ABS

  • 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

  • NPL platform incentives weighed

    As part of efforts to facilitate a non-performing loan secondary market, the European Commission is considering a private sector-led platform to handle data warehousing and potentially trade execution. Such an initiative could eliminate information asymmetry and lower barriers to entry, but its success hinges on incentivising both buyers and sellers to use it.

    The major driver behind the proposed NPL .......

    News Analysis 26 February 2018

  • Risk transfer round-up - 23 February

    Deutsche Bank is said to be marketing another capital relief trade, dubbed CRAFT 2018-1. This follows last month's CRAFT risk transfer transactions - a bilateral deal and a syndicated one (SCI 5 January).

    Standard Chartered is also believed to be marketing another transaction. Additionally, sources point to one or two CRE and infrastructure transactions that closed last year, .......

    News 22 February 2018

  • 'Academic' SBBS to 'lack demand'

    A European Systemic Risk Board task force has published a paper arguing that European safe bonds, SBBS (SCI 7 July 2017), are a plausible concept under "certain conditions". The programme has its critics, however, who suggest that the bonds may be plausible from an academic perspective but lack any demonstration of how they may work in practice.

    The ESRB .......

    News Analysis 16 February 2018

  • Risk transfer round-up - 9 February

    Credit Suisse is rumoured to be re-tranching its existing risk transfer transactions, echoing recent market comments over the prospective use of this innovation in the capital relief trade space (SCI 26 January). The technique involves slicing in two the junior risk, in an attempt to cope with higher capital requirements for the retained tranches.

    Elsewhere, market sources observe that Greek lenders are .......

    News 9 February 2018

  • Navient preps 'debut' refi SLABS

    Navient is tapping the ABS market for the first time after acquiring online lender Earnest. Its latest US$507.47m transaction, dubbed Navient Private Education Refi Loan Trust 2018-A, is backed by fixed-rate refinanced student loans first originated by Earnest and subsequently acquired by Navient to circumvent competition clauses since its split from Sallie Mae last year (SCI 30 October 2017).

    News 8 February 2018

  • Landmark sovereign ILS priced

    The IBRD has printed the largest sovereign risk transfer transaction ever and the second-largest catastrophe bond issuance. The landmark deal provides US$1.36bn in earthquake protection to Mexico, Chile, Colombia and Peru, marking the first time the latter three countries have accessed the capital markets to obtain insurance for natural disasters.

    The issuance consists of five classes of World Bank bonds: .......

    News 8 February 2018

  • Gearing up for green

    Two pilots funded by Horizon 2020 - the EU programme for research and innovation - are set to launch next month that should boost the development of green securitisation in Europe. One is a project to develop PACE ABS across the region and the other aims to create a standardised energy efficient mortgage.

    The project to develop PACE securitisations - .......

    News Analysis 6 February 2018

  • 'No end in sight' for ILS growth

    Last year was unprecedented for the global ILS market, with record issuance of around US$10bn and non-life ILS capital reaching a record US$88bn by year-end, up 17% from 2016. While some analysts note that the record issuance was largely driven by the first half of 2017, a continuation of unabated growth in terms of new issuance and secondary market activity .......

    News 2 February 2018

  • Distressed exchange queried

    China Huarong Asset Management, one of China's largest state-owned distressed debt managers, yesterday launched a Beijing-based bad debt exchange. The exchange is expected to provide an inventory of what's available in the Chinese non-performing loan market rather than a trading platform that can facilitate transactions.

    "NPLs are illiquid, so to appropriately price them can take months of due diligence and .......

    News Analysis 2 February 2018

  • Call for transparency underlined

    A push for transparency is a common thread among European initiatives to reinvigorate the securitisation markets. Communication and standardisation are expected to play significant roles in facilitating this effort.

    Christian Thun, ceo at European DataWarehouse, agrees, in principal, that better communication is required to improve transparency in the European securitisation market. "Reading through the STS regulation, communication is only mentioned .......

