John S. Hintze

Legacy RMBS structured to withstand challenging mortgage market

Delay refinancing two loans prompts drop to below investment-grade for one class of CMBS

Offshoot of well-known European asset manager taps JP Morgan to structure deal

New arrivals to the ABS market seek investors in less than stellar-rated bonds.

Top banks are underwriting the deal, but most of the securitization's loans lack documentation.

Aggregator counters the risk of loans' low starting rate with a strong borrower profile.

The new deal will increase the sponsor's 2024 issuance to more than $3 billion.

The second-lien loans face low recovery post-default, especially if home prices drop.

Fitch describes the Goldman-arranged CLO as similar to Blackstone's Lewey Park CLO, which closed last month.

More than 90% of the loans were underwritten without full documentation, raising default probability.

Top retail-mall owner Taubman has approached the market with a $1 billion CMBS deal to refinance the existing debt that is collateralized by one of the highest volume shopping centers in the U.S.

Amid challenging times for loans in CLOs, Sculptor Capital Management sees refi and reset surge likely to continue well into 2025.

Lender to consumers denied traditional credit raises $250 million after skipping 2023.

Acquisition-financing securitization takes hold while AI and escalating data centers drive energy deals.

FS grew its CLO business and now manages four CLOs totaling $1.4 billion. The manager's risk-averse growth avoids complications that are still unfolding liability management exercises.

As corporate treasurers use the debt reorganization technique to head off disruptive defaults and bankruptcies, lenders seek more blockers and cooperation agreements to mitigate risks.

Observers and investors weigh in on how rate cuts may shift pricing dynamics for CLO tranches.

RTLs are generally short-term, interest-only bridge loans extended to real-estate investors, while the ABS deals provide investors with a premium and less prepayment risk.

Electronification of trading could fundamentally alter loan and CLO markets.

Securitizations face fewer complications under the Corporate Transparency Act (CTA) but missed filings can incur stiff penalties.