Finance

The nonconforming market is ready to absorb most of the government-sponsored enterprise loans covered by the QM patch, but not all of them, according Redwood Trust.

The launch of a combined securitization platform for Fannie Mae and Freddie Mac is meant to ease the transition to a new housing finance system. But questions remain about how the mortgage sphere will adapt to the single security.

The $1.11 billion Ally Auto Receivables Trust (AART) 2019-2 deal has three classes of senior term notes with early AAA ratings by S&P Global Ratings and Fitch Ratings.

Few changes were made from Verizon Wireless' previous transaction this year, including the standard credit enhancement levels of most of Verizon's recent DPP transactions.

KKR is sponsoring its first middle-market CLO transaction stemming from its direct lending partnership established last year with FS Investments, according to presale reports.

The large number of overleveraged commercial mortgage-backed securities loans coming due in 2019 is likely to cause the payoff rate to drop an additional 9 percentage points by December, a Morningstar report said.

The investment research firm plans to merge DBRS' ratings business with its existing Morningstar Credit Ratings Service.

The collateral will include $147.3 million in well-seasoned loans that were part of HESAA’s 2009 issuance, as well as up to $155 million in new loans that the trust will originate through an Oct. 31, 2020 prefunding and recycling period for the next academic calendar year.

S&P Global Ratings reports that cumulative loss levels on collateralized portfolios of subprime auto loans fell to 7.11% in March, compared to 8.67% in February. That figure was also down from 7.61% in March 2018, and the lowest since 2016.

Unlike Japan’s three so-called megabanks, which are under strict international capital rules because of their importance to the global financial system, many regional lenders have less stringent requirements, giving them more room to have risk assets on their balance sheets.

One of the most active investors in Europe’s CLO market may be about to test the loyalty of the managers that provide it with triple-A paper by asking for a higher spread.

Kubota Credit Corp.’s $800 million asset-backed transaction is not expected to generate any additional losses than forecast for the finance company’s previous ABS in 2018, according to presale reports.

A reincarnated version of collateralized debt obligations, backed by both high-yield bonds and leveraged loans, offers investors some of the best relative-value plays in fixed-income, says a Credit Suisse panelist at IMN's CLO and leveraged loan investors' conference in New York.

A Davis & Gilbert poll of market participants showed more expect delinquencies over the next one to two years, likely requiring credit enhancement in future deals.

Prepayments tied to repeated VA loan refinancing activity have had an adverse effect on Ginnie’s mortgage securities that persists despite countermeasures. The government bond issuer is making new plans to address the impact.

The $403.1 million Atlas Senior Loan Fund XIV will have seven classes of notes, as well as a combination securities tranche that will make up all or portions of three subordinate classes.

The Lineage Logistics transaction is the largest single-borrower, large-loan deal since the Blackstone Group tapped the CMBS market for a $2.5 billion single-loan deal backed by 169 industrial properties and two data centers.

The $161.5 million transaction backed by leasehold interests in the Jimmy Buffett-themed luxury hotel will include a $49.3M cash-out payment to the Denver-based PE firm.

With prospects for government-sponsored enterprise reform improving, players in the private residential mortgage-backed securities market are starting to think about how they could better compete against the GSEs while awaiting change.

Japanese lawmakers have also begun grilling government ministers on risks tied to CLOs investments by the biggest buyer, Norinchukin Bank, which has been ramping up purchases of the highest-rated securities.