ABS

  • German NPL sales to accelerate

    Germany's positive economic outlook and the loans' relatively low cost of capital have historically meant that German banks are under less pressure to dispose of non-core assets in any significant volume. However, the introduction of IFRS 9 is expected to accelerate NPL sales in the country (and other European jurisdictions) over the coming 12-24 months.

    Although consumer lending and default .......

    News Analysis 27 February 2017

  • Rare consumer ABS readied

    A rare UK consumer loan ABS has hit the market. Creation Consumer Finance's £535.69m LaSer ABS 2017 is backed by 470,321 unsecured personal and point of sale (POS) loans extended to individual borrowers in England and Wales.

    The transaction is the first public securitisation from the originator, which is ultimately owned by BNP Paribas Personal Finance. JPMorgan international securitisation analysts .......

    News 27 February 2017

  • Risk transfer round-up - 24 February

    Several risk transfer securitisations are understood to have entered the pipeline this past week.

    According to sources, Lloyds is working on a capital relief trade referencing commercial real estate assets, which is said to be "similar" to Barclays' Griffon deal from last year. Meanwhile, Barclays is rumoured to be prepping a transaction referencing corporate loans that will reportedly be priced .......

    News 24 February 2017

  • FFELP rating actions revealed

    Fitch has disclosed the rating actions resulting from the update to its US FFELP student loan ABS criteria (SCI 27 July 2016). The most significant change to the criteria was the introduction of new stresses aimed at analysing the vulnerability of transactions to maturity risk.

    Of the 813 tranches from 264 transactions reviewed, Fitch has upgraded 42, downgraded 105 and .......

    News 24 February 2017

  • Investment differentiation

    SCI's profile questions are answered by Triphonas Kyriakis, md for analytics at MSCI; Raghu Suryanarayanan, executive director of MSCI's risk research group; and Thomas Ta, who directs the company's development of risk management analytics.

    Q: How and when did MSCI's analytics business become involved in the securitisation market?
    TT:     MSCI has been helping investors analyse securitised products for over a decade, .......

    Provider Profile 24 February 2017

  • Warm investor response for debut turboprop ABS

    Elix Capital has closed its debut securitisation of turpoprop aircraft at a time when investors are craving such assets to diversify their investment strategies. Dubbed Prop 2017-1, the US$411m deal is the first-ever aviation ABS backed entirely by turboprop airplanes.

    One source notes that structurally the transaction was "fairly straightforward", but that there were challenges involved in educating the investor .......

    News Analysis 23 February 2017

  • Slow start to year 'not concerning' for Euro ABS

    The European securitisation market started the year with its traditional quiet January, but issuance has picked up through February and there are large, innovative deals on the horizon. However, the future of the ECB's ABSPP already appears to be weighing on the market.

    "January issuance was about €3bn this year. It was €6bn in 2016, but only €3.2bn the year .......

    News Analysis 23 February 2017

  • Risk transfer benchmark introduced

    PCS has launched the first risk transfer quality label for synthetic risk transfer deals. One of the aims of the label is to help incorporate synthetic securitisations into a future STS regulatory framework through criteria that identify key elements of a simple, transparent and standardised instrument.

    The PCS Risk Transfer Label is the product of a cross-industry and pan-European working .......

    News 23 February 2017

  • Euro ABS/MBS edges in

    European ABS/MBS secondary spreads continue to edge in.

    "The market remains strong and well-supported," says one trader. "At the same time, we're not seeing any real rotation activity from clients - even though there's action in primary, they appear content to hang on to their secondary positions as well."

    As a result, the trader adds: "Secondary spreads continue to creep .......

    SCIWire 23 February 2017

  • Ratings expansion outlined

    KBRA has named Jim Nadler ceo, with co-founder Jules Kroll stepping down from the position. The move coincides with the rating agency's plans to expand into rating European securitisations and CLOs.

    Nadler will retain the title of president, which he has held since KBRA was established in 2010, while Kroll will remain chairman. Kroll intends to spend more time on .......

    News 22 February 2017

  • UK government to securitise student loan book

    The UK government is looking to raise £12bn through the structuring and sale of a series of ABS backed by student loans. Its first offering - Income Contingent Student Loans 1 (2002-2006) - securitises a £4.1bn portfolio, but it is not clear whether the paper will appeal to the traditional ABS investor base.

