks Slash Warehouse Charges

Fri, 16 Jun 2017
Warehouse-financing costs are falling for originators of home loans that don’t meet the Consumer Financial Protection Bureau’s qualified-mortgage standards.The trend reflects increasing competition among investment banks that want to underwrite the companies’ eventual securitizations, with sources pointing to Citigroup, Credit Suisse, Deutsche Bank, Nomura and Wells Fargo as attempting to win their business by charging less for...



Trace Disclosures Still in Limbo

Fri, 16 Jun 2017
Finra has further delayed the release of trade-by-trade details for secondary-market sales of mortgage bonds and collateralized loan obligation notes via its Trade Reporting and Compliance Engine.Following repeated setbacks in the past few years, the announcement of an implementation date was widely expected by the end of the first quarter. But Finra now is looking at late this year or early in 2018 to set a timeline.The latest delay is due in...



ABS Outstanding Dips Further

Fri, 16 Jun 2017
The proportion of consumer receivables funded through securitization continued to shrink in the first quarter, despite a surge of asset-backed bond issuance.The percentages of outstanding auto loans, student loans, credit-card balances and mortgages residing in securitization pools all fell during the first three months of the year, according to S&P.“While it is true that auto issuance is steady and robust, and card issuance is way up over...



SEC Clears "Deep Subprime' Shelf

Fri, 16 Jun 2017
Just days after getting a green light from the SEC, Santander Consumer USA is in the market with a securitization that marks its first public offering of bonds backed by “deep subprime” auto loans.The Dallas lender received word on June 9 that the regulator had approved changes to its Drive Auto Receivables Trust that bring it into compliance with new investor-disclosure requirements under Regulation AB. Santander uses that entity to...



Sunnova Develops Follow-Up Deal

Fri, 16 Jun 2017
Sunnova Energy is preparing its second securitization of solar-panel leases.The offering, with an estimated size of $200 million, is expected to hit the market in the next few months with Credit Suisse running the books.Credit Suisse also led Sunnova’s first asset-backed bond offering, a $254.8 million transaction that priced April 11.Talk of the new offering comes amid a flurry of fresh financing activity from Sunnova, most recently in the...



The Grapevine

Fri, 16 Jun 2017
Lesi Zuo will leave his post as Standard Chartered Bank’s head asset-backed bond banker at the end of this month. Zuo, who is stationed in Hong Kong, arrived at Standard Chartered in 2002 following stops at Bank of America and ABN Amro. He is known for arranging some of China’s earliest asset-backed bond deals, including a number of offerings backed by auto loans, and for helping to start the China Securitization Forum. Word has it...



The Grapevine

Fri, 16 Jun 2017
ED&F Man has hired a trader of collateralized debt obligation bonds backed by trust-preferred securities — products where it hasn’t been active until now. Jashin Patel, who also deals in non-agency mortgage bonds, arrived in the London firm’s New York office last week. He had been employed at Cantor Fitzgerald since 2013, and before that was at Deutsche Bank. ED&F’s structured-product traders mainly have dealt in...



The Grapevine

Fri, 16 Jun 2017
Vaibhav Piplapure has left his London-based post as Credit Suisse’s head of asset-backed bond banking in Europe. Piplapure arrived at Credit Suisse in 2015 from KKR, which he had joined the year before via its purchase of a firm called Avoca Capital where he led a credit-product investment unit. He had started there in 2012, following a stint at Credit Suisse that included time as head of the bank’s European structured credit product desk. He...



The Grapevine

Fri, 16 Jun 2017
Count collateralized loan obligation trader Timur Yurtseven among a group of structured-product specialists who will join HPS Investment in July. Yurtseven’s name is the third to emerge in the shift, which is being led by Scott Eichel and also includes mortgage-product specialist Keith Lind. All three men had been working at hedge fund operator Brevan Howard Asset Management since 2015 and before that were at RBS, where Eichel led the U.S....



The Grapevine

Fri, 16 Jun 2017
Stefan Wolf started in recent weeks as chief investment officer at small-business lender QuarterSpot, an addition that suggests the Wayne, N.J., firm is looking at asset-backed bond deals as a funding source. Indeed, Wolf helped build the first-ever deals backed by marketplace-originated personal loans at prior employer Eaglewood Capital, where he started in 2013. Wolfe also has worked at Silverleaf Resorts, LP Investments, Whitecap Advisors,...



