ABS

  • 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

  • Brazilian CRA warning

    One of Brazil's two main ABS vehicles may present greater risks than another for investors, Fitch says. The agency warns that securitisation companies that issue agribusiness receivable certificates - known as CRAs - are not required to define collateral-performing balances or loss provisions in measuring available credit enhancement to investors and may face regulations in the near term.

    Brazilian ABS .......

    News Round-up 1 November 2016

  • APAC auto ABS report launched

    Moody's has launched the inaugural edition of its quarterly APAC auto ABS sector update. It is the second structured finance sector update published for the region by the rating agency, following the first China sector update published in September.

    The APAC auto sector update provides updates on the macroeconomic factors and regulations that affect the sector, as well as new .......

    News Round-up 1 November 2016

  • VW settlement ABS 'credit positive'

    Volkswagen has received final approval from a US federal court for a US$14.7bn settlement under which it will offer to buy back, terminate leases on, or repair around 475,000 vehicles affected by its diesel emissions scandal. Moody's believes this settlement is credit positive for the outstanding US auto lease ABS transaction issued by VW Credit as early lease terminations will .......

    News Round-up 1 November 2016

  • CARAT juniors rated

    Moody's has assigned ratings to the previously unrated class E notes of two Ally Financial auto loan ABS. The ratings are based on the quality of the underlying collateral, as well as expected performance, the strength of the capital structures and the experience and expertise of Ally as servicer.

    The affected transactions are Capital Auto Receivables Asset Trust 2014-3 (US$28m .......

    News Round-up 1 November 2016

  • Negative coupons 'widespread'

    Negative calculated coupons are now widespread among European securitisation tranches, according to S&P figures. The agency notes that the market last month joined a host of other fixed income asset classes with its first new issuance of tranches at a negative yield.

    "We estimate that calculated coupons are negative for 21% (or nearly €90bn) of the European ABS, CMBS and .......

    News Round-up 1 November 2016

  • Securitisation programme prepped

    Callidus Capital Corp is expected to close its new securitisation programme by 15 November. The transaction - comprising four investment grade debt tranches rated from triple-A to triple-B - will be sized at C$165m.

    The securitisation will allow the company to leverage its current loan portfolio by C$25m. Callidus will utilise the facility for growth purposes, given its commitment to .......

    News Round-up 31 October 2016

  • MOHE discrepancy highlighted

    Fitch has placed the Minnesota Office of Higher Education Supplemental Student Loan Program Revenue Bonds 2010 Series on rating watch negative, due to data inconsistencies in the servicer reports. The June 2015 servicer report showed a cumulative gross default value of US$1.96m and net defaults of US$1.37m, while the September 2015 report showed gross defaults of US$1.37m and net defaults .......

    News Round-up 31 October 2016

  • Indian supply nears high

    Indian securitisation volume has jumped to R45,000 crore in the first six months of the current fiscal year, rising from R17,000 crore in the first quarter. CRISIL Ratings consequently expects issuance to edge close to an all-time high of R1trn by year-end.

    Krishnan Sitaraman, senior director at CRISIL, cites the sharper focus of both public and private sector banks on .......

    News Round-up 28 October 2016

  • Debut aircraft ABS prepped

    The first securitisation of aircraft managed by Air Lease Corporation (ALC) has been assigned preliminary ratings by Kroll Bond Rating Agency. The US$800m Blackbird Capital Aircraft Lease Securitization 2016-1 deal is Blackbird Capital I's first term securitisation.

    The deal is split into three tranches, sized at US$200m, US$540m and US$60m. These have been preliminarily rated at double-A, single-A and triple-B.

    News Round-up 28 October 2016

  • Gas-alternative recoveries analysed

    Continued low gas prices have reduced Americans' appetite for hybrid-electric and all-electric vehicles. As a result, the share of gas-alternative vehicles in the collateral pools backing auto lease ABS has declined, according to Moody's.

    The agency reports that these trends are pushing recovery values, as well as residual value down for gas-alternative vehicles. "We expect these trends to continue because .......

