ABS

  • Negative coupon impact examined

    About 190 rated European RMBS and ABS tranches had coupons at negative levels, as of 1Q16, Moody's reports. Almost half of these tranches are concentrated in Spain, while RMBS accounts for 80% of them.

    Moody's estimates that by year-end, the number of rated RMBS and ABS tranches with negative coupons may increase to about 550 tranches. "The immediate impact has .......

    News Round-up 21 July 2016

  • PACE insurance gets green light

    The US FHA says it will now insure mortgages on certain properties that are subject to PACE assessments. The move is a boon to this growing sector of the US ABS market, which has already hit the billion dollar mark through a number of new deals this year (SCI passim).

    Under new guidelines, the FHA has agreed to approve purchase and .......

    News Round-up 21 July 2016

  • Volume growing

    ABS issuance heading up Down Under

    Australian primary ABS issuance has climbed steadily since 2008 - with a brief dip in 2012, when banks favoured covered bond issuance - and despite a slow start to 2016, this year is also expected to yield a healthy total. Full-year volume is predicted to reach A$20bn, with even more issuance likely in the future as the regulatory environment settles .......

    News Analysis 21 July 2016

  • Euro secondary firm

    Spreads across the European securitisation secondary market are remaining firm.

    Wider market positivity is feeding in to European ABS/MBS and generating improving market sentiment. While activity remains sporadic with volumes varying significantly from session to session spreads are flat to slightly tighter across the board this week so far.

    In CLOs, limited supply is continuing to support spreads across the .......

    SCIWire 21 July 2016

  • ILS lawyer joins Chicago office

    Drinker Biddle & Reath has appointed a new member to its corporate and securities group. The law firm has added structured insurance specialist Jay Kallas to its Chicago office.

    Kallas has more than 15 years of experience and was most recently corporate counsel for Allstate in its investments and business transactions department. While at Allstate, one of his key areas .......

    Job Swaps 20 July 2016

  • Commercial ABS team boosted

    KBRA has hired Xilun Chen to the role of senior director within its commercial ABS group, reporting to Anthony Nocera, md and head of Commercial ABS. Chen's focus will include contributions to the rating of whole business securitisations, aviation, container, PACE, solar and other transportation leasing assets. 

    Chen joins from S&P, where he focused on various esoteric ABS assets. Prior .......

    Job Swaps 20 July 2016

  • Fragile China

    NPL deals expose country's wider debt issues

    Non-performing loan securitisations ended an eight-year hiatus in China in late May when Bank of China (BOC) and China Merchants Bank (CMB) both issued new deals. Both transactions have been deemed a success by market participants, but also highlight profound, underlying fears around the economy's exposure to poor quality loans.

    Chinese authorities have this year amped up their push towards .......

    News Analysis 19 July 2016

  • Alternative investment firm reshuffles

    Kayne Anderson Capital Advisors has appointed Mike Levitt as ceo, effective immediately. It has also promoted Bob Sinnott from president and ceo to co-chairman, alongside founder Ric Kayne.

    Levitt will be based in Los Angeles and will join Sinnott and Kayne as part of the firm's executive management team. He was previously at Apollo Credit Management and founded alternative investment .......

    Job Swaps 19 July 2016

  • Counterparty criteria updated

    Fitch has revised its counterparty criteria for structured finance and covered bonds. The agency says that the changes will have a positive rating impact on up to 10 tranches across nine structured finance transactions globally and a negative impact on one tranche of an Australian ABS transaction. Two covered bond programmes could also potentially be positively impacted by the changes.

    .......

    News Round-up 19 July 2016

  • Sales and trading head tapped

    Mizuho Americas has brought in Thomas Hartnett as senior md and head of fixed income sales and trading. In this role, Hartnett will lead Mizuho's US execution and distribution capabilities for clients across all fixed income asset classes, including securitised products, high yield credit, investment grade and emerging markets.

    He will also be tasked with driving product initiatives deemed critical to .......

    Job Swaps 19 July 2016

  • CDQ development

    Originator consolidation to drive issuance up?

    The €1.47bn Towers CQ transaction, which closed last month, is the first Italian salary assignment loan ABS to be publicly placed in over a year. However, originator consolidation could spur increased volumes in the sector going forward.

