ABS

  • TRACE reporting underway

    Yesterday (1 June) marked the first day of ABS transaction data reporting via TRACE, which saw 213 trades with total volume of at least US$614m (original face) being reported, according to Bank of America Merrill Lynch figures. These trades consisted of 151 separate securities with an aggregate original face of at least US$412m and current face of at least US$367m.

    News 2 June 2015

  • Euro ABS/MBS searches for direction

    With low levels of activity and spreads range-bound the European ABS/MBS secondary market is looking to new issuance for a direction.

    "Yesterday was very slow with most players sitting on the sidelines waiting for news on Greece," says one trader. "There is good activity in primary however and most people are looking there for some direction."

    The trader continues: "With .......

    SCIWire 2 June 2015

  • Transparency boost for loan reviews

    The US SEC's Rule 15Ga-2 takes effect for ABS on 15 June. The rule - which requires issuers or underwriters of transactions rated by NRSROs to publish the findings of due-diligence reports on loan quality undertaken by any third-party review (TPR) firms - is expected to increase transparency around credit quality.

    Moody's notes in its Credit Outlook publication that Rule .......

    News Round-up 1 June 2015

  • SLABS acceleration feature added

    Nelnet's latest student loan ABS includes a structural feature that should help mitigate the negative effects of slow FFELP pay-downs, says Moody's in its recent Credit Outlook publication. The underlying collateral in the deal, Nelnet Student Loan Trust 2015-3, consists of FFELP non-consolidation, consolidation and rehabilitated student loans.

    Moody's notes that FFELP student loan borrowers are using repayment plans that reduce or .......

    News Round-up 1 June 2015

  • At a crossroads

    Auto ABS reaching an inflection point?

    The US auto ABS market appears to be approaching an inflection point in fundamentals, with prime auto losses beginning to rise from record lows and subprime losses declining. Such a normalising of credit could help address the negative perception of subprime auto ABS and facilitate investor appetite for the paper.

    "There has been some talk of a current inflection point .......

    News Analysis 1 June 2015

  • Trading duo reunited

    Brean Capital has hired Rich Barry and Reggie Fernandez as mds in its fixed income sales and trading team. The pair will focus on CLOs, CDOs and esoteric ABS.

    Barry arrives from KGS-Alpha Capital Markets, and was also previously head of securitised product sales and trading at Aladdin Capital. Fernandez joins Brean from Canaccord Genuity, but also has experience at KGS, as well as at UBS .......

    Job Swaps 1 June 2015

  • Europe chief hired

    MarketAxess has appointed Scott Eaton as coo for MarketAxess Europe and Trax. In this role, he will oversee business operations for Europe and assist clients in meeting evolving regulatory challenges, reporting to MarketAxess ceo Rick McVey.

    Eaton was most recently md and global head of emerging markets trading at UniCredit. He has also held various other senior positions, including head of .......

    Job Swaps 1 June 2015

  • Euro ABS/MBS stays positive

    The European ABS/MBS secondary market ended last week quietly and looks to be starting the month in a similar fashion, but market tone remains positive.

    In Friday's quiet as anticipated session core prime paper was the main focus for buying interest. The few BWICs there were, mainly revolving around UK bonds, also traded reasonably well.

    Meanwhile, peripherals seem to have .......

    SCIWire 1 June 2015

  • Euro secondary subdued

    A distracted European securitisation secondary market looks to be closing the week in subdued manner.

    With traders distracted by a busy primary market and the large CDO liquidation, for which the results are yet to be released, yesterday's European secondary market was relatively quiet. Month-end today should ensure more of the same.

    Away from the big list the large ABS .......

    SCIWire 29 May 2015

  • Call for clarity on repo eligibility

    Another 31 Spanish prime RMBS and SME ABS bonds were dropped from the ECB's repo-eligible list (SCI 6 March) last week. It appears that the move was due to non-compliance with the subordination rule, which requires that no tranche other than the eligible tranche is given priority over the receipt of principal and interest payments post a delivery of acceleration .......

    News Round-up 28 May 2015

  • Residual value risk examined

    Moody's says that European auto ABS are increasingly exposed to residual value risk through the securitisation of lease products as a means of financing vehicle sales. Residual value transactions will be ineligible for repo with the ECB from August, underlying the importance for investors to be aware of residual value risk (SCI 4 March).

