Securitization

Middle market lender Madison Capital Funding is preparing its first collateralized obligation of the year.

Volkswagen’s U.K. finance arm is marketing £750 million ($884 million) of bonds backed by auto leases.

Commercial mortgage loan originations in 2017 are expected to increase 3% over last year to a record high, according to the Mortgage Bankers Association.

The industry’s reliance on these yardsticks to estimate the riskiness of a pool of borrowers is mathematically flawed.

In it’s continuing effort to shield taxpayers from potential defaults, Freddie Mac is now offering investors exposure to the credit risk of multifamily mortgages that are awaiting securitization.

Kensington Mortgage Co. (KMC) is pooling approximately £343.7 million (US$428.7) in prime-borrower first-lien and “buy-to-let” investor mortgages in the second UK mortgage-backed securitization being marketed this month.

GSO/Blackstone Debt Funds Management earned the top spot in deal-count of U.S. CLO transactions by registering 28 deals totaling $13.3 billion in 2016, according to a tally of manager activity in the collateralized loan obligation market by Moody’s Investors Service.

Increasingly, these transactions are being structured to give lessors more flexibility in terms of both the types of collateral and the ability to actively trade aircraft. As a result, transactions more accurately reflect lesssors’ fleets

Marketplace lender Kabbage is marketing $500 million of bonds backed by small business loans and lines of credit. The transaction, dubbed Kabbage Asset Securitization 2017-1, refinances a $270 million facility it obtained in 2014 that is set to expire.

Ocwen Financial has reached a deal with California authorities to resolve allegations that the mortgage servicing firm -- a frequent target of regulators in recent years -- again violated a range of state and federal laws.

Canadian banks are increasingly crossing the border to fund their credit card programs, taking advantage of lower borrowing costs available in the much larger U.S. market.

New subprime auto securitizations by Santander Consumer USA and American Credit Acceptance each utilize tweaks to recent collateral pool trends to mitigate the risk of growing losses in their managed portfolios.

Ford Motor Credit is marketing another $1.08 billion of bonds backed by prime auto loans.

A federal appeals court agreed Thursday to scrap an earlier ruling against the Consumer Financial Protection Bureau's constitutionality, saying it will revisit the issue at a hearing on May 24, while also opening the door to discuss a new wrinkle in the case.

Kroll Bond Rating Agency is maintaining its downgrade watch on portions of Diamond Resorts’ recent timeshare loan securitizations, expressing worries about future default levels.

For the third consecutive year, the captive finance credit unit of farm equipment manufacturer/dealer John Deere is choosing February to launch an asset-backed securitization of agricultural and construction equipment retail loans it originates and services.

Bond Street in New York has gotten a commitment from the investment bank Jefferies to purchase up to $300 million of its small-business loans.

Hilton Grand Vacations Trust 2017-A is a $350 million, two-note structure backed by more than 16,000, prime-borrower timeshare loans representing the company’s third overall asset-backed transaction since 2013.

Bain Capital Credit is pursuing the first U.S. CLO refinancing this year that does not appear driven by risk-retention strategies.