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

Pipeline
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
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.

Editor’s picks
Fit for purpose?: Once portrayed as the initiative to revitalise European securitisation, the STS label has been variously hailed as a game-changer or lamented as not fit for purpose. The truth, perhaps, may be somewhere in between…
CLO investor breaks into US: Pearl Diver Capital recently opened its first US office and also closed two new CLO funds. While the loan and CLO markets still seem to be immune from macroeconomic disruption, the company is preparing for a potential change in the credit cycle…

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.