ABS

  • Euro ABS/MBS close to shut down for the year

    The European ABS/MBS secondary market has all but shut down for year-end as from today.

    "This look like it's pretty much it for the year," says one trader. "Spreads haven't moved this morning, but that's theoretical anyway as there has been no visible trading."

    A few very small clips in recently popular names are understood to have changed hands, but .......

    SCIWire 18 December 2014

  • C&E ABS gaining traction

    The growing US economy is set to support good performance in US ABS backed by a range of commercial and esoteric (C&E) asset types, says Moody's. At the same time, recent legal, regulatory and legislative developments could affect transactions in several C&E sub-sectors.

    Economic improvements should particularly support the performance of small-ticket, construction and trucking equipment, along with railcar and .......

    News Round-up 17 December 2014

  • Auto ABS to 'modestly deteriorate'

    Loosening underwriting standards and a greater proportion of borrowers with weaker credit characteristics will cause the quality of US auto ABS pools to modestly deteriorate in 2015, says Moody's. The improving economy and increasing competition among auto lenders has led to the easing of strict underwriting criteria that were adopted in the wake of the financial crisis.

    "Our expectations for .......

    News Round-up 17 December 2014

  • Economy to support private SLABS

    The strengthening US economy is positioning private student loan ABS for a more stable performance next year, according to Fitch. Collateral performance is expected to stabilise further as unemployment drops, while the prospect of rising interest rates should have little more than a negligible effect on ratings.

    "Performance of private student loan deals issued post-crisis is benefiting from more stringent .......

    News Round-up 17 December 2014

  • Stable outlook for APAC

    Fitch expects the ratings and asset sector performance of Asia-Pacific structured finance (SF) transactions to remain stable over the course of 2015. Most public long-term ratings for the sector are likely to remain at their current level throughout next year, largely similar to the situation in 2014. Of the 12 outlooks that were not stable at end-3Q14, six were positive .......

    News Round-up 17 December 2014

  • European secondary struggles on

    Year-end illiquidity in European secondary markets is being exacerbated by volatility in broader markets.

    "The macro-economic environment isn't helping, but it's very slow anyway," says one trader. "Bid-offers are much wider but there's not a lot of trading, which in one way is good as it means we're not seeing any capitulation - there's no client selling."

    There is however, .......

    SCIWire 17 December 2014

  • China rising

    Regulators fuel Chinese issuance boom

    Chinese securitisation issuance has rocketed this year as regulatory restrictions have been relaxed. A diversification of issuers and asset types is also boosting issuance as part of a virtuous circle of growth, although the strength of potential investor appetite is yet to be tested.

    Moody's puts Chinese issuance year-to-date in 2014 at CNY213bn. That is up from just CNY16bn in .......

    News Analysis 16 December 2014

  • Euro secondary slows further

    European secondary markets are getting ever closer to a Christmas standstill.

    "It's definitely slowed right down today," says one trader. "There's nothing going on in the Street and no real client activity - there are a couple of BWICs due today, but that's it."

    Spreads have largely stayed steady. However, the trader notes: "On the few BWICs we've seen of .......

    SCIWire 16 December 2014

  • ABSPP volume drops again

    The ECB has announced its latest total settled ABSPP volume as €788m .

    Last week's drop in volume to only €187m is likely to increase traders' complaints over the pace of ABS purchasing by the central bank. However, some market participants remain less surprised at ECB activity levels given the internal approval difficulties that ABS purchases present, as well as .......

    SCIWire 15 December 2014

  • ILF rating criteria debuts

    AM Best has released what is believed to be the first rating criteria specifically focused on insurance-linked funds (ILF). The criteria assesses an ILF's average credit quality and vulnerability to losses due to credit defaults in a portfolio constituted primarily of insurance-linked assets, and the inability of the fund to fulfil specific and direct contract obligations associated with insurance-linked assets .......

    News Round-up 15 December 2014

  • Capital markets partner added

    Kramer Levin has recruited Gilles Kolifrath as partner. He was formerly general counsel and head of compliance of AXA France, as well as a member of its management committee.

