ABS

  • GE balloon risk ups volatility

    Significant exposure to balloon loans across GE small-business loan ABS deals is unique among major sponsors in the sector. Balloon payments representing 38% of the current pool balances in transactions rated by Moody's are coming due, mainly within the next seven years.

    Performance volatility is increasing as a result of occasional balloon loan defaults at loan maturity. Balloon loan exposure .......

    News Round-up 29 March 2016

  • Japanese rating upgrades increase

    The upgrade rate for Japanese structured finance securities rose in 2015, notes S&P. S&P Japan raised 8.3% of its outstanding ratings on Japanese structured finance securities last year, up from 4.5% in 2014.

    The 2015 upgrade rate exceeded the downgrade rate of 4.5% and resulted in an upgrade-to-downgrade ratio of 186%, which also surpassed the 2014 ratio of 143%. Separately .......

    News Round-up 29 March 2016

  • Chinese ABS expansion 'to continue'

    China's securitisation market will continue to grow this year, albeit at a slower pace than in 2015, says Fitch. Issuance last year doubled to reach a record CNY600bn from more than 300 transactions.

    Market expansion will be driven by regulatory changes which have made it simpler and more efficient for financial institutions to issue structured finance securities. The rating agency .......

    News Round-up 29 March 2016

  • For-profit loan exposure eyed

    A pair of recent private student loan ABS - Navient Private Education Loan Trust 2015-B and 2016-A - include high concentrations of collateral tied to a single for-profit institution, according to Moody's. The agency says such exposure is credit negative for the transactions, due to the very high default rates of for-profit loans and the regulatory scrutiny facing for-profit institutions.

    News Round-up 24 March 2016

  • Credit Suisse exits European ABS

    Credit Suisse is pulling the plug on its European ABS presence as it revealed new details on its global restructuring plans. The bank confirmed that it will end operations in European securitised product trading, along with distressed credit and long-term illiquid funding.

    Capital allocation will also be reduced in a number of other areas, which it describes as 'not consistent' with its new strategy. .......

    Job Swaps 24 March 2016

  • Dutch covereds outstrip placed ABS

    A new study published by the Dutch central bank, DNB, shows that banks in the Netherlands had more covered bonds outstanding (at €61bn) than non-retained RMBS (€55bn) at end-2015. Further, non-retained securitisation volume has dropped from €94bn in 2007 to €55bn. In contrast, while covered bond supply has also declined, the amount of covered bonds outstanding has remained roughly stable.

    News Round-up 23 March 2016

  • Law firm poaches bank md

    Richards Kibbe & Orbe has recruited Vincent Basulto to join its New York office as a partner in its corporate department. He leaves his role as md of Macquarie Group's credit markets division and general counsel for one of the bank's investment advisors.

    Basulto's practice will focus on structured finance, debt transactions, marketplace lending, derivatives and other transaction work in connection with .......

    Job Swaps 23 March 2016

  • Euro secondary steady

    Activity in the European securitisation secondary market is steady rather than spectacular at present.

    Liquidity grows ever thinner as the long holiday weekend approaches and light, patchy flows continue to characterise the market. Yesterday's BWICs traded reasonably well for the most part, though the ABS/MBS lists yielded little colour. For now at least spreads across the board remain stable despite .......

    SCIWire 23 March 2016

  • Kane sells ILS business

    Artex Risk Solutions is set to acquire Kane's insurance management operations (KIM), with the deal expected to close by the end of the month. Artex says that the acquisition will strengthen its ILS capability in Cayman and Bermuda.

    KIM specialises in insurance and alternative risk solutions with expertise in the healthcare, insurance, financial services, transportation and construction industries. It specifically provides .......

    Job Swaps 22 March 2016

  • Further delay for Madden case?

    The US Supreme Court has asked for the views of the US solicitor general before deciding whether to hear an appeal from the Second Circuit Court of Appeals regarding the Madden vs Midland case. The move is likely to further delay a final decision in the Madden appeal.

    The solicitor general represents the federal government before the Supreme Court, which .......

    News Round-up 22 March 2016

  • Land of the few

    Marketplace ABS 'a long way away' for Europe

    Marketplace lending ABS is providing a new source of yield for investors - although, as a new and largely untested asset class, concerns remain. Activity in a number of jurisdictions is starting to grow, but securitisation is expected to remain largely confined to the US for the foreseeable future.

