ABS

  • 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

  • Fixed income firm nabs sales duo

    Alcentra has made two new hires to its business development team in London. Nicholas Pont joins as md, senior institutional marketer and Sam Morse as executive director, institutional marketer.

    Pont was previously at PIMCO, where he was head of UK and Ireland business development. In his new role at Alcentra, Pont will be responsible for selling Alcentra's entire suite of .......

    Job Swaps 28 November 2016

  • Liquidity facility reduction agreed

    Unique Pub Finance Co last week canceled £37m out of the £190m liquidity facility amount available to the UK whole business securitisation via an agreement with RBS. Going forward, the liquidity facility amount will be sized to cover the maximum amount of debt service over any future 18-month period, with the amount available for the class M and N notes .......

    News Round-up 28 November 2016

  • Issuance landscape surveyed

    Central bank quantitative easing measures will influence EMEA ABS and RMBS the most, according to half of the market participants recently polled by Moody's. Some consider that such measures are cannibalising issuance, while 45% of those surveyed expect levels to remain stable in 2017.

    "Specialised lenders and non-bank entities will make up an increasing share of issuance in 2017, particularly .......

    News Round-up 28 November 2016

  • Euro risk retention 'agreement reached'

    The European Parliament appears to have reached a consensus on its approach to securitisation. The MEPs responsible for the new securitisation bills are understood to have come to an agreement on risk retention, which had been the main sticking issue.

    Risk retention recommendations ranged from the current 5% right up to 25%, with Rabobank credit analysts attributing a stalemate on .......

    News 25 November 2016

  • Car trouble?

    Auto loan deterioration affects ABS value

    US auto ABS issuance is booming, but collateral continues to deteriorate and delinquencies have climbed by more than 10% year-on-year. With investors required to exercise ever greater vigilance, some compensation by way of spread widening may be necessary.

    "Delinquencies and losses have been climbing in the auto ABS sector. While these time series have not yet deteriorated as far as .......

    News Analysis 25 November 2016

  • Valuation role for structured credit pro

    Alan Packman has joined Moody's Analytics in London as a product specialist in its structured analytics & valuations department. Packman previously worked at Stifel, where he was an md in asset-backed finance. Prior to that, he worked at UBS, where he was executive director and European head of global CDO trading.

    .......

    Job Swaps 25 November 2016

  • Draft ILS regulations released

    As part of the Chancellor's Autumn Statement, the UK government has launched a consultation setting out its proposed corporate, tax and regulatory framework for ILS. The consultation reiterates the government's aim to create an efficient and streamlined regime for multi-arrangement ISPVs (mISPVs) in the UK, setting out the draft regulations it intends to place before Parliament early in 2017.

    The .......

    News 24 November 2016

  • Euro ABS/MBS firm

    Tone remains firm in the European ABS/MBS secondary market albeit on low volumes.

    Inevitably with the US Thanksgiving holiday flows have been very light over the past couple of sessions and look set to stay that way for the rest of the week. Nevertheless, sentiment remains positive across the bulk of sectors and consequently secondary spreads are unmoved. Even Italian .......

    SCIWire 24 November 2016

  • EU proposals support securitisation

    The European Commission has presented a package of reforms to strengthen the resilience of EU banks, including measures to facilitate securitisation and derivatives activity. They contribute to the Commission's ongoing work to reduce risk in the banking sector and are in line with the ECOFIN Council in June, where the Commission was invited to put forward relevant proposals no later .......

    News Round-up 23 November 2016

  • Constructive outlook for Euro ABS

    This year has been a year of 'two halves' for the international ABS market, according to JPMorgan European securitisation analysts, with the supply/demand imbalance in 2H16 supplanting the volatility and uncertainty seen in the first half. Against this backdrop, they gauge both ABS investor and issuer perceptions of the sector heading into 2017, based on the results of their latest .......

    News 23 November 2016

  • Below-prime card deal prepped

    Continental Finance Company is in the market with a US ABS transaction securitising below-prime credit card debt. Continental's business model is focused on borrowers with limited credit history or a below-prime credit score.

