ABS

  • '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

  • Income-contingent SLABS approach revealed

    Further details have emerged of the UK government's £3.94bn Income Contingent Student Loans 1 (2002-2006) transaction, the first UK student loan ABS to be backed by income-contingent repayment (ICR) loans (SCI 21 February). Together with assigning expected ratings to the deal, Fitch has published a criteria report detailing its approach to rating UK income-contingent student loan securitisations.

    Income-contingent student loans .......

    News 29 March 2017

  • Euro secondary unmoved

    The European securitisation secondary market remains unmoved by wider market volatility.

    The see-saw in equities and broader credit over the past two sessions has not been reflected in secondary spreads, which continue to hold firm. Indeed, sentiment remains positive and demand continues to outstrip supply.

    Nevertheless, activity overall remains light with only some rotation activity and patchy flows in key .......

    SCIWire 28 March 2017

  • Job swaps round-up - 24 March

    North America

    Alcentra has hired Brandon Chao as svp in New York, joining from Omega Advisors, where he was a senior analyst for structured products and corporate credit. He will report to the firm's global head of structured credit, Hiram Hamilton, who is relocating to the New York office in April. Hamilton was previously executive director and head of the .......

    Job Swaps 24 March 2017

  • Risk transfer round-up - 24 March

    Deutsche Bank is believed to have priced its CRAFT CLO 2017-1 capital relief trade this week (SCI 17 March), with market sources suggesting that the deal met with "good appetite from investors". The US$357m transaction printed at Libor plus 10.75%, having been upsized from US$200m on strong demand.

    .......

    News 24 March 2017

  • Canadian banks eye credit card appetite

    Canadian banks are capitalising on strong demand for US dollar-denominated credit card ABS. The sector has seen a resurgence in recent months, with deals being upsized and performance remaining sound.

    Last year was a record year for Canadian credit card ABS volumes and the pace seems set to continue in 2017, with two cross-border issuances so far this year, including .......

    News Analysis 24 March 2017

  • US ABS holds on

    Despite a boom in supply US ABS secondary spreads are holding on.

    After a quiet week last week, the pricing of the sizeable latest COMET deal and the ever-growing US ABS pipeline combined to give the secondary market a rocky start to the week. Hefty BWIC supply driven primarily by rotation activity added to the new issuance and pushed secondary .......

    SCIWire 23 March 2017

  • Russian SME ABS sets the standard

    The Russian SME loan market is anticipated to grow, with further SME ABS issuance following suit. As the Russian SME ABS sector develops, several innovations seen in last year's offering from Promsvyazbank are expected to be replicated.

    Promsvyazbank's RUB10bn SPE PSB SME 2015, issued in September last year (see SCI's primary issuance database), was the first domestic issuance .......

    News 22 March 2017

  • Counterparty revisions to hit EMEA ABS

    Moody's is requesting comments on proposals to consolidate and revise its approaches to assessing a number of structured finance-related counterparty risks. If adopted, the changes are expected to have a ratings impact of one to two notches on approximately 210-220 structured finance transactions.

    "The proposed changes are being driven by a variety of factors," says Moody's svp Michelangelo Margaria. "Among .......

    News 22 March 2017

  • Lender actions key to managing auto losses

    Rising losses across the US auto ABS sector are at odds with strong economic conditions and low unemployment levels, albeit greater losses in the subprime space are being mitigated by lender actions, such as loan extensions. Whether losses increase further may depend on lenders' ability to maintain or further strengthen credit standards that have been weakening until recently.

    S&P notes .......

    News Analysis 21 March 2017

  • Euro secondary ticks over

    The European securitisation secondary market continues to tick over.

    Activity remains patchy across the board with sporadic BWICs and light bilateral volumes. Further distraction has emerged with a handful of new ABS, CLO and RMBS deals now actively marketing, but overall tone is still positive and secondary spreads continue to hold in or tighten.

    The past couple of sessions remained centred .......

