ABS

  • Euro ABS/MBS stable

    The European ABS/MBS secondary market remains stable amid wider market volatility.

    "Overall our market is generally OK," says one trader. "ABS/MBS is still well insulated from the weakness in broader markets."

    The trader continues: "We're continuing to see a strong bid for UK non-conforming and buy-to-let. Meanwhile, the rest of the market appears to be well supported and spreads are .......

    SCIWire 9 December 2015

  • Collaboration to boost UK lending

    A series of exclusive agreements signed by RBS with three separate investment partners - AIG Asset Management, Hermes Investment Management and M&G Investments - will boost access to capital for UK businesses backed by private equity. Mid-market firms will be able to borrow up to £100m in a single transaction that can be co-funded by all four lenders.

    Each transaction .......

    Job Swaps 8 December 2015

  • Investment policy revised

    Blue Capital Global Reinsurance Fund is set to revise its investment policy and modify the performance fees payable to the investment manager in advance of the January 2016 reinsurance cycle. Specifically, based on its long-term view of the property catastrophe market, the company's board believes that it is appropriate to reduce the fund's target return and modify the calculation of .......

    Job Swaps 8 December 2015

  • MultiCat losses likely

    S&P has lowered to single-D from triple-C minus its rating on MultiCat Mexico series 2012-I class C notes and removed it credit watch negative. The downgrade is due to Swiss Re's request for an extension of the maturity of the notes, which were scheduled to mature on 4 December.

    The catastrophe bond's maturity will now automatically extend by one month .......

    News Round-up 8 December 2015

  • Further FFELP deals extended

    Navient has extended the maturity dates of six FFELP student loan ABS trusts that it sponsors. In total, US$1.1bn of bonds have had their dates extended to 2083 on both the senior and subordinated tranches, effective from 2 December.

    The six trusts affected by the amendments are Navient Student Loan Trusts 2014-2, 2014-3, 2014-4, 2014-5, 2014-6 and 2014-7. The move follows Navient's .......

    News Round-up 8 December 2015

  • Participation certificate debuts

    Sarana Multigriya Finansial has listed on the Indonesia Stock Exchange (IDX) the country's first ABS in the form of a participation certificate - known as Efek Beragun Aset Berbentuk Surat Partisipasi (EBA-SP) - an instrument introduced by the regulator last year. Dubbed SMF-BTN 01 - Kelas A, the IDR181.6bn transaction securitises housing loans provided by state-owned lender Bank Tabungan Negara.

    News Round-up 8 December 2015

  • Euro secondary slows

    Yesterday saw a fairly slow session across the European securitisation secondary market, but it could yet pick-up again before year-end.

    "Yesterday was quiet, but it's too early to be thinking of year-end just yet," says one trader. "The areas of activity there were still bode well for the remainder of this week and hopefully next."

    The main focus yesterday was .......

    SCIWire 8 December 2015

  • Euro secondary unmoved

    Despite initial post-ECB softening on Friday across broader markets, the European securitisation secondary market remains unmoved.

    Liquidity remains thin across securitisation secondary and that in part helped to ensure spreads closed Friday unchanged. Nevertheless, tone remains positive and pockets of buying activity continue to be seen.

    Where those pockets appear prices are even edging slightly up. Once again, prime assets .......

    SCIWire 7 December 2015

  • ABS criteria aligned

    Fitch has published its global consumer ABS rating criteria by aligning its separate geographical methodologies for analysing credit risk in this asset class. The criteria consolidates the agency's EMEA, APAC and Latin America rating approaches.

    A number of changes were made for the new criteria, including an alignment of the margin compression assumption with the previous EMEA assumption. In addition, .......

    News Round-up 4 December 2015

  • APAC ratings to stay stable

    Ratings and asset performance in Asia-Pacific are expected to be stable throughout 2016, says Fitch. Long-term ratings on structured finance transactions are expected to remain unchanged.

    At the end of 3Q15 there were four positive outlooks and three tranches on rating watch negative. The majority of Fitch-rated Asia-Pacific structured finance portfolios are backed by assets in Australia, where economic fundamentals .......

