ABS

  • Structuring alpha

    Robert Allard, founding partner and ceo at Firebreak Capital, answers SCI's questions

    Q: How did Firebreak Capital become involved in the securitisation market?
    A:     Firebreak Capital is categorised as a private debt fund, but this means different things to different people. Our background is in structured products (including securitisation) and we're seeking to employ this skill-set across the private debt universe. A more appropriate label for the firm is a structured private debt .......

    The Structured Credit Interview 18 October 2016

  • Chinese deals add to ABS traffic

    Recent weeks have seen a flood of auto ABS deals announced (see SCI pipeline), but the trend is not constrained to the US and Europe, with Toyota now in the market with its first Chinese ABS of the year. It is the company's second Chinese deal overall and the first to be rated by Moody's.

    The CNY3bn Toyota .......

    News Round-up 18 October 2016

  • Model error disclosed

    Fitch has disclosed that interest payments to the class E and F notes of SCF Rahoituspalvelut I (Kimi 1) were incorrectly modelled in its initial rating analysis of the Finnish auto ABS as senior to clearing the implied principal deficiency ledger (PDL). Correct modelling would have resulted in different model-implied ratings for two classes: one notch higher for the class .......

    News Round-up 18 October 2016

  • Euro secondary patterns persist

    Trading patterns in the European securitisation secondary market seen towards the end of last week are continuing into this.

    The primary market remains the main focus, but flurries of BWICs continue to bolster secondary activity. A few DNTs aside, line items in all sectors and parts of the capital structure continue to trade well. Despite some skittishness in broader markets secondary .......

    SCIWire 18 October 2016

  • Cross-sector SLABS criteria finalised

    Moody's has published its new cross-sector methodology for rating student loan ABS backed by pools consisting of both FFELP and private student loans (PSLs). The agency subsequently took action on 21 tranches across 13 transactions, affecting approximately US$506.5m of securities.

    Moody's affirmed 13 tranches across seven transactions (accounting for US$266.5m), upgraded six tranches across five transactions (US$161.2m) and downgraded two .......

    News Round-up 17 October 2016

  • Scaling up

    Platforms eager to issue further marketplace ABS

    Funding Circle and Zopa intend to tap the securitisation market on a regular basis, following their debut transactions this year. Both platforms recently discussed their experiences issuing ABS at marketplace lending conference Lendit and expressed enthusiasm for pursuing the funding method further.

    Funding Circle issued its inaugural SBOLT deal in April, backed by SME loans originated through its online platform. .......

    News Analysis 14 October 2016

  • Senior management shuffled

    Clayton Euro Risk has announced a number of changes to its senior management team. Among those affected is Simon Collingridge, who takes on the newly-created role of client solutions and strategic delivery director.

    Collingridge has been a consultant with the firm since March, but now becomes a full-time member of staff, dividing his time between the Bristol and London offices. .......

    Job Swaps 14 October 2016

  • Indian ABS collateral 'improving'

    The underlying performance and asset quality of retail loans backing Indian ABS will improve over the next two years, according to Moody's. This is despite an uptick in NPLs, resulting from tightened recognition criteria.

    The new criteria will result in NPL ratios reported by non-bank financial companies (NBFCs) rising over the next two years, but the improving underlying performance will .......

    News Round-up 13 October 2016

  • Wireless spectrum deal prepped

    Sprint Corporation is in the market with a rare wireless spectrum securitisation. Dubbed Sprint Spectrum Securitization Series 2016-1, the US$3.5bn transaction features a three co-issuer structure intended to maintain the separate silos of license holders that exist prior to the transfer of the licenses to the issuers.

    The three issuers are Sprint Spectrum Co, Sprint Spectrum Co II and Sprint .......

    News Round-up 13 October 2016

  • Euro ABS/MBS active

    The European ABS/MBS secondary market is staying active this week.

    "The busy primary market is taking a lot of attention, but there's still a lot of activity in secondary," says one trader. "That activity mainly surrounds bid lists where we're seeing bonds from all sectors and up and down the capital structure. For the most part those lists are being .......

    SCIWire 13 October 2016

  • Conn's re-offers notes

    Conn's has entered into an agreement to sell the previously retained class C notes issued as part of its Conn's Receivables Funding 2016-A consumer ABS from March (see SCI's new issue database). The face amount of the class C notes is approximately US$70.5m and Conn's will receive upfront proceeds of around US$71.5m, net of transaction costs.

