2020-04-04 IFR Magazine

50 International Financing Review April 4 2020

HAVEûBEENûlNANCIALLYûSTABLEvûTHEû&#!ûSAIDû

in a statement.

“They are not a substitute for our normal

forbearance where that would be more

suitable for a consumer in serious and

IMMEDIATEûlNANCIALûDIFlCULTYû7HEREû

consumers can still afford to make

payments, they should as normal and this is

likely to be in their best long-term interest

to continue to do so.”

ECB BUYS €1bn FOR ABS

PURCHASE PROGRAMME

4HEû%#"ûBOUGHTûõBNûFORûITSû!"3û0URCHASEû

Programme for the week ending March 27.

After netting out €300m of redemptions,

THEûPROGRAMMEûNOWûHOLDSûõBNûOFû!"3

The ECB’s other purchase programmes

BOUGHTûõBNûCOVEREDûBONDSûõBNû

public sector assets, and €2.4bn corporate

debt. The Pandemic Emergency Purchase

Programme remained empty at the end of

that period.

*0û-ORGANû!"3ûRESEARCHûESTIMATESûTHEû

%#"ûWILLûBUYûõBNûNETûOFû!"3ûINûû

COMPAREDûWITHûANûESTIMATEDûõBNnõBNû

net of covered bonds.

It had bought only small quantities of

bonds this year until the second week of

March, when purchases began stepping up.

It is not clear if that signalled an increased

WILLINGNESSûTOûBUYû!"3ûORûSIMPLYûTHATûFEWû

eligible eurozone securitisations had closed

before that point.

The ECB has €750bn available to spend

through its Pandemic Emergency Purchase

0ROGRAMMEûANDûADDEDûANûEXTRAûõBNûTOû

its Asset Purchase Programme which

restarted last year at €20bn per month.

SANTANDER ISSUES AND RETAINS

SPANISH CONSUMER LOAN ABS

BANCO SANTANDER issued and retained SANTANDER

CONSUMO 3 last week. The deal is a self-arranged

õBNû3PANISHûCONSUMERûLOANû!"3

4HEûINITIALûPORTFOLIOûCOMPRISESûû

loans for a total €2.328bn principal

OUTSTANDINGû4HEREûISûANû

MONTHûREVOLVINGû

PERIODûENDINGûINû-ARCHû

EUROZONE MORE LIKELY TO

RESTART ABS PRIMARY

4HEûREOPENINGûOFûTHEû%UROPEANû!"3ûMARKETû

is more likely to come from the eurozone

than from the UK, although secondary

SPREADSûWILLûNEEDûTOûTIGHTENûlRSTûACCORDINGû

to a research note from JP Morgan.

*0û-ORGANûEXPECTSû%UROPESû!"3ûPRIMARYû

market to remain quiet until there are

MOREûDElNITIVEûSIGNSûTHATûCORONAVIRUSû

volatility is abating.

h'IVENûTHEûSIGNIlCANTûRE

PRICINGûOFû

securitisation risk premia that has

occurred ... we believe that renewed

primary market activity will need to be led

by a recovery in secondary spreads as an

indication that investors’ risk appetite is

returning,” the bank said.

It expects that activity to start with high

quality prime risk or “cash surrogate”

sectors. Asset managers often use quick

paying Triple A asset-backed paper such as

'ERMANûAUTOû!"3ûASûANûALTERNATIVEûANDû

slightly higher-yielding place to park cash.

JP Morgan says the eurozone is more

LIKELYûTOûSUPPLYûTHEûlRSTûNEWûISSUESûTHEû

ECB’s purchase programmes should

support new issuance, while the UK’s new

4ERMû&UNDINGû3CHEMEûCOULDûCANNIBALISEû

UK banks’ and building societies’ secured

funding needs.

JP Morgan estimates the ECB will buy

õBNûNETûOFû!"3ûTHISûYEARûANDûõBNn

õBNûNETûOFûCOVEREDûBONDS

The ECB has €750bn available to spend

through its Pandemic Emergency Purchase

0ROGRAMMEûANDûADDEDûõBNûTOûITSû!SSETû

Purchase Programme (APP) which

restarted last year at €20bn per month.

