International Financing Review (IFR) has recognized Deutsche Bank as its Americas Securitization House of the Year for 2011.
IFR selected the Bank for its holistic market view, broad application of its structured finance expertise, creative solutions, integrated approach and consistency across market cycles, all while addressing the multiple needs of its clients.
“After three tumultuous years of recovery and stabilization, some segments of the US securitization markets, such as ABS and CMBS, may be poised to end 2011 with a modicum of year-on-year growth for the first time since 2006. Deutsche Bank has been a stalwart, committed, top-five league table player and consistent leader in those sectors for 11 years,” IFR said.
The Bank’s ability to navigate the bleak macroeconomic backdrop of 2011 was another reason that allowed Deutsche Bank to establish its top position, said IFR. The year began with a negative outlook on the mortgage market in January and ended with the European debt crisis and slow US growth weighing heavily on markets.
“When we thought of our business at the beginning of the year, we knew that new-product creation in the mortgage market was not going to come back online. It wasn’t going to solve itself,” said Tom Cheung, Head of the Credit Solutions Group in the US.
“From a fund-flow perspective, cash was coming back into the hands of portfolio managers. In the classical consumer ABS market, we thought we’d see modest growth in terms of creation of assets – but not enough to absorb this massive wall of amortizing cash that was going to happen.”
To compensate, the Credit Solutions Group expanded the non-flow asset classes where they already had expertise including timeshare deals, cell tower, container, railcar, aviation and whole business offerings. This included the syndicated acquisition financing for HNA Group / Bravia Capital’s acquisition of GE SeaCo.
The Bank’s Commercial Real Estate (CRE) team also finished the year on top with the highest market share in US CMBS, according to IFR, being the earliest player to re-engage in commercial mortgage backed securities.
Deutsche Bank remained extremely busy in flow ABS (asset backed securities); delivering innovative products to meet clients’ needs. These included the inaugural securitization of used car financing for independent auto dealers for DSC, the only manufactured housing securitizations since 2007 for Newcastle, and the first ever securitization of broadcast-tower lease payments for Richland Towers.
Amid the volatility of early August, caused by S&P’s US sovereign debt downgrade and the eurozone crisis, Deutsche advised Santander, Ally, and GM Financial to hold off on deals, despite the fact that this might have put them on a collision course if they all issued post-Labor Day in early September.
These types of seemingly controversial calls, which ultimately paid off, helped the Bank earn the trust of its clients during uncertain times according to IFR.
“Deutsche Bank’s commitment to this market across cycles and a deep understanding of our issuers’ and investors’ needs has provided the perspectives to position the bank as a leader in the ABS market,” said Jay Steiner, the Credit Solutions Group Head of Banking and Origination.