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Even as spreads on home-equity ABS reach dizzyingly tight levels, analysts are still touting them as the best place to find relative value in the ABS market. As always, the question remains just how tight spreads can come in. The answer, for now, is quite a bit.
March 7 -
Memorial Sloan-Kettering Cancer Center is gearing up to sell a $250 million piece of its future foreign patent royalties from cancer treatment drug Neupogen/Neulasta. Among the likely bidders are several firms with a history of securitizing pharmaceutical royalty receivables.
March 7 -
To paraphrase the late crooner Frank Sinatra, Fitch Ratings expects 2005 will be "a very good year" for middle-market CLO issuance, as the agency is gearing up to rate more transactions in the relatively young asset class. Fitch warned, however, that anyone thinking of entering middle-market CLO land should make sure to bring the right tools for the job, as the asset class requires a different type of analysis than many asset managers and investors may be used to.
March 7 -
The primary U.S. ABS market made a return to loftier volume levels last week to price close to $9.5 billion as of Thursday's market close. The real estate sector made up the bulk of total volume with $6.5 billion in new issues.
March 7 -
Mitsubishi Motors' senior bonds may be one of the few places relative value still exists in the overbought ABS market, but questions about servicing and the strength of U.S. operations still loom for the auto manufacturer. If Mitsubishi can successfully dodge those concerns, analysts agree its ABS presents an attractive option in the auto sector.
March 7 -
Canadian interloper Dominion Bond Rating Service is primed to rate its first U.S. ABCP program, and will be staffing up during the coming weeks to prepare.
March 7 -
Canadian company Drug Royalty Corp. is showing the market $42 million in single-A rated notes backed by pharmaceutical patent royalties. What the market isn't seeing - the pre-sold triple-B and double-B rated tranches - makes this the first senior/subordinated offering backed by this type of asset.
March 7 -
Based on the results of a recent Structured Finance Market Opinion survey conducted by Standard & Poor's, securitization professionals named operational risk as the second most significant factor that is likely to affect the outcome of a deal, reinstating the fact that it continues to be a looming concern for players in the marketplace.
March 7 -
Year to date as of 03/03 Term (days) 02/25 02/28 03/01 03/02 03/03 1-week
March 7 -
Full Credit to Book (Equal if Joint) U.S. Public ABS Market/144A Market Managers Proceeds (mils) Rank Mkt. Share # of Issues Credit Suisse First Boston 2,663.9 1 18.2 4 Barclays Capital 2,136.5 2 14.6 4 Citigroup 2,128.0 3 14.5 4 Deutsche Bank AG 2,027.7 4 13.8 3 Merrill Lynch & Co Inc 2,022.8 5 13.8 3 Goldman Sachs & Co 1,289.0 6 8.8 1 JP Morgan 1,096.0 7 7.5 3 Wachovia Corp 996.0 8 6.8 3 BNP Paribas SA 146.0 9 1.0 1 ABN AMRO 146.0 9 1.0 1 Industry Total 14,651.8 - 100.0 12 Source: Thomson Financial
March 7
