ABS

  • UK ILS hub to drive new issuance, innovation

    The proposed ILS regulatory and tax regime due to come into effect on 1 January 2018 aims to put the UK on an even-footing with other jurisdictions and enable it to become a world leader in the catastrophe bond market (SCI 21 July). Notably, the framework is expected to create an accommodating tax environment for ILS vehicles, making it financially .......

    News Analysis 3 August 2017

  • NPL servicer breaks new ground

    Alvarez and Marsal has established the first independent business loan servicing company in Greece. Named Independent Portfolio Management (IPM), the fully owned subsidiary has been granted a servicer license by the Bank of Greece for the management of claims from loan and credit facilities in accordance with the local legal and regulatory framework.

    "IPM is not a captive servicer owned .......

    News 2 August 2017

  • Regulatory call exercised for Calico

    The Co-operative Bank last week announced a regulatory call of its Calico Finance Number One capital relief trade. The call was executed, after UK PRA approval, as part of the bank's plans to improve its capital position.

    The Co-operative Bank received confirmation from the PRA that the Calico transaction no longer achieves significant risk transfer (SRT) to third parties within .......

    News Analysis 1 August 2017

  • RFC issued on gas prepay approach

    S&P has requested comments on its methodology for rating US physical commodity prepayment ABS transactions. Such bonds are backed by the payment obligations of municipalities for the delivery of gas and counterparties that hedge gas price fluctuations. Contractual guarantees cover the performance risk of the gas supplier, which is paid upfront for the delivery of gas to the municipalities over .......

    News 1 August 2017

  • Risk transfer round-up - 28 July

    Delay has been the theme in the capital relief trades market this week.

    Nordea has begun marketing its delayed corporate risk transfer deal, which appears to have had a positive reception from investors. "Given the size of the deal and the way it was welcomed by the market, I wouldn't be surprised if it is completed by year-end or early .......

    News 28 July 2017

  • Whole business maturity wall eyed

    US whole business securitisation issuance was robust in 1H17, with US$5.1bn priced across seven issuers (see SCI's primary issuance database), up by 84% year-over-year and on pace to break the record US$7.2bn issued in 2015. However, risks to the sector have increased marginally, given a looming maturity wall and declining growth across the restaurant industry.

    Many well-known restaurant .......

    News 28 July 2017

  • Job swaps round-up - 28 July

    North America

    Ashurst is cutting its CLO practice because it sees it as "less relevant" to its global structured finance practice. It says "it will not be replacing the CLO team," many of whom have moved to Chapman and Cutler. The five partners joining Chapman and Cutler are Pat Quill, David Nirenberg, Steve Kopp, Doug Bird and Tom Glushko.

    Hunt .......

    Job Swaps 28 July 2017

  • Counterparty update reflects margin rules

    Moody's has published its updated global cross-sector methodology for assessing counterparty risks in structured finance, following a request for comment on its proposals (SCI 22 March). Among the first deals impacted by the move are a handful of US auto loan and FFELP student loan ABS, but the ratings of a number of European securitisations are also expected to be .......

    News 27 July 2017

  • Euro secondary staves off summer

    The European securitisation secondary market has not yet quite shutdown for summer with a pick-up in activity seen yesterday.

    For the first time in a while more than minimal secondary activity was seen across ABS/MBS sectors yesterday. A mixture of the slowing primary market and final pre-August positioning drove increased trading from both investors and the Street.

    The session saw a flurry .......

    SCIWire 27 July 2017

  • Job swaps round-up - 21 July

    Acquisitions

    BGC Partners     has acquired commercial real estate finance company Berkeley Point Financial for US$875m, subject to certain adjustments at closing. Berkeley Point focuses on the origination and sale of multifamily and other CRE loans through government-sponsored and government-funded loan programmes, as well as the servicing of CRE loans, including those it originates. The company is set to become part of .......

    Job Swaps 21 July 2017

  • Pension fund increases risk transfer mandate

    The New Mexico Educational Retirement Board has been steadily increasing its foothold in the risk transfer market. Indeed, the pension fund's mandate has broadened since its first investment in the sector back in 2008.

    Under cio Bob Jacksha, the New Mexico Educational Retirement Board has invested US$350m in risk transfer transactions to date. Encouraged by the track record of the .......

