ABS

  • Rating agency names mortgage head

    S&P has promoted Waqas Shaikh to lead analytical manager for mortgage-bond ratings and surveillance in the US. He is based in New York and reports to Mike Binz, head of North American ABS and RMBS ratings.

    Shaikh will focus on new issues and on-going deal surveillance. He was previously part of the global risk management group and has been with .......

    Job Swaps 9 July 2014

  • Record low for card delinquencies

    US credit card ABS delinquencies closed June with another record low, while excess spread remained at historical highs. Fitch's 60+ Day Delinquency Index decreased by another 6bp to 1.09% and now stands 76% below its peak level registered at end-2009. At the same time, Fitch's Prime Credit Card Three-Month Average Excess Spread Index maintained its record high of 13.27% for .......

    News Round-up 8 July 2014

  • Ratings sensitivity analysis released

    S&P has outlined five of the top macroeconomic factors that it believes are most relevant to the credit quality of European structured finance securities and, therefore, to its rating actions. These factors include GDP growth, the unemployment rate, property prices, bank equity returns and corporate credit risk premia.

    The report is an update of a study the agency published in .......

    News Round-up 8 July 2014

  • Stable outlooks dominate APAC

    Fitch affirmed 195 Asia-Pacific structured finance (SF) tranches in 2Q14. The agency also upgraded seven tranches and downgraded three others.

    Of the total affirmations, 77 were from Australia, which also contributed five of the upgrades during the quarter. The upgrades were made to prime RMBS and unsecured consumer loan ABS bonds, where a build-up of credit enhancement supports the higher .......

    News Round-up 8 July 2014

  • Jumbo cat bonds drive record issuance

    Last quarter saw the largest-ever issuance volumes in the history of the non-life catastrophe bond market, with US$4.5bn of capacity issued through 17 tranches, according to Willis Capital Markets & Advisory's latest ILS market update. This compares with US$3.3bn issued via 17 tranches in 2Q13 and the previous quarterly record of US$3.5bn issued in 2Q07.

    The record issuance volume was .......

    News Round-up 8 July 2014

  • Covenant waive requested

    Further details have emerged about the delay in Hertz's 1Q14 Form 10-Q filing (SCI 4 July). Due to a number of accounting errors, the firm is to restate its 2011 financial statements and review the corporate financial statements for 2012 and 2013.

    The nature of the accounting issues appear to be primarily non-cash items and do not seem to be .......

    News Round-up 8 July 2014

  • SRT guidelines released

    The EBA has published a final set of guidelines designed to support both originator institutions and competent authorities in the assessment of significant risk transfer (SRT) for securitisations. The guidelines aim to ensure a more consist approach in the assessment of significant risk transfer across the EU and to achieve a level playing field in this area.

    The EBA says .......

    News Round-up 8 July 2014

  • FIGSCO rating approach explained

    The rating of Goldman Sachs' latest secured funding product - dubbed Fixed Income Global Structured Covered Obligation (FIGSCO) - would most likely be equalised with that of the total return swap provider, says Fitch. The transaction is secured by a wide range of fixed income assets, including securitised debt, with overcollateralisation (OC) levels that are marked to market daily.

    Fitch .......

    News Round-up 7 July 2014

  • Amlin ups interest in ILS manager

    Amlin has reached a non-binding agreement in principle to increase its existing interest in Leadenhall Capital Partners (LCP), which Amlin established in joint venture with LCP's individual partners in 2008. Under the terms of the agreement, Amlin will increase its current 40% interest in the business to 75%.

    The consideration will be determined by the profitability of the business, subject .......

    Job Swaps 7 July 2014

  • Clean-up call candidates identified

    The ECB's TLTRO operation entitles banks to initially borrow up to €400bn for four years at a fixed rate of 25bp. The availability of this low-cost funding increases the likelihood of originators exercising clean-up calls in European ABS and RMBS deals, according to Citi securitised product strategists.

    Issuers generally have the right to call outstanding notes at par once the .......

