Sized at RMB3.5 billion ($549 million), Bavarian Sky China 2015-2 is the biggest Chinese auto loan deal by any foreign-owned finance company, according to Moody's Investors Service.
The deal, which is unrated, provides three years of protection, on a per occurrence basis, for earthquakes affecting the Istanbul region. It pays more than the inaugural deal, completed in 2013, which is rated by Standard & Poor's.
While the collateral behind the CNY1.5 billion ($242 million) deal is well cushioned against default borrowers on average put down 65% of the vehicle's value there is no back-up servicer.
The RMB1.66 billion ($267.6 million) of class A notes are rated A by Moodys and AA by Fitch; they pay a fixed rate of 3.8%.
No Chinese collateralized loan obligation has been listed on a securities exchange. Moody's says it's a good idea though panicked equity investors in Shenzhen and Shanghai probably have other things on their mind right now.
Controversy over the Mexican equipment lease sector
After contracting sharply last year amid regulatory uncertainty and an economic slowdown, Brazils structured finance market now appears to be poised for a recovery.
Five new originators of Russian RMBS debuted last year; players say the issuer stable will keep growing.
Investors no longer feel limited to their own country for securitization investment opportunities; they are becoming comfortable with the risks and rewards of investing in and owning a global book.
Firm: Broadmoor Consulting LLC
In the news: Marketplace Lenders Are a Systemic Risk
As concerns mount about the riskier loans being packaged into commercial mortgage backeds, several banks have come up with a new strategy for making deals more attractive to investors. They are boosting exposure to both high quality and highly leveraged mortgages.Current Issue