ABS

  • Chinese NPL ABS growing in size and diversity

    The Chinese non-performing loan securitisation sector is set to grow, adding to the existing RMB16.33bn worth of transactions since the market opened in May 2016, according to Moody's. The agency notes that transactions with a mixture of unsecured and secured NPLs are emerging, with deals backed by unsecured loans having weaker credit quality and pricing at a bigger discount than .......

    News 13 April 2017

  • Floating-rate ABS lacks support for growth

    Lack of demand will likely limit the growth of floating-rate ABS and CMBS in the US, despite rising interest rates. Investors may instead hedge against interest rate exposure or invest in floating-rate products with a long performance history, such as corporate CLOs.

    Fitch recently suggested that floating-rate CMBS conduits may re-emerge in the US due to rising interest rates and .......

    News Analysis 13 April 2017

  • New ABCP conduit launches

    A new European ABCP conduit has launched, securitising insured trade receivables that are fully guaranteed by Altradius Credito y Caucion (ACyC). Moody's has provisionally rated IM SUMMA 1's Euro-commercial paper (ECP) class at P2 and its European medium-term note (EMTN) class at A3.

    IM SUMMA 1 is a fund with the ability to purchase further assets and issue further liabilities. .......

    News 12 April 2017

  • Debut consumer ABS prepped

    Tidewater is marketing its first term consumer finance ABS. Dubbed Tidewater Sales Finance Master Trust Series 2017-A, the US$68.92m securitisation is backed by retail installment contracts.

    While Tidewater has an established auto loan business, this transaction marks the first term ABS from Tidewater Credit Services, an originator of retail installment and revolving contracts to non-prime consumers for the purchase of .......

    News 11 April 2017

  • Euro secondary ebbs and flows

    Activity in the European securitisation secondary market continues to ebb and flow.

    Trading patterns continue unchanged across ABS/MBS and CLO sectors - from time to time volumes begin to build before dissipating once again amid positive market sentiment. Last week reflected that as activity fizzled out towards the end of the week, while yesterday saw a flurry of auctions and .......

    SCIWire 11 April 2017

  • Job swaps round-up - 7 April

    North America

    KeyBanc Capital Markets has hired Chris O'Neill and Jeffrey Tucker to its securitised products team. O'Neill will act as md and Tucker as director and both will report to Keith Newman and Michael Corsi, co-heads of securitised products. O'Neill was previously md at RBC, focusing on non-agency and agency MBS and ABS. Tucker was previously director in the .......

    Job Swaps 7 April 2017

  • Risk transfer round-up - 7 April

    Activity in the capital relief trade space appears to be increasing in line with expectations of more issuance, as the revisions to the CRR kick in next year (SCI 5 April). Indeed, volumes are anticipated to pick up this quarter.

    Most recently, Lloyds closed Salisbury II-A Securities 2017, a tap of the Salisbury deal it issued in December (SCI 14 .......

    News 7 April 2017

  • Chinese auto ABS hits top rating

    The first Chinese auto loan ABS to receive a triple-A rating from S&P is currently marketing (see SCI's deal pipeline), although Fitch has not rated it so highly. Fuyuan 2017-1 Retail Auto Mortgage Loan Securitization Trust is a CNY2.884bn secured by loans to prime quality borrowers.

    The CNY2.505bn class A notes have been rated triple-A by S&P and .......

    News 7 April 2017

  • China tipped as next NPL frontier

    Distressed debt investors are becoming more active in the Chinese non-performing loan market. Recent government action - including the creation of a more transparent and effective legal system - is widening the scope of opportunities in the sector.

    Andrew Brown, partner at Shorevest, notes that the key difference between China and other jurisdictions is the government's control over the economy, .......

    News Analysis 6 April 2017

  • Euro ABS/MBS active

    The European ABS/MBS secondary market is once again active without yet fully taking off.

    "Secondary is now chugging along," says one trader. "There's enough going on to keep us occupied, but nothing major."

    The trader continues: "There are selective opportunities, but there's no real stand-out activity. One possible exception to that is some of the racier positions from the big .......

    SCIWire 6 April 2017

  • Synthetics to receive an STS designation?

    Momentum is growing for a simple, standardised and transparent (STS) designation for synthetic securitisations at the EU level, driven by the support of the European Commission and the EBA. Such a designation is expected to increase supply and enhance standardisation in the risk transfer market.