    News 4 July 2014

  • Investor confidence underscored

    Efforts to improve the functioning of the European securitisation market will not be successful without a confident investor base, Fitch suggests. The agency says that investor confidence is limited by the lack of clarity and consistency in the regulatory treatment of securitised paper and that issuing additional or alternative ratings which ignore some credit risks present in securitisations could ultimately .......

    News Round-up 4 July 2014

  • Hertz delay to trigger lease EOD?

    The Hertz Corporation has delayed filing its 1Q14 10-Q financial statement, triggering a potential lease event of default within its US rental car ABS structures that could cause an amortisation event for each series of notes secured by the lease. After applicable grace periods expire and absent a cure, a vote by more than 50% of class A noteholders of .......

    News Round-up 4 July 2014

  • Green light for ABS, RMBS ratings

    Morningstar Credit Ratings' designation on the NAIC credit rating provider (CRP) list has been extended to cover all ABS and MBS. Previously the designation only covered CMBS.

    The amendment became effective last month and provides insurance companies with an extra option among rating providers for determining risk-based capital under NAIC guidelines. Investors using a designated CRP are exempt from making .......

    News Round-up 3 July 2014

  • Cat bond pricing floor emerging?

    Munich Re last week withdrew its latest catastrophe bond issuance - Queen Street X - due to weak demand. Pushback on the deal's pricing could be a sign that investors are approaching a limit on acceptable catastrophe risks, according to Fitch.

    Ratios of risk premiums to expected loss have fallen dramatically in the cat bond market over the past several .......

    News Round-up 3 July 2014

  • CCRIF sees cat bond firsts

    GC Securities has placed the first catastrophe bond directly issued by the World Bank, via member institution the IBRD. The US$30m CCRIF catastrophe-linked capital at risk notes provide three years of annual aggregate protection for hurricane and earthquakes affecting 16 Caribbean countries participating in the Caribbean Catastrophe Risk Insurance Facility (CCRIF), representing the first time that the initiative has tapped .......

    News Round-up 3 July 2014

  • Securitisation task force established

    The Basel Committee and IOSCO are co-leading a task force that will undertake a wide-ranging survey of global securitisation markets. To gain a better understanding of market participants' views, the cross-sectoral Task Force on Securitisation Markets has set up an online survey, which should be completed by 25 July.

    Established in consultation with the International Association of Insurance Supervisors (IAIS) .......

    News Round-up 3 July 2014

  • CLO lawyer becomes partner

    Appleby has promoted Benjamin Woolf to partner. The structured finance specialist is a member of the corporate and commercial practice group.

    Woolf has particular expertise in CLOs. Before joining Appleby in 2011 he worked at Clifford Chance and Mayer Brown, where he focussed mainly on securitisation and asset-backed financing.

    .......

    Job Swaps 3 July 2014

  • Italian servicers adapting to NPL increase

    S&P suggests that the recent rise in Italian non-performing loan volumes could create new growth opportunities for Italian loan servicers. The agency reports that the Italian servicers it ranks have positioned themselves well to be able to manage some of the NPLs that banks and financial institutions could either sell to investors or outsource the servicing.

    The volume of NPLs .......

    News Round-up 2 July 2014

  • PCS criteria revised

    Prime Collateralised Securities (PCS) has introduced the first substantial revision of its criteria in relation to high quality securitisations. The move is designed to raise the standard enshrined in the label, with a few criteria being softened or removed when they proved not to add anything to the quality represented by the label or when the market could demonstrate that .......

    News Round-up 2 July 2014

  • Slow start for US ABS

    US ABS bid-list activity was very low to start the holiday-shortened week. SCI's PriceABS data picked up student loan paper from both Sallie Mae and Navient, which spilt off in April.

    ABS BWIC volume for the session was just US$35m according to Interactive Data. Along with the student loan tranches there was also some credit card .......

    Market Reports 1 July 2014

  • SLABS delinquencies tick down

    Delinquencies remain stable to slightly lower for US private label student loan ABS. Fitch's latest quarterly index suggests delinquencies could decline further in the coming months.

    There was a very slight decrease in 90- and 120-day delinquencies in the first quarter of the year. Late-pays on for-profit student loan ABS declined to 0.76% in Q1, while late-pays on not-for-profits fell .......

    News Round-up 1 July 2014
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