ABS

  • 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

  • Japanese PPR credit positive

    A record high principal payment rate (PPR) on credit cards in Japan is credit positive, Moody's notes in its latest Structured Thinking: Asia Pacific publication. The rate means securitisations backed by Japanese credit cards have a reduced risk of losses from defaults.

    A high PPR encourages card holders to clear their debt sooner, which shortens credit card ABS maturities and .......

    News Round-up 1 July 2014

  • Autos fuel ABS activity

    US ABS secondary market activity remained moderate in yesterday's session, with BWIC volume of a little over US$200m. SCI's PriceABS data shows a large number of auto ABS tranches out for the bid.

    ACAR 2014-2 C was talked in the low/mid-200s - as it had been on Monday - and was covered in the low-200s. The .......

    Market Reports 25 June 2014

  • Auto underwriting concerns raised

    US auto ABS performance for the rest of 2014 should be stable despite increased concern about underwriting, says Fitch. Losses are expected to hover at or near record lows for prime auto ABS.

    The rating agency notes that underwriting is becoming more aggressive, with a rising number of lowest-FICO and credit tier buckets in prime auto ABS pools. If that .......

    News Round-up 25 June 2014

  • FFELP servicers on top of reject rates

    US FFELP student loan ABS servicers "have done an admirable job" keeping net claim reject rates down, says Fitch. However, the rating agency is unsure that this can be maintained.

    Since the FFELP programme ended in 2010, servicers have had to adjust to several changes. Keeping net claim reject rates under control in order to prevent sizable ABS losses has .......

    News Round-up 25 June 2014

  • Card delinquencies to hit new lows

    Credit card ABS delinquencies should reach new lows for the May reporting period, says Fitch. Prime chargeoffs are also expected to decline toward previous records and the 60-plus day delinquency index should also approach its low, although retail chargeoffs are anticipated to rise slightly.

    Delinquencies may rise again slightly but should stay below historic averages as originators begin to loosen .......

    News Round-up 24 June 2014

  • FFELP ABS criteria updated

    Fitch has published its updated criteria for rating US FFELP student loan ABS. The changes revise the agency's standard default rate assumptions and extend the default timing for consolidation loans.

    Fitch's standard default rate assumptions used in cash flow modelling when issuer-specific data is not available are based on 22 years of industry FFELP loan performance. Recent performance data indicates .......

    News Round-up 24 June 2014

  • Euro ABS trader joins NY team

    One William Street Capital Management has added Chris Brown as a vp in New York to support the firm's European ABS trading business. He was most recently a European RMBS and ABS trading vp at Deutsche Bank and has also worked for Capital One.

    .......

    Job Swaps 24 June 2014

  • Peripheral possibilities

    Peripheral RMBS relative value explored

    The recently announced €1bn-plus Berica ABS 3 RMBS transaction has piqued investor interest in peripheral paper. Publically distributed Italian RMBS has been rare post-financial crisis, but it could offer compelling relative value.

    The peripheral European housing markets have emerged from the financial crisis in varying states of health. This is at least in part because of differing governmental approaches, but .......

    News Analysis 23 June 2014

  • Servicing pro appointed

    Krupali Mehta has joined Link Financial Group. She will lead the backup servicing team.

    Mehta specialises in the servicing and management of securitised transactions and most recently worked for Hatfield Philips, overseeing CMBS portfolios. She has also worked at Allied Irish Bank as a credit analyst.

    .......

    Job Swaps 23 June 2014

  • Tough times

    Recruitment quiet as markets squeezed

    The tone in structured finance recruitment on each side of the Atlantic is cautious at best. While hiring continues in both the US and Europe, it is limited and must be set against the backdrop of other large teams being closed down.

    Partially the issue is that markets are not providing the kind of opportunities that people had hoped for. .......

