ABS

  • Slow pay-downs spur SLABS default risk

    Some FFELP student loan ABS are at risk of default because certain tranches are not amortising fast enough to pay off by their final maturity dates, Moody's reports. The slow pay-down speed is a result of loan repayment trends that began during the financial crisis and have been accelerated by newer programmes to ease burdens on borrowers.

    The percentage of .......

    News Round-up 17 April 2015

  • GE sales spark servicing concerns

    Moody's says that General Electric's divestiture of most of its GE Capital unit will impact ABS that the unit sponsors, due to the potential transfer of servicing in the transactions to other entities. The asset sales are expected to affect three ABS sectors, in particular - asset-based loans, floorplan loans and equipment loans/leasing.

    GE Capital has issued about US$4.8bn in .......

    News Round-up 17 April 2015

  • Structuring heads on the move

    Citi has hired Olivier Renault as head of financial institutions solutions for EMEA. He was formerly head of structuring and advisory at Stormharbour Securities and has been subsequently replaced in this role by Francesco Dissera.

    Before Stormharbour, Renault was a director in global structured credit products at Citi and was also previously associate director for S&P's risk solutions services.

    Dissera .......

    Job Swaps 17 April 2015

  • Euro peripherals weaken

    Concerns over Greece have finally fed into the European ABS/MBS secondary market.

    Amid a short spike in activity on- and off-BWIC yesterday the bulk of peripheral bonds saw a weaker tone. Greek assets inevitably led the way with GRIF 1 A dropping two points before recovering by a half to close in the 65 area.

    Portuguese and Spanish spreads have also .......

    SCIWire 17 April 2015

  • Corporate trust survey launched

    SCI's 2015 European Corporate Trust Survey is open for participation (click here to take part). The survey is an in-depth questionnaire that seeks to identify which corporate trust service providers offer the best-in-class services across a number of key delivery areas focused on the ABS market.

    The aim of this exercise is to enable clients of trustees to .......

    News Round-up 16 April 2015

  • ABSPP rethink proposed

    While the ECB's ABSPP has brought benefits to the market, it has also underwhelmed. Increasing transparency could do more to support the recovery of eurozone ABS and translate into improved credit flows to the real economy.

    ECB purchases after the first full quarter of ABSPP activity have been put at €4.89bn by JPMorgan analysts. As a proportion of the distributed .......

    News 16 April 2015

  • ILS pair named co-ceos

    Willis Group has promoted Rafal Walkiewicz and Michael Guo to co-ceos to lead Willis Capital Markets & Advisory. They will succeed Tony Ursano.

    Walkiewicz joined WCMA as md in 2014 from Goldman Sachs, where he served as md in the bank's financial institutions group. Guo joined the firm in 2013 as WCMA's head of Asia, having been a partner and .......

    Job Swaps 16 April 2015

  • Korean ratings window widened

    Moody's says that Korean cross-border structured finance transactions can now achieve triple-A ratings if they benefit from external enhancement mechanisms that cover currency transfer and convertibility risks. This follows the agency's raising of Korea's local currency country risk ceiling to triple-A, although Korea's foreign currency bond ceiling remains at Aa1.

    Moody's explains that Korean structured finance transactions will in general .......

    News Round-up 16 April 2015

  • Prime focus for European ABS/MBS

    The European ABS/MBS secondary market continues to be reasonably active with prime paper being the main focus.

    "Overall, the market remains quite positive and flows are picking up," says one trader. "They are still mainly concentrated in the prime segment where spreads are unchanged but there is plenty of activity with real money participating."

    In contrast, the trader says: "UK .......

    SCIWire 16 April 2015

  • Community lending initiative launched

    Lending Club and Citi are launching a new partnership with Varadero Capital to facilitate up to US$150m in loans designed to provide more affordable credit to underserved borrowers and communities. Renaud Laplanche, Lending Club ceo and founder, says the partnership will attempt to aid banks in enhancing community lending efforts for low- and moderate-income families.

    Citi Community Capital is the .......

    News Round-up 15 April 2015

  • EMEA auto ABS surveyed

    Fitch says that transactions across the most active auto ABS jurisdictions in the EMEA region share many key building blocks, such as asset characteristics and origination practises, and risk drivers in the form of obligor defaults and car market values. However, each country also has unique features that can influence transaction performance, including tax risks in Germany, voluntary termination risk .......

