|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||40.72 - 40.72|
|52 Week Range||37.30 - 71.80|
|Beta (3Y Monthly)||0.91|
|PE Ratio (TTM)||6.58|
|Forward Dividend & Yield||8.76 (21.52%)|
|1y Target Est||N/A|
Rating Action: Moody's assigns definitive ratings to nine CMBS classes of NCMS 2019- FAME. Global Credit Research- 05 Sep 2019. $193.3 million of structured securities affected.
Moody's Investors Service has assigned an A3 rating to The Black Belt Energy Gas District (the Issuer) Gas Prepay Revenue Bonds (Project No. 5), 2019 Series B-1, 2019 Series B-2, 2019 Series B-3 and 2019 Series B-4 (the Bonds).
(Bloomberg) -- On the last business day of June, accounts show H2O Asset Management had marked down its notes of Trent Petroleum to 50 cents on the euro. On the same day, 25 million euros ($27.4 million) of those bonds traded at twice that price.The discrepancy highlights the turbulence H2O has navigated this year. The firm, an affiliate of France’s Natixis SA, lost about a third of its mutual fund assets – and took the markdown -- during an investor exodus in June sparked by reports over holdings related to controversial German financier Lars Windhorst. Several H2O funds held rarely traded bonds linked to Windhorst’s investment vehicle, Tennor Holding.The Trent Petroleum notes weren’t the only ones where H2O’s estimated prices diverged from reported prices on Windhorst-related securities. Others included Italian lingerie company La Perla and Civitas, a property vehicle. Natixis said at the time the markdown reflected the “transactional value in case of an immediate sale rather than recording them at standard market value.”The divergence between estimated prices and actual trades reported under Europe’s Mifid II regulations underscores the vagaries of the opaque market for illiquid securities. Establishing the value of such holdings can be a challenge for investors, particularly in times of stress. The H2O situation came just weeks after noted stockpicker Neil Woodford was forced to bar withdrawals due to his inability to sell his holdings of illiquid shares.Read more on mutual funds facing tougher stress tests “The gap between the H2O reported prices and Mifid prices doesn’t appear to make any sense,” Robert Southey, founder of Southey Capital, a London-based broker specializing in illiquid securities. “H2O investors might like to ask the fund managers why they have written it down, when apparently there are sizable trades reported at par.”A spokesman for H2O declined to comment, referring to a June statement that said the lower valuations reduced the market value of these securities to less than 2% of assets under management, or about 540 million euros of the 27 billion euros at the time. The lower valuations were based on those “received by international banks” and in compliance with EU fund regulations, the statement said.In the case of H2O, cutting the face value -- along with the June sale of 300 million euros of Windhorst-linked bonds -- helped reduce the money manager’s holdings of the hard-to-trade securities, allaying investor concerns over the liquidity of its funds.While the fund firm said in June it was marking down the value of its Windhorst-linked bonds, the pricing details weren’t reported until August 21; the over-the-counter trades -- but not the buyers or sellers -- were published on July 30 under Europe Union’s Mifid II transparency rules.A spokesman for Windhorst was not immediately available for comment.In addition to Trent Petroleum, the debt of Italian lingerie company La Perla was cut to just over a quarter of face value as the first half of the year drew to a close. Four weeks later, 40 million euros of notes, about 8% of the total issue, traded at 95 cents on the euro, according to data submitted to Bloomberg LLP.H2O also marked down 50 million euros of Civitas notes, which are backed by German residential real estate, to 52 cents at the end of June; four weeks later, they traded at 95 cents. The transaction was executed two minutes after the trade of La Perla bonds on July 25.To contact the reporters on this story: Lucca de Paoli in London at email@example.com;Luca Casiraghi in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Vivianne Rodrigues at email@example.com, James HertlingFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Moody's approach to rating this transaction involved an application of Moody's Approach to Rating Large Loan and Single Asset/Single Borrower CMBS, Moody's Approach to Rating Structured Finance Interest Only (IO) Securities, and Moody's Approach to Rating Repackaged Securities. The structure's credit enhancement is quantified by the maximum deterioration in property value that the securities are able to withstand under various stress scenarios without causing an increase in the expected loss for various rating levels.
