ABS

  • 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

  • SDART payment error corrected

    Santander Consumer USA (SCUSA) last week made a US$71m capital contribution to correct a payment distribution error in the SDART 2013-5 class A2 notes. Moody's notes in its latest Credit Outlook that such servicer error and lapses in transaction governance are operational risks in securitisations that financially strong servicers can remedy, if necessary.

    The transaction documents for SDART 2013-5 specify .......

    News Round-up 16 June 2014

  • HQS legislation mooted

    The EBA is working with other regulators to find the best way to create a definition and appropriate prudential treatment to support high quality securitisation issuance, according to Adam Farkas, executive director at the authority. In the second keynote address at IMN's Global ABS conference yesterday, he also called for the industry's cooperation to prevent past abuses from reoccurring and .......

    News 13 June 2014

  • 'Limited impact' from PAYE proposal

    President Obama's plan to expand the PAYE programme for all student loans made by the US government (SCI 10 June) could slow prepayment rates and ABS bond amortisations, say Wells Fargo ABS analysts. Investors should not be too strongly affected.

    The analysts note that student loan ABS investors have shown little concern about the pace of amortisation, based on secondary .......

    News Round-up 12 June 2014

  • Core auto delinquencies to stay low

    The stable macroeconomic outlook for the coming two years and historical delinquency rates mean delinquencies should remain low in core European auto ABS markets, says Moody's. The UK, German and French markets have rebounded strongly since 2009.

    Unemployment drove delinquencies in the UK, Germany and France at the height of the financial crisis and the volatility of delinquencies during the .......

    News Round-up 12 June 2014

  • Survey highlights trade receivables growth

    Trade receivables securitisation has become an increasingly important alternative funding source for corporates as well as a favoured corporate financing technique for banks, according to new research by Demica. A study of Europe's 30 biggest banks and a number of US-based banks active in Europe reveals more than 80% have seen growth in their trade receivables securitisation business or an .......

    News Round-up 11 June 2014

  • Bondholder communications reviewed

    The ICMSA discusses how the trustee community has worked to...

    A lively discussion between investors and trustees at the 2010 Global ABS conference was a catalyst for the ICMSA1 to revisit bondholder communication processes. Given the rise in bondholder meetings due to the fall-out from the financial crisis, bondholder communications were put squarely under the spotlight.

    Trustees are one link of the bondholder communication chain, but are seen as .......

    Talking Point 10 June 2014

  • Element expands ABS platform

    PHH Corporation is to sell its fleet management services business - including the Chesapeake Funding unit - to Element Financial Corporation, with the transaction expected to close before 31 July. Element has indicated that the acquisition will enhance its securitisation programme.

    As part of the transaction, Element will acquire all of PHH Arval's fleet management operations in North America. The .......

    Job Swaps 10 June 2014

  • PAYE expansion underway

    President Obama has directed the Secretary of Education to propose regulations that would expand the number of borrowers eligible for the pay as you earn (PAYE) programme (SCI 10 March). The action aims to allow all borrowers with any DLP loans outstanding - except for DLP loans made to parents - to apply for the scheme.

    Barclays Capital ABS analysts .......

    News Round-up 10 June 2014

  • Euro ABS action plan proposed

    The Association for Financial Markets in Europe (AFME) has joined policymakers in calling for the revival of European securitisation to unlock long-term financing and fuel growth. It has released a report, entitled 'High-quality securitisation for Europe', which proposes a five-step action plan to save the market.

    "High-level statements of support from central banks and policymakers are extremely welcome, but they .......

    News Round-up 9 June 2014

  • CPS settlement 'credit negative'

    Consumer Portfolio Services (CPS) last month agreed to pay US$5.5m to settle Federal Trade Commission (FTC) charges over its loan servicing and collections practices. Moody's suggests in its latest Credit Outlook publication that the settlement is credit negative for CPS auto loan ABS.

    "Although the new servicing requirements outlined under the settlement will bring the company into compliance with applicable .......

