ABS

  • 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

  • Liquidity, collateral quality compared

    JPMorgan ABS analysts have reviewed liquidity and collateral quality, based on TRACE data from 1 June to 29 August, in the two benchmark US ABS sectors - autos and credit cards. The analysis indicates that credit card ABS saw the largest cumulative trading volume during the period, at US$12bn. The sector also posted the highest number of block trades - .......

    News 1 September 2015

  • SME ABS growth predicted

    A new study commissioned by Amicus reveals that 69% of European institutional investors believe there will be an increase in the issuance of SME finance-related ABS over the next two years. In addition, 73% of institutions polled expect there to be a growing appetite for investing in securitisations providing access to SMEs' underlying cashflow assets.

    Investor types that will likely be most attracted to .......

    News Round-up 1 September 2015

  • Auto delinquencies outpace losses

    Most US subprime auto finance securitisers have reported higher managed portfolio delinquencies since year-end 2011, according to S&P. The agency says this is partly due to a return to pre-crisis underwriting standards and new relatively small, deep subprime auto finance companies entering the ABS market.

    Delinquencies averaged a record low of 6.05% at year-end 2011, but made a 65% increase with .......

    News Round-up 1 September 2015

  • Structured settlements 'under-rated'

    New issuers entering the market could help to grow structured settlements ABS, which Morningstar Credit Ratings says are generally easier to service than other ABS receivables and are less prone to default. The rating agency believes class B notes in these transactions can achieve higher ratings than are presently awarded.

    An analysis of a hypothetical transaction with two rated tranches suggests .......

    News Round-up 28 August 2015

  • SF approach confirmed

    Scope has updated its structured finance rating methodology following the conclusion of its request for comment (SCI 17 July). The approach emphasises a fundamental analysis of structured finance instruments in a European context, as well as applying rating stability through a longer-term adjustment of assumptions.

    Scope says that it provides larger credit differentiation because it uses a fundamental bottom-up analysis .......

    News Round-up 28 August 2015

  • ECB 'behind OWIC increase'

    OWICs have been circulating in the European ABS secondary market in growing numbers. While their source has not been confirmed, one London-based portfolio manager strongly suspects they are coming from the ECB.

    "It could be anybody, but it is probably a reasonable bet that it is the agents of the ECB. The market is generally quiet right now, but the work .......

    News 28 August 2015

  • Greek upgrades follow sovereign action

    Following the upgrade of the Greek sovereign's issuer default rating to triple-C and revision of the country ceiling to single-B minus, Fitch has upgraded 18 tranches of seven Greek RMBS. It has also taken action on one credit-linked Greek ABS tranche.

    The 18 RMBS, originated by Piraeus Bank, Consignment Deposit & Loans Fund and Eurobank Ergasias, have all been upgraded .......

    News Round-up 28 August 2015

  • Euro secondary lacks conviction

    Despite an improving overall tone, the European securitisation secondary market continues to lack conviction.

    Even though broader market concerns are shelved for now yesterday was extremely quiet thanks to month-end and the summer lull. What small pockets of activity there were revolved around short-dated prime assets, some peripheral paper and a few major CMBS names.

    With a UK bank holiday .......

    SCIWire 28 August 2015

  • Credit head poached

    Joshua Baumgarten is set to join Angelo Gordon next year as senior md and head of credit, reporting to co-founder and cio Michael Gordon. In his new role, Baumgarten will oversee the firm's credit strategies, including US and European distressed, RMBS/ABS/whole loans and CMBS.

    Baumgarten is currently a senior md at Blackstone Group, which he joined in 2007, and prior .......

    Job Swaps 28 August 2015

  • Solar regulatory risks highlighted

    Moody's suggests that contract renegotiations could dent cashflows of existing solar ABS deals following the recent adoption of a new electric rate structure for residential customers of California's three major investor-owned utilities. The agency notes that outstanding solar deals have large concentrations of obligors in the most populous US state.

    "Existing solar customers in California entered into contracts with solar providers who promoted long-term .......

