ABS

  • Uptick for European secondary

    With the UK public holiday the European secondary securitisation markets remained extremely quiet yesterday, but activity should see an uptick today.

    With the Greece story still rumbling on in the background, focus is, for now, on the two BWICs scheduled for trade today so far. One is the previously mentioned re-scheduled CLO list due at 14:30 London time; the other .......

    SCIWire 5 May 2015

  • Euro secondary on hold

    The European secondary securitisation markets are now effectively on hold until Tuesday.

    With European and/or UK public holidays today and Monday and another EU-Greece meeting tomorrow, unsurprisingly yesterday saw no major change in the patterns seen in recent days and looks set to remain the same today. Flows were again light yesterday, but spreads held up with the exception of .......

    SCIWire 1 May 2015

  • Challenger card risks examined

    The credit card pools of UK non-high street bank lenders - also known as challenger banks - entail additional risks than those of established originators, says Moody's. As a result, challenger entrants' transactions usually require additional mitigants to achieve the agency's Aaa rating.

    "We undertake a closer analysis of certain risks for the pools of new entrants, or issuers with .......

    News Round-up 30 April 2015

  • Euro ABS/MBS unsettled

    The European ABS/MBS secondary market has become unsettled as broader market volatility spikes, but for now spreads are holding firm.

    A mix of the sell-off in Bunds and month- and week-end for most of Europe limited flow trading activity across European ABS/MBS yesterday. BWICs generally traded in line with expectations though some Spanish names took a hit. Overall, spreads held .......

    SCIWire 30 April 2015

  • Euro secondary takes back seat

    Activity is on the rise in European securitisation secondary markets this week so far, but the primary market is still traders' main focus.

    "BWICs picked up a bit yesterday and flows were reasonable," says one trader. "ABS/MBS Secondary is still taking a little bit of a back seat to primary where the Warwick print was the main talking point yesterday .......

    SCIWire 29 April 2015

  • 'Green' securitisation supported

    The European Commission's Directorate-General on Climate Action has released a policy paper, entitled 'Shifting Private Finance Towards Climate-Friendly Investments', which considers using securitisation as a financing tool for green investments. The report focuses on mobilising institutional investors to provide capital for such investments.

    The study examines current demand for climate-friendly investment; current channels of supply for climate-friendly investment; barriers to .......

    News Round-up 28 April 2015

  • China SME securitisation 'credit positive'

    Moody's says that securitisation of Chinese SME and micro loans, a sector traditionally underserved by Chinese banks, is credit positive. Securitisation could diversify funding channels to SME and micro enterprises and pave the way for internet finance providers to grow into privately-owned commercial banks in China.

    Ant Micro Loan, an affiliate of Alibaba, in December 2014 became one of the .......

    News Round-up 28 April 2015

  • Spanish law boosts ABS

    Spain's new securitisation law will provide a more flexible framework for transactions, observes Moody's. The agency believes that this will be beneficial for new Spanish issuance across the ABS and covered bond markets.

    "The new law seeks to consolidate existing securitisation regulation, bring the Spanish legal system in line with its European counterparts and bolster transparency and investor protection," says .......

    News Round-up 28 April 2015

  • Standardisation, transparency promoted

    The CFA Institute says that policy recommendations contained in its new study on shadow banking are particularly relevant for the EU's Capital Markets Union project in terms of facilitating markets-based finance to revive the economy (SCI 18 February). Of note, the study suggests that securitisation policy initiatives should focus on increasing standardisation and simplification of issuance structures, as well as .......

    News Round-up 28 April 2015

  • Euro ABS/MBS picking up again?

    The European ABS/MBS secondary market continues to keep one eye on primary, but there are signs that activity is beginning to pick up again.

    "It was very quiet again yesterday, but activity looks to be picking up today helped by a few more BWICs coming out," says one trader. "That said, there's still a strong focus on primary with the .......

    SCIWire 28 April 2015

  • Euribor goes below zero

    Last week, three-month Euribor entered negative territory for the first time. As one-month Euribor was already negative, more than half of the available distributed European ABS market is now affected by negative interest reference rates.