(Bloomberg Opinion) -- H2O Asset Management just filed the semi-annual report for one of its funds. It makes for fascinating reading, particularly if you happen to be a regulator concerned about investment products that offer clients daily redemption while at the same time as dabbling in hard-to-trade debt. If you’re a customer, however, you might want to question again what H2O has been doing with your money.A quick recap. In June, the Financial Times reported that H2O, one of Natixis SA’s asset managers, had stuffed its portfolios with bonds sold by companies related to German entrepreneur Lars Windhorst. The hard-to-trade nature of those securities prompted Morningstar to suspend its rating of one of H2O’s funds; by the end of the month, investors had pulled almost 8 billion euros ($8.8 billion) from them.On June 24, Natixis said the fund had switched to “record these securities at their transactional value in case of an immediate total sale, rather than recording them at their standard market value.” It turns out that those transactional values are way, way below their face values.Those figures are for the bonds in H2O’s Multibonds fund, and are for valuations assigned on June 28 – just over a week after the FT first detailed the asset manager’s excursion into illiquid debt. The Windhorst-related companies that sold the bonds include Italian lingerie maker La Perla and German residential real estate company Civitas Properties. The website for H20, which managed $32.5 billion at the end of 2018, doesn’t yet list the semi-annual reports for its other funds. But it’s clear that the more than 1 billion euros that the firm had lent to Windhorst by mid-year had been written down by between half and three-quarters.One of the steepest drops is for Tennor Finance BV, Windhorst’s renamed holding company, which was previously called Sapinda. H2O says the 100 million euros its Multibond fund owns of Tennor’s 5.75% notes repayable in 2024 are worth just 23.41 million euros. Data compiled by Bloomberg show that the notes were issued at 100% of face value on June 17 – less than two weeks before H20 revalued them at a discount of almost 77%. That’s a remarkably swift deterioration by anyone’s standards.Even the Tennor reappraisal, however, isn’t the biggest value drop H20 has suffered on its holdings. That honor is reserved for $155.5 million of bonds issued in June 2018 by ADS Securities, an Abu Dhabi brokerage firm. As of March, H20 owned $128 million of the issue, or 82% of it, after increasing its holdings twice from an initial $78 million in mid-2018, according to data compiled by Bloomberg.The Multibonds fund owned $15.55 million of face value of the securities as of the end of June. H2O lists them as being worth $3,343,483.52 – an impressively precise figure for a bond that appears never to trade. That marks a drop of almost 80% from their face value.ADS Securities is the only company that H2O has bought illiquid bonds from that Windhorst doesn’t own. But, as my Bloomberg News colleagues Sridhar Natarajan and Luca Casiraghi reported on June 27, ADS was entangled in a failed trade involving Windhorst, H2O and Goldman Sachs Group Inc. in 2016.In response to questions about the ADS bond investment, an external spokesman for H20 referred to a June statement, which said that the illiquid bonds bought by the fund “have indeed been referred to us by Lars Windhorst.”For H2O’s investors, those writedowns appear to have dented performance in June, the most recent month for which returns data is available on the company’s website. This chart shows the extent of the damage:H20 may end up being rewarded for its bravery. The illiquid bonds it owns are all scheduled to mature in the coming five years, and carry interest rates of between 4% and 8.25% – coupons that look increasingly attractive in a world where negative rates are increasingly the norm. And the year-to-date performance of its funds looks to have improved since mid-year. Moreover, the firm plans to create a new fund specifically designed to own what it calls “deep value” securities. But the speed and the severity of the markdowns is evidence that the greater rewards offered by hard-to-trade securities come with elevated risks – risks that the regulators may decide are higher than funds that offer daily redemption should be allowed to bear.To contact the author of this story: Mark Gilbert at firstname.lastname@example.orgTo contact the editor responsible for this story: Edward Evans at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Mark Gilbert is a Bloomberg Opinion columnist covering asset management. He previously was the London bureau chief for Bloomberg News. He is also the author of "Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable."For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Rating Action: Moody's assigns definitive ratings to Italian consumer loan ABS Notes issued by Brignole CO 2019-1 S.r.l. Global Credit Research- 01 Aug 2019. London, 01 August 2019-- Moody's Investors ...
