ABS

  • Growing options for European SMEs

    New debt market instruments which have been developed over recent years will increase funding flows to European SMEs and mid-caps, says Moody's. This will allow these firms to access more flexible, less expensive financing, potentially through securitisation.

    New funding options range from SME bond markets and private debt funds to peer-to-business lending. However, the rating agency notes that bank lending .......

    News Round-up 7 October 2015

  • ILS lawyer brought back in

    Cadwalader, Wickersham & Taft has appointed Matthew Feig to its capital markets group in New York, where he will focus on risk-linked securities and structured finance. He previously spent seven years with the firm, before leaving for Stroock & Stroock & Lavan.

    Feig returns to Cadwalader as special counsel to the ILS team, which is led by Malcolm Wattman and .......

    Job Swaps 7 October 2015

  • Euro secondary accelerates

    The pick-up in activity and pricing levels in the European securitisation secondary market is accelerating.

    Yesterday saw a further improvement in sentiment on the back of the same in broader markets. As a result, flows increased, though liquidity is still very patchy, and spreads were broadly flat to slightly tighter. Prime spreads, including autos, continue to hold firm, but it .......

    SCIWire 7 October 2015

  • Offshore liquidity risk eyed

    TMMCB 10 - a Mexican securitisation backed by offshore vessels - remains highly levered and is increasingly exposed to liquidity risk, according to Fitch. The agency says that the oil sector downturn could exacerbate these risks as asset values and day rates have declined and re-contracting of charter agreements mostly depends on a single off-taker.

    TMMCB 10 is currently rated .......

    News Round-up 7 October 2015

  • BPF Spain, Santander partnership affirmed

    Fitch says that the partnership between Banque PSA Finance and Santander Consumer Finance has no impact on the ratings of Auto ABS 2012-3. The transaction is secured by Spanish assets originated by BPF Spain.

    Spain has now implemented the global cooperation between BPF and SCF, following France and the UK (SCI 3 February). The partnership has been structured through the .......

    News Round-up 6 October 2015

  • SF specialist recruited

    Voisin Law recruited Howard O'Toole as an associate in its commercial department. He has over 15 years of experience in all areas of offshore capital markets and structured finance transactions, specialising in MTN and CP programmes. O'Toole was previously a consultant in Hatstone Lawyers' capital markets and structured finance practice.

    .......

    Job Swaps 6 October 2015

  • Bank lines up Five Arrows purchase

    Paragon Bank is set to acquire Five Arrows Leasing Group as part of its strategy to enter into the UK SME asset finance market. The challenger bank will acquire the total share capital of Five Arrows for £117m, with the transaction expected to complete by 3 November.

    Five Arrows provides asset finance products through its subsidiary brands to UK SMEs, .......

    Job Swaps 6 October 2015

  • Euro secondary slowly improves

    Tone and activity are slowly picking up in the European securitisation secondary market.

    Bolstered by stronger broader markets sentiment in most secondary sectors has improved, which is helping to stabilise spreads and encourage participants to return, but liquidity remains generally thin. In prime, autos led the way yesterday notably in VW assets, whereas in peripherals Portuguese bonds saw the biggest .......

    SCIWire 6 October 2015

  • VW rating actions 'premature'

    S&P says it is premature to take any rating actions, including credit watch, on the VW ABS it rates. The agency rates 33 transactions originated by separate finance subsidiaries of VW and backed by loans or leases related to vehicles from the Volkswagen group.

    On 24 September, S&P placed its A/A-1 long- and short-term corporate credit ratings on VW on .......

    News Round-up 5 October 2015

  • Marketplace warehousing facility inked

    Cross River Bank has partnered with marketplace lender Marlette Funding to complete a US$100m private, unrated amortising warehouse facility. The transaction is the first to be completed between an FDIC insured bank (CRB) and a marketplace lender.

    The two firms will share the 12.5% equity tranche, with Deutsche Bank acting as lender in the deal. CRB ceo Gilles Gade says .......

    Job Swaps 5 October 2015

  • Growing pipeline

    European supply surge whetting investor appetite?

    A heavy European securitisation pipeline is pushing spreads wider, enticing investors to pick up cheap paper. Nevertheless, calls remain for the ECB to extend its buying mandate to a more diversified pool of ABS across a broader range of countries.

