ABS

  • Rising sun

    Solar ABS market generating momentum

    Recent solar securitisation deals in both the UK and US bode well for the future of the asset class. However, achieving scalability is just one of the challenges in making the move from an esoteric asset class to a mainstream ABS product.

    Independent Debt Capital Markets recently placed TRFC 2013-1 with six investors in the UK (SCI 20 December). But .......

    News Analysis 23 December 2013

  • Auto ABS delinquencies steady

    Prime auto loan ABS delinquencies and losses were steady in November as consumers continue to pay down their auto debt, according to Fitch's latest index results for the sector. Positive economic factors, coupled with stable used vehicle values are supporting auto loan ABS performance - a trend that the agency expects to continue into early 2014.

    Both prime and subprime .......

    News Round-up 20 December 2013

  • Canada poised for issuance up-tick

    With a sound economy, solid financial institutions and strong regulatory regime, new securitisations in Canada are poised for higher activity headed into next year, Fitch suggests. Although issuance is unlikely to reach levels seen during peak years, the agency expects increased activity across several asset classes.

    Among them is CMBS, where activity - while modest - has improved in recent .......

    News Round-up 20 December 2013

  • Second loan-level phase prepped

    LCM Partners has won a tender from the ECB to provide advisory services on the second phase of the ABS Loan Level Initiative, an ECB initiative that has the primary goal of restoring investor confidence in the European ABS market. LCM has been working with the central bank since 2009 and will continue to provide advisory services on this programme, .......

    News Round-up 20 December 2013

  • EIOPA eyes 'granular' treatment of ABS

    EIOPA has released its technical report on standard formula design and calibration for certain long-term investments. The report's key proposal is to introduce a more granular treatment of securitisations.

    Instead of the currently proposed uniform 7% spread risk charge for triple-A rated securitisations, EIOPA recommends decreasing the charges for less risky issues to 4.3% while increasing them for riskier ones .......

    News Round-up 20 December 2013

  • New recruit expands Euro reach

    Cantor Fitzgerald Europe has grown its structured credit sales and trading team by appointing Juergen Haferkorn as md in London. He will focus on ABS and help to expand Cantor's reach in German-speaking countries. Haferkorn has previously worked at MBIA and BAWAG.

    .......

    Job Swaps 20 December 2013

  • Italian segregation law 'credit positive'

    The Italian government last week approved amendments to Law 130/1999 that improve the segregation of transaction funds and, in the case of a debtor default, limit potential claw-backs of prepayments. Moody's suggests in its latest Credit Outlook publication that these measures are credit positive for Italian securitisations and covered bond programmes because they will reduce certain risks associated with servicer .......

    News Round-up 19 December 2013

  • Second securitisation consultation launched

    The Basel Committee has issued a second consultative paper on revisions to its securitisation framework. The paper comprises a detailed set of proposals, including draft standards text, for a comprehensive revision of the treatment of securitisation within the risk-based capital framework.

    In developing these proposals, the Committee says it has carefully taken into account the comments received on the first .......

    News Round-up 19 December 2013

  • Euro card index rolled out

    DBRS has introduced 'Beyond the Plastic', a new Europe-wide index and periodical covering credit card ABS. The report analyses charge-off rates, delinquency rollover rates, yields, excess spread and other metrics to provide insight of performance beyond securitisation ratings.

    "With an increase of credit card issuance from continental Europe, it makes sense to capture the complete picture for a truly accurate .......

    News Round-up 19 December 2013

  • Innovative trade finance ABS debuts

    Citi and Santander have closed the inaugural ABS issuance from Trade MAPS, a global multi-bank asset participation programme aimed at enhancing trade banks' ability to support global trade flows and grow their trade finance portfolios. The programme is intended to address a number of challenges facing the banking industry, including capital management, liquidity, increased credit constraints and Basel 3 capital .......

    News Round-up 18 December 2013

  • Euro retention rules finalised

    The European Banking Authority has published final draft regulatory technical standards (RTS) on securitisation retention rules and related requirements, as well as its final draft implementing technical standards (ITS) on the convergence of supervisory practices relating to additional risk weights in the case of non-compliance with the retention rules. The rules aim to provide greater clarity and transparency for market .......

