ABS

  • 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

  • Markit IPO underway

    Markit has commenced its initial public offering: the firm's shareholders intend to sell 45,707,965 common shares at a price that is expected to be between US$23 and US$25 per share. The underwriters will have a 30-day option to purchase up to an additional 6,856,195 common shares from certain of the selling shareholders. Bank of America Merrill Lynch, Barclays, Citi, Credit .......

    Job Swaps 4 June 2014

  • Record results for credit card indices

    After hitting a record low in April, Fitch's Prime Credit Card 60+ Day Delinquency Index decreased by another 2bp to 1.15% in May, reaching the lowest level since its launch in 1991. The index has declined by 22% year-over-year and now stands 75% below its peak level reached at the end of 2009.

    Meanwhile, Fitch's Prime Credit Card Charge-off Index .......

    News Round-up 3 June 2014

  • Driver China One rated

    Further details have emerged about Volkswagen's much-anticipated debut Chinese auto loan ABS, the RMB799.7m Driver China One Trust (SCI 1 April). The deal - arranged by CICC - is structured under the China Banking Regulatory Commission's credit asset securitisation regime.

    Provisionally rated by Fitch and Moody's, Driver China One Trust comprises three tranches: RMB699m class A notes (Aa3/AA), RMB44m class .......

    News Round-up 3 June 2014

  • Timeshare delinquencies normalising

    Total US timeshare ABS delinquencies for 1Q14 stood at 3.19%, down from 3.27% in 1Q13 and 3.38% in 4Q13, according Fitch's latest index results for the sector. This marks the seventh straight quarter of year-over-year improvement, with delinquencies having largely normalised at their historical levels, following the dramatic increases of 2008 and 2009.

    The quarterly and year-over-year improvement is also .......

    News Round-up 2 June 2014

  • Central bank discussion paper welcomed

    AFME has welcomed the Bank of England and ECB's discussion paper on revitalising the European securitisation market (SCI 30 May), noting that the report "helpfully acknowledges" the strong performance of high‐quality transactions in the region. The association adds that the concept of 'qualifying securitisations' fits well with recent calls by the European Commission to revive a sustainable market for high‐quality .......

    News Round-up 2 June 2014

  • Portuguese ratings upgraded

    Moody's has upgraded to Baa1 six notes in five Portuguese ABS and eight notes in seven RMBS transactions. At the same time, the agency placed on review for upgrade three notes in three ABS and 42 notes in 22 RMBS. It has also placed on review direction uncertain one note in one RMBS deal.

    The rating actions follow the upgrade .......

    News Round-up 30 May 2014

  • Auto ABS structuring trends surveyed

    Moody's notes in the second report of its four-part series on the global auto ABS sector that transactions in North America, Europe, Asia Pacific and South America benefit from the use of common legal and operational protections, such as back-up servicing arrangements and true sale mechanisms. While new deals will continue to feature similar types of capital structures and credit .......

    News Round-up 30 May 2014

  • Euro ABS policy options outlined

    The Bank of England and the ECB have published their joint discussion paper on the revitalisation of European securitisation, building on the report published last month (SCI 14 April). The paper discusses the reasons for the shortcomings and the opportunities for improvement of the ABS market, and is designed to stimulate discussion among stakeholders on the impediments identified and the .......

    News Round-up 30 May 2014

  • Risk management requirements welcomed

    The China Bank Regulatory Commission (CBRC) recently issued risk management requirements that should help to establish a better foundation for China's securitisation market. The requirements apply separately to trust companies and financial leasing companies.

    "The new rules provide additional support to China's developing securitisation market because trust companies often provide trustee services to securitisation transactions and there is growing interest .......

    News Round-up 29 May 2014

  • Longevity swap relief granted

    The CFTC has addressed for the first time its definition of a swap as it applies to a specific insurance transaction. Law firm Sutherland notes in a recent client memo that no action letter 14-67 allows US life insurers - via a Bermuda cell insurer - to provide a reinsurance hedge to banks active in protecting non-US pensions against the .......

