ABS

  • Liquid alternatives firm formed

    Pacific Alternative Asset Management Company (PAAMCO) has entered into a strategic transaction to create a new liquid alternatives investment firm by combining with KKR Prisma. The new entity, which will operate under the brand PAAMCO Prisma Holdings, could be expected to invest in structured credit products.

    Under the terms of the agreement, the entire businesses of both PAAMCO and KKR .......

    News 10 February 2017

  • Distressed vet heads new credit platform

    BC Partners has recruited Ted Goldthorpe to lead its new credit platform, BC Partners Credit. The firm will pursue a strategy that identifies attractive opportunities in any market environment and across sectors, including stressed/distressed debt, asset-based lending and structured finance.

    Previously president of Apollo Investment Corporation, Goldthorpe has been hired as a managing partner to launch and oversee BC Partners .......

    News 10 February 2017

  • Mariner makes market debut

    Mariner Finance has hit the market with an inaugural US$225m consumer finance securitisation. Dubbed Mariner Finance Issuance Trust 2017-A, the transaction comprises 89,914 non-prime/subprime secured and unsecured consumer loans.

    Provisionally rated by KBRA and S&P, the ABS comprises US$189m AA-/BBB+ class A notes,  US$19.8m A/NR class Bs and US$16.2m BBB/NR class Cs. Mariner is both servicer and sponsor of the .......

    News 10 February 2017

  • Risk retention trends emerging

    Different retention strategies have emerged for US CLOs and CMBS leading up to and since the implementation of risk retention rules on 24 December 2016, with varying benefits also arising, such as a perception of increased quality in such deals. For the broader ABS market, however, approaches are still taking shape.

    There are five main strategies for risk retention: a .......

    News Analysis 9 February 2017

  • Leveraging NPL disposals

    UniCredit is expected to use leverage in its planned €17.7bn NPL securitisation, dubbed Project Fino, in an attempt to bridge the bid/ask gap on the asset valuations with investors PIMCO and Fortress (SCI 14 December 2016). The first phase of the transaction - in which it will sell at least a 20% vertical tranche of the portfolio - will be .......

    News Analysis 9 February 2017

  • TGI Friday's taps market

    TGI Friday's is in the market with a US$450m whole business securitisation. Dubbed TGIF Funding, the transaction is backed by royalties from 849 franchise locations and 54 company-operated restaurants.

    The deal comprises US$50m class A1 notes and US$400m class A2 notes, both provisionally rated BBB/BBB- by KBRA and S&P. Barclays is sole structuring advisor and book-runner, while FTI Consulting is .......

    News 9 February 2017

  • Euro ABS/MBS lighter

    Volumes in the European ABS/MBS secondary market are lighter than last week.

    "Secondary activity has slowed down again this week thanks mainly to there being a few relatively complicated new deals marketing and occupying a lot of attention," says one trader. "At the same time, the latest Towd Point priced tight for what it was, so there's plenty of appetite .......

    SCIWire 9 February 2017

  • DOE findings 'mixed' for SLABS

    The US Department of Education's (DOE) determination that more than 800 career-training programmes are failing gainful employment accountability standards is credit negative for outstanding ABS backed by private student loans, says Moody's. By contrast, it is actually credit positive for future securitisations.

    The gainful employment accountability standards evaluate borrowers' ability to service their student debt. Career-training programmes which repeatedly fail .......

    News 8 February 2017

  • Punch purchase proceeds

    Patron Capital has purchased 63.31 million of ordinary shares in Punch Taverns at 180 pence per share through Vine Acquisitions, the bidco set up with Heineken UK to acquire Punch Securitisation A (SCI 22 December 2016). The shares became available after Emerald Investment Partners withdrew its rival offer for the pub operator last week.

    The share purchase represents approximately 28.5% .......

    News 8 February 2017

  • 'Atypical' ILS issuance tallied

    At 20 transactions, 2016 saw the fewest number of catastrophe bonds brought to the market since 2009, according to Swiss Re's latest ILS Market Update. However, average deal size grew by nearly 20% on 2015 to approximately US$300m on "atypical" new issuance patterns (see SCI's primary issuance database).

    For the first time, volumes in Q3 (at US$925m) were .......

    News 7 February 2017

  • US ABS rolls on

    Strong volumes and demand for paper is rolling on across the US ABS secondary market.

    The rally throughout the stack and in all ABS sectors seen in January has continued into this month. Appetite for paper appears undiminished though the pace of spread narrowing has reduced in some areas over the past week or so as recent tights are reached.

    SCIWire 7 February 2017

  • Individual arbitration for Bethune case

    The US District Court for the Southern District of New York last week ruled in favour of Lending Club in a putative class-action lawsuit alleging that the marketplace lender partnered with Utah-based WebBank to avoid the application of New York state interest rate limitations (SCI 6 May 2016). Moody's notes that the ruling is credit positive for ABS backed by .......

    News 7 February 2017

  • Euro secondary patchy

    Activity in the European securitisation secondary market continues to be patchy.

    Friday saw a relatively quiet session after a pick-up over the previous two days, but yesterday saw a flurry of activity and a couple of BWICs that traded strongly. Focus in ABS/MBS continues to surround peripheral paper, while CLOs remain most interested in lower mezz. Overall, sentiment is still .......

    SCIWire 7 February 2017

  • Canadian auto ABS announced

    Bank of Nova Scotia is in the market with its second Canadian auto receivables ABS, the US$752.68m Securitized Term Auto Receivables Trust 2017-1. The transaction is backed by 37,664 prime-quality retail instalment auto loan contracts secured by cars, SUVs and light-duty trucks.

    Provisionally rated by Moody's and S&P, the transaction comprises US$110m P-1/A-1+ rated class A1 notes, US$175m Aaa/AAA class .......

    News 6 February 2017

  • Horse Capital leading the way?

    The recently-issued Horse Capital I catastrophe bond is further evidence of the ILS market continuing to push boundaries. However, it is not only the underlying risks that are changing, given the noticeable shift towards 'cat bond-lite' structures.

    The €255m Horse Capital I priced in December, with Willis Capital Markets & Advisory acting as the sole structuring agent for the deal .......

    News Analysis 6 February 2017

  • 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
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