    The Cessione del Quinto (CDQ)/Delegazione di Pagamento (DP) business was historically considered 'street' lending and run outside of banks. But, through the intervention .......

    News Analysis 18 July 2016

  • Weighing it up

    European ABS offerings, future in the balance

    The European secondary ABS value proposition is changing. Increasingly, credit is not investors' primary concern as relative value considerations come to the fore, while potential future developments continue to weigh on traders' minds.

    "The market is moving to an investor base that cares much more about relative value, in which case, investors must take a holistic view across asset classes .......

    News Analysis 18 July 2016

  • Foreign demand to drive Indian ABS

    Recent growth in the Indian securitisation market is primarily driven by the Reserve Bank of India's (RBI) policy of priority sector lending, according to S&P. Foreign banks' demand for pass-through certificate (PTC) securitisations is, in turn, partly due to their need to meet new priority sector lending targets. As the country's securitisation market builds a reputation and develops a history .......

    News Round-up 18 July 2016

  • Investment chief replaced

    Peter Schmidt-Fellner is retiring as cio and a director of NewStar Financial, but will remain involved with the firm as an external advisor to its investment committee and risk policy committee. He was a founding member of the firm and has held the role of cio since NewStar's inception in 2004. The board will be reduced in size by one .......

    Job Swaps 18 July 2016

  • Risk expert tapped

    Andrew Davidson & Co has recruited Richard Cooperstein to lead its risk model management. The firm says it will look to utilise his background in developing and implementing investment strategies for structured credit risk, mortgage insurance, financial guarantees and servicing rights with credit risk content.

    Cooperstein was previously treasurer and vp of pricing and asset acquisitions at Ocwen Mortgage Servicing. .......

    Job Swaps 15 July 2016

  • MPL ABS ratings confirmed

    Moody's has confirmed its rating of Ba3 on the class C notes issued by the Prosper-loan backed Citi Held for Asset Issuance (CHAI) 2015-PM1, 2015-PM2 and 2015-PM3 ABS deals. The rating agency had placed the notes on review for downgrade earlier this year due to concerns over an up-tick in delinquencies.

    Moody's has based its rating confirmations on the view .......

    News Round-up 15 July 2016

  • Debt, syndicate teams reshuffled

    CaixaBank has appointed Ainhoa Landa to head its debt capital markets business as part of a broader reorganisation of its debt and syndicate operations. Landa was formerly head of structured bonds syndicate, which will now be taken on by Lorenz Altenburg.

    Landa's appointment sees her replace Maria Castro, who has moved on to lead CaixaBank's funding team. In their new roles, Landa will .......

    Job Swaps 15 July 2016

  • Ownership change lifts ABS ratings

    Fitch has upgraded the Bosphorus Series 2015-A, 2015-B, 2015-C and 2015-D notes, as well as the Bosphorus Series 2012-B, 2012-C and 2012-D notes from triple-B plus to single-A minus. The upgrades are a result of originator Finansbank's ownership change.

    The Bosphorus transactions securitise diversified payment rights. These are payment orders processed by banks which can arise for a variety of .......

    News Round-up 14 July 2016

  • Foreign aid ILS mooted

    London Market Group (LMG) has launched a white paper on an ILS solution for catastrophes in under-insured markets. It says the creation of a Foreign Aid catastrophe Bond (FAB) could provide a more cost-effective approach to catastrophe relief.

    "The idea behind the FAB is a joint initiative between the [UK] government and LMG to provide a cost-effective response to catastrophes .......

    News Round-up 14 July 2016

  • SME joint initiative launches

    The European Investment Fund has teamed up with several national promotional institutions to launch the EIF-NPI Securitisation Initiative (ENSI). The initiative is a risk-sharing platform aimed at providing more funding to European SMEs via the capital markets.

    The ENSI partner institutions alongside the EIF are KfW, bpifrance, CDP, Malta Development Bank Working Group, IFD, ICO and BBB. The EIF says .......

    News Round-up 14 July 2016

  • Euro secondary stays light

    Flows in the European securitisation secondary market continue to be light though sentiment remains positive.

    "It's been pretty quiet in general with little end-user activity and BWICs few and far between," says one trader. "However, everyone for choice is still a better buyer and looking for assets."

    The trader continues: "As with wider credit the tone across ABS/MBS is strong. .......

    SCIWire 14 July 2016
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