ABS

  • Back to work after Scots decision

    After monitoring the build up very closely, the European ABS market has reacted calmly to the result of the Scottish independence referendum. While the impact of a 'Yes' vote was expected to be limited, the 'No' result has ensured business can continue as usual.

    "We were watching this with interest but it was always going to be a minimal impact. .......

    SCIWire 19 September 2014

  • Declining shipments hurt tobacco ABS

    Around 80% of the aggregate outstanding balance of all tobacco settlement ABS bonds rated by Moody's may not pay down in full by maturity according to current projections, says the rating agency. Tobacco settlement ABS payments are tied to cigarette shipment volumes and shipment declines are projected to be between 3% and 4% per year.

    The average decline in shipments .......

    News Round-up 19 September 2014

  • Uncommon deal type trades

    Yesterday's US ABS session saw a rarely-witnessed tax lien deal included on BWIC. The TAX 2014-1A NOTE tranche was covered in the session at mid/high-99.

    SCI's PriceABS also recorded price talk for the tranche in the 100 area. The deal is the first tax lien ABS to appear in the PriceABS archive.

    .......

    SCIWire 19 September 2014

  • Spanish seniors trade well

    The 13:00 London time Spanish seniors BWIC has traded at or above talk and sparked some activity in similar deals in the bilateral market.

    The seven line list covered as follows: AYTH III A at 98.57, AYTH M1 A at 98.71, AYT 2 A2 at 99.65, BBVAL 2007-1 A1 at 99.17, BCJAM 4 A2 at 94.913, RHIPO 7 A1 at .......

    SCIWire 18 September 2014

  • Bid-lists bring ABS variety

    It was a busy session in US ABS yesterday, with SCI's PriceABS data capturing a range of aircraft, auto, credit card and student loan names out for the bid. Vintages ranged from 2000 to 2013 and there was even a timeshare ABS name in the mix.

    Among the aircraft names was one of the earliest-vintage tranches .......

    Market Reports 18 September 2014

  • Dim Sum ABS mooted

    Moody's notes in its China Securitisation Compendium that, with the majority of recent Chinese issuance being CLOs and auto ABS, market participants are considering other asset types for securitisation. These include credit card and equipment receivables - both big ticket items (such as leases backed by aircraft and large machinery) and small ticket items (such as small equipment and auto .......

    News Round-up 18 September 2014

  • Agreement to boost Punch bonds

    Punch bondholders yesterday voted in favour of restructuring its capital structure. Most bonds are expected to rally strongly as a result.

    Barclays Capital analysts expect Punch bonds could rally strongly enough to reach comparable pricing levels to Enterprise Inns. The latter has historically had a superior portfolio, but has not sold down its estate as aggressively as Punch and the .......

    News Round-up 18 September 2014

  • BWICs still dominating Euro ABS

    Today sees another large slew of European ABS and MBS BWICs, which is dampening other secondary market activity.

    "It's a question of getting through a lot of line items again today. It's been the same story for the past few days, throughout which we've seen reasonably good execution," says one trader.

    The volume of lists has meant that the rest of .......

    SCIWire 18 September 2014

  • Deeper data

    Aligning loan-level disclosure requirements

    The US SEC last month approved the final Regulation AB 2 rules, significantly changing asset-level data disclosure requirements (SCI 28 August). The rules will not come into force for a couple of years, but their effects could be felt sooner and will further align the US market with what is already common in Europe.

    In Europe, loan-level disclosure through the .......

    News Analysis 18 September 2014

  • Amortisation waiver anticipated

    Natixis Factor expects the senior funding base for its FCT Factoring Asset Securitisation Transaction (FAST) to fall below the outstanding class A1 note balance this month, due to a combination of seasonality and temporary effects. A waiver of the class A1 note amortisation is therefore being contemplated.

    Should such a waiver be accepted by the noteholders and the management company .......

    News Round-up 17 September 2014

  • Subprime auto 'domino risk' outlined

    Fitch notes that rising US subprime auto lender competition and an increase in start-ups means problems at one lender could quickly spread to others. The agency examines in a new report why 'domino risk' is higher in subprime auto lending than in other ABS sectors.

