ABS

  • 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

  • Esoteric ABS firms combine

    Springleaf has agreed to acquire OneMain for US$4.25bn, creating a potential market leader for the unsecured consumer ABS sector. The transaction is expected to close in 3Q15.

    The two brands will be kept separate initially, before migrating to the OneMain brand in mid-2016. JPMorgan notes that both firms are active in the unsecured ABS market, as Springleaf issued US$559m of ABS .......

    Job Swaps 9 March 2015

  • TRACE expansion delayed

    FINRA has delayed the implementation of CUSIP-level TRACE dissemination for non-mortgage ABS trades until 1 June, from the originally planned start date of 27 April. Prices for trades in SEC-registered public securitisations and private 144a transactions will be disseminated.

    Assuming that CUSIP-level dissemination begins on 1 June, there will be an 180-day transition period, in which trade prices and sizes .......

    News Round-up 9 March 2015

  • Euro ABS/MBS unmoved

    The European ABS/MBS secondary market was broadly unmoved at today's open despite wider market declines late Friday and into this morning.

    The secondary market looks set to stay that was today with another very quiet day in prospect. Players' attention will undoubtedly be drawn toward broader credit markets thanks to the first day of QE as well as the ABS/MBS .......

    SCIWire 9 March 2015

  • Subprime auto ABS weakening

    US subprime auto loan ABS performance continues to weaken, according to S&P. However, the agency expects ratings to remain stable due to credit enhancement keeping pace to offset additional risk and outstanding securitisations benefitting from robust structural features.

    The 2014 yearly average net loss rate for the sector increased by 17.5% from the 2013 level, with delinquencies also continuing to .......

    News Round-up 6 March 2015

  • More of the same for European ABS/MBS

    Yesterday saw another positive but quiet day in the European ABS/MBS secondary market as broader credit was boosted by the ECB's QE announcement.

    Trading continued to be slow yesterday and into this morning, but remains strong in still patchy activity around the usual key areas of prime, UK non-conforming and selected peripheral paper. However, there was some softening in German .......

    SCIWire 6 March 2015

  • Stricter eligibility causes casualties

    The ECB has removed 11 Spanish bonds from its repo-eligible ABS bond list due to non-compliant payment waterfalls following enforcement or accelerated amortisation. Such a stringent interpretation could have far-reaching implications, according to European securitisation analysts at Barclays Capital.

    The Spanish bonds that have lost ECB repo-eligibility over the last month are: Bancaja 4, Bancaja 5, Bancaja 6, Bankinter 3, .......

    News 6 March 2015

  • Euro secondary ticks over

    European secondary markets are quiet, but activity is still ticking over.

    "Secondary is reasonably quiet, but we are getting stuff done particularly around peripherals and non-conforming plus a little in CLOs," says one trader. "There's not much on BWICs again today, though there are some RMAC equity residuals later in the day, which might be quite interesting."

    The drop-off in .......

    SCIWire 5 March 2015

  • Euro secondary sees pockets of activity

    European secondary is still quiet overall, but there are pockets of activity

    "It continues to be very quiet this week, but the few trades going through are trading quite high," says one trader. "We've seen Dutch RMBS print in the mid-teens, for example."

    Strong trading is currently mainly macro driven, the trader says. "The positive tone was helped by the .......

    SCIWire 4 March 2015

  • Repo eligibility tightening?

    The ECB last month published new guidelines on the implementation of the Eurosystem monetary policy, effective from 1 May. Several changes have been made to ABS repo eligibility, which appear to reflect a bias towards tightening of the criteria.

    The changes include the exclusion of ABS comprising receivables with residual value, with a four-month grandfathering period for bonds that will .......

    News 4 March 2015

  • Reinsurance merger finalised

    RenaissanceRe has completed the acquisition of Platinum Underwriters, making the firm a wholly owned subsidiary of RenaissanceRe. The acquisition was originally announced late last year (SCI 25 November 2014). The completion of the acquisition follows the receipt of all necessary regulatory approvals and approval of the transaction by Platinum shareholders, which was obtained at a special general meeting of Platinum .......

