ABS

  • 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

  • Watching waterfalls

    Call for increased derivatives disclosure in securitisations

    A first step towards creating a safe and transparent ABS market in Europe, in line with recent ECB rhetoric, could be greater scrutiny of cashflow waterfalls. A list of items that securitisation issuers should disclose has been put forward to facilitate such scrutiny.

    "Derivatives contracts at the top of cashflow waterfalls mean that most securitisations, in their current form, are .......

    News Analysis 20 August 2014

  • Cat bonds affirmed on annual resets

    S&P has affirmed its ratings on five natural-peril catastrophe bonds issued by three different issuers, which had annual resets of the probability of attachment. The affected tranches are: Compass Re Series 2011-I classes 1, 2 and 3; Embarcadero Re Series 2012-II class A; and Northshore Re Series 2013-I class A.

    In each case, the probability of attachment was reset to .......

    News Round-up 19 August 2014

  • Greek sovereign ceiling lifted

    Moody's has upgraded 20 tranches, affirmed one and placed another on watch for upgrade across nine Greek structured finance transactions. The move follows the raising of Greece's country ceiling to Ba3 from B3 and its sovereign rating to Caa1 from Caa3. The agency has also reassessed collateral performance and revised portfolio assumptions in three transactions.

    Moody's notes that the raising .......

    News Round-up 19 August 2014

  • Servicer advances 'attractive' despite headline risk

    Ocwen and HLSS last week announced that they will restate their financial statements for 2013 and 1Q14 and delay filing their second-quarter 10-Qs until the revisions have been completed. The move is due to a change in how Ocwen accounts for the valuation of 'rights to MSRs' that it had earlier sold to HLSS, according to Barclays Capital RMBS analysts.

    News 19 August 2014

  • Aviation attorney recruited

    Vanessa Gage has joined Reed Smith as a partner in San Francisco, where she is a member of the firm's financial industry group. Gage was previously an attorney in Mayer Brown's New York office, where she focused her practice on asset-based lending, securitisation and other structured products. She is especially known for her work on major aviation and rail deals.

    .......

    Job Swaps 19 August 2014

  • Valuations handbook released

    Voltaire Advisors has published its 2014 Valuation Risk Handbook, which aims to provide a true 'state of the nation' picture of the current valuations of financial assets landscape. The report covers ongoing developments in the regulatory and standards fields, including global valuations standards efforts, the fair value pricing of US mutual funds and the implications for valuation of the AIFMD .......

    News Round-up 18 August 2014

  • Punch seeking further support

    Punch Taverns has announced that its restructuring proposals for the Punch A and Punch B securitisations have the support of a broad range of stakeholders, which in aggregate own or control around 65% of the notes and around 54% of the equity share capital of the pubco. However, implementation of the proposals is conditional upon the approval of shareholders, all .......

    News Round-up 18 August 2014

  • Auto lending examined

    In its Q2 report on household debt and credit, the New York Fed finds that housing-related debt shrank, while non-housing debt balances increased across the board - with especially strong gains in auto loans. Auto loan balances - including leases - have increased for thirteen straight quarters and originations have not been this high since 3Q06.

    Against the backdrop of .......

    News Round-up 15 August 2014

  • Alta Group adds ABS pro

    The Alta Group has appointed Daryl Ching as md in Canada. He has more than 10 years of securitisation experience and was most recently at RBC Capital Markets, having previously worked at Coventree.

    .......

    Job Swaps 15 August 2014

  • Further capital charge reductions for Solvency 2

    Fitch reports that under the latest revisions to Solvency 2, capital charges for type 1 securitisation positions rated double-A, single-A and triple-B will be reduced by 29%, 46% and 41% respectively. The changes appear to be targeted at the issuance of securitisations backed by residential mortgages, consumer loans and particularly SME lending from southern European countries that cannot achieve triple-A .......

    News Round-up 14 August 2014

  • Euro markets unexpectedly busy

    Weakness in the broader financial markets brought volatility to the European ABS sector last week. An unseasonably high number of ABS bid-lists were observed, while activity is building in RMBS and the focus on CMBS has been on the unexpected postponement of a new issue.

    "The last week and a half has seen activity picking up strongly. It was quiet .......

    Market Reports 13 August 2014

  • Chinese ABS to 'build on recent successes'

    S&P reports that 23 financial institutions issued 43 securitisation transactions in the Chinese interbank bond market between the market's inception in 2006 and 31 May 2014, with an aggregate issuance amount of RMB179.3bn. The agency notes that recent growth of the sector has been significant, with about 40% of this volume being issued this year.

    "The market expects securitisation in .......

    News Round-up 13 August 2014

  • 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
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