The Grapevine

Fri, 16 Jun 2017
MUFG trader Zachary Emig is running for Congress. The campaign has him seeking the Democratic nomination to run against Republican incumbent Dan Donovan in 2018 to serve as the representative for New York’s 11th District, which covers Staten Island and parts of Brooklyn. Emig, who hasn’t held political office before, has been trading a mix of structured products at MUFG since 2015. He also has worked at Deutsche...



The Grapevine

Fri, 16 Jun 2017
Wells Fargo has an opening for a vice president who would develop cashflow models for deals backed by consumer assets, including auto loans, credit-card receivables and student loans. The Charlotte-based recruit would be in the banking division. CORRECTION (6/23/17): This article has been revised. The original version gave an incorrect location within the institution. The position would be in its banking division, not reporting to John McElravey...



Reg AB Casts Scrutiny on Subprime Autos

Fri, 09 Jun 2017
Investors and rating agencies are considering whether data that became available with the SEC’s Regulation AB update should prompt harsher treatment of subprime auto-loan securities.In digesting the loan-by-loan information disclosures made under the revised reporting rules, which took effect on Nov. 23, industry participants especially have taken an interest in weaker-than-anticipated verification of borrower incomes in the asset class....



Jefferies' Jennings Returns at Upstart Broker

Fri, 09 Jun 2017
(SEE CORRECTION BELOW) Former Jefferies executive William Jennings is again employed in the structured-finance industry, this time at a small but growing brokerage firm.Jennings, one of the central figures in the government’s crackdown on improper structured-product trades, signed on with Hunt Financial in March. While his exact role hasn’t been disclosed, he presumably will hold a high rank among some 30 structured-product traders and sales...



Reassured Alphabet Back In Buying Mode

Fri, 09 Jun 2017
Google parent Alphabet has reversed a contraction in its asset-backed bond portfolio.Following a lengthy reduction in those holdings, indications heading into this year were that the Mountain View, Calif., company would remain on a similar path. But it instead boosted its asset-backed securities exposures from $1.9 billion at yearend to $2.5 billion on March 31.The additions appear to have accelerated since then, with bankers and issuers...



Pacific Life Unit to Issue CLOs

Fri, 09 Jun 2017
Pacific Asset Management plans to issue its first collateralized loan obligation.The $400 million offering, Trestles CLO, is expected to hit the market in the coming weeks with Natixis running the books. Pacific’s parent, Pacific Life of Newport Beach, Calif., is pledging to take equity stakes representing at least 5% of the deal and any follow-up offerings.The result: Pacific Asset Management’s CLOs would comply with the Dodd-Frank...



Alliance Data Lifting ABS Volume

Fri, 09 Jun 2017
Alliance Data Systems is telling investors they can expect to see more of its credit-card bonds.Alliance Data recently has been securitizing its private-label card accounts three times per year, with annual issuance totaling $1 billion to $1.4 billion. But in recent weeks, the Columbus, Ohio, company and its bankers have been spreading the word that it plans to increase the frequency of its offerings.Details are still being worked out, but...



NPL Issuers Rushing to Call Deals

Fri, 09 Jun 2017
Issuers of nonperforming-mortgage securities continue to exercise call options on record numbers of deals amid tightening spreads.A June 7 report from Wells Fargo shows issuers of bonds backed by nonperforming and reperforming loans last month called 14 transactions with a combined principal balance of $2.5 billion. That smashed a record set only a month earlier, when 11 deals totaling $1.6 billion were redeemed prior to maturity.Year-to-date,...



Bond Buyers Size Up Agency Plan

Fri, 09 Jun 2017
Investors in risk-transfer bonds issued by Fannie Mae and Freddie Mac see a possible downside to a proposal by the agencies to begin structuring the deals as Remics.Selling risk-transfer securities via Real Estate Mortgage Investment Conduits could place all but the top-rated classes out of reach for pension plans governed by the U.S. Labor Department’s ERISA rules. Pensions currently are permitted to purchase both senior and subordinate...



