ABS

  • Euro secondary stays strong

    Despite weaker global markets and reduced volumes the European securitisation secondary market is still showing some strong signs.

    "Yesterday was a bit quieter with flows minimal across most sectors as a result of weakness in broader credit thanks to increasing global political tension," says one trader. "However, we saw some strong activity and prints around BWICs."

    The trader continues: "Italian .......

    SCIWire 25 November 2015

  • US job growth supports card ABS

    Strong employment growth should keep US credit card ABS performance metrics near records through the end of the year, says Fitch. Prime charge-offs are expected to increase this month and delinquencies are expected to rise.

    The unemployment rate for October fell to 5%, according to the US Department of Labor, which is a level last reached in April 2008. The .......

    News Round-up 24 November 2015

  • Euro secondary UK focused

    The heightened focus on UK RMBS is continuing in the European securitisation secondary market.

    "Overall, secondary is somewhat quiet," says one trader. "With Thanksgiving coming, today will be another day to get a few things done but away from UK RMBS there's not much broad-based trading."

    The trader continues: "Both UK prime and buy-to let were very busy yesterday. It's .......

    SCIWire 24 November 2015

  • Auto incentive warning

    The proliferation of vehicle incentives could depress the value of used vehicles and contribute to higher loss severity, according to Fitch. The agency warns that this could ultimately push up auto loan and lease ABS loss rates.

    The average incentive per vehicle has risen gradually this year and rose above US$3,000 per vehicle in recent weeks. Incentive levels rose to .......

    News Round-up 23 November 2015

  • Marketplace ABS deals struck

    Victory Park Capital (VPC) has closed a pair of securitisation financings: a A$100m ABS warehouse programme with zipMoney, an Australian digital retail finance provider; and a US$175m marketplace lending transaction, alongside KKR.

    Dubbed zipMoney Trust 2015-1, the Australian transaction comprises three classes of unrated notes issued by Perpetual in its capacity as trustee. Pricing on all classes of notes is .......

    News Round-up 23 November 2015

  • Euro secondary undented

    A typically quiet Friday has failed to dent the positive tone in the European securitisation secondary market.

    After a pick-up in activity earlier in the week, Friday was typically quiet across most sectors. Nevertheless, market sentiment remained strong and spreads closed the day broadly unchanged.

    Continued trading around the Granite redemption means UK prime remains the main focus. Friday again .......

    SCIWire 23 November 2015

  • PartnerRe deal approved

    Shareholders of PartnerRe have voted to approve EXOR's proposed acquisition of the firm, edging the deal closer to completion. The vote was made yesterday (19 November) at PartnerRe's special general meeting at the company's offices in Bermuda.

    PartnerRe's board of directors also declared a special dividend of US$3 per share payable to common shareholders, contingent upon the completion of the acquisition. .......

    Job Swaps 20 November 2015

  • Leadenhall brings in two

    Leadenhall Capital Partners has made two new hires to bolster its portfolio management team. Joel Milnes joins as an investment analyst in the firm's non-life team, while Craig Gillespie moves into life investments as a portfolio manager.

    Milnes arrives from Markel International, where he worked in the reinsurance pricing team. He focused particularly on pricing marine and specie, energy, financial .......

    Job Swaps 20 November 2015

  • Euro secondary accelerates

    The recent uptick in the European securitisation secondary market accelerated further yesterday.

    A noticeable pick up in flows was seen across the board. As a result, prices were broadly either unchanged or edged a little higher.

    Stronger but still selective activity was seen in Autos, CLOs and CMBS. At the same time, peripherals held firm with continued buying interest in Italian .......

    SCIWire 20 November 2015

  • FFELP downgrades anticipated

    Fitch has released an exposure draft that showcases proposed amendments to how it rates US FFELP student loan ABS. The agency expects to place potentially impacted tranches on rating watch negative, with potential downgrades to follow.

    Among the main proposals is a revision of the assumptions and stresses for deferment, forbearance, IBR, default timing and prepayments. Fitch is considering amendments that .......

