ABS

  • 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

  • Call for ring-fencing clarity

    Questions remain over whether Chinese securitised assets under the Asset Backed Specific Plan (ABSP) can be ring-fenced for the ABSP's creditors in a bankruptcy ruling, Moody's reports. This is despite proposed changes by the China Securities Regulatory Commission (CSRC) in September.

    "Although the proposed changes have provisions suggesting that securitised assets should be ring-fenced from the bankruptcy estate of the .......

    News Round-up 20 November 2014

  • Economy supports Aussie outlook

    Moody's expects Australian RMBS, ABS and covered bonds to continue performing well in 2015. This is in spite of deteriorating collateral quality in new transactions in an environment of rising house prices.

    The agency says that steady performance will be supported by Australia's GDP growth - expected to be in the range of 2.5% to 3.5% in 2015 - similar .......

    News Round-up 20 November 2014

  • Euro ABS/MBS holds steady

    Despite the lack of news about ABSPP, the European ABS/MBS markets have held steady.

    "Spreads are holding firm this morning," says one trader. "We're seeing the Street trading some eligible paper, a few asset managers are starting to show bonds and there are a number of BWICs today, but it's really just a waiting game for the ECB."

    He continues: .......

    SCIWire 20 November 2014

  • Global variations in card ABS

    Credit card ABS in different jurisdictions incorporate a variety of structural features to address the credit risks inherent in such securitisations, says Moody's. In addition, the types of issuers and loans backing credit card ABS are different across countries.

    "General purpose and co-branded cards in the US, UK and Canada are typically issued by regulated banking entities," says Matias Langer, .......

    News Round-up 20 November 2014

  • Eclectic list fails to trade again

    A large proportion of the re-issued large eclectic BWIC of European assets from a bad bank (SCIWire passim) has failed to trade.

    The 37 line €276.502m auction was due at 14:00 London time today. However, 29 lines did not trade, including all of the SME CLOs on the list and all bar one of the CDOs.

    The bonds that did .......

    SCIWire 19 November 2014

  • Strong forecast for Asia

    Credit quality across the Asian securitisation and covered bond markets will remain strong overall in 2015, says Moody's. This is due to relatively healthy economic growth levels and falling corporate default rates in the region.

    Chinese auto loan ABS default and delinquency rates are expected to rise from 7.3% in 2014 to 7% in 2015, due to projected slower GDP .......

    News Round-up 19 November 2014

  • Losses to rise on A/B mods?

    Overall loss severities on US CMBS A/B loan modifications liquidated to date have been low. However, this trend may change for many highly leveraged loans utilising this strategy, according to Fitch.

    Special servicers have argued that A/B note modifications allow for improved performance and value, which can help reduce losses to the trust. However, some investors suggest the hope note .......

    News Round-up 19 November 2014

  • FFELP portfolio acquired

    Navient has closed a new US$10bn student loan ABCP financing facility. The conduit matures in November 2017 and is supported by Wells Fargo, JPMorgan and RBC.

    Arranged by Wells Fargo, the facility will finance the acquisition of federally guaranteed student loan portfolios and provide additional liquidity to the company. The first acquisition made under the facility is the purchase from .......

    News Round-up 19 November 2014

  • Euro ABS/MBS BWIC focused ahead of the ECB

    A healthy supply of BWICs is focusing the European markets' attention today, but the expected ABSPP announcement will inevitably cause some distraction.

    "The tone is generally positive this morning across secondary markets, but it's going to be mainly a BWIC day today," says one trader. "There are quite a few auctions attracting everyone's attention, but this afternoon's big eclectic list .......

    SCIWire 19 November 2014

  • Unique exchange odds increase

    Enterprise Inns' latest results show income growth across the portfolio. With portfolio performance stabilised, the likelihood that the firm will look to reduce the amortisation profile on its Unique securitisation through a tender or exchange programme has increased, say Barclays Capital analysts.

