Slideshow Best of ABS East 2017

Published
  • September 21 2017, 10:40pm EDT
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The best of ABS East 2017

Regulatory relief remains uncertain, but there's plenty to celebrate as some more estoteric asset classes, such as franchise fees and aircraft leases, move into the mainstream, while others, such as nonprime RMBS, are starting to revive

The $8B opportunity in private student loans

Changes under consideration in federal student lending policy, including a cap on lending to grad students and means testing for loans to parents, could create huge opportunities for private student lenders.

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Pickup in aircraft lease ABS issuance creates 'virtuous circle'

The growth in securitization in the esoteric asset class has drawn in more investors seeking long-duration high yield; that, in turn, is spawning more deals from new issuers filling the demand.

PennyMac plans 'programmatic' MSR securitizaiton

Vandy Fartaj, the firm’s chief capital markets officer, says a novel deal structure allows the real estate investment trust to issue additional term notes its portfolio of mortgage servicing rights grows.

Scarcity of CLO equity

Matt Natcharian, a managing director and head of the structured credit CLO investment team at Barings, said that risk retention, which requires managers to hold on to economic risk in their deals, has “changed how equity is raised, and it’s brought in a stabilization of equity demand.”

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PACE lenders welcome increasing oversight

Cisco DeVries, the chief executive of Renew Financial, said the bills will bring much-needed stability to Property Assessed Clean Energy, which uses a property assessment to finance upgrades.

Appetite for whole biz ABS is growing

The bankers and lawyers who put these deals together have been working hard to broaden their appeal beyond insurance companies, the traditional buyers.

DId CLO managers err in lobbying for an exemption to risk retention?

MJX CEO Hans Christensen thinks the $500 billion market lacks the heft to influence lawmakers or regulators; he says any relief from rules requiring "skin in the game" of deals will have to benefit other asset classes as well

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'Just scratching the surface' in nonprime RMBS

Bank statement loans? No problem. Weak reps and warrenties? Doesn't seem to matter to investors in nonprime mortgage bonds. The only limitations, according to sponsors of these deals, are consumer awareness of the product and loan officers' willingness to offer them.