ABS

  • LatAm outlook 'stable'

    Latin American structured finance transactions should enjoy a stable credit environment next year, despite subdued economic growth, says Fitch. Around 86% of the agency's rating outlooks for the sector are stable or positive, compared to 80% at the end of last year.

    Fitch's sector outlook is stable for consumer ABS, where adequate credit enhancement and structural features continue to protect .......

    News Round-up 6 December 2016

  • Reputation management

    MPL ABS growth likely, subject to strong macroeconomics

    Marketplace loan ABS performance will generally remain stable into 2017, with loan originations and issuance growing, according to Moody's. The agency adds that the marketplace lending sector will use 2017 as a year to rebuild its tarnished reputation after a series of negative developments in 2016.

    The firm points out that these challenges could, however, still further expose platforms' shortcomings .......

    News Analysis 6 December 2016

  • Euro secondary quiet

    The European securitisation secondary market has had another quiet start to the week.

    Italy was unsurprisingly the main focus yesterday, but as with broader markets securitisation secondary was little moved and flows were light. Italian paper has edged out a few basis points and there was some softening of tone in other peripherals, but for the most part ABS/MBS secondary .......

    SCIWire 6 December 2016

  • Chinese CLO outlook 'negative'

    The performance of assets backing Chinese auto loan ABS and RMBS will be stable throughout 2017, but negative for CLOs, according to Moody's. The rating agency adds that future deals with high exposures to China's lower-tier cities or industries facing overcapacity issues will underperform.

    Chinese auto ABS collateral is expected to be of good credit quality, so delinquencies will remain .......

    News Round-up 5 December 2016

  • Ratings watch follows classification error

    S&P has placed the ratings of CAN Capital Funding Series 2014-1's class A and B notes on creditwatch with negative implications. A correction by CAN Capital Funding of the delinquency statuses of previously misclassified assets has triggered a rapid amortisation event.

    The misclassified assets should have been classified as either defaulted or subject to a material modification, but the servicer's .......

    News Round-up 5 December 2016

  • Organisational changes confirmed

    Scope Group's holding company has transitioned into Scope SE & Co KGaA. At the same time, the rating agency is raising capital to finance its accelerated European growth.

    The first tranche of shares - at a volume of €30m - will be placed in the next few weeks, with almost half already confirmed with or reserved by investors. Scope plans .......

    Job Swaps 5 December 2016

  • Noteholder committee mooted

    A number of investors in the UK student loan ABS, Honours, indicated during a recent noteholder conference call their wish to form a committee to assist the issuer in dealing with the Consumer Credit Act non-compliance investigation (SCI passim). Accordingly, the issuer is proposing that one or more ad hoc committees - representing noteholders or individual classes of noteholders - .......

    News Round-up 5 December 2016

  • ILS firm swaps chiefs

    Michael Krefta will assume the role of ceo for Hiscox Bermuda as of 1 August 2017. This follows the announcement that Jeremy Pinchin, ceo of Hiscox Re and ILS and ceo of Hiscox Bermuda, will return to London.

    Krefta is currently chief underwriting officer of Hiscox Re and in his new leadership role will be based in Bermuda. He will .......

    Job Swaps 2 December 2016

  • Acquisition prompts amendments

    Structural amendments have been implemented in relation to Dutch auto lease ABS Highway 2015-I, following a change in ownership of the transaction's originator, Athlon Car Lease Nederland. Mercedes-Benz Financial Services Nederland acquired all the shares in Athlon on 1 December.

    As a result, the back-up servicer - De Lage Landen International - has been replaced by Mercedes-Benz Bank, which will .......

    News Round-up 2 December 2016

  • MPL disclosure paper published

    SFIG has released a green paper on the responsible growth of securitisation in the marketplace lending sector, focusing initially on sufficient data disclosure. The paper seeks to identify a framework of market standards and recommends best practices through an open discussion among a broad cross-section of market participants.

    The organisation has also established a marketplace lending committee made up of 250 individuals .......

    News Round-up 2 December 2016

  • PACE residuals deal prepped

    Renovate America is in the market with an usual PACE securitisation. Dubbed HERO Residual Funding 2016-1R (Cayman), the US$125m transaction is backed by the residual certificates of five previously issued PACE ABS from the HERO platform.

