ABS

  • Secondary markets advisors sought

    ESMA has published a call for candidates to form a consultative working group (CWG) for its secondary markets standing committee (SMSC). The two-year term of the existing CWG will expire shortly.

    The CWG mainly advises and assists the SMSC on technical standards to be submitted to the European Commission and on guidelines, Q&As and other guidance in relation to relevant .......

    Job Swaps 5 July 2016

  • Big appetite

    ABS investors hungry for more deals

    While political developments on the other side of the Atlantic may have increased risk, US ABS still provides ample opportunities to invest. Gross ABS issuance is up to almost US$90bn for the year so far, as investor demand remains high.

    ABS spread widening in the immediate aftermath of the UK's EU referendum result was only modest and Wells Fargo structured .......

    News Analysis 5 July 2016

  • International expansion eyed

    Tikehau Capital has completed two share capital increases of €510m and signed up two new institutional investors as shareholders of its holding company. These transactions will provide the group with additional resources to develop its global strategy and accelerate its international expansion.

    Through a €94m capital increase, Tikehau Capital Advisors (TCA) has gained new shareholders Temasek and FFP (the listed .......

    Job Swaps 4 July 2016

  • UK sovereign-linked deals downgraded

    Fitch has downgraded 18 tranches, and placed another two on rating watch negative, from six transactions which are credit-linked or have significant direct credit exposure to the UK sovereign. The rating actions follow the downgrade of the country's long-term issuer default rating to double-A earlier this week.

    Annington Finance No.1 and Sceptre Funding No.1 rely entirely on rental payments from .......

    News Round-up 1 July 2016

  • ESMA reviews harmonisation issues

    ESMA has released a peer review which pinpoints areas for greater EU harmonisation among national securities regulators. The review notes that regulators are sufficiently resourced and have approved prospectuses within legal deadlines, but suggests further convergences would be beneficial.

    The review, covered between January 2013 and December 2014, found that prospectuses have been seen as often complex and difficult to .......

    News Round-up 1 July 2016

  • LatAm expansion inked

    DBRS has opened a new office in Mexico City as part of its ongoing global expansion program. The agency has named Salvador Cruz svp, country manager and head of business development for Mexico, and Luis Alvarez vp, global compliance officer and regulatory counsel for Mexico.

    Cruz began working at DBRS in early January 2016 and reports to Sean O'Connor, md, .......

    Job Swaps 1 July 2016

  • Cross-border ABS prepped

    Engenium Capital is in the market with a cross-border Mexican equipment ABS. Dubbed Engenium Capital Equipment Dollar Trust, the US$340.5m single-tranche deal is backed by a revolving pool of equipment leases and loans originated in Mexico with the notes denominated in US dollars.

    S&P has assigned a preliminary triple-B plus rating to the notes due in 2026. The collateral pool .......

    News Round-up 1 July 2016

  • Rating agency increases reach

    Scope Corporation is set to acquire FERI EuroRating Services, effective from the start of August. The firm intends to establish itself as the European alternative to the US rating agencies.

    Scope Group intends to spread its business across three areas under Scope Corporation. Scope Ratings will be responsible for all credit rating activities; Scope Analysis will be in charge of .......

    Job Swaps 30 June 2016

  • Acorn Re notes affirmed

    Fitch has affirmed Acorn Re Series 2015-1's US$300m class A notes at double-B. The rating agency believes the notes and indirect counterparties are performing as required and adds that there have been no reported early redemption notices or events of default, nor have there been any reported covered events within the risk period.

    The notes, which provide reinsurance protection to .......

    News Round-up 30 June 2016

  • Damage control

    Brexit hits European ABS recovery, capital markets reform

    The UK's vote to leave the EU has caused untold damage to the recovery of the European securitisation market. Not only will issuance volumes suffer, but reform of the European capital markets via the CMU has also been set back significantly - both of which could limit the role that securitisation can play in economic regeneration and the reshaping of .......

    News Analysis 30 June 2016

  • Reclassification challenges outlined

    A number of financial institutions have reclassified their structured finance books in accordance with IFRS 9, in order to carry out parallel runs in 2017. Although the formal implementation of IFRS 9 is not due until 2018, firms hope that the early implementation of infrastructure and audit trails may eliminate capital management and volatility of provisioning risks, which are more .......

