ABS

  • Mobile phone EIP ABS mooted

    As the business model of US wireless carriers moves to further embrace equipment instalment plans (EIPs), they become more likely to issue ABS, says Moody's. Verizon has publically stated its interest in securitisation and there is increased speculation that a deal could be on the cards.

    "We have actually been out there talking to rating agencies, we did a presentation .......

    News 5 May 2016

  • Argentina headwinds outlined

    Tighter economic policies implemented by Argentina's newly elected government could prove challenging to securitisations within the country, according to S&P. This adds to the agency's worries that inflation, higher interest rates and stricter underwriting standards could suppress both issuance and borrowing.

    A projected slowdown in GDP growth for Argentina is based on the government's new economic policies, with originators responding by .......

    News Round-up 4 May 2016

  • Kane platform rebranded

    Artex Risk Solutions has rebranded the insurance management operations it recently purchased from Kane under the new name of Artex SAC. The acquisition of the platform was made in late 1Q16 as part of Artex's drive to increase its ILS capabilities in Cayman and Bermuda (SCI 22 March). The platform was built as the vehicle for Kane's private ILS and catastrophe .......

    Job Swaps 4 May 2016

  • Card ABS near record levels

    US credit card ABS performance is still hovering close to record territory, according to Fitch's latest quarterly update for the sector. Charge-offs edged up from 2.52% to 2.65% in 1Q16, but still stayed below the 2.75% mark for the third consecutive quarter.

    Credit card delinquencies also began to normalise, with late pays rising slightly to 1.05% in 1Q16. However, this .......

    News Round-up 3 May 2016

  • Funding builds case for ABS

    LendInvest has secured a £40m warehouse financing facility from Macquarie Bank. An ABS issuance is understood to be in the works.

    This is the fourth bank funding line the real-estate marketplace lender has secured. LendInvest has now received a total of £230m in investments from UK and international institutions.

    "We look forward to working with the Macquarie team as we .......

    News Round-up 29 April 2016

  • Start-up adds ABS pro

    Financial technology start-up ZestFinance has appointed Steven Fernald as head of capital markets. He reports to ceo Douglas Merrill and will oversee new and existing capital markets relationships.

    Fernald was previously part of the student loan ABS group at Morgan Stanley. He has also worked at UBS.

    .......

    Job Swaps 28 April 2016

  • IMF warns China over NPLs

    The IMF has praised Chinese attempts to tackle its debt problem through new schemes that introduce NPLs to the market, but warns that a lack of careful design could prompt the rise of 'zombie' firms. The organisation therefore lays out a number of recommendations, including the need for a diversified pool of NPLs within any proposed securitisations.

    The response comes after recent moves .......

    News Round-up 27 April 2016

  • Accounting factor

    Fair value, MOA lead retention options

    Many US securitisation market participants are becoming bogged down in the numerous accounting considerations associated with the Dodd-Frank risk retention requirements. With less than eight months until the rules come into force, sponsors are weighing up the best options for consolidating the retained interest.

    RMBS risk retention rules became effective in the US in December 2015, but the remaining asset .......

    News Analysis 27 April 2016

  • Yirendai completes ABS issuance

    Chinese online consumer finance marketplace Yirendai has completed a CNY250m ABS issuance. Yirendai announced last month that it had facilitated a trust to securitise consumer loan products, with the first ABS expected to be listed for trading on the Shenzhen Stock Exchange within four weeks.

    "We are pleased to see the substantial progress of the ABS products issuance," says Ning Tang, .......

    News Round-up 27 April 2016

  • SFI website likely delayed

    ESMA says it has encountered a number of issues in its preparations for developing a website on the disclosure of structured finance instruments (SFI). The absence of a legal basis for its funding is one key barrier, which has left the regulator admitting that the website will not be ready for entities to start reporting by the 1 January 2017 deadline.

    The European Commission .......

    News Round-up 27 April 2016

  • Blade ABS hits rough patch

    Moody's has downgraded Blade Engine Securitization Series 2006-1 due to revised future income expectations. The A1 and A2 notes have both been downgraded from Ba3 to B3, while the B notes have been downgraded from B2 to Caa3.

