Our Full Service Trustee Experience Is the Advantage Your Deal Deserves
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Our experience is your advantage. We have the talent, resources, and infrastructure to handle all aspects of your deal. DOCUMENT CUSTODY BACKUP SERVICING OUR QUALITY STAFF, EFFICIENT PROCESSES, OUR PROFICIENCY IN DEAL EXECUTION CAN Our full service trustee AND ACCURATE AND TIMELY REPORTING INSTILL THE CONFIDENCE AND PEACE OF MIND MAKE THE DIFFERENCE. YOU NEED WHEN CLOSING A TRANSACTION. experience is the advantage INDENTURE TRUSTEE INDEPENDENT DIRECTOR SELECTING A QUALITY CORPORATE TRUSTEE HAS OUR KNOWLEDGEABLE, RELIABLE, AND ACCESSIBLE your deal deserves. BECOME AN INCREASINGLY COMPLEX TASK. OUR INDEPENDENT DIRECTORS HAVE EXPERIENCE LONG-TENURED EXPERTS, CLIENT RETENTION, AND WITH A WIDE VARIETY OF STRUCTURED FINANCE NIMBLENESS MAKE OUR TEAM THE CLEAR CHOICE. AND SECURITIZATION TRANSACTIONS. Visit our SFIG Vegas 2017 booth to meet our team – and learn about how we can be your trustee of choice. AN M&T BANK AFFILIATE Wilmington Trust is a registered service mark. Wilmington Trust Corporation is a wholly owned subsidiary of M&T Bank Corporation. Wilmington Trust Company, operating in Delaware only, Wilmington Trust, N.A., M&T Bank and certain other afliates, provide various duciary and non-duciary services, including trustee, custodial, agency, investment management and other services. International corporate and institutional services are offered through Wilmington Trust Corporation’s international afliates. INDENTURE TRUSTEE | PAYING AGENT | BACKUP SERVICING | DOCUMENT CUSTODY Loans, credit cards, retail and business deposits, and other business and personal banking services and products are offered by M&T Bank, member FDIC. INDEPENDENT DIRECTOR | OWNER TRUSTEE | TAX & ACCOUNTING ©2017 Wilmington Trust Corporation and its afliates. All rights reserved. CS14580 2017 GCM-ASR_BellyBand.indd 2-3 2/8/2017 9:46:07 AM CS14580 (wt013014)_ASR Belly Band _ 17” w x 5” h WILMINGTON TRUST RENOWNED EXPERIENCE | CORPORATE TRUST WILMINGTON TRUST RENOWNED EXPERIENCE | CORPORATE TRUST A local touch OUR EXPERIENCE IS YOUR ADVANTAGE. with a global reach. At Wilmington Trust, we’ve been working We’re ready to with issuers since the inception of the make a dierence Asset Backed Securitization market. for you – contact We oer a full suite of trustee services one of us today JACK BEESON RICK D’EMILIA PATRICIA EVANS BEN JORDAN ROSELINE MANEY JASON BUECHELE BUSINESS DEVELOPMENT BUSINESS DEVELOPMENT HEAD OF TRANSACTION JEN LUCE PRODUCT LEADER for many unique and complex asset at 866-829-1928. HEAD OF GLOBAL ANALYTICS MANAGER VICE PRESIDENT CAPITAL MARKETS OFFICER (ABS/MBS) OFFICER (ABS/MBS) MANAGEMENT (ABS/MBS) (ABS/MBS) classes. With oces in the U.S. and Europe, we are uniquely positioned to serve clients around the world requiring sophisticated solutions for their trustee and administrative needs. For more insight on how we’ve successfully supported clients on structured finance, contact one of our experienced professionals at 866-829-1928 or visit us STEVE O’NEAL MIKE ORENDORF ADAM SCOZZAFAVA SHAHEEN MOHAJER ASSET SERVICING BUSINESS DEVELOPMENT CHRISTOPHE SCHROEDER TOM STRAUSS PATRICK TADIE PAT TRAINOR at wilmingtontrust.com/structuredfinance. VICE PRESIDENT HEAD OF NON-U.S. SALES VICE PRESIDENT VICE PRESIDENT GROUP VICE PRESIDENT HEAD OF U.S. SALES MANAGER (ABS/MBS) OFFICER CS14580 2017 GCM-ASR_BellyBand.indd 4-5 2/8/2017 9:46:13 AM CS14580 (wt013014)_ASR Belly Band _ 17” w x 5” h www.asreport.com | @asreport As nonprime mortgage lending picks up, RMBS buyers are seeking – and getting – more information than ever April 2017 | Volume 17, Number 3 ASR0417_Edit.indd 1 3/29/2017 10:32:09 AM ASR0417_Edit.indd 2 3/29/2017 10:32:10 AM ASR0417_Edit.indd 3 3/29/2017 10:32:10 AM One State Street Plaza, 27th Floor, New York, NY 10004 Editorial Editor in Chief: Allison Bisbey [email protected]; 212.803.8271 Senior Editor: Glen Fest [email protected]; 817.847.8041 Associate Art Director: Neesha Haughton [email protected]; 212.803.8815 INCREASED VISIBLITY Contributors Robert Barba, Andy Peters, John Reosti Group Editorial Director, Banking & Capital Markets Richard Melville [email protected]; 212.803.8679 VP, Content Operations and Creative Services: Paul Vogel [email protected]; 212.803.8832 Director of Creative Operations: Michael Chu [email protected]; 212.803.8313 Director of Content Operations: Theresa Hambel [email protected]; 212-803-8245 Publishing VP Capital Markets Division: Harry Nikpour 212.803.8638 Vice President of Sales, Banking & Payments: Dennis Strong 212.803.8372 Associate Publisher: Louis Fugazy 212.803.8773 Marketing Marketing Manager: Raquel J. Lucas 212.803.8322 Chief Executive Officer: Douglas J. Manoni Chief Financial