ABS

  • 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

  • MSA payments drop

    Fitch has completed its annual ratings review of tobacco ABS, accounting for the amount of Master Settlement Agreement (MSA) payment received by each trust in 2014. The agency reports that this year the aggregate MSA payment is 18.46% lower than the amount in 2013.

    This drop is due to the one-time settlement payment received by 20 settling states and territories .......

    News Round-up 11 August 2014

  • SMB completes debut SLABS

    Sallie Mae has completed its first student loan ABS as a standalone consumer banking business, as well as the definitive agreement for its first loan sale. Dubbed SMB Private Education Loan Trust 2014-A, the securitisation was secured by approximately US$380m of Smart Option student loans. All securities - including the entire residual interest in the loans - were privately placed .......

    News Round-up 11 August 2014

  • RFC issued on trustee role

    SEBI has released for comment a concept paper regarding the introduction of a standardised term sheet for securitisation transactions. The aim is to rationalise, clarify and enhance various aspects of the Indian market, such as eligibility criteria, roles and responsibilities associated with securitisation trustees.

    Schedule III of the country's Securitised Debt Instruments Regulations states that it is the duty of .......

    News Round-up 11 August 2014

  • Element beefs up SF team

    Element Financial Corporation has appointed a team of structured finance veterans in Stamford, Connecticut, who previously worked at Credit Suisse. The members of the team specialise in structuring, investing and syndicating rail and aviation equipment finance deals.

    The team is led by Scott Corman. He is joined by Imran Hussein - who has been named md - as well as .......

    Job Swaps 11 August 2014

  • Subprime auto investigation widens

    Santander Consumer USA disclosed in its latest 10-Q filing that it has been issued a civil subpoena by the US Department of Justice requesting documents relating to the underwriting and securitisation of non-prime auto loans since 2007. This follows the subpoena of GM in connection with a DOJ investigation in contemplation of a civil proceeding for potential violations of the .......

    News Round-up 11 August 2014

  • ECB to hire ABS consultant

    Mario Draghi, president of the ECB, disclosed in a press briefing following yesterday's Governing Council meeting that the bank is set to hire a consultant to help it design its ABS QE programme. He said that the ECB has intensified its preparations in connection with the securitisation market, with various committees of the bank involved in these efforts.

    "Our monetary .......

    News Round-up 8 August 2014

  • UK card delinquencies hit all-time low

    UK credit card charge-offs and delinquencies fell to a new all-time low in 2Q14, after losing momentum in the first three months of the year, according to Fitch's latest indices for the sector. The improvements were slightly exaggerated by the exclusion of the fully repaid Sherwood trust from the indices.

    Fitch expects charge-offs to keep falling slightly or remain stable .......

    News Round-up 8 August 2014

  • Japanese credit quality correlations examined

    Japanese structured finance credit performance and fundamentals have generally remained stable for the past couple of years. However, transaction-specific risks and certain macroeconomic elements remain key factors with the greatest potential to undermine this stability, according to S&P.

    The agency says the top-five macroeconomic factors that have been leading indicators of the credit quality of Japanese structured finance deals in .......

    News Round-up 8 August 2014

  • Servicer swap for Spanish card ABS

    Fitch says that it does not expect any immediate performance or rating impact on the IM Citi Tarjetas 1 credit card ABS, following Citibank Espana's exit of the Spanish credit card market. Citibank Espana is asset servicer for the securitisation.

    Bancopopular-e, an independent banking franchise of Banco Popular Espanol, is expected to acquire Citibank Espana's credit card business and thus .......

    News Round-up 8 August 2014

  • Conflict of interest

    Litigation activity turning towards trustees

    The focus of US financial crisis-related litigation activity is turning towards the trustee community. The fundamental issue at stake in this new breed of dispute is who's going to pay.

    Pre-crisis securitisations were often structured with little consideration for the conflict of interest between parties seeking resolution to an issue and those with the ability to authorise the pursuit of .......