    The US$40.744m class A notes of Continental Credit Card ABS 2016-1 have been provisionally rated by Morningstar at single-A plus. The US$13.581m class Bs have been rated triple-B .......

    News Round-up 23 November 2016

  • Depreciation hits Hertz ABS

    Moody's says that the sharp drop in Hertz Corp's Q3 earnings and reduced full-year guidance are credit negative for the company and, by extension, its rental car ABS. However, the agency notes that several structural features mitigate the impact of lower earnings on the transactions.

    "Hertz Corp faces earnings challenges owing to, among other things, a substantial depreciation adjustment to .......

    News Round-up 23 November 2016

  • On the agenda

    Efforts to tackle European NPLs gather pace

    Efforts by European policymakers to tackle the region's non-performing loan burden appear to be gathering pace. Establishing a central clearinghouse for NPLs has been mooted, while the ECB's latest Financial Stability Review calls for the creation of further government-backed bad banks.

    The concept of a central clearinghouse as a solution to Europe's NPL issue has been backed by Gert-Jan Koopman, .......

    News Analysis 23 November 2016

  • Nordic cooperation inked

    SCIO Capital has announced what it terms as "a cooperation" with Nordic-focused institutional investment advisory firm Lapposand and its owner Jessica Eistrand. Eistrand's background is in fixed income and structured products, with several international investment banks and investment advisors. More recently, she has been working with sustainability and alternative investment managers seeking to grow their Nordic institutional investor market presence.

    Job Swaps 22 November 2016

  • Premium pricing

    Above-par issuance techniques explored

    Above-par issuance is becoming a staple of the European primary ABS market. Deals backed by auto loans, mortgages and credit cards have recently tested the water with this pricing concept, paving the way for other issuers navigating markets in which negative rates prevail.

    "From an issuer perspective, the step was a logical one," says Serdar Ozdemir, director of structured debt .......

    News Analysis 22 November 2016

  • Basel tensions flagged

    Basel Committee discussions next week may expose divisions between national members and lead to further differentiation between the EU and internationally-agreed Basel standards, Fitch suggests. The latest Basel 3 amendments - sometimes referred to as Basel 4 - seek to restrict the use of internal risk models and set overall capital requirements using the revised standardised approaches.

    EU politicians have .......

    News Round-up 21 November 2016

  • Election may yield positive results for SF

    The recent election of a Republican government "should be good for economic growth" and securitisation, with credit spreads benefitting from a tightening bias, according to Wells Fargo structured product analysts. They add that reversing already inked regulations might have a mixed result for structured finance in the US, but that a big fiscal stimulus "may push economic expansion past historic .......

    News 21 November 2016

  • FX issues

    Currency risk hindering Polish mortgage portfolio sales

    Recent speculation that Deutsche Bank could be selling its Polish unit has highlighted the FX issues associated with shedding non-core mortgage assets in the country. Roughly a third of Deutsche Bank Polska's assets are said to be euro- and Swiss franc-denominated mortgages, the sale of which is likely to be challenged by the Polish regulator in an effort to maintain .......

    News Analysis 21 November 2016

  • Container ABS decline persists

    Container ABS volumes have continued to fall in Q3. This follows sluggish demand for containers, which has provided headwinds for the sector through 2016.

    Container ABS outstandings have fallen to around US$4.8bn, down by nearly US$2.5bn since the end of 2013, according to Wells Fargo figures. Structured product analysts at the bank attribute the decline to a lack of primary .......

    News 18 November 2016

  • First prime HUNT ABS of the year

    Huntington National Bank is in the market with its first prime retail auto ABS issuance of 2016. The US$1.5bn Huntington Auto Trust 2016-1 auto loan ABS is Huntington's eighth standalone retail term securitisation.

    The assets in the deal consist of prime quality retail instalment auto loan contracts, backed by cars, sports utility vehicles and light-duty trucks, all originated by Huntington. .......

    News Round-up 18 November 2016
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