ABS

  • Greater supply, risks widen spreads

    New issue spreads for RMBS and CMBS deals are widening on either side of the Atlantic as supply remains higher than demand. It appears to be a trend that will last beyond the usual summer slump.

    "There is a very large pipeline of expected deals, but a shortage of investors lining up for them," says one European ABS trader. .......

    News 12 August 2015

  • FFELP fix?

    Market dialogue, transparency set to avert SLABS crisis

    Market participants appear confident that a fix for a significant portion of the US$36.8bn of FFELP student loan ABS bonds on review for downgrade by Moody's can be found during the comment period for its proposed criteria update, which closes on 7 September (SCI 10 July). At the same time, efforts are underway to increase transparency around the historically complex .......

    News Analysis 12 August 2015

  • Euro secondary limps on

    Despite broader market volatility the European securitisation secondary market continues to limp along on very thin volumes.

    "There's not a great deal happening with only a few BWICs and a couple of OWICs due all this week," says one trader. "We're fully into summer and the weaker macro picture isn't helping."

    So far, the European ABS/MBS market has been insulated .......

    SCIWire 12 August 2015

  • Credit manager brought back

    Terrence Matthews has rejoined Millenium Capital Partners as credit portfolio manager. He arrives after serving in the same role at Arrowgrass Capital Partners, as well as for Millennium during his first stint at the firm. Mathews has also been md at UBS and Toronto Dominion Bank, and has previous experience in structured products and credit derivatives.

    .......

    Job Swaps 11 August 2015

  • Counterparty risk approach finalised

    Scope has published its final rating approach for counterparty risk in structured finance transactions. The methodology analyses whether additional credit risk is introduced into a structured finance transaction by financial or operational counterparty exposures, and considers post-crisis realities that result in the limited likelihood of banks defaulting within a short timeframe.

    Scope notes that counterparties, being both financial institutions with .......

    News Round-up 11 August 2015

  • Guggenheim settles fiduciary breach

    Guggenheim has agreed to pay a settlement fee of US$20m to the US SEC following charges that it breached its fiduciary duty. The settlement is believed to be the culmination of a four-year probe into the firm's relationship with Michael Milken.  

    According to the SEC's charges, Guggenheim failed to disclose a US$50m loan that one of its senior executives received from an advisory .......

    Job Swaps 11 August 2015

  • FFELP trust trio called

    Navient has exercised call options on three FFELP student loan ABS trusts that represent a total of US$216m in bonds. The three trusts - SLM Student Loan Trusts 2002-6, 2003-8 and 2003-9 - will now be repaid on 15 September.

    "The exercise of our option represents our continued support of an active and liquid student loan ABS market," says Jack Remondi, president and ceo of .......

    News Round-up 11 August 2015

  • Euro secondary winds down

    The European securitisation secondary markets continue to wind down as seasonal factors hold sway.

    "We're really in summer mode now with not a lot of flows," says one trader. "Activity is down to a minimum with little BWIC supply and no major credit news to stimulate trading."

    One piece of relevant news did however come from the similarly quiet primary .......

    SCIWire 11 August 2015

  • ILS team formed

    Lombard Odier Investment Managers (LOIM) has recruited an ILS team that includes Gregor Gawron, Simon Vuille and Marc Brogli. Based in Zurich, the team will report to LOIM cio Jan Straatman.

    The team will pursue a wide-ranging approach, targeting different risk types and regions. Straatman says that the team will target cat bonds due to their higher starting yield and floating rate coupon .......

    Job Swaps 10 August 2015

  • Alternative finance growth predicted

    European institutional investors predict that the alternative finance market will grow by 23% over the next two years, according to a new study by Amicus Finance. This could be driven by the demand for expansion finance by SMEs, which is already generating momentum with a number of recent financing initiatives (SCI passim).

    In total, just under three-quarters (73%) of institutional .......

    News Round-up 10 August 2015

  • Timeshare delinquencies at record low

    US timeshare ABS delinquencies fell again this past quarter to their lowest level in eight years, reports Fitch. Total delinquencies for 2Q15 were 2.66%, down from 2.79% in 1Q15 and 2.92% observed in 2Q14.

    The trend continues a consistent year-over-year improvement since 2012, as defaults also decreased to 0.57% in 2Q15. This figure is down from 0.67% in 1Q15 and 0.66% a .......

