ABS

  • RFC issued on debt fund approach

    Scope Ratings is requesting comments on its recently-published debt fund rating methodology, which entails assigning a credit rating and a risk-return rating to funds invested in debt products. The agency anticipates further strong growth in this segment in Europe (SCI 29 July).

    In the real estate segment alone, the number of new debt funds increased sharply from six in 2012 .......

    News Round-up 22 August 2014

  • European operations spun off

    Institutional Financial Markets Inc (IFMI) is to sell its European operations for approximately US$8.7m to C&Co Europe Acquisition, an entity controlled by Daniel Cohen, president and chief executive of IFMI's European operations and IFMI vice-chair. The purchase price consists of an upfront payment at closing of US$4.75m and up to US$3.95m to be paid over the four years following the .......

    Job Swaps 22 August 2014

  • BWIC 'interface' launched

    DealVector has launched a central repository for daily BWIC information, which aims to improve liquidity in structured markets. Dubbed BWIC Board, it is a single interface that provides a simple overview of the entire market and notification linkages based on investor preferences.

    The platform says that brokers who contribute BWIC list data will maintain control of their relationships while receiving .......

    News Round-up 22 August 2014

  • Auto ABS widening underlined

    US ABS bid-list supply rose to around US$95m yesterday, with a block of auto floorplan bonds making up about half of the volume. Auto loan tranches accounted for the majority of the remaining BWIC items and reflected the recent spread widening seen in the sector.

    The floorplan paper out for the bid yesterday was AMOT 2010-2 A, which was talked .......

    Market Reports 21 August 2014

  • Impact of Argentinean default weighed

    Argentina's sovereign default increases the likelihood of rising inflation and falling employment and real wages, threatening the performance of certain ABS, Moody's says. Securitisations backed by unsecured consumer loans whose payments are not automatically deducted from borrowers' accounts will be hardest hit by the sovereign's default.

    "Borrowers who use automatic payment deduction typically have more stable jobs in the public .......

    News Round-up 21 August 2014

  • Auto ABS issuer fined

    The Consumer Financial Protection Bureau (CFPB) has taken action against First Investors Financial Services Group for distorting consumer credit records. The agency claims that the auto finance company failed to fix known flaws in a computer system that was providing inaccurate information to credit reporting agencies, potentially harming tens of thousands of its customers.

    A CFPB investigation found that First .......

    Job Swaps 21 August 2014

  • Bond insurance value recognised

    Bond insurance can have significant value, even when the bond insurer is rated the same or lower than the underlying rating on the wrapped bond, Fitch suggests. In the agency's view, the more important rating relationship is the relative difference between the bond insurer's rating and the underlying bond rating at the time the wrapped bond comes under stress.

    "As .......

    News Round-up 20 August 2014

  • Subprime auto delinquencies moderating

    Moody's does not expect US subprime auto loan losses to reach crisis levels. The agency explains that although delinquencies have risen over the last few years, they remain below the levels at the height of the financial crisis and have started to moderate.

    "Subprime auto lenders have already started to rein in lending to weaker credit-quality borrowers," says Moody's svp .......

    News Round-up 20 August 2014

  • Watching waterfalls

    Call for increased derivatives disclosure in securitisations

    A first step towards creating a safe and transparent ABS market in Europe, in line with recent ECB rhetoric, could be greater scrutiny of cashflow waterfalls. A list of items that securitisation issuers should disclose has been put forward to facilitate such scrutiny.

    "Derivatives contracts at the top of cashflow waterfalls mean that most securitisations, in their current form, are .......

    News Analysis 20 August 2014

  • Cat bonds affirmed on annual resets

    S&P has affirmed its ratings on five natural-peril catastrophe bonds issued by three different issuers, which had annual resets of the probability of attachment. The affected tranches are: Compass Re Series 2011-I classes 1, 2 and 3; Embarcadero Re Series 2012-II class A; and Northshore Re Series 2013-I class A.

    In each case, the probability of attachment was reset to .......

