International Financing Review March 7 2020^41STRUCTURED FINANCEpurchasing programme for prime euro
paper.
Two of last week’s new issues, a UK auto
ABS from BMW and a French RMBS from
Credit Agricole, were priced well-covered
after traditional bookbuilds, albeit at
generous spreads.
But two buy-to-let deals relied on protected
orders, while a Spanish trade receivables ABS
needed an order put in by the lead.
“Issuers want certainty and syndicates
can’t give certainty, so the only way is by
derisking, whether that’s by going pre-
placed or partially placed,” said the
SYNDICATEûOFlCIAL
“In this environment you want at least
one anchor guy in there so you can show
some kind of bookbuild to accounts sitting
on the sidelines,” said another ABS syndicate
banker.
“People do want to see some kind of book
update, to be sure they’re not the only ones
putting up their hands,” he said.
“Most of the asset managers and
treasuries still have cash to deploy, so it’s
more a question of what kinds of deals they
want to be participating in, and whether it
makes sense for issuers to come out [at
CURRENTûSPREADS=vFINDING LEVELS
Another securitisation banker highlighted
THEûDIFlCULTYûFORûSYNDICATEûOFlCIALSûOFû
assessing where clearing levels are.
“There’s no real secondary trading –
volumes are so thin there’s no way to
crystallise knowledge about where different
asset classes from different jurisdictions are
and where the right price point is,” the
banker said.
Both of last week’s BTL deals were
announced the previous Thursday, and both
were the second deals from originators that
debuted in 2019.
At the start of this year Dutch non-bank
lender DOMIVEST would have expected its DOMI
2020-1 to price well inside its 2019 trade,
which included Triple As at 85bp over three-
month Euribor.
At the end of January a new issue off the
Dutch Property Finance shelf, which was
trading 10bp inside Domi, sold seniors at
65bp.
Domivest went ahead with its deal despite
the market disruption but had to settle for
90bp on the Triple As, after IPTs at the 90bp
area.
“The securitisation market is important to
USûFORûOURûPORTFOLIOûlNANCING ûANDûTHATûmeans sometimes you have to ride the tides- you can’t always price everything at the
tight end,” Domivest’s chief executive
Jeroen Bakker told IFR.
When IPTs were announced joint leads
Barclays, Citigroup and Macquarie said there
WEREûPROTECTEDûLEADûORDERSûFORûALLûlVEû
offered tranches.
On the mezzanine, Classes B to E came at
90bp, 150bp, 170bp and 225bp, compared
with 140bp, 170bp, 210bp and 350bp for the
equivalent tranches from last year’s debut.
Unlike in the UK, where buy-to-let
mortgages are a separate, specialist product
compared with owner-occupied mortgages,
there is little distinction in the Netherlands.
Mortgage lending to professional landlords
remains dominated by the big High Street
banks, with Domivest one of the few
exceptions.
The RMBS is not eligible for the ECB to
purchase under its ABS purchase
programme, meaning bank treasuries were
less likely to participate and leaving the four
TOûlVEûBIGûASSETûMANAGERSûINûAûPOSITIONûTOû
INmUENCEûPRICING
TOUGH TIMING
The second BTL RMBS last week was UK
originator LENDINVEST‘s MORTIMER BTL 2020-1,
which saw IPTs announced on Thursday
with protected orders on a portion of Classes
A to D, and for all of Classes E and X.
IPTs for the three-year Triple As were
Sonia plus 110bp area, where the tranche
WASûûTIMESûCOVEREDû4HEûlNALûPRINTûWASûATû
107bp, where the tranche was 1.2 times
done.
IPTs on the AA/AA–, A+/A– and BBB+/BBB–
Classes B, C and D were 165bp, 215bp and
BPûALLûATûTHEûNUMBER ûANDûlNALûPRICINGû
WASûATûTHOSEûLEVELSû4HEûlNALûSTATUSûWASûû
times, 3.9 times and 2.7 times on the
tranches.
Steps were not shown for the BB/BB– Class
E and B–/B– Class X, which were priced at
345bp and 340bp.ALL EUROPEAN ISSUERS
BOOKRUNNERS: 1/1/2020 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)Includes securitisations, credit-linked notes (Euro, foreign, global and
domestics) and excludes CDOs.
