ABS

  • Bridging the gap

    Neutralising NPL valuation discrepancies addressed

    Achieving valuations that satisfy both sellers and investors has been a major sticking point in many recent European non-performing loan transactions. This has been most notable in Italy, where the wide bid/ask gap has hindered sales of NPLs to SPVs for securitisation purposes. The EBA's latest proposals seek to address this valuation discrepancy by purchasing the loans from banks at .......

    News Analysis 3 February 2017

  • APRA consults on reporting revisions

    APRA released the final version of its updated Prudential Standard APS 120 last November (SCI 10 November 2016) and has now launched a consultation on revisions to associated reporting requirements for securitisation. These reporting requirements are expected to take effect from 1 January 2018.

    Authorised deposit-taking institutions are currently required to report their securitisation activities under three reporting standards and .......

    News Round-up 3 February 2017

  • Disclosure recommendations released

    SFIG has published the first edition in a series of papers aimed at supporting the responsible growth of securitisation in the marketplace lending sector. These green papers are a product of the association's marketplace lending committee best practices initiative and are released with the aim of stimulating further debate and discussion.

    SFIG's marketplace lending committee currently includes 250 individuals, representing .......

    News Round-up 3 February 2017

  • OTPP promotes ILS leader

    Ontario Teachers' Pension Plan has promoted Gillian Brown to md for credit, ILS and equity products. She is responsible for the fund's credit and equity indexing portfolios, as well as ILS.

    Brown has been with Ontario Teachers' since 1995. She reports to capital markets senior md Ziad Hindo.

    .......

    Job Swaps 2 February 2017

  • Securitisation prospects polled

    Fiscal policy uncertainty is the top concern cited by respondents to Morgan Stanley's 1Q17 global securitised products investor survey, accounting for 28% of the responses. Nevertheless, half of those polled expect their allocation to securitised products to stay in line with their current allocation, while 36% expect to increase their allocation, compared with 37% in 3Q16.

    The Morgan Stanley survey .......

    News 2 February 2017

  • Euro ABS/MBS rising

    Volumes and pricing levels are rising in the European ABS/MBS secondary market this week.

    "In the first few weeks of the year there was very little client selling, but that's changing and it's been getting busier this week," says one trader. "We saw some Italian auctions Monday and Tuesday, Spanish yesterday and it's primarily Spanish and Portuguese today."

    Nevertheless, the .......

    SCIWire 2 February 2017

  • FFELP ABS changes tracked

    Of 37 S&P-rated FFELP student loan ABS bonds maturing within the next five years, two appear sensitive to potential decreases in principal payment rates, says the rating agency. Of the 37 classes of ABS maturing in the next five years, six have maturities within the next year.

    S&P's FFELP maturity tracker covers classes maturing in the near term and its .......

    News Round-up 1 February 2017

  • UK ILS consultation launched

    The UK FCA has launched a consultation on proposed changes to its Handbook to reflect the new regulatory framework for ILS. The consultation is open until mid-March, with a policy statement expected in 2Q17.

    HM Treasury proposed a new regulated activity of insurance risk transformation last November, as part of an effort to design a new framework to attract ILS .......

    News Round-up 1 February 2017

  • Repurchase plan

    Italian bridge banks complete resolution process

    Nuova Banca delle Marche has completed the NPL repurchases from its securitisations in accordance with the Italian state's resolution plan. The €74.3m sale proceeds from this latest repurchase will be used to repay the Marche Mutui 4 RMBS notes on the next interest payment date in February.

    Four small lenders were placed under special administration with the Bank of Italy, .......

    News Analysis 31 January 2017

  • New VW settlement 'credit positive'

    Volkswagen has received final approval from a US federal court for a US$1.2bn cash settlement with the 652 authorised dealers in the US affected by the company's diesel-emissions scandal. Moody's believes this is credit positive for the outstanding US auto dealer floorplan ABS issued by VW's indirect subsidiary, VW Credit.

    Volkswagen received approval for another US$14.7bn settlement late last year .......

    News Round-up 31 January 2017

  • Academy adds structured products pair

    Academy Securities has made two additions to its structured products group, poaching Steve Kenney and Pierce Derkac from CapRok Capital. They will focus on multiple asset classes within structured products, including RMBS, CMBS, ABS, CDOs and CLOs.

