ABS

  • PILOT deal pulled

    Fitch has withdrawn its expected ratings for the Porsche Innovative Lease Owner Trust 2015-2 deal. The agency reports that Porsche has chosen to withdraw the deal from the market, with the decision coming in light of a second round of emission violations regarding Volkswagen-linked vehicles.

    Owned by Volkswagen, Porsche was recently accused by the US Environmental Protection Agency in a letter that claims the car .......

    News Round-up 5 November 2015

  • Allowing lawsuits 'adds ABS risk'

    The CFPB's intention to remove a hurdle to class-action lawsuits would create risks for consumer lenders and related ABS, says Moody's. However, it could also bolster the credit quality of some borrowers.

    The CFPB is considering a ban on clauses in financial contracts that prevent consumers from taking part in class-action lawsuits. It may also require companies that include arbitration .......

    News Round-up 5 November 2015

  • Euro secondary improves

    Yesterday saw further improvement in the European securitisation secondary market, but it is still yet to take off.

    "We've got what we wanted at last - stability in broader markets - but our space isn't picking up massively," says one trader. "Tone is generally better and we are seeing a pick-up in high beta paper in particular."

    The trader continues: "CMBS .......

    SCIWire 5 November 2015

  • SLABS tiering switch

    Tiering in the US student loan ABS secondary market continues to be a major issue.

    "Tiering between FFELP and non-FFELP deals has been in evidence since the extension risk issue began having an impact in July," says one trader. "The related rating agency downgrades then caused further divergence with downgraded bonds prices falling far further than non-downgraded paper."

    However, the .......

    SCIWire 4 November 2015

  • Marketplace ABS compared

    Peer IQ has launched a marketplace lending securitisation tracker, with the aim of improving transparency and liquidity in the sector. In its inaugural report, the firm finds that marketplace lending securitisations do not differ significantly from more traditional securitisations in terms of structure and collateral pools. However, it suggests that differences in investor perception may be driving the higher coupons .......

    News Round-up 4 November 2015

  • ABS benchmark offered

    JPMorgan has launched an ABS index that it describes as a comprehensive benchmark, which captures 70% of the US ABS market. The aim is to offer increased transparency through its extensive coverage of the ABS market, with robust third-party pricing on the underlying constituents and rigorous management of the index portfolio.

    As of 30 October 2015, the aggregate index contains .......

    News Round-up 4 November 2015

  • Cautious acceptance

    UK marketplace securitisation perspectives assessed

    Funding Circle is tipped to become the first marketplace lender to securitise in the UK, paving the way for other platforms to tap the market. Investors appear to view the development with caution, however.

    The launch in September of Funding Circle's listed SME Income Fund is believed to be a precursor to the firm's inaugural securitisation. The transaction is expected .......

    News Analysis 4 November 2015

  • Rating agency targets expansion

    A partnership has been formed between Kroll Bond Rating Agency, the Kroll family and Wharf Street, effective immediately. It will provide permanent capital for the rating agency to grow.

    Kroll Bond Rating Agency says it will use the additional capital to develop other sectors beyond the structured finance, public finance and financial institution spaces. It will particularly look to accelerate .......

    Job Swaps 4 November 2015

  • Euro secondary strengthens

    The positive tone in the European securitisation secondary market continues to build.

    "Overall, we're strengthening, but still lagging the positive tone in broader markets," says one trader. "We're seeing something of a pick-up and flows are better especially in some of the recently quiet sectors."

    The trader continues: "We're not seeing much in prime, but Portuguese RMBS and UK non-conforming .......

    SCIWire 4 November 2015

  • Regulation threatens market viability

    Banks' market making ability in securitised products is set to be severely affected by the Basel Committee's proposed Fundamental Review of the Trading Book (FRTB). JPMorgan ABS analysts have joined a growing chorus (SCI 15 June) in warning that FRTB would make secondary trading in securitised products unprofitable.

    The final FRTB ruling is expected to be published next month, before .......

    News 3 November 2015

  • Euro secondary refocuses

    After a couple of quiet sessions the European securitisation secondary market looks set to refocus in the days ahead.

