DBRS is expected to assign AAA ratings to the notes; Fitch Ratings is also expected to rate the deal. The notes have a weighted average life of 6.6 years and a legal final maturity of August 2024.
European collateralized loan obligations underperformed other types of securitization in the region in the first half of 2014, but Barclays expects CLOs to catch up on some of the ground they lost.
U.K. borrowers are refinancing their interest-only mortgages nearly as fast as they refinance mortgages that amortize, and this is reducing the risk in non-conforming residential mortgage-backed securities, according to Moodys Investors Service.
Citigroup plans to issue non-conforming, U.K. residential mortgage backed securities in a deal that is backed both by U.K. buy-to-let mortgages and non-conforming loans for owner-occupied properties.
Goldman Sachs International priced a 200 million ($270 million) multi-loan Italian CMBS dubbed Moda 2014 that is backed by two loans that are secured on retail outlets and shopping centers.
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.
Vice President of Regulatory Compliance
Firm: Clayton Holdings
In the news: How Ability-to-Repay Rules Could Reshape RMBS Market
Securitization of very large commercial mortgages is picking up again, and so is the leverage in some of these deals.Current Issue