Finance

Marketplace lenders may be able to teach banks a thing or two about speeding up loan origination, but when it comes to securitization, they could use a few pointers themselves.

The ranks of CLO investors may have thinned this year amid broader bond market turmoil, but it can still be difficult to put money to work with the best managers.

Speaking at IMN’s 5th annual conference on leveraged loans and collateralized loan obligations, LSTA executive Meredith Coffey and SFIG executive director Richard Johns each gave sobering assessments of the inevitable, and possibly debilitating, arrival of new capital ratio and risk retention standards to CLOs and other ABS deals.

Some 69% of collateralized loan obligations completed so far comply with impending risk retention rules, according to Meredith Coffey, research director at the Loan Syndications and Trading Association..

Prosper Marketplace Inc. has met with investors including Fortress Investment Group about potential capital injections, according to a person with knowledge of the matter.

Despite a recent pickup in new issuance of both collateratlized loan obligations and the leveraged loans used as collateral, many participants at an industry conference see more trouble ahead.

Freddie Mac is expanding its efforts to sell to private investors a portion of the credit risk on certain multifamily mortgages it guarantees.

Landmark Infrastructure Products is marketing $133.1 million of notes backed by property leased to owners of wireless towers and billboards, according to Fitch Ratings.

Mercedes-Benz is marketing its first dealer floor plan securitization in a year, with a new $750 million bond issuance split between a pair of two-year and three-year maturity tranches.

Freddie Mac has priced its sixth guaranteed multifamily small balance loan securitization of 2016.

LEAF Capital Funding is marketing $310 million of securities backed by equipment leases, according to DBRS

Sallie Mae Bank is preparing its first private student loan securitization of the year, according to rating agency reports.

Nissan and Hyundai each launched approximately $1 billion of bonds backed by auto leases Thursday, according to rating agency reports.

A subsidiary of Goldman Sachs purchased all four pools in Fannie Mae's latest nonperforming loan sale.

The government-sponsored enterprises' risk-sharing deals are being hailed as an innovative approach for Fannie Mae and Freddie Mac to offload credit exposure to private markets. But their growing popularity is raising questions about how these transactions should be reported in financial statements.

There’s a real downside to extremely low or even negative interest rates. Existing CLOs may not earn enough from their euro-denominated assets to pay the interest on the notes they issue.

Goldman Sachs and Citigroup each launched two new CMBS deals on Wednesday, with Fitch Ratings assigning provisional ratings on both pools that focus heavily on retail properties. Goldman's pool is highlighted by a multifamily investor mortgage secured by a portfolio of San Francisco apartments appraised at $923 million.

Deloitte & Touche recently named two co-leads for the CLO services unit of its securitization practice, Hillel Caplan and Lynda Lazzari.

Prices of loans held by CLOs recovered again in April, giving managers some more breathing room. But funding costs, rising interest rates and credit deterioration remain a challenge.

Darien Rowayton Bank – with a fledging student loan refinancing program for graduates of prestigious medical, business and law schools – is issuing a $176 million securitization of three-classes of fixed- and floating-rate loans.