Officer: Michael P. Caruso Chief Revenue Officer: Marianne Collins EVP and Chief Content Officer: David Longobardi Chief Product & Audience Officer: Minna Rhee Chief Marketing Officer: Matthew Yorke SVP, Conferences: John DelMauro SVP, Human Resources: Ying Wong 4 Asset Securitization Report April 2017 ASR0417_Edit.indd 4 3/29/2017 10:32:11 AM CONTENTS 10 INCREASED VISIBLITY As nonprime mortgage lending picks up, RMBS buyers are seeking – and getting – more information than ever By Allison Bisbey ABS MBS ABS VEGAS 18 Six-Year Stretch 24 Multifamily Too Hot? 14 More Risk Retention CLO managers are taking advan- Some banks are cooling it, citing Why stop at 5%? CMBS investors tage of high demand to negotiate what they see as warning signs, say they can’t get enough. for longer reinvestment periods, particularly in luxury apartments. 14 Subprime Auto Stress which were common precrisis. Longer terms may explain why 20 Rating CLO Warehouses LEAGUE TABLES loans are going bad so quickly. Lengthened ramp-up times for 15 CLO Triple-As CLOs are prompting lenders to 25-27 ABS Managers, Issuers seek investors’ help with alterna- 28-30 MBS Managers, Issuers How low can spreads go? Pretty tive warehouse financing. low, say conference attendees. 21 Commonbond Q&A 15 CLO Triple-As 16 SFIG Supports Blockchain CEO David Klein talks about the maturation of online lending and 16 Jury’s Out on Marketplace benefits of an OCC Charter. 17 Denial of Service Aacks . Reproduction or electronic forwarding of this productis a violation of federal copyright law! Site licenses are available — please call Customer Service 212.803.8500 or [email protected] Subscription Information: [email protected] | 212.803.8500; Bulk subscription | US/Canada $2,995 | Annual Rate (8 issues) International $3,035 Asset Securitization Report - (ISSN # 1547-3422) Vol. 17, No. 3, is published 8 times a year by SourceMedia, One State Street Plaza, 27th Floor, New York, NY 10004. Postmaster: Send address changes to Asset Securitization Report, SourceMedia, One State Street Plaza, New York, NY 10004. For subscriptions, renewals, address changes and delivery service issues contact our Customer Service department at (212) 803-8500 or email: [email protected]. All rights reserved. Photocopy permission is available solely through SourceMedia, One State Street Plaza, 27th Floor, New York, NY 10004. For more information about reprints and licensing content from Asset Securitization Report, please visit www.SourceMediaReprints.com or contact PARS International Corp. (212) 221-9595. Asset Securitization Report is a general- circulation publication. No data herein is or should be construed to be a recommendation for the purchase, retention or sale of securities, or to provide investment advice of the companies mentioned or advertised. SourceMedia, its subsidiaries and its employees may, from time to time, purchase, own, or sell securities or other investment products of the companies discussed or advertised in this publication. ©2017 Asset Securitization Report and SourceMedia, Inc. All rights reserved. April 2017 www.asreport.com 5 ASR0417_Edit.indd 5 3/29/2017 10:32:13 AM EDITOR’S LETTER Subprime RMBS 2.0 Will they get it right this time? Aer the financial crisis, subprime mortgage lending came to a complete halt. Banks are still steering clear of this market, but a handful of nonbank lenders, mostly private-equity backed, see a big opportunity lending to borrowers who may have spoy credit, but are still reasonably good risks. Aer a slow start, they are gaining some traction with both borrowers and mortgage bond investors. Six sponsors have issued over $1.5 billion in deals since 2015, though only a few have been rated. Both Fitch Ratings and Kroll Bond Rating Agency both expect to see more rated deals, which could lower funding costs, and in turn, boost lending. Much of the issue is devoted to the Structured Finance Industry Group’s annual conference in Feb- ruary; hot topics included the growing pains of the marketplace lending industry and the potential revolutionary use of blockchain applications (the technology behind bitcoin distribution) in financial services and securitization. Conference speaker and former Homeland Security chief Michael Cher- toff presented a sobering keynote, however, in warning about the threats the financial industry faces in the growing sophistication of hackers to use growing universe of “smart” devices and appliances (from televisions to refrigerators) with decidedly weak security protocols to undermine our national and financial systems’ security. Glen Fest also has two articles on dynamics in the CLO market, where the scarcity of loan collateral is compelling sponsors to obtain rated lines of credit in order to warehouse collateral for deals. At the same time,