    In Fitch's view, the risks to the sector mean that most subprime auto transactions would .......

    News Round-up 17 September 2014

  • Rationalisation for cat bond market?

    Continued demand from hedge funds and institutional investors has pushed outstanding catastrophe bond volumes approximately 12% higher so far in 2014 than as at end-2013, to reach a total of US$22.9bn, according to Moody's latest Reinsurance Monitor. Peril coverage continues to widen across a range of risk types and geographies, while there are signs that a more rational marketplace is .......

    News Round-up 17 September 2014

  • Credit card criteria updated

    Moody's has updated its global methodology for rating credit card and revolving consumer loan ABS, following an earlier RFC on the proposal (SCI 29 April). The new approach more explicitly incorporates the credit quality of the sponsor into the agency's rating analysis and also reflects other modifications to assumptions about credit card portfolio performance under stress.

    "Credit cards and revolving .......

    News Round-up 17 September 2014

  • Value add

    Rajat Rohailla, executive director at Molton Street Capital, answers SCI's questions

    Q: How and when did Molton Street become involved in the structured finance markets?
    A:     We are a young firm, but all of our backgrounds are in trading, securitisation and risk management. We have been focused on structured finance since our inception and the firm brings together deep structured credit experience.

    Personally, I qualified as a .......

    The Structured Credit Interview 17 September 2014

  • Eclectic euro list circulating

    The market's continuing appetite for all things European seemingly irrespective of deal type could meet its match tomorrow with a large eclectic BWIC list currently circulating. The 40 line €185m list due for trade at 14:00 London time includes ABS, CDOs (including ABS CDOs, CBOs and Trups CDOs), CFOs, SME CLOs, CMBS and RMBS.

    Talk appears to be thin on .......

    SCIWire 16 September 2014

  • Negative correlation offers diversification

    US consumer ABS spreads are wider and more volatile in the post-crisis period. However, a recent Wells Fargo study of the distribution of correlation coefficients indicates a less correlated and more diversified market than in the past.

    ABS strategists at the bank calculated correlation coefficients for a variety of ABS sector pairs. For the 2004-2007 period, 90% of the correlation .......

    News 16 September 2014

  • Corporate trust vet recruited

    Global Loan Agency Services has added another staffer to its roster, following the recruitment of Stuart Draper last month (SCI 29 August). Louise Moore joins the firm as a relationship manager, with over twenty years' debt capital market and corporate trust experience. She has held senior posts with Law Debenture, Deutsche Bank and Bank of New York Mellon in the .......

    Job Swaps 16 September 2014

  • Stable performance predicted for ARS

    US student loan auction rate securities (ARS) appear to be entering a period of relative calm, following a volatile few years. Fitch expects this to translate into more stable performance across the segment.

    Many student loan ARS credit ratings were negatively affected by increased interest expenses, due to the failure of the auction market in early-2008. In some cases, downgrades .......

    News Round-up 16 September 2014

  • Punch exchange notes provisionally rated

    Moody's has assigned provisional ratings to four classes of notes to be issued by Punch Taverns Finance in line with the proposed restructuring of the securitisation. The issuance comprises £111.01m super senior hedge notes (rated Baa1), £67.5m A1(V) notes (Baa3), £45.79m A2(V) notes (Baa3) and £300m M3 notes (B2).

    The issuance of the class A1(V) and A2(V) notes will follow .......

    News Round-up 15 September 2014

  • Euro mezz takes centre stage

    ECB president Draghi's comment on Friday that the ABSPP would be more effective if it were to include mezzanine paper has drawn market focus to that section of the capital structure.

    On Friday and into this morning investor demand has centred on mezz paper in European ABS, CMBS and RMBS, notably Dutch prime. Consequently, spreads have moved tighter across all .......

    SCIWire 15 September 2014

  • Markel hires bring ILS experience

    Markel Global Reinsurance has hired Erik Manning, Jamie Welsby and John Duda. All three will be based in Bermuda and bolster the managed catastrophe and retrocessional insurance team.

    Manning joins as md and was previously md at Guy Carpenter. He has also worked at Deutsche Bank, ABN Amro and RK Carvill.

    Welsby also joins as md and was most recently .......

    Job Swaps 12 September 2014
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