A look at the major activity in structured finance over the past seven days.
Pipeline
The rate of additions to the pipeline has slowed down. Last week there were two new ABS, three RMBS and two CMBS added.
CNY3bn Fuyuan 2016-2 Retail Auto Mortgage Loan Securitization Trust and Honda Auto Receivables 2016-3 Owner Trust Notes were the ABS, while the RMBS were US$430m JPMMT 2016-2, US$505m Mill City Mortgage Loan Trust 2016-1 and US$237.21m Nationstar HECM Loan Trust 2016-3. The CMBS were US$500m Citigroup Commercial Mortgage Trust 2016-C2 and US$471.5m FORT CRE 2016-1.
Pricings
A few more prints were registered. In total there were six ABS, four RMBS and four CMBS.
The ABS were: CNY3bn Autopia China 2016-2 Retail Auto Mortgage Loan Securitization Trust; US$255.39m Avant Loans Funding Trust 2016-C; US$1,175bn Chase Issuance Trust 2016-A6; US$340.5m Engenium Capital Equipment Dollar Trust; US$1.09bn Hyundai Auto Lease Securitization Trust 2016-C; and €1.373bn ICCREA SME CART 2016.
US$371m Agate Bay Mortgage Trust 2016-3, £2.25bn Hawksmoor Mortgages 2016-1, A$700m Torrens Series 2016-1 Trust and €2.856bn UBI SPV 2016-1 were the RMBS. The CMBS were US$512.5m BBCMS 2016-ETC, US$181m CSMC 2016-BDWN, US$600m Hudson Yards 2016-10HY and US$719.8m MSCI 2016-UBS11.
Editor's picks
Investors rally to Ocwen: RMBS investors in deals serviced by Ocwen are holding meetings in the wake of the publication of an open letter from United Capital Markets ceo John Devaney to S&P. The letter and investors argue that Ocwen has outperformed its peers and that any transfer of servicing away from Ocwen would be seriously detrimental, strongly criticising Gibbs & Bruns for pursuing such an outcome...
Optimistic outlook: Many interesting topics were raised about the current state and potential future of marketplace lending at SCI's Marketplace Lending and Securitisation Seminar in New York in June. During a panel on investor perspectives, several matters that concern buyers of marketplace loans were discussed...
Money market tranches touted: The basis between money market ABS tranches (MMABS) and corporate CP appears to be widening ahead of the implementation of money market reforms in the US in October. Against this backdrop, Wells Fargo structured product strategists believe that MMABS offers good relative value for the credit risk taken...
Deal news
• Banca Popolare di Bari (BPB) has closed its much-anticipated NPL securitisation, becoming the first bank to make use of the Italian government's GACS guarantee scheme (SCI 30 March). The €150.54m Popolare Bari NPLs 2016 deal is backed by assets with a gross book value (GBV) of €471m and €8.8m of collections.
• National Bank of Greece (NBG) has completed the first Greek SME securitisation since 2007. The transaction, Sinepia, will enable the bank to raise up to €300m of medium-term financing.
• Fitch has affirmed all rated tranches of Canadian CMBS CMLS Issuer Corp series 2014-1, including the class G notes, which have been removed from rating watch negative. The rating action reflects the overall stable performance of the pool, in addition to the Clearwater Suites property becoming fully operational after the Fort McMurray, Alberta area was evacuated due to wildfires in May.
• A third collateral manager has been put forward to replace CWCapital Investments as manager of Gramercy Real Estate CDO 2007-1 (SCI passim). The holders of a majority of the CRE CDO's controlling class have nominated Cairn Capital Management North America as successor collateral manager on the deal.
• ISDA's EMEA Credit Derivatives Determinations Committee has resolved that a bankruptcy credit event occurred in respect of Grupo Isolux Corsan Finance. The move follows a restructuring agreement entered into by the firm that includes a suspension of payments proceeding relating to its €850m unsecured notes due 2021 and the bankruptcy of four of its Spanish subsidiaries.
Regulatory update
• The CFPB has amended its mortgage servicing rules to ensure mortgage servicers treat homeowners and struggling borrowers fairly. It is also issuing an interpretive rule under the Fair Debt Collection Practices Act relating to servicers' compliance with certain mortgage servicing provisions as amended by the final rule.
• Morgan Stanley has begun fulfilling its consumer relief obligations under the terms of its settlement with New York State (SCI 12 February). The settlement concerns failed RMBS sold in the lead-up to the financial crisis.