Asset Securitization Report

Rhode Island Authority Issuing $50M in Student Loan Bonds

– Fitch Ratings and Standard & Poor’s have each issued preliminary double-A ratings to the new 2017 senior series A bonds that are split among 11 classes of notes with varying maturities.

Trade-Ins Represent Growing Risk for Auto Lenders

– By bending over backward when borrowers trade in an older car for a new one, lenders are said to have embarked down an unsustainable path.

Ciitgroup Launches 1st Conduit CMBS of the Week

– The $1.025 billion Commercial Mortgage Trust 2017-P7 relies on the "L" shaped risk retention strategy; Citigroup will retain 2.2% of the deal through vertical stake and Rialto Capital will hold another 7.7%

InvestCorp Marketing 1st Euro CLO Post-3i Takeover

– Harvest CLO XVII is the fifth new Euro-denominated collateralized loan obligation transaction of the year, with a pool of both secured term loans and high-yield bonds backing seven classes of rated notes and an unrated subordinate tranche. The size of the transaction is to be determined.

CLOs Increasingly Seeded by Rated Warehouses

– The time it takes to acquire a diversified pool of collateral is lengthening, yet banks are loathe to make warehouse lines of credit available for too long. So warehouse lines are being structured so as to attract capital from outside investors.

LSTA Warns on CLO Exposure to Distressed Retailers

– Morgan Stanley research stated that department stores account for only 6% of CLO retail exposures, there is more than $920 billion of loan exposure from Neiman Marcus residing in outstanding U.S. CLOs. Unfortunately for these CLOs, Neiman Marcus debt is priced near 80 cents on the dollar.

ABS Totals

– Issuance volume of asset-backed securities for the year through March 24, 2017.


– Asset-backed securities that priced in the two weeks ended March 24, 2017.

ABS Managers

– Underwriting league tables for asset-backed securities for the year through March 24, 2017.

King Street Capital Makes $507M CLO Debut

– The indicative portfolio consists of 115 loans from 105 high-yield, speculative-grade borrowers – with 13.3% of the loans concentrated in the telecom corridor, according to Fitch's presale report.

GSE Common Securitization Plan Delayed to 2019

– Implementation of the second phase of the common securitization platform had been projected for next year, but the anticipated time frame was delayed following "lessons learned" from the first phase.

Fannie Obtains Reinsurance for $510M of Single-Family Credit Losses

– The two credit insurance risk transfer transactions are each linked to a pool of 30-year, fixed-rate mortgages that the government-sponsored agency acquired from January through July 2016.

Fired Commercial Finance Group CEO Says He Was Punished for Whistleblowing

– The lawsuit against the Commercial Finance Association also names Andrea Petro, the president of the organization, and her employer, Wells Fargo & Co., as defendants, according to the complaint that was filed in in federal court last month.

Fitch: Auto Sector Faces Long-Term Credit Deterioration

– The rating agency warns that net chargeoffs and serious delinquencies (60-plus days) will continue to mount despite strong macroeconomic conditions (such as jobs growth) and tightening underwriting standards among prime lenders,

Crisis in Student Loan Servicing is Building

– Servicing practices that unnecessarily increase what a borrower owes can contribute to delinquencies. But other misconduct, such as inaccurate credit reporting, can have more insidious effects on a borrower’s financial health.

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Shift from Leases to Loans Is Powering Solar Securitization

Owning may offer consumers more savings than leasing, but loans pose a different set of risks to investors when pooled into collateral for bonds.

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