ABS

  • German auto credit quality eyed

    Signs of increasing risk appetite among German auto loan and lease originators have emerged gradually in recent months, Fitch reports. The agency says that they are relatively minor so far and have not reached the point where they would weaken the credit quality of German auto ABS deals.

    Two notable trends in the last 12-24 months are an increase in .......

    News Round-up 15 October 2014

  • Structural concerns remain for Brazilian ABS

    New regulations in the local Brazilian ABS market address some of the structural issues exposed by recent bank failures, Fitch says. However, the agency suggests that the new regulations fail to comprehensively address certain structural concerns that it has outlined over the past several years.

    "The Brazilian ABS market is undergoing a paradigm shift. Progress has certainly been made. But .......

    News Round-up 15 October 2014

  • Retail restructurings targeted

    A new joint venture focused on financing opportunities arising across performing, stressed and distressed retail sector situations in Europe has been formed. Dubbed Alteri Investors, the entity is structured as a partnership between funds managed under Apollo's credit business and a team led by former GA Europe ceo Gavin George.

    Alteri will initially focus on the UK and Germany and .......

    Job Swaps 15 October 2014

  • RFC issued on 'standard' securitisations

    The EBA has launched a public consultation on its discussion paper on simple, standard and transparent securitisations. The move is in response to the European Commission's call for advice on identifying a prudentially sound securitisation market and its regulatory treatment.

    The discussion paper lays down preliminary views on defining the three pillars of simplicity, standardisation and transparency. Together with criteria .......

    News Round-up 15 October 2014

  • APAC ratings stable in 3Q14

    Fitch affirmed the ratings on 160 Asia-Pacific structured finance tranches in 3Q14, as well as upgrading a further five tranches and downgrading one. Most long-term ratings in the Asia-Pacific region have stable outlooks.

    Strong economic performance in both Australia and New Zealand supported rating actions in those jurisdictions. All ratings reviewed during the quarter - 87 tranches from 37 transactions .......

    News Round-up 15 October 2014

  • Appen swaps Barclays for Lloyds

    Allen Appen has joined Lloyds to lead its financial institutions capital and asset-backed solutions business, which was created earlier this year after the departure of former ABS head Robert Plehn (SCI 20 May). In his new role, Appen will report to head of capital markets James Garvey. Appen was previously at Barclays, most recently as head of financial institutions capital .......

    Job Swaps 15 October 2014

  • SCI conference line-up revealed

    Panellists have been announced for SCI's 7th Annual Securitisation Pricing, Investment & Risk Seminar, which is taking place on 29 October in New York. The event is being held at Bank of America's offices at 250 Vesey Street (formerly Four World Financial Center).

    The conference programme consists of a series of roundtables and panel debates focusing on issues affecting the .......

    News Round-up 15 October 2014

  • Choppy trading in Euro ABS/MBS

    The European ABS/MBS markets are currently seeing mixed trading and a slowing of momentum.

    "Execution has been choppy over the past few days," says one trader. "On the lists yesterday some names covered well below talk while others traded aggressively."

    That choppiness is likely to continue as the market loses some momentum. "We're seeing continued volatility in broader markets - .......

    SCIWire 15 October 2014

  • European ABS/MBS edges wider

    This morning has seen European ABS and MBS spreads edge wider on the back of both fundamentals and technicals.

    Macroeconomic and global geopolitical concerns are entering into the hitherto relatively unaffected European securitised secondary markets giving them more of a selling bias. Auction supply has been added to for today with two further BWICs introduced mid-to-late morning, which potentially could .......

    SCIWire 14 October 2014

  • Risk variations 'not reflected'

    The European Commission's decision to implement only two Solvency 2 capital charges on securitisations across the investment grade rating spectrum does not reflect the variation in risk in these assets, Fitch says. The agency suggests that this is likely to push insurers that invest in securitisations using the standard model to favour assets in the triple-A and triple-B categories.

    The .......

    News Round-up 14 October 2014

  • Weakening seen in prime auto collateral

    US prime auto ABS credit quality has been declining since the latter half of 2012, following its strongest-ever levels between 2009-2011, Fitch notes in a special report. The agency says that increased risk appetite is driving a shift in credit quality.

