ABS

  • FFELP reform to affect payments

    The CFPB, US Department of Education and Department of the Treasury have issued a joint statement on student loan servicing principles to provide a framework to improve servicing practices, promote borrower success and minimise defaults. The CFPB has also released its student loan servicing analysis of public input and recommendations for reform, which has direct implications for FFELP ABS through .......

    News 1 October 2015

  • New fund targets SF investment

    Franklin Templeton Investments has launched the Franklin K2 Long Short Credit Fund, which will invest in a variety of credit strategies. It aims to provide investors with access to a select group of hedge fund managers in a single diversified portfolio, while providing daily liquidity.

    Franklin Templeton acquired hedge fund solutions provider K2 Advisors in 2012. The new fund aims .......

    News Round-up 1 October 2015

  • Agency proposes new rating type

    S&P has issued a request for comment on its proposed criteria for assigning a new rating type. It would be specific to the financial obligations which structured finance special-purpose entities enter into with banks or other entities on the issuer's credit risk under a contract such as a swap or liquidity facility.

    The new counterparty instrument rating (CIR) would address an .......

    News Round-up 1 October 2015

  • Euro secondary improves

    Tone in the European securitisation secondary market is improving in line with broader market sentiment, but activity remains limited away from VW.

    "Yesterday was very quiet again, but that is typical of quarter-end," says one trader. "However we did start to see bids back in VW ABS and it had stabilised at its wides by the close. This morning it .......

    SCIWire 1 October 2015

  • Derivatives development

    Marketplace lending structured products weighed

    Efforts to create US marketplace loan derivatives are gaining traction, as investors seek hedges for their long positions and increased secondary market liquidity. According to a new SCI research report entitled 'Marketplace lending: disruptors and the new credit paradigm', the development of marketplace lending securitisations and structured products goes hand-in-hand.

    Synthetic Lending Marketplace (SLMX), for one, plans to .......

    News Analysis 1 October 2015

  • CMU proposals laid out

    The European Commission has launched its Capital Markets Union action plan to build a single market among EU member states. The proposal provides specific criteria  to differentiate simple, transparent and standardised (STS) securitisation products, while also making amendments to capital requirements regulations.

    The Commission's introduction of a clear set of criteria to identify STS is broken down into two groups. According to the proposal, 'simple .......

    News Round-up 30 September 2015

  • VW auto ABS risks outlined

    The current Volkswagen scandal may be felt in auto ABS transactions primarily through its impact on used car values, says Fitch. The agency notes that transactions are exposed to used car values either directly through residual value or indirectly via recovery proceeds from the sale of the car when a borrower or lessee defaults.

    Fitch rates 25 Volkswagen-originated transactions globally, with .......

    News Round-up 30 September 2015

  • Euro secondary drifts

    European securitisation secondary spreads are continuing to drift wider.

    "Yesterday was very quiet and today looks to be the same," says one trader. "Clients are definitely sidelined as market sentiment weakens."

    The trader continues: "There are a number of factors impacting sentiment both internal and external to ABS - there's the broader macro picture obviously, combined with our US equivalent .......

    SCIWire 30 September 2015

  • Trevi 3 portfolio acquired

    AnaCap Credit Opportunities III has acquired €1.2bn of non-performing loans from UniCredit Group. Under the terms of the agreement, the AnaCap fund will acquire 100% of the Trevi 3 portfolio, which comprises Italian secured and unsecured bankruptcy and other enforcement claims against primarily SME borrowers.

    AnaCap funds previously acquired a similar portfolio of NPLs from UniCredit in October, totalling claims .......

    News Round-up 29 September 2015

  • RBS reshuffles corporate division

    RBS has appointed Scott Satriano to its new head of financing and risk solutions role as the bank looks to simplify the structure of its corporate and institutional banking (CIB) division. Simultaneously, Kieran Higgins becomes head of trading and flow sales, while Richard Bartlett has stepped down from his position as head of coverage and debt capital markets.  

    Satriano was .......

    Job Swaps 29 September 2015

  • PACE approach finalised

    DBRS has finalised its US PACE securitisation methodology, which it will use to rate and monitor property assessed clean energy transactions. The agency's approach to the asset class entails focusing on the quality of the originator and other parties involved in the transaction, evaluation of the collateral pool and historical collateral performance evaluation techniques. DBRS says it typically evaluates both .......