NEW YORK , July 31, 2019 /PRNewswire/ -- ARCO 3 SpA ("ARCO") and Natixis have successfully closed senior facilities totaling US$69.1 million for the up-to-70MW portfolio of solar PV plants in ...
The potential deal would allow Natixis, owned by French cooperative lender BPCE, to cash out on its remaining 42 percent stake in Coface following an initial public offering of the company in 2014. The deal talks between Apollo and Coface are at an early stage, and there is no certainty they will result in an agreement, the sources said, asking not to be identified because the matter is confidential. Coface did not immediately respond to a request for comment, while Apollo declined to comment.
Moody's has not assigned ratings to GBP 24.36M Class E Floating Rate Asset-Backed Notes, GBP 11.59M Class X Floating Rate Asset-Backed Notes and GBP 11.59M Class Z Variable Rate Asset-Backed Notes which are also issued by the Issuer. SBOLT 2019-2 is a securitization backed by a static pool of small business loans originated through Funding Circle Ltd's ("Funding Circle") online lending platform and is the fourth transaction of its series.
Rating Action: Moody's assigns provisional ratings to Italian consumer loan ABS Notes to be issued by Brignole CO 2019-1 S.r.l. Moody's has not assigned any ratings to the EUR [ ] Class F Asset Backed Floating Rate Notes due July 2034.
Rating Action: Moody's assigns definitive ratings to RMBS Notes issued by Polaris 2019-1 plc. Global Credit Research- 02 Jul 2019. GBP 262.4 million RMBS Notes rated, relating to a portfolio of UK residential ...
(Bloomberg Opinion) -- With the explosions that have rattled Natixis SA’s H2O Asset Management and Neil Woodford’s flagship fund dominating the headlines in recent weeks and months, it’s worth noting that the environment for the European fund management industry as a whole is actually not as bad as those idiosyncratic blow-ups might suggest.The share prices of the region’s biggest asset managers have bounced back from the trashing they underwent last year. That’s partly because of lingering expectations that the sector is overdue for a bout of mergers and acquisitions. But it also reflects the likelihood that clients have been putting money to work, reversing the outflows that the industry suffered last year.Amundi SA reckons that $100 billion was withdrawn from European mutual funds in the final three months of 2018. Figures just released by the European Fund and Asset Management Association and the Investment Company Institute show investment fund assets in the region grew by 6.8% in the first quarter compared to the fourth, rising to 15.77 trillion euros ($18 trillion).Equity gains are clearly helping to tempt investors back into the markets. The Stoxx Europe 600 Index is up by more than 13% this year, putting it on track to deliver its best first-half gain since 1998, according to figures compiled by my Bloomberg News colleague Namitha Jagadeesh:And in fixed income markets, expectations that the Federal Reserve will lead the way in prompting central banks to ease monetary policy anew have helped goose bond market returns around the world:Challenges for the industry persist. The concerns about illiquid holdings, that have prompted investors to withdraw billions of euros and pounds from portfolios managed by H20 and Woodford, look set to spark a new bout of oversight and rules from the regulators. And those two episodes will only accelerate the shift into low-cost index tracking funds, to the ongoing detriment of active managers.But for now, life is about as good as it’s going to get for European funds. The bad news? It’s likely to delay – yet again – the much-need and long-anticipated consolidation that the industry still sorely needs.To contact the author of this story: Mark Gilbert at firstname.lastname@example.orgTo contact the editor responsible for this story: Jennifer Ryan at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Mark Gilbert is a Bloomberg Opinion columnist covering asset management. He previously was the London bureau chief for Bloomberg News. He is also the author of "Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable."For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Rating Action: Moody's assigns provisional ratings to four classes of SME Notes to be issued by Small Business Origination Loan Trust 2019-2 DAC. Global Credit Research- 25 Jun 2019. GBP million of securities ...