    "The US has the most developed marketplace lending market. China is .......

    News Analysis 22 March 2016

  • Data heavyweights merge

    IHS and Markit have agreed to a US$13bn merger, combining their information, analytics and solutions services into a single company. The completion of the merger will see the company renamed IHS Markit, which will be headquartered in London but have certain key operations in Englewood, Colorado.

    Details of the deal reveal that IHS shareholders will own approximately 57% of the .......

    Job Swaps 21 March 2016

  • Auto deals driving ABCP

    A recent surge in outstanding ABCP has been driven by increased auto issuance, according to S&P. However, the agency questions the durability of the sector's rally, suggesting that its growth has been overreliant on auto-related deals.

    The ABCP market has risen by 23% in issuance since September 2015, over three-fourths of which has come from auto securitisations. If growth continues on this recent trajectory, outstanding .......

    News Round-up 21 March 2016

  • Annual contracts pose risk to ABS

    The inclusion of annual pay contracts in equipment ABS increases the risk on the deals' short term notes, says Moody's. Structures that includes money market tranches often have a significant portion of such contracts, with agricultural-linked deals particularly exposed to them.

    Moody's believes the seasonality of these contracts could create volatility for equipment ABS. A concentration of the contracts in the few .......

    News Round-up 18 March 2016

  • Low APAC auto delinquencies predicted

    A combination of low interest rates and positive credit factors will keep APAC auto loan ABS delinquencies low in 2016, according to Moody's. Countries with high delinquencies, such as India, could also benefit from a significant drop.

    Moody's explains that the asset class will benefit from supportive economic backdrops in certain markets, low rates, strong loan and borrower characteristics, and diversified collateral pools .......

    News Round-up 18 March 2016

  • Euro secondary upswing

    The European securitisation secondary market is seeing an upswing in activity once again.

    Yesterday saw an uptick in activity after a quieter Wednesday, although focus remains very patchy. Peripherals fared well as did UK non-conforming, which began to reverse recent widening amid strong execution across the session's MBS BWICs. However, it was CLOs that once again led the way with .......

    SCIWire 18 March 2016

  • Marketplace lending carries unique risks

    Marketplace lending carries risks unique to the asset class, says Moody's. The rating agency makes the observation as interest in the sector continues to grow, and reinforces its previous analysis about the asset class.

    Moody's notes that marketplace lending platforms may underwrite the loans but do not have skin in the game as they do not bear actual borrower credit .......

    News Round-up 17 March 2016

  • UK ILS commitment reiterated

    In its 2016 Budget announcement yesterday, the UK Government reinforced its commitment to establishing a fully functioning ILS market within the country. The government says it is consulting on proposals for a new, competitive framework for the asset class, which would entail the supervision, corporate structure and taxation of ILS vehicles.

    The proposals for an ILS framework are presented in the .......

    News Round-up 17 March 2016

  • Euro secondary partly pauses

    The bulk of the European securitisation secondary market took a pause yesterday, but CLOs continue to outperform.

    "Yesterday was a bit quieter after the pick-up in activity that followed the ECB last week and into the start of this," says one trader. "BWICs have been the main focus but supply dropped as many people used the excuse of the FOMC .......

    SCIWire 17 March 2016

  • YSOC first for Chinese ABS

    Mercedes-Benz is bringing the first auto ABS deal to China to include a yield supplement overcollateralisation (YSOC) feature. The CNY2.5bn Silver Arrow China 2016-1 deal is also the car manufacturer's debut transaction in the Chinese market.

    The CNY2.37bn class A notes have been rated Aa3 by Moody's, while the CNY125m subordinated notes are unrated. All the notes in the deal have a legal maturity .......

    News Round-up 16 March 2016

  • Negative FFELP watches continue

    Fitch has maintained rating watch negative on 106 FFELP trusts as a result of concerns that tranches could miss legal final maturity dates. The scale of possible rating actions will depend on the remaining time to maturity, recent payments trends, issuer actions and external factors, with triple-A ratings possibly being lowered to non-investment grade.

    The rating agency has identified trusts .......

    News Round-up 16 March 2016
×