    News Round-up 10 August 2015

  • Euro secondary limited

    Activity in the European securitisation secondary market remains limited as seasonal illiquidity prevails.

    Nevertheless, Autos alongside Dutch and UK prime continue to see some signs of life. At the same time, there is selective demand for Italian, Portuguese and Spanish paper.

    Today, currently sees one BWIC on the schedule - at 14:30 London time there is a single €700k line .......

    SCIWire 10 August 2015

  • Small strides

    Non-bank lending key to SME securitisation?

    SMEs continue to be billed as the backbone of the European economy, as a number of initiatives seek to remedy the lack of traditional bank support for the sector. Securitisation is expected to play a key role in this process, but a number of obstacles must be overcome if it is to make a significant contribution.

    "Although direct lending has .......

    News Analysis 7 August 2015

  • Rating correlations analysed

    S&P has published four reports illustrating how ratings on European ABS, CMBS, RMBS and structured credit transactions may change over time. The agency's analysis includes sensitivity of ratings to underlying analytical assumptions, as well as a discussion of how various market developments that move parameters built into the rating analysis may influence credit ratings.

    S&P notes that its European structured finance .......

    News Round-up 7 August 2015

  • HQLA impact gauged

    Global capital requirements have the potential to become impediments to providing financing via securitised products, S&P notes. Of particular focus among market participants recently are various regulators' evaluations of what actually constitute high-quality liquid assets (HQLA) in order to calculate the Basel 3 liquidity coverage ratio (LCR) and associated market value haircuts.

    "Many regulators seem to have interpreted what high-quality .......

    News Round-up 7 August 2015

  • MSA payments move up

    Fitch has completed its annual review of US tobacco ABS ratings accounting for the amount of Master Settlement Agreement (MSA) payment received by each trust in 2015. The aggregate MSA payment was 0.36% higher this year than the amount in 2014.

    Fitch is placing 66 tranches on rating watch negative due to the pending outcome of the tobacco criteria revision. .......

    News Round-up 7 August 2015

  • Mortgage insurance cat bond closed

    AIG's mortgage insurance business United Guaranty Corp (UGC) has completed a novel ILS that funds US$298.9m of indemnity reinsurance for a portfolio of mortgage insurance (MI) policies issued from 2009 through 1Q13. Dubbed Bellemeade Re series 2015-1, the Bermuda-domiciled special purpose insurer issued three classes of 10-year notes.

    The US$140.17m class M1 notes priced at one-month Libor plus 250bp, the .......

    News Round-up 7 August 2015

  • ABS lawyers promoted

    Katten Muchin Rosenman has named nineteen new partners, among them Christina Burgess and Don Macbean for structured finance and securitisation. Burgess' experience includes ABS and MBS, with an emphasis on prime and sub-prime automobile loan and lease, dealer floorplan receivable and equipment lease securitisations and warehouses. Macbean's practice encompasses structured energy and commodity-related transactions, market-value CLOs and structured derivatives transactions.

    .......

    Job Swaps 7 August 2015

  • Compliance partner named

    Dentons has appointed Joshua Jordon as a partner in its capital markets practice. He joins from American Mortgage Consultants (AMC), where he was svp, general counsel and compliance officer. In his new role, Jordon will focus on mortgage banking and consumer finance regulatory matters as part of Dentons' regulatory compliance group.

    At AMC, he regularly advised on complex mortgage banking .......

    Job Swaps 7 August 2015

  • Structured products pair recruited

    Schulte Roth & Zabel has hired Boris Ziser and Thomas Weinberger as partners in the firm's structured products and derivatives group. Both arrive from Stroock & Stroock & Lavan.

    Ziser, who will co-head the group, has expertise in public and private ABS, warehouse facilities, secured financings and commercial paper conduits. His practice encompasses a variety of asset classes, including life settlements, equipment leases, .......

    Job Swaps 7 August 2015

  • Law firm continues SF push

    Bryan Cave has appointed Rachel Kelly as a partner in its financial services group. She arrives from Macfarlanes, where she had been head of structured finance and capital markets, having previously been a partner in Clifford Chance's structured debt group.

    Kelly specialises in structured finance and debt capital markets, particularly CLOs. She advises clients on a number of areas, including real estate finance, infrastructure and .......

    Job Swaps 7 August 2015
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