    Kolifrath's practice includes drafting financial/hedge transactions, securitisation transactions and credit agreements; negotiating complex financial transactions, including credit derivatives; and real estate transactions, Luxembourg funds and corporate law. He was an ISDA .......

    Job Swaps 15 December 2014

  • 'Women in Securitisation' initiative formed

    SFIG is set to launch a 'Women in Securitisation' initiative with a special event at the group's annual industry conference, ABS Vegas 2015. The initiative - which is open to members and non-members of SFIG - will be co-chaired by Fitch md Wendy Cohn and Wilmington Trust vp Patricia Evans.

    Through a combination of direct industry engagement, peer mentoring and .......

    Job Swaps 15 December 2014

  • European secondary continues to wind down

    The European ABS, MBS and CLO markets look set for another quiet day today.

    "The markets are coasting as people check out for year end," says one trader. "That combined with continued frustration over the lack of speed of ECB purchases makes for a very quiet market - there are only a couple of BWICs in ABS and CLOs today .......

    SCIWire 12 December 2014

  • Securitisation risk weights hiked

    The Basel Committee has issued revisions to the securitisation framework that aim to address a number of shortcomings in the Basel 2 securitisation framework and to strengthen the capital standards for securitisation exposures. This framework, which will come into effect in January 2018, raises the risk weight floor for securitisation exposures to 15%.

    The most significant revisions with respect to .......

    News Round-up 12 December 2014

  • Secondary ABS supply accelerates

    US ABS bid-list activity yesterday rebounded from the prior session to reach total volume of around US$266m. By far the dominant product type out for the bid was auto ABS.

    SCI's PriceABS data captured 13 unique auto ABS tranches. While they were all from deals issued in 2012 or later, the earliest-vintage tranche out for the bid was .......

    Market Reports 11 December 2014

  • Euro ratings outlook positive

    Fitch says that its rating outlook for European structured finance (SF) transactions is stable, with 86% of its rating outlooks across the region being stable or positive. Performance in the large majority of asset market sectors across the region also has a stable outlook.

    Fitch's expectations for stability for both SF ratings and the underlying asset markets have improved substantially .......

    News Round-up 11 December 2014

  • 'Simple and transparent' criteria released

    The Basel Committee and IOSCO have published a consultative document on criteria for identifying simple, transparent and comparable securitisations. The purpose of the criteria is to assist the financial industry's development of simple, transparent and comparable securitisations structures, as well as to help parties involved in a securitisation evaluate the risks of a particular transaction as part of their due .......

    News Round-up 11 December 2014

  • European ABS/MBS patchy

    European ABS/MBS secondary continues to see patchy trading as year-end and broader macro concerns reduce risk appetite.

    Major UK and European names continue to see two-way interest, but elsewhere bids are weaker. Even Italian RMBS is generally quiet despite the talk of ABSPP buying in the sector.

    Meanwhile, the highlight of the BWIC schedule today is a four line €119.5m .......

    SCIWire 11 December 2014

  • China ABSP clarity requested

    Fitch says that it remains uncertain if securitised assets under China's Asset Backed Specific Plan (ABSP) can achieve bankruptcy remoteness from project managers. This is despite the China Securities Regulatory Commission (CSRC) publishing new provisions relating to the ABSP, effective in November (SCI 20 November).

    The new provisions in the ABSP, previously known as Special Asset Management Plan (SAMP), attempt .......

    News Round-up 10 December 2014

  • Debut Entropics fund authorised

    The first catastrophe bond fund managed by a Scandinavian manager, Entropics, has been authorised by the Luxembourg financial supervisory authority (the CSSF) and passported into the Swedish market. SEF Entropics Cat Bond Fund is UCITS-compliant and has been established via the Luxembourg fund company of Swedbank, to provide a solid infrastructure for the fund and independent valuation of its assets.

    News Round-up 10 December 2014

  • Dutch prime outperforms

    The European ABS/MBS markets are remaining quiet with Dutch prime the only highlight.

    "Client activity is close to zero and that may be it for the year," says one trader. "There are a few sellers here and there and consequently some BWICs, but volumes and liquidity are quite low."

    Except for ECB-eligible assets prices are weaker across deal types, with .......

    SCIWire 10 December 2014
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