    The three-month reference rate is now -0.002. One-month Euribor is -0.034, while six-month and 12-month both remain positive, at 0.066 and 0.173, respectively.

    As interest .......

    News 27 April 2015

  • APAC ratings remain stable

    Fitch reports that 243 Asia Pacific structured finance tranches were affirmed in 1Q15. Rating actions in Australia and New Zealand were once again supported by strong economic performance, with most ratings reviewed during the quarter being affirmed, contributing to 90% of the total affirmations in the region. In addition, nine Australian tranches were upgraded.

    In Japan, 11 ratings were affirmed, .......

    News Round-up 27 April 2015

  • SLABS EOD likelihood gauged

    Approximately US$7bn FFELP student loan ABS bonds tracked by JPMorgan ABS strategists have a legal final maturity date that is within the next five years. At current speeds, the strategists expect most of the outstanding bonds with final maturities that are within the next three years to pay off without triggering an EOD. Only one of the bonds in their .......

    News 27 April 2015

  • Euro CLO BWIC bandwagon rumbles on

    As expected Friday was a comparatively quiet day across European secondary securitisation markets, but today sees the European CLO BWIC schedule take the lead once more.

    The end of week drop in European BWIC volume had a knock on effect in flow trading - diminishing volumes there as well. Nevertheless, the usual pockets of activity surrounding autos, CLOs and prime .......

    SCIWire 27 April 2015

  • SME issuance faces obstacles

    Public issuance of European SME CLOs is currently hindered by two main obstacles, says Scope Ratings. One of these is the regulatory framework surrounding capital charges and liquidity coverage ratios, which make SME CLOs less appealing to institutional real money investors than other products, such as covered bonds.

    In addition, the ECB eligibility rules under the repo collateral framework favour .......

    News Round-up 24 April 2015

  • Euro secondary staid but stable

    Yesterday was quieter in European secondary securitisation markets than previous days and spreads remained stable. Today looks set to be the same with a limited total volume on the BWIC calendar and the market opening flat this morning.

    Yesterday's quieter day was partly a result of very heavy focus on the previously mentioned 14:00 peripheral BWIC, for which the covers .......

    SCIWire 24 April 2015

  • Euro decline sparks SME benefits

    SMEs in the euro area are poised to reap greater potential gains from the falling value of the euro than previously thought, according to Moody's. The sectors that benefit the most could weigh up to about 10% of European SME ABS portfolios.

    "The overall effect of the euro's depreciation is limited on the euro area economy in general and subsequently .......

    News Round-up 23 April 2015

  • SF team strengthened

    TMF Group has appointed Michael Adams as global head of structured finance. He is promoted from regional md for the UK, Ireland and the Channel Islands.

    Prior to TMF Group, Adams was md and business manager for BNY Mellon's corporate trust EMEA structured finance business. He was responsible for the business development, strategy and growth of ABS, MBS and CMBS. .......

    Job Swaps 23 April 2015

  • ILS broker poached

    TigerRisk Partners has appointed Paul Karon as vice-chairman. In his new role, he will be a senior leader, dealmaker, mentor and strategic advisor to the Tiger leadership team. This is the second high-profile hiring by the firm in the last week, following the appointment of Tony Ursano as chairman (SCI 17 April).

    Karon joins from AQR Re, where he was .......

    Job Swaps 23 April 2015

  • Euro ABS/MBS BWICs trade well

    Yesterday saw another active day in European ABS/MBS BWICs with almost all line items trading well.

    "There were a lot of BWICs yesterday and everything traded well, with the big blocks of EPICP DRUM A and WINDM XIV-X B a particular highlight," one trader says. "At the same time, UK non-conforming is feeling softer but the BWIC execution levels of .......

    SCIWire 23 April 2015

  • Europe focuses on BWICs

    Quiet bilateral activity and consequently static spreads are increasing European secondary market focus on BWICs.

    "It's generally pretty static," says one trader. "Greek paper is still drifting downwards but that's pretty much it on light flows."

    The trader continues: "The primary market continues to be active, but it's not having any impact on secondary. A new issue premium is in .......

    SCIWire 22 April 2015
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