SCI Start the Week - 11 June

Category: ABS CDO CLOs


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A look at the major activity in structured finance over the past seven days

Pipeline
Non-auto related ABS deals have dominated the pipeline recently. Indeed, transactions representing a broad mix of asset types and jurisdictions were announced last week.

The non-auto deals remaining in the pipeline by the end of the week were: US$130.14m Accelerated Assets 2018-1, US$100m AM Capital Funding Series 2018-1, US$294.4m CLUB 2018-P1, US$169.8m College Ave Student Loans 2018-A, US$991.78m DEFT 2018-1, US$147.34m Renew 2018-1, US$497.5m SMB Private Education Loan Trust 2018-B, US$586.9m START 2018-1, US$482.5m Trinity Rail Leasing 2018 and US$300m Triton Container Finance VI Series 2018-2. The auto ABS were: US$248m American Credit Acceptance Receivables Trust 2018-2, BBVA Consumer Auto 2018-1, US$299.39m GLS Auto Receivables Issuer Trust 2018-2 and A$300m Metro Finance 2018-1 Trust.

Additionally, a trio of RMBS (NZ$150m Avanti RMBS 2018-1 Trust, £10.25bn-equivalent Permanent Master Issuer Series 2018-1 and US$1.05bn STACR 2018-DNA2) and a trio of CMBS (US$635m Atrium Hotel Portfolio Trust 2018-ATRM, US$463m 5 Bryant Park 2018-5BP and US$521.55m GSMS 2018-SRP5) were announced.

Pricings
New issue activity was somewhat subdued last week. Pricings were spread across ABS, CLOs and RMBS.

The auto ABS pricings included US$900m BMW Floorplan Master Owner Trust Series 2018-1, US$486m DTAOT 2018-2 and US$671.46m HALST 2018-B, while the non-auto related pricings were US$845.6m Castlelake Aircraft Structured Trust 2018-1, US$466m Vivint Solar Financing V and €764.32m Voba Finance No. 7. The CLO prints included US$756m CBAM 2018-7 and US$514.2m XAN 2018-RSO6, while the US$1.59bn Seasoned Credit Risk Transfer Trust Series 2018-2 was the sole RMBS issuance.

Editor’s picks
Deal 'will happen' despite political risk: Banco BPM has announced the transferral of a €5.1bn gross nominal value (GNV) portfolio of NPLs to the Red Sea SPV, as part of Project Exodus (SCI 1 June). The Italian bank aims to sell the junior and mezzanine notes, although political uncertainty may lead to higher premiums, putting a strain on the transaction…
Chinese issuance growing strongly: Chinese securitisation issuance surged to a record high in 2017 but significant challenges remain. Overseas ABS market participants point to the need to develop the investor base and deepen market expertise, but are also showing increased willingness to dip their own toes in the water…
UTP loans raise AI prospects: Resolving unlikely to pay (UTP) loans is becoming more important for Italian banks, but the challenges involved can be particularly complex. As a result, special servicers are looking to create proprietary servicing platforms that utilise machine learning and artificial intelligence…

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