Securitization

California Republic Bancorp in Irvine is pressing the accelerator on plans to expand its indirect auto lending business despite increasing industry concerns that the sector may be overheating.

Citigroup is marketing $771 million of commercial mortgage bonds backed by 37 loans secured by 75 properties, according to Kroll Bond Rating Agency.

The number of borrowers behind on private student loan payments rose slightly in the fourth quarter of 2015, but the overall trend is for continued improvement, according to Fitch Ratings.

European CLO manager CVC Credit Partners is preparing its first broadly syndicated loan portfolio of 2016 that will issue €400 million (US$447.3 million) in euro-denominated bonds.

Germany’s Bank11 fr Privatkunden und Handel GmbH (Bank11) is securitizing €550 million in auto-loan backed securities in a series of two classes of notes through its Revocar ABS platform.

The online consumer lender Avant is expanding into auto lending.

Fannie Mae priced its second offering of the year of Connecticut Avenue Securities transferring the credit risk on mortgages that it insures.

LCM Asset Management, American Capital and Telos Asset Management added three collateralized loan obligations totaling nearly $1 billion to the new issue pipeline Friday, according to rating agency reports.

Fitch Ratings believes that the market disruption caused by mortgages that fail to comply with a new consumer disclosure rules is out of proportion to amount of risk posed to mortgage bond investors.

The Supreme Court on Monday asked the Obama administration to express its views in a case that has raised doubts about the business model used by many online lenders.

A trio of private commercial mortgage veterans announced the launch of Shelby Funding in Boca Raton, Florida.

Social Finance's launch of a hedge fund to buy its loans should set off alarm bells among online lending cheerleaders in venture capital and stock markets; it also points the way to a long-term future for best-of-breed alternative lenders.

Fannie Mae said Friday it offloaded much of the credit risk on $19.5 billion of mortgages to a group of insurers and reinsurers via two Credit Insurance Risk Transfer (CIRT) transactions.

Provisional ratings were provided Friday to a pair of asset-backed securitizations to Apollo Aviation Group and work-vehicle fleet leasing firm Element Financial Corp.

Avis Rent a Car is seeking to issue up to $300 million in securitized notes, in one of its smallest securitizations of its rental car leasing contracts in years through the Avis Budget Rental Car Funding (AESOP) master trust.

The increasingly troubled sector often draws comparisons to the subprime mortgage market of the 2000s. But the more apt analogue is the auto-lending sector of the 1990s.

No surprise, Moody’s Investors Service has not been asked to rate Citigroup’s latest securitization of unsecured consumer loans originated by Prosper Marketplace.

Cerberus Capital Management is marketing its first securitization of re-performing mortgages of the year.