ABS

  • 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

  • ILS firm swipes compliance vet

    Markel CATCo has hired John Whiley as chief compliance officer. He previously worked as vp and head of ILS at Prime Management, a division of SS&C GlobeOp.

    Whiley was at Prime Management, an independent service provider in the ILS industry, for 14 years. He then stayed with the firm after it was acquired by SS&C.

    .......

    Job Swaps 10 November 2016

  • APRA issues regulation responses

    The Australian Prudential Regulation Authority has responded to submissions to its November 2015 discussion paper on revising its prudential framework for securitisation (SCI 26 November 2015). It has also issued a final revised Prudential Standard APS 120 and is consulting on its draft revised Prudential Practice Guide APG 120.

    APRA has been working to update its regulatory framework to incorporate .......

    News Round-up 10 November 2016

  • Reporting conventions compared

    Moody's has published a study examining how auto ABS performance is reported the UK, German, Chinese and Australian markets. The agency notes that while central banks play a significant role in driving disclosure harmonisation in each of these markets with their specific reporting requirements, local peculiarities remain.

    "There are many commonalities characterising ABS transactions across these four jurisdictions, yet performance .......

    News Round-up 10 November 2016

  • KKR targets shipping loans

    Pillarstone, the platform set up by KKR to buy non-core and underperforming assets in Europe, seems set to take on underperforming shipping loans following the recruitment of former Frontline Management ceo Jens Martin Jensen. Indeed, the firm recently confirmed its involvement in a shipping-related securitisation.

    Underperforming loans in the shipping sector have skyrocketed since 2008, as shipping operators have been .......

    News 10 November 2016

  • Euro secondary stable

    The European securitisation secondary market remains stable despite wider market volatility.

    The continuation of the buying bias and positive tone seen in secondary ABS/MBS in recent weeks ensured all sectors remained insulated from the big moves seen in equities and broader credit yesterday. Consequently, spreads were unchanged on the day and have stayed the same into this morning's open.

    Inevitably .......

    SCIWire 10 November 2016

  • Six-year record for UK card ABS

    The three-month average rolling charge-off index for UK credit card ABS marked its steepest quarterly deterioration since August 2009, says Fitch. It increased from 2.6% in 2Q16 to 3.4% in 3Q16, largely driven by charge-offs reported by Penarth and Gracechurch.

    "The increase in Penarth's charge-offs simply reflects a return to the transaction's long-term band after the removal of 90-plus days .......

    News Round-up 9 November 2016

  • Spain consumer loan effect considered

    Spanish consumer lending volume is rising, notes Moody's, albeit from a modest base and with further growth prospects limited by external pressures. While unsecured consumer loans are riskier than other types of lending, the rating agency does not believe underwriting standards have loosened too far and therefore there should not be much of a negative effect on Spanish ABS.

    "Despite .......

    News Round-up 9 November 2016

  • Non-compliance hits UK SLABS

    Moody's has downgraded the ratings of three classes of Honours Series 2 and placed on review for downgrade two others, affecting £409.45m of securities. The action on this UK student loan ABS was prompted by the sharp increase in future costs associated with the non-compliance with applicable consumer credit legislation.

    Specifically, Moody's has downgraded the class B notes to Ba1 .......

    News Round-up 8 November 2016

  • Euro ABS/MBS distracted

    Activity in the European ABS/MBS secondary market continues to be light with participants focusing elsewhere.

    "Secondary is still relatively quiet," says one trader. "The market continues to be distracted by primary, where there are currently a couple of new issues that we're working on, and obviously events in the US are also taking some attention today."

    Nevertheless, the trader continues: .......

    SCIWire 8 November 2016

  • Information services chief appointed

    Ranjit Tinaikar has been named president of Fitch Information Services, effective 1 December. Based in New York, he will join the Fitch Group management team and report to Fitch Group president and ceo Paul Taylor.

    Prior to joining Fitch, Tinaikar worked for Thomson Reuters between 2012 and 2016 as md and global head of asset management, wealth management, investmentbanking and .......