    Synthetic securitisations were not initially included in the scope of either the Basel Committee's simple, .......

    News Analysis 5 April 2017

  • Diverse solar ABS announced

    Sunnova Energy is marketing its inaugural US$254.75m securitisation. Dubbed Helios Issuer Series 2017-1, it is backed by a pool of 13,838 leases linked to residential solar photovoltaic (PV) installations.

    The collateral comprises power purchase agreements (PPA), EZ Pay PPAs and 20 hedged solar renewable energy certificate (SREC) contracts. The solar service agreements (SSAs) securing the transaction have an aggregate discounted .......

    News 4 April 2017

  • US ABS keeps tight

    US ABS secondary spreads are keeping tight as the new quarter begins.

    The run-in for the last quarter and start to the next were relatively quiet across most US ABS sectors. However, the market continued to hold on to its gains from a very strong Q1.

    Multiple sectors and parts of the stack are at or very close to post-crisis .......

    SCIWire 4 April 2017

  • Leverage ratio driving off-balance sheet trend

    A number of European banks - including Rabobank and Credit Foncier - are becoming more active in the true sale securitisation format for risk transfer transactions. The move is being driven by the focus on balance sheet reduction, following the introduction of leverage ratio requirements under Basel 3.

    Rabobank's foray into the true sale format follows its debut off-balance sheet .......

    News Analysis 4 April 2017

  • Euro secondary restarts

    The turn of the quarter has restarted activity in the European securitisation secondary market.

    Flows and BWIC supply are picking up across the board this week. So far execution levels remain strong as long-standing pent up demand gets some release.

    As a result, secondary spreads remain firm amid positive market sentiment. However, the growing secondary and primary calendars are yet .......

    SCIWire 4 April 2017

  • Portuguese NPL prospects boosted

    Lone Star is set to acquire 75% of Novo Banco, Portugal's third largest lender, in return for a €1bn capital injection. The acquisition, along with the mooted creation of a bad bank, signals growing investor activity in the Portuguese non-performing loan market.

    Under the agreement, the resolution fund (a public body financed by all Portuguese banks) will inject capital into .......

    News Analysis 3 April 2017

  • Job swaps round-up - 31 March

    EMEA

    EJF Capital is to float its closed-ended investment fund on the London Stock Exchange. Dubbed EJF Investments, it will aim to invest in long-term, cashflow generating assets in three identified target investment areas - risk retention, capital solutions, ABS and specialty finance. Liberum Capital is acting as financial advisor on the admission and it's expected that dealings in the .......

    Job Swaps 31 March 2017

  • Legislation, growth drive Cyprus turnaround

    Cyprus's non-performing exposures (NPE) ratio has experienced significant improvements, given stronger GDP growth and the adoption of an insolvency framework. At the same time, servicing is becoming an increasingly viable option for the restructuring of delinquent loans.

    According to Adriana Alvarado, vp at DBRS: "The steady recovery of the economy, which posted growth for a second consecutive year in 2016, .......

    News Analysis 31 March 2017

  • Debut prime auto ABS prepped

    GM Financial is in the market with its inaugural prime auto loan ABS. The US$1bn GM Financial Consumer Automobile Receivables Trust 2017-1 transaction is backed by 39,380 retail installment contracts originated or acquired by GM Financial.

    The portfolio comprises 22% cars, 21% CUVs, 21% SUVs and 36% light-duty trucks, split 84%/16% between new and used vehicles. The pool has a .......

    News 31 March 2017

  • Euro ABS/MBS unchanged

    Spreads and activity levels remain unchanged across the European ABS/MBS secondary market.

    A combination of month-end and benign wider markets has made for another couple of quiet sessions. Consequently, strong market tone and limited supply continue to hold secondary spreads in.

    The pricing of a number of new issues this week could yet shake out some sellers before month-end. However, .......

    SCIWire 30 March 2017

  • 'Less conventional' auto ABS to emerge?

    Moody's expects German carmakers to offer attractive financing terms and retain residual value risks to boost demand for their alternative fuel vehicles (AFVs) and encourage AFV adoption. However, as the technology matures and AFV penetration increases, residual value risk is likely to shift to new industry participants.

    "BMW, Daimler and Volkswagen will make full use of their captive finance operations .......

    News 29 March 2017
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