ABS

  • Market moves - 23 March

    CDS clearing developments
    Intercontinental Exchange has transitioned index CDS open interest from CME Group to ICE Clear Credit, follows CME Group’s decision to exit the CDS business and transfer client positions to an alternative clearing house. ICE Clear Europe has also launched clearing for North American investment grade and high yield index CDS instruments, thereby providing regional customers the ability .......

    News 23 March 2018

  • Non-traditional ABS growth to continue

    There was record ABS issuance in 2017, with the most since the crisis. Non-traditional ABS accounted for around US$27bn, with whole business securitisation issuance reaching a record-breaking US$7.4bn, while aircraft ABS came back strongly after a quiet 2016.

    The growth of non-traditional ABS is being driven by investors reaching for yield. Of the various non-traditional sectors, including not .......

    News Analysis 23 March 2018

  • Risk transfer round-up - 23 March

    Credit Suisse is believed to have priced a capital relief trade referencing a loan book originated in Switzerland. The deal was allegedly 3x subscribed, with guidance at 7.625% but printing at 7%.

    Separately, arrangers note an increase in requests for transactions by standardised banks, with deals already said to be in the pipeline. Most of the transactions until now were .......

    News 23 March 2018

  • Grappling with uncertainty

    Capital relief trade issuers are incorporating structural features highlighted in the EBA’s risk transfer discussion paper in an effort to gain some regulatory certainty in the absence of any guidance. Challenges remain, though, as significant risk transfer (SRT) recognition will depend on negotiations between national regulators and banks.

    “There are a number of grey areas that can affect the SRT status of a .......

    News Analysis 23 March 2018

  • Increase in liquidity 'hard to measure'

    Liquidity in structured products is difficult to quantify, and perhaps even to define. Whichever way it is measured, traders agree that it has increased and predict that over the course of 2018 spreads are going to continue their long tightening trend.

    Liquidity is commonly identified by the presence of associated phenomena. Two-way markets made by dealers are considered to be .......

    News Analysis 22 March 2018

  • Marketplace lending now 'mainstream'

    The US consumer economy’s long recovery has now become well established and access to credit has developed markedly over the last few years. Marketplace lending ABS has become similarly well established in this environment and is set to continue its development, although there are fears that the market is now teetering towards a bubble.

    A senior executive at .......

    News Analysis 22 March 2018

  • Greek lease ABS prepped

    Hertz franchisee Autohellas is in the market with AutoWheel Securitisation, an ABS backed by operational auto leases extended to Greek corporates and SMEs. The €101.5m transaction is the first non-bank leasing securitisation to be executed in Greece.

    AutoWheel Securitisation is a cash securitisation with an 18-month revolving period, backed by auto leases and future sales proceeds from the .......

    News 19 March 2018

  • Market moves - 16 March

    EMEA

    Citigroup has appointed Laura Coady to the newly created position of head of EMEA, structured finance syndicate desk and she will continue to report locally to EMEA co-heads of global structured finance and securitisation Peter Keller and Bob Liao, and report globally to Vikram Prasad, global head of credit syndicate desk, taking responsibility for distributing all products from the .......

    Market Moves 16 March 2018

  • Doubling-up on due diligence?

    Securitisation investors believe that their own due diligence procedures will still be required on deals carrying the STS label, for fear they may lose the designation. Nevertheless, the STS framework is expected to lead to better quality ABS product, with reliance on the label increasing over time.

    Henry Cooke, executive director at Gryphon Capital, commented at a recent PCS seminar .......

    News Analysis 16 March 2018

  • Issuers urge goodwill on STS

    European securitisation issuers are modelling new transactions and updating legacy deals, across a range of asset classes, to be STS compliant. However, there is agreement that an overly punitive regulatory environment could harm the chances of the framework’s success, with some issuers backing the implementation of a transition period.

    Steve Gandy, md at Santander Global Corporate Banking, commented at a .......

    News Analysis 15 March 2018

  • Market moves - 9 March

    North America
    Anthony Orso has joined NKF Capital Markets as president of capital markets strategies. Orso will support the integration of Berkeley Point Capital with ARA, two companies recently acquired by NKF Capital Markets, an affiliate of the Newmark Group. He will work closely with Jeff Day, ceo of Berkeley Point Capital and Blake Okland, vice chairman and head of US multifamily. .......