    News Round-up 19 November 2015

  • FRTB impact analysed

    The Basel Committee has published the results of its interim impact analysis of its fundamental review of the trading book. The report assesses the impact of proposed revisions to the market risk framework set out in two consultative documents published in October 2013 and December 2014. Further revisions to the market risk rules have been made since then and the .......

    News Round-up 19 November 2015

  • Euro secondary tight

    Spreads across the European securitisation secondary market are holding up, but liquidity remains tight.

    "Market tone and pricing levels are better across secondary in line with global credit," says one trader. "However, we're not seeing huge flows, they even fell back a little yesterday, and liquidity is still tight, so it doesn't take many trades to move spreads."

    UK non-conforming .......

    SCIWire 19 November 2015

  • Euro secondary on the up

    Activity and sentiment are on the up in the European securitisation secondary market.

    Bolstered by improving broader markets, activity in securitisation secondary picked up yesterday and market tone continues to improve. Better buying interest was seen across most sectors and spreads are broadly flat to slightly tighter.

    Prime autos and RMBS saw healthy flows yesterday, while the bid for UK .......

    SCIWire 18 November 2015

  • Navient extends RCA

    Navient has amended the transaction agreements for 66 FFELP student loan ABS trusts, 23 of which are either on review for downgrade or on rating watch negative. The amendments allow Navient to provide loans to the trusts under a revolving credit agreement (RCA) at its discretion. The RCA permits the trusts to borrow from Navient to cover any payment shortfalls .......

    News Round-up 18 November 2015

  • ESMA consults on CRAs

    ESMA has published a discussion paper on the validation and review of credit rating agency (CRA) methodologies. The paper provides background on validation practices in the credit rating industry and shares good practice observed by ESMA in its recent supervisory investigation.

    The paper also seeks stakeholders' views on the validation and review of CRA methodologies. It particularly requests views on how .......

    News Round-up 18 November 2015

  • Purchase progress?

    ABSPP prospects assessed one year on

    The ECB's ABSPP entered into force on 19 November 2014 (SCI passim) and has dominated European ABS proceedings since. A recent ECB commitment to QE2 has buoyed the market, but the lackluster performance of the purchase programme a year since its inception may temper expectations.

    What role ABSPP could have in QE2 is not yet known, but the purchase programme's limited success .......

    News Analysis 18 November 2015

  • Structured debt chief moves on

    Paul Hastings is set to add Paul Severs to its London office as a partner in its corporate practice. He joins from Berwin Leighton Paisner, where he was head of structured debt and capital markets.

    Severs has experience across the structured finance and securitisation markets. He has previously also worked at FGIC and Clifford Chance, where he was a partner.

    .......

    Job Swaps 17 November 2015

  • STS changes proposed

    Insurance Europe has released a paper which makes a number of proposals regarding alignment of the draft regulation for a European STS framework with Solvency 2. Among its suggestions, the paper says that capital charges for STS deals should be aligned to those for corporate bonds.

    The paper also says that the scope of all tranches - junior and senior - in STS transactions .......

    News Round-up 17 November 2015

  • Aircraft ABS set to grow

    The aircraft ABS sector should continue to grow next year, with more deals and more leasing entrants, says Fitch. The agency counts 11 aircraft securitisations completed since the start of 2014.

    Some recent deals have included increased concentrations in older aircraft, while regional jets and turbo-prop aircraft are also being included more frequently in collateral pools. Outstanding ABS performance has .......

    News Round-up 17 November 2015

  • Madden scenarios played out

    The ongoing litigation surrounding Madden vs. Midland Funding poses risks to marketplace lenders and related ABS, suggests Moody's. The agency says that it throws into doubt the presumed legal benefits that come with marketplace lenders using third-party partner banks to originate loans.

    The US Second Circuit Court of Appeals back in May held that non-bank debt collectors that purchased written-off .......

    News Round-up 17 November 2015

  • LatAm structured leader added

    Nomura has made three appointments to its emerging markets business in the Americas. Karan Madan, JP Alvarado and Siobhan Morden join as mds.

    Madan becomes md and head of emerging markets in the Americas. Among his duties will be building out the structured products business in the region. He was most recently regional head of Latin America and head of .......

    Job Swaps 17 November 2015
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