NewOak Adjusts Business Strategy

Fri, 09 Jun 2017
NewOak Capital is spinning off a unit that offers technological and administrative services to a mix of lenders, while expanding its presence as an asset manager.The spinoff will see the firm’s NewOak Credit Services unit recast as Oak Branch Advisors in the coming weeks. Chief executive Chad Burhance will lead the new firm, with lieutenant Yuri Yoshizawa continuing in her role as project manager.Meanwhile, NewOak Capital has hired Gary...



Fund Startup to Trade MBS

Fri, 09 Jun 2017
A newly forming hedge fund firm is aiming to invest in mortgage bonds, whole loans and homes.The San Francisco operation, 1Sharpe Capital, is led by former Cerberus Capital portfolio manager Rob Bloemker and Roofstock co-founder Gregor Watson. It registered with the California Department of Business Oversight in March, and is expected to file with the SEC in the coming months as its assets reach the $150 million threshold at which federal...



CLO Pools Further Depleted

Fri, 09 Jun 2017
Asset quality declined in March for collateralized loan obligations issued before the credit crisis.The weighted average rating factor for such deals in the U.S. deteriorated by 133 points to 2851 for the month, while worsening by 63 points to 2896 among European transactions, according to an index maintained by Moody’s. The scores, which express the health of the issues’ underlying borrowers, both are equivalent to a “B2”...



CarVal Tees Up RPL Bonds

Fri, 09 Jun 2017
CarVal Investors is shopping its next securitization of reperforming mortgages.The Cargill unit is offering the $382 million deal via its Mill City Mortgage Loan Trust.CarVal most recently completed a $395 million reperforming-mortgage securitization on March 13 with Bank of America and J.P. Morgan running the books. All told, it has sold $1.6 billion of such paper via four deals since entering the market in December 2015.The new transaction is...



Delinquencies Dent Subprime Auto

Fri, 09 Jun 2017
The proportion of delinquent accounts among pools of securitized subprime auto loans rose last month, reversing a trend in which the figure had dropped from a record 5.6% in January.According to an index maintained by Fitch, 60 day delinquencies ticked up 18 bp to 4.29% during the month ended May 15. At the same time, losses among subprime-loan pools fell 13 bp to 7.66%, down more than three percentage points since November. The mixed results...



The Grapevine

Fri, 09 Jun 2017
HSBC has hired former Kroll executive Mark Miller to oversee its institutional sales and trading desk, including distribution of structured products. Miller started in the bank’s New York office on June 5. He worked at Kroll from October 2016 until this May as a senior managing director responsible for business development and sales. He also has worked at BlackRock, Seaport Group, Bank of America, Citigroup and Salomon...



The Grapevine

Fri, 09 Jun 2017
Add Frank Skibo to the list of former RBS staffers scrutinized by the U.S. Justice Department. Skibo’s employment at RBS ended in January, a month after the Justice Department indicated to the bank that he might face civil or criminal charges as a result of trades he handled in 2006 and 2007. Skibo, a New York-based mortgage-bond trader, had been on board since 1997. He hasn’t been charged. But former RBS traders Matthew Katke and...



The Grapevine

Fri, 09 Jun 2017
Mortgage-bond salesman Patrick Cunningham has resigned from Jefferies to join the Chicago office of broker-dealer R.W. Baird & Co., where he’ll start after a gardening leave of 60 days. Cunningham was a managing director at Jefferies. He arrived there in 2009 from Oppenheimer & Co., and before that was at Lehman Brothers.



The Grapevine

Fri, 09 Jun 2017
Managing director Bruce Miller has left advisory firm Finacity, where he worked with new and existing customers to line up securitizations of trade receivables. Miller joined Finacity’s Stamford, Conn., office in 2011 from risk-management shop Digital Risk, and before that spent time at ING and Credit Suisse.



The Grapevine

Fri, 09 Jun 2017
Sales specialist Zachary Corson has taken a securitization-focused job at New York brokerage firm Falcon Square Capital. Corson most recently worked briefly at Brean Capital in 2016. Before that, he spent time at KGS-Alpha Capital and Hexagon Securities.



The Grapevine

Fri, 09 Jun 2017
Mortgage-bond researcher Neil Delap left Wells Fargo’s Charlotte office in recent weeks to join investment firm ArrowMark Partners. Delap had been working at Wells since 2015 as part of a team led by Vipul Jain, and before that was at TIAA. ArrowMark, known as Arrowpoint Partners until March, operates a mix of investment vehicles — some of which deal in structured products. The $12.1 billion firm also issues collateralized loan...