    "Prime auto lenders are showing a higher propensity to lend to non-prime borrowers, which is leading to marginally lower .......

    News Round-up 14 October 2014

  • Punch ratings disappoint

    Fitch, Moody's and S&P last week published their new ratings for the restructured Punch A and Punch B whole business securitisations. Barclays Capital European ABS analysts believe that Fitch and S&P's ratings will have disappointed bondholders, given how low they are relative to Moody's ratings.

    The Punch A A1F, A2F and A1V notes are rated Baa2/B+/BB (Moody's/S&P/Fitch), while the M3 .......

    News 14 October 2014

  • Investor expectations rise

    European credit investors expect the ECB's purchase programme to influence both supply and spreads in the structured finance market, according to Fitch's latest investor survey. Nearly 60% of respondents expect structured finance issuance to increase over the next 12 months, compared with 33% in the agency's previous survey. The 3Q14 reading is the highest in the history of the survey .......

    News Round-up 13 October 2014

  • LCR changes still penalise ABS

    As well as the release of the delegated acts under the Solvency 2 directive, the European Commission (EC) has updated its required liquidity coverage ratio (LCR) and its definition of high quality liquid assets (HQLA). All told, the treatment of securitisation has improved considerably, but remains less favourable than covered bonds.

    The LCR is intended to ensure banks hold sufficiently liquid .......

    News 13 October 2014

  • Punch restructuring launched

    All conditions to Punch's restructuring proposals have been satisfied (SCI passim). Following the termination of the interest rate swaps provided to the Punch A and Punch B securitisations, the issuer under the former securitisation has issued £123.4m in principal amount of super senior hedge notes to RBS and the issuer under the latter securitisation has entered into a £49m super .......

    News Round-up 10 October 2014

  • Reg AB 2 webinar scheduled

    SCI, in association with Lewtan, is hosting a webinar on the implementation of Regulation AB 2 at 3pm UK time/10am Eastern on 16 October. Click here to sign up for this complimentary event.

    Panellists include SNR Denton partner Steve Kudenholdt and Lewtan svp Ned Myers. The panel will discuss the nuances of the new shelf registration and asset-level .......

    News Round-up 10 October 2014

  • Further clarification needed

    Additional amendments to the Italian securitisation and covered bond law - introduced by Law 116 of 11 August - still do not fully mitigate account bank exposure, Fitch says. However, the agency concedes that they help clarify treatment of SPV accounts.

    Full clarification is unlikely until the Bank Recovery and Resolution Directive (BRRD) is incorporated into Italian law. As long .......

    News Round-up 9 October 2014

  • European ABS tiering continues

    Tiering between eligible and non-eligible ABSPP ABS/MBS assets has become increasingly evident this week and in to this morning's session.

    For non-eligible assets spreads have been driven wider on end-accounts selling to take as much profit as possible as prices move seemingly ever lower. Those profits are being utilised in eligible asset positions in the hope of further tightening and .......

    SCIWire 8 October 2014

  • Bank performance under consideration

    Given the proposed changes to its bank rating methodology, Moody's is considering adjusting how it reflects risk of bank performance in rating securitisations globally. These risks coincide with various roles banks play in structured transactions.

    The proposed changes to Moody's bank rating methodology aim to improve insight into how different regulatory approaches to bank resolutions may impact a bank's ability .......

    News Round-up 8 October 2014

  • Aircraft engine sale affirmed

    Blade Engine Securitization intends to sell a CFM56-3C1 aircraft engine out of the trust to a third party. Fitch notes that the move is unlikely to impact its ratings on the ABS transaction.

    The agency says that the engine in question is currently grounded. Therefore, its sale would provide cashflow to the trust from an asset that is currently not .......

    News Round-up 8 October 2014

  • Bankruptcy-remote approach explained

    Moody's has published its methodology for assessing the bankruptcy remoteness of SPEs in global structured finance transactions. Under the methodology, the agency notes that if an SPE is bankruptcy-remote, the risk of bankruptcy is so low that it has no rating impact. If it determines that an SPE is not bankruptcy-remote, it evaluates whether the risk of bankruptcy has a .......

    News Round-up 8 October 2014
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