    The growth of residual value exposure in securitisations .......

    News Round-up 28 May 2015

  • Euro ABS/MBS sees weak peripherals

    While broader markets have been boosted overnight by news on Greece, the European ABS/MBS secondary market is still showing signs of peripheral weakness.

    "It's been a slow week but we are bit weaker in Portuguese and Greek names," says one trader. "As a result of peripheral concerns we're seeing customers bringing out more and more paper."

    At the same time, .......

    SCIWire 28 May 2015

  • ABS surveillance standard introduced

    Bishopsfield Capital has introduced a new standard for the surveillance of ABS investments in response to regulatory requirements. The standard entails a number of proposals that attempt to maintain formal monitoring procedures for ongoing, timely surveillance and stress-testing of securitisation investments, as well helping investors avoid stringent penalties for non-compliance.

    "Although guidelines have been set out, regulators have not been .......

    News Round-up 27 May 2015

  • FCA fines investment bosses

    The UK FCA has published notices setting out its decision to fine and prohibit three former members of Keydata Investment Services' senior management from performing any role in regulated financial services. Stewart Ford, Mark Owen and Peter Johnson have received the notices on the accusation of misleading investors, as well as the UK FSA, regarding the performance of certain investment products. The FCA has decided to .......

    Job Swaps 27 May 2015

  • Aircraft debt methodology released

    Kroll Bond Rating Agency (KBRA) has released its methodology for rating enhanced equipment trust certificates (EETC) and secured aircraft debt. The methodology reviews the key risk factors that KBRA considers in rating full-recourse secured aircraft debt instruments issued by airlines and aircraft lessors.

    Of the two corporate secured aircraft-debt types, EETCs are the most common form of publicly issued secured .......

    News Round-up 27 May 2015

  • Euro secondary stays stable

    European securitisation secondary markets are staying stable despite the broader credit market weakness of the past couple of days.

    "Macro noise is keeping investors on the sidelines and there's quite a bit of new issuance to distract from secondary too," says one trader. "However, the general tone remains unchanged and we're still experiencing the status quo of the past couple .......

    SCIWire 27 May 2015

  • Expanding horizons

    China seeking fresh growth opportunities

    The Chinese securitisation market continues to show promising signs of growth. The authorities are now exploring new ways to strengthen the market by involving foreign investment and reinvigorating secondary activity.

    Issuance in the Chinese securitisation market under the country's Credit Asset Securitisation (CAS) programme jumped to approximately CNY280bn in 2014 from CNY16bn in 2013 (SCI 3 March), according to Moody's. .......

    News Analysis 27 May 2015

  • Chinese ABS benefits anticipated

    Fitch suggests that the growth and development of China's ABS market should allow greater operational flexibility for banks in terms of liquidity and capital management, provided that the securitised assets are sufficiently transferred outside of the banking system. The Chinese government has placed increasing emphasis on asset securitisation as a means to free up idle assets within the banking system, .......

    News Round-up 26 May 2015

  • Euro secondary starts settled

    Last week ended quietly as anticipated for European secondary securitisation markets and, following the long weekend either side of the Atlantic, looks likely to begin this in settled form barring any interference from macro-driven volatility.

    Secondary spreads ended last week broadly unchanged on the day on the back of continued light flows. Meanwhile, the few BWICs there were on Friday .......

    SCIWire 26 May 2015

  • CDQ activity picking up

    The Italian Cessione del Quinto (CDQ) market will remain active in 2015 based on cheap available funding and an improved macroeconomic forecast for Italy, says Moody's. Most CDQ transactions are currently either performing in line with, or exceeding, the agency's expectations and arrears are low in absolute terms.

    "CDQ financing represents about 17% of the Italian consumer lending market," says .......

    News Round-up 22 May 2015

  • Private debt pro moves

    Eiffel Investment Group has hired Mathias Choussy as part of its credit team. He arrives from Federis Gestion d'Actif, where he was responsible for private placements activity, particularly with co-managing investments in private credit instruments issued by European mid-caps.

    Choussy has also held a number of senior roles that encompassed portfolio management and research in the investment grade, high yield and securitisation markets. The firms .......

    Job Swaps 22 May 2015
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