The Grapevine

Fri, 09 Jun 2017
Former Credit Suisse staffer Maggie Jiang has taken a job outside her specialty as a structured-product placement professional. In her new role, which she took in recent weeks, Jiang handles mergers-and-acquisitions, project-finance and warehouse-lending work as a senior vice president within Bank of China’s New York division. She had been employed on Credit Suisse’s sales desk from 2011 until yearend 2016, after working in a similar...



The Grapevine

Fri, 09 Jun 2017
James Vergara has signed on as head of capital markets at PACEfunding, an originator of Property Assessed Clean Energy loans that is eyeing securitization as a funding strategy. Vergara started on June 6 in the company’s Jacksonville office. He had been employed at PACE lender Spruce Finance since January 2016, and before that was at Deutsche Bank. PACEfunding writes loans in California, with plans to start lending in Florida and Missouri...



The Grapevine

Fri, 09 Jun 2017
Law firm Chapman & Cutler is seeking an associate for its structured-finance practice in Chicago. The recruit would work under Walt Begley as part of a team that mainly represents issuers and underwriters of credit-card securitizations. The group also has worked with online personal lenders, subprime auto lenders and equipment-finance companies.



Corrections

Fri, 09 Jun 2017
A June 2 article, “Big CLO Buyers Curtail Investments,” contained incorrect pricing information for a collateralized loan obligation from THL Credit. The deal’s senior notes priced at 123 bp over three-month Libor.



Contrasting Outlooks Mark Global Summit

Fri, 02 Jun 2017
Attendees of this year’s “Global ABS” conference are describing a divergence in their moods.In one group are larger bank and investment operations that are headed to the annual gathering hobbled by regulatory uncertainty and budgetary constraints — an environment marked by anemic issuance volume. In the other group are more-nimble buysiders who see the event as rich with opportunities.Both factions will be well represented...



Amex Developing Personal-Loan Offerings

Fri, 02 Jun 2017
American Express plans to issue personal-loan securities.The offerings would fund a new program through which AmEx began offers unsecured loans to pre-approved holders of its credit cards. A likely timeline would see the company accumulate the accounts through yearend with an eye toward a debut bond offering in 2018.The loans carry terms of up to three years and interest rates of 6.9% to 20%. Financing of up to $25,000 is available, with no...



Deutsche Targets Non-Qualified Mortgages

Fri, 02 Jun 2017
Deutsche Bank is positioning itself as an underwriter of bonds backed by home loans that don’t conform with the Consumer Financial Protection Bureau’s “qualified-mortgage” standards.Talk was circulating this week that Deutsche, which has had virtually no presence in the U.S. mortgage-bond market since the financial crisis, has been reaching out to originators of non-qualified accounts about funding their operations....



Ford Execs Eye Shift to Securitization

Fri, 02 Jun 2017
Ford is rethinking its funding strategy in light of recent executive shakeup, with an eye toward increasing its reliance on the asset-backed bond market.After the automaker regained an investment-grade credit rating in the wake of the financial crisis, it began gradually increasing its output of unsecured corporate debt while cutting back on securitization. The Dearborn, Mich., company currently funds about 35% of its receivables via sales of...



Investors Gasp Over Element Rumor

Fri, 02 Jun 2017
Asset-backed bond investors were rattled this week when the stock price of issuer Element Fleet Management took a nosedive.Shares of the Toronto company dropped 40% on May 31 on speculation that Carson Block was building a short position in the company. The swoon proved short-lived, as it became clear that Block was betting against another Canadian business, Asanko Gold.But for a brief time, asset-backed bond holders were left wondering if...



Big CLO Buyers Curtail Investments

Fri, 02 Jun 2017
J.P. Morgan, MUFG and Wells Fargo have ratcheted back their purchases of senior collateralized loan obligation notes.The banks’ moves come in response to what they view as insufficient yields in the wake of a spread-tightening trend that persisted through early 2017. Given the institutions’ positions as some of the market’s largest senior investors, their pullbacks have led to reports from issuers of increased difficulties in placing new...