    News 21 July 2017

  • Spanish card ABS prepped

    A Spanish credit card ABS rated by both Fitch and DBRS has started marketing (see SCI's deal pipeline). €518.8m of notes will be offered to the market, with the the rating agencies provisionally rating the senior notes at double-A plus and double-A.

    The rated class A notes of Wizink Master Credit Cards 2017-01 have been sized at €451.1m. An .......

    News 20 July 2017

  • Swedish regulations to limit risk transfer

    Finansinspektionen, Sweden's financial supervisory authority, recently released new securitisation guidelines in an attempt to tackle what it sees as flow-back risk, or the possibility of credit risk flowing back onto bank balance sheets. The guidelines are expected to reduce issuance of Swedish capital relief trades.

    Traditionally, Swedish systemic lenders have funded themselves cheaply through covered bonds rather than securitisations. Yet, .......

    News Analysis 20 July 2017

  • Robo-advisors could boost RMBS quality

    Robo-advisors could improve consumer loan and mortgage affordability and strengthen pool quality in associated securitisations. Moody's suggests that by enabling consumers to switch to a lower-rate mortgage more easily, robo-advisors could improve mortgage prepayments and therefore boost credit enhancement for prime UK RMBS transactions.

    Moody's indicates that robo-advisors could become challengers to traditional intermediaries in the UK consumer loan and .......

    News 19 July 2017

  • 'Brighter year' for securitisation recruitment

    The structured finance industry has seen one of its best years in terms of hiring since the financial crisis, according to recruiters. While ABS was the standout sector for recruitment in the US in 1H17, CLO hiring activity continued to be strong in Europe.

    One headhunter believes that 2017 has been particularly buoyant for the UK and Europe. "In various .......

    News Analysis 19 July 2017

  • Legal disputes weigh on NCSLT payoffs

    Ongoing legal disputes between several National Collegiate Student Loan Trust (NCSLT) transaction parties are credit negative for the affected private student loan ABS, due to the risk of servicing transfers and litigation expenses. Most senior tranches in the securitisations are expected to pay off, however.

    The crux of the NCSLT disputes are misaligned interests of the securitisation residual interest holder .......

    News 19 July 2017

  • Swiss auto ABS taps Euro appetite

    BMW has priced its first public securitisation of Swiss auto lease receivables to feature a euro-denominated class A note. The €431.6m-equivalent Bavarian Sky Europe Compartment Swiss Auto Leases 2 is collateralised by 13,430 fixed-rate auto lease contracts and comprises a €325m floating-rate class A note and a Sfr97.8m fixed-rate class B note.

    Fitch, Moody's and S&P assigned ratings of AAA/Aaa/AAA .......

    News 18 July 2017

  • Synthetic expected loss approach outlined

    Scope has published research that offers a technical illustration of how the expected loss framework described in its general structured finance rating methodology can be implemented for tranches of simple synthetic securitisations. Further, the report describes how expected loss can be calculated in practical cases.

    Simple synthetic securitisations generally allocate losses from a reference portfolio of assets, for which an .......

    News 18 July 2017

  • Job swaps round-up - 14 July

    North America

    Mortgage Capital Trading has hired Bill Berliner to the newly created role of director of analytics. He was previously mortgage community manager at Thomson Reuters.

    BlueMountain Capital Management has hired Lee Kempler as coo for investments. He was previously md at Blackrock.

    FS Investments has hired Michael Carter as evp, head of strategy. He will be based in .......

    Job Swaps 14 July 2017

  • Inaugural NPL ABS launched

    Credit Valtellinese and Credit Siciliano have tapped the market with their first Italian non-performing loan securitisation. Dubbed Elrond NPL 2017, the €526.6m transaction is backed by an NPL portfolio with a gross book value (GBV) of €1.405bn, of which €30.8m is cash in court.

    The collateral comprises loans extended to 3,682 defaulted borrowers and is a mix of secured residential .......

    News 14 July 2017

  • Servicer consolidation boosts NPL recoveries

    The Italian servicing industry is experiencing a strong growth trend. Italian non-performing loan recoveries are expected to benefit as a result.

    Sources agree that growth in the servicing industry is the trend with the most positive impact on Italian NPL recoveries, given the widening of the scope of servicer activities and the growth in the volume of servicer-managed NPLs. Many .......

    News Analysis 13 July 2017
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