ABS

  • Korean credit card quality to deteriorate

    The credit quality of receivables backing Korean credit card ABS is expected to deteriorate as a result of the recent data breach that affected millions of cardholders. The disappearance of affected cardholders from securitisation pools will weaken the overall credit quality of receivables and the principal payment rate (PPR) in credit card ABS, Moody's says.

    Three credit card companies were .......

    News Round-up 28 February 2014

  • Lifting of Aussie import tariffs 'credit negative'

    Australia's Productivity Commission published a position paper on 31 January, describing the country's auto import restrictions and tariffs as redundant. Moody's says in its latest 'Structured Thinking: Asia Pacific' publication that the lifting of the restrictions would be credit negative for Australian auto loan and operating lease ABS because they would lower the price of cars, thereby affecting ABS pools .......

    News Round-up 28 February 2014

  • PRI to boost EM issuance

    Political risk insurance (PRI) for capital markets has re-emerged, with a broader scope for coverage to adapt to the changing needs of emerging markets finance, Fitch says. These newer products normally relate to a sovereign guarantee or obligation and therefore do not address private sector companies in the absence of a sovereign support mechanism.

    "New PRI products that cover not .......

    News Round-up 27 February 2014

  • Stable performance expected for DFP ABS

    Fitch expects dealer floorplan (DFP) ABS assets and ratings to be stable this year, due in part to a robust vehicle sales forecast. The agency's US light vehicle sales forecast for 2014 is 16 million units, which would provide ample support for US dealer revenues and profit levels.

    Dealers also expect to benefit from healthy demand for both new and .......

    News Round-up 27 February 2014

  • Solar investment gaining traction

    Investor interest in commercial solar projects has more than doubled in the last 12 months, according to Mercatus. A year-end analysis of commercial solar project investment and development trends undertaken by the firm reveals that exploration - and investment dollars - for solar projects is on the rise.

    Mercatus reports growth of more than 200% in the number of projects .......

    News Round-up 26 February 2014

  • Lebanese receivables ABS closed

    Bemo Securitisation has closed DHC Healthcare Fund, the first revolving trade receivables securitisation in the Lebanese healthcare sector. The transaction is backed by a US$14m diversified portfolio of trade receivables provided by Dima Healthcare to its hospital, pharmacy and clinic clients.

    The fund has been established under Lebanese Law 705/2005, has a 4.5-year maturity and a three-year revolving period. The .......

    News Round-up 26 February 2014

  • Softer performance seen in autos

    Overall asset performance in both the prime and subprime auto loan ABS sectors was softer in January, as prime annualised losses rose by 6.8% on a monthly basis and subprime losses crept up by 1.3%, according to Fitch. But the late winter months are seasonally strong as consumers pay down debt levels, so the agency expects asset performance to improve .......

    News Round-up 26 February 2014

  • Seasonal trends lift timeshare delinquencies

    US timeshare ABS delinquencies increased moderately this past quarter due to seasonal trends, though year-over-year declines continue, according to Fitch's latest index results for the sector. Total delinquencies for 4Q13 stood at 3.38%, up slightly from 3.14% in 3Q13.

    However, 4Q13 marks the sixth consecutive quarter of year-over-year improvement. Delinquencies for 4Q12 were 3.55% and have largely normalised at their .......

    News Round-up 26 February 2014

  • MMF rules delayed

    The decision by the European Parliament's Economic and Monetary Affairs Committee to postpone agreement on draft rules to regulate money market funds (MMFs) last week leaves the scope of possible investment restrictions on ABCP unclear, Fitch says. These restrictions may prompt significant asset reallocation for some MMFs, depending on the scope of the regulation.

    Euro- and sterling-denominated constant net asset .......

    News Round-up 26 February 2014

  • RV approach updated

    Moody's has updated its methodology for rating EMEA auto lease ABS exposed to residual value (RV) risk. The agency has expanded the methodology previously applicable to rating UK RV ABS transactions to other EMEA regions.

    In particular, Moody's has confirmed that haircut levels developed for the UK are broadly applicable to other European markets and clarified its approach in relation .......

    News Round-up 26 February 2014

  • Spanish sovereign ceiling lifted

    Moody's has raised the maximum achievable rating for Spanish structured finance transactions to A1 from A3, following the upgrade of Spain's government bond rating to Baa2 from Baa3 and its local and foreign currency bond and deposit ceilings to A1 from A3. The move reflects improvements in institutional strength and reduced susceptibility to event risk, the agency says.