    News Round-up 29 May 2014

  • Sidecars proliferating

    New capital invested in reinsurance sidecars reached US$1.92bn in 1Q14, the highest level of quarterly growth in the segment since 2009, according to Moody's. New capital has surged even as reinsurance rates fall, suggesting that reinsurers have different motivations for sponsoring sidecars now than they did the last time there was a sharp increase in new capital in 2005-2006.

    Following .......

    News 28 May 2014

  • APAC positive rating actions continue

    Fitch says that over 99% of Asia-Pacific structured finance (SF) tranches maintained their ratings, were upgraded or paid in full (PIF) last year, compared with the 95% reported in 2012. The ratio of ratings maintained, upgraded and PIF in 2013 was higher than the average over 1998-2013 for all rating categories.

    Asia-Pacific SF upgrades outnumbered downgrades by a ratio of .......

    News Round-up 28 May 2014

  • Pre-crisis losses decline

    The turnaround of the US housing market has led to a sizeable decline in pre-crisis global securitisation losses, Fitch reports. At the same time, loss expectations for pre-crisis EMEA securitisations have remained constant.

    Total losses on US bonds issued between 2000 and 2008 fell to 5% from the 5.4% recorded in Fitch's study last year. Total losses include both realised .......

    News Round-up 28 May 2014

  • Ford debuts Chinese ABS

    Ford Automotive Finance (China) has completed its first auto loan ABS in China to support the financing of Ford-brand vehicle sales in the country, becoming the first wholly foreign-owned auto finance company to complete a transaction under the most recent ABS pilot programme governed by the China Banking Regulatory Commission and the People's Bank of China. Sized at RMB800m, the .......

    News Round-up 28 May 2014

  • Longevity solutions team beefs up

    Legal & General has made a number of key appointments to its bulk annuity & longevity insurance business in response to continued growth in pension scheme de-risking activity. Alyssa Manning and Kai Hoffmann have joined the team as business development directors, while Dominic Moret and Vanessa HoVon have joined as senior commercial underwriters.

    Manning was previously a vp in Credit .......

    Job Swaps 28 May 2014

  • Punch restructuring alternative proposed

    A stakeholder group comprising seven investors in the Punch A and Punch B whole business securitisations has proposed alternative restructuring terms to those launched by Punch Taverns at the beginning of the year (SCI 15 January). The proposal would result in a reduction in total net debt of £600m.

    Under the proposal, junior notes in Punch A and Punch B .......

    News Round-up 27 May 2014

  • Global auto ABS performance 'steady'

    Moody's expects improving global labour markets to result in steady auto loan ABS performance this year. This is based on the findings of its first report in a four-part series that examines auto loan ABS credit performance trends in North America, Europe, Asia Pacific and South America. The other articles in this series will examine: structural, operational and legal issues .......

    News Round-up 27 May 2014

  • P2P credit considerations outlined

    Moody's highlights in its latest 'ABS Spotlight' four main credit considerations for peer-to-peer (P2P) loan securitisations. These are: historical performance of the loans; underwriting and origination practices; servicing arrangements; and regulatory oversight and compliance.

    The agency notes that performance history is a key credit consideration for P2P ABS transactions. "As with other types of new consumer lending programmes, forecasting performance .......

    News Round-up 23 May 2014

  • Litigation risk mitigated

    Harley-Davidson's most recent ABS issuance - the US$850m Harley-Davidson Motorcycle Trust 2014-1 - includes language allowing the company to buy back motorcycle loans from the SPV, should it determine that their repurchase would better serve consumer lending laws. Moody's notes in its recent ABS Spotlight publication that these new representations and warranties differ from the language in the company's prior .......

    News Round-up 23 May 2014

  • Insurance banker recruited

    Willis Capital Markets & Advisory (WCMA) has appointed Rafal Walkiewicz as md of its insurance investment banking division. Walkiewicz, who will be based in New York, will play a key role in developing further the firm's capital raising and M&A business. He will report directly to WCMA ceo Tony Ursano.

    Joining from Goldman Sachs, Walkiewicz has spent the past 10 .......

    Job Swaps 23 May 2014
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