ABS

  • 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

  • Euro secondary holds up

    In the face of continuing equity market volatility the European securitisation secondary market appears to be holding up relatively well.

    True price discovery remains very difficult with almost no trading thanks to the summer lull combined with the extreme equity and FX market volatility discouraging any securitisation market participants still at their desks. However, dealers for now appear to be taking .......

    SCIWire 25 August 2015

  • Time to review

    Asset reviewer relevant beyond mandated role

    Public securitisations in the US will soon require an asset reviewer - as mandated by Reg AB 2 (SCI passim) - but the benefits of such a role may see it also included in both private and international deals. However, concerns remain that the function will not be used in the sector that led to its creation.

    "One of the .......

    News Analysis 25 August 2015

  • APAC ILS issuance to rise

    Fitch expects catastrophe bond issuance to increase in Asia-Pacific - particularly for catastrophe-prone countries, such as Japan and China - as the region strengthens its resilience to disasters. At the same time, insurers are seeking alternative sources of funding to reduce their heavy dependence on reinsurers.

    The high catastrophe exposure and significant gap between insured losses and economic losses mean .......

    News Round-up 24 August 2015

  • Capital plan

    Definitional issues weigh on HQS progress

    The European Commission is set to unveil proposals to reduce capital charges on high quality securitisations (HQS) next month. However, the lack of cohesiveness among different regulatory authorities means that concern over definitional issues remains.

    "There is somewhat of an irony in that inconsistency between definitions of qualifying securitisation slides in the face of the goal of creating more simplicity .......

    News Analysis 21 August 2015

  • Agency lowers tobacco ratings

    S&P has lowered its ratings on 14 maturities of Tobacco Settlement Financing Corp Series 2015A and removed them from creditwatch negative. There is an action plan in place to address an issue that could affect some of the series 2015A bonds, but the rating agency is increasingly unsure that the process will conclude successfully.

    The ABS is backed by the .......

    News Round-up 21 August 2015

  • Debut ABS for marketplace lender

    Marketplace lending platform Avant has completed its first securitisation, which provides US$139m in debt financing. The deal has three tranches and was placed by Jefferies.

    Further deals could follow, as Avant says its inaugural ABS "sets a strong precedent for future transactions". The company has also closed a US$200m revolving warehouse facility, with JPMorgan and Credit Suisse serving as senior .......

    News Round-up 21 August 2015

  • Pledge accounts mechanism welcomed

    The introduction of pledge accounts is one of the most significant developments in Russian securitisation stemming from the July 2014 law, according to Moody's. Credit Europe Bank's recent Special Financial Organisation Europa 14-1A ABS was the first Russian transaction to feature such a mechanism.

    The pledge accounts mechanism allows noteholders to enforce the funds in their favour if an issuer .......

    News Round-up 21 August 2015

  • SF team expands

    Morgan Lewis continues to expand its global structured transactions capability in London with the addition of structured finance partner Theresa Kradjian, who joins the firm this month, and corporate tax partner Paul Beausang, who will join in October. The pair will become part of the structured finance team formed last month, led by Matthew Duncan, Julian Goodman and Paul Matthews .......

    Job Swaps 21 August 2015

  • Euro secondary fades further

    The European securitisation secondary market continues to be weighed down by seasonal illiquidity and macro concerns causing the hitherto positive tone to fade further.

    Activity remains extremely patchy with only small pockets of trading surrounding CMBS and prime ABS/RMBS. Elsewhere, a selling bias is emerging with wider market volatility beginning to bite and bid-offers are widening as even more participants .......

    SCIWire 21 August 2015

  • Hedge fund adds ABS trader

    Scott Eichel has joined Brevan Howard as a partner in its New York office. He will focus on senior fixed incomes securities for the firm, specifically ABS. Prior to joining, Eichel was head of securitised debt at RBS.

    .......

    Job Swaps 20 August 2015

  • Marketplace lender hires Zinn

    ApplePie Capital has appointed Jeff Zinn as head of capital markets. He joins from Jefferies, where he was md, specialising in structured product sales that included ABS, MBS and CLOs.

    Zinn will now be responsible for accelerating ApplePie Capital's growth and expanding the company's relationships with institutional investors. He has also held roles at The PrinceRidge Group, Bank of America .......

    Job Swaps 20 August 2015

  • SLABS sponsor risks observed

    Slowing repayment rates on FFELP student loan ABS trusts sponsored by Navient and Nelnet will have a modest impact on their risk profile, according to Moody's. However, the sponsors could still face some risks from corporate debt and liquidity challenges.

    Repayment rates on the FFELP ABS trusts continue to slow due to growing number of borrowers opting for income-based repayment .......

    News Round-up 20 August 2015

  • Trading vet brought in

    Luca Favero has joined Numen Capital as portfolio manager and research analyst. He arrives from SG, where he was director - credit trading, and was European head of credit derivatives trading for Calyon prior to this. Favero's experience spans CDS and structured finance, with roles also at Nomura, Credit Suisse and Lehman Brothers.

    .......

    Job Swaps 20 August 2015

  • Euro secondary sidelined

    Broader market volatility is adding to the summer doldrums in the European securitisation secondary market as it is keeping even more players on the sidelines.

    The market continues to lack conviction as activity remains patchy and very light. What little trading there was yesterday was once again mainly focused on prime assets.

    Meanwhile, BWIC activity also remains negligible and yesterday's handful of .......

    SCIWire 20 August 2015

  • ILS underwriting scrutinised

    The reinsurance sector is adapting to the influx of alternative capital by providing innovative solutions and lower prices to reinsurance purchasers, S&P notes. However, the agency warns against the growth of the ILS market coming at the expense of looser underwriting discipline and less due diligence.

    As capital enters the reinsurance market, it is creating opportunities for buyers. At the .......

    News 19 August 2015

  • Counterparty-linked review underway

    S&P has placed 70 RMBS, 10 CDO, six CLO and five ABS tranches from European transactions on credit watch negative. The agency's actions are in response to the introduction of bank resolution frameworks in the UK and Germany, and the subsequent lowering of ratings to banks that serve as counterparties to the related transactions.

    S&P lowered the ratings on Barclays, Deutsche Bank and National Westminster .......

    News Round-up 19 August 2015

  • Redemptions hit hedge fund

    Claren Road Asset Management has received around US$2bn in investor redemption notices, according to an SEC filing by parent company Carlyle Group. This figure represents approximately 48% of the hedge fund's AUM, which stood at around US$4.1bn at the end of June.

    The filing notes that the carrying value of the credit hedge funds managed by the firm was US$216m at end-June, making .......

    Job Swaps 19 August 2015

  • Finance practice beefed up

    Allens has bolstered its banking and finance practice with the appointment of Benjamin Downie as managing associate. He joins from Gilbert + Tobin, where he was a special counsel. His experience branches into securitisation and debt capital markets.

    .......

    Job Swaps 19 August 2015

  • Origination model risks weighed

    CommonBond's first private student loan ABS transaction has credit risks similar to those of other securitisations backed by loans offered via marketplace lending platforms, reports Moody's. However, the credit quality of CommonBond's loans is of a similarly high quality to that of SoFi's student loan ABS (SCI 30 July).

    In the CommonBond Student Loan Trust 2015-A (CBSLT 2015-A) transaction, Wisconsin-based .......

    News Round-up 19 August 2015
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