    "After a very busy week last week on our side at least it was pretty quiet yesterday and one or two data points were enough to distract the market," says one trader. "However, there are a couple of big BWICs today, .......

    SCIWire 3 November 2015

  • Deutsche re-allocates trading resources

    Deutsche Bank's management board has approved a five-year plan to revamp its strategy in the hope of achieving a number of newly set financial objectives. In a large cost-cutting scheme, the bank will exit uncleared CDS market-making and agency RMBS trading, along with higher risk-weight securitised trading.

    The cuts are part of Deutsche's goal to reduce costs to below €22bn in .......

    Job Swaps 2 November 2015

  • Smaller portfolios catered for

    Finacity Corporation has established Finacity Capital Management (FCM), a new business designed to facilitate efficient processing of trade receivables and access to the securitisation markets for companies with smaller portfolios of receivables. Magnetar Capital has provided strategic capital to FCM, which is initially capitalised with US$50m.

    The business will fund transactions in the range of US$5m to US$25m using a .......

    Job Swaps 2 November 2015

  • Euro secondary rolls on

    The bulk of the European securitisation secondary market took month end in its stride and continues to roll on at a solid if unremarkable pace.

    Friday was quieter than earlier in the week, but saw relatively healthy flows for month-end. Overall, tone remained positive and spreads were little moved.

    The main area of buying focus was once again UK prime .......

    SCIWire 2 November 2015

  • SF team bolstered

    Ashurst has recruited partners Scott Pierpont and Lee Ann Anderson to its structured finance team, based in New York and Washington, DC respectively. In a separate move, Eric Bothwell has been appointed partner in New York and Cameron Saylor has been appointed partner in the London office.

    Pierpont joins the firm from Jones Day and has experience in structured finance, .......

    Job Swaps 30 October 2015

  • Law firm expands in California

    Baker Botts is opening an office in San Francisco. It will be the firm's second office in California and it is expected to work closely with the team already established in Palo Alto.

    Patricia Stanton, chair of the firm's real estate practice, will move from its Dallas office to take the role of partner-in-charge in San Francisco. The firm expects to grow .......

    Job Swaps 30 October 2015

  • APAC ratings 'stable'

    Fitch affirmed a total of 133 APAC structured finance tranches in 3Q15. No ratings were upgraded, downgraded or withdrawn during the quarter.

    Of the affirmed tranches, 53 were prime and non-conforming RMBS bonds backed by Australian or New Zealand properties, while 47 were CMBS backed by Japanese properties and 14 were ABS backed by loans in New Zealand. The remaining affirmations include: .......

    News Round-up 30 October 2015

  • Euro secondary mixed

    The European securitisation secondary market continues to experience mixed fortunes, though tone continues to improve overall and some sectors are getting ever-more active.

    UK non-conforming continues to lead the way with healthy activity on- and off-BWIC yesterday. Flows are strong in both directions, so spreads for now remain broadly unchanged.

    The pick-up in peripherals is continuing with trades going through .......

    SCIWire 30 October 2015

  • Marketplace ABS approach outlined

    KBRA has set out its methodology for rating securitisations of consumer marketplace loans in a new report.

    The rating agency's approach to the asset class is based on the methodology it uses to rate typical ABS, but it says it is aware that marketplace lending is a new and rapidly changing industry. Any rating of a marketplace lending securitisation would .......

    News Round-up 29 October 2015

  • Euro secondary stays slow

    The European securitisation secondary market saw another slow session yesterday, but tone continues to slowly improve.

    Activity remains patchy across secondary markets but most sectors are now seeing a buying bias. Consequently, spreads are broadly flat to slightly tighter over the past day or so.

    Primary activity is continuing to distract participants, but secondary supply continues to tick over. For .......

    SCIWire 29 October 2015

  • Pubco performance 'under-appreciated'

    While S&P has affirmed Punch Taverns' ratings and revised its liquidity outlook from less than adequate up to adequate, the rating agency's use of its corporate methodology rather than corporate securitisation remains wrong, suggests Barclays credit analysts. With further non-core disposals expected, there is value to be found in Punch's bonds.

    S&P affirmed the ratings and revised its outlook as .......

    News 28 October 2015
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