ABS

  • 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

  • Counterparty replacement warning

    Pending derivative regulations including swap margin posting requirements are creating uncertainties for both new and existing structured finance transactions, notes Fitch. Scheduled to go into effect in March 2017, the new rules require daily posting of two-way variation margin on affected derivatives.

    While new swaps executed after 1 March 2017 would clearly be affected, Fitch's interpretation of the current proposals .......

    News Round-up 18 November 2016

  • Mutual fund launched

    Palmer Square Capital Management has rolled out its ultra-short duration investment grade strategy in a mutual fund format. The new offering is dubbed Palmer Square Ultra-Short Duration Investment Grade Fund.

    Christopher Long, president of Palmer Square Capital Management, comments: "Given the lack of true ultra-short duration funds, as well as the changes which have occurred with money market funds, we .......

    News Round-up 18 November 2016

  • Navient bonds extended

    Navient has amended the transaction agreements for Navient Trust 2014-8, totalling US$469m of FFELP student loan ABS bonds. The legal final maturity of the deal's A3 tranche has been extended to 2049. The legal final maturity dates on US$7.8bn of bonds from Navient-sponsored FFELP securitisations have been extended since December 2015.

    .......

    News Round-up 18 November 2016

  • Disruptive opportunities

    Bijesh Amin, co-founder of Indus Valley Partners, discusses...

    Alternative asset managers see scope for investment opportunities in structured credit resulting from post-crisis regulatory changes, combined with the emergence of disruptive technologies, such as big data, P2P and AI. However, caveat emptor remains.

    Hedge funds trading structured credit asset classes, such as MBS and ABS, are utilising disruptive technologies to take advantage of opportunities in the sector as a .......

    Talking Point 18 November 2016

  • Virgin handset deal closed

    Royal Bank of Canada has arranged a £125m mobile handset securitisation programme for Virgin Media Mobile, the first of its kind in Europe. The underlying receivables consist of loans provided by Virgin Media Mobile to its customers in order to finance the purchase of handsets from Virgin Mobile Telecoms.

    Allen & Overy advised RBC as arranger on the transaction, with .......

    News Round-up 17 November 2016

  • Euro tranche debuts

    FirstRand Bank is in the market with its latest UK auto ABS, Turbo Finance 7. The deal, which is provisionally sized at £405m, includes a euro-denominated tranche - a first for the programme.

    Provisionally rated by Moody's and S&P, the transaction comprises: Aaa/AAA rated 1.7-year class A1 and class A2 (euro-denominated) notes; A2/A 3.6-year class Bs; Baa3/A- class Cs; and .......

    News Round-up 17 November 2016

  • Euro ABS/MBS unchanged

    There's been little movement in the European ABS/MBS secondary market this week, so far.

    While sentiment continues to be positive, volumes have remained low this week as most investors appear content to sit on the sidelines for now. What activity there has been has revolved around prime assets and Street trading. Consequently, ABS/MBS secondary spreads across the board have remained .......

    SCIWire 17 November 2016

  • CRT line-up finalised

    Panellists are being finalised for SCI's latest Capital Relief Trades Seminar, which is being held on 22 November in London. The event will be hosted by Reed Smith at its offices at 20 Primrose Street, EC2A 2RS.

    As securitisation shifts from being used as a funding tool to a balance sheet and credit risk management tool, balance sheet relief trades .......

    News Round-up 17 November 2016

  • Auto ABS restructured

    Italian auto loan ABS A-Best 14 - which closed on 11 May (see SCI's new issuance database) - has been restructured. The amendments include the retranching of the principal amount of all classes of notes, increasing the total issuance volume and portfolio size, and changing the fixed interest rates of the class B, C and D notes. The .......

    News Round-up 16 November 2016

  • Reinsurance pro brought in

    TigerRisk Partners has appointed reinsurance industry veteran Patrick Denzer as partner, with a particular focus on client management and strategic development. He was most recently Americas chairman at Guy Carpenter and has also served as ceo of John B Collins Associates, where he began his career with a focus on property catastrophe reinsurance and was involved in the development of .......

