ABS

  • 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

  • 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
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