Securitization

When the Federal Reserve starts scaling back its massive bond-buying spree, mortgage traders are betting their market will be at the forefront.

The current deal is the eighth retail auto lease securitization from the registered lease securitization platform, which was established in 2013.

The $1 billion mortgage securitization is smaller than several recent deals, and features modified mortgages. But subordination supports senior notes.

The $319 million transaction has significant exposure to Puerto Rico, with outstanding issues, but benefits from solid enhancements.

The transaction, FSMT 2021-4, is one of the trust’s largest deals in the last several years. Half of the mortgages are on properties located in California.

The USQ Rail II Series 2021-3 is a master trust that will have two issuing entities, one registered for the U.S. and another for Canada.

Citigroup Global Markets is lead underwriter on the fourth issuance through Toyota’s ABS Green Bond program. The deal references two potential pools to be securitized.

A pool of subprime auto loans, new and used, and approved with a heavily automated, technology driven and multi-step process underpin a $559 million deal.

The wireless communication infrastructure company plans to use proceeds from the issuance to help finance a $1.6 billion acquisition of a smaller company.

The bonds will be backed by a first-lien mortgage on Willowbrook Mall, a 1.52-million-square-foot shopping center in Houston.

The chicken-menu specialty chain will use the proceeds to refinance existing debt.

The newer planes are being delivered to financially strong carriers such as JetBlue Airways, Delta Air Lines and India’s popular IndiGo low-cost airline.

The deal is the second securitized transaction floated under recent California state legislation authorizing a flurry of utility securitizations.

Deals, trends and research in structured finance and asset-backed securities for the week of May 14-20

Trinity’s railcar collateral qualifies as an eligible green asset, since freight transportation serves as a lower carbon-emissions alternative to big-rig trucking for land-based goods transport.

Carvana Auto Receivables Trust 2021-N2 is the used-car retailer's ninth securitization since 2019, and the third to include a pool exclusively made of non-prime loans.

It’s become nearly impossible to find yield amid the ongoing spread compression across credit markets. One of the last harbors for value, securitized debt, still offers upside in some specific areas, though returns are quickly diminishing.

The loans, previously securitized in 2015, have a weighted-average interest rate of 8.57%, balances averaging $15,182 and remaining scheduled terms of 186 months.

The $500.2 million Morgan Stanley Residential Mortgage Loan Trust 2021-2 is supported by 547 prime-quality loans, many of them large-balance loans with outstanding obligations exceeding $1 million.

Taking each element of ESG - environment, social, governance - a dv01 principal says the firm is gathering the comprehensive list of authoritative sources and entities needed to build an ESG definition.