ABS

  • Loss trends continue to improve

    Loss trends on pre-crisis global securitisations continue to improve, Fitch reports. The agency says this is due in large part to the recovery of the US housing market.

    Total losses on securitised bonds issued between 2000 and 2008 have dropped to 4.9% from 5% in last year's study. Total losses include both realised and expected future losses.

    "Loss performance on .......

    News Round-up 17 February 2015

  • ILS valuations firm founded

    Former AIG Americas chief risk officer Kevin Huang has founded a firm specialising in risk analysis to facilitate the rapid growth of the insurance-linked securities market. Huang & Associates Analytics (HAA) aims to facilitate the convergence between reinsurance and capital markets through sophisticated analytics, advanced data visualisation, easy-to-use reporting tools and fair market valuation.

    Using a patent-pending mark-to-market approach, HAA .......

    Job Swaps 17 February 2015

  • Euro ABS/MBS keeps calm

    As anticipated with the US holiday the European/ABS secondary market was reasonably calm yesterday and that has extended into this morning despite the news around Greece.

    "We've not seen much action since the Greek discussions collapsed," says one trader. "Overall spreads have remained pretty stable."

    The trader continues: "For the moment the market is quiet, though we're hopeful it'll take .......

    SCIWire 17 February 2015

  • Renewal risk highlighted

    American Express is set to end its US co-brand relationship with Costco Wholesale Corporation on 31 March 2016. AMXCA charge-offs and delinquencies could rise as a result, although the move is expected to have a negligible impact on the ratings of American Express Credit Account Master Trust and American Express Issuance Trust II credit card ABS.

    Costco cards account for .......

    News 16 February 2015

  • Entropics fund operational

    SEF Entropics Cat Bond Fund is now open to subscriptions, becoming the first fund specialised in catastrophe bond investments managed by a Scandinavian asset manager and the ninth cat bond fund globally to comply with UCITS regulations (SCI 10 December 2014). The first institutional investor in the fund is Movestic, part of the Chesnara Group. The fund will invest in .......

    Job Swaps 16 February 2015

  • Peripherals take attention

    Peripheral paper is receiving increased attention in the European ABS/MBS secondary market.

    On the back of strong prints on Friday and positive market tone at today's open, prices in major name peripheral bonds edged upwards first thing this morning. Focus revolved around Greek, Italian and Portuguese paper, though the former is likely to remain highly volatile.

    At the same time, .......

    SCIWire 16 February 2015

  • Euro ABS/MBS returns to form

    After an up and down week in terms of activity the European ABS/MBS secondary markets have returned to form.

    Flows across the secondary market increased yesterday in both bilateral trades and BWICs as lists were added throughout the day. Most names saw strong trading levels and that positive tone has extended into this morning.

    The recent favourite sectors continued to .......

    SCIWire 13 February 2015

  • Euro ABS/MBS dampens down

    Secondary European ABS/MBS activity has dampened down once more as participants step away amid broader market volatility.

    "Flows are again relatively light," says one trader. "There's some concern over Greece and to a lesser extent Ukraine, which is keeping things pretty static in ABS."

    Core bonds remain the main focus of the ABS/MBS market with spreads grinding ever tighter led .......

    SCIWire 12 February 2015

  • Staying afloat

    Rising pressures test servicer resilience

    Recent regulatory and investor pressure on Ocwen has highlighted the operational weaknesses of some US RMBS servicers. Improved risk management - especially regarding communication, information and process flows - is key to strengthening their approach.

    The past few months have seen Ocwen agreeing to a US$150m settlement with the NYDFS and responding to investor allegations of contractual breaches in connection .......

    News Analysis 11 February 2015

  • Euro ABS/MBS picks up

    Despite the lack of BWIC supply activity picked up in European ABS/MBS yesterday and into this morning.

    Dutch and UK RMBS, both prime and non-conforming, Italian RMBS and UK autos are all seeing strong appetite again from both buy- and sell-side players. Consequently spreads in those sectors are edging in or holding tight.

    Elsewhere the story is more mixed with some .......

    SCIWire 11 February 2015

  • To BWIC, or not to BWIC

    A large, diverse block of European bonds came out for the bid last week, but in an untraditional way. The bonds were offered on a BWIC without a deadline, leading some investors to describe it more as a controlled liquidation than a true bid-list.