Retailer Loans Beckon for CLO Shops

Fri, 02 Jun 2017
Collateralized loan obligation issuers are beginning to take the view that bad news from retailers could work in their favor.The values of loans to retailers have been falling in the wake of weaker-than-expected first-quarter earnings and a plethora of negative news, including recent bankruptcy filings by Payless and Rue 21. Indeed, loans to some of the most distressed retailers are trading at 50-60 cents on the dollar.But so far the prices of...



Lending Club Blueprint Emerging

Fri, 02 Jun 2017
Lending Club’s latest personal-loan securitization offers a glimpse of its new funding strategy.Like other major originators, the San Francisco company has been moving away from a pure marketplace-lending format and toward one in which it keeps some loans while selling others — and then works with the buyers to securitize their accounts alongside its own. The plan is to tap the market quarterly with separate deals backed by...



Loan Buyers Drive Europe MBS

Fri, 02 Jun 2017
Mortgage-bond specialists in Europe are pointing to a deal from TwentyFour Asset Management as the type of offering they expect to become more prevalent.TwentyFour’s offering was making the rounds with investors this week via underwriters Bank of America and NatWest. While the size of the transaction remains a moving target, it is known to be backed by the bulk of a £587.5 million ($760 million) portfolio of pre-credit-crisis U.K....



Uncertain Welcome for Public MBS

Fri, 02 Jun 2017
With Redwood Trust primed to resume selling public jumbo-mortgage bonds, some industry participants are preferring a wait-and-see approach to measuring demand for the paper.At issue are plans by Redwood to begin registering its deals under the SEC’s updated Regulation AB. Ever since word got out a few months ago that the Mill Valley, Calif., REIT was seeking approval of an issuing trust that would comply with the measure, the talk was that...



Colorado Utility-Fee Bill Still Alive

Fri, 02 Jun 2017
State lawmakers in Colorado are trying to resurrect a bill that would allow power companies to securitize special fees they assess their customers to cover the costs of shuttering coal-fired plants.The legislation, dubbed the Colorado Energy Impact Assistance Act, sailed through the General Assembly before stalling in the Senate last month. Senate leaders tabled a vote in the face of opposition from local leaders who fear the bill would give...



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

Fri, 02 Jun 2017
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...



SFIG Updating Members on Bill

Fri, 02 Jun 2017
The Structured Finance Industry Group has scheduled a June 2 conference call to bring its members up to date on the Financial Choice Act.The proposed legislation, sponsored by Rep. Jeb Hensarling (R-Texas), would overhaul financial regulations in the U.S. It was approved by the House Financial Services Committee on May 4 and is expected to be considered by the full House next week.SFIG’s call is intended to make sure the package’s...



The Grapevine

Fri, 02 Jun 2017
James Crispin left his London post as a managing director in charge of J.P. Morgan’s European asset-backed securities syndicate desk on May 18. His plans are unknown. Crispin joined J.P. Morgan from Merrill Lynch in 2008, and earlier worked at Credit Suisse. U.S. syndicate head Andy Cherna has absorbed his duties.



The Grapevine

Fri, 02 Jun 2017
Former mortgage-bond banker Brian Bernard has signed on as the head of capital markets at Hunt Financial, the broker-dealer arm of real estate investment firm Hunt Cos. He is based in Rye Brook, N.Y. In his previous role, Bernard signed on with Resource America in 2014 with the mission of building a jumbo-mortgage securitization program. But he was dismissed from that post in December. Bernard earlier led J.P. Morgan’s mortgage-bond team,...



The Grapevine

Fri, 02 Jun 2017
Jim Feeley is rumored to be leaving his post as head of Medley Management’s business-lending efforts and structured-product investments — a role in which he bought controlling equity interests in other companies’ collateralized loan obligations. Feeley is said to be pursuing a new investment position. He had arrived at New York-based Medley in 2014 from WhiteSquall Capital, where his work as a founding partner also included...



The Grapevine

Fri, 02 Jun 2017
Meanwhile, CVC Credit is interviewing senior collateralized loan obligation specialists who might replace Chris Allen, who moved to Medley Management in recent weeks. As a founding partner based in New York, Allen served as chief operating officer and head of the London firm’s CLO-issuing program. Day-to-day CLO operations continue to be overseen by Gretchen Bergstresser. CVC is a routine CLO issuer, with a $11.3 billion management...



