ABS

  • Euro secondary on the up

    Activity and pricing levels are on the up in some sectors of the European securitisation secondary market.

    Growing positivity in broader markets yesterday helped to stimulate activity across a wider range of ABS/MBS sectors than seen in recent days. Prime assets remain the main focus, with autos and Dutch RMBS, especially STORM paper, being the biggest beneficiaries of buying interest .......

    SCIWire 27 January 2016

  • Retention return?

    Retained issuance revival surprises market

    Retained issuance volume in Europe was 63% lower in 2015 than it had been in 2014, but this decline was turned on its head in the final months of last year. Such a reversal came as something of a surprise and could signal a long-term change of direction for the market, or be forgotten by February.

    Bank of America Merrill .......

    News Analysis 27 January 2016

  • Private asset head hired

    Nicholas Bamber has joined Legal & General Investment Management (LGIM) in the newly created role of head of private assets, reporting to LGIM head of investment Aaron Meder. Bamber arrives from RBS, where he headed the bank's corporate coverage in the UK.

    According to Meder, Bamber will focus initially on European private placements, but look to build a global business across currencies .......

    Job Swaps 26 January 2016

  • Eurotunnel refi expected

    Eurotunnel has reported strong revenue growth, increasing the likelihood that it will refinance its Channel Link Enterprises Finance (CLEF) A3 and A4 bonds before year-end. The deal's euro liquidity notes appear particularly attractive.

    Eurotunnel experienced revenue growth across all of its business segments last year. Shuttle services growth was 10%, railway networks growth was 5% and Europorte growth was 15%.

    News 26 January 2016

  • China debuts finance leasing ABS

    The first Chinese ABS that involves finance leasing of used automobiles has hit the market. The transaction was issued last week by social networking internet platform Renren and will be traded on the Shanghai Stock Exchange.

    The CNY299.8m deal is broken down into three tranches, with the triple-A piece comprising 68% of the total issued, while the double-A tranche consists of a .......

    News Round-up 26 January 2016

  • Euro secondary similar

    Patterns in the European securitisation secondary market remain similar despite the continuing volatility in wider markets.

    "It's still pretty quiet and trends are pretty much the same," says one trader. "Broader markets are down again this morning, but little has changed in our space."

    The trader continues: "The senior prime sector is still fine and continues to grind tighter. Meanwhile, there .......

    SCIWire 26 January 2016

  • Indian ABS delinquencies stabilise

    The build-up in delinquencies for Indian ABS transactions that closed in 2015 was slower than for those that closed in 2014, as overall delinquencies stabilise. Delinquencies for transactions issued in 2013 and 2014 fell last year, with Fitch noting that the country's economy remains resilient and has rebounded from the slow growth seen in 2014.

    Fitch expects national requirements that banks maintain .......

    News Round-up 25 January 2016

  • RCI residual value risk weighed

    Auto loan ABS sponsored by Renault's captive finance company RCI Banque are not directly exposed to the market value of Renault vehicles, according to Moody's. Although RCI Banque's dealer floorplan ABS is more closely linked to the manufacturer's creditworthiness, the transaction benefits from a payment rate trigger to mitigate its exposure.

    "RCI Banque's auto loan ABS are only indirectly exposed .......

    News Round-up 25 January 2016

  • PREPA deal collapses

    The deadline for an agreement on PREPA's US$8bn debt restructuring deal was missed, following a breakdown in talks between the utility and its Ad Hoc Group of bondholders. PREPA alleges that the bondholder group was seeking to impose changes on the restructuring agreement (RSA) that it had already rejected in December.

    The deadline had been moved numerous times as the utility struggled to agree .......

    News Round-up 25 January 2016

  • Euro secondary strengthens

    Tone in the European securitisation secondary market continued to strengthen into the last week's close on the back of positive wider markets.

    Once again, senior prime assets were the main focus on Friday, albeit with patchy and thin flows on- and off-BWIC. Secondary spreads in autos and UK RMBS held steady, but Dutch RMBS edged a little wider following the .......