    Market Moves 9 March 2018

  • Cyber tops ILS agenda

    The insurance sector continues to push the boundaries of innovation, with new product offerings in terror and nuclear risk already structured and a cyber risk ILW said to be in the pipeline. There are also hopes that cyber and terror ILS products may lead to repeat issues and so buck the trend for one-offs in the sector.

    Thomas .......

    News Analysis 9 March 2018

  • Efficiency drive

    Credit Suisse is pioneering the re-tranching of capital relief trades, following the implementation of the new securitisation framework in Switzerland (SCI 9 February). However, more widespread re-tranching activity is expected to emerge over the next 24 months, as issuers seek to retain the efficiency of their transactions.

    The new securitisation framework became effective in Switzerland on 1 January .......

    News Analysis 9 March 2018

  • Basel 4 impact 'manageable'

    The new Basel 4 capital framework (SCI 14 December 2017) is expected to increase Dutch bank RWAs by approximately 25%, on a pro forma basis, equivalent to around 300bp of CET1. However, the impact is expected to be manageable, considering strong capitalisation and profitability levels, as well as the long implementation timeframe.

    Higher capital requirements will be driven .......

    News 7 March 2018

  • Risk-sharing on the agenda

    Panellists participating in SCI’s Risk Transfer & Synthetics Seminar are primed to discuss everything from traditional capital relief trades through to GSE credit risk transfer and bespoke investments at the event next week. Indeed, the theme of risk-sharing is expected to be explored in some depth across a number of panels.

    “Structural issues are key to determining the .......

    News 7 March 2018

  • Diesel ban 'bad news' for auto ABS

    Germany’s Federal Administrative Court has ruled that cities in Germany can impose restrictions on diesel vehicles. The ruling has the potential to lead to diesel car bans throughout the country, with a potential impact on German auto ABS transactions.

    The court ruling follows previous regional administrative court rulings in Dusseldorf and Stuttgart banning diesel cars from the cities. .......

    News 5 March 2018

  • Landmark sukuk could be first of many

    The inaugural UK sharia-compliant RMBS recently closed, marking the start of a new asset class in the jurisdiction. Al Rayan Bank's £250m Tolkien Funding Sukuk No.1 (SCI 29 January) signals a high point for the growth and acceptance of Islamic finance in the UK and could be the first of many such securitisations, across a range of assets.

    Moody's .......

    News Analysis 2 March 2018

  • Market moves - 2 March

    North America

    Cowen and Company has named Philip Cushman as head of global institutional sales which includes managing both the institutional equity and credit sales teams and Burton Welly has been named head of special situations and distressed credit trading, Cowen and Company, increasing his responsibilities to include all distressed credit trading initiatives. Prior to joining Cowen, Cushman served as md and .......

    Market Moves 2 March 2018

  • Bank acquisition trend continues

    HSH Nordbank has been sold for €1bn to JC Flowers and Cerberus. The agreement is accompanied by a sale of predominantly shipping non-performing loans to an acquisition vehicle of Cerberus and JC Flowers, as well as minority owners GoldenTree Asset Management and Centaurus Capital. The sale reflects an investment trend, whereby private equity investors acquire distressed financial institutions rather NPL .......

    News Analysis 1 March 2018

  • Euro secondary slows

    January's optimism has faded throughout February as activity across the European securitisation secondary market has slowed.

    "There's not a great deal going on with a combination of factors such as a busy primary, holidays, Vegas and some bad weather keeping things pretty quiet," says one trader. "However, we have seen a couple of bid lists recently, which appear to have .......

    SCIWire 1 March 2018

  • PACE underwriting boosted

    Consumer protection legislation passed in California last October will collectively strengthen PACE underwriting practices, according to Morningstar Credit Ratings. The agency views most of the requirements as credit positive for future securitised residential PACE assessments and suggests that programme administrators may adopt the new measures on a nationwide basis.

    California Governor Jerry Brown signed into law both Assembly Bill 1284 .......

    News 28 February 2018
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