Two of Spains most prominent banks have structured new consumer-loan securitizations totaling nearly 1.89 billion (US$2.05 billion) in new bonds.
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.
The securitization follows just weeks after parent General Motors agreed to the sale of its historic Vauxhall brand line of vehicles, which comprised the bulk of securitized assets in GMACs two most recent E-CARAT platform ABS deals.
Spire Partners priced the first new Euro-denominated CLO deal for March, the 348 million Aurium CLO III last week, according to a report published Monday by Moody's Investors Service.
The default rate increase was driven by three loan defaults in the quarter: Business services provider Twenty Eighty, cancer care firm 21 Century Oncology and oil services company Petroleum Geo-Services, Moodys reported.
A nascent private bond market in France is expected to grow significantly over the next two years, and could complement, or possibly compete with, securitization of loans to small and medium-sized enterprises.
A policy fight is threatening the recovery of collateralized loan obligations in Europe.
European collateralized loan obligations issued pre-financial crisis are nearing the end of their reinvestment periods, yet the maturities of the loans that serve as collateral continue to shift further out into the future.
The latest generation of European CLOs may expose investors to a risk that didnt exist in most collateralized loan obligations issued before the financial crisis: fluctuations in foreign exchange rates.
With Global ABS around the corner, its only fitting that we turn our attention to Europe.
Treasurer, Head of Asset Management
Firm: NewStar Financial
Owning may offer consumers more savings than leasing, but loans pose a different set of risks to investors when pooled into collateral for bonds.Current Issue