ABS

  • Data drought impedes NPL ABS growth

    Incomplete data and inadequate servicing infrastructure continues to beset the European non-performing loan market. Nevertheless, recent changes to Law 130 in Italy may help to address the growing number of 'unlikely to pay' debtors - a large, but untapped, portion of Italian banks' NPL exposures.

    Reto Bachmann, senior research analyst, global sector lead for real estate, infrastructure and structured finance .......

    News Analysis 23 June 2017

  • IFRS 9 to spur risk transfer trades

    Higher expected provisioning under IFRS 9 is expected to spur a slew of risk transfer issuance before its enactment in January 2018. Indeed, portfolio management will be central to how institutions manage and price the volatility that the new accounting standard will bring.

    "You can imagine a logjam of cases," says Adrian Docherty, head of bank advisory at BNP Paribas. .......

    News Analysis 23 June 2017

  • Risk transfer round-up - 23 June

    Sources refer to heightened activity in the capital relief trades market, with many deals awaiting finalisation by year-end. Jurisdictions that are said to have seen activity include the US and Eastern Europe. In particular, sources point to synthetic SME securitisations from Slovakia and Poland.

    Meanwhile, Italian deals are also expected from UniCredit and Intesa Sanpaolo, as well as Spanish supply .......

    News 23 June 2017

  • Whole business ABS prepped

    Jimmy John's is in the market with its debut whole business securitisation. The US$850m ABS is backed by royalties from 2,627 Jimmy John's franchises and 63 company-owned restaurants, representing 97.7% and 2.3% of system-wide locations respectively.

    KBRA has assigned provisional ratings of triple-B to all of the notes, which comprise the US$50m class A1s, U$400m A2Is and US$400m A2IIs. An .......

    News 20 June 2017

  • Regulatory boost for risk transfer trades

    Balance sheet synthetic securitisation volume is predicted to rise in the coming years, with greater conformity in deal structure and increased variance in reference assets. A more accommodating regulatory environment should help boost the growth and acceptance of the market.

    In terms of the recent finalisation of the STS framework, Robert Bradbury, md, StormHarbour, welcomes the clarification on risk retention. .......

    News Analysis 20 June 2017

  • Time to taper?

    Participants at IMN's Global ABS conference recently suggested that quantitative easing is likely to ease off in Europe soon, coinciding with a potential tapering of programmes like the Europe-wide ABSPP and TLTRO in the UK. While the view that tapering should begin was widely held, panelists were uncertain about how government support for the securitisation market should - and would .......

    Talking Point 19 June 2017

  • Risk transfer round-up - 16 June

    One talking point this week was the EBA's announcement at IMN's Global ABS conference of its intention to publish a paper on risk transfer transactions. "This is a very important step," says one issuer.

    He adds: "Despite a surge in risk transfer issuance, many of our clients still have hesitations over these deals, due to regulatory uncertainty over their defining .......

    News 16 June 2017

  • STS could take a year, but optimism prevails

    The implementation of the STS securitisation framework is unlikely to be completed within a year, according to panelists at the recent IMN Global ABS conference. However, speakers on a regulatory panel emphasised that while it may take time to finalise the finer details, optimism is strong that the long-awaited clarity on STS could provide a much needed boost to the .......

    News Analysis 16 June 2017

  • International investment boost for China

    Shorevest Capital Partners has launched a US$750m fund targeting Chinese non-performing loans. The move underscores the shift in the market's investor base from a domestic to an international one.

    "It all comes down to the NPL cycle in China, where the investible universe is growing and the infrastructure to facilitate NPL portfolio sales is attractive," says Andrew Brown, partner at .......

    News 15 June 2017

  • Treasury reports on regulatory impact

    The US Treasury has issued a first report in a series regarding regulation of the financial system in a manner consistent with an executive order issued by President Trump back in February. The report addresses the regulation of the depositary system and makes several findings and recommendations which could impact the future regulation of securitisations.

    The report criticises certain regulatory .......

    News 15 June 2017

  • China innovation paves way for securitised products

    US dollar-denominated notes backed by Chinese regional and local government (RLG) bonds have debuted in China and provide a new opportunity for offshore investment in securities traded on China's interbank bond market. Moody's believes further similar deals backed by Chinese collateral could follow, including CLOs, ABS and RMBS.