    News Round-up 29 September 2015

  • Fund liquidity proposals weighed

    Last week, the US SEC voted to propose tighter liquidity rules for open-end funds, including mutual funds and ETFs. While the rules would lead to several changes, the most significant one for CLO investors could be regarding liquidity buckets.

    The SEC's proposed rules would formalise the 15% limit on illiquid assets which currently serves as a guideline, classify assets into .......

    News 29 September 2015

  • Gleacher pay-outs continue

    Gleacher & Company's board has decided to make a third liquidating distribution to the firm's stockholders in the amount of US$4 per share of its common stock - approximately US$24.7m in aggregate. The record date for the distribution is 12 October, with the anticipated payment date on or about 23 October. Since Gleacher's dissolution announcement last year (SCI 29 July), its distributions now total .......

    Job Swaps 29 September 2015

  • MiFID 2 standards finalised

    ESMA has published its final technical standards on MiFID 2, revealing how the legislation will apply in practice to market participants, market infrastructures and national supervisors. The standards are broken down into how they will help increase transparency, safety and investor protection.

    In promoting fairer and safer markets for OTC and non-equity products, ESMA says that there will be tests to determine .......

    News Round-up 29 September 2015

  • Euro secondary weakens

    The European securitisation secondary market has weakened further on the back of broader market sell-offs and continuing VW concerns.

    "Equity and credit markets are weaker and so are we," says one trader. "In particular the weakness in VW ABS has filtered through into the whole of the low beta space and with that weak it's extremely difficult to get anything .......

    SCIWire 29 September 2015

  • Utility sponsored ABS debuts

    AES Distributed Energy has launched its inaugural securitisation, making it the first solar ABS deal to be backed by a utility company. Aurora Master Funding 2015-1 is secured by 15 limited purpose solar power distributed energy project companies, comprising 12 commercial, industrial, municipal and small utility companies (CIMU) and three that are residential.

    The transaction comprises two tranches and is rated by .......

    News Round-up 28 September 2015

  • Euro secondary stays thin

    Liquidity remains thin in the European securitisation secondary market.

    Last week ended as anticipated with many players staying on the sidelines as a selling bias prevailed and bid-offers moved ever wider. Even flows in CLOs diminished as the relatively hectic BWIC schedule saw a flurry of DNTs. Overall, away from prime assets, secondary spreads have edged out further.

    Today currently .......

    SCIWire 28 September 2015

  • Model bail-in clause provided

    AFME has published a model clause for contractual recognition of bail-in. It provides model wording designed to assist banks in complying with obligations under the Article 55 of the EU's Bank Recovery and Resolution Directive (BRRD).

    The directive requires banks to insert clauses in contracts to give effect to bail-in in a very broad range of liabilities governed by non-EU .......

    News Round-up 25 September 2015

  • UK ILS proposals promoted

    The London Market Group (LMG) has provided an update on its work towards improving London's attractiveness as a potential hub for future ILS activity. Two particular proposals have been put forward by LMG chair Steve Hearn, including changes to corporation law to enable ILS vehicles to be set up in the UK.

    A proposal to change UK corporation law would involve creating a necessary protected cell structure .......

    News Round-up 25 September 2015

  • Euro ABS/MBS sidelined

    Investors are for the most part staying on the sidelines in the European ABS/MBS secondary market.

    Sellers are outnumbering buyers in most sectors as broader market volatility is now heavily impacting ABS. Inevitably VW paper is taking the biggest hit at the moment and that is causing reticence in the rest of the European auto sector. Instead, buying is continuing .......

    SCIWire 25 September 2015

  • Standardisation 'a double-edged sword'

    Scope Ratings says it welcomes initiatives to increase standardisation in the European securitisation market, providing they strengthen transparency and enable better credit risk analysis of transactions. However, the agency warns that standardisation of transactions can prove a double-edged sword and should not divert market participants from careful credit analysis.

    Better disclosure among originators and issuers, as well as standardisation of .......

    News Round-up 24 September 2015
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