    Job Swaps 15 November 2016

  • Cali tax vote 'ABS negative'

    The passing of California's Proposition 56 - which will increase the state's tobacco tax rate from 87 cents to US$2.87 on a packet of cigarettes - is credit negative for tobacco settlement bonds, says Moody's. The tax increase goes into effect in April 2017.

    Moody's notes that national cigarette consumption declined 9.2% in the year following the federal excise tax increase from 39 .......

    News Round-up 15 November 2016

  • UK inflation to affect ABS, RMBS

    Brexit-driven inflation in the UK will be credit negative for securitisations backed by mortgages, auto loans and other consumer debt, primarily through an increase in defaults among low income borrowers, warns Moody's. These borrowers will be less able to absorb the higher costs resulting from the decision to leave the EU.

    The rating agency notes that the UK is reliant .......

    News Round-up 15 November 2016

  • Green bond tool readied

    S&P has published an updated outline of its green bond evaluation framework, following the conclusion of a consultation period on the proposal. Following further testing and calibration of the framework, the agency anticipates launching green bond evaluations in 1Q17.

    S&P's green bond evaluation tool would provide a second opinion under the Green Bond Principles and a relative green impact score .......

    News Round-up 15 November 2016

  • Overcollateralisation errors identified

    Moody's has affirmed the ratings of six tranches from two student loan ABS sponsored by Darien Rowayton Bank (DRB). The action follows the identification of a deficiency in the initial overcollateralisation amount of certain classes of notes and an error in the trustee reports regarding the calculation of overcollateralisation target amounts.

    The effected tranches are the class A1, A2 and .......

    News Round-up 15 November 2016

  • Euro secondary softens

    Declines in the bond market have begun to feed into the European securitisation secondary market.

    While sentiment continues to be generally positive across secondary, investor interest appears to have thinned since the end of last week with the spike in rate volatility. At the same time, some softness is appearing in spreads in certain sectors.

    Peripheral and UK RMBS are .......

    SCIWire 15 November 2016

  • FFELP criteria revised

    Fitch has revised its criteria for rating US FFELP student loan ABS. The changes aren't expected to have any impact on outstanding ratings, however.

    The revisions clarify how short-term assets - such as claims filed, pending interest subsidy payment and special allowance payments - are treated, as well as partial credit for sponsor's actions, prepayment calculations and reinvestment rates. They .......

    News Round-up 11 November 2016

  • 'Carriers benefit' from cellular ABS

    The securitisation of the payments of cellular equipment instalment plans (EIPs) helps diversify cell phone carriers' financing, provides liquidity and can lower carriers' overall financing costs, Fitch comments. The agency adds that EIPs also help to bring transparency to consumers in terms of device cost rather than carriers heavily subsidising it.

    The agency adds that handset financing is a financial .......

    News Round-up 11 November 2016

  • Innovative aircraft ABS well-received

    The US$800m Blackbird Capital Aircraft Lease Securitization 2016-1 priced last week, with the senior notes heavily oversubscribed. The deal is noteworthy for featuring a super-senior tranche and a higher percentage of wide-body aircraft than most aircraft ABS.

    Rated by KBRA and S&P, the transaction comprises: US$200m AA/AA rated class AA notes (which priced at a 2.50% yield for a 4.2-year .......

    News 11 November 2016

  • More downgrades for UK SLABS

    Fitch has downgraded Honours' class B, C and D notes and maintains a rating watch negative on these and the A notes. The transaction is a refinancing of the previous Honours deal which closed in 1999, securitising student loans originated in the UK by the Student Loans Company.

    Moody's recently downgraded Honours tranches and also maintained reviews for downgrade (SCI .......

    News Round-up 11 November 2016

  • Transfer pricing

    Italian ABS hindered by NPL valuation issues

    The securitisation of non-performing loans (NPLs) has been deemed a credible solution for Italian banks seeking to offload the assets from their balance sheets. Just one deal has launched to date, however. Getting a plausible valuation for the NPL portfolio being transferred to the SPV may be one of the main obstacles.

    Francesco Franzese, founder and md of Aram Capital, .......

    News Analysis 11 November 2016
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