    News Round-up 4 December 2015

  • Australian master trusts 'possible'

    The Australian Prudential Regulation Authority's revised discussion paper on its prudential securitisation framework (APS120) is now in a form that makes future RMBS and ABS master trust issuance from Australia a distinct possibility, Fitch suggests. The discussion paper - a revision of the proposal issued in 2014 - contemplates allowing early amortisation event triggers, date-based call options and the seller .......

    News Round-up 4 December 2015

  • ABSPP extension inked

    The ECB has extended its purchases under the ABSPP by six months to end-March 2017 and says the programme will run beyond this date if necessary, until there is a "sustained adjustment" in inflation. The bank will also begin reinvesting principal payments on the securities purchased under the ABSPP as they mature, for "as long as necessary", in order to .......

    News Round-up 4 December 2015

  • Euro secondary holds up

    The European securitisation secondary market is holding up amid weakness in broader credit following the ECB press conference yesterday.

    Secondary spreads saw little ECB impact yesterday - with the changes to the ABSPP already factored in, most sectors closed the day unchanged. Flows were patchy and name specific with prime RMBS and autos once more at the forefront, while peripherals .......

    SCIWire 4 December 2015

  • Fund lists ahead of ABS

    Funding Circle has listed its SME Income Fund on the London Stock Exchange after successfully raising the required target of £150m. The move signals the opening up of Funding Circle's loans to a potential global investor base and precedes the platform's inaugural securitisation (SCI 4 November).

    Sachin Patel, global co-head of capital markets at Funding Circle, expects the platform's securitisation .......

    News 3 December 2015

  • Interbank ABS arriving

    Shanghai Provident Fund Management Centre is set to issue an ABS backed by housing fund loans on China's interbank bond market, according to Shanghai Clearing House. The CNY6.96bn (US$1.09bn) deal is believed to be the first of its kind and will launch on 4 December.

    The bonds will be split into two sales, the first consisting of CNY5.02bn, with the .......

    News Round-up 3 December 2015

  • Recycling risk?

    STS synthetic exclusion scrutinised

    The European Commission's Capital Markets Union proposals for reviving Europe's securitisation market sparked the most debate among players in the capital relief space this year, according to a new SCI research report entitled 'Capital relief trades: the mechanics of recycling risk'. Under the framework for simple, transparent and standardised (STS) securitisation, synthetic balance sheet transactions remain ineligible for .......

    News Analysis 3 December 2015

  • Euro secondary keeps busy

    The upswing in activity in the European securitisation secondary market is continuing.

    Yesterday saw a pick-up in trading across the board both on- and off-BWIC. Notably, prime assets returned to form and a strong buying bias, in Dutch RMBS in particular, saw spreads in both ABS and MBS generally tighten.

    Meanwhile, Portuguese paper continued to outperform in peripherals and ended the day slightly .......

    SCIWire 3 December 2015

  • EMEA ratings transition positive

    EMEA structured finance securities continued to experience a decrease in downgrade activity and an increase in upgrade activity in 1H15, compared to 2013, according to Moody's latest transition study for the region. The 12-month downgrade rate for EMEA structured finance decreased from 16% to 4.8%, while the 12-month upgrade rate rose from 6.9% to 37.8% over the same period.

    The .......

    News Round-up 2 December 2015

  • Hedge fund goes private

    BlueCrest Capital Management is to transition to a private investment partnership and will return to its clients the US$8bn it currently manages for them. Following the transition, BlueCrest will only manage assets on behalf of its partners and employees.

    BlueCrest will continue to trade all current major strategies and retain its offices around the world. Strong growth in employees and .......

    Job Swaps 2 December 2015

  • Securitisation package approval imminent?

    The European Council appears set to approve the CMU securitisation package. The Presidency of the Council, Luxembourg, reported yesterday that a special working group has discussed the proposals in six meetings, after which different compromise proposals were prepared. There seems to have been no further reaction to the latest compromise texts, however.

    Consequently, Rabobank credit analysts suggest that formal approval .......

    News Round-up 2 December 2015

  • Online lender ABS debuts

    Online lender loanDepot has closed a US$150m securitisation of unsecured personal loans. It was structured and sold by Jefferies.

    This inaugural ABS also coincides with loanDepot's expansion of its consumer lending division to a new location in Orange County, California. The company began offering unsecured personal loans in May, making it the first national non-bank lender in the US to .......

    News Round-up 2 December 2015
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