ABS

  • Risk transfer round-up - 19 May

    Sources expect three true sale significant risk transfer trades to be issued by Italian banks this year, with NPLs as the underlying asset. Banca Popolare di Bari is rumoured to be one of them.

    "Given that the senior tranche will be retained under GACS, I would expect a substantial portion of the mezzanine and the junior to be sold," says .......

    News 19 May 2017

  • STS discussions stumble on hierarchy

    The Strasbourg Trilogue discussions on simple, transparent and standardised (STS) securitisation have been postponed until 30 May, due to disagreements between the European Parliament on the one hand and the European Commission and Council on the other over the hierarchy of CRR approaches. However, the European Parliament has made important concessions over risk retention, increasing the likelihood of a final .......

    News Analysis 19 May 2017

  • Subprime underwriting differences revealed

    Regulation AB 2 loan-level disclosures have shed light on performance differences across transactions originated by the largest US subprime auto loan ABS issuers that would not have been apparent under previous disclosure requirements. A new Moody's analysis of Santander Consumer USA and AmeriCredit Financial Services data suggests that the differences reflect the sponsors' underwriting and pooling strategies.

    For many years, .......

    News 18 May 2017

  • Atlante momentum waning?

    Italian bank rescue fund Atlante II has completed the purchase of its debut €2.2bn non-performing loan securitisation, clearing the way for UBI Banca's acquisition of three small rivals rescued in late 2015. The investment is believed to be one of four transactions that the fund will finalise this year.

    The NPL sale was one of the conditions imposed by UBI .......

    News 17 May 2017

  • Premium finance debut ABS lined up

    Premium Credit is bringing to market is first term ABS, an unusual deal backed by premium finance contracts (see SCI's deal pipeline). While the size of the deal has yet to be confirmed, both Moody's and DBRS have assigned triple-A ratings to the senior notes.

    PCL Funding II Series 2017-1 is a three-year revolving cash securitisation of non-life .......

    News 16 May 2017

  • IFRS 9 to spur 'underperforming' loan sales

    The implementation of IFRS 9 is expected to increase provisioning for a new loan category dubbed 'underperforming loans'. As lifetime losses will have to be addressed in this category, it is likely that these assets will become non-core and therefore be subject to increased sales activity.

    According to Tony Clifford, partner at Ernst and Young, IFRS 9 will not significantly .......

    News Analysis 15 May 2017

  • Risk transfer round-up - 12 May

    Risk transfer activity has rebounded this week, with the EIF's landmark Spanish portfolio guarantee. More activity is expected from the fund in the near future (SCI 12 May).

    At the same time, sources talk of more to come in June, along with a capital relief trade in September or October for a Portuguese bank. The issuer is rumoured to be .......

    News 12 May 2017

  • Job swaps round-up - 12 May

    Amicus briefs

    The LSTA has joined The Clearing House and the American Bankers Association to file amicus briefs in cases initiated by the State of Colorado against Avant and Marlette, both of which have bank partners (WebBank and Cross River Bank respectively). In January, Colorado regulators sued the two marketplace platforms, claiming that their loans are subject to Colorado interest .......

    Job Swaps 12 May 2017

  • Landmark portfolio guarantee inked

    The EIF has agreed to guarantee 50% of a €5.52bn Spanish SME credit portfolio originated by nine Spanish banking groups. Dubbed the SME Initiative Uncapped Guarantee Instruments (SIUGI) for Spain, the deal is a bespoke EU-sponsored risk transfer transaction (see SCI's capital relief trades database).

    Under the agreement, the EIF enters into bilateral financial guarantees with each of .......

    News Analysis 12 May 2017

  • Insurer hits mark with first cat bond

    Palomar Specialty Insurance Company has successfully closed its first cat bond obtaining protection against catastrophe perils. Torrey Pines Re Series 2017-1 is a US$166m ILS providing the insurer with US earthquake, named storm and thunderstorm reinsurance protection.

    The transaction has three tranches of notes. The class A tranche is sized at US$45m, with initial price guidance of 2.75%-3.25% since fixed .......

    News 11 May 2017

  • Five Guys taps ABS appetite

    Five Guys Enterprises has become the latest company to bring a whole business securitisation. The US$440m Five Guys Funding transaction is secured by most of its revenue-generating assets in the US and Canada.

