From refinancing the wall of maturing CMBS to getting CLO manager skin the game, these articles held your interest the longest.
CMBS Scales the Maturity Wall
Thanks to the buoyant commercial property market and rising property values, sponsors had little trouble refinancing the wall of commercial debt coming due this year. Even problem loans like the one backing Stuyvesant Town-Peter Cooper Village are being resolved. Click here for full story.
Solar Power Tackles Tax Credit
The solar power industry relies heavily on tax credits, which are being phased out. But so long as the credit exists, any securitization of solar assets has to avoid jeopardizing it for existing investors. Click here for full story.
FFELP Not So Safe, After All
The Obama Administration's efforts to east the debt burdens of college students have had unintended consequences for investors in federally guaranteed student loans. Student loans are being repayed so slowly that many bonds backed by this debt are in danger of not paying off at maturity. Click here for full story.
GSEs Modeling Risk Transfer More Closely to RMBS
In an effort to produce something that mimics as closely as possible the risk in private-label mortgage-backeds, they have been moving to deals with exposure to actual losses, as opposed to estimated losses. Click here for full story.
Marketplace Falls from Grace
Marketplace lenders' rapid growth has stared to attract calls for more regulation. Todd Baker (right) of Broadmoor Consulting, warns the industry "can operate at levels of financial leverage unheard of in the banking industry. Mike Cagney (left), CEO of SoFi, counters that there is greater financial risk on bank balance sheets. Click here for full story.
Reinsurers Push Back Against Catastrophe Bonds
After several years of outbidding insurers for exposure to natural catastrophes, "alternative capital has begun to draw a line in the sand in terms of pricing," says Ben Brookes, of RMS. "Insurers and re-insurers are now competing to keep that business and winning it back in some cases. Click here for full story.
Europe Stays Positive Even as Rates Turn Negative
As key interest rates turned negative in Europe, every day financial transactions entered the realm of fun-house mirrors. German banks charged depositors for holding funds; Danish consumers received interest on borrowed funds. Not so asset-backeds, where yields stayed positive. Click here for full story.
Slow Restart for Securitization of Repayment Rights
It turns out Standard & Poor's recalibration of rating criteria wasn't the only thing holding up securitization of the servicer advance receivables. Ocwen Financial, one of the biggest issuers, is restricted from making acquisitions. That meant most deals coming to market refinance old commitments. Click here for full story.
CLO Managers Get Their Skin in the Game
Managers of collateralized loan obligations spent are finally coming to grips with impending rules requiring them to hold a 5% stake in each of their deals. Click here for full story.
Despite Red Flags, No Stopping Subprime Autos
With regulators nipping at their heels, subprime auto lenders had good reason this year to retrench. But that's not what they did. Stalwart Santander expanded the size of its book. "We feel like we are doing it in a way that makes sense," CEO Jason Kulas said of the company's strategy. Click here for full story.
Trepp research finds that high demand, especially during the COVID-19 outbreak, has rewarded MBS investors' faith in a sector with 'negligible' delinquency rates and healthier leverage levels among operators.
The agency’s consolidation of supervision and enforcement policy into one office could compromise the independence of those deciding when to investigate alleged wrongdoing by banks and others, critics of the move say.