    Student loan ABS is a well established .......

    News Analysis 21 February 2017

  • Marketplace deals readied, with innovations

    Kabbage is marketing its first marketplace loan ABS of the year and its second since inception. Meanwhile, SoFi is in the market with its second consumer loan ABS - SoFi Consumer Loan Program 2017-2 - backed by US$343m of consumer loans and comprising several elements that differ from its previous securitisation.

    Dubbed Kabbage Asset Securitization Series 2017-1, Kabbage's transaction is .......

    News 21 February 2017

  • Euro secondary quiet

    It was a quiet start to the week across the European securitisation secondary market thanks primarily to the US public holiday.

    As a result, little has changed - sentiment remains positive, the demand for paper is still strong and sellers are few and far between as the belief continues that it is not yet the time for extensive profit-taking. Overall, .......

    SCIWire 21 February 2017

  • Deploying capital

    Chris Redmond, global head of credit at Willis Towers Watson, answers SCI's questions

    Q: How and when did Willis Towers Watson become involved in the securitisation market?
    A:     Willis Towers Watson has an international team conducting research of all credit managers and products, including securitised credit. While we had exposure to securitised credit via broad, generalist mandates beforehand, it was in the aftermath of the financial crisis when we started making dedicated, specialist allocations .......

    The Structured Credit Interview 20 February 2017

  • Italian mixed NPL portfolio added

    AnaCap Financial Partners is set to acquire a €177m portfolio of Italian performing and non-performing corporate secured loans from Barclays. The transaction is the latest in a flurry of Italian mixed portfolio acquisitions through which the private equity firm has developed valuation expertise.

    AnaCap targets mixed portfolios of primarily consumer and SME debt across Europe, including performing, semi-performing and non-performing .......

    News Analysis 17 February 2017

  • CPACE partnership to leverage ABS

    Renovate America and Greenworks Lending have formed a national partnership to offer commercial PACE financing through the HERO securitisation programme in Missouri, allowing both firms to leverage considerable synergies. The two firms plan to expand their CPACE partnership to all states where the HERO programme operates, including California and Florida, later this year.

    "This partnership enables us to better serve .......

    News 17 February 2017

  • Job swaps round-up - 17 February

    Europe
    Wells Fargo     has hired Steve Hulett as head of credit and ABS sales EMEA. He was previously co-head of mortgages and ABS for Jefferies, Europe.

    North America
    Gramercy Funds Management has appointed Bradshaw McKee to the role of md, capital solutions and distressed portfolio manager. He was previously co-head of emerging markets, structured credit trading at Deutsche Bank.

    Houlihan Capital has .......

    Job Swaps 17 February 2017

  • Euro ABS/MBS drifts

    The European ABS/MBS secondary market appears to be drifting along this week.

    Trading activity continues to be patchy with overall volumes very light and supply remains limited across all ABS/MBS sectors. Market tone is still strong and as a result secondary spreads are broadly unmoved over the past three sessions. Any major change is unlikely over the next few trading .......

    SCIWire 16 February 2017

  • Optimistic outlook for Brazilian ILS

    AlphaCat Managers and Terra Brasis Resseguros have completed a US$5m private catastrophe bond-lite. Dubbed Alpha Terra Validus I, the transaction is believed to be the first offering of Latin American reinsurance risk on an indemnity basis and is the first cat bond sponsored by a Brazilian company.

    Listed on the Bermuda Stock Exchange, Alpha Terra Validus I was issued through .......

    News 15 February 2017

  • US ABS tightens

    US ABS secondary market spreads keep tightening despite continued supply.

    Appetite for paper in secondary remains strong across the majority of ABS sectors and even any uptick in primary issuance is having little impact. For example, the announcement of two new sizeable American Express deals saw credit card spreads continue to tighten in both fixed and floating.

    Further, the growing .......

    SCIWire 14 February 2017

  • Credit card issuance on a roll

    American Express has returned to the ABS market after an 18-month absence with a pair of credit card securitisations accounting for US$1.15bn of paper. The move comes after approximately US$5.5bn was placed by four other credit card issuers in January (see SCI's primary issuance database).

    Both the US$571.4m American Express Credit Account Master Trust Series 2017-1 and US$574.8m .......

    News 14 February 2017
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