    Such US dollar-denominated bonds issued by Chinese RLGs are the first of .......

    News 15 June 2017

  • Euro ABS/MBS unchanged

    Trading patterns in the European ABS/MBS secondary market remain unchanged.

    The lack of primary supply across all sectors continues to stifle flows and discourage BWIC activity. Nevertheless, tone remains positive and demand strong, consequently secondary spreads are flat to slightly tighter on the week.

    There is currently one BWIC on the European ABS/MBS schedule for today. It is a five line .......

    SCIWire 15 June 2017

  • Prosecutors probe valuations process

    US prosecutors, after years spent studying the sell-side, appear to be turning their attentions to the buy-side, as investigations have begun into whether structured credit hedge funds inflated the value of debt securities for their portfolios. The probe is particularly concerned with whether brokers were encouraged to give dishonest valuations for month-end marks.

    The reasons for a fund to seek .......

    News Analysis 14 June 2017

  • ABS first for marketplace lender

    Lending Club in in the market with a US$279.38m ABS backed by near-prime unsecured consumer loans originated via its online lending platform (see SCI's deal pipeline). Dubbed Consumer Loan Underlying Bond Credit Trust 2017-NP1 (CLUB 2017-NP1), it is the first transaction the platform itself has sponsored.

    Kroll Bond Rating Agency has assigned provisional ratings of single-A minus to the .......

    News 13 June 2017

  • Euro secondary flickers

    The European securitisation secondary market is slowly flickering back to life.

    Overall, all ABS/MBS and CLO sectors remain insulated from broader market moves with tone and secondary spreads still solid. Nevertheless, flows have been thin over the past two sessions as the market slowly finds its feet post the Barcelona conference and UK election.

    There has, however, been a flurry .......

    SCIWire 13 June 2017

  • Spanish EFSI deal debuts

    The EIF has closed its second European Fund for Strategic Investments (EFSI) deal, providing BBVA with a €143bn mezzanine guarantee facility. The transaction references a €3bn portfolio of Spanish SME loans and is the first Spanish synthetic securitisation under the Investment Plan for Europe.

    The Investment Plan allows the EIB Group to fund investment projects that - due to their .......

    News 12 June 2017

  • Job swaps round-up - 9 June

    North America

    Brian Ford has been appointed head of structured finance research at Kroll Bond Rating Agency, starting the role in New York next week. He previously spent five years at the rating agency, but was most recently at Barclays, where he was credit strategy vp. He has also worked at Citi and began his career at Eaton Vance.

    Hudson .......

    Job Swaps 9 June 2017

  • Bankruptcy reform opens floodgates

    India's bankruptcy law has attracted increased investment in its non-performing loan market, following reforms to the enforceability of contracts. However, concerns remain over whether associated time-bound decisions can be achieved, due to the complexity of the legal system.

    "The main issue with the Indian NPL market was the enforceability of contracts," observes Sakate Khaitan, partner at Khaitan Legal Associates.

    The .......

    News Analysis 9 June 2017

  • CHOICE Act passes in House

    The US House of Representatives has passed the Financial CHOICE Act. The legislation aims to replace much of the Dodd-Frank Act, specifically criticising Dodd-Frank's "one size fits all" approach to securitisation and doing away with risk retention requirements for all asset classes except RMBS.

    The Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs (CHOICE) Act (SCI passim) intends to provide .......

    News 9 June 2017

  • MPS solvency plan outlined

    Monte dei Paschi di Siena (MPS) has set out a plan to demonstrate its solvency to regulators, paving the way for a precautionary recapitalisation by year-end. The plan hinges on the lender's ability to dispose of its €30bn non-performing loan portfolio - including via a securitisation - which it was unable to achieve in December, when it was forced to .......

    News Analysis 8 June 2017

  • European market growth predicted

    European securitisation market participants expect the number of investors to grow and participation by investors to increase. Increased investor support is identified in a recent DBRS survey as one of the most important changes required in order to grow the securitisation market, while regulatory concerns once again dominate.

    The DBRS survey was conducted before the European regulatory changes were announced last week .......

    News 6 June 2017
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