    Enterprise Inns is now having to buy back debt above par in the securitisation. It will also want .......

    News 18 November 2014

  • Seasoning to stabilise credit cards

    The quality of assets underlying US credit card ABS is expected to begin normalising in 2015. This is in spite of delinquencies and charge-offs increasing from current levels, says Fitch.

    Despite the likely deterioration in asset quality, ratings assigned to US credit card lenders remain stable reflecting adequate liquidity, strong balance sheets and limited sensitivity to a rise in US .......

    News Round-up 18 November 2014

  • HQS task force formed

    SFIG has established a new working group: the High Quality Securitization (HQS) Task Force. The HQS Task Force will serve as the forum through which SFIG will respond to recent initiatives that seek to define 'qualifying securitisations', such as the EBA's recent discussion paper on simple standard and transparent securitisation (SCI passim). The HQS Task Force will meet in the .......

    News Round-up 14 November 2014

  • Europe stays patchy

    European core and peripheral bonds across deal types continue to trade well where they do trade, but activity remains patchy and looks set to carry on that way.

    "It's very quiet and I think it's more than just people waiting on the ECB," says one trader. "A lot of trading desks have essentially closed for the year and are not .......

    SCIWire 14 November 2014

  • European eclectic list circulating again

    A 37 line €276.502m BWIC is circulating for trade next Wednesday at14:00 London time. The list incorporates a wide range of assets - ABS, CDOs (including Trups and CFO deals), CLOs, CMBS and RMBS - many of which appeared on an eclectic list where most items failed to trade on 17 September.

    There are two ABS deals on the list .......

    SCIWire 13 November 2014

  • Beneficial merger mooted

    Perella Weinberg Partners plans to merge its Flagship Credit Acceptance and CarFinance Capital auto lending units into one company. Moody's says in its latest Credit Outlook that the merger would be credit positive for the subprime auto loan ABS that the companies sponsor because the larger combined entity would likely be more creditworthy than two separate entities.

    Future loan pools .......

    News Round-up 13 November 2014

  • GE regs 'mildly negative' for SLABS

    The recent US gainful employment (GE) regulations focusing on for-profit colleges and schools are mildly negative for US student loan ABS, according to Fitch. Affected loans comprise less than 10% of current Fitch-rated federal and private student loan ABS trusts. The agency says that, as GE is unlikely to affect funding until 2017 at the earliest, new ABS deals will .......

    News Round-up 13 November 2014

  • Two added to head fund

    Nomura Asset Management has added Richard Hodges and Ben Bugg to its global fixed income team. They will head the Global Dynamic Bond Fund, which Nomura plans to launch in early 2015.

    Hodges joins NAM from Legal & General Investment Management (LGIM), where he held the role of head of high alpha fixed income. During his tenure, Hodges launched and .......

    Job Swaps 13 November 2014

  • More of the same for European ABS/MBS

    The European secondary markets remain fixated with the ABSPP and so expectations are for the same trading patterns to continue until the buying starts.

    Yesterday saw a more active day than of late in European ABS/MBS but the end result was once again spread tightening in ECB-eligible paper. Today looks to be slightly busier still, but little else is expected .......

    SCIWire 13 November 2014

  • ABS comparison tool launched

    Fitch has launched ABS Compare, an Excel tool that provides access to the agency's surveillance and index data on European consumer and credit card ABS transactions. The service enables users to review the performance of European ABS transactions in comparison with Fitch's benchmark indices and macroeconomic indicators. It also allows the comparison of transactions using performance measures, such as arrears, .......

    News Round-up 12 November 2014

  • Europe shaking off its slumber?

    European secondary markets are attempting to shake off their pre-ABSPP slumber this morning with activity and interest being seen across asset classes.

    After a quiet couple of days, traders report increased investor buying interest in both core and peripheral CMBS and RMBS. "Everything feels a bit more pro-active today and we've moved a bit tighter as a result," says one.

    SCIWire 12 November 2014

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