    Kenney and Derkac join as svps. Kenney was a senior member of the sales and trading team within securitised products and special situations .......

    Job Swaps 31 January 2017

  • LCP board bolstered

    Ly Lam has been appointed to the management board of Leadenhall Capital Partners as a representative of MS Amlin. She joined MS Amlin in October as head of strategy for reinsurance, reporting to global md of reinsurance James Few. Previously, Lam was coo of Markel CATco.

    .......

    Job Swaps 31 January 2017

  • Euro secondary sluggish

    Activity across the European securitisation secondary market remains sluggish.

    After a small pick-up in activity on Wednesday and Thursday, last week closed with volumes easing and has opened this in similar fashion thanks to a combination of wider market volatility and month-end. Nevertheless, sentiment remains positive across securitisation secondary and BWICs when they do appear continue to trade strongly, which .......

    SCIWire 31 January 2017

  • ILS 'difficult to understand'

    A recent Clear Path Analysis survey of 100 institutional asset allocators finds that 22% are very likely to start investing in insurance-linked securities in the next 12 months. However, many respondents believe that catastrophe bonds remain difficult to understand, with 50% of plan representatives stating that "getting trustees comfortable with the asset class" is the biggest impediment they face to .......

    News Round-up 30 January 2017

  • Direct lending vet recruited

    HIG Capital has appointed Kenneth Borton as md of WhiteHorse Capital, based in London. He has over 17 years of experience in direct lending, structured finance and special situations.

    Borton was previously an md at Citi, with responsibility for the credit opportunities business in EMEA. He managed over US$500m of direct lending transactions across sectors and throughout the region.

    .......

    Job Swaps 30 January 2017

  • New worlds

    South American securitisation markets opening up

    The Latin American structured finance markets are changing, with significant shifts in Argentina and Brazil, as well as changes in the Mexican market. Regulatory initiatives are opening up new possibilities, with deal structures adapting and new markets on the horizon.

    In particular, there has been substantial change in Argentina since the new government took power at the end of 2015. .......

    News Analysis 30 January 2017

  • Placed issuance up

    €59bn of securitised product was issued in Europe in 4Q16, an increase of 26.9% from 3Q16 (€46.5bn) and a decrease of 19% from 4Q15 (€72.8bn), according to AFME figures. Of this, €31.1bn was placed (representing 52.7%), compared to €21.5bn placed the previous quarter (46.2%) and €15.7bn placed in 4Q15 (21.6%). Placed securitisation grew by 16% in 2016, compared to 2015's .......

    News Round-up 27 January 2017

  • High prepays for SBOLT

    Moody's reports that the performance of Small Business Origination Loan Trust 2016-1, the first European securitisation of marketplace loans, has so far largely been in line with its initial expectations. Indeed, the transaction's sponsor - Funding Circle - has had to provide minimal support, repurchasing just 0.33% of loans.

    "Loan-level defaults are in line with our expectations, at 2.20% of .......

    News Round-up 27 January 2017

  • Demonetisation hits collections

    Demonetisation appears to have had a negative impact on Indian auto loan repayments, based on collection reports from Fitch-rated securitisation transactions. Small auto-loan borrowers have been affected the most.

    Demonetisation is likely to have had a detrimental effect on the income and cashflows of commercial vehicle operators, which could continue to feed through into repayments in the next few months. .......

    News Round-up 27 January 2017

  • NZ group turns to ABS

    New Zealand's largest vehicle seller, Turners, has established a NZ$150m securitisation programme that will securitise the group's consumer loan portfolio. The programme will be implemented next month and the first receivable sales transactions are scheduled to occur in March.

    Turners believes the programme will provide an improved funding structure, committed two-year term capital and improved pricing. It also provides the .......

    News Round-up 25 January 2017

  • Heavy burden

    Student loan servicing under the spotlight

    Average US student debt levels have now swelled to a record US$30,000 plus, sparking concern that the US economy could be negatively affected by constrained home ownership and long-term consumption growth. At the same time, high-profile legal cases relating to the difficulty of debtors to discharge their debt through bankruptcy and the recent CFPB versus Navient case suggest that student .......

    News Analysis 25 January 2017
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