ABS

  • 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

  • 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
×