    News Analysis 20 June 2014

  • Nat cat bonds affirmed

    S&P has affirmed its ratings on 18 natural-peril catastrophe bonds issued by 10 different issuers, following the annual resets of the probability of attachment. In each case, the probability of attachment was reset to a percentage consistent with the transaction documents and the current rating. In addition, the agency reviewed the creditworthiness of each ceding company and the ratings on .......

    News Round-up 20 June 2014

  • Credit unions set to securitise

    The US National Credit Union Administration Board unanimously approved five items at its sixth scheduled open meeting of 2014, two of which are related to securitisation and another to mortgage modifications. The Board proposed rules that would allow qualified institutions to securitise loans they have originated and create safe-harbour protection for certain securitised assets.

    Under the proposal, qualified federal credit .......

    News Round-up 20 June 2014

  • Esoteric ABS pro recruited

    Guggenheim Securities has appointed Matt Bissonette as an md in its fixed income division in New York. He will work on structured products transactions with a focus on esoteric ABS.

    Bissonette specialises in telecommunications infrastructure securitisation. He was previously at Deutsche Bank, where he was co-head of the special situations sector within structured credit.

    .......

    Job Swaps 20 June 2014

  • Auto ABS ratings supported

    Steady historical performance and strong structural protections in auto loan ABS globally have supported credit quality and the resulting ratings upgrades of securities in the sector, Moody's reports. The agency says it rates most auto loan ABS in North America, Europe, Asia Pacific and South America investment grade or at the maximum achievable rating in the country.

    At issuance Moody's .......

    News Round-up 19 June 2014

  • Markit IPO upsized

    Markit has upsized and priced its IPO for 53,472,353 common shares at a price of US$24 per share. This constitutes an upsize of the IPO of 7,764,388 shares or 17%.

    All of the common shares are being sold by selling shareholders and Markit will not receive any proceeds from the offering. The underwriters have a 30-day option to purchase up .......

    Job Swaps 19 June 2014

  • Lack of trust?

    Aussie regulator not rushing master trusts

    Australian securitisation activity is on the rise but is not being helped by the attitude of the market's regulator. APRA appears to be dragging its heels on introducing master trusts and its cautious approach is attracting criticism.

    "It can appear as though APRA does not want master trusts to work in Australia. Unfortunately, it seems like this opposition - if .......

    News Analysis 19 June 2014

  • Streamlined cat bond facility launched

    Aon Benfield Securities has launched CATstream, a new facility that is designed to offer cedants faster and more efficient access to capital markets capacity for catastrophe risk. Featuring template documentation and pre-agreed wordings, CATstream enables catastrophe bonds to be established in less than half the time of the typical non-standardised products. With faster access to capital markets capacity, cedants can .......

    News Round-up 19 June 2014

  • Russian framework 'credit positive'

    The new Russian structured finance legislative platform is credit positive for the country's securitisation market, says Moody's. The agency notes that the new framework contains the key elements required for a broad range of securitisation and project finance structures and will provide onshore alternatives to securitisation transactions that were previously possible only via offshore issuing vehicles.

    "The new legislation limits .......

    News Round-up 18 June 2014

  • Compression trades

    European ABS relative value discussed

    Spread compression has made identifying relative value in the European ABS market more difficult. However, panellists participating in IMN's Global ABS research analyst roundtable agreed that opportunities remain in certain peripheral RMBS, UK non-conforming RMBS and CMBS bonds.

    Shammi Malik, head of European ABS trading at Stormharbour, noted that the compression trade has gained such momentum that from a relative .......

    News Analysis 17 June 2014

  • Pub acquisition welcomed

    Mitchells & Butlers has acquired 173 Orchid pubs for £266m on an EBITDA multiple of 10 times, after taking into account cost savings and synergies. Barclays Capital European asset-backed analysts view the move as a slight positive for the pub securitisation, since assets will be retained within the overall group rather than using group cash for a special dividend.

    The .......

    News Round-up 16 June 2014
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