    News Analysis 2 February 2018

  • APRA signals change in tone

    The Australian Prudential Regulatory Authority has set out its priorities for 2018, most notably with regards to bank capital. The Australian regulator is considering changes to its overall approach to capital requirements in a number of areas where its methodology is more conservative than minimum international requirements.

    Adjustments to the risk-based capital framework is expected to lead to revisions in .......

    News 1 February 2018

  • Auto giant expands Euro footprint

    LeasePlan is marketing its first French public auto lease ABS. The €653m transaction, dubbed Bumper 10, is a one-year revolving cash securitisation backed by 40,817 auto lease receivables contracts originated by LeasePlan France to businesses, retail clients and public firms.

    Moody's and DBRS have assigned provisional ratings of Aaa/AAA to the €483.2m class A notes and Aa3/AA to the €40.8m class B .......

    News 1 February 2018

  • Bright start for UK ILS

    The first UK ILS launched last month, coinciding with the introduction of the nation's new ILS regulatory and tax regime, designed to put the UK on an even footing with other jurisdictions (SCI passim). NCM Re is a US$72m collateralised quota share reinsurance transaction that underwrites a portion of Neon Syndicate 2468's property treaty reinsurance and direct facultative portfolios.

    NCM .......

    News Analysis 1 February 2018

  • US ABS diverted

    US ABS primary market activity is diverting attention away from secondary, but demand is still outstripping supply.

    Since the beginning of the month focus has been on the strong new issuance volumes and secondary activity, particularly on BWIC, has lagged. Nevertheless, there is a strong buying bias across sectors pushing pricing levels higher as last year's demand for paper continues.

    As .......

    SCIWire 31 January 2018

  • Turkish auto deal prepped

    The first public Turkish ABS transaction, Driver Turkey Master (see SCI's deal pipeline), has been provisionally rated by both Fitch and Moody's. The TRY1.94bn transaction securitises Turkish auto loan receivables originated by Volkswagen Dogus Finansman (VDF) and features a one-year revolving period.

    VDF is 51% owned by VW Financial Services and 49% owned by the Dogus Group. While .......

    News 31 January 2018

  • Euro secondary picking up

    Activity in the European securitisation secondary market is gradually picking up, albeit from a low starting point.

    December saw a significant drop in volumes and left secondary spreads unchanged on the month. Since the start of 2018 trading activity has slowly increased week on week, but still remains intermittent and a pick-up in BWIC supply has only been evident over the .......

    SCIWire 31 January 2018

  • BEV auto ABS prepped

    Tesla is marketing an inaugural US$608.08m securitisation backed by 8,879 retail auto lease contracts originated by the firm's finance arm, Tesla Finance. The transaction, dubbed Tesla Auto Lease Trust 2018-A, is backed by the discounted value of remaining monthly lease payments and base residual values from the pool.

    Moody's has assigned provisional ratings to the transaction of Aaa on the .......

    News 30 January 2018

  • Innovative portfolio guarantee inked

    The EIF has completed five synthetic securitisations with five Italian banks, in the context of the SME Initiative Italy. The transaction features an innovative structure and is the first to guarantee standardised banks.

    The banks involved in the transaction are Banca di Credito Popolare, Banca Popolare di Bari, Banco di Napoli, UniCredit and Unione di Banche Italiane. "The transaction is .......

    News Analysis 30 January 2018

  • Latin America poised to grow

    The Latin American structured finance market is expected to be boosted by an improving economic environment across the region, with several countries likely to see growth in 2018. Issuance is anticipated to grow in Brazil, Argentina and Mexico across a range of asset classes, although uncertainty surrounds looming elections and a limited derivatives market hampers cross-border capabilities.

    Leandro de Albuquerque, .......

    News Analysis 26 January 2018

  • Slicing the risk

    Capital relief trade issuers and investors are weighing in on the virtues of a structuring technique dubbed 're-tranching'. The innovation involves slicing in two the junior risk, in an attempt to cope with higher capital requirements under the CRR (SCI 23 February 2017).

    "We're actively working with issuers and investors to move this forward," says Kaelyn Abrell, partner and portfolio .......

    News Analysis 26 January 2018
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