ABS

  • 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

  • Greek sovereign ceiling raised

    Moody's has raised the maximum achievable rating for Greek structured finance transactions to Ba3 from B3, after it upgraded Greece's government bond rating to Caa1 from Caa3 and the local and foreign currency bond and deposit ceilings to Ba3 from B3. The agency says the move reflects the country's reduced economic, legal and political risks.

    Specifically, Moody's notes that the .......

    News Round-up 4 August 2014

  • Punch B upside expected

    With the ABI special committee now supporting the latest Punch restructuring proposal (SCI 22 July), it now appears likely that the restructuring could be completed within the next six months. European asset-backed analysts at Barclays Capital see most upside in the Punch B securitisation under this scenario, given that the Punch A class B notes have more value as currently .......

    News 1 August 2014

  • Auto losses maintain lower levels

    Annualised US prime auto losses were flat month-over-month through June this year at 0.24%, but remain far lower than the rates seen in 2005-2006, according to Fitch's latest index results for the sector. Annualised net losses (ANL) ranged from 0.52%-1.32% back in 2005-2006, while ANL were just 0.17%-0.49% in 2013-2014.

    Fitch's prime auto loan ABS 60+ days delinquency index stood .......

    News Round-up 1 August 2014

  • Duration benefits seen in Seaco deal

    Seaco's latest container deal - the US$500m Global SC Finance II series 2014-1 - is noteworthy not only for its size, but also for its structure. The transaction was last week upsized from US$400m before pricing, becoming the largest issuance seen in the sector since 2011.

    The structure features two pari passu tranches, each with a 10-year expected final maturity .......

    News Round-up 31 July 2014

  • Trade finance ABS to prepay

    Lighthouse Trade Finance Issuer I is to be redeemed on 18 August at the request of the originator BNP Paribas. The move comes almost a year after the transaction was completed (SCI 22 August 2013).

    Fitch, which rated the deal, notes that the originator has exercised an optional redemption and prepayment provision of the documentation. It is understood that the .......

    News Round-up 31 July 2014

  • Conduits benefitting from full support

    Moody's expects EMEA ABCP conduits to no longer be exposed to asset performance risk, as transactions financed by these conduits will almost exclusively be fully supported by liquidity support. The agency notes that the trend to fully supported transactions financed by EMEA ABCP has recently accelerated, with the conversion so far this year of two partially supported conduits - Scaldis .......

    News Round-up 31 July 2014

  • US ABS activity picks up

    After a slow start to the week, yesterday's session brought an increase in US ABS secondary market activity. BWIC volume climbed to US$184m as SCI's PriceABS data captured 28 unique US ABS tranches, including a number of auto and student names.

    A striking number of auto ABS tranches were making their first appearance in the PriceABS .......

    Market Reports 31 July 2014

  • SEC urged to complete ABS reforms

    A group of twelve US Senators this week sent a letter to SEC Chair Mary Jo White, pushing for the agency to finish four overdue reforms. The letter expresses concern about the slow pace of progress in putting "critical investor and systemic risk protections" related to securitisation in place, as set out in the Dodd-Frank Act.

    According to a recent .......

    News Round-up 31 July 2014

  • Methodology guidelines finalised

    Scope Ratings has finalised its methodology guidelines for rating and monitoring structured finance instruments, taking into account market comments and other feedback following the publication of a draft proposal. These guidelines provide the general framework for the development of in-depth methodologies. Scope plans to issue subsequent addenda to these guidelines in order to define its specific assumptions for rating structured .......

    News Round-up 31 July 2014

  • Interest underpayment corrected

    Comenity Bank has corrected an error in the calculation and distribution of interest to WFNMT 2014-A class A noteholders for the June and July 2014 distribution dates. The calculation of interest should have been based on the actual number of days in the related interest period, but was incorrectly calculated on a 30/360 basis, according to Bank of America Merrill .......

