ABS

  • 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

  • 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
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