A mixed bag of securitisations remained in the pipeline at the end of last week. ABS dominated the newly announced deals, split between consumer/esoteric and auto assets.
The consumer/esoteric ABS transactions comprise: US$200m ELFI Graduate Loan Program 2018-A, US$235.25m Mosaic Solar Loan Trust 2018-1, US$225m OnDeck Asset Securitization Trust II Series 2018-1, US$188m and US$188m PFS Financing Corp Series 2018-C and Series 2018-D, US$544.6m SoFi Consumer Loan Program 2018-2 and US$227.21m Upstart Securitization Trust 2018-1. The auto deals consist of: US$650m Chesapeake Funding II Series 2018-1, US$201.82m CPS Auto Receivables Trust 2018-B, US$1.23bn GM Financial Consumer Automobile Receivables Trust 2018-2, US$900m Hyundai Auto Receivables Trust 2018-A and US$1.09bn Santander Drive Auto Receivables Trust 2018-2.
A handful of RMBS were also announced last week: €1.35m Ardmore Securities No. 1, US$374.46m Bellemeade Re 2018-1, €1bn FCT Credit Agricole Habitat 2018, US$704.07m Flagstar Mortgage Trust 2018-2 and US$339.97m Tricon American Homes 2018-SFR1. Additionally, the US$688.2m BANK 2018-BNK11, US$382m BX 2018-MCSF, US$1.2bn FREMF 2018-K731 and US$186.1m Velocity Commercial Capital Loan Trust 2018-1 CMBS began marketing. Finally, the US$537.75m TruPS Financials Note Securitization 2018-1 CDO is expected to price this week.
CLOs accounted for the majority of pricings last week. Issuance across other asset classes was subdued, due to the Easter holidays.
The €378.3m CVC Cordatus Loan Fund VI, US$323.75m Denali Capital CLO XII, US$424.25m Galaxy XVI CLO (second refinancing), US$368.75m Loomis Sayles CLO II, US$425.9m Shackleton 2013-IV-R CLO, US$506.5m TICP CLO III (second refinancing) and US$646.5m Venture XVII CLO (second refinancing) were refinanced last week. New issue CLOs comprised US$707.1m Antares CLO 2018-1, US$528.29m Ballyrock CLO 2018-1, US$511m Barings CLO 2018-II and US$464.15m OZLM XX. The A$700m Driver Australia Five Trust, US$177.62m Upstart Securitization Trust 2018-1 and US$802.84m World Omni Auto Receivables Trust 2018-B ABS, together with the US$952.9m CSAIL 2018-CX11 CMBS rounded out last week’s issuance.
CMBS 'haves' and 'have-nots' highlighted: The planned conversion of the Westside Pavilion property in Los Angeles - securitised in WFCM 2012-LC5 - is one recent example of a mall borrower resolving a troubled CMBS loan creatively (see SCI’s CMBS loan events database). Morningstar Credit Ratings highlights the move in new research illustrating that the majority of 2012 vintage mall loans should remain stable, with low term default risk, despite having higher leverage than their 2013 and 2014 counterparts and significant exposure to regional shopping centres…