ABS

  • 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

  • Quant leader appointed

    Marketplace lending analytics provider PeerIQ has hired Wilfred Daye as md, quantitative strategies. He will head the firm's quant team and be based in New York.

    Daye spent the last six years at UBS, covering numerous securitised asset classes, including marketplace lending ABS. He brings diverse experience on the buy-side and the sell-side, having also spent time at Deutsche Bank, DB .......

    Job Swaps 16 March 2016

  • Euro secondary mixed

    The European securitisation secondary market is seeing mixed activity and results as the wider credit rally runs out of steam.

    "Overall, the secondary market continues to normalise, but it is highly sector-dependant," says one trader. "Yesterday was active, but that was mainly off the back of BWICs, while customer flows were slower thanks to softening in wider credit."

    Those BWICs yielded mixed .......

    SCIWire 16 March 2016

  • Solar ABS breaking out

    US solar securitisation is set to become a mainstream financing option in the ABS market in 2016 and will achieve new issuance records, according to a new white paper by Marathon Capital. This year has already seen a total of US$235m in deals, exceeding the US$234m that hit the market in the entirety of 2015.

    Last year saw a first for .......

    News Round-up 15 March 2016

  • ECB suggests regulatory tweaks

    The ECB has suggested changes to the new securitisation package proposed by the European Commission and adopted by the European Council in December. The package contains the new overarching European securitisation regulation - including STS - as well as the CRR amendment that sets banks' risk weights to securitisation exposures.

    On the topic of supervision, Rabobank credit analysts note it .......

    News Round-up 15 March 2016

  • Final curtain?

    FRTB to constrict liquidity, trading

    The Basel Committee's finalised fundamental review of the trading book (FRTB) marks another milestone in regulators' long and conflicted relationship with securitisation. While the final draft is less punitive than early versions suggested it might be (SCI 15 January), it is still set to limit market liquidity and trading activity.

    "The final version of the FRTB has provided extra clarity .......

    News Analysis 15 March 2016

  • Indian distressed opportunities targeted

    The Canada Pension Plan Investment Board (CPPIB) and Kotak Mahindra Group have signed an agreement to invest in stressed assets in India. The agreement allows for a total investment of up to US$525m, with CPPIB able to invest up to US$450m.

    The flexible investment mandate seeks to take advantage of the growing opportunity arising from the current stress in the Indian banking .......

    News Round-up 15 March 2016

  • ABS bound

    European marketplace lending to see securitisation stimulus

    KPMG and Cambridge University's alternative finance centre both agree that securitisation will play a vital role in the continuing growth of marketplace lending. The bodies recently partnered on a report that highlights the growth seen to date in marketplace lending in the UK and Europe.

    Sarah Walker, UK lead of alternative finance at KPMG, believes that securitisation will feature in .......

    News Analysis 15 March 2016

  • Italian SPV rules amended

    The Bank of Italy has updated its supervisory instructions for banks and financial intermediaries concerning loans granted by securitisation vehicles. There are now six key requirements.

    First, borrowers must be selected by a bank or financial intermediary registered under article 106 of the Italian Banking Act. The securities issued are reserved for qualified investors only, and the bank or intermediary must .......

    News Round-up 14 March 2016

  • Spanish electricity debt falling

    The fall in Spanish electricity tariff deficit (ETD) debt suggests that more sustainable levels could be reached by 2018 and 2019, says Moody's. Outstanding ETD debt was cut by 7% to €26.9bn in 2014 from €28.8bn in 2013.

    "Cumulative electricity tariff debt could fall below 100% of regulated revenues by 2019," says Antonio Tena, a Moody's avp and analyst. "The .......

    News Round-up 14 March 2016

  • Credit duo to lead Euro expansion

    Waterfall Asset Management has recruited James Cuby and Henrik Malmer in order to set up a London office for the firm. The pair will act as co-heads of the office, tasked with expanding Waterfall's structured credit and direct lending business in the European market.

    Cuby and Malmer spent the last ten years at Investec Bank, where they established and ran .......