    The rating agency has reduced its expectations for future income from the engine portfolio for several reasons, not least the fact that .......

    News Round-up 27 April 2016

  • London touted as cyber ILS hub

    The London ILS market is "perfectly positioned to become the global centre for cyber risk insurance", says BNY Mellon in a new report. The report recommends new laws to allow the incorporation of SPVs onshore within the London market to offer ILS sponsors and investors more choice and potentially allow new and emerging risks to be transferred to the capital .......

    News Round-up 27 April 2016

  • Euro secondary picks up

    The European securitisation secondary market saw an increase in activity yesterday to go with the improving tone of recent sessions.

    "After being quiet for the past few days flows picked up across the board yesterday," says one trader. "Volumes are still not huge, but we're now seeing a lot of enquiries from investors looking for paper."

    Notably, the trader adds: "That .......

    SCIWire 27 April 2016

  • Liquidity tops investor concerns

    While investor fears over China-related uncertainty have subsided, concerns regarding liquidity and central bank policies have grown, according to Morgan Stanley's latest global securitised products investor quarterly survey. Liquidity is the top concern for 21% of respondents.

    Central bank policies cause the most concern for 18% of investors while disappointing US economic growth is now the third greatest concern, at .......

    News 26 April 2016

  • South Korean issuance up again

    South Korean ABS issuance was up by 16.8% in 1Q16 from 1Q15, according to the country's Financial Supervisory Service. Issuance totalled Won13.4trn, which is a Won1.9trn increase from the Won11.5trn issuance figure a year earlier.

    A majority of the growth came from Won8.7trn in MBS issued by the Korea Housing Finance Corporation (KHFC). The increase was mostly because newly-issued MBS backed .......

    News Round-up 26 April 2016

  • Euro secondary steady

    The European securitisation secondary market continues to move steadily ahead.

    Tone continued to be positive across the board at the end of last week and into the start of this. However, lack of supply is still an issue and is causing sessions to be steady rather than spectacular.

    Nevertheless, many of the line items in for the bid are continuing .......

    SCIWire 26 April 2016

  • Warehouse financing weighed

    Smaller lenders, non-bank entities and challenger entrants are increasingly opting for securitised ABS and RMBS warehouse financing facilities to access greater flexibility relative to traditional securitisations or unsecured funding sources, says Moody's. Although warehousing has been in use since the 1990s, the extent to which such facilities are being used is more varied by jurisdiction and investor appetite.

    "In Europe, .......

    News Round-up 25 April 2016

  • Record Philippines deal prepped

    8990 Holdings has mandated China Bank Capital to arrange and underwrite a PHP5bn securitisation, which will make it the largest-ever deal from the Philippines. The deal will securitise receivables from 8990's property development subsidiaries.

    The transaction will also be the first purely private sector securitisation in the country. Under the proposal, 8990 will sell up to PHP5bn in contract-to-sell receivables through .......

    News Round-up 25 April 2016

  • Argentine deals upgraded

    Moody's recent decision to upgrade Argentina's sovereign rating has prompted it to consequently raise the ratings of a number of securitisations. Among those upgrades are several consumer loan, lease loan and vehicle loan deals, due in part to the reduced systemic risks for all local credits.

    The affected deals are: Ames V, Pvcred Serie XXII, Lucaioli XIV, Lucaioli XV, Supervielle Créditos 81, Bancor .......

    News Round-up 25 April 2016

  • Green Aussie ABS debuts

    FlexiGroup has brought the first ABS to the Australian market to include a green bond tranche. The A$260m Flexi ABS Trust 2016-1 deal is backed by a pool of Australian unsecured retail payments plans - described as 'no interest ever'.

    The transaction comprises eight tranches, with the senior class A1 notes taking up the largest chunk at A$91m. The green .......

    News Round-up 25 April 2016

  • China hurdles laid out

    Moody's says that the Chinese securitisation market could gain valuable traction once a number of hurdles are cleared. Barriers to the market's growth were at the centre of recent discussions between the agency and market players at the China Securitisation Forum in Beijing earlier this month.

    "China's economy is gradually transforming into one that is driven by consumption rather than exports," .......

    News Round-up 22 April 2016
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