ABS

  • 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

  • MiFID II consultation underway

    ESMA has launched the consultation process for the implementation of the revised Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR). This is the first step in the process of translating the MiFID II/MiFIR requirements into practically applicable rules and regulations.

    MiFID II/MiFIR introduces transparency requirements for a broader range of asset classes; the obligation to trade derivatives on-exchange; .......

    News Round-up 22 May 2014

  • Revolving auto deal debuts

    Ford Credit has priced a unique prime auto loan ABS that brings some welcome diversification to the sector. The US$1.08bn Ford Credit Auto Owner Trust 2014-REV1 deal will revolve for five years, before paying principal with a soft-bullet maturity (see SCI's new issue database).

    "Revolving components are not typical of term retail auto ABS transactions, and a revolving .......

    News 22 May 2014

  • LCC ceiling sensitivities examined

    Moody's has adjusted its parameter sensitivity analysis to clarify the rating impact of sovereign risk on structured finance transactions, specifically following a change in the local-currency country (LCC) risk ceiling. The update shows that the raising of the LCC ceiling does not necessarily mean a rating upgrade.

    "Because the credit performance of a note relies heavily on counterparty performance, risks .......

    News Round-up 22 May 2014

  • MBIA upgrades lift SF ratings

    Moody's has upgraded the ratings of 199 structured finance securities wrapped by MBIA Insurance Corp and two structured finance securities wrapped by MBIA UK Insurance. The action is driven by Moody's upgrade of the insurance financial strength (IFS) ratings of MBIA Corp to B2 (from B3) and MBIA UK to Ba2 (from B1).

    The agency has also upgraded the IFS .......

    News Round-up 22 May 2014

  • Islamic finance group formed

    Moody's has formed a dedicated global Islamic finance group (IFG) to meet the growing demand for Islamic finance credit ratings and research, as both Islamic capital markets and Islamic banking continue to register double-digit growth rates. The unit will deliver independent analysis of Shari'ah-compliant products, financial institutions and takaful insurers to support an improved understanding of the credit risks and .......

    Job Swaps 22 May 2014

  • Capital markets deputy steps up

    DBS has named Eng-Kwok Seat Moey as its next head of capital markets. She was appointed deputy head last year in preparation for the transition.

    Seat Moey replaces Eric Ang, who will stay at the firm as a senior executive advisor, effective from next month. Seat Moey has more than 20 years of experience in capital markets advisory and funds .......

    Job Swaps 22 May 2014

  • Natixis promotes SF trio

    Natixis has made a couple of appointments to its global structured credit solutions (GSCS) team. Emmanuel Lefort becomes GSCS global head, while Hank Sandlass becomes GSCS Americas deputy head.

    Additionally, Kevin Alexander has been named head of fixed income for the global markets group in the Americas. He will supervise all debt platforms and GSCS teams based in New York.

    Job Swaps 22 May 2014

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