ABS

  • Russian control agent 'aids performance'

    The presence of a control agent will reinforce independent performance and asset eligibility monitoring for future Russian ABS deals, says Moody's. The independent entity will reduce dependency on the originator and servicer and lessen the link between those parties and loan collateral performance.

    A note trustee can also improve the ways in which an ABS can adapt to operational challenges, .......

    News Round-up 18 September 2015

  • Euro secondary keeps quiet

    The European securitisation secondary market was once again quiet yesterday and looks likely to stay the same today.

    Secondary spreads remained fairly stable yesterday, though some softening of tone continues in the peripheral space. Volumes remained low in both flow and BWIC trading across the board in advance of the Fed announcement. On a Friday amid slightly weaker broader markets .......

    SCIWire 18 September 2015

  • Structuring head recruited

    Peter Nowell has joined SCOR as global head of structuring - financial solutions. He is tasked with structuring life reinsurance transactions, which includes ILS deals.

    Nowell joins from BNP Paribas, where he was head of ABS and ILS trading. Prior to that, he was a director at RBS, covering principal investment and ABS exotics trading. Nowell has also held senior roles at Nordea Bank, .......

    Job Swaps 17 September 2015

  • Iberian SF expert poached

    StormHarbour has appointed Yago Valderrama as md to work alongside Gonzalo Chocano in its Madrid office, focusing on coverage of Spanish institutional clients. Alejandro Gonzalez-Ruiz, md in structuring and client solutions, has also relocated from the firm's London office to Madrid to build on its structuring capabilities.

    Valderrama joins StormHarbour from SG, where he headed the Iberian institutional cross assets .......

    Job Swaps 17 September 2015

  • MMF ratings requirement removed

    The US SEC has adopted amendments to remove credit rating references in the principal rule governing money market funds and the form that they use to report on their portfolio holdings. The SEC has also adopted amendments that would subject additional securities to issuer diversification provisions in the money market fund rule.

    The amendments remove credit ratings from one of .......

    News Round-up 17 September 2015

  • Non-bank lending risks noted

    Moody's says that non-banks can aid European policymaker initiatives to fund small businesses by packaging their loans into structured deals. However, the agency warns that information asymmetry can expose such deals to a potential misalignment of interest between investors and portfolio managers.

    In light of recent efforts by European policymakers' efforts to grow the non-bank lending market, Moody's expects securitisation .......

    News Round-up 17 September 2015

  • US auto concerns flagged

    A reduction in the easing of US auto loan lending underwriting terms has not averted concerns over underperforming new loan vintages in US auto ABS, reports Fitch. The agency says that a quarterly drop in eased underwriting from 1Q15 to 2Q15 is positive, but the persistent relaxation of terms may eventually prompt asset quality to revert to historical averages over the medium term.

    Nonetheless, .......

    News Round-up 17 September 2015

  • Further Navient ABS amended

    Navient has amended the transaction agreements for 16 of its FFELP student loan ABS trusts, allowing it to purchase up to 10% of the trusts' initial pool balance, as well as to provide loans to the trusts under a subordinated revolving credit agreement (RCA). The loan purchases and any borrowings under the RCA are designed to help ensure payment obligations .......

    News Round-up 17 September 2015

  • Euro secondary stalemate

    The European securitisation secondary market stalemate is continuing as participants stay on the sidelines apart from for selected assets.

    "Things haven't changed much despite the better tone in global markets," says one trader. "In particular, off-the-run assets, such as CMBS and UK non-conforming, remain difficult to move, though UK non-conforming liquidity has slightly improved on the back of further pricing details .......

    SCIWire 17 September 2015

  • PACE ABS supported?

    DBRS expects the PACE market to grow rapidly once certain regulatory overhangs are fully addressed, citing rated ABS issuance as one potential funding source. This is in light of an FHA announcement last month, stating its intent to allow borrowers to use single-family FHA financing for properties with existing PACE loans that meet certain conditions.

    "The legislation has caused some .......

    News 16 September 2015

  • Capital solutions unit launched

    Tokio Millennium Re (TMR) has established a capital solutions unit, tasked with developing new capital markets products and leveraging the use of technology to transact business with the firm's capital markets partners. The unit will be led by Edwin Jordan, current head of Bermuda for Tokio Solution.