    News Round-up 28 October 2016

  • Calypso cat bonds upgraded

    S&P has upgraded the Calypso Capital II class A and class B notes, following the advent of their final risk period and consequent lack of further resets. The ratings for the class A and B notes have been raised from double-B minus to double-B and from single-B plus to double-B minus respectively.

    The AXA sponsored notes from October 2013 no .......

    News Round-up 27 October 2016

  • Timeshare default repurchases climb

    Timeshare ABS default rates are rising and there is a growing trend of default repurchases and substitutions, although Wells Fargo analysts believe investors should be well protected. Borrowers are increasingly being advised not to make payments on their timeshare loans, which chimes with observations of weaker trends in consumer credit performance in other consumer ABS sectors.

    Default repurchases and substitutions .......

    News 27 October 2016

  • Euro ABS/MBS quiet

    This week has continued to be slow across the European ABS/MBS secondary market.

    "There's nothing going on," says one trader. "UK half-term means a lot of people are out this week and anyone who is here will be looking at primary where there are few interesting deals marketing."

    Secondary supply has been more limited than in recent weeks, the trader .......

    SCIWire 27 October 2016

  • Safe haven?

    Securitised sovereign bonds could bring economic stability

    A European bond comprised of securitised sovereign bonds from multiple European countries could help bring funding and economic stability to the eurozone. This is according to a group of leading economists, who have drafted a proposal for so-called European Safe Bonds, or ESBies.

    The proposal highlights that the euro area lacks a union-wide safe asset, the absence of which contributes .......

    News Analysis 26 October 2016

  • Landmark SME deals closed

    The EIB has disclosed its recent participation in two European SME securitisations - ROOF Leasing Austria Compartment 2016 and Sinepia (see SCI's new issue database). The former deal is the first public Austrian ABS in which the EIB Group has participated, while the latter benefits from support from the EU budget guarantee under the European Fund for Strategic .......

    News Round-up 25 October 2016

  • APAC ratings affirmed

    Fitch has affirmed the long-term ratings on 161 publicly-rated Asia-Pacific structured finance (SF) and structured credit (SC) tranches in 3Q16. The agency has also upgraded six bonds, placed one on rating watch negative and downgraded another.

    Four of the upgrades were to Australian SF transactions, resulting from better-than-expected performance in terms of losses, credit enhancement (CE) build-up and the availability .......

    News Round-up 25 October 2016

  • Utilisation drop hits container deals

    Two container ABS deals - BEACN 2012-1A and GCA 2013-1A - have been called so far this month, removing about US$300m of bonds from the market. Both of the transactions had experienced declines in average utilisation rate and average portfolio lease rate, which likely contributed to the issuers' decision to call them.

    KBRA recently noted that average utilisation in BEACN .......

    News 24 October 2016

  • Strategic relationship formed

    New Ocean Capital Management, together with its major shareholders XL Group and Stone Point Capital, has announced a newly formed strategic relationship with Mitsui. Mitsui has committed an initial US$100m of proprietary investment capital to New Ocean's private fund platform on a multi-year basis, and will endeavor to source additional capital by 2020.

    As part of this strategic transaction, Mitsui .......

    Job Swaps 24 October 2016

  • Ratings complaints prepped

    The US Department of Justice (DOJ) is preparing a civil complaint against Moody's in the US District Court for the District of New Jersey, alleging certain violations of the Financial Institutions Reform, Recovery and Enforcement Act in connection with ratings assigned to RMBS and CDOs in the period leading up to the 2008 financial crisis. Moody's disclosed in its Q3 .......

    Job Swaps 24 October 2016

  • Rights issues

    Tax lien ABS growing, but third-party servicers scarce

    The US tax lien ABS sector has grown steadily since 2014 in terms of both issuance and investor interest. While it provides several opportunities for investors, its growth could be hampered by unique challenges, in particular a lack of third-party servicers with sufficient operational capability.

    The expansion of tax lien ABS in the US has been most apparent in the .......

    News Analysis 24 October 2016
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