    Moody's is .......

    News Round-up 26 February 2014

  • RFC issued on privacy approach

    The US SEC has reopened for comment its proposals for ABS shelf-eligibility under Regulation AB 2. Specifically, the Commission is seeking comments on an approach for the dissemination of potentially sensitive asset-level data to address privacy issues.

    The relevant proposals are: Asset-Backed Securities, Securities Act Release No. 33-9117 (Apr. 7, 2010), 75 FR 23328; and Re-Proposal of Shelf Eligibility Conditions .......

    News Round-up 26 February 2014

  • Ratings vet takes top credit role

    Morningstar has appointed Calvin Wong as chief credit officer. He will be based in New York and report to president Vickie Tillman.

    Wong will take responsibility for enhancing the internal control structured for ratings, supporting credit rating model review processes and overseeing the development of rating criteria. He has in-depth knowledge of ABS and RMBS and was most recently practice .......

    Job Swaps 26 February 2014

  • SPVs implementing FATCA remedies

    SPVs incorporated outside the US are likely to take the necessary steps required to ensure that they do not incur losses related to FATCA, Moody's suggests. In cases where SPVs do not take remedial action, the agency says it will assess the negative impact of such losses on the ratings of the relevant notes.

    FATCA will impose a withholding tax .......

    News Round-up 25 February 2014

  • TRACE reprieve for CDOs, CMBS

    FINRA will exclude CDOs, CBOs, CLOs and non-agency CMBS from its proposal to expand TRACE's coverage of securitised products (SCI 5 November 2013). The move comes after SIFMA submitted a comment letter on the proposal to the SEC (SCI 9 January).

    Specifically, CDOs, CBOs, CLOs and non-agency CMBS will not be classified as 'asset-backed securities' (as defined in proposed FINRA .......

    News Round-up 25 February 2014

  • Data transparency offered

    Moody's Analytics has launched a new Structured Finance Portal that is designed to provide enhanced content, increased data transparency and innovative analytics. Initially focusing on CLOs, the service aims to deliver greater operational efficiency by removing the manual process typically associated with normalising and aggregating data.

    "With our new Structured Finance Portal, users will have a clear view into the .......

    News Round-up 24 February 2014

  • Canadian ABS to remain robust

    DBRS notes in its annual review of Canada's structured finance market that the combined effect of conservative underwriting, modifications to mortgage lending rules and improving economic conditions provided a solid foundation for securitised portfolios in 2013. For the second year in a row, the market saw combined term ABS and ABCP issuance of over C$26bn.

    Underlining the strong asset performance .......

    News Round-up 21 February 2014

  • All about autos for US ABS

    US ABS secondary supply was mainly concentrated in auto loan bonds yesterday. BWIC volume was slightly lower than the previous session at US$134m, with SCI's PriceABS data showing a number of successful covers.

    The 2012 and 2013 vintages were prevalent among the auto names out for the bid. For example, the FORDL 2012-B A3 tranche was covered at .......

    Market Reports 21 February 2014

  • Further CRA improvements required

    ESMA has published its Annual Report 2013 on credit rating agencies (CRAs) in the EU. The report also outlines the authority's supervisory work plan for this year.

    The report notes that CRAs continue to progress in how they comply with the CRA regulation, including improved internal transparency and disclosure to the market on credit rating activities, as well as empowerment .......

    News Round-up 21 February 2014

  • Tobacco settlement methodology updated

    Moody's has updated its methodology for rating tobacco settlement revenue securitisations, affecting around US$19bn of ABS bonds. The rating agency has upgraded 55 tranches, downgraded seven tranches, confirmed 73 tranches that were placed on review last year and affirmed a further three tranches.

    Moody's has amended its cashflow modelling assumptions related to the non-participating manufacturer (NPM) adjustment provisions of the .......

    News Round-up 21 February 2014

  • Asset finance team beefs up

    Carey Hansford has joined Aldermore Bank's asset finance team as structured products business development manager. She is based in Bristol, UK.

    Hansford previously worked at GE Capital and at Black & White Organisation Company. She held several roles at GE, including funding manager and UK capital markets servicing leader.

    .......

    Job Swaps 21 February 2014
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