    TMR says the the unit should provide a more holistic underwriting and retrocession .......

    Job Swaps 16 September 2015

  • SF co-heads appointed

    ING Americas has appointed Bill James and Pieter Puijpe as co-heads of structured finance Americas. They take over from Chuck O'Neil, who retired in July.

    Both James and Puijpe will report to Rudolf Molkenboer, ceo of ING Americas, and Krista Baetens, global head of the specialised financing group. They will be on the ING Capital board and will be members of the .......

    Job Swaps 16 September 2015

  • Capital markets group adds three

    Wilmington Trust has expanded its global capital markets structured finance group with three new hires. Rick D'Emilia has been hired as business development officer, Ben Jordan as head of transaction management and Steve O'Neal as asset servicing manager.

    D'Emilia will seek to develop new client relationships, while maintaining existing relationships in the structured finance industry. Prior to joining Wilmington Trust, D'Emilia was .......

    Job Swaps 16 September 2015

  • Euro secondary lull continues

    The European securitisation secondary market's summer lull has morphed into a September one with liquidity still very thin across the board.

    "There's still very little going on other than a few BWICs," says one trader. "For September it's bad and we can't even blame the summer anymore."

    The trader continues: "What little secondary activity there's been has focused around prime .......

    SCIWire 16 September 2015

  • Marketplace reps and warranties assessed

    The issue of representations and warranties for marketplace lending ABS should not be considered alone in a transaction's ratability, suggests Morningstar. The agency adds that positive originator and servicer operational assessments, coupled with robust credit enhancement can help mitigate concerns over the strength of reps and warranties.

    Approximately 250 marketplace lenders are in operation, but securitisation of loans originated through these .......

    News Round-up 15 September 2015

  • ILS vehicle launched

    Hiscox Re has launched Cardinal Re, a Bermuda-based special purpose insurer designed to transform collateralised insurance and reinsurance risk into securities suited for capital market investors. The launch  takes parent company Kiskadee Investment Managers' AUM to over US$600m.

    Cardinal Re is a platform that will attempt to quickly create sidecars and managed accounts in a segregated cell. The first external .......

    Job Swaps 15 September 2015

  • Risk analytics pro recruited

    Yaacov Mutnikas has been appointed as co-head of Markit's solutions division focusing on risk analytics, portfolio management and enterprise data management solutions. He will report to ceo Lance Uggla.

    Mutnikas was previously senior advisor at the Bank of England, where he focused on financial networks and systemic risk. He has over 30 years of experience across software engineering, systems architecture, .......

    Job Swaps 15 September 2015

  • Euro ABS/MBS keeps BWIC focus

    The European ABS/MBS secondary market is continuing to revolve around BWICs

    "We've been fairly busy with a quite a few BWICs going through last week and this," says one trader. "Most seem to have traded reasonably well even though the macro backdrop remains challenging."

    The trader continues: "As with other markets we've softened a little but paper is still going .......

    SCIWire 15 September 2015

  • SLABS clean-up calls continue

    Navient has exercised it 10% call option on four more FFELP student loan ABS trusts, following its decision to call three trusts last month (SCI 11 August). US$636m of outstanding bonds across the four trusts - SLM Student Loan Trust 2004-6, 2004-9, 2005-1 and 2005-2 - will be repaid on 26 October.

    Navient has repaid US$1.1bn so far this year across .......

    News Round-up 14 September 2015

  • US, European issuance forecast

    S&P projects that US securitisation issuance levels for 2015 and 2016 will experience moderate year-over-year growth, but will not reach the pre-crisis levels of 2006 and 2007. The agency forecasts issuance of US$474bn and US$537bn in 2015 and 2016 respectively, up from a total of US$462bn in 2014.

    "Although many securitisation products are benefiting from an improving economy and are likely to see increased issuance, .......

    News Round-up 14 September 2015

  • Euro secondary stays stable

    The European securitisation secondary market closed out Friday fairly quietly but with spreads still appearing stable after a mixed week.

    Transparency was hampered by a higher than normal proportion of DNTs or colour not released on BWICs, but overall market tone remains positive and secondary spreads are broadly unchanged at this morning's open. CLOs and prime ABS/MBS continue to be the main .......

    SCIWire 14 September 2015
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