Securitization

Chinese banks and insurance companies represent a new and potentially large source of capital that could crowd out U.S. banks as investors in collateralized loan obligations.

The two firms jointly obtained three separate loans totaling $706.7 million from Citigroup and Morgan Stanley on 52 retail properites with a combined 7 million square feet.

Moody’s expects cumulative net losses of 0.55% of the collateral, while Fitch takes a more conservative view; it expects net losses to reach 1% due to a deterioration in the construction equipment sector.

The senior notes benefit from initial credit enhancement of 29.5%, nearly three percentage points higher than the same tranche of the sponsor's previous transaction.

The collateral for the deal is heavily concentrated in the top three lessees, Quatar Airways, American Airlines, and Asiana; the deal permits the three to account for up to 65% of the portfolio.

AutoGravity of Irvine, Calif., has received $30 million in equity financing from VW Credit, according to a source familiar with the matter.

The German automaker was compelled to shift funding to asset-backeds in the wak of an emissions cheating scandal; it has now resumed issuing unsecured debt

The £310.3 million (US$401.26 million transaction, Twin Bridges 2017-1, is backed by 965 prime mortgages underwritten to UK landlords by Paratus AMC Ltd., formerly known as GMAC-RFC.

Loans between 61 and 72 months at origination decreased to 49.5% of the collateral for GM's latest transaction, down from 51.3% from the sponsor's April deal.

The first Bavarian Sky securitization of Swiss BMW auto leases since April 2013 will be split between Euro and Swiss franc (CHF) denominations.

Towd Point Mortgage Trust 2017-3 is smaller the the sponsor's two previous deals of the year, but the credit quality of the collateral is remarkably similar.

The liquidation of Veneto Banca and Banca Popolare puts increasing pressure on other banks in the Eurozone to reduce their holdings of bad loans, according to Fitch Ratings; it remains to be seen whether securitization will play a significant role.

It's the largest increase in five years; the percentage of securitized commercial mortgages behind on payments is now 5.75%, according to Trepp.

Angel Oak was able to secure triple-A credit ratings for its next offering of nonprime residential mortgage bonds, despite offering considerably less credit enhancement.

The Blackstone Group is tapping the commercial mortgage bond market to help finance the purchase of 11 multifamily properties from IMT Capital, according to Kroll Bond Rating Agency.

Synchrony Financial and Alliance Data Systems are particularly vulnerable to recent shifts in Americans’ shopping habits, according to new research from Moody’s Investors Service.

Lea Overby was formerly managing director, research; she replaces Charles Citro, who left the credit rating agency to pursue other opportunities.

The real estate investment trust is issuing its fourth securitization of older performing and non-performing loans of the year, and 13th since 2014.

College Ave, founded by two former Sallie Mae executives, makes both in-school and refinance loans; borrowers have the option of making payments before they graduate

It's the sponsors fourth securitization, and includes 33,972 contracts to small and medium-sized companies as well as to government clients.