ABS

  • US secondary activity picks up

    The US secondary markets were back up and running yesterday after the Labor Day holiday. Most activity was concentrated in ABS, but supply was also seen in the CMBS and non-agency RMBS segments.

    Bid-list volume for US ABS reached over US$250m yesterday, with credit card bonds providing the majority of the paper. A number of names were captured by SCI's .......

    Market Reports 3 September 2014

  • Ceasefire increase

    News of a ceasefire in the Ukraine has pulled credit indices tighter this morning and is expected to move European ABS spreads in the same direction on the back of increased trading activity.

    Peripherals remain the main focus of the market as real and fast money accounts seek to grow positions ahead of tomorrow's ECB meeting. Peripheral RMBS in particular .......

    SCIWire 3 September 2014

  • Mixed day so far

    The US structured finance markets are taking a while to find their feet today while off-BWIC Europe appears to be building up a head of steam - strong trading is continuing in European RMBS now including non-peripheral bonds.

    On the BWIC front, both sides of the Atlantic aren't seeing many new lists circulating. The CLO market has not so far .......

    SCIWire 2 September 2014

  • Euro markets hit re-set

    The European ABS market appears to have hit the re-set button this morning to signal the true end of summer with the return of the US today and in anticipation of the ECB meeting on Thursday - most ABS sectors are better bid but peripherals are once more leading the way.

    Meanwhile, a €5m slice of Dutch CMBS MESDG DELT .......

    SCIWire 2 September 2014

  • TRACE update to impact esoteric liquidity?

    The US SEC has approved amendments to TRACE dissemination rules, stipulating that CUSIP-level execution prices and original face values be publicly disclosed on ABS trades starting on 27 April 2015. The new rules are expected to have a limited impact on traditional ABS sectors, but could affect liquidity in non-traditional asset classes.

    SEC-registered and 144a ABS - defined as securitised .......

    News 1 September 2014

  • LCR vote scheduled

    The US Fed is to hold an open meeting on 3 September to vote on final regulations implementing the liquidity coverage ratio (LCR) requirement in the US. Proposed rulemaking regarding margin requirements for non-cleared swaps will also be discussed during the meeting.

    Together with the FDIC and the OCC, the Fed had initially proposed LCR regulations that would assign a .......

    News Round-up 28 August 2014

  • Reg AB, NRSRO rules finalised

    The US SEC yesterday unanimously adopted final rules under Regulation AB 2 that substantially revise the offering process, disclosure and reporting requirements for registered offerings of ABS. The rules implement several key areas of reform - while deferring action on other significant aspects of the original proposals - and aren't expected to be too onerous for auto ABS or CLO .......

    News 28 August 2014

  • Stable default rates for Japanese auto ABS

    Japanese auto loan ABS default rates are more stable than those for US prime auto loan ABS, according to Moody's latest Structured Thinking: Asia Pacific publication. The agency notes that this is because their loan pools comprise higher quality debtors that are less prone to unemployment during periods of economic weakness.

    "For example, default rates for Japanese auto loan ABS .......

    News Round-up 27 August 2014

  • Low Euro default rates continue

    The credit performance of European structured finance transactions continues to be resilient. Only 1.6% by original issuance volume of notes outstanding in mid-2007 had defaulted by end-2Q14, according to S&P.

    At end-2Q14, the 12-month rolling default rate declined to 0.16%, its lowest level since 1Q10. "At 14.8% at the end of 2Q14, the 12-month rolling downgrade rate has slightly declined .......

    News Round-up 27 August 2014

  • Reg AB 2 concerns highlighted

    Lewtan has published the results of a survey of securitisation professionals that aims to understand the market's readiness in adopting the US SEC's Regulation AB 2 proposal and re-proposal. The survey confirms that many issuers and investors are concerned by the potential risks introduced by the re-proposal, particularly regarding how 'potentially sensitive' data is to be provided and handled.

    Respondents .......

    News Round-up 27 August 2014

  • Credit vet recruited

    Hermes Fund Managers has appointed Zoë Shaw as head of fixed income, reporting to ceo Saker Nusseibeh. In this new role, she will build on the firm's fixed income and credit capabilities to create a range of specialist credit capabilities that leverage Hermes' unique ownership structure.

    Shaw joins from Promethion, where she was md since 2009. Prior to that, she .......

    Job Swaps 27 August 2014

  • RFC issued on venture debt ABS

    Moody's is seeking feedback on its proposed approach to rating venture debt-backed ABS. The agency expects that adoption of the credit rating methodology would result in downgrades of up to one or two notches on its ratings of currently outstanding US venture debt transactions.

    The proposed approach includes assumptions about asset correlation, obligor default probabilities and recovery rates on defaulted .......

    News Round-up 26 August 2014

  • Sunshine Act meeting scheduled

    The US SEC is set to hold an open meeting tomorrow (27 August) pursuant to the provisions of the Sunshine Act. The topics slated for discussion include the new Regulation AB 2 and nationally recognised statistical rating organisations (NRSROs) rules.

    Specifically, the Commission will consider whether to adopt rules revising the disclosure, reporting and offering process for ABS. The revisions .......

    News Round-up 26 August 2014

  • 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
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