ABS

  • 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

  • Euro secondary picking up

    Activity in the European securitisation secondary market is starting to pick up.

    "Yesterday was very quiet again with not a lot of flows or BWICs," says one trader. "However, it appears to be picking up today and the BWIC calendar is building for the rest of the week, though involving a lot of off-the-run securities."

    The most active sector yesterday was .......

    SCIWire 2 December 2015

  • ABS to boost SMEs

    The British Business Bank (BBB) is considering securitisation as part of its wider remit to increase funding to UK SMEs. It aims to provide capital to increase the supply of asset finance solutions for small businesses and securitisation may be used as a refinancing tool.

    This strategy is part of the BBB's ENABLE funding programme, which aggregates asset finance portfolios .......

    News 1 December 2015

  • European outlook improves

    European structured finance will benefit next year from an improved macroeconomic landscape, consumer confidence and a more competitive lending environment, which will boost asset performance, says Fitch. The rating agency has changed its asset performance outlook to stable/positive for 2016.

    Asset performance outlooks for several individual markets have improved as GDP growth and lenders' greater appetite to underwrite loans to .......

    News Round-up 1 December 2015

  • Tobacco ABS reviewed on data update

    Fitch has placed 49 tranches of tobacco settlement ABS on rating watch and revised two from rating watch negative to rating watch evolving in connection with an ongoing and comprehensive review of its entire tobacco settlement ABS portfolio. The agency says it is taking these actions because of updated or corrected data, assumption changes, anticipated additional payments and corrections to .......

    News Round-up 1 December 2015

  • Complex debt guidelines finalised

    ESMA has published its final report on guidelines on complex debt instruments and structured deposits in MiFID 2. The guidelines are intended for the assessment of securitised debt and money market instruments incorporating a structure which makes it difficult for the client to understand the risk involved.

    The guidelines also apply to structured deposits incorporating a structure which makes it .......

    News Round-up 1 December 2015

  • Asian delinquency trends to diverge

    Moody's forecasts that delinquency rates for structured assets in Asia (ex-Japan) will diverge in 2016. China and Singapore are generally expected to show rising delinquency trends, while performance in India and Korea should exhibit strength.

    "China's gradual economic slowdown will trigger a slight rise in delinquencies from current low levels across a range of asset classes in the country, while .......

    News Round-up 1 December 2015

  • Euro secondary lull continues

    The lull in activity seen at the end of last week in the European securitisation secondary market carried over to another quiet session yesterday.

    With most secondary market participants pre-occupied with month-end there was little investor activity and only very patchy and light flows from dealers, nor were there any European BWICs. However, market tone remained positive with spreads broadly .......

    SCIWire 1 December 2015

  • Growing trade

    Receivables ABS opportunities emerging

    A number of UK government legislative initiatives are expected to help breathe life into small businesses. This, in turn, could help deepen interest in trade receivables securitisation as a useful tool for facilitating working capital.

    The Small Business, Enterprise and Employment Act is cited by Moody's as one particular initiative that can help boost SME access to private sector finance .......

    News Analysis 30 November 2015

  • VW issuance to expand

    Volkswagen says it plans to continue diversifying its mandate for auto ABS issuance amid the ongoing fuel-emissions scandal. The manufacturer notes that the priority will be to secure liquidity and not maximise basis points.

    Moody's recently commented on Volkswagen-sponsored ABS in light of the heightened risks potentially involved. The agency expects a negative effect, particularly on US deals, as a .......

    News Round-up 30 November 2015

  • APRA proposal 'credit positive'

    APRA's proposed changes to Australia's prudential framework for securitisation are credit positive for Australian banks (SCI 26 November), according to Moody's. The agency expects the proposal to improve access to securitisation funding by broadening the investor base for Australian transactions and enabling the securitisation of new asset classes.

    "Some of the proposals - in particular the reintroduction of date-based calls .......

    News Round-up 30 November 2015

  • ABSPP 'pause' due

    The Eurosystem is set to temporarily pause its purchases under the ABSPP between 22 December and 1 January 2016, in anticipation of lower market liquidity during this period and to reduce potential market distortions. Purchases will resume on 4 January.

