ABS

  • 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

  • Negative interest rate impact examined

    The increasing prevalence of negative interest rates in Europe - due mainly to extraordinary monetary policy measures - is credit negative for EMEA securitisations, according to Moody's. Sub-zero interest rates introduce negative carry and can potentially reduce credit enhancement if a structure has not already catered for such a situation.

    Most European securitisations do not explicitly cater for sub-zero rates. .......

    News Round-up 11 March 2015

  • TD rating linkages analysed

    De-linking the credit profile of electricity tariff deficits (TD) securitisations from macroeconomic and regulatory risks is more difficult than for other assets like mortgages or consumer loans, says Fitch. The agency notes that the stronger influence of macroeconomic factors, utility system governance and regulatory risks explains why TD securitisations cannot achieve the maximum six notches above the relevant sovereign rating.

    News Round-up 11 March 2015

  • Solar programme commences

    SCIO Capital has acted as sole arranger and placement agent on the first of a planned series of solar transactions. SCIO Clean Energy 1 is backed by the future operating cashflows generated by a portfolio of solar installations in the UK. The transaction was structured as a pass-through bond with a fixed-rate coupon.

    .......

    News Round-up 11 March 2015

  • MMF restructuring impact eyed

    Federated recently became the second major fund sponsor after Fidelity to announce changes to its money market funds (MMF) to comply with the upcoming US money market reforms. Each of the firms offer a different compliance structure for the industry, but neither approach leaves much room for any ABS investments, according to JPMorgan ABS strategists.

    A-1 rated ABS tranches are .......

    News 11 March 2015

  • Dutch prime slows as CLOs pick up

    European secondary markets continue to see discrete activity with Dutch prime the latest area to see a slowdown as some European CLOs get a boost. Meanwhile, this week's heavy BWIC calendar continues to roll on.

    "The price guidance for the new STORM deal, which is wider than secondary, hasn't pushed spreads wider as some thought but it has put the .......

    SCIWire 11 March 2015

  • Rising tide

    Cat bond trading eyed ahead of hurricane season

    The ILS market benefitted from a relatively strong January, driven by customary early-year adjustments to investor portfolios. Secondary catastrophe bond activity is expected to receive a further boost this month from the burgeoning primary pipeline.

    One of the key portfolio adjustments that investors have been involved in is the rotation between catastrophe bonds and collateralised reinsurance. "There has certainly been .......

    News Analysis 11 March 2015

  • Focus returns to European ABS/MBS secondary

    After a quiet few days, the European ABS/MBS secondary markets could see a pick-up in activity today as focus shifts away from primary.

    "ABS continues to grind tighter although secondary volumes have been low," says one trader. "The focus has mainly been on primary in the last few days, but that could end up having some impact - talk on .......

    SCIWire 10 March 2015
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