    SCIWire 25 January 2016

  • STS securitisation supported

    The European Economic and Social Committee (EESC) has added its voice to calls for the introduction of a simple, transparent and standardised (STS) securitisation regime in Europe. It says securitisation can still be a secure system and can create growth through the unlocking of additional credit.

    "The risks involved in such transactions should now be clearly understood and responsibilities well .......

    News Round-up 22 January 2016

  • Euro secondary improves

    Better wider markets have improved European securitisation secondary tone once more.

    A combination of a return to form in stocks/broader credit, the ECB press conference and the successful execution of the Spanish OWIC boosted the secondary market across the board yesterday and that has continued into this morning. Nevertheless, it is only the prime and ECB-eligible peripheral sectors that are .......

    SCIWire 22 January 2016

  • Marketplace ABS guidelines provided

    Marketplace loans are "the most exciting securitisation asset class to emerge since credit cards and student loans," says K&L Gates. The law firm has drawn up a report with 10 guidelines which market participants should keep in mind.

    First, the report notes that it is important to be aware of how marketplace loan securitisations can differ from other ABS. One .......

    News Round-up 21 January 2016

  • EBA consults on 'implicit support'

    The EBA has launched a consultation regarding its guidelines on implicit support for securitisation transactions. The guidelines were drafted to provide clarity on what constitutes 'arm's length conditions' and when a transaction is not structured to provide support for securitisations.

    The capital requirements regulation (CRR) foresees restrictions on implicit support to securitisations due to significant supervisory concerns and the belief .......

    News Round-up 21 January 2016

  • Euro ABS/MBS turns

    After two weeks of insulation from broader market volatility the positive tone in the European ABS/MBS secondary market has turned.

    "It's become challenging, to put it mildly, now that macro volatility is impacting our space and drying up liquidity," says one trader. "The last two sessions have been risk off and I don't see that changing today with most investors .......

    SCIWire 21 January 2016

  • ILS portfolio manager tapped

    Butch Agnew has been brought in by Tokio Solution Management as vp, ILS portfolio management. He moves from Dyna Management Services, where he was also vp, and has previously held other senior roles at AQR RE Management, Aon Risk Solutions and ATB Financial.

    .......

    Job Swaps 20 January 2016

  • ILS market hits milestone

    The ILS market reached a new height for issuance in 2015, hitting US$70bn and exceeding the previous record of US$65bn in 2014. The figures come from a new report by Willis Capital Markets & Advisory (WCMA), which says that reinsurer interest and investor confidence continued to grow last year as new products and perils were brought to the table.

    In particular, .......

    News Round-up 20 January 2016

  • Euro secondary story unchanged

    Yesterday's improvement in broader markets did not change the story in the European securitisation secondary market and this morning's macro weakness is likely to keep it that way.

    "Yesterday things were a bit better overall and credit indices came in some way," says one trader. "However, little changed in our sector."

    Instead, recent trends continue, the trader says. "Senior prime .......

    SCIWire 20 January 2016

  • Prime auto LTV losses compared

    Pools of prime US auto loans with high LTV ratios perform more than three times worse on a cumulative net loss (CNL) basis than those with low LTVs, Moody's reports. Average LTVs in auto loan ABS deals issued since 2010 have been generally low too, but losses could rise as competition in the auto lending industry increases and props up the .......

    News Round-up 19 January 2016

  • Alignment of interest

    Marketplace lending regulatory scrutiny discussed

    Representatives from Kaye Scholer, Fundation Group and PeerIQ recently discussed the impact of heightened regulatory scrutiny on the US marketplace lending industry during a live webinar hosted by SCI (view the webinar here). This Q&A article highlights the main talking points from the session, including the fall-out from the Madden versus Midland Funding ruling and the US Treasury's .......

    Talking Point 19 January 2016

  • Swaps allow for higher ratings

    Cross-currency swaps that mitigate the effect of foreign exchange controls have enabled Moody's to assign ratings above the applicable foreign currency bond ceilings to foreign currency-denominated securitisation transactions, says the rating agency. Without these features such ratings would not be attainable.

    "To mitigate the transferability and convertibility restrictions, an offshore swap counterparty typically receives local currency payments from an onshore .......

    News Round-up 19 January 2016
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