    The collateral includes existing and future domestic franchise agreements, existing and future company-operated restaurant royalties, US and Canadian intellectual property and related license agreements, collections from company-operated .......

    News 11 May 2017

  • Channel Tunnel refinancing underway

    Groupe Eurotunnel is set to refinance its Channel Link Enterprises Finance (CLEF) whole business securitisation, as part of an ongoing strategy to optimise the structure of its debt and to reduce the cost of its debt service. The company proposes to issue up to €2bn-equivalent senior subordinated variable and fixed-rate notes, split across a number of tranches due in 2050.

    News 10 May 2017

  • Container ABS wave continues

    Textainer Equipment Management is in the market with the latest container ABS (see SCI's deal pipeline). The deal's arrival comes as part of a flurry of activity in the sector, which is riding high on a rebound in shipping container prices.

    SeaCo priced the US$294m Global SC Finance IV Series 2017-1 transaction last month (see SCI's primary issuance .......

    News 10 May 2017

  • US ABS firm

    Tone and spreads remain firm in the US ABS secondary market though activity has dipped.

    Flow and BWIC volume last week and this has declined from previous high levels as market participants' focus has been drawn to primary with heavy issuance expected this month. That supply is yet to fully materialise, but when it does could also boost BWICs once .......

    SCIWire 9 May 2017

  • Euro ABS/MBS quiet

    Despite the resolution of the French presidential election the European ABS/MBS secondary market remains quiet.

    "Overall, it's still very quiet," says one trader. "We had a new Bavarian SKY issue announced yesterday, but that's the first primary deal in a few weeks."

    The trader continues: "In secondary not much happened between the two rounds of the French presidential election. We're .......

    SCIWire 9 May 2017

  • Job swaps round-up - 5 May

    North America

    Hunton & Williams has hired John Dedyo as corporate partner to its New York office. Dedyo represents issuers, underwriters, asset managers, credit enhancers, rating agencies and investors in all aspects of privately placed and publicly offered securitisation transactions. Dedyo was previously a partner at Weil, Gotshal & Manges.

    Ares Management and Ares Commercial Real Estate (ACRE) has hired .......

    Job Swaps 5 May 2017

  • ILS firm seeks P2P platform funding

    Sequant Re is looking to raise capital through a peer-to-peer platform which connects investors directly with companies and funds seeking to raise funds or gain market exposure. The novel approach may seem more suited to a technology start-up, but should bring new investors into the ILS market.

    Sequant Re has been listed on peer-to-peer platform The OCMX. As part of .......

    News 5 May 2017

  • Risk transfer round-up - 5 May

    Capital relief trade activity has been relatively subdued this week. However, sources report that the EIF is planning to tap the market again in two months.

    The fund completed its first EFSI risk transfer transaction last month (SCI 26 April), as part of a programme to stimulate SME lending in Europe. Not much is known about the forthcoming transaction, other .......

    News 5 May 2017

  • Alitalia exposure examined

    Italy's troubled flagship airline Alitalia has been placed under special administration. Should the company ultimately be liquidated, a number of aircraft ABS could face temporary cashflow disruptions as aircraft are repossessed, repaired and re-leased by the lessors.

    The Italian government has provided Alitalia with a €600m bridge loan to keep it operational and three administrators have been named to direct .......

    News 4 May 2017

  • Irish NPL wave expected

    Allied Irish Bank last month sold €400m gross book value of non-performing buy-to-let loans to Goldman Sachs at a 50% discount to their original value. The transaction signals a shift in the seller base for non-performing loans from foreign banks and bad bank NAMA to domestic Irish lenders.

    According to Tom McAleese, md at Alvarez and Marsal, between 2011 and .......

    News Analysis 3 May 2017

  • Credit card charge-offs ramp up

    Several US credit card banks have reported higher-than-expected net charge-off rates on their card portfolios in their 1Q17 earnings reports. The move seemingly coincides with lenders taking on more risk based on perceived borrower quality and larger credit limits. At the same time, borrowers appear to be taking on too much debt relative to their income growth prospects.

    Year-on-year, net .......

    News 3 May 2017
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