ABS

  • Risk transfer come-back

    Bank of Ireland has returned to the risk transfer market with Mespil Securities 2017-1. The lender's latest capital relief trade will increase its common equity Tier 1 capital ratio by 0.45% and comes a year after it carried out a similar transaction on around €3bn of loans from its business banking and corporate banking divisions in Ireland (see SCI's capital .......

    News 29 November 2017

  • Supply/demand imbalance to support spreads

    JPMorgan's latest international ABS investor survey suggests that the current supply/demand imbalance in European securitisation will persist in 2018. Indeed, sentiment appears somewhat surprisingly bullish, despite the significant spread compression seen throughout 2017 and the investment challenges presented by a combination of stretched valuations and limited scalability.

    The JPMorgan ABS Investor Confidence Index - which attempts to quantify survey participants' .......

    News 29 November 2017

  • Hurdles remain for Chinese ABS

    Chinese securitisation issuance reached RMB808bn in aggregate from 425 transactions last quarter, up from RMB498bn from 318 deals as of 3Q16, according to Fitch. However, while the domestic ABS sector may be growing, the market is unlikely to reach full maturity until it becomes truly cross-border.

    Jeffrey Chen, partner and head of structured finance at Dentons, Hong Kong, says that .......

    News Analysis 28 November 2017

  • Provisioning differences highlighted

    UniCredit and Intesa Sanpaolo recently revealed differences over the ECB's provisioning guidelines, with the spotlight falling on non-performing loan recovery mechanisms. Speaking at IMN's Investors' Conference On Italian & European NPLs, representatives from the lenders also discussed their NPL strategies going forward.

    Carlo Viola, head of strategies and solutions at Intesa Sanpaolo, observed: "Automatic provisioning has to take into account .......

    Talking Point 27 November 2017

  • Inaugural island auto ABS markets

    My Money Bank (MMB) is marketing an inaugural €527m static cash auto ABS. The transaction, titled SapphireOne Auto 2017-1 (see SCI's deal pipeline), is backed by 39,122 non-delinquent auto loan (64%) and lease (36%) contracts to borrowers in the French overseas territories of La Reunion, Guadeloupe, Martinique and French Guiana.

    The transaction is provisionally rated by Moody's and .......

    News 24 November 2017

  • SRT concerns acknowledged

    Attendees of a public hearing on the EBA's SRT discussion paper have raised concerns in relation to excess spread, time calls and commensurate risk transfer tests (SCI 28 September). The EBA has acknowledged the concerns, but as its consultation is still ongoing it has not provided detailed responses.

    The trapping mechanism is a key requirement for excess spread. The amount .......

    News Analysis 24 November 2017

  • Inaugural inventories ABS is sector 'holy grail'

    Trafigura has launched a 'pioneering' debut commodities securitisation marking a milestone for the sector. The US$470m non-recourse funding programme, Trafigura Commodities Funding (TCF), is backed by inventories of crude oil and refined metals and is structured with a senior and junior tranche.

    TCF is a stand-alone vehicle, incorporated in Singapore, and has issued US$470m of senior funding notes, comprising the .......

    News 22 November 2017

  • Mixed portfolio SRT printed

    NatWest has originated a capital relief trade dubbed Nightingale Securities 2017-1. Unusually, the £390.2m CLN references a mixed portfolio of asset classes. It is also the first DBRS-rated synthetic securitisation for the RBS Group.

    The synthetic securitisation, structured in the form of a financial guarantee (SCI 18 April), was priced in the typical 9%-12% range for these trades. It features .......

    News Analysis 21 November 2017

  • NPL secondary 'needs AMC blueprint'

    The European Commission has confirmed progress on NPL secondary markets. It has highlighted the creation of NPL secondary markets through improved data standardisation as well as work towards a blueprint for an asset management company (AMC).

    Speaking at a recent conference on Italian and European NPLs, European Commission financial services and capital markets union director Mario Nava noted that standardisation .......

    News Analysis 21 November 2017

  • Job swaps round-up - 17 November

    EMEA

    CSC has hired Jonathan Hanly as md to its Ireland office, Hinnerk Koch as md to its Luxembourg office and Aline Sternberg as head of transaction services in the UK. Hanly has previous executive leadership roles with the Intertrust Group, SFM Europe and RBS. Koch has significant experience in the alternative finance and securitisation markets in Luxembourg, having spent .......

    Job Swaps 17 November 2017

  • Risk transfer round-up - 17 November

    RBS hit the market this week with its first DBRS-rated risk transfer transaction, dubbed Nightingale Securities 2017-1. The £390.2m CLN references a mixture of asset types, with a WAL of 4.5 years and a sequential amortisation structure, as per CRR/SRT rules.

