ABS

  • Weather risk platform introduced

    Speedwell Weather has launched its weatherXchange platform, which aims to help companies access index-based weather risk protection and which provides valuation and settlement services. As well as access to weather data, it also provides structuring tools to help new hedgers through the process of designing a hedge.

    weatherXchange is designed to bring index-based weather hedging to new users in energy, .......

    News Round-up 16 January 2017

  • Ratings suits settled

    The US Department of Justice, 21 states and the District of Columbia have reached a nearly US$864m settlement agreement with Moody's, Moody's Analytics and their parent Moody's Corporation. The settlement resolves allegations arising from Moody's role in providing credit ratings for legacy RMBS and CDOs, including pending state court lawsuits in Connecticut, Mississippi and South Carolina, as well as potential .......

    Job Swaps 16 January 2017

  • Flawed logic

    Regulators' confidence in extra ratings 'misplaced'

    The regulatory drive to require multiple ratings for European structured finance products may not achieve its intended aims, despite necessarily adding costs. The findings of a recent Finance Research Letters study suggest that the regulatory initiative is based on an understanding of market practices that is not borne out by facts.

    Conventional wisdom states that investors gain comfort from additional .......

    News Analysis 13 January 2017

  • Holding steady

    Partnerships, ABS to help marketplace lending stabilise

    The marketplace lending sector endured several tests to its model at the start of 2016, but managed to regain investor confidence by year-end, reflected in a resurgence of MPL ABS issuance. While 2017 could be defined by consolidation, partnerships and greater securitisation activity, questions remain over true lender status, regulatory oversight and how firms will adapt in a rising interest .......

    News Analysis 12 January 2017

  • Tradewynd bonds affirmed

    Fitch has affirmed the Tradewynd Re Series 2014-1 class 3A and 3B notes, which are expected to mature on 8 January 2018, at double-B minus and single-B respectively. The agency confirms that no reported covered events exceeded the initial attachment levels of the notes within the annual risk period from 1 January 2016 through 31 December. All interest was paid .......

    News Round-up 11 January 2017

  • Aussie auto outlook negative

    The performance of assets backing Australian auto ABS is negative, while the performance of mortgage assets backing Australian RMBS is stable, according to Moody's in a 2017 outlook. The rating agency adds that mortgage delinquencies may increase, but only moderately and from low levels, while auto ABS will generally see higher losses and delinquencies through 2017.

    Moody's says that several .......

    News Round-up 11 January 2017

  • Investment chief named

    Semper Capital Management has promoted Zach Cooper from deputy cio to cio, replacing Jay Menozzi, who has retired from the industry. Cooper will continue as one of the firm's senior portfolio managers. He has over 20 years of structured credit investment experience, having previously worked at Treesdale Partners, PrinceRidge, Highland Financial and Deutsche Bank.

    .......

    Job Swaps 11 January 2017

  • Green SRT emerging

    The final panel at SCI's recent Capital Relief Trades Seminar struck an optimistic note regarding developments in new jurisdictions and asset classes. Indeed, 'green' lending is emerging as a consideration for some investors in the sector.

    The European landscape as a whole has witnessed a boost in capital relief trade activity. According to Molly Whitehouse, vp at Mariner Investment Group, .......

    News 11 January 2017

  • A nebulous concept

    Challenges in defining the cost of capital highlighted

    The challenges in defining the cost of capital were discussed extensively at SCI's recent Capital Relief Trades Seminar. Panellists agreed that it is a nebulous concept.

    "The most naïve view one usually starts with is that the cost of capital is effectively the coupon of the first year divided by the capital relief," said Jeremy Bradley, director at Lloyds. "Yet .......

    Talking Point 11 January 2017

  • Italian comeback?

    Scope Ratings expects a "slow, unsteady comeback" for public securitisations of Italian non-performing loan ABS in 2017. The agency says that their return "can help improve Italian banks' balance sheets, which will allow them to refocus on retail and corporate lending."

    Bank of Italy figures show that the stock of Italian gross NPLs fell by €4bn to €356bn in the .......

    News 10 January 2017

  • Firm nabs credit vet

    Ares Management has hired Scott Graves as a partner in the firm's private equity group, based in Los Angeles. Graves will lead the Ares special situations funds platform as portfolio manager and head of distressed.

