Finance

Even as UBS Group plans extensive job cuts for Credit Suisse's workforce, there's at least one place where it's growing: the business of buying leveraged loans and bundling them into bonds.

The notes are secured by the issuer's right to title and interest in over 9,000 outdoor advertising sites in a dozen markets.

Income from single-family rental properties, distributed across more than a dozen states and 34 areas, back the notes. The deal should close later this month.

The private equity giant will serve as the investment manager for Vertical Capital Income Fund, a fund that is moving away from investing in residential mortgages to focus on the riskiest tranches of collateralized loan obligations. 

For large banks, the agencies wanted to go above the global standards for residential mortgages, as well as some business loans, to avoid giving those lenders a competitive advantage over smaller peers, according to another person familiar with the proposal.

Prime quality U.S. vehicle leases back an issue comprising 91% class A notes.

The companies are both tapping the U.S. investment-grade primary market, kicking off a potential deluge of fresh bank bonds in the wake of second-quarter earnings.

One asset manager recalled the prelude to the global financial crisis and the 2001 dot-com bust, when companies that loaded up on debt when costs were low got hit with a steep bill years later.

The U.K. manager's assets have declined from peak of nearly $20 billion before a spate of 2020 losses.

The deal has a slightly higher weighted-average FICO and slightly lower exposure to longer-term loans than its predecessor but a slightly worse FICO tier distribution.

CPS provides auto loans to U.S. consumers who have situational credit problems, but display an ability to pay their obligations, according to the company.

Rising balances and annual percentage rates alongside lower FICO scores mark used vehicle loan pool.

Delinquencies are balanced by low loan-to-value ratios, which could result in more favorable recoveries in the event of defaults.

The proportion of construction equipment in the pool is the highest compared with other Kubota Credit transactions, which is a potential weakness.

The six biggest banks in the U.S. are expected to sell between $28 billion and $32 billion of new bonds after they report quarterly earnings, and regional banks — seeking to raise more capital — could be right behind them.

The bond market's reenergized bulls may want to dial down their excitement, because their fortunes hinge on whether an abstract, almost elusive number, is as low as they assume.

The issue is secured by a revolving pool of term and line-of-credit small-business loans made to a diverse set of industries.

The unsecured loans are generated on marketplace lending platforms using proprietary technology that use artificial intelligence and machine learning software.

U.S. leveraged loans are delivering some of the best returns in the fixed-income market this year, indicating that investors think any impending downturn could be slow to come and not particularly severe.

Junior tranches are at the heart of the debate around whether the capital that insurers currently hold against CLOs is sufficient, and the NAIC may soon impose stiffer risk-based capital requirements.