Source: Refinitiv SDC code: B16n1 Lloyds Bank 6 1,459.85 14.1
2 Credit Agricole 1 1,145.46 11.1
3 BofA 5 1,131.19 10.9
4 JP Morgan 3 963.05 9.3
5 Citigroup 3 726.07 7.0
6 Barclays 4 676.41 6.5
7 ING 1 576.20 5.6
8 Commerzbank 1 576.20 5.6
9 Coop Rabobank 1 556.00 5.4
10 Morgan Stanley 2 531.88 5.1
Total 17 10,334.81GLOBAL STRUCTURED FINANCE IN EUROS
BOOKRUNNERS: 1/1/2020 TO DATE
Managing No of Total Share
bank or group issues €(m) (%)Includes securitisations, credit-linked notes (Euro, foreign, global and
domestics) and excludes CDOs.
Source: Refinitiv SDC code: B16g1 Credit Agricole 1 1,025.39 22.5
2 Goldman Sachs 2 791.39 17.3
3 JP Morgan 2 574.63 12.6
4 ING 1 521.35 11.4
5 Commerzbank 1 521.35 11.4
6 Coop Rabobank 1 500.00 11.0
7 Morgan Stanley 1 263.84 5.8
8 Barclays 2 171.63 3.8
9 HSBC 1 97.00 2.1
10 Natixis 1 97.00 2.1
Total 8 4,563.59ALL INTL ISSUERS (EXCLUDING SELF-FUNDED)
BOOKRUNNERS: 1/1/2020 TO DATE
Managing No of Total Share
bank or group issues US$(m) (%)Includes securitisations, PFI bonds and credit-linked notes. Excludes US
global ABS/MBS, CDOs and self funded issues.
Source: Refinitiv SDC code: J10d1 Goldman Sachs 20 4,958.06 10.3
2 Wells Fargo 18 4,536.62 9.4
3 Barclays 22 4,238.69 8.8
4 Credit Suisse 20 4,037.53 8.4
5 BofA 19 3,957.19 8.2
6 Citigroup 18 3,742.72 7.8
7 JP Morgan 19 3,513.01 7.3
8 Deutsche Bank 18 2,863.36 5.9
9 Nomura 16 2,489.39 5.2
10 Morgan Stanley 11 2,238.47 4.6
Total 92 48,193.28GLOBAL SECURITISATIONS IN STERLING
BOOKRUNNERS: 1/1/2020 TO DATE
Managing No of Total Share
bank or group issues £(m) (%)Including Euro, foreign, global and domestics, excluding CDOs.
Source: Refinitiv SDC code: B16i1 Lloyds Bank 6 1,119.20 26.5
2 BofA 5 820.48 19.4
3 Citigroup 3 508.19 12.0
4 Barclays 2 325.00 7.7
5 BNP Paribas 2 281.92 6.7
6 JP Morgan 1 250.00 5.9
7 Goldman Sachs 1 242.30 5.7
8 NAB 1 206.92 4.9
9 Wells Fargo 1 183.19 4.3
10 Morgan Stanley 1 183.19 4.3
Total 9 4,220.38SECURITISATIONS – ALL EUROPEAN RMBS
BOOKRUNNERS: 1/1/2020 TO DATE
Managing No of Total Share
bank or group issues €(m) (%)Including Euro, foreign, global and domestics, excluding CDOs
Source: Refinitiv SDC code: B10a1 Lloyds Bank 5 1,213.17 16.6
2 BofA 5 1,027.14 14.1
3 Credit Agricole 1 1,025.39 14.1
4 JP Morgan 2 801.15 11.0
5 Citigroup 3 657.54 9.0
6 Barclays 3 537.98 7.4
7 Coop Rabobank 1 500.00 6.9
8 Morgan Stanley 2 480.40 6.6
9 BNP Paribas 2 389.84 5.3
10 NAB 1 245.64 3.4
Total 11 7,288.816 IFR Bonds 2323 p 25 - 53 .indd 41 06 / 03 / 2020 19 : 18 : 08