    European issuance to date is up by 10% in 2015 from the same time last year, according to Mark Hale, .......

    News Analysis 5 October 2015

  • Euro secondary mixed

    Activity in the European securitisation secondary market continues to be mixed.

    For the most part ABS/MBS is still being hampered by very thin liquidity and prices are softening across the board. Prime assets continue to benefit from a buying bias albeit only in pockets. Unsurprisingly autos remain the main focus and are seeing reasonably healthy two-way flows, though spreads continue .......

    SCIWire 5 October 2015

  • Capital clarity

    CMU securitisation package receives market approval

    The release of the European Commission's Capital Market Union (CMU) action plan has been hailed for reducing capital requirements and outlining a succinct and centralised definition for simple, transparent and standardised (STS) securitisation. However, key concerns remain over Solvency 2 capital recalibrations.

    The action plan introduces amendments to the Capital Requirements Regulation and a new overall securitisation legislation. The latter .......

    News Analysis 2 October 2015

  • ESMA reports on rating agencies

    ESMA has published two sets of technical advice and a report on the regulation of credit rating agencies in the EU. These papers consider measures to provide stronger controls around credit ratings for structured finance instruments and to reduce reliance on credit ratings.

    The report finds that regulation has improved the governance and operation of rating agencies but that it .......

    News Round-up 2 October 2015

  • Lack of data limits marketplace ratings

    Fitch states that it would struggle to assign a high investment grade rating to securitisations of marketplace lender consumer and SME loans. While recognising that marketplace lenders are not necessarily focusing on riskier borrowers, the agency notes that higher rates being charged to SMEs suggest they have previously been rejected by retail banks, implying a higher degree of risk.

    The .......

    News Round-up 2 October 2015

  • Agency seeks above-currency comments

    S&P is requesting comments on proposed changes to its methodology for assigning ratings above the foreign currency ratings on the sovereigns in a multijurisdictional structured finance transaction. The proposed criteria would constitute a global framework.

    Few rating changes are expected if the proposed criteria are adopted. From a test on CDOs, CMBS, ABS and covered bonds, the rating agency expects .......

    News Round-up 2 October 2015

  • 'Limited' cat bond growth forecast

    Fitch reports that the global catastrophe bond market experienced strong issuance through the first nine months of 2015, despite a modest decline from the record level reported in the prior year. The agency calculates that US$5.5bn of cat bonds were issued during the period, down from US$6.2bn in 2014.

    "Repeat sponsors have replaced maturing issues and taken advantage of current .......

    News Round-up 2 October 2015

  • RFC issued on railcar approach

    S&P is requesting comments on its methodology and assumptions for rating North American railcar ABS. The proposed criteria provide more transparency into the agency's approach and the cashflow assumptions used when reviewing transactions backed primarily by lease rental payments from a portfolio of railcars leased to various lessees.

    The criteria would apply to all new and outstanding North American railcar .......

    News Round-up 2 October 2015

  • New regulations 'unnecessary' for marketplace ABS

    The Structured Finance Industry Group (SFIG) yesterday released its response to the US Treasury's recent Request For Information on the marketplace lending industry. The response covers securitisations of marketplace loans, regulations that are currently in place and what challenges the industry faces in the near future.

    SFIG notes that the marketplace lending industry has the potential to play a major .......

    News Round-up 1 October 2015

  • VW outlook 'negative', agency confirms

    Moody's is the latest rating agency to warn that the US Environmental Protection Agency's findings that Volkswagen used engine management software in its diesel cars to evade emissions standards (SCI 23 September) are credit negative for outstanding auto ABS the company sponsors in the US and Europe. Brand damage could lead to lower recoveries on ABS loan and lease transactions .......

    News Round-up 1 October 2015

  • SCI conference line-up unveiled

    Panellists have been confirmed for SCI's 8th Annual Securitisation Pricing, Trading and Risk Seminar, which is being held on 7 October in New York. The event is being held at Bank of America's offices at 250 Vesey Street (formerly Four World Trade Center).

    The conference programme consists of a series of roundtables and panel debates focusing on issues affecting the .......

    News Round-up 1 October 2015
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