    "It is a very unusual way to present bonds to the market. Obviously investors are used .......

    News 10 February 2015

  • Light flows in European ABS/MBS

    The light flows seen in European ABS/MBS secondary markets yesterday look set to continue in to today.

    Yesterday saw only patchy activity across deal types with Dutch and UK prime leading the way alongside autos. UK non-conforming saw less action than of late and Greek paper took some hits, but overall spreads stayed steady despite broader market volatility.

    The ABS/MBS BWIC .......

    SCIWire 10 February 2015

  • Aussie outlook 'mixed'

    As Australia continues to shift away from its reliance on the mining sector, S&P suggests that the country's economic outlook remains mixed. Against this backdrop, the agency has identified a number of key risks and developments that may shape the Australian securitisation market in 2015.

    Among the risks is household indebtedness, which remains high in Australia and has been relatively .......

    News Round-up 9 February 2015

  • Used car price impact gauged

    A rising amount of turned-in and off-lease vehicles will lead to declining values for used cars over the next couple of years, according to Fitch. However, the agency doesn't expect this trend to dent performance of US auto ABS.

    Higher volumes of trade-ins and off-lease used vehicle returns have led to a rising inventory, while increased new car production and .......

    News Round-up 9 February 2015

  • Unexpected issuers

    Non-bank lender ABS activity on the rise

    The fact that OneMain Financial and Prosper - via BlackRock - have got deals away so early in the year suggests that the increased variety of asset classes and issuers that developed in the US last year should continue to thrive in 2015. Indeed, non-bank lender ABS is expected to account for a growing slice of the market.

    "The fact .......

    News Analysis 9 February 2015

  • Euro secondary mixed

    Last week's positive tone across European secondary has followed on into this for most deal; types and jurisdictions, but there are some exceptions.

    Dutch and UK prime, UK non-conforming and Italian RMBS continue to be better bid. At the same time buy-side demand for CLOs is on the rise across the capital stack.

    Conversely, Greek paper continues to be impacted .......

    SCIWire 9 February 2015

  • Floorplan criteria finalised

    S&P has published its rating methodology and assumption criteria for global non-diversified auto dealer floorplan (ADFP) ABS. The agency has added qualitative factors relating to the relevant auto manufacturer to be considered in its analysis.

    These factors include consideration of the stand-alone credit profile (SACP) of the manufacturer, which is S&P's opinion of the manufacturer's creditworthiness in the absence of .......

    News Round-up 6 February 2015

  • Reset ABS affirmed

    Fitch reports that the credit enhancement levels of six Indian auto ABS have been reset with no rating impact since the Reserve Bank of India released guidelines on CE reset in July 2013. The agency expects the volume of CE resets in Indian transactions to rise as the sector matures.

    CE reset refers to the removal of credit enhancement from .......

    News Round-up 6 February 2015

  • Euro ABS/MBS holds firm

    Away from Greece secondary European ABS/MBS spreads are holding firm.

    Core bonds continue to grind tighter and peripheral spreads are holding up well on the back of broad-based demand. Areas of focus remain Dutch prime, UK non-conforming and Italian RMBS.

    The BWIC calendar so far today is again relatively light with a fair number of line items only offered in small .......

    SCIWire 6 February 2015

  • Cat bond innovation expected

    A flurry of activity in 4Q14 resulted in record 144A P&C catastrophe bond issuance that exceeded US$8bn for the year, according to GC Securities' latest ILS update. This followed one of the slowest third quarters to date for issuance.

    Total risk capital outstanding equalled US$22.868bn, the highest level of outstanding risk capital the market has ever supported. GC says that .......

    News Round-up 5 February 2015

  • Call for market 'restart'

    A healthy securitisation market can confer important financial benefits and revitalising this source of financing has emerged as a key area of focus for policymakers, IMF economists observe in the institution's latest Survey Magazine. In its analysis, the IMF offers a comprehensive suite of measures targeting both supply- and demand-side reforms to strengthen securitisation and mitigate risk.

    "Restarting and expanding .......

    News Round-up 5 February 2015
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