Securitization

Crestline Denali Capital is preparing its first collateralized loan obligation offering since it was formed by the merger of two long-time CLO managers last fall.

Morgan Stanley’s first offering of commercial mortgage bonds of the year offers unusually concentrated exposure to a few large properties.

The Puerto Rico House of Representatives narrowly passed an energy sector reform bill, in another step toward adoption of a negotiated debt restructuring deal for the island's electric utility.

The burgeoning industry has been hoping the Supreme Court will overturn a problematic lower-court ruling, but the unexpected passing of a conservative stalwart makes that outcome less likely.

The Federal Housing Finance Agency's decision to exclude captive insurance companies from Federal Home Loan Bank membership makes the FHLB system like a private country club.

JP Morgan and Barclays are marketing $1 billion of commercial mortgage bonds backed by a pool of highly leveraged loans that is highly concentrated in a few large properties in New York City.

GM Financial’s first auto lease securitization of 2016 is a $1 billion transaction that tilts toward higher average customer credit scores and more shorter-term contracts compared to previous GM lease ABS issues.

American International Group is expanding bets on property lending and safe fixed-income securities after hedge-fund investments soured.

Life insurance companies are an untapped source of potential new Federal Home Loan Bank members, according to analysts at Fitch Ratings.

The second European collateralized loan obligation of the year is the first ever by U.S. money manager BlackRock.

NewStar Financial is releasing its first CLO since September 2015 with a $350 million portfolio of loans it has originated for small to medium-sized companies.

The notes are backed by Honda’s typically strong collateral in prime loans with high-quality credit borrowers (average FICO of 761) and lengthy seasoning (13.61 months), and supported by a hard credit enhancement of 2.75%. But the new securitization continues a recent trend in Honda ABS issuance that includes more long-term loans in excess of 60 months.

Flagship Credit Acceptance and Tidewater Finance Co. are marketing a combined $602 million of securities backed by subprime auto loans, according to rating agency reports.

Nonbank lender Oportun is making its fifth trip to the securitization market with a $124.8 million offering that is backed by fewer loans, but higher balances, than previous deals. Kroll has rated the deal.

Morgan Stanley agreed to pay $3.2 billion to end a joint federal-state investigation into its handling of mortgage-backed securities, the fourth deal to be struck in a probe of the big U.S. banks' role in the subprime mortgage meltdown and the financial crisis it spawned.

Spreads on the company’s latest offering of Connecticut Avenue Securities were well wide of levels on the previous deal, completed in October; and that deal, in turn, priced wide of the previous offering in July.

The Federal Home Loan Bank System was designed to provide liquidity to community lenders and traditional insurers, not to unregulated lenders that circumvent the membership rules.

Add this the list of things working against a revival in private-label securitization of residential mortgages: investors are rejecting loans at unprecedented rates because they do not comply with new regulations.

Citigroup, German American Capital Corp. and Wells Fargo are marketing $765 million in commercial mortgage bonds associated with the mortgage the three originated for lower Manhattan’s 225 Liberty Street skyscraper.

Fannie Mae is marketing its first offering of the year of Connecticut Avenue Securities, which offload some of credit risk of mortgage that it insures, according to rating agency reports.