Securitization

Investors are lining up to buy bonds backed by the franchise fees of fast food chains, providing attractive financing for their private equity backers.

Credit metrics in a $147.5 million deal deteriorated mildly compared with the lender's previous securitization, but the real issue, according to S&P Global, is a new repossession fee that eats into recoveries.

Late payments on securitized commercial mortgages fell in May, bucking the trend of the past year. But all of the improvement came from office buildings.

Domino’s Pizza, the restaurant and delivery chain owned by Bain Capital, is marketing $2.075 billion of notes backed by the fees and payments from its network 14,000 franchised stores.

GrandSouth Bancorp's issues with floor-plan loans to car dealers serve as a reminder of another pitfall in auto lending besides consumer loans.

A real estate investment fund controlled by Blackstone Group is tapping the commercial mortgage bond market to refinance a portfolio of 18 life science, laboratory and medical buildings.

Center Parcs Group, a company that operates short-break vacation sites across England, plans to sell £830 million (US$1.06 billion) in bonds backed by its operational cash flow.

The investment bank, which co-lead the lender's previous two transactions, contributed a portion of the collateral for the $232 million student loan securitization.

CMSC 2017-FHA1 is the first transaction of 2017 from this issuance shelf, and the deal by anyone backed by reperforming FHA mortgages since 2010, according to Moody’s Investors Service.

FHFA Sounds Alarm on Home Loan Bank Funding, Advances

The broad bill, sponsored by House Financial Services Committee Chairman Jeb Hensarling, R-Tex., would provide an “off-ramp” for banks that agree to hold a leverage ratio of at least 10% and would gut the Consumer Financial Protection Bureau, among other provisions.

The Massachussetts Educational Financing Authority is issuing $162.23 million of private student loan revenue bonds; Fannie Mae obtains more front-end credit risk transfer; Canadian Tire Bank taps credit card market.

At an industry conference Thursday, three former banking and capital markets regulators – including former U.S. comptroller Eugene Ludwig – joined in the chorus of industry voices doubting that any near-term relief from Dodd-Frank rules is on the table.

A recent challenge to the legality of leverage lending guidance could have broad implications for issuers, underwriters and investors in corporate loans. But the end result could be added complexity, rather than a wholesale easing of restrictions

Much of the discussion at an industry conference in New York Wednesday was devoted to the potential complications that could result from rolling back rules enacted by the previous administration under Dodd-Frank.

A panel of retail industry analysts explored how several department store and specialty retailers face hard times in an environment in which sales declines, high leverage and competition from online retailers are pressuring many brick-and-mortar chains' ability to service their speculative-grade debt obligations.

Appeals court justices appeared divided on whether the structure of the Consumer Financial Protection Bureau is constitutional during oral arguments in the PHH v. CFPB case on Wednesday.

Container Leasing International, d/b/a SeaCube, is adding a $248.7 million deal to this year's fleet of shipping container securitizations.

President Trump’s budget would reduce funds to the Consumer Finance Protection Bureau, cut spending for several programs aimed at providing financial services and resources in underserved communities, and eliminate a fund designed to help regulators unwind a failing megabank.

CLOs are increasingly negotiating with investors for longer reinvestment periods. S&P Global takes a less favorable view of the practice than the other two major rating agencies, Fitch Ratings and Moody’s Investors Service.