    News Analysis 8 August 2014

  • Green bond committee formed

    After support for a set of green bond principles (GBP) was announced earlier in the year (SCI 14 January), an initial executive committee has now been appointed to oversee the GBP governance framework. The committee consists of representatives from 18 organisations, including investors, issuers and underwriters.

    The committee's key priority will be to oversee the 2015 update of the principles .......

    Job Swaps 7 August 2014

  • LatAm receivables ABS gaining track record

    S&P reports that it has rated 107 Latin American trade receivables ABS transactions, with 224 classes of debt, since it began rating these types of securitisations in the region 10 years ago. Of this approximately US$6.2bn of rated volume, 81% was backed by Brazilian assets.

    S&P notes that successful examples of how this funding technique has benefitted both companies and .......

    News Round-up 7 August 2014

  • Russian DPR deal downgraded

    Fitch has downgraded Roof Russia DPR Finance Company to triple-B plus from single-A minus, outlook negative. The rating action comes after the downgrade of originator ZAO Raiffeisenbank (RBRU), following the revision of Russia's country ceiling to triple-B from triple-B plus.

    The rating of Roof Russia DPR's notes remains one notch above RBRU's long-term local currency IDR. Negative outlooks on the .......

    News Round-up 6 August 2014

  • APAC downgrade rate trends higher

    Moody's reports that in 2013 the 12-month downgrade rate for its Asia-Pacific (ex-Japan) structured finance portfolio trended higher on a year-on-year basis, rising from 4.2% to17.5%. Over the same period, the 12-month upgrade rate increased slightly from 0.7% to 1.7%.

    The average notches per downgraded issuer rose to 6.2 notches, more than double the 2.5 notches observed in 2012. The .......

    News Round-up 6 August 2014

  • RFC issued on transformer criteria

    AM Best is requesting feedback on a new draft criteria report on rating reinsurance/insurance transformer vehicles. The report describes the rating agency's approach and highlights rating considerations unique to the evaluation of ILS transformer vehicles and the process by which the transformer vehicles act as an intermediary to transfer insurance risks to various counterparties.

    The new criteria generally apply to .......

    News Round-up 6 August 2014

  • Accounting to drive tender activity

    European securitisation analysts at Citi suggest that only securitisations that are consolidated on bank balance sheets are likely to be tendered going forward because the originator will not recognise any accounting gain from the buyback of bonds issued by deconsolidated entities. The implementation of IFRS 10 could prompt more originators to reassess their control over SPVs and may lead to .......

    News 5 August 2014

  • Timeshare delinquencies hit post-crisis lows

    Total US timeshare ABS delinquencies for 2Q14 stood at 2.92%, down from 3.19% in 1Q14 and 3.05% in 2Q13, according to Fitch's latest index results for the sector. This marks two years of consistent year-over-year improvement and is the lowest level of delinquencies reported by the Fitch index since 2007.

    The agency notes that defaults are consistent with last quarter, .......

    News Round-up 5 August 2014

  • Queen Street III defaults

    S&P has lowered to D (default) from double-C its rating on the US$150m Queen Street III Capital catastrophe bond, sponsored by Munich Re. The transaction covered losses due to major European windstorms between July 2011 and July 2014.

    The downgrade reflects the fact that noteholders did not receive at least 99.99% of the outstanding principal back on the notes' redemption .......

    News Round-up 5 August 2014

  • Subprime auto investigation underway

    The US Department of Justice has issued a subpoena to General Motors Financial Company, directing the firm to produce certain documents relating to its origination and securitisation of subprime auto loans since 2007. The move is in connection with a DOJ investigation in contemplation of a civil proceeding for potential violations of the Financial Institutions Reform, Recovery and Enforcement Act .......

    News Round-up 5 August 2014

  • Basel 3 jurisdictional differences emerging

    Moody's reports that while Basel 3 implementation is proceeding globally, notable differences are evident between jurisdictions in a number of areas, including pace, the degrees of strictness relative to Basel Committee guidance and the resulting challenges that banks face. The agency suggests that some of the weaknesses associated with Basel 2 have not been sufficiently addressed and that it is .......

    News Round-up 4 August 2014
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