SCI Start the Week - 23 July

Category: ABS CDO CLOs

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

The pipeline returned to full flow last week. Unusually, CMBS accounted for the majority of newly-announced deals, with a pair of esoteric CDOs also in the mix.

The CMBS were: US$944.19m BANK 2018-BNK13, US$400m BBCMS 2018-CHRS, US$310m GSMS 2018-RIVR, US$212.5m GSMS 2018-TWR, US$1.11bn JPMCC 2018-WPT, US$459.9m MSC 2018-MP, US$356.63m MSC 2018-SUN, US$177.22m NCMS 2018-850T and US$110m NCMS 2018-SOX. A couple of CRE CLOs - US$415.1m SGCP 2018-FL1 and US$415.13m Shelter Growth CRE 2018-FL1 – were also marketing.

The US$700.2m Enterprise Fleet Financing 2018-2, US$300m Volvo Financial Equipment Master Owner Trust Series 2018-A and US$799.93m World Omni Auto Receivables Trust 2018-C represented the newly announced auto ABS transactions. The US$402.31m Marlette Funding Trust 2018-3 rounded out the ABS entrants.

Additionally, a handful of RMBS were marketing: US$316.49m Nationstar HECM Loan Trust 2018-2, US$568.45m NRZ 2018-FNT2, A$589m-equivalent Pepper Residential Securities Trust No. 21 and A$500m SMHL Series Securitisation Fund 2018-2. Among the CLO entering the pipeline last week were US$507.2m Benefit Street Partners CLO XV and US$508m Wellfleet CLO 2018-2, while US$412.2m Bayfront Infrastructure Capital and US$271.99m Credit Suisse ABS Repackaging Trust 2018-PS1 accounted for the esoteric CDOs.

Pricings also ticked up last week. ABS and CLOs made up the majority of the issuance.

The auto ABS prints comprised: US$1.4bn CarMax Auto Owner Trust 2018-3, US$1.36bn Drive Auto Receivables Trust 2018-3, US$550m Exeter Automobile Receivables Trust 2018-3, US$1.19bn Ford Credit Auto Owner Trust 2018-REV2, US$1.38bn Mercedes-Benz Auto Receivables Trust 2018-1, US$1bn Nissan Auto Receivables 2018-B, US$900m OneMain Direct Auto Receivables Trust 2018-1, US$440.8m Oscar US 2018-2 and US$505m Wheels SPV 2 Series 2018-1. The remaining ABS pricings were: US$1.18bn American Express Credit Account Master Trust Series 2018-6, US$544.61m American Express Credit Account Master Trust Series 2018-7, US$861.46m John Deere Owner Trust 2018-B, US$201.65m Marlin Receivables 2018-1, US$631.9m Navient Private Educational Refi Loan Trust 2018-C, US$1bn Nelnet Student Loan Trust 2018-3, US$1.2bn Planet Fitness Master Issuer Series 2018-1 and US$450m Thunderbolt II Aircraft Lease.

Meanwhile, last week’s new issue CLOs included: US$809mn Atrium XIV CLO, US$475.1m BlueMountain CLO 2018-1, US$575m Brightwood Fund III Static 2018-1, US$407.2m Dryden 60 CLO, US$1bn Golub Capital Partners CLO 38(M), €411.8m Tikehau CLO IV and US$406mn Woodmont 2018-5 Trust. CLO refinancings consisted of: €468.6m Avoca XVI CLO, US$369.88m Benefit Street Partners CLO IX, US$540.5m Carlyle Global Market Strategies CLO 2015-3, US$582.09m Fortress Credit BSL VI (formerly Hildene CLO IV), US$460.7m KKR 14 CLO, US$245.25m NewStar Exeter Fund CLO and US$415.7m TIAA CLO I.

Finally, the £214.9m Gemgarto 2018-1, US$264.55m Oaktown Re II and US$489.57m Verus Securitization Trust 2018-2 RMBS rounded out the issuance.

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Deal news

  • Allegations of embezzlement and a fight for control of Harley Marine Services (HMS) have emerged less than two months after the firm closed its first whole business securitisation, Harley Marine Financing Series 2018-1 (see SCI’s primary issuance database). The legal battle has sparked concern that should a manager termination event occur, the US$455m transaction will enter rapid amortisation.
  • Clifford Capital is marketing an inaugural US$480m CLO. The transaction, dubbed Bayfront Infrastructure Capital, is backed by 37 bank-syndicated senior project finance and infrastructure loans to projects in Asia-Pacific and the Middle East.