ABS

  • Investment teams realigned

    AXA Investment Managers has reorganised its fixed income and structured finance teams with the creation of a new department. Reporting to John Porter, global head of fixed income and structured finance, the new arrangement will facilitate the integration of structured finance assets into traditional fixed income so that AXA IM can address changing client needs across the credit spectrum.

    The .......

    Job Swaps 2 December 2014

  • Month begins with solid session

    US ABS BWIC volume was around US$120m in the first session of the week, with auto paper well represented. There was also a higher than normal number of utility bonds out for the bid.

    SCI's PriceABS data captured half a dozen unique auto ABS line items from Monday's session. Among them was the AESOP 2011-5A A .......

    Market Reports 2 December 2014

  • Mixed reactions in European ABS/MBS

    European ABS/MBS markets appear sanguine about yesterday's announcement that the first week's ABSPP volume was only €368m. Meanwhile, the news that Deutsche Annington is to buy Gagfah for €3.9bn has given a boost to the CMBS market.

    "The market is still a bit quiet this morning with no real reaction to yesterday's ECB number," says one trader. "People were disappointed .......

    SCIWire 2 December 2014

  • Canadian auto losses examined

    DBRS has undertaken a study of Canadian retail auto loan securitisations through the financial crisis to observe loss timing patterns and transaction performance. The agency's observations confirm that losses are more front-loaded during times of stress.

    Leading up to the liquidity crisis, DBRS notes that losses were still front-loaded but more evenly distributed. Importantly, regardless of the state of the .......

    News Round-up 1 December 2014

  • European ABS/MBS ramps back up

    The European ABS/MBS markets are ramping back up after a relatively quiet end to last week.

    The secondary market saw patchy trading continue through Friday with spreads ending the week broadly softer. Meanwhile, the BWIC schedule slowed with the US being out, but is already building up again.

    Currently the first auction scheduled for today is an 11.9m original face .......

    SCIWire 1 December 2014

  • Different roads for auto ABS

    Prime auto loan delinquencies and annualised net losses (ANLs) declined in October compared to September, according to Fitch. In contrast, subprime auto ANLs increased by 13% month-over-month.

    Prime auto loan ABS ANLs dropped by 13% to 0.4%. This was in line with August's rate and represents a 2.4% improvement over October 2013. 60-plus day delinquencies moved down to 0.36%, 10% .......

    News Round-up 28 November 2014

  • Law change to affect pub deals

    Plans to give tenants of tied UK pubs the option of simply paying a market-rate rent are likely to hit pubcos' net income in the medium term, says Fitch. Higher letting and beer supply costs, combined with potentially shrinking revenues could damage earnings, with a number of whole business securitisation transactions being affected.

    Following last week's vote in the House .......

    News Round-up 28 November 2014

  • Japanese market outlook 'positive'

    Strong credit quality and good collateral performance will remain features of Japanese securitisation markets in 2015, despite the contraction in the country's GDP, says Moody's. Performance will be underpinned by ongoing strict underwriting standards and supportive labour market conditions.

    Default rates for consumer ABS are expected to be stable at low levels, owing to already low unemployment and government policies .......

    News Round-up 27 November 2014

  • REIT promotes risk md

    Robert Rush has taken the role of chief risk officer at Two Harbors Investment Corp. Paul Richardson, who has served in that role over the past several years, will remain in his role as partner and chief risk officer for Pine River Capital Management, the parent of the company's external manager.

    Rush has served as Two Harbors' md for risk .......

    Job Swaps 27 November 2014

  • Agency issues CE RFC

    Moody's is seeking comment on proposed changes to the minimum portfolio credit enhancement levels in EMEA ABS and RMBS. The credit enhancement consistent with the highest rating achievable in a given market is currently the greater of: the model implied credit enhancement; the minimum portfolio credit enhancement; and expected loss multiple. The agency is proposing that the second of these .......

    News Round-up 27 November 2014

  • At the edge

    Peripheral RMBS prospects examined

    Representatives from Bloomberg, Prytania Group and DBRS discussed peripheral European RMBS in a live webinar hosted by SCI last month (view the webinar here). Topics included the development of the peripheral RMBS market versus core RMBS, a detailed look at the Irish and Spanish markets, pricing challenges and the impact that the ECB's ABSPP will have.

