SCI Start the week - 10 September

Category: ABS CLOs CMBS

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


A fairly even split of auto and non-auto ABS in the pipeline this week: 

Auto ABS:  US$256.2m American Credit Acceptance Receivables Trust 2018-3, CNY4.5bn Bavarian Sky China 2018-1 Trust, US$1bn Drive Auto Receivables Trust 2018-4, Silver Arrow UK 2018-1, US$801m World Omni Automobile Lease Securitization Trust 2018-B

Non-auto ABS: Alhambra SME Funding 2018-1, US$881.52m CAL Funding III series 2018-2, C$584m Glacier Credit Card Trust 2018-1, US$350m Hilton Grand Vacations Trust 2018-A, US$992.2m Navient Student Loan Trust 2018-4, US$544m SMB Private Education Loan Trust 2018-C

In the RMBS space a number of European deals have come into the pipeline in the form of: BPCE French RMBS, US$342.65m COLT 2018-3, Dublin Bay 2018-1, Oak No. 2, US$370.45m PSMC 2018-3 Trust, STACR 2018-DNA3

A smattering of CLOs have appeared with several in Euro pricing: €409.5m Avoca CLO XIX, €411.5m Man GLG Euro CLO V, US$407.35m Parallel 2018-2, US$600m Regatta XV Funding, US$505.1m RR5, €409.4m Sutton Park CLO

Just two CMBS in the pipeline this week in the form of: US$325m COMM 2018-HCLV, US$225m STWD 2018-URB


RMBS continue the European theme with the following deals pricing: £3.232bn Brass No. 7, €913m Storm 2018-II, €526.89m Dutch Property Finance 2018-1, £528m Tower Bridge Funding No. 3

Continuing the light theme from the pipeline, only a small number of CLOs have priced this week: US$540m BlueMountain CLO 2014-2 (refinancing), US$408m Cathedral Lake V, US$460m Marathon CLO XII

Editor’s picks

Chain reaction: Numerous ABS issuers are exploring how to leverage blockchain technology to execute traditional securitisation structures. Indeed, its adoption could yield immediate benefits for esoteric and new asset classes, which have an illiquidity premium associated with them…

GACS extended: The European Commission has approved a second extension of the GACS guarantee scheme for the senior tranches of Italian non-performing loan securitisations. The guarantee is issued at a market price to comply with EU state aid rules, although the European Commission will continue to review the scheme’s compatibility with market conditions. Consequently, further extensions of the scheme remain the most likely option, as opposed to rendering it permanent…

Increased obligations weighed: ESMA last month published final draft technical standards on the new reporting requirements to be implemented under the Securitisation Regulation (SCI 24 August). The standards - released ahead of the 1 January deadline - are set to usher in new levels of due diligence required on the part of the seller, meaning investors will expect more information to be readily available on prospective deals…

Deal news

  • Intesa Sanpaolo has completed a guarantee agreement with Fondo Centrale di Garanzia, the Italian government guarantee fund, to spur economic growth via lending to Italian SMEs. This is the fund’s first synthetic securitisation that includes mid-cap firms (with up to 499 employees), which were previously excluded from its portfolio policies.