(Bloomberg Opinion) -- Enter the phrase “reach for yield” into Google, and the search engine will return 335,000 results in less than a second. So no-one should be blindsided by the revelation that investment managers have been tempted to boost returns by buying riskier securities in recent years. Regulators should still be asking hard questions right now of the portfolio managers they oversee.H2O Asset Management, a unit of French bank Natixis SA, is seeing billions of euros head for the door after the Financial Times reported last week that the fund had bought a bunch of bonds linked to entrepreneur Lars Windhorst.While the firm was transparent in reporting the securities it held, it took the FT to trace the threads between an Italian lingerie maker and a German real estate company and link them back to Windhorst. To investors, it looks like H2O loaned a large sum of money to the entrepreneur, dressing its actions up as a series of uncorrelated investments in private bonds sold by a diverse range of companies.Announcing a package of measures intended to stem the withdrawals, Natixis said on Monday that the fund had switched to “record these securities at their transactional value in case of an immediate total sale, rather than recording them at their standard market value.”I have no idea what the alleged standard market value for such illiquid securities would be and, I would suggest, neither does H20, no matter how hard it worked its spreadsheet to perform whatever cashflow analysis it could on Windhorst’s companies. But after “valuations obtained this Sunday from international banks,” H2O has revalued its holdings.H2O isn’t saying what the new, lower “transactional” valuations are. But the drop in the bonds’ aggregate weighting in the funds to less than 2% of assets under management, down from as much as 9.7% less than a week ago, gives some flavor of the discounts being applied.The move suggests Bruno Crastes, H2O’s co-founder and chief executive officer, is considerably less ebullient about those unlisted investments than he was in a video posted by the H24 Finance news service on Friday. In the English transcript of that interview supplied by H2O’s public relations firm, Crastes says that “obviously there is no reason for us to not continue in the future to invest in those private bonds.”That didn’t stop his firm from selling about 300 million euros ($342 million) of the private placements at the end of last week, according to my colleagues at Bloomberg News. Presumably the price those sales fetched is closer to the values produced by Sunday’s ringing around, rather than the market values ascribed to the bonds a week ago. But there’s a wider issue here than one fund manager juicing its returns. The reach for yield referred to at the start of this article is likely to have become even more desperate in recent years – and financial regulators need to be on their toes to safeguard the public from portfolio managers playing fast and loose with what counts as a liquid investment.Some $13 trillion of what we still laughingly refer to as the fixed-income market currently generates negative yields, meaning the only fixed aspect of the securities is that buyers end up paying for the privilege of stashing their cash in bonds:Even the $2.4 trillion global market for high-yield bonds is undergoing something of an identity crisis as non-investment grade debt offers less than two-thirds of the average yield investors have enjoyed in the past twenty years:With yields on government bonds at record lows in several countries, the temptation to roll down the credit curve into lower- or even non-rated fixed-income securities becomes harder to resist. And the risk of investors getting spooked and all heading for the exit at once has been shown to be a clear and present danger by the recent exoduses endured by H20, Neil Woodford and Swiss asset manager GAM Holding AG.Financial markets are built on several different types of origami. They range from the relatively simple maturity transformation of borrowing short-term money and lending it for a longer period, to more complex engineering such as collateralized debt obligations that slice securities into different risk buckets.Liquidity transformation, though, arguably poses the biggest risk to investors, since it can lead to their hard-earned capital being trapped in investments that turn out to be far harder to sell than the marketing brochures might have you believe. Here’s where the shoe has pinched three times in the past year; so liquidity, or rather the lack thereof, is exactly where regulators should be focusing their attention, to unearth any landmines before stretched valuations in the credit market cause the next financial crisis.To contact the author of this story: Mark Gilbert at firstname.lastname@example.orgTo contact the editor responsible for this story: Edward Evans at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Mark Gilbert is a Bloomberg Opinion columnist covering asset management. He previously was the London bureau chief for Bloomberg News. He is also the author of "Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable."For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.