    Job Swaps 3 March 2015

  • Costco impact gauged

    Costco has entered into a new co-brand credit card programme agreement with Citibank and an acceptance and co-brand incentive agreement with Visa (SCI 16 February). Bank of America Merrill Lynch ABS analysts expect any resultant widening in American Express credit card ABS to be temporary and an opportunity to add exposure to the trusts.

    The implementation of the Costco agreements .......

    News Round-up 3 March 2015

  • Euro ABS/MBS keeps support

    Spreads remain well-supported in European ABS/MBS secondary markets, but activity has declined dramatically from last week.

    "It's very, very quiet this week," says one trader. "The market is well-supported at these levels, but there's no real impetus to do anything."

    The trader continues: "ABSPP is still slowly happening - ECB announced €470m for last week, which is one of their bigger weeks, .......

    SCIWire 3 March 2015

  • ABCP appetite varied

    US money fund investments in ABCP conduits have been declining in line with outstanding supply in the market, according to Fitch. During the 12 months ending in January, US ABCP outstandings fell by US$22.5bn to a total of US$234.6bn, while money fund investments in ABCP shrank by US$1.8bn to a total of US$91bn - representing a 1.9% drop versus the .......

    News Round-up 2 March 2015

  • Euro auto ABS outperforming

    Fitch says that European consumer ABS remains one of the most stable structured finance asset classes. This is largely due to the favourable payment profile of the underlying assets, which are mostly amortising quickly, as well as the absence of a subprime market and a limited pre-crisis 'originate-to-distribute' model.

    As the European economy starts to recover, some of the most .......

    News Round-up 2 March 2015

  • Euro secondary quieter

    It's a quieter start to the week and month in European secondary markets today.

    February closed out quietly too after hectic activity earlier in the week, but Friday's UK non-conforming list was in the end joined by another and both traded well. There was patchy but strong trading elsewhere in other sectors including CLOs Italian RMBS and that overall positive .......

    SCIWire 2 March 2015

  • Euro secondary absorbs BWICs

    Yesterday's spike in European BWIC volume was absorbed comfortably, but today looks to be quieter.

    "The lists yesterday traded well though many bonds were in reasonably small size so it's difficult to read too much into it," Says one trader. "It's quieter today as it's a Friday, but the overall tone remains positive."

    There are only a few BWICs circulating .......

    SCIWire 27 February 2015

  • FTA 'credit negative' for auto ABS

    Moody's says that the lower prices for new Japanese cars sold in Australia, as a result of the Australia-Japan free trade agreement (FTA), are credit negative for Australian auto loan ABS. As the prices of new cars fall, so does the demand for used cars, in turn reducing the amount that can be recovered when cars are sold to repay .......

    News Round-up 26 February 2015

  • DOJ to take proactive ABS approach

    A speech this week by acting deputy US Attorney General Sally Yates has illuminated the approach the Department of Justice (DOJ) will take to US auto ABS. Yates stated that experience from mortgage lending and RMBS will form the template for the investigation into autos, as the DOJ seeks to both explore past incidents and actively head off potential threats.

    News Round-up 26 February 2015

  • European BWIC boom

    After a quieter day on the BWIC front yesterday European securitisation markets are set for a boom in auction activity today.

    While there were fewer BWICs yesterday than in previous days clearing levels remained strong and most recently popular sectors continue to be well-bid. However, UK non-conforming RMBS have softened a little on the back of increased primary activity.

    Today .......

    SCIWire 26 February 2015

  • Willis expands to Australia

    John Philipsz, md at Willis Capital Markets & Advisory (WCMA), has relocated from London to establish operations for the firm in Sydney, Australia. The new office will complement WCMA's existing presence in Hong Kong, led by Michael Guo, head of WCMA Asia.

    Prior to WCMA, Philipsz worked for Bank of America, where he was a director in the financial institutions .......

    Job Swaps 26 February 2015
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