ABS

  • 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

  • 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
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