ABS

  • 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

  • Madden impact put to test

    The recent Madden Ruling by the US Court of Appeals for the Second Circuit could have a limited, but negative, credit impact on Moody's-rated securitisations backed by bank-originated consumer marketplace lending loans. The ruling holds that non-bank debt collectors that purchase written-off credit card accounts from a bank cannot benefit from the bank's federal pre-emption of state usury laws (SCI .......

    News Round-up 11 September 2015

  • Mobile carriers tapping into ABS

    US mobile carriers are boosting their liquidity by tapping into account receivable securitisation to finance equipment instalment plans, reports Moody's. The agency notes that these facilities bolster the reported results of mobile carriers because the cash proceeds from the securitised receivables are reported as operating cashflow.

    As a result of the net proceeds, AT&T and Verizon both reported higher free cashflow .......

    News Round-up 11 September 2015

  • Marketplace lending ABS on the up

    US marketplace lenders are increasingly looking at ABS as a viable funding source, according to Fitch. Nonetheless, key challenges need to be addressed before the product moves into the mainstream.

    Fitch says the rising popularity of marketplace lending among consumers and small businesses is due to the ability of marketplace lenders to connect with their customers directly. Borrowers in turn find .......

    News Round-up 11 September 2015

  • Reinsurer hires for ILS push

    Sequant Re has hired Victor Baillargeon as chief underwriting officer. He is tasked with leading the development of the firm's underwriting strategies as the company pushes to provide greater access for investors to ILS.

    Baillargeon's expertise includes the casualty and specialty lines of business. The company plans to use his presence as a support for its strategy of building customised and diversified ILS .......

    Job Swaps 11 September 2015

  • Non-cat ILS vehicle launched

    Vario Partners and Guy Carpenter have teamed up to form a new ILS investment vehicle and fund that focuses on non-catastrophe products. Vario Global Capital has been established to serve long-term investor interest specifically in the insurance risks of property and casualty insurers.

    The joint venture will function on a combination of Vario Partner's portfolio modelling technology and analytical expertise and Guy .......

    Job Swaps 10 September 2015

  • CATCo assets sold

    Markel is set to acquire CATCo Investment Management's assets in a deal that is expected to close in 4Q15. The new business will operate under the name Markel CATCo Investment Management and will see the transition of the existing CATCo management team, led by ceo Tony Belisle, into commensurate roles for the new firm.

    The management team will operate the business .......

    Job Swaps 10 September 2015

  • SF practice recruits trio

    Schulte Roth & Zabel has expanded its structured finance practice by adding Boris Ziser and Thomas Weinberger as partners. The law firm has also brought in Stephen Schauder as an associate.

    Ziser will co-head the firm's structured finance and derivatives group, with his experience ranging across ABS, warehouse facilities, secured financings and commercial paper conduits. His practice encompasses a variety of asset .......

    Job Swaps 10 September 2015

  • UK card ABS remains strong

    The collateral performance of UK credit card ABS has remained strong in 1H15, according to S&P. A favourable UK macroeconomic environment has resulted in low delinquencies and charge-offs, while payment and yield rates have been fairly steady from quarter to quarter.

    Charge-off rates were fairly low and stable at 3.03% at the end of 1Q15 and 3.04% at the end .......

    News Round-up 9 September 2015

  • Revolving deal sets China precedent

    Revolving structures can help Chinese banks securitise SME loans because they resolve the mismatch between the short tenor of the underlying loans and the long-term maturity of the securitisation scheme, says Moody's. The agency believes that the recent launch of the first securitisation with such a structure in the interbank bond market may have set a precedent for future transactions to follow.

    News Round-up 8 September 2015

  • SME lending deal boosted

    Prospa has brought to the market the first Australian securitisation of unsecured, online business loans. The firm secured A$60m in capital as proceeds to help both fund the loans to Australian SMEs and support Prospa's expansion in the local financial technology market, making it the largest capital raising to date by an Australian online lender.

    The co-investment is led by Carlyle Group, which .......

