ABS

  • CRA code of conduct revised

    IOSCO has published a final report on its code of conduct fundamentals for credit rating agencies (CRAs), which includes significant revisions and updates to the current code. The move follows the organisation's request for comment on proposed changes to the code (SCI 11 February 2014).

    The revisions to the code aim to enhance provisions protecting the integrity of the credit .......

    News Round-up 31 March 2015

  • Reinvestment opportunities limited

    The rest of 2015 will see almost €20bn repaid to European RMBS investors, with around 75% coming from UK prime and Dutch RMBS. While months with large redemptions can be expected to coincide with investors looking to reinvest, those investors are likely to remain starved of paper.

    The €20bn yet to be repaid this year excludes master trusts, with a .......

    News 31 March 2015

  • Euro ABS/MBS keeps quiet

    Month-end and a lack of substantial BWIC volume are keeping the European ABS/MBS secondary market quiet, but there are still patches of activity.

    "It was very quiet yesterday as you'd expect with month-end and a short week and today looks to be more of the same," says one trader. "That said, we got quite a bit done yesterday around the .......

    SCIWire 31 March 2015

  • US lodging fundamentals supported

    Fitch suggests that accelerating US GDP growth and low levels of new supply will support strong US lodging industry fundamentals during 2015. Robust demand has boosted occupancy rates, providing hotels with material pricing power, while US RevPAR is expected to increase by 6% this year based on a 1% occupancy gain and 5% average daily room rate growth.

    Trailing 12-month .......

    News Round-up 30 March 2015

  • Euro ABS/MBS slows

    The European secondary securitisation market appears to be slowing into month- and quarter-end.

    Friday saw a late flurry of activity after a sizeable mixed BWIC went through at 15:00 and drove some activity off the back of it. This went some way to redressing the slightly softer tone that had been emerging in ABS/MBS secondary, albeit without any major spread .......

    SCIWire 30 March 2015

  • Bank names team leader

    Miray Muminoglu has joined Barclays' treasury capital markets execution team to head up its long term unsecured funding and capital issuance capability. He will begin in April and will replace Jennifer Moreland, who was promoted to head of capital and leverage management.

    Muminoglu moves from his position as director on the fixed income syndicate desk for Barclays, where he focused .......

    Job Swaps 27 March 2015

  • Spanish spending to boost ABS

    Stronger household spending will contribute to Spain's economic recovery and support SMEs, says Moody's. This, in turn, should benefit ABS backed by SME loans.

    Household spending grew by 2.4% in 2014, outpacing economic growth, notes Moody's. Consumer confidence is also at its highest peak in a decade.

    The rating agency notes that a positive consumer outlook is likely to keep .......

    News Round-up 27 March 2015

  • Economy supporting UK auto ABS

    Improving macroeconomic and lending trends and healthy signs in the underlying auto market continue to support the UK auto ABS market, says Bank of America Merrill Lynch. New passenger car registrations continue to grow faster than most of the other major European markets, with total registrations in the 12 months up to February 2015 9.5% higher than the previous 12 .......

    News Round-up 26 March 2015

  • Proposed bill could add to SLABS risk

    The introduction in the US of the Bank on Students Emergency Refinancing Act of 2015 by Senator Elizabeth Warren and Representative Joe Courtney is the latest in a series of moves to modify the treatment of student loans in the bankruptcy process. Barclays Capital analysts believe this could pose headline risks for student loan ABS and could act as a .......

    News Round-up 26 March 2015

  • Euro investors weigh UK opportunities

    European investors are increasingly looking beyond euro-denominated assets in the search for yield. UK pound-denominated ABS is up 69% from last year and accounts for over a quarter of total placed European issuance year-to-date.

    New lending by challenger banks and the ECB-induced scarcity of high-yielding assets have improved UK issuance prospects. If investors do rotate from low yielding euro assets .......

    News 26 March 2015

  • Credit card issuance starts slowly

    US credit card ABS supply so far this year is half what it was at the same time in 2014, but this is anomalous for US ABS as a whole, as JPMorgan figures put non-card ABS supply at US$46.4bn for the year so far, having only hit US$38.5bn in the same period of 2014. By contrast, credit card ABS supply .......