    News Round-up 9 June 2014

  • Analytics service enhanced

    Lewtan has released an enhanced version of its structuring and analytics platform, ABSNet Modeler, which is geared to all sectors of the new issue securitisation market. The enhancements consist of updated rating agency liability model criteria for CLOs (Moody's, Fitch and S&P), with the inclusion of multiple matrix point inputs.

    In addition, the deterministic loan and global level assumptions now .......

    News Round-up 9 June 2014

  • Access to ABS docs offered

    EuroABS is releasing its database of European ABS documentation, dubbed EADReD, to the market for no charge. The move is in response to the BoE and ECB's recent consultation document, in which they raise the question of whether the "availability of prospectuses and standardised investor reports in a single location" would be helpful to securitisation markets, as well as the .......

    News Round-up 6 June 2014

  • ECB furthers support for ABS

    The ECB has announced measures to support lending to the real economy, including intensifying preparatory work for outright purchases of ABS. The bank also intends to conduct a series of targeted longer-term refinancing operations (TLTRO).

    Marking an important step in shifting attitudes towards the asset class, the ECB will consider purchasing simple and transparent ABS, with underlying assets consisting of .......

    News 6 June 2014

  • Spanish ceiling raised

    S&P has raised its credit ratings on 62 tranches in 48 Spanish securitisations. The move follows the lifting of its long- and short-term sovereign ratings on the Kingdom of Spain to BBB/A-2 (outlook stable) from BBB-/A-3, in light of improving economic conditions in the country.

    Specifically, S&P has raised by a notch its ratings on: 34 tranches in 27 RMBS; .......

    News Round-up 6 June 2014

  • Seismic activity weighs on project bond

    There is a risk that Watercraft Capital bondholders will not be compensated for the delay in the re-development of the Castor oilfield, following seismic activity in the region. The transaction is the first to be issued under the EU's Europe 2020 Project Bond Initiative and refinances outstanding loans in connection with the construction and operation of an underground gas storage .......

    News Round-up 5 June 2014

  • Obligor credit quality improving

    Moody's expects declines in average loan balances per receivable in Japanese credit card ABS to continue to help keep default rates low across the sector. This trend began four years ago, following a new regulation that caps the size of an individual's loan based on their income

    Average loan balances have fallen by approximately 50%, to ¥140,000 in 2013 from .......

    News Round-up 5 June 2014

  • CRA consultation underway

    IOSCO has published a consultation report entitled 'Good Practices on Reducing Reliance on CRAs in asset management'. The purpose of the report is to gather the views and practices of investors and other interested parties in order to develop a set of good practices designed to reduce overreliance on external credit ratings in the asset management space.

    The report stresses .......

    News Round-up 5 June 2014

  • Autos augment ABS mix

    US ABS secondary market activity picked up yesterday as BWIC volume reached around US$172m. SCI's PriceABS data captured a mix of auto, credit card, equipment, railcar and franchise loan bonds out for the bid.

    The auto sector, in particular, was busy - with covers seen for several tranches yesterday. These included the CARMX 2012-2 A3 tranche, which was .......

    Market Reports 5 June 2014

  • Data partnership to boost transparency

    The European DataWarehouse (ED) and 1010data have signed a partnership agreement under which the ED will make its data available on the 1010data platform. This will include over 30 million loans in 800 RMBS, CMBS, auto, consumer finance, leasing and credit card ABS deals.

    The partnership will help to distribute loan-level data more quickly and easily to investors, with 1010data's .......

    Job Swaps 5 June 2014

  • Global auto credit quality examined

    Moody's expects the credit quality of global auto loan ABS to remain steady, except for in North America, where lenders are easing underwriting standards and borrower credit is declining modestly. Auto ABS pools will continue to consist primarily of loans to prime borrowers, with the US continuing to have a sizable market for securitisations backed predominantly by near-prime and subprime .......

    News Round-up 4 June 2014
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