    News 30 June 2016

  • Euro ABS/MBS normalising

    European ABS and MBS have been quick to shrug off Brexit worries, with activity building up again this week and more BWICs scheduled for today.

    "The market seems to be over the shock of last week. There was a drop on Friday morning but things started trading again on Tuesday and yesterday was pretty much back to normal," says one .......

    SCIWire 30 June 2016

  • Recruitment rocked

    Brexit compounding ABS hiring issues

    The recruitment outlook for structured finance took a potentially big blow when the UK decided to leave the EU last week in its referendum vote. With hiring activity already at a moribund pace this year, concerns about immigration limits and capital outflows are weighing further on human resources both in Europe and the US.

    The surprise Brexit result sent shockwaves .......

    News Analysis 30 June 2016

  • Settlement reinvestment options weighed

    Current holders of non-agency RMBS from 512 Countrywide deals have finally received almost US$8bn in cash payments, five years after the original settlement (SCI passim). As investors look to put the cash back to work, Morgan Stanley analysts believe other securitised products would make a natural destination for reinvestment.

    The Countrywide settlement covers breaches of certain representations and warranties as .......

    News 29 June 2016

  • Debut cell phone deal nears

    Fitch has assigned preliminary ratings to the first securitisation to be backed by cell phone contracts in the US. At the top of the capital structure, the US$1bn of class A notes in Verizon Owner Trust 2016-1 have been assigned an expected triple-A rating.

    The deal also comprises US$84.52m double-A rated class B notes and US$84.51m single-A class Cs. S&P is also expected .......

    News Round-up 29 June 2016

  • Solar value proposition discussed

    KBRA says that the phenomenal recent growth of distributed solar photovoltaic (PV) generation in the US is largely due to the increasing affordability of solar - with PV systems now priced at approximately US$3.5/watt, a reduction of more than 50% in the past five years - and solar developers offering creative financing mechanisms, such as power purchase agreements (PPAs) and .......

    News Round-up 29 June 2016

  • Energy expert picked up

    Crédit Agricole has appointed Gerard Vincitore as md in its structured finance advisory group for the Americas. He joins as part of the bank's larger corporate and investment banking arm, where he will head up advisory activities in the North American power and utilities sector and be involved in specific energy-related transactions in the Americas.

    Prior to joining the bank, .......

    Job Swaps 29 June 2016

  • Exchange offer launched

    Markit has commenced an offer to exchange any and all of the outstanding US$750m aggregate principal amount of 5.000% Senior Notes due 2022 issued by IHS for up to an aggregate principal amount of US$750m of new 5.000% Senior Notes due 2022 to be issued by Markit and cash. For each US$1,000 principal amount of existing IHS notes tendered, eligible .......

    Job Swaps 29 June 2016

  • SF upgrades keep momentum

    The global structured finance upgrade rate reached a record high in 2015, according to S&P. Although the downgrade rate was still higher at 11.2% last year, the upgrade rate increased to an all-time high of 9.8% in 2015 and a jump from 8.4% in 2014.

    Downgrades were up from 10% in 2014, but still presented a slow-down in growth for all but .......

    News Round-up 28 June 2016

  • Cross-border first for Korean ABS

    Hyundai Commercial has completed the first cross-border cash securitisation of auto loans to obligors in Korea. The US$250m Top Commercial Auto I ABS has two equally-sized tranches of floating rate notes, each rated Aaa by Moody's.

    The underlying pool only includes loans to purchase new commercial vehicles and the transaction benefits from several sources of credit enhancement, as well as .......

    News Round-up 28 June 2016

  • Madden uncertainty to continue

    The US Supreme Court has denied certiorari in the Madden vs Midland Funding case, electing not to review a Second Circuit decision that found state usury laws applied to debt that had been purchased from a national bank (SCI passim). The decision is expected to prolong the legal uncertainty related to the marketplace lending and securitisation industries.

    Other circuits are .......

    News Round-up 28 June 2016
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