    News 26 March 2015

  • Tax impact 'limited' on Japan auto ABS

    A 50% increase in Japan's ownership tax for mini-vehicles from April to ¥10,800 (US$90) a year will have a limited impact on the performance of new auto loan ABS, says Moody's. Although mini-vehicles account for approximately 40% of new car sales in 2014 in Japan, the agency says that the tax amount is still relatively low.

    Furthermore, Moody's says that .......

    News Round-up 25 March 2015

  • Oil prices mildly positive for Euro ABS

    The sharp fall in oil prices will have a positive, yet limited, credit impact for most European ABS collateralised by loans granted to SMEs, Moody's says. However, the agency observes that securitised portfolios have very low direct exposure to the oil and gas industries, for which lower prices are credit negative.

    For pools where borrowers are indirectly exposed to these .......

    News Round-up 25 March 2015

  • Euro ABS/MBS supply keeps coming

    The European ABS/MBS secondary market is continuing to see healthy BWIC supply and to absorb it well.

    "We've seen plenty of supply from BWICs every day this week including today, but secondary ABS tone is still firm," says one trader. "Primary has been active too, but we're seeing no real softening as a result."

    ABS/MBS secondary has also remained insulated .......

    SCIWire 25 March 2015

  • Card ABS to withstand slow rate rise

    US credit card ABS performance should remain stable during a gradual interest rate rise, says Fitch. The agency expects the US Federal Reserve to start raising interest rates in mid-2015 and to follow a gradual tightening path, leading to 2% at year-end 2016.

    Credit card ABS metrics for the February reporting period could weaken slightly in line with seasonal trends, .......

    News Round-up 24 March 2015

  • Euro ABS/MBS themes continue

    Recent themes in the European ABS/MBS secondary markets are continuing.

    "Overall yesterday was very quiet, but where there was activity we saw a continuation of recent trading themes," says one trader. "For example Dutch prime moved in another 1-2bp, so it's very tight now - we're heading towards the mid-to-high teens for three-year bonds."

    Elsewhere, activity was patchy, the trader .......

    SCIWire 24 March 2015

  • Upgrades could follow risk rethink

    Moody's has updated its methodologies for rating US and Canadian credit card receivables-backed securitisations to reflect changes in how the agency measures the sponsor risk of default in relation to the exposure that credit card ABS transactions have to entities of banking groups. As a result several classes of notes have been placed under review for upgrade.

    The rating agency .......

    News Round-up 23 March 2015

  • Euro BWICs pick up again

    The European BWIC calendar is picking up again for today and the remainder of this week.

    As was the case for most of last week BWICs look set to drive activity in secondary today. The bulk of line items on Friday's limited calendar traded in line with expectations and activity across the board on the day was positive but muted .......

    SCIWire 23 March 2015

  • IG rating for Kizuna cat bond

    S&P has preliminarily assigned its first investment grade rating - of triple-B minus - to a property-related natural catastrophe bond since 2008. Arranged by Aon Benfield Securities, the Kizuna Re II series 2015-1 transaction covers losses resulting from Japanese earthquakes, including fire following, tsunamis and volcanic eruption.

    S&P says the rating is based on the lowest of the natural catastrophe .......

    News Round-up 20 March 2015

  • Chinese auto defaults 'very low'

    Fitch says that the cumulative default levels of Chinese auto loan ABS transactions in January remain very low at between 0.07% and 0.5%, based on trustee reports for the collection period. While all programmes are performing within expectations, a substantial divergence in performance can be observed between different transactions.

    Fitch believes a growth slow-down in the Chinese economy - which .......

    News Round-up 20 March 2015

  • Euro secondary cools

    After a busy week the European secondary securitisation markets saw a quieter day yesterday and today looks likely to cool still further.

    Again, the bulk of yesterday's action surrounded BWICs most of which traded in line with expectations. Away from the lists it was major UK RMBS names that saw the most investor interest.

    Today, the tone remains positive, but .......

    SCIWire 20 March 2015
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