    News Round-up 8 September 2015

  • Aussie auto loss rise anticipated

    Fitch expects Australian auto portfolio losses to increase over coming quarters as rising unemployment and delinquencies converge by year end. This follows higher recorded auto arrears in 2Q15, with 60 plus days and 30 plus days arrears reaching 0.56% and 1.34% respectively - an increase of 7bp and 9bp over the quarter.

    The annualised loss rate remained almost unchanged at 0.6% though, .......

    News Round-up 7 September 2015

  • Debt restructuring move agreed

    The Puerto Rico Electric Power Authority (PREPA) has made a move to reduce its debt by agreeing to a restructuring of the power revenue bonds held by PREPA bondholders from the ad hoc group. The group will exchange all of their outstanding bonds for new securitisation notes and receive 85% of their existing bond claims in new securitisation bonds.

    As part of the agreement, bondholders will be given two options. .......

    News Round-up 4 September 2015

  • Subprime auto delinquencies rise

    The US subprime auto loan ABS sector showed mixed signals in June as losses remained stable on a year-over-year basis, but 60 plus day delinquencies rose to their highest June level since 2009, says S&P. Though showing some weakening, the prime sector stayed largely within historical norms for the month.

    "The prime sector experienced a gradual increase in losses," says .......

    News Round-up 4 September 2015

  • Euro secondary ticks up

    Broader market improvement on the back of the message from the ECB and the Chinese holiday has extended into the European securitisation secondary market with a slight uptick in activity and some improvement in pricing levels.

    Flows continued to revolve around the usual suspects with sterling-denominated prime and peripherals, especially Italy, benefitting the most. At the same time, the CLOs .......

    SCIWire 4 September 2015

  • RFC on SLABS approach extended

    Moody's has published a report that illustrates the application of its proposed new assumptions for rating FFELP student loan ABS. Concurrently, the agency has extended its request for comment period on proposed changes to its approach in rating the asset class.

    Among the changes Moody's proposes is adjusting rating assumptions to accurately reflect the maturity risk from the substantial and .......

    News Round-up 3 September 2015

  • Euro secondary still slow

    Despite hopes for a post-August spike, volumes in the European securitisation secondary market are still only growing slowly.

    "It's still pretty quiet and could take a while to really get going," says one trader. "This week has been slower than we hoped as broader market volatility continues and people are also waiting on the ECB today and the growing primary schedule .......

    SCIWire 3 September 2015

  • Solar firm taps SF expert

    8minutenergy Renewables has named Fred Vaske as vp of project finance. He previously worked as director of structured finance for SunPower, where he structured and negotiated both power purchase agreements with commercial customers and the sale of commercial project portfolios to financial investors. Vaske has also held senior roles in project finance for Hanwha Q CELLS USA and Recurrent Energy, and was .......

    Job Swaps 2 September 2015

  • Chinese issuance quotas 'positive'

    Moody's says that the People's Bank of China's (PBOC) inaugural approval of issuance quotas for Chinese securitisations is a positive development for the country's securitisation market. Under the new system, issuers should have greater certainty about the size and number of deals that they can issue over a set period.

    "The quota system will enable sponsors to speed up the .......

    News Round-up 2 September 2015

  • Euro ABS/MBS struggles back to life

    The European ABS/MBS market is slowly struggling back to life after the summer lull.

    Secondary market tone remains generally weaker and liquidity is still thin across the board. Euro-denominated prime assets continue to be the main focus for the market, but some buying interest has returned for peripheral paper, particularly Italian and Portuguese bonds.

    There are four BWICs on the .......

    SCIWire 2 September 2015

  • A bright future for securitisation

    James McEvoy, head of structured finance at Alter Domus, app...

    An increasing appreciation of how securitisation can help fund the real economy seems to be finally gaining traction, after a number of years of limited activity throughout Europe.

    The European Commission's green paper on building a Capital Markets Union published earlier this year set securitisation as a key pillar in creating a fully integrated single market for capital and funding .......

    Talking Point 2 September 2015
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