    The notes .......

    News Round-up 12 October 2016

  • Excess baggage

    Reg AB 2 loan-level disclosures weighed

    Loan-level disclosure requirements under Regulation AB 2 are expected to have a limited impact on ABS issuers and investors when they come into effect on 23 November. While the rules aim to boost deal transparency, scepticism prevails about the value they will bring.

    There has been much speculation about the preparedness of market participants in terms of providing and handling .......

    News Analysis 12 October 2016

  • Law firm poaches ILS pro

    Dentons has hired John Sarchio as partner in its insurance regulatory practice. He will advise on insurance industry mergers, acquisitions and financings, reinsurance transactions, self-insurance and captive programmes and insurance regulatory consulting and compliance.

    Sarchio has a range of experience, including insurance securitisations, catastrophe bond transactions and other insurance-linked securities transactions, and has previously counseled state and foreign governments on .......

    Job Swaps 11 October 2016

  • Chinese slowdown APAC's 'biggest issue'

    The slowing Chinese economy is the major issue for the Asia Pacific securitisation and covered bond markets in the next 6-12 months, according to Moody's. The agency's comments are based on the responses from a survey undertaken at its recent Asia Pacific Structured Finance Conference in Singapore.

    The other major factors cited by respondents were the outcome of the US elections in .......

    News Round-up 11 October 2016

  • European issuance tracked

    €40.2bn of securitised product was issued in Europe in 3Q16, according to AFME's latest data snapshot of the sector - a decrease of 46.4% from 2Q16 (€75bn) and 30.2% from 3Q15 (€57.6bn). Of this, €16bn was placed (representing 39.8%), compared to €29.3bn placed in 2Q16 (representing 39.1% of €75bn) and €18.6bn placed in 3Q15 (32.3% of €57.6bn).

    UK RMBS led .......

    News Round-up 11 October 2016

  • Securitisation revival supported

    The European Parliament is due to discuss proposed amendments to the draft regulation for simple, transparent and standardised (STS) securitisation today. Ahead of this exchange, eight European trade associations have released a paper highlighting the importance of securitisation for jobs and growth in Europe and underlining their commitment to supporting a safe and sustainable market that serves the real economy.

    News Round-up 11 October 2016

  • Euro secondary solid

    The European securitisation secondary market remains solid in the face of strong supply.

    Yesterday was relatively slow thanks to the US public holiday, but last week was busy up until with Friday's close as BWICs across ABS/MBS and CLOs continued to emerge as investors sought to make room for the current hefty amount of new issuance. With much of the .......

    SCIWire 11 October 2016

  • VALET exposure eyed

    Fitch has affirmed its ratings on and maintained stable outlooks for Volkswagen Auto Loan Enhanced Trust series 2014-2, 2014-1, 2013-2 and 2013-1, as the transactions continue to perform within its cumulative net loss expectations. However, the agency warns that there are large exposures to the vehicles affected by the VW emissions scandal in each pool, which could have a significant .......

    News Round-up 7 October 2016

  • What's in a name?

    Classification confusion constraining MPL ABS

    Uncertainty over how to define marketplace loans - as securities or whole loans - is restricting securitisation of the assets. However, the US SEC could be considering classifying marketplace loans as securities, signalled by the announcement of its upcoming fintech forum.

    Unresolved regulatory issues continue to plague the marketplace loan sector, with issues over true lender status and the Madden .......

    News Analysis 7 October 2016

  • Endurance acquisition announced

    SOMPO has announced a US$6.3bn acquisition of Endurance, the owner of ILS fund manager Blue Capital Management. The agreement involves a 100% acquisition of the outstanding ordinary shares of Endurance by SOMPO for US$93 per share.

    The deal has been approved by the board of directors of Endurance and is subject to Endurance shareholder approval at a shareholders' meeting. It .......

    Job Swaps 6 October 2016

  • ASF adds policy pro

    Robert Gallimore is set to join the Australian Securitisation Forum in the role of policy executive. His responsibilities will include working with ASF members on developing policy positions, as well as other member engagement matters.

    Most recently, Gallimore was a director - primary markets at RBS, and before that held the role of senior corporate counsel at ABN AMRO. He .......

    Job Swaps 6 October 2016
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