    SCIWire 21 March 2017

  • Job swaps round-up - 17 March

    EMEA

    Dentons has formed a securitisation team in Germany by hiring Arne Kluwer, from Clifford Chance, Matthias Eggert and Timo Riester from Baker Mackenzie and Mortimer Berlet as partner, who joins from Clifford Chance. Kluwer starts at the Frankfurt office on 1 April, Eggert and Riester at the Munich office and Berlet starts on 1 May. The firm also recently hired Carl Bjarnram to the .......

    Job Swaps 17 March 2017

  • Risk transfer round-up - 17 March

    Activity continued this week in the capital relief trade space, with Deutsche Bank's CRAFT CLO entering the bidding process on Wednesday. The underlying reference portfolio is expected to be comprised of SME loans.

    Indeed, Deutsche Bank has issued a number of synthetic SME transactions through its CRAFT programme in the past. "Such loans tend to be less granular and less .......

    News 17 March 2017

  • Marketplace lending moving ahead

    A number of positive developments have boosted the marketplace lending sector this week. Among them is the publication by the OCC of further guidelines for fintech firms applying for bank charter applications.

    The extra information is included as a supplement to the OCC's existing licensing manual and it explains how the licensing standards and requirements will be applied in existing .......

    News 16 March 2017

  • Euro secondary trundles on

    The European securitisation secondary market trundles on seemingly unaffected by the ups and downs of broader markets this week.

    Market tone remains strong across the board, as demand easily outstrips limited supply. Consequently, secondary spreads continue to be flat to slightly tighter as each day passes.

    BWICs are still sporadic and are trading at or above talk as and when .......

    SCIWire 16 March 2017

  • Greek servicing shift underway?

    Piraeus Bank has hired Christos Megalou, a former Eurobank director, as its chief executive. The appointment signals a growing shift in Greek banks' NPL strategies towards the outsourcing of servicing needs to external servicers.

    "The market believes that [Megalou] can turn the bank around by dealing with the non-performing loans," says George Kofinakos, md at StormHarbour in London.

    Megalou took .......

    News Analysis 15 March 2017

  • Swiss auto debut announced

    Multilease is prepping a debut Sfr297m auto lease ABS. Dubbed First Swiss Mobility 2017-1, it is a 32-month revolving cash securitisation of auto lease contracts extended to obligors in Switzerland.

    The underlying assets are financial leases extended to mainly private lessees. The residual value cashflows have a dealer buy-back guarantee from either independent or Emil Frey Group car dealers in .......

    News 15 March 2017

  • European AMC to create 'positive feedback loop'

    Further details have emerged about the EBA's proposed state-funded, pan-EU asset management company (AMC) (SCI 3 February). The initiative is expected to attract more investors to the European NPL market and by extension free up bank capital and spur more lending.

    "The reduction of NPL ratios is a positive sign, but it is too slow," says Mario Quagliariello, head of .......

    News Analysis 14 March 2017

  • Innovative GARC transaction prints

    Intesa Sanpaolo has printed an innovative risk transfer transaction - and the largest to date - from its GARC programme, with Banca IMI acting as arranger. The €2.5bn GARC SME-5 synthetic securitisation references a granular portfolio of Italian SME loans.

    According to Elisabetta Bernardini, head of credit portfolio management at Intesa Sanpaolo: "This was an innovative structure, since it was completed .......

    News 14 March 2017

  • Loan tapes suggest auto trends are 'in line'

    Loan and pool level stratifications in US auto ABS show credit trends in line with economic expansion and the credit cycle. Rising rates and increasing lender competition could alter this dynamic, according to a new JPMorgan study, which analyses early stage delinquencies and loan modifications across 10 auto loan tapes from seven pools (averaging 60,000 loans per tape).

    The study .......

    News 14 March 2017

  • Subprime sponsor risk framework touted

    Gauging sponsor risk in US subprime auto ABS is complicated by the fact that many subprime auto lenders are privately held companies and therefore financial data can be limited. Wells Fargo structured products analysts suggest that using securitisation data to create a modified return on assets (ROA) metric could instead serve as a useful way to assess ABS equity distributions .......

    News 14 March 2017
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