    Job Swaps 4 November 2016

  • ABS impact investing highlighted

    Community Capital Management (CCM) has disclosed a number of new innovative financing opportunities within the ABS sector, in which it has participated for its clients. The firm says these types of investments demonstrate the transformation occurring in impact investing, specifically within fixed income, for various types of bonds with a positive social and environmental impact.

    Examples of the firm's recent .......

    News Round-up 4 November 2016

  • ACA achieves highest rating

    S&P has removed its double-A plus ratings cap on American Credit Acceptance (ACA) subprime auto loan ABS. The move means that the lender's latest transaction - the US$211m American Credit Acceptance Receivables Trust 2016-4 - is its first to achieve a triple-A rating on the senior class.

    S&P had previously assigned double-A ratings to ACA senior notes from July 2013 .......

    News Round-up 4 November 2016

  • ABS team poached

    KeyBanc, the corporate and investment arm of KeyCorp, has created a five-person ABS team to expand its fixed income sales and trading platform. Andy Yuder will head the team and is joined by Alan Staggers, Paul Richardson, Jon Markiewicz and Brian Switzer, all of whom join from BB&T Capital Markets.

    Yuder has 25 years' experience in ABS and was previously .......

    Job Swaps 3 November 2016

  • Bumper Chinese deal announced

    A Chinese auto loan ABS thought to be the largest to date has joined the pipeline. Silver Arrow China 2016-2 is Mercedes-Benz's second Chinese auto loan ABS of the year and is almost CNY2bn larger than its last offering.

    The new ABS has a €4.006bn A class provisionally rated Aa3 by Moody's, and CNY211m of subordinated notes which are unrated. .......

    News Round-up 3 November 2016

  • Converging approach?

    Current status of capital relief trades discussed

    Representatives from Chorus Capital, Citi and Clifford Chance recently discussed the current status of capital relief trades during a live webinar hosted by SCI (view the webinar here). This Q&A article highlights the main talking points from the session, including the impact of regulatory changes, the emergence of new assets and jurisdictions, and investor requirements. For a broader .......

    Talking Point 2 November 2016

  • Elliott to acquire Aeolus

    Elliott Management Corp has agreed in principle to acquire a controlling stake in Aeolus Capital Management (ACM) and its affiliates. The deal is expected to be finalised before the end of the year.

    ACM current shareholder and founder Peter Appel will retain substantial minority positions, along with his role as non-executive chairman of ACM. He comments: "This transaction has been .......

    Job Swaps 2 November 2016

  • Pricing solution enhanced

    FINCAD's F3 solution now offers coverage for structured fixed income securities - including RMBS, ABS, CMBS and CLOs - via integration with data analytics providers AD&Co and Intex. Buy-side firms can use F3 to accurately hedge exposure and perform scenario analysis across their entire multi-asset portfolio.

    Advantages of the service include precise hedging, accurate scenario analysis, consistent reporting and streamlined .......

    News Round-up 2 November 2016

  • ILS firm nabs risk vet

    RMS has hired Michael Steel as global head of solutions. He will also chair the company's Europe Leadership Council and provide overall regional leadership for the RMS London and Zurich offices.

    Steel has over 25 years' experience in risk and capital management in the insurance industry and, prior to RMS, was group chief risk officer at AXIS Capital. He also .......

    Job Swaps 2 November 2016

  • SLABS worries prompt downgrades

    A slew of Navient Solutions student loan ABS classes have been downgraded by Moody's as a result of concerns about tranches' ability to pay off by final maturity. The rating agency has downgraded 92 ratings, affirmed 34 and upgraded five across 49 FFELP student loan ABS sponsored or administered by Navient.

    Moody's says its downgrades are the result of analysis .......

    News Round-up 2 November 2016

  • Euro secondary patchy

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

    After a primarily quiet week last week, Friday saw a slight pick-up in volumes, which followed through into Monday in advance of month-end. However, activity across the board remains patchy and is further hampered by European public holidays this week and broader market volatility driven by negative headlines in .......

    SCIWire 2 November 2016
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