    Job Swaps 14 March 2016

  • Euro secondary sluggish

    Despite last week ending strongly in wider credit the European securitisation secondary market remains sluggish.

    Market sentiment continues to be increasingly positive and there are selective buyers in evidence, but for the most part flows and BWIC supply are patchy and liquidity is thin as investors look likely to stay on the sidelines until the wider credit rally has been .......

    SCIWire 14 March 2016

  • Mitigating factors for revolving structure

    Rongteng 2016-1 Retail Auto Mortgage Loan Securitization is originator SAIC-GMAC's first Chinese auto ABS to feature a revolving structure and the second such deal to be issued in China's interbank market, says Moody's. The transaction was issued last month (see SCI's new issuance database).

    The revolving structure allows new loans to be added to the securitised pool after .......

    News Round-up 11 March 2016

  • PACE provider drives growth

    PACE financing provider Ygrene Energy Fund has raised US$30m in operating capital, led by new and existing investors. The firm is set to expand into Georgia, Arkansas, Missouri and Virginia.

    The latest investment brings the Ygrene's total operating and project capital raised to over US$530m. The operating capital will fund the firm's expansion of its YgreneWorks programme, including business and .......

    Job Swaps 11 March 2016

  • ECB looks to provide boost

    A new set of measures announced by the ECB could boost ABS supply. The central bank is launching a second TLTRO programme, expanding QE and cutting rates.

    The ECB's deposit rate has been cut by 10bp to -0.4%. Its main refinancing rate has been cut by 5bp to zero.

    The TLTRO 2 programme will - in contrast to the first TLTRO .......

    News 11 March 2016

  • Container ABS to weather conditions

    Slowing global trade is a concerning development for shipping container ABS. However, Morningstar Credit Ratings believes certain features and market trends should allay ABS investor concerns.

    Global trade is stalling. At 6.9%, Chinese GDP growth last year was the slowest in decades. Meanwhile, the World Trade Organization last September revised down its estimate for world trade growth in 2016 from .......

    News Round-up 10 March 2016

  • Italian tax exemption boosts market

    An Italian law decree introducing a flat tax on auction properties is credit positive for RMBS, ABS and covered bonds of secured loans to SMEs, says Moody's. The stamp duty exemption should attract a larger number of potential buyers, with a particular increase in short-term investors' appetite for auction properties.

    Moody's expects that real estate-owned companies and other asset managers, .......

    News Round-up 10 March 2016

  • Fee waivers introduced

    TICC Capital Corp, in consultation with its special committee, has agreed to a series of ongoing waivers with respect to its management fee and income incentive fee. The move follows a comprehensive process led by the special committee, including a detailed analysis of best-in-class practices in the industry, conducted with the assistance of the firm's financial advisor Morgan Stanley.

    Under .......

    Job Swaps 10 March 2016

  • Further FFELP bonds extended

    Navient has extended the legal final maturity date to 2055 on the senior tranche of SLC Student Loan Trust 2009-1, affecting US$150m of ABS bonds backed by federally guaranteed student loans. The move follows the amendment of transaction agreements for two other Navient-sponsored securitisation trusts last month.

    These amendments extended the legal final maturity date to 2045 on the senior .......

    News Round-up 10 March 2016

  • ILW platform bolstered

    Stefano Nicolini has joined Beach & Associates as a vp and will be aid in the development of the firm's ILW and retro platforms globally. He will be based in its New York office, but work closely with the Bermuda and London teams. Nicolini was previously an ILW-focused broker at BMS Group and has also worked at Guy Carpenter and .......

    Job Swaps 10 March 2016

  • SIV lawsuit concluded

    The California Public Employees' Retirement System has settled its case against Moody's for a record US$130m. The lawsuit alleged that Moody's assigned erroneous Aaa ratings to SIVs prior to the financial crisis.

    CalPERS sued Moody's and other rating agencies in 2009 after its pension fund sustained losses from investments in three SIVs that relied on the liquidity of assets that .......

    Job Swaps 10 March 2016
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