ABS

  • Euro ABS/MBS hindered

    The risk-off attitude across the European ABS/MBS secondary market is continuing to hinder activity.

    "Liquidity is pretty terrible at the moment," says one trader. "The tone of the market is generally weak with concerns about Greece hampering broader markets and ABS specific issues around the disappointment over the ABSPP."

    BWICs continue to be churned out however and are going through .......

    SCIWire 10 June 2015

  • Spanish legal exceptions highlighted

    Scope believes that the new Spanish corporate finance promotion law (Ley 5/2015 de fomento de financiación empresarial) governing changes to corporate financing allows for more flexible financing of Spanish SMEs and, in certain cases, may positively affect their creditworthiness. The main purpose of the new law is to promote financing of Spanish SMEs by making it both more accessible and .......

    News Round-up 9 June 2015

  • ABS, RMBS principal losses drop

    Moody's expects the resilience of senior European ABS and RMBS tranches to deterioration in collateral performance and counterparty risk to continue this year. None of the European ABS and RMBS bonds that the agency has rated triple-A have incurred principal losses to date.

    "On the back of macroeconomic re-balancing, we expect the number of notes that are likely to incur .......

    News Round-up 9 June 2015

  • Euro secondary stabilises

    After a week of softening and amid continued broader market volatility the non-peripheral European securitisation secondary markets stabilised yesterday and have opened unchanged this morning.

    "It was a bit more active yesterday and the market appears to have stabilised," says one trader. "We saw two-way flows in quite a few sectors, though mainly in prime paper - from autos, to .......

    SCIWire 9 June 2015

  • Euro ABS/MBS mixed

    Despite wider market volatility and an overall weakening tone European ABS/MBS secondary market sectors continue to see mixed fortunes.

    The latter half of last week saw an upswing in BWIC supply, but was not met with sufficient demand as many line items did not trade. Overall market tone softened on the back of Greek concerns and broader credit weakness, but some sectors .......

    SCIWire 8 June 2015

  • Auto ABS recoveries divided

    Moody's assumes that European auto ABS presents higher recovery rates in its core markets compared to those markets in the periphery. A key determinant in the agency's recovery rate assumptions is the security interest in the underlying vehicle that vests with the issuer, which happens to vary in European markets.

    In the main auto ABS markets, such as Germany, the UK and France, .......

    News Round-up 4 June 2015

  • Asset finance pro rejoins bank

    Credit Suisse has rehired Vaibhav Piplapure as md to run its European asset finance business. He joins the bank after working in asset management for KKR. Prior to this, Piplapure was head of structured and illiquid credit at Avoca Capital, as well as head of global credit solutions and European asset finance for Credit Suisse in his first stint at the .......

    Job Swaps 3 June 2015

  • Rewriting the rules

    Spanish law change boosts securitisation

    Spanish legislators have adopted a new securitisation law, bringing the market more in line with the rest of Europe (SCI 28 April). While the changes are positive and should boost the Spanish ABS market, change on a broader level is also required.

    "The new law 5/2015, published on 28 April 2015, explicitly acknowledges the key role in funding that the .......

    News Analysis 3 June 2015

  • ABSPP purchases revealed

    The ECB yesterday (1 June) published for the first time a detailed breakdown of the ABS holdings under the ABSPP, showing the amount purchased in the primary and secondary markets for each month. Such additional information has been welcomed for bringing the level of disclosure to that the CBPP3, although Barclays Capital European securitisation analysts note that it remains below .......

    News 2 June 2015

  • ETD debt burden lightens

    Moody's reports that new Spanish electricity tariff deficit (ETD) debt for year-end 2014 fell to a 10-year low, at €465m. The agency says this drop could mark a turning point in the Spanish electricity sector's tariff deficit trajectory, helping it to achieve sustainability in the medium term.

    "This figure is merely one-tenth of the yearly deficit levels in preceding years, considering the .......

    News Round-up 2 June 2015

  • Alamo Re upgraded on reset

    Fitch has removed from rating watch positive and upgraded, with a stable outlook, the US$400m Alamo Re series 2014-1 class A notes to single-B plus from single-B. The move follows the resetting of the catastrophe bond's modelled attachment probability to 2.09% from its initial annual attachment probability of 3.80%. The crossover point between single-B and single-B plus on Fitch's insurance-linked .......

    News Round-up 2 June 2015

  • Nordstrom card ABS affirmed

    Nordstrom's recent agreement to sell its existing US Visa and private-label consumer credit card portfolio to TD Bank Group has no immediate impact on the rating of notes issued by the Nordstrom Credit Card Master Note Trust II, according to Moody's. The portfolio currently totals approximately US$2.2bn in receivables.

    Under the agreement, TD Bank USA will become the exclusive US .......

    News Round-up 2 June 2015

  • Elian extends SF footprint

    Elian has opened a new office in New York in an attempt to grow its corporate services, which include corporate structuring, structured finance and asset finance. The firm has hired John Wallace to run the office as md and be responsible for developing a network of clients and intermediaries in the Americas.

    Wallace arrives as a founding member of Guardian Director .......

    Job Swaps 2 June 2015

  • 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
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