    News Round-up 27 August 2015

  • Instalment sales plan 'credit positive'

    Proposed amendments to Japan's Instalment Sales Law are credit positive for credit card ABS, according to Moody's latest 'Structured Thinking: Asia Pacific' report. The agency notes that the planned changes require greater scrutiny of merchants that accept credit cards and are expected to result in fewer problem credit card loans caused by fraudulent or unscrupulous sales practices.

    The Industrial Structure .......

    News Round-up 27 August 2015

  • FHA to provide PACE update

    The FHA will soon issue guidance on residential property-assessed clean energy (PACE) financing. Kroll Bond Rating Agency says there should be no negative credit effect on the senior PACE lien asset class, although borrowers may be encouraged to refinance and subordinate their PACE liens to mortgage liens, in which case prepayments could increase.

    The FHFA has already voiced its opposition .......

    News Round-up 27 August 2015

  • RFC on joint-support approach

    S&P is requesting comments on a proposed update to its methodology and assumptions for rating jointly-supported financial obligations, which will incorporate a revised view of correlation risk among the supporting parties following observations from the financial crisis. In addition, the proposed criteria will address the agency's view of increased correlation when the rating is above that of the sovereign.

    Under .......

    News Round-up 27 August 2015

  • Euro secondary improves

    Tone in the European securitisation secondary market is improving as broader market volatility reduces.

    Market sentiment improved across the board yesterday and consequently secondary spreads edged in slightly, albeit on continuing very low volumes. Yesterday's BWICs all traded at or above expectations with the Italian RMBS auction a highlight, though covers were below recent levels.

    Nevertheless, the summer lull is .......

    SCIWire 27 August 2015

  • Liquidity cited as a concern

    Morgan Stanley's Q3 global securitised product investor survey lists central bank policies as the top concern for the third quarter in a row, accounting for 32% of respondents' votes. Liquidity - added this quarter - was ranked second, securing 22% of votes. Disappointing US economic growth, meanwhile, dropped from second place to third.

    Over the next three months, the majority .......

    News Round-up 26 August 2015

  • FFELP ratings diverge

    S&P last week upgraded the ACCSS 2007-1 A3 and A4 FFELP student loan ABS tranches to triple-A from double-A plus. The bonds are currently under review for possible downgrade by Moody's and Fitch for extension risk beyond final maturity.

    The tranches are two of five ACCSS senior classes from the 2005-1, 2005-2, 2006-1 and 2007-1 transactions upgraded to triple-A after .......

    News Round-up 26 August 2015

  • Euro secondary struggles on

    The European securitisation secondary market continues to struggle on amid broader market volatility.

    Yesterday's European BWICs covered at reasonably strong levels where the line items did actually trade. However, the overall lack of flows continues to hamper price transparency and is pushing bid-offers still wider.

    Today's BWIC schedule currently sees four lists. At 10:00 London time is a seven line .......

    SCIWire 26 August 2015

  • US secondary slowdown

    US BWIC supply has slowed to a trickle today across asset classes.

    Events in China and the feared knock on impact on the US Fed's rate strategy look to have sidelined the bulk of US securitisation secondary market participants. The resultant absence of sellers is making for a quiet looking day across asset classes even for the fourth week of .......

    SCIWire 25 August 2015

  • Rate rise risks downplayed

    Fitch suggests that US credit card ABS metrics will remain in record territory near term, despite potential September interest rate rises. In prime indices, delinquency rates are expected to be steady, while charge-offs could see a slight improvement for the month.

    In addition, the monthly payment rate (MPR) for cardholders paying back their balance is expected to rise, while gross .......

    News Round-up 25 August 2015

  • APAC trading head named

    Barclays has appointed Alex Aram as head of credit trading for the Asia Pacific region. He will be responsible for the bank's regional credit business across investment grade, high yield and distressed debt, which have been brought together under one management structure.

    Aram has previously held several senior positions for Barclays, including leading its distressed debt business in the region, as well as convertible bond .......

    Job Swaps 25 August 2015
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