ABS

  • NSFR framework critiqued

    The Basel Committee's amended proposal for a minimum standard ratio for bank funding would introduce globally harmonised requirements that would potentially reduce funding mismatches, according to S&P. The agency adds, however, that the proposals contain some potential inconsistencies and gaps - and that the planned timeline for their implementation in January 2018 is slow.

    These observations form part of S&P's .......

    News Round-up 14 April 2014

  • Chinese leasing ABS eyed

    Amendments to rules for financial leasing companies in China look set to make leasing ABS deals possible in the jurisdiction, Fitch suggests. The rules should strengthen the operating environment for leasing companies and limit the risk of originator/servicer default.

    The China Banking Regulatory Commission (CBRC) recently released amended 'Administrative Measures for Financial Leasing Companies', which aim to encourage new entrants .......

    News Round-up 14 April 2014

  • Energy efficiency programme launched

    A US public-private partnership has been formed to facilitate lower-cost loans for home energy efficiency improvements. Dubbed the Warehouse for Energy Efficiency Loans (WHEEL), the aim is to open up the sector to large institutional investors by harnessing securitisation technology.

    WHEEL is the product of a years-long collaboration between Citi, the Pennsylvania Treasury Department, Renewable Funding, the Energy Programs Consortium, .......

    News Round-up 14 April 2014

  • Call for action on 'high quality' ABS

    The ECB and the Bank of England (BoE) last Friday published a joint paper, which concludes that securitisation is an important complementary funding tool to support the real economy. In their analysis of the European ABS market, the central banks observe that current regulatory treatment of securitisation has been unduly conservative and recommend accelerating the promotion of 'high-quality' securitisation in .......

    News Round-up 14 April 2014

  • Sovereign ceiling criteria finalised

    Fitch has published its criteria detailing how ratings of structured finance (SF) notes and covered bonds (CVB) are constrained by the credit quality of the sovereign to which the SF transaction or CVB programme is exposed. The methodology is consistent with the one presented in the exposure draft published on 22 January (SCI 23 January).

    The criteria provide details of .......

    News Round-up 11 April 2014

  • Tiering emerging in aircraft ABS

    Airlines and lessors appear to have ample access to liquidity, with many having recently issued debt across various sectors - including the term-loan, ABS and corporate bond markets. Indeed, following strong issuance last year comprising four deals, momentum in the aircraft ABS primary market has continued with two deals issued year to date in 2014.

    The deals - RISE and .......

    News Round-up 10 April 2014

  • GM lease exposure examined

    US auto lease ABS is unlikely to experience near-term fallout from the recent GM recalls, but potential reputational damage to the company's brand could be a risk in the longer term, Fitch suggests. Nevertheless, the agency expects stable ratings performance for transactions with GM vehicle exposure, due to robust credit enhancement.

    Current Fitch-rated auto lease pools have little exposure to .......

    News Round-up 9 April 2014

  • Japanese credit quality improving

    S&P reports that it raised 9.41% of its outstanding ratings on Japanese structured finance securities in 2013, exceeding its downgrade rate of 5.1% for the year. The ratio of upgrades to downgrades stood at 1.85 in 2013.

    The downgrade rate had consistently exceeded the upgrade rate from 2008 through 2010, but that pattern reversed in 2011 and continued to improve .......

    News Round-up 9 April 2014

  • SLR standards finalised

    The OCC, the US Fed and the FDIC have adopted a final rule that strengthens the supplementary leverage ratio (SLR) standards for US bank holding companies (BHC) with more than US$700bn in total consolidated assets or more than US$10trn in assets under custody and any insured depository institution (IDI) subsidiary of these BHCs. Under the final rule, an IDI that .......

    News Round-up 9 April 2014

  • Student loan debt discussed

    Outstanding US student loan debt grew by US$22bn to US$1.08trn, as of 4Q13, according to the New York Fed. Fitch expects increased volume of student loans and graduate-level borrowing to have a muted impact on US student loan ABS pools, however.

    This trend should continue if enrolments and tuition rise further and household income growth remains steady. Overall college enrolment .......

    News Round-up 8 April 2014

  • Rating agency moves into ABS

    Morningstar has appointed Violet Diamant as md for ABS ratings and research. She will be based in New York and will lead the agency's expansion into ABS ratings services.

