Structured Finance News

Aldus Aviation Prices $520M Aircraft ABS

– The five-year class A notes, rated ‘A’ by Kroll Bond Rating Agency, yield 4.88%; that's more than the senior class on another recent deal backed by Embraer jets.

Regulators Delay Volcker Compliance for CLOs Until 2017

– As expected, federal regulators are delaying implementation of the Volcker Rule's prohibition on bank holdings of collateralized loan obligations, giving institutions an additional two years to comply.

Greystone Closes 1st Deals Via Freddie's Small Balance Loan Program

– The two transactions refinance over $4.6 million in loans secured by smaller rental properties in Los Angeles, California.

Karen Pallotta Joins Redwood’s Board of Directors

– She spent more than 20 years at Fannie Mae, most recently as head of the single-family credit guaranty business.

Sankaty Advisors Prepping €364M European CLO

– Rye Harbour CLO is the investment manager's third European collateralized loan obligation; it also manages 11 U.S. CLOs.

Fitch May Downgrade 20 CMBS if Terrorism Insurance Lapses

– Fitch Ratings could put 20 commercial mortgage securitizations under review for a possible downgrade if Congress fails to renew government-sponsored terrorism reinsurance.

CPS Closes on 4th Subprime Auto Loans Deal of 2014

– The $178.6 million class A notes have an average life of 1.21 years and are rated ‘Aa2’ by Moody’s and 'AAA' by DBRS; in a press release published Wednesday the company disclosed that they yield 1.49%.

European Banks Re-Marketing Retained Deals

– European banks have begun re-marketing securitizations that they had retained as collateral for central bank funding, and this is expected to accelerate in 2015.

JPMorgan Securitizes Merrill Legacy Mortgages

– The $352.7-million J.P. Morgan Seasoned Mortgage Trust 2014-1 is backed by prime loans originated from 2004 to 2007 by pre-BofA Merrill. A strength includes high quality borrowers, a weakness is that the were all interest-only for first ten years - amortization will bump up payments.

Tobacco Co. Merger Won’t Shrink Bond Payments

– Lorillard’s pending acquisition of Reynolds American shrinks the number of original manufacturers participating in the Tobacco Master Settlement Agreement to 2 from 3. But payment volume will stay the same.

Cantor Building Out Whole Loan Sales & Trading

– Cantor Fitzgerald hired Gary Wang and Karl Partch as managing directors in whole loan sales and trading. The hires reemphasize Cantor’s place in the whole loan trading space.

RGA’s Unit Issues $300m Insurance Bond

– The deal from a subsidiary of Reinsurance Group of America is linked to 2.65 million life insurance policies originated between 2006 and 2010.

CLOs Have Relatively Low Exposure to Oil & Gas: S&P

– Based on a review of about 700 U.S. CLO’s rated by S&P, the average exposure to energy companies is only about 3.3%; that’s a much lower concentration than these companies have in overall junk bond and leveraged loan markets, at 17%.

Credit Suisse, JP Morgan and Barclays Price CMBS

– The benchmark super senior, 10-year ‘AAA' notes sold at a spread of 95 basis points over swaps, eight basis points wide of price guidance. The notes also priced wider than the last two deals to come to market this month.

Freddie Mac Purchases Additional Mortgage Reinsurance

– The new policies cover a combined maximum of approximately $155 million of losses for a portion of the credit risk associated with a pool of single-family loans acquired in the third quarter of 2013.


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Fannie Mae Exploring New Ways to Transfer Risk to Private Sector

Unlike their existing risk-sharing programs, which have drawn $12.5 billion of private capital into the mortgage market by referencing $454 billion of mortgages since their July 2013 inception, some of the latest deals transfer the first loss sustained when a homeowner stops making payments.

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