4HEûõBNûOFû!"3ûWOULDûMATCHûTHEû

AMOUNTûBOUGHTûUNDERûTHEû!00ûINûûBUTûBEû

LOWERûTHANûTHEûõBNûBOUGHTûINûûTHEû

lRSTûYEARûOFûTHEûPROGRAMMEû&IGURESûFORûû

TOûûWEREûõBNûõBNûANDûõBN

US MBS

GINNIE MAE TO OFFER RELIEF FOR

US MORTGAGE FIRMS

GINNIE MAE is expected to launch a lending

programme in April to help mortgage

servicers facing a cash squeeze as a result

of government measures that offer to

relief for borrowers due to the coronavirus

crisis.

Mortgage servicers are obligated to

make monthly payments to holders of

mortgage-backed securities backed by

loans they are servicing, and are

securitised through Ginnie Mae’s

programmes, even if they face a

shortfall in collecting money from

home borrowers.

ALL INTL NEW ZEALAND DOLLAR BONDS

BOOKRUNNERS: 1/1/2020–31/3/2020

Managing No of Total Share

bank or group issues NZ$(m) (%)

Including preferreds. Excluding equity-related debt.

Source: Refinitiv SDC code: K4

1 NAB 2 448.58 48.3

2 ANZ 1 298.77 32.2

3 TD Securities 1 149.81 16.1

4 Mizuho 1 32.00 3.4

Total 3 929.16

ALL INTERNATIONAL RAND BONDS

BOOKRUNNERS: 1/1/2020–31/3/2020

Managing No of Total Share

bank or group issues R(m) (%)

Including preferreds. Excluding equity-related debt.

Source: Refinitiv SDC code: K7

1 JP Morgan 9 3,063.96 50.3

2 RBC 2 750.00 12.3

3 BofA Securities 1 530.20 8.7

4 TD Securities 1 525.88 8.6

5 BNP Paribas 1 500.00 8.2

6 HSBC 1 375.00 6.2

7 Goldman Sachs 1 207.20 3.4

8 Credit Agricole 3 139.00 2.3

Total 19 6,091.24

ALL INTL CANADIAN DOLLAR BONDS

BOOKRUNNERS: 1/1/2020–31/3/2020

Managing No of Total Share

bank or group issues C$(m) (%)

Including preferreds. Excluding equity-related debt.

Source: Refinitiv SDC code: K2

1 TD Securities 5 604.97 13.5

2 Scotiabank 6 535.79 12.0

3 BMO 5 529.97 11.8

4 CIBC 5 285.79 6.4

5 RBC 5 285.79 6.4

6 Morgan Stanley 1 250.00 5.6

7 NBC 3 230.82 5.2

Total 10 4,479.85

ALL INTERNATIONAL TURKISH LIRA BONDS

BOOKRUNNERS: 1/1/2020–31/3/2020

Managing No of Total Share

bank or group issues TL(m) (%)

Including preferreds. Excluding equity-related debt.

Source: Refinitiv SDC code: K17

1 JP Morgan 3 269.43 23.8

2 Credit Agricole 4 71.90 6.4

3 TD Securities 1 55.50 4.9

Total 9 1,131.55

NEW ASSET–BACKED SUMMARY DETAILS: WEEK ENDING 3/4/2020

Issuer Amount (m) WAL Coupon (%) Bookrunner(s) Rating Asset type

Csmc 2020–Rpl2 US$287.188 – N/A Credit Suisse NR/NR/NR RMBS

Freddie Mac SPC Series K–F77 US$536.618 – USL+70bp Credit Suisse/Morgan Stanley NR/NR/NR CMBS

Freddie Mac SPC Series K–F77 US$250.000 – SOFR+90bp Credit Suisse/Morgan Stanley NR/NR/NR CMBS

6 IFR Bonds 2327 p 25 - 65 .indd 50 03 / 04 / 2020 20 : 29 : 01