SCI Start the Week - 2 July

Category: ABS CLOs CMBS


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

Pipeline
The pipeline has been dominated by UK transactions ahead of the Independence Day holiday. A pair each of CMBS and auto ABS remained in the pipeline by the end of the week, as well as an RMBS.

The auto securitisation entrants were £347m Azure Finance No. 1 and Bavarian Sky UK 2, while the CMBS were £300m BAMS CMBS 2018-1 and US$1bn JPMCC 2018-LAQ. The newly announced RMBS was €224.44m Cartesian Residential Mortgages 3.

Pricings
Last week’s issuance was also fairly light. CLO was the most active asset class, followed closely by CMBS and RMBS.

The US$129.59m LTCG Securitization Issuer 2018-A, US$305.92m Mosaic Solar Loan Trust 2018-2-GS and US$1.3bn VALET 2018-1 deals accounted for the ABS prints. The CLO pricings comprised: €414m Barings Euro CLO 2014-1 (a refinancing of Babson Euro CLO 2014-1), US$374.75m Dryden 42 Senior Loan Fund (refinancing), US$407m ICG US CLO 2018-2, US$245m Monroe Capital MML CLO 2016-1 (refinancing) and US$404m Palmer Square Loan Funding 2018-3. The CMBS were US$1bn Benchmark 2018-B4, US$1bn MSC 2018-H3, US$803.8m UBS 2018-C11 and US$658.77m WFCM 2018-C45, while the RMBS were US$402.01m Angel Oak Mortgage Trust I 2018-2, US$939.5mn CAS 2018-C04, €1.43bn Fastnet Securities 15 and US$727.38m-equivalent Lanark Master Issuer Series 2018-2.

Editor’s picks
Multi-seller GACS deals pending: Multi-seller GACS securitisations brought by smaller Italian banks are emerging, with at least two transactions in the pipeline. However, as the transactions come to market, banks and investors will have to deal with challenges that are atypical for single-seller deals…
Trade finance CRTs gather pace: Interest is growing in synthetic securitisations backed by trade finance receivables - collateral that is particularly suited to the synthetic structure. These transactions exhibit several differences to corporate capital relief trades and while some of these can cause certain challenges, they also offer issuers and investors unique benefits…
NPL issuance surging: Banco di Sardegna has completed a €253m non-performing loan securitisation called 4Mori Sardegna, the senior notes of which are expected to be granted a GACS guarantee. The transaction features high credit enhancement levels for the senior and mezzanine notes and it is the latest in a slew of GACS issuance aiming to beat the expiration of the Italian government guarantee in September…
Securitisation to support PPP growth: The Argentinian government recently announced plans for a number of infrastructure projects and has established a public-private partnership (PPP) framework to help bring the projects to fruition. Structured finance technology is expected to be utilised in raising the required capital for the construction, operation and maintenance of the projects…

Deal news

  • Barclays has launched an unusual multi-currency CLO based on a £4.5bn portfolio of corporate loans made by the bank to borrowers in the UK and Europe. The transaction, dubbed Sirius Funding, will be managed by Barclays and comprises three large tranches denominated in euro, US dollar and sterling, respectively.
  • Permanent TSB has completed a pair of Irish RMBS - Fastnet Securities 14 and 15. The transactions refinance the Fastnet Securities 3 portfolio, the notes of which have been called.
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