    News Round-up 18 December 2013

  • Italian lease ABS, SME CLO outlooks differ

    Weaker structural features in Italian lease ABS compared with Italian SME CLOs mean that Fitch's 2014 rating outlook for the two sectors is different, despite both being exposed to Italian SME asset performance. Most outstanding Italian ABS leasing transactions were structured so the portfolio could be replenished during the initial revolving period and that the mezzanine tranches could be repaid .......

    News Round-up 17 December 2013

  • Tax lien RFC issued

    Moody's is seeking comments on a new methodology that covers its approach to rating tax lien ABS. If the proposed methodology is adopted, the agency does not expect any rating changes to currently outstanding US tax lien-backed transactions.

    "Tax lien securitisations are backed by liens on properties arising out of delinquent property taxes, assessments, sewer rents, sewer surcharges, water rents .......

    News Round-up 17 December 2013

  • Diversification boost

    Euro periphery to mitigate negative net issuance?

    The European securitisation market is set to end 2013 on a positive footing, boosted by a growing diversity of new issuance. However, while the re-marketing of retained transactions is expected to further augment the peripheral paper on offer next year, negative net issuance remains a concern.

    Placed European ABS issuance volume is expected to reach about €64bn this year, 16% .......

    News Analysis 17 December 2013

  • Stable outlook for LatAm SF

    Fitch foresees stability across Latin American structured finance sectors in 2014. On average, asset portfolios are expected to perform within base-case assumptions, reflecting stable economic conditions within each of the major Latin American countries.

    The ongoing positive dynamics of the Brazilian oil industry support Fitch's stable outlook for offshore vessel contract monetisation transactions in the cross-border market. Stable unemployment, despite .......

    News Round-up 16 December 2013

  • CRA debuts SF approach

    Scope has published its first methodology guidelines for rating and monitoring structured finance products. The guidelines lay down the key principals that the rating agency intends to apply to all types of structured finance instruments and present how key criteria are integrated in the rating process.

    Scope believes that the analysis of qualitative factors, based on objective components, plays a .......

    News Round-up 16 December 2013

  • Autos fuel ABS activity

    European ABS secondary activity was dominated by auto tranches yesterday. SCI's PriceABS data shows a strong range of auto names out for the bid, as well as a couple of credit card tranches, with the majority covered at or around par.

    Among these was the BILK 3 A1 tranche, which was covered at 100.171. The tranche was covered .......

    Market Reports 13 December 2013

  • SAC Re sale agreed

    Hamilton Insurance Group has entered into a definitive agreement to acquire SAC Capital Advisor's hedge fund-style reinsurer SAC Re. The transaction is expected to close prior to 31 December, subject to Bermuda Monetary Authority approval and other closing conditions.

    The investor group buying SAC Re includes former Marsh & McLennan president and ceo Brian Duperreault, Two Sigma Investments, Capital Z .......

    Job Swaps 13 December 2013

  • ILS growth 'causing concern'

    EIOPA says in its 2H13 Financial Stability Report that the strong flow of new capital into insurance-linked securities is "causing some concerns" and needs to be monitored. The authority notes that inflows into the sector originate mostly from fixed income investors that are searching for yield, but don't necessarily have the modelling capabilities and experience to fully analyse the underlying .......

    News Round-up 13 December 2013

  • RFC on tobacco ABS approach

    Moody's is seeking comments on proposed changes to its rating approach for tobacco settlement revenue securitisations. Specifically, the agency is proposing to change its cashflow modelling assumptions for the non-participating manufacturer (NPM) adjustment provisions.

    "We're proposing these changes in response to the December 2012 settlement of the NPM adjustment disputes for 2003 through 2012 by 22 states and territories, and .......

    News Round-up 13 December 2013

  • Volcker to spur full conduit support

    The Volcker Rule's treatment of ABCP conduits will motivate conduit sponsors to employ full unconditional liquidity coverage and remove an important regulatory risk from the sector, Fitch says. To be exempt from the covered fund definition under the rules, outstanding ABCP must be fully supported and liquidity commitments must be available to fund for the full face amount of all .......

    News Round-up 13 December 2013
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