ABS

  • 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

  • French ABS 'resilient'

    Fitch says that French ABS transactions have shown strong resilience, despite a weak economic environment. This is due to a protective French consumer legislative and regulatory environment and strong structural features that characterise French consumer ABS transactions.

    The last consumer protection measures introduced by the Lagarde law and the Hamon law aimed to limit risk of over-indebtedness and enhance borrowers' .......

    News Round-up 19 March 2015

  • Euro secondary flows building

    Two-way flows in the European secondary securitisation market are continuing to build this week.

    "It's been very busy the last couple of days with a lot of BWICs and we're seeing flows building around that," says one trader. "There's been activity in peripherals, SMEs, UK non-conforming, CMBS - across the board really. Overall, the secondary market is continuing to take .......

    SCIWire 19 March 2015

  • MBO for fund services unit

    TMF Custom House management is set to buy back the majority of TMF Group's holdings in the Custom House Fund Services business just over a year after it was sold (SCI 18 February). Subject to regulatory approval, the business will be run as an independent, stand-alone entity by Mark Hedderman, Custom House ceo, and James Osborne, a Custom House director. .......

    Job Swaps 19 March 2015

  • ILS gets Budget boost

    In its 2015 Budget, the UK government announced that it will work with the industry and regulators to develop a new competitive corporate and tax structure for allowing insurance-linked securities to be domiciled in the UK. The move comes after the government said in the Autumn Statement 2014 that it would explore options to attract more reinsurance business to the .......

    News Round-up 19 March 2015

  • Decentralised servicing presents risks

    Decentralised servicing models in consumer loan ABS increase operational and performance risk in the event that the servicer can no longer perform its function, says Moody's. However, the agency suggests that these models are effective at originating loans, due to the higher level of personal interaction between the branch and the borrower.

    When operating smoothly, decentralised servicing models can help .......

    News Round-up 18 March 2015

  • Euro primary drives secondary

    The European secondary securitisation markets are being driven by new issuance activity

    "We're taking our direction from the primary market, but secondary tone remains positive," says one trader. "For example, the initial wider guidance on the latest Paragon deal weakened secondary buy-to-let, but the deal priced tighter and then tightened on the break yesterday causing secondary spreads in the sector .......

    SCIWire 18 March 2015

  • SF vet poached for Italian expansion

    Stormharbour Securities has hired Michele Rolleri as a partner and md. He will focus on expanding the firm's presence in the Italian market, which will include advising on securitisation.

    Before joining Stormharbour, Rolleri was a board member and co-head of capital market commission at Assiom Forex. Prior to this, he was managing partner for Eidos, where he specialised in structured .......

    Job Swaps 17 March 2015

  • Fee cap impact anticipated

    The European Parliament last week voted to cap interchange fees in credit and debit card transactions across the EU. Since the move is the culmination of long-standing regulatory pressure, Fitch says it has already been anticipated in the agency's UK credit card ABS ratings.

    Interchange fees will be capped at 0.3% of the transaction value for consumer credit cards and .......

    News Round-up 17 March 2015

  • SLABS forbearance eyed

    The Obama Administration last week released a Presidential Memorandum directing the US Department of Education and other federal agencies to do more to help borrowers with their student loan repayments. Structured product strategists at Wells Fargo suggest that the proposals are unlikely to have a significant effect on expected student loan ABS cashflows or prepayment rates, unless forbearance policy changes .......

    News 17 March 2015

  • Euro ABS/MBS gets some momentum

    The European secondary ABS/MBS market is being given some momentum again today thanks to primary activity and an uptick in BWICs.

    "Supply has slowed down this week on BWICs after last week's high levels of activity, though there are a few now scheduled for today," says one trader. "At the same time, primary is really picking up, which is good .......

    SCIWire 17 March 2015

  • Counterparty risk assessments applied

    Moody's has revised a number of its methodologies - including several cross-sector, primary and secondary rating methodologies for structured finance (SF) securities - to reflect the incorporation of bank counterparty risk (CR) assessments in the analysis of certain transactions. The move follows an RFC on the proposals issued in January (SCI 8 January).

    CR assessments constitute Moody's opinion of probability .......

    News Round-up 16 March 2015

  • Low oil prices to benefit ABS

    Moody's expects the dramatic drop in oil prices since 2014 to benefit most asset classes in the US ABS market, though it will have a negative impact on some sectors. In general, cheaper gasoline will put more money in consumers' pockets, providing a broad, if slight, uplift to securitisations backed by unsecured consumer receivables such as student loans and credit .......

    News Round-up 16 March 2015

  • Euro ABS/MBS stays positive

    The positive tone in European ABS/MBS continued through to the end of last Friday and into today's open.

    Another healthy BWIC calendar on Friday appears to have been comfortably absorbed by the market though no covers have yet been released for the large CDO liquidation list. Market tone remained positive across the board with Portuguese paper the main beneficiary.

    Today .......

    SCIWire 16 March 2015

  • Liquidation list looms

    The hectic pace in European secondary securitisation markets looks set to continue today with six BWICs currently due, but of those a large CDO liquidation list will dominate attention.

    Despite the heavy volume of BWICs yesterday, the market absorbed the supply and the majority of line items traded well. Off-BWIC the tone was also positive particularly for Portuguese and UK .......

    SCIWire 13 March 2015

  • Securitisation aiding US economy

    Securitisation continues to contribute a significant share of funding to the US economy. Moody's cites as an example the fact that US businesses turned to CLOs and CMBS for US$208bn worth of capital and liquidity last year - representing nearly half of US securitisation volume in 2014 - which helped fund bank loans to commercial enterprises and CRE.

    "The virtual .......

    News Round-up 12 March 2015

  • Ready for take-off

    Aircraft ABS building momentum

    After a flurry of deals at the end of last year and another one issued last month, aircraft ABS appears to be shrugging off the esoteric label and establishing itself as an asset class in its own right. The sector has a track record that investors can analyse and is showing signs of diversity in both structure and collateral.

    "Aircraft .......

    News Analysis 12 March 2015

  • Green power

    Renewables securitisation gaining traction

    A number of initiatives in the US harness securitisation technology to facilitate the growth of the green energy market. The common challenges faced by these efforts are asset scalability and contract standardisation.

    In the context of renewables securitisation, the similarities and differences between assets in a pool need to be as known and as clear as possible, according to Crowell .......

    News Analysis 12 March 2015

  • Euro secondary BWICs surge

    European secondary securitisation markets continue to be focused on BWICs as today sees especially heavy volumes.

    There are already more than ten ABS/MBS BWICs circulating for trade today accounting over a 100 line items. "There is a wide mix of sellers including asset managers and hedge funds across a wide range of assets, plus there are a few CLO lists .......

    SCIWire 12 March 2015

  • Russian arrears, defaults to be limited

    Moody's expects any rise in arrears and defaults in Russian securitised mortgage and consumer loans to be limited in 2015. This is despite the looming possibility of a recession of a greater magnitude than that experienced during the 2009 sovereign debt crisis.

    "The underlying loan characteristics support borrowers' ability to repay, with fixed interest rates for life and modest loan-to-value .......

    News Round-up 11 March 2015

  • Platform adds ratings data

    ClearStructure Financial Technology has made Fitch Solutions' full suite of global credit ratings data available to its clients via the Sentry PM portfolio management platform. The data includes structured finance ratings and will be available on the Sentry platform for asset managers, CLO managers, hedge funds and loan traders.

    .......

    News Round-up 11 March 2015
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