ABS

  • SLABS to see strong performance

    A major theme in the US private student loan market in 2017 will be the continued origination and securitisation of loans with strong credit quality from new marketplace lenders that specialise in the refinancing or consolidation of loans using online platforms, Moody's says. The agency notes that the credit quality of new private student loan ABS from traditional lenders will .......

    News Round-up 9 December 2016

  • Vertical retention upped

    The European Parliament's Economic and Monetary Affairs Committee (ECON) yesterday adopted the European Commission's securitisation package, with a number of amendments (SCI 8 December). Most significantly, risk retention requirements for vertical retention has been increased to 10%.

    Risk retention requirements for horizontal retention will remain at 5%. However, revolving transactions may become subject to 10% risk retention.

    Now that ECON .......

    News Round-up 9 December 2016

  • Equipment, card ABS 'to stay strong'

    Both US equipment and credit card ABS will remain strong in 2017, says Moody's. Issuance should be along the same lines as 2016 for equipment ABS, but should pick up for credit card ABS.

    New agriculture and construction transactions should look similar to those issued in 2016 in terms of structure and collateral credit quality. Strong farm balance sheets will .......

    News Round-up 8 December 2016

  • Private credit strategies targeted

    Eaton Partners has formed a distinct team that will work with and raise capital for unique private credit strategies globally. Targeted strategies include asset-backed and direct corporate lending, distressed debt, real estate credit and other specialty credit.

    The team will primarily focus on representing credit managers located in the US, Europe and Asia. The firm says the aim is to .......

    Job Swaps 8 December 2016

  • Brexit to affect auto ABS

    The UK's decision to leave the EU will impact UK auto ABS, although DBRS expects ratings to remain robust. The rating agency predicts a continued softening in demand for new vehicles, driven by uncertainty surrounding Brexit, which could have several implications.

    First, a reduction in demand for new cars could lead to customers holding their vehicles to the maturity of .......

    News Round-up 8 December 2016

  • Proposals 'counter to ABS revival'

    New European Parliament proposals do not go far enough to help revive securitisation in Europe, according to AFME. This follows a vote today by the Parliament on the simple, transparent securitisation (STS) framework.

    Richard Hopkin, head of fixed income at AFME, states that the association welcomes the fact that the European Parliament and Council have now endorsed the establishment of an STS .......

    News Round-up 8 December 2016

  • Pairing up

    ABS, bank partnerships to lift marketplace lending

    Marketplace lending and fintech will play an increasing role in the future of the securities market, according to US SEC chair Mary Jo White. Speaking at a recent SEC fintech seminar, White praised the benefits of innovative financial technologies, but outlined the need for relevant regulatory guidelines to protect investors and wider participants.

    White stated that "fintech innovations have the .......

    News Analysis 8 December 2016

  • Euro secondary keeps positive

    Tone across the European securitisation secondary market continues to be positive.

    After a quiet start to the week, yesterday saw a flurry of BWICs from a range of sectors driving activity, most of which were easily absorbed and traded in line with expectations. Consequently, the bulk of secondary spreads remain unmoved.

    Today sees more supply from a variety of sectors, .......

    SCIWire 8 December 2016

  • Wildfire affects timeshare ABS

    Westgate Resorts has reported damage at its Westgate Smoky Mountain Resort in Gatlinburg, Tennessee, following a wildfire that originated around 10 miles away in the Great Smoky Mountain National Park. DBRS notes that it currently rates five ABS transactions which contain collateral from the resort.

    The affected transactions are Westgate Resorts 2013-1, Westgate Resorts 2014-1, Westgate Resorts 2015-1, Westgate Resorts .......

    News Round-up 7 December 2016

  • Aircraft ABS programme planned

    Floreat Group is readying a securitisation programme focused on the aviation sector, with the aim of providing long-term fixed income investments for their institutional and high net-worth clients. The first issuance - of up to US$175m of notes - is planned for this month and will be backed by a portfolio of four Airbus A330s on leases to geographically diversified .......

    News Round-up 7 December 2016

  • Mortgage-linked ABS prepped

    The £292.4m Towd Point Mortgage Funding 2016-Granite 3 has hit the market. The transaction represents the term take-out of the warehouses that were put in place to finance the acquisition of the assets by Cerberus.

    The portfolio comprises 27,212 unsecured personal loans to borrowers in the UK, which were initially originated by Landmark Mortgages (formerly Northern Rock) under the 'Together' .......

    News Round-up 7 December 2016

  • Arrow names new chief

    Securitisation veteran Lee Rochford will replace Tom Drury as group ceo and board director of Arrow Global from 3 January 2017. Drury, who has decided to step down from the role after five years, will remain with the business until end-February to provide an orderly handover.

    Rochford was previously cfo of Virgin Money. Before that, he held senior securitisation and .......

    Job Swaps 7 December 2016

  • Precious metals ABS prepped

    Monex Deposit Company (MDC) is in the market with a rare public securitisation secured by precious metals. Dubbed Scala Funding Company Series 2016-1, the US$100m ABS is arranged by Piper Jaffray.

    The notes are backed by a pool of retail loans originated and serviced by Monex Credit Company (MCC), secured by cash, gold, silver, platinum and palladium. The transaction will .......

    News Round-up 6 December 2016

  • Arrow enters Italian market

    Arrow Global Group is entering the Italian market with the acquisition of Zenith Service. It will purchase the servicing business for €17m, subject to regulatory approval by the Bank of Italy.

    Zenith is a leading master servicer in the €168bn Italian structured finance market and also services salary assignment loans (CQS). As of June 2016, the estimated stock of the .......

    Job Swaps 6 December 2016

  • North American outlook 'stable'

    Stability will likely remain for structured finance ratings in the US and Canada next year, although some modest asset-level deterioration is likely as performance in many sectors has peaked, says Fitch. The rating agency adds that annualised net losses for subprime auto ABS could reach 12% in 2017, particularly for less established sub-prime issuers Fitch does not rate.

    The rating agency .......

    News Round-up 6 December 2016

  • 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
×