    Graves' primary responsibilities will include overseeing investments within the special situations strategy and expanding Ares' distressed capabilities across the firm. Additionally, he will serve as a member .......

    Job Swaps 10 January 2017

  • Japan, China outlooks stable

    Moody's outlook for the performance of assets backing consumer-related ABS and RMBS in Japan is stable, with defaults and delinquencies to remain low and the credit quality of loans backing new deals expected to be strong. The credit quality of new ABS and RMBS in China should also be good, although there are grounds for concern.

    For Japanese ABS, low unemployment .......

    News Round-up 10 January 2017

  • Euro secondary sporadic

    Activity remains sporadic across the European securitisation secondary market.

    ABS/MBS continues to be as quiet as it was into year-end with only a few flash BWICs and patchy bilateral trading in major names being seen over the past week. However, positive sentiment and pent-up demand mean that spreads remain flat to slightly narrower in the year so far.

    CLOs have .......

    SCIWire 10 January 2017

  • Firm boosts SF sales team

    StormHarbour has hired Christos Danias as md of credit sales for ABS and CLOs. He joins from Cantor Fitzgerald, where he was md of structured credit for Europe, also focusing on ABS and CLO sales and trading. Prior to Cantor Fitzgerald, Danias was head of CDOs, Europe for BNP Paribas and before that worked in CDOs for Credit Suisse.

    .......

    Job Swaps 9 January 2017

  • Aeolus acquisition closed

    Elliott Management Corp funds Elliott Associates and Elliott International have acquired a controlling interest in Aeolus Capital Management and its affiliated entities (SCI 2 November 2016). Elliott acquired its controlling interest from Aeolus founder Peter Appel and Allied World Assurance Company, an investor in Aeolus since December 2012.

    Appel has retained a significant minority interest in Aeolus and will serve .......

    Job Swaps 9 January 2017

  • CMBS head promoted

    DBRS has appointed Christian Aufsatz to a new role as md, head of European structured finance. He will also remain head of European CMBS. Based in London, he will be responsible for managing the ratings business for new securitisations and surveillance of outstanding structured finance transactions.

    Aufsatz joined DBRS in 2015 as head of European CMBS and has 15 years .......

    Job Swaps 9 January 2017

  • Rating agency swipes ABS vet

    Morningstar Credit Ratings has hired Norman Last as director of business development for ABS ratings services. He will head the agency's business development strategy for non-real estate ABS and CLOs.

    Last will be based in Morningstar's New York office and will report to the firm's coo Joe Petro. Most recently, he was md and head of ABS at Scotiabank, where .......

    Job Swaps 9 January 2017

  • Insurer inks rival buyout

    Arch Capital has completed its acquisition of United Guaranty Corporation (UGC) from American International Group (AIG) (SCI 16 August 2016). The acquisition of UGC expands Arch's existing mortgage insurance businesses by combining UGC's position as the market leader in the US private mortgage insurance industry and helps to diversify its business profile and customer base.

    Arch Capital comments that the expansion of .......

    Job Swaps 6 January 2017

  • Issuance estimates revised upwards

    Most structured finance markets and their credit conditions seem favourable and in some cases ideal going into 2017, according to S&P's 2017 outlook. The agency has therefore increased its issuance forecast since October, projecting US$365bn-US$375bn total issuance for the US, with China expected to see the second largest issuance at an estimated US$140bn. The global total for 2017 is expected .......

    News Round-up 5 January 2017

  • Larger cat bonds proliferating

    Nearly US$2bn in catastrophe bonds was issued in 4Q16, according to PCS figures. The size of three of the quarter's four transactions exceeded US$200m, indicating a continued trend towards larger cat bonds from experienced sponsors.

    The largest issuance of the quarter and of the year was the US$750m Galilei Re deal, which was brought by a privately managed entity (XL .......

    News Round-up 5 January 2017

  • New lows for prime chargeoffs

    US prime credit card ABS chargeoffs reached a new low of 2.33% in December, says Fitch. Retail credit card metrics were mixed.

    The rating agency's prime credit card chargeoff index is now 10bp below its previous low record of 2.43%, which was reached in October 2016. It is 10% lower year-over-year and nearly 80% lower than the high reached in September .......

    News Round-up 4 January 2017
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