    News Round-up 15 April 2015

  • Rate hikes to trouble CMBS, RMBS

    Faster increases in interest rate rises by the US Fed and a corresponding shock to the economy would likely leave most US structured finance (SF) ratings untouched, according to Fitch. However, it could slow the refinancings that will be crucial to the CMBS market and could hurt some RMBS deals that include legacy adjustable-rate mortgages.

    Fitch expects the Fed's actual .......

    News Round-up 15 April 2015

  • Euro ABS/MBS ticks over

    Dynamics in the European ABS/MBS secondary market remain unchanged as it continues to tick over.

    "We've been pretty busy over the last few days with the usual dynamics in evidence," says one trader. "Tone seems OK, the ECB is chugging along albeit at a slow pace and a few BWICs are going through."

    Consequently, spreads remain range-bound. "A fair amount .......

    SCIWire 15 April 2015

  • Lending platform recruits risk chief

    CommonBond has hired Vinayak Gurjar as chief risk officer. He will be responsible for overseeing the firm's risk management strategy and underwriting guidelines.

    Prior to joining CommonBond, Gurjar was global head of governance in treasury capital markets at Citi, where he led authorisation for issuance of third-party debt, including securitisation. Previous to this, he was a director at S&P, rating .......

    Job Swaps 14 April 2015

  • Euro ABS/MBS static

    The European ABS/MBS secondary market remains quiet but well-supported.

    "Secondary ABS/MBS is still static and very quiet post-Easter," says one trader. "Levels are pretty much unchanged and despite the Street feeling long they appear well-supported."

    The primary market is also dragging attention away from secondary trading. "There is a lot of investor interest focused on new issues including the latest .......

    SCIWire 14 April 2015

  • Analytics effort strengthened

    Vichara Technologies has hired Keith Weintraub as md, based in its Hoboken office in New Jersey. Weintraub previously worked at Citi, where he was director of the derivatives research and analytics teams, as well as a trader on the bank's New York and London trading desks. He also developed risk management systems for prime brokerage at Deutsche Bank.

    .......

    Job Swaps 13 April 2015

  • ILS diversification predicted

    ILS market participants expect a further diversification away from traditional catastrophe bonds, with a particular focus on new perils in emerging markets and collateralised reinsurance, according to Clear Path Analysis' latest report on the sector. This prediction follows a record year for annual property cat bond issuance, with a total of US$8bn of limit placed.

    Total catastrophe bonds on-risk stood .......

    News Round-up 13 April 2015

  • Euro secondary stays slow

    The light BWIC volumes seen in European securitisation markets throughout the much of the Easter holidays look set to continue into today.

    It was a quiet day on- and off-BWIC on Friday with spreads for the most part unchanged and a similar pattern appears to be forming at today's open. CLOs, Dutch and UK prime continue to garner the most .......

    SCIWire 13 April 2015

  • Steady performance predicted for Japan

    In its baseline scenario, S&P assumes that Japan's economy will stage a soft recovery in 2015, with real GDP growing by 0.8% year-on-year. Against this backdrop, the agency believes that the assets underlying RMBS, ABS and CMBS are generally likely to show steady performance.

    Assets backing owner-occupied RMBS and condominium investment RMBS are expected to show steady performance in 2015 .......

    News Round-up 10 April 2015

  • Euro secondary flow holds sway

    The European secondary securitisation market is currently focused on flow trading.

    Securitisation markets are continuing to move independently of the rally in broader markets. Instead, spreads are being driven by technicals amid healthy if patchy flow trading.

    Autos, CLOs, CMBS, UK non-conforming, UK and Dutch prime are all either tighter or staying firm this week thanks to continued investor demand .......

    SCIWire 10 April 2015

  • Euro ABS/MBS ploughs its own furrow

    Amid the broader credit market rally the European ABS/MBS market is ploughing its own furrow as activity continues to build slowly this week.

    "Overall ABS/MBS secondary market tone is constructive, but on low volumes," says one trader. "There's a lot of activity in primary, which is distracting many players, but that new issue is slow coming through and we're not seeing .......

    SCIWire 9 April 2015
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