The Covid-19 pandemic is forcing many governments to expand their borrowing programmes. The table below details the impact of the outbreak on the funding requirements of major sovereign bond issuers.
A wider market rally boosted by positive vaccine news from Pfizer, Moderna and the University of Oxford has begun feeding into the European CLO market, tightening secondary spreads while primary markets remain more sluggish.
Penta CLO 2 has become the first CLO to switch its coupon payment from three month Euribor to six month Euribor, according to Fitch Ratings on Monday, following the flood of underlying loan borrowers choosing to push payments onto the longer timeline.
Mercedes-Benz priced Silver Arrow 12 on Thursday at one of the tightest auto ABS prints of the year, putting spread levels back in line with September prices, with the help of arranger Crédit Agricole.
The securitization market is pushing back against proposals in the European Parliament to tack a green framework for ABS deals onto existing discussions about NPL and synthetic securitizations that were supposed to be rapid-fire amendments to help the market fight off Covid-induced economic woes. Tom Brown reports.
Citi is planning to issue at least two deals a year from its new Dutch buy-to-let RMBS programme, putting the Jubilee deals on par with the bank’s Canada Square shelf in terms of issuance. Citi released an update for the €213m Jubilee Place 2020-1 on Tuesday, guiding the class ‘A’ notes in the 110bp area.
The first quarter of 2021 is set to be a cautious opening for the European CLO market, with many banks still unwilling to open new warehouses, given the volatility of this year. Sources anticipate just five to six deals landing in the first quarter.
The Central American Bank for Economic Integration (Cabei) said it became the first multilateral lender to sell a Covid-19 “vaccine bond” after raising $50m of five-year money to support immunisation initiatives when Covid-19 vaccine becomes available.
The European Parliament voted on Tuesday to pass a package of amendments to the securitization framework aimed at freeing up bank balance sheets and increasing lending to the real economy. The so-called "quick fixes" were left largely unchanged, helping the proposals push quickly on to the trilogue process.
Citi is making its Dutch buy-to-let RMBS debut, with the first deal from its new Jubilee Place shelf, which brings together mortgages from three different originators. A full stack €213m deal is on offer, with the equity pre-placed and Citi holding the retention.
With the UK in its second lockdown, there is growing frustration among commercial landlords that retailer tenants are taking advantage of payment waivers. It is vital for the health of the commercial real estate sector and the pension funds that finance it that this is not allowed to happen.
CarVal Investors is bringing its second Spanish RMBS securitization backed by re-performing loans originated by Catalunya Banc, mandating Natwest as arranger and Barclays and Standard Chartered as joint leads to syndicate the remainder of a portfolio it acquired from Blackstone.
European retail landlords are facing up to potential damage of Europe's wave of second lockdowns, with many tenants continuing to ask for full rent relief despite trading for three months at least over the summer, throwing the sector's long term health into doubt.
Alpha Bank has received two binding bids for the sale of an NPL portfolio worth around €10.6bn, closing the securitization process via Greece's Hercules guarantee scheme and cleaning its balance sheet to make way for new lending.
Rank Group, the UK gambling conglomerate that owns Mecca Bingo and Grosvenor Casinos, completed a capital raise for 19.9% of its share capital, to give it enough headroom to manage through the next stage of the Covid-19 pandemic.
Carlos ‘Sonny’ Dominguez, finance minister of the Philippines, has been forced to swap long-term planning for emergency responses to the coronavirus. He talks to GlobalCapital about what comes next.
The European ABS market remains confident despite the inconclusive outcome of the US presidential election as GlobalCapital went to press on Wednesday. The sector is one of the few capital markets to see deal activity this week, with Citizen Irish’s auto ABS pricing late on Wednesday.
First Citizen Finance is the only issuer out in the European ABS market this week, marketing an Irish auto ABS deal on the day of the US election, aiming to price between the high 70bp-80bp.
The Financial Conduct Authority has opted to give UK borrowers the option of deferring mortgage payments for another six months, after prime minister Boris Johnson announced a second four week lockdown across the UK on Saturday, with the possibility of a further extension.
Industrial Bank Co has locked up more than $800m-equivalent from an international bond sale earmarked for green and social projects.
New national lockdowns in France and Germany smashed secondary equity markets this week, but ECM bankers are confident that as the shock subsides there will still be deals to do.
The ECON committee of the European Parliament has pushed back a meeting to agree on proposed amendments to the securitization market, making it unlikely that the UK will be able to adopt the same measures before Brexit. The divergence could pin ABS as the first capital market to see significant divisions between the UK and the EU after the two entities separate.
Bank of America, Société Générale, and BNP Paribas are arranging a multi-jurisdiction CMBS backed by a portfolio of Blackstone-owned logistics properties.
Concerns over the worsening coronavirus infection rate in Europe sent bank spreads wider on Thursday, as investors avoided taking on risk in the secondary market.
South Korea’s Kookmin Bank used a Covid-19 sustainability bond label for its $500m bank capital deal on Wednesday.
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