A review of securitisation activity over the past seven days

Deal-related news

• EJF Capital is eyeing opportunities in Europe, as bank consolidation pressures grow and rates continue to rise. However, the firm's plans remain at an early stage, given that European consolidation lags behind that of US banks (SCI 26 April).
• Investors in Ginnie Mae securities backed by HECMs can now take advantage of a new form of execution - the Home Equity Conversion Mortgages Backed Security (HMBS) Platinum securitisation channel. The platform is designed to ease the administrative costs of holding multiple HMBS securities and enhance market liquidity (SCI 23 April).
• The borrower behind the US$390m 666 5th Avenue asset backing the CGRBS 2013-VNO5TH CMBS has fully defeased the loan with US government securities. For more CMBS news, see SCI's CMBS loan events database.

Regulatory round-up

• The US SEC has ordered Prosper Funding to pay a US$3m penalty for miscalculating and materially overstating annualised net returns to more than 30,000 investors on individual account pages on its website and in emails soliciting additional investments. According to the order, from approximately July 2015 until May 2017, the marketplace lending platform excluded certain non-performing charged-off loans from its calculation of annualised net returns - resulting in many investors deciding to make additional investments (SCI 23 April).

Data

Pricings
No European transactions printed last week, following the Easter break. In the US, CLOs accounted for the majority of new issuance.

The CLOs that priced last week included: US$368.2m Battalion CLO X (refinancing), US$404.25m Dryden 72 CLO, US$405.1m Eaton Vance CLO 2019-1, US$404.2m LCM 29, US$801.25m Madison Park Funding XXXV, US$401.3m MMCF CLO 2019-2, US$510.65m Octagon Investment Partners 20-R (refinancing), US$597.1m Owl Rock CLO I and US$398.65m PAIA CLO 2019-1. The US$1.56bn American Express Credit Account Master Trust Series 2019-2, US$351.64m FREED ABS Trust 2019-1, US$312.6m Marlette Funding Trust 2019-2 and US$416.1m Nelnet Student Loan Trust 2019-2 made up the ABS prints, while the US$295m MSC 2019-BPR was the sole CMBS issuance.

BWIC volume

Upcoming SCI events
NPL Securitisation, 13 May, Milan

Middle Market CLOs, 26 June, New York

UTP webinar
Join SCI and Massimo Famularo of Distressed Technologies at 2pm UK time tomorrow (30 April) for a discussion of the challenges posed by unlikely-to-pay (UTP) loans and the broader non-performing exposure environment in Italy. The webinar will highlight the UTP dilemma of cure versus default rate, as well as examine the special servicing landscape and the hybrid models being adopted across the sector. Register for the webinar here.