Top banks stretch out lead in busy October

Citigroup, Credit Suisse and Goldman Sachs took down the bulk of Bayerische Landesbank’s massive €6.5bn equivalent auction of mostly pre-crash RMBS, according to sources familiar with the list. And while a large swath of the bonds were passed on to investors eager to get their hands on these once-toxic securities, by Thursday dealers were still long some US$1bn in RMBS from the auction, according to Scott Buchta, mortgage strategist at Brean Capital, who cited public TRACE data. The auction comprised BayernLB’s bad bank portfolio of ABS assets...

A hearing has been set for November 28 to determine the consequential matters of the successful claim for damages brought by special servicer Hatfield Philips against property valuer Colliers International. The case relates to the Quelle Nurnberg property, the loan on which was securitised in CMBS transaction Titan Europe 2006-3. At the hearing, both parties’ submissions will be heard. These include the date from which interest and damages should run and the rate of interest, the payment of costs and the interest payable on these costs, the...

BNP Paribas Asset Management is marketing a €300m deal via RBS and Greensledge. The indicative structure for BNPP IP Euro CLO 2014 includes a €182.5m Triple A tranche, and €35.2m Double A, €16.5m Single A, €14m Triple B, €21.75m Double B, €8m Single B and €29m subordinated pieces. BNP Paribas Investment Partners will retain 5% of each rated note and 20% of the sub bonds to comply with risk retention rules. The portfolio targets loans only and is expected to be 75% ramped up at closing. Around €84m of the portfolio currently needs to be sourced...

BayernLB’s jumbo bid list kept the market occupied for the first two days of the week, and resulted in some nervousness on Wednesday morning while market participants wondered how the sector would react. The German Landesbank sold €6.5bn equivalent of assets – about 650 US and European bonds denominated in US dollars, euro and sterling that contacts said traded well. In many euro bonds price talk was increased between Monday and Tuesday, and it was taken down quite easily (see “Street long from BayernLB auction”) by dealers. A contact said...

Apollo Management last week increased its ALME Loan Funding III CLO to €411.1m from €350m via Citi. It offered two Triple A and two Double A tranches in floating- and fixed-rate versions, the former coming at 123bp and 200bp over three-month Euribor. Single A bonds came at 265bp, while Triple Bs and Double Bs printed at 345bp and 545bp respectively. A Single B class came at 655bp. The fixed-rate pieces printed at 1.711% and 2.654% respectively. The senior tranche matches the coupon achieved by Babson Euro CLO 2014-2 at the start of the month....

Affordable Housing Finance (AHF), a wholly-owned subsidiary of The Housing Finance Corporation (THFC), tapped its £208m 3.8% May 2042 bonds for £198.5m through RBC and RBS last Thursday, cutting inside initial price thoughts of Gilts plus 40bp to print at 38bp. The bonds, whose proceeds are on-lent to UK housing associations, are guaranteed by the Secretary of State for Communities and Local Government and rated Triple A by S&P. The issuer retains £15m of the deal. The AHF programme was announced in June 2013 to offer long-term debt to...

Nationwide Building Society has received noteholder approval to restructure its Silverstone RMBS master trust. The issuer announced last Monday that external investors holding 94.57% of the notes had voted, of which 94.25% had voted in favour of the plan. The UK lender wanted to simplify the structure of the trust by cutting the portfolio size and cancelling old notes to reduce encumbrance issues and potential liquidity costs. This included removing £8.06bn of mortgages from the pool to reduce the balance to £16.03bn. As well as reducing the...

Primary activity in the US ABS market was muted last week, with just two small deals totalling US$575m crossing the finish line by Friday afternoon. Both trades were under US$350m, barely inching up year-to-date issuance to US$175.904bn, according to IFR data. The slowdown in activity could partly be attributed to Bayerische Landesbank’s massive €6.5bn auction of mostly pre-crash RMBS out for bid, one banker said. “It sort of sucked the wind out of the market”. Investors looking for a rare stab at those legacy assets took focus away from the...

The US Securities and Exchange Commission is investigating subprime auto lending and securitisation practices at auto lender Ally Financial Inc, the company said on Friday. Since the start of the year, Ally has issued US$2.75bn in three deals of bonds backed by subprime auto loans, down from US$4.06bn across four deals last year, according to IFR data. In August, Ally issued a US$750m subprime auto ABS, the first such offering following the disclosure in early August that Santander Consumer USA Holdings Inc and GM Financial, the in-house...

Spain’s Alternative Fixed Income Market (MARF), a non-regulated market focusing on small- and medium-sized deals aimed at qualified investors, admitted its first securitisation issue last Friday. This comes after the September 5 Royal Decree allowing the trading of private securitisation funds in MARF, according to Spanish fund manager Intermoney Titulizacion. Intermoney said that there are fewer requirements for incorporating private funds than those for securities placed on official secondary markets, opening up the securitisation avenue...

Tiger Resources, a Democratic Republic of Congo copper company that is listed in Australia, has hired Citi as sole bookrunner and global co-ordinator for a debut 144A/Reg S bond. The company, rated B2/B–, will visit accounts in London, New York, Boston, Los Angeles, Hong Kong and Singapore. Tiger Resources is likely to target a US$250m offering through a five-year non-call three structure, according to a source.

KazMunaiGaz took advantage of a strong market tone on Friday following the Bank of Japan’s extra stimulus package, with a dual-tranche offering of 10 and 30-year bonds that  priced inside its curve. This is despite the deal having a quirky change-of-control clause that restricts when investors can ask for the bonds to be redeemed. State-owned KMG (Baa3/BBB–/BBB) priced a US$500m due May 2025 note at 244bp over mid-swaps to yield 4.95%, while a US$1bn due November 2044 bond was priced at plus 305bp to yield 6.10%.  That compares with KMG’s 2023s...