    However, the ECB anticipates purchases made during the period of 27 November to 21 December to be "somewhat frontloaded", in .......

    News Round-up 30 November 2015

  • Proof of concept

    Risk transfer regulatory, structuring considerations discussed

    Representatives from Reed Smith and StormHarbour Securities recently provided an introduction to capital relief trades, focusing on regulatory and structuring considerations, during a live webinar hosted by SCI (view the webinar here). This Q&A article highlights the main talking points from the session. For a broader and more in-depth exploration of the risk transfer space, attend SCI's Regulatory .......

    Talking Point 30 November 2015

  • Euro auto delinquencies down

    European auto ABS performance continued to improve in 3Q15 as arrears reached record lows, says Fitch. The rating agency's 30-plus day delinquency index fell from 0.83% in the previous quarter to 0.76% and its 60-plus day delinquency index fell from 0.4% to 0.37%.

    Fitch's annualised loss index decreased from 0.2% in 2Q15 to 0.15% in 3Q15. Macroeconomic factors were positive .......

    News Round-up 27 November 2015

  • HERO hits the market

    Renovate America has issued the first ever 'green' PACE securitisation. HERO Funding Trust 2015-3 represents 8,939 home improvements made to reduce energy or water consumption or produce renewable energy.

    The notes are considered green bonds based on the classification standards of the International Capital Market Association. The transaction is secured by approximately US$207.7m of PACE bonds, issued by WRCOG, SANBAG .......

    News Round-up 27 November 2015

  • Euro secondary slumbers

    The European securitisation secondary market is taking it easy through the US public holiday but market tone is staying strong.

    Despite low volumes yesterday spreads remained firm to slightly tighter across the board. UK non-conforming and buy-to-let bonds are still the most active areas and remain better bid, primarily from the Street. At the same time, peripherals continue to generate .......

    SCIWire 27 November 2015

  • Prudential changes proposed

    The Australian Prudential Regulation Authority (APRA) has released a paper that sets out revisions to the country's prudential framework for securitisation. The regulatory body intends to simplify the rules, in order to strengthen the funding profile for market players and add clarity for entrants looking for capital benefits.

    The proposals take into consideration global reform initiatives and specifically incorporates the Basel .......

    News Round-up 26 November 2015

  • Utility factor

    PREPA deal presents opportunities, risks

    Puerto Rico Electric Power Authority (PREPA) plans to exchange newly issued utility cost recovery charge (UCRC) ABS bonds to its uninsured bondholders as part of an agreement to reduce its debt burden. The deal remains in limbo for now, however, as PREPA continues thrash out details with the bondholders yet to sign up.

    The planned securitisation, which Moody's says would .......

    News Analysis 26 November 2015

  • Aussie ABS, RMBS defaults to inch up

    The delinquency and default rates for Australian ABS and RMBS will rise slightly next year from their current low levels, Moody's projects. This is due to below-trend economic growth and an uptick in unemployment.

    "The credit quality of the mortgage collateral for new RMBS issued in 2016 will deteriorate - when compared with 2015 - owing to the inclusion of .......

    News Round-up 26 November 2015

  • Pass-through tax treatment mooted

    The US Bipartisan Budget Act of 2015 - signed earlier this month - is set to impact the tax treatment of a variety of securitisation structures. The act replaces a longstanding set of statutory provisions governing the audit and adjustment of partnership income tax returns.

    Under existing rules, adjustments to partnership income are generally accounted for and tax paid at .......

    News Round-up 26 November 2015

  • Ratings withdrawn on 'lack of interest'

    S&P has withdrawn its ratings on all notes, except one, issued by Ballantyne Re. The agency says it received a request from the sponsor of the ILS, Scottish Re (US), to withdraw the ratings in 2010 but opted to maintain unsolicited ratings due to potential market interest. However, it notes that there is seemingly no longer significant market interest in .......

    News Round-up 26 November 2015
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