    Meanwhile, Lloyds is rumoured to be marketing two capital relief trades - a mid-cap deal and a large real .......

    News 17 November 2017

  • Call for increased standardisation

    Ahead of the EBA's public hearing tomorrow on its significant risk transfer (SRT) discussion paper (SCI 28 September), SCI undertook a straw poll of industry opinion on the document. The exercise revealed an overall positive response, although some areas for improvement were highlighted, especially regarding transaction standardisation.

    Giuliano Giovannetti, ceo of Arch Mortgage Insurance, says that the EBA's SRT guidelines .......

    Talking Point 16 November 2017

  • Mortgage ILS breaks new ground

    Arch Capital Group recently closed its first public rated mortgage ILS (SCI 18 October). Dubbed Bellemeade Re 2017-1, the US$368.11m transaction features structural departures from previous deals in the programme, while Morningstar Credit Rating's rating facilitated wider interest and broadened investor participation.

    James Bennison, svp at Arch Capital Group, comments that as well as being the first rated transaction from .......

    News Analysis 14 November 2017

  • Job swaps round-up - 10 November

    EMEA

    Ares Management has hired Rory McHugh as md. McHugh was previously md, head of alternative finance, specialist lenders and fintech at RBS. Prior to that he was head of structured finance derivatives and automated treasury solutions also at RBS.

    Scope has founded Scope Investor Services to support institutional investors in the selection of fund managers and investment vehicles across .......

    Job Swaps 10 November 2017

  • NPL equity acquired

    Hedge fund Elliott Management has acquired an equity piece in Attica Bank's non-performing loan securitisation, reducing the exposure of Aldridge EDC, the original investor (SCI 7 July). Details of the transaction have not been disclosed, but local industry sources and growing momentum in the Greek NPL market, suggest that Elliott coveted exposures to Greek assets.

    Aldridge paid €70m for the .......

    News Analysis 10 November 2017

  • EMIR inaction could be 'grave'

    The risks from industry inaction regarding EMIR are "grave" and could have "serious negative consequences" on the European securitisation sector, according to Bank of America Merrill Lynch European securitisation analysts. Along with a recent ISDA whitepaper, they outline recommendations to limit the regulation's detrimental effect on the market.

    The BAML analysts say that major negative consequences will result from the .......

    News 9 November 2017

  • Aqua preps debut ABS

    Aqua Finance is marketing its first public term securitisation. US$194m Aqua Finance Trust 2017-A (see SCI's deal pipeline) is collateralised by a pool of retail instalment sale contracts and agreements primarily used for water treatment equipment and home improvements.

    The US$174.5m class A notes have been provisionally rated single-A by Kroll Bond Rating Agency. Kroll has also rated the .......

    News 7 November 2017

  • Agricultural equipment ABS debuts

    DLL Finance, a Rabobank subsidiary, is in the market with an inaugural equipment ABS. Dubbed DLL Securitization Trust 2017-A, the US$501.5m transaction is backed by 24,080 loans and leases mostly originated by dealers to finance primarily agricultural equipment.

    S&P and Moody's have assigned provisional ratings to the transaction of A1+/P1 on the US$120m class A1 notes (which are expected to .......

    News 7 November 2017

  • Airline bankruptcy exposure gauged

    A number of aircraft ABS have been impacted by the bankruptcy of several large carriers in Europe, with the Castlelake 2015 and 2016 transactions disproportionately affected, according to a new Deutsche Bank analysis. However, in most cases, narrow-body aircraft are expected to have little difficulty finding a new home - helping to mitigate the impact on investors in these deals.

    News 6 November 2017

  • Job swaps round-up - 3 November

    EMEA

    The Carlyle Group is set to reorganise its executive leadership, effective from 1 January 2018. Deputy cio Kewsong Lee and president/coo Glenn Youngkin will replace David Rubenstein and William Conway as co-ceos of the firm, while deputy cio Peter Clare will become co-cio alongside current cio Conway, with the trio also joining the board of directors. Rubenstein and Conway .......

    Job Swaps 3 November 2017

  • Risk transfer round-up - 3 November

    Two US public pension funds in Arizona and Pennsylvania are rumoured to have completed a capital relief trade each, although the exact identity of the funds could not be confirmed. According to one industry insider: "The risk transfer market is private, so the details of the transactions are sketchy. However, if I am hearing of these deals, I suspect there .......

    News 3 November 2017
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