The Grapevine

Fri, 02 Jun 2017
New York analytics firm T-Rex Group has hired an asset-backed bond professional. Nicole Lawrence started this week as a director focused on client development, after a year on the buy side as a portfolio manager at B Asset Manager. Before that, Lawrence was at PPM America in a stint dating back to 2005, and spent time at Moody’s and PricewaterhouseCoopers. T-Rex offers risk-analysis, asset-valuation and structuring services to issuers and...



The Grapevine

Fri, 02 Jun 2017
Online small-business lender OnDeck Capital laid off capital-markets analyst Joseph Gaworecki on May 8. Gaworecki had been employed at the company since 2014, most recently in a New York position that had him assisting in its asset-backed bond deals and loan sales. He also has spent time at Wells Fargo. OnDeck last completed a securitization in April 2016, when it placed $250 million of paper with Deutsche Bank running the...



The Grapevine

Fri, 02 Jun 2017
Kroll is seeking an in-house counsel for its structured-finance rating unit in New York. The agency is focusing on candidates with at least six years of experience in reviewing deal structures and documents in assets classes including auto loans, credit-card receivables, personal loans, timeshare loans and whole-business cashflows. Applicants can email resumes to...



The Grapevine

Fri, 02 Jun 2017
Ygrene Energy has an opening on its capital-markets team in Petaluma, Calif. The recruit’s duties would include helping to arrange the company’s asset-backed bond deals, which are backed by loans it writes under the Property Assessed Clean Energy program. Its most recent deal was a $176 million transaction that priced on April 21 with Deutsche Bank running the...



Agency Loans Marked for Private-Label MBS

Fri, 26 May 2017
In a break from tradition, banks are starting to incorporate high-balance agency mortgages into their private-label securitization pools.J.P. Morgan was the first out of the gate, pricing a $1 billion deal on Feb. 17 in which such loans accounted for 37% of the collateral. Another $1 billion transaction on May 24 had a 15% allotment for large agency accounts.Now, word has it that the bank could float an offering in the coming weeks that would...



Pedigreed CLO Pros Start Issuing Venture

Fri, 26 May 2017
Three former Hildene Capital executives have teamed up with a one-time MatlinPatterson partner to start a firm that would issue collateralized loan obligations.The Stamford, Conn., operation, Dislocation Capital, already has differentiated itself from many other startup CLO shops by lining up enough capital to keep 5% stakes in its first three deals — thus complying with the Dodd-Frank Act’s risk-retention rule.That backing, from a...



Jefferies Payout Revealed in Court Filing

Fri, 26 May 2017
Former Jefferies executive William Jennings received a $10 million severance payment from the bank when it forced him out, court documents show.The size of the payout was disclosed in a May 10 filing in U.S. District Court in New Haven, Conn., by attorneys representing former Jefferies trader Jesse Litvak as part of sentencing procedures tied to his federal securities-fraud conviction.While the information had appeared in documents tied to...



"Stacking' Prevention On the Rise

Fri, 26 May 2017
Data companies are racing to design programs that would root out fraud among online personal loans, including those bundled into asset-backed bonds.The efforts are geared mainly toward the prevention of “stacking,” a practice in which individuals borrow more than they should by simultaneously applying for multiple loans.ID Analytics began studying the tactic in October, and shared its findings with staff this month in a bid to create...



Aircraft-Lease Issuance Taking Off

Fri, 26 May 2017
Buysiders are buzzing over what appears to be an unusually robust pipeline of aircraft-lease securitizations.In the past few weeks, investors have caught wind of a number of leasing companies with deals in the works, including AerGen Leasing, Apollo Aviation, Avolon, Blackbird Capital, Castlelake, Emerald Aviation and Willis Lease. At $500 million to $1 billion apiece, those offerings are expected to boost full-year transaction volume to more...



Rating Firms Seek Changes to Index

Fri, 26 May 2017
Kroll and Morningstar are pushing Bloomberg to include issues they rate in a widely followed bond index.The Bloomberg Barclays U.S. Aggregate Bond Index, encompassing asset- and mortgage-backed securities, as well as Treasurys, corporate bonds and commercial mortgage bonds, currently is limited to deals rated by Moody’s, S&P or Fitch. Kroll and Morningstar have long maintained the universe of securities tracked by the index should be...