    News Round-up 29 July 2014

  • European alternative

    Stefan Bund, group md and head of asset-based finance at Scope Ratings, answers SCI's questions

    Q: How and when did Scope Ratings become involved in the securitisation market?
    A: Scope Ratings was established in 2002 as a funds analysis house, specialising in the commercial real estate, SME and infrastructure sectors. The company expanded into the credit rating business in 2012 by merging with a smaller German rating agency.

    Scope's move was .......

    Provider Profile 29 July 2014

  • Portuguese sovereign ceiling raised

    Moody's has raised the maximum achievable rating for Portuguese structured finance transactions to A3 from Baa1, following its upgrade of Portugal's government bond rating to Ba1 from Ba2, as well as Portugal's local and foreign currency bond and deposit ceilings to A3 from Baa1. The positive rating action was triggered by the agency's expectation that fiscal consolidation will remain on .......

    News Round-up 28 July 2014

  • Cat bond affirmed on reset

    S&P has affirmed its single-B rating on the series 2013-I class A notes issued by Everglades Re. The move follows the lowering of the catastrophe bond's attachment level to US$4.896bn and the resetting of the probability of attachment to 2.75%. The initial attachment level was US$5.139bn and the probability of attachment at closing was 2.91%, which - per the transaction's .......

    News Round-up 28 July 2014

  • RFC issued on CDQ, DP approach

    Moody's is seeking feedback on its proposed approach to assessing portfolios backed by Italian Cessione del Quinto (CDQ) and Delegazione di Pagamento (DP) consumer loans. The agency does not expect any rating changes for transactions backed by Italian CDQ and DP loans to result from adopting the approach.

    CDQ and DP loans have two main characteristics that separate them from .......

    News Round-up 25 July 2014

  • Call for cardinal credit scale

    A single, numerical public credit scale should serve as a yardstick of the quality of structured credit instruments in the US, not the current ordinal scale, according to a recent paper by Brookings senior fellow Robert Litan and R&R Consulting founding principal Ann Rutledge. Despite credit rating agencies being widely criticised post-crisis for their failure to warn investors of the .......

    News Round-up 25 July 2014

  • Hertz waiver welcomed

    Hertz has received a waiver from ABS bondholders in connection with its potential lease event of default, restoring the structure's revolving functionality (SCI 8 July). The move shows that the securitisation market can be responsive when technical consents are necessary, Citi ABS analysts suggest.

    "The ABS market is not accustomed to processing waivers, amendments and the like, and we had .......

    News Round-up 25 July 2014

  • Lebanese receivables ABS launched

    Bemo Securitisation and FFA Private Bank have closed SS-FUND 3 SIF, a Lebanese revolving trade receivables securitisation. The sponsor CTC has exclusive distribution rights for Samsung electrical home appliances and electronics in Lebanon.

    Backed by a diversified US$8.24m portfolio of trade receivables granted by CTC to mainly dealer clients, the transaction comprises US$5m of class A notes and US$2m of .......

    News Round-up 24 July 2014

  • Innovative SME financing structured

    A group of eight Italian SME water utility companies have, under the auspices of the EIB, completed a structured financing backed by their own mini-bonds. An SPV dubbed Viveracqua Hydrobond 1 subscribed to €150m of mini-bonds on a cross-collateralised basis, before issuing the same amount of ABS notes.

    Credit analysts at RBS note that this marks the first time that .......

    News Round-up 24 July 2014

  • MMF rules adopted

    The US SEC has adopted final amendments to Rule 2a-7 under the Investment Company Act of 1940. The amendments are designed to make money market funds (MMFs) more resilient by increasing the diversification of their portfolios and - given that MMFs are significant investors in ABS - are set to impact the securitisation market.

    The new rules require a floating .......

    News Round-up 24 July 2014

  • Tobacco ABS under pressure?

    The merger between Reynolds American and Lorillard could impact future payments to the Master Settlement Agreement (MSA) and put pressure on tobacco ABS pools, Fitch says. While Reynolds' share of the market will increase, the divestments to smaller tobacco manufacturers could increase the market share for manufacturers that do not pay into the MSA. The acquisitions by Imperial Tobacco do .......

    News Round-up 23 July 2014
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