    Diamant will take responsibility for analytical strategy, establishing an analyst team and developing ABS rating criteria, reporting to Morningstar president Vickie Tillman. Diamant was most recently director of credit risk management .......

    Job Swaps 8 April 2014

  • Listing business acquired

    Matheson is set to acquire Investec's Irish investment funds and debt securities listing business, following approval from the Irish Stock Exchange. Investec's listing unit assists applicants seeking to list investment fund shares or structured debt securities on the Irish Stock Exchange.

    The acquisition is expected to enhance Matheson's offering by enabling the firm to provide the full range of Irish .......

    Job Swaps 7 April 2014

  • SF lawyer on the move

    Kaye Scholer has appointed Lawton Camp as a finance partner in its New York office. He joins the firm from Allen & Overy.

    Camp specialises in structured finance and securitisation, including CDOs, CLOs, ABS, ILS, RMBS and CMBS. He has two decades of industry experience and worked at Orrick, Herrington & Sutcliffe before joining Allen & Overy.

    .......

    Job Swaps 3 April 2014

  • Esoteric knowledge

    Investors drawn to developing non-traditional ABS market

    US esoteric ABS is attracting greater attention as investors seek yield. Several potential growth areas are emerging, with new, innovative collateral types also anticipated.

    Respondents to a recent DBRS survey overwhelmingly favoured esoteric assets over other ABS sectors and identified yield as a primary motivation (SCI 21 March). Dan Castro, president at Robust Advisors, agrees that yield is a key .......

    News Analysis 3 April 2014

  • Charge-offs hit record low

    Fitch's Prime Credit Card Charge-off Index has reached another record low and now stands at 2.89% for the February collection period. The index has declined by 26% year-over-year (YOY) and is 75% below its historic high of 11.52% reached in September 2009.

    Meanwhile, Fitch's Prime Credit Card 60+ Day Delinquency Index increased by 2bp month-on-month (MOM) to 1.23%. This index .......

    News Round-up 2 April 2014

  • Private SLABS poised for stability

    An improving broader economy is leading to fewer college students postponing their monthly loan payments, which should position US private student loan ABS for more stable performance in the coming months, according to Fitch's latest quarterly index on the sector. Private student loan delinquencies ranged between 0.7% and 0.87% during the quarter, while annualised gross defaults remained steady at roughly .......

    News Round-up 2 April 2014

  • MMF CP investments declining

    US money market fund (MMF) investments in commercial paper have declined at a moderate but steady rate over the past year, driven by a reduction in ABCP and non-bank CP, according to Fitch. Relative to a year earlier, outstanding amounts of ABCP as of end-February 2014 were 22% lower.

    The combined share of CP holdings among the top-10 US prime .......

    News Round-up 2 April 2014

  • Punch A downgraded

    S&P has lowered to double-B minus from triple-B and placed on credit watch negative its ratings on Punch Taverns Finance (Punch A) class A1(R) and A2(R) notes. At the same time, the agency has placed on credit watch negative the ratings on Punch A's class M1, M2(N), B1, B2, B3, C(R) and D1 notes, as well as the Punch Taverns .......

    News Round-up 2 April 2014

  • Auto losses inch higher

    US auto prime and subprime annualised losses inched higher in February as asset performance softened somewhat over the past six months, according to Fitch's latest index results for the sector. However, loss rates remain at historically low levels and only marginally off the record low levels recorded in 2012-2013.

    In the prime sector, 60+ day delinquencies were flat in February .......

    News Round-up 1 April 2014

  • ABS supply leaves MBS trailing

    Healthy US ABS secondary market activity yesterday contrasted sharply with the non-agency RMBS and CMBS segments, where bid-list volumes were muted. SCI's PriceABS data shows that supply was dominated by auto, equipment and student loan paper.

    ABS BWIC volume was up markedly from the previous session, totalling around US$340m. By contrast, volumes in non-agency RMBS only reached around .......

    Market Reports 1 April 2014

  • SEC urged to re-propose ABS releases

    SIFMA and the Financial Services Roundtable (FSR) have submitted comments to the US SEC that express significant concerns with its proposed approach to disseminating asset-level and other offering information under Regulation AB 2 (SCI 26 February). The two associations urge the Commission to abandon the "flawed" approach to the disclosure of asset-level information outlined in its Memorandum, which they say .......

    News Round-up 1 April 2014
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