    The collateral consists of the residual certificates issued by the HERO Funding Trust 2015-1, 2015-2, 2015-3, 2016-1 and 2016-2 deals. These transactions are backed .......

    News Round-up 2 December 2016

  • New entrants to boost issuance

    Moody's anticipates a slight increase in issuance of European ABS and RMBS next year. The agency expects new entrants to take a larger share of the market, amid increasing appetite for non-performing loan transactions and marketplace lending ABS.

    "Our key credit considerations would focus on differing origination criteria from traditional banks and the lack of historical data. Auto ABS will .......

    News Round-up 2 December 2016

  • Charge-off record reversed

    US credit card ABS 60-plus day delinquencies and charge-offs are up slightly from previous record lows, according to Fitch. After remaining below 1% for the last six months, Fitch's index shows an increase in 60-plus day delinquencies and charge-offs to 1.01% for the month of November, although the level remains well below the historical high of 4.54% in December 2009.

    News Round-up 1 December 2016

  • Euro ABS/MBS distracted

    New deals are continuing to keep focus way from the European ABS/MBS secondary market.

    "Primary is still distracting most players, with a couple of new deals in particular drawing most attention right now," says one trader. "The Red & Black autos deal is pretty straightforward, but the next Towd Point issue is more complex and it's taking a bit of .......

    SCIWire 1 December 2016

  • Tip of the iceberg?

    ABS impact investment to rise as green bonds gain traction

    Securitisation is increasingly recognised as providing the 'double bottom-line' benefits sought by impact investors. Indeed, the number of impact investors allocating to ABS is expected to continue rising alongside issuers seeking to broaden their investor base, despite the election of reported climate change denier Donald Trump.

    Impact investment is growing, with a number of bond funds - such as BlackRock .......

    News Analysis 30 November 2016

  • Trustee service expands in Korea

    BNY Mellon has been granted a full All Asset Trust License status in Korea. The move will enable the firm to provide trustee services for the domestic market, expanding its international services to Korean clients.

    The All Asset Trust License complements BNY Mellon's Money Trust License, growing its trustee services capabilities from money receivables trusts to intangible property rights. The new license .......

    Job Swaps 30 November 2016

  • Liquidity stress anticipated

    Fitch believes that demonetisation could lead to a short-term liquidity stress in Indian auto ABS transactions. The agency suggests that providing the stress is limited to a few months, it is unlikely to result in pressure on ratings.

    India began to withdraw high-denomination bank notes - that account for 86% of the value of currency in circulation - earlier this .......

    News Round-up 30 November 2016

  • EMEA SME ABS trends to continue

    EMEA SME ABS market activity and deal characteristics will be driven by a broad array of originators' objectives, says Moody's. The trend for disintermediation will lead to more marketplace lending and SME CLO transactions, with the rating agency expecting performance to remain stable across all major markets.

    Originators have multiple objectives, such as tapping either the public market or targeting .......

    News Round-up 30 November 2016

  • CRR boost?

    The European Commission's CRR 2 reforms, which it unveiled last week, include proposals that appear to increase the attractiveness of securitisation in connection with the leverage ratio and net stable funding ratio (NSFR). The package embeds three main Basel 3 elements into EU law: the fundamental review of the trading book (FRTB), the leverage ratio and the NSFR.

    IFRS accounting .......

    News 29 November 2016

  • Euro secondary surge

    There is a surge in activity throughout the European securitisation secondary market.

    Activity has picked up across the board following the US holiday last Thursday and this week is seeing a notable pick-up in BWICs either side of month-end. Until now the buying bias remains and spreads have held up in the majority of sectors. However, continuing concern around the .......

    SCIWire 29 November 2016

  • Good credit quality anticipated

    Moody's expects the performance of the Indian, Korean and Singaporean securitisation markets to be stable in 2017. Good credit quality across most asset classes is anticipated.

    "In India, robust growth and low oil prices will underpin stable auto ABS performance, despite the economic disruption from the country's demonetisation," says Yian Ning Loh, a Moody's svp. "In Korea, low unemployment and .......

    News Round-up 28 November 2016
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