    Talking Point 27 November 2014

  • Paper trades ahead of Thanksgiving

    The US secondary markets have not shut down just yet, with SCI's PriceABS data picking up price talk and cover prices for US ABS, CLOs, CMBS and RMBS yesterday. In ABS there was more than US$100m out for the bid on BWICs, with supply divided between autos, credit card, equipment and student loan ABS.

    Each of .......

    Market Reports 26 November 2014

  • CBRC actions 'positive' for card ABS

    The China Banking Regulatory Commission's (CBRC) decision to fine seven banks for violations in their credit card businesses signals its intent to tighten underwriting and risk management standards among commercial banks, according to Fitch. This is positive for the performance of credit card portfolios and future credit card ABS in China, as it indicates that the regulator is moving pre-emptively .......

    News Round-up 25 November 2014

  • Reinsurance merger agreed

    Platinum Underwriters and RenaissanceRe have entered a merger agreement under which RenaissanceRe will acquire Platinum. Under the terms of the transaction, the common shareholders of Platinum will receive US$1.16bn of cash and 7.5 million RenaissanceRe common shares with an approximate value of US$76 per share, or approximately US$1.9bn in aggregate, representing a 24% premium to Platinum's closing price.

    At closing, .......

    Job Swaps 25 November 2014

  • Still no big ABSPP trades

    European ABS/MBS spreads are holding firm as the market continues to wait on significant ECB buying.

    "Spreads are staying stable as the market continues to expect the ECB to start buying in size, but every day seems to bring with it another day's delay," says one trader. "They bought some Arena in the primary market yesterday, but we haven't seen .......

    SCIWire 25 November 2014

  • ABSPP 'hinges' on mezz purchases

    The ability of the ECB's ABSPP to provide capital relief to eurozone banks could hinge on its plans to buy mezzanine tranches, says Fitch. The capital impact of the ABSPP purchases at different parts of the capital structure will vary with jurisdiction, underlying assets and the originating banks' approach to calculating credit risk.

    Fitch looked at three hypothetical structured finance .......

    News Round-up 24 November 2014

  • Cell tower auctions 'credit positive'

    The US Federal Communications Commission (FCC) last week completed 27 rounds of Auction 97, its ongoing wireless spectrum license auction, having received bids from 70 participants totalling US$33bn. The bids received are well beyond the FCC's aggregate reserve price of US$10.6bn and industry estimates of US$15bn.

    Moody's says in its latest Credit Outlook publication that the auction results thus far .......

    News Round-up 24 November 2014

  • Euro ABS/MBS wants more

    The ECB began ABSPP buying on Friday, but the European ABS/MBS market is still waiting for more action.

    "The ECB bought some Dutch RMBS on Friday, but thus far there's been no follow up trading," says one trader. "No volume has yet been reported on the Dutch RMBS purchases, but our sense is they weren't huge, so the market is .......

    SCIWire 24 November 2014

  • First Names branches out

    First Names Group has formed a global structured finance services unit in the US. Orlando Figueroa and Mark Ferraris have been appointed as mds to drive the business.

    Ferraris and Figueroa will be responsible for global strategy in delivering services through both First Names' existing network - including the UK, Luxembourg, Ireland, the Netherlands and Switzerland - and new jurisdictions. .......

    Job Swaps 21 November 2014

  • Broker expands into ILS

    Alwen Hough Johnson has established AHJ Capital Markets, which has been authorised by the UK Financial Conduct Authority. The new company will provide clients with access to risk transfer and capital products available in the financial markets.

    Initially, the company will help insurers to manage risk through reinsurance backed by ILS and to finance risk through debt and equity capital. .......

    Job Swaps 21 November 2014

  • ABSPP decision published

    The implementation of the ABSPP has entered into force, following yesterday's publication of the ECB's decision regarding the programme. The decision outlines the scope and eligibility criteria of the central bank's outright purchases.

    The decision confirms that, under the ABSPP, the ECB may instruct its agents to purchase eligible ABS on its behalf in the primary and secondary markets from .......

    News Round-up 20 November 2014
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