Cooldown Seen for ABS Issuance

Fri, 26 May 2017
After pumping out deals since the start of the month, U.S. asset-backed bond issuers are expected to pause — if only briefly.Bankers predict a quiet end to the month as issuers break for the Memorial Day holiday. The slowdown is seen lasting through perhaps the first week of June, after which deal volume is expected to mushroom again.The 40 deals totaling $25.8 billion that asset-backed bond issuers completed from May 1-25 lifted...



Risk-Transfer Initiative Aimed at REITs

Fri, 26 May 2017
Industry participants are zeroing in on the added amounts of risk-transfer bonds Fannie Mae and Freddie Mac could issue under an effort to structure some of the deals as Remics.Those who have analyzed the proposed changes peg the additional supply at up to $2 billion annually, on top of growth the sector already is experiencing. The reason: By offering the bonds via Real Estate Mortgage Investment Conduits, Fannie and Freddie could more easily...



US Bank Building Out Software

Fri, 26 May 2017
U.S. Bank’s corporate-trust unit plans to expand a popular technological program, this time offering it for use in the asset-backed bond market.The tool, called Pivot, already has driven considerable growth in U.S. Bank’s sector-leading presence in collateralized loan obligations. The bank plans to offer it for all asset-backed deals where it acts as trustee by midyear 2018, and is already discussing the system with issuers and...



Buyers Unfazed by Moody's Report

Fri, 26 May 2017
A Moody’s report questioning Santander Consumer USA’s collateral-review methods wasn’t enough to turn investors away from the company’s latest subprime auto-loan securitization.The May 17 paper said, among other things, that Santander verified the income for only 8% of the borrowers underpinning a deal it completed Feb. 23 — versus 64% for a sample transaction from General Motors Financial. It began circulating just...



Sales Pros Exit Credit Suisse

Fri, 26 May 2017
Three sales specialists left Credit Suisse’s London office in recent weeks.Jerome Henrion, Tristan Collier and Philip van der Meijden had been part of a team that tracks down a mix of investments for managers of hedge funds and private equity funds, including mortgage bonds and whole-loan portfolios. The unit also has aided entities including the U.K. Treasury in the liquidation of holdings that went bad during the credit crisis.Henrion, a...



Bankers Shrug Off Brexit Transfers

Fri, 26 May 2017
Even as their employers transfer personnel across Europe in response to the U.K.’s Brexit plan, securitization-focused bankers in London are gaining confidence that they won’t be asked to move en masse.Their reasoning, in part, is that securitizations in Europe are among a class of financial transactions that typically take place under U.K. law — something they don’t see changing. They also point out that...



Incenter Enters Brokerage Arena

Fri, 26 May 2017
Incenter, a diversified mortgage-service business owned by Blackstone, has launched its long-planned broker-dealer operation.The St. Paul, Minn., company’s Incenter Securities unit recently received approval from Finra to begin trading a range of products including mortgage bonds, mortgage-servicing rights and whole loans. The brokerage operation, based in Los Angeles, plans to hire a number of traders and sales professionals.The operation...



The Grapevine

Fri, 26 May 2017
New York hedge fund operator Allagash Partners, which specializes in purchasing distressed mortgage products, has hired David Ludlow to head its marketing unit. Ludlow had been working since 2015 in a capital-raising role at fund manager Firebreak Capital. His earlier work included structured-product sales assignments at Stifel Nicolaus, Sandler O’Neill & Partners, Raymond James and Deutsche Bank, along with trading positions at Kidder...



The Grapevine

Fri, 26 May 2017
BNP Paribas added Jeff Orr to its asset-backed securities origination team in New York on May 16. Orr, a managing director, previously worked at RBS — arriving from Bank One in 2004 as part of a securitization-focused team led by Dan McGarvey, and then switching to other capital-markets efforts when the bank largely exited the business in 2014. Orr also has worked at Duff & Phelps and Sanwa Bank. His arrival at BNP follows a restructuring...



The Grapevine

Fri, 26 May 2017
Chief financial officer Morgan Edwards has left education len