    News Round-up 19 August 2014

  • Greek sovereign ceiling lifted

    Moody's has upgraded 20 tranches, affirmed one and placed another on watch for upgrade across nine Greek structured finance transactions. The move follows the raising of Greece's country ceiling to Ba3 from B3 and its sovereign rating to Caa1 from Caa3. The agency has also reassessed collateral performance and revised portfolio assumptions in three transactions.

    Moody's notes that the raising .......

    News Round-up 19 August 2014

  • Servicer advances 'attractive' despite headline risk

    Ocwen and HLSS last week announced that they will restate their financial statements for 2013 and 1Q14 and delay filing their second-quarter 10-Qs until the revisions have been completed. The move is due to a change in how Ocwen accounts for the valuation of 'rights to MSRs' that it had earlier sold to HLSS, according to Barclays Capital RMBS analysts.

    News 19 August 2014

  • Aviation attorney recruited

    Vanessa Gage has joined Reed Smith as a partner in San Francisco, where she is a member of the firm's financial industry group. Gage was previously an attorney in Mayer Brown's New York office, where she focused her practice on asset-based lending, securitisation and other structured products. She is especially known for her work on major aviation and rail deals.

    .......

    Job Swaps 19 August 2014

  • Valuations handbook released

    Voltaire Advisors has published its 2014 Valuation Risk Handbook, which aims to provide a true 'state of the nation' picture of the current valuations of financial assets landscape. The report covers ongoing developments in the regulatory and standards fields, including global valuations standards efforts, the fair value pricing of US mutual funds and the implications for valuation of the AIFMD .......

    News Round-up 18 August 2014

  • Punch seeking further support

    Punch Taverns has announced that its restructuring proposals for the Punch A and Punch B securitisations have the support of a broad range of stakeholders, which in aggregate own or control around 65% of the notes and around 54% of the equity share capital of the pubco. However, implementation of the proposals is conditional upon the approval of shareholders, all .......

    News Round-up 18 August 2014

  • Auto lending examined

    In its Q2 report on household debt and credit, the New York Fed finds that housing-related debt shrank, while non-housing debt balances increased across the board - with especially strong gains in auto loans. Auto loan balances - including leases - have increased for thirteen straight quarters and originations have not been this high since 3Q06.

    Against the backdrop of .......

    News Round-up 15 August 2014

  • Alta Group adds ABS pro

    The Alta Group has appointed Daryl Ching as md in Canada. He has more than 10 years of securitisation experience and was most recently at RBC Capital Markets, having previously worked at Coventree.

    .......

    Job Swaps 15 August 2014

  • Further capital charge reductions for Solvency 2

    Fitch reports that under the latest revisions to Solvency 2, capital charges for type 1 securitisation positions rated double-A, single-A and triple-B will be reduced by 29%, 46% and 41% respectively. The changes appear to be targeted at the issuance of securitisations backed by residential mortgages, consumer loans and particularly SME lending from southern European countries that cannot achieve triple-A .......

    News Round-up 14 August 2014

  • Euro markets unexpectedly busy

    Weakness in the broader financial markets brought volatility to the European ABS sector last week. An unseasonably high number of ABS bid-lists were observed, while activity is building in RMBS and the focus on CMBS has been on the unexpected postponement of a new issue.

    "The last week and a half has seen activity picking up strongly. It was quiet .......

    Market Reports 13 August 2014

  • Chinese ABS to 'build on recent successes'

    S&P reports that 23 financial institutions issued 43 securitisation transactions in the Chinese interbank bond market between the market's inception in 2006 and 31 May 2014, with an aggregate issuance amount of RMB179.3bn. The agency notes that recent growth of the sector has been significant, with about 40% of this volume being issued this year.

    "The market expects securitisation in .......

    News Round-up 13 August 2014

  • LMA enhancements highlighted

    Credit Agricole recently amended its ABCP programme LMA by adding the capacity to issue structured notes with interest paid at fixed or floating rates, becoming the first bank-sponsored conduit outside of the US to do so. Enhanced liquidity coverage tests ensure that LMA investors will still receive full and timely repayment on their CP up to the final maturity date, .......

    News Round-up 12 August 2014
×