ABS

  • Economic improvement to boost esoteric ABS

    The improving US and global economies will generally boost collateral performance of US commercial and esoteric (C&E) ABS in 2014, Moody's says. Real estate values, technological obsolescence and idiosyncratic factors are also expected to drive credit performance across the sector.

    "Collateral performance of securitisations backed by equipment loans and leases will benefit the most from the modestly improving US economy," .......

    News Round-up 3 December 2013

  • Stable outlook for global ABCP

    ABCP market participants remain focused on evolving regulatory requirements, meaning that growth in outstandings is unlikely in any meaningful magnitude next year, according to Fitch. The agency has a stable outlook for global ABCP in 2014.

    US ABCP outstandings stood at US$248bn through last month, 18% lower than year-end 2012 levels and 80% lower than the US$1.2trn peak seen in .......

    News Round-up 3 December 2013

  • Aspen forms sidecar

    Aspen Reinsurance's capital markets division has established Silverton Re, a Bermuda domiciled special purpose insurer formed to provide the firm with additional collateralised capacity. Silverton Re will be capitalised initially at US$65m, with US$15m of funding provided by Aspen Re and additional funding secured from third-party investors.

    Silverton Re will enter into a quota share retrocession agreement with Aspen, under .......

    News Round-up 3 December 2013

  • Euro ABS fund launched

    SCIO Capital has launched the Partners Fund II, with initial commitments from European pension funds, targeting a total size of €100m. The fund aims to take advantage of the dislocation in the European ABS market.

    As Europe's 'bad banks' continue to de-lever their balance sheets for non-economic reasons, they are offering attractive investment opportunities for experienced buyers. SCIO works with .......

    News Round-up 29 November 2013

  • BofE signals support for securitisation

    The Bank of England's Financial Policy Committee (FPC) signalled its support of the securitisation market in its latest Financial Stability Report. The committee says it intends to "assess and, where necessary, act to develop approaches to promote a better functioning securitisation market in the UK".

    In particular, the FPC says it will examine impediments to market-based finance, including securitisation markets .......

    News Round-up 29 November 2013

  • APAC CPT covered bonds mulled

    Fitch believes that conditional pass-through (CPT) covered bond programmes could become a feature of established APAC covered bond markets. This is contingent on strong ongoing investor appetite, however.

    CPT programmes generally have lower overcollateralisation and, by eliminating liquidity gap risk, they also facilitate higher ratings than would otherwise be the case (SCI 21 October). In addition, they allow for a .......

    News Round-up 29 November 2013

  • Statistics portal launched

    IOSCO has launched a statistics web portal that provides the public with a global overview of specific securities markets. The objective of the new portal is to provide a centralised point for monitoring global trends, risks and vulnerabilities within these markets.

    The portal allows access to key statistics, charts and indicators on a number of securities markets, including: covered bonds; .......

    News Round-up 28 November 2013

  • New home for Euro ABS trader

    Daniel Turner has joined Ellington Management Group as md in London. He takes responsibility for European ABS.

    Turner was previously a partner at Chenavari Investment Managers, where he focused on European ABS and RMBS. He has also worked at European Credit Management, ING and Capital Economics.

    .......

    Job Swaps 28 November 2013

  • CRA supervisory colleges inaugurated

    The supervisory colleges for S&P, Moody's and Fitch held their inaugural meetings on 5-6 November in New York. The colleges for S&P and Moody's are chaired by the US SEC and the college for Fitch is chaired by ESMA.

    The establishment of the colleges follows recommendations that IOSCO made in its final report on Supervisory Colleges for Credit Rating Agencies .......

    News Round-up 28 November 2013

  • Driving disintermediation

    Credit availability facing further headwinds?

    Global regulatory initiatives are fostering bank disintermediation in the securitisation market. But creeping oversight of the shadow banking system could also further reduce the availability of credit.

    The recession has played out unequally, according to Tamara Box, head of structured finance at Reed Smith. "If a borrower is in prime territory, they're fine; otherwise, they're not. Current monetary and economic .......

    News Analysis 28 November 2013

  • Punch ups the ante on restructuring

    Punch's latest financial results raise the probability of the group removing its support of its securitisations as another round of restructuring proposals begins next month. Without an agreement on the restructuring, a borrower event of default in Punch A and B would follow.

    Punch's Q1 results for the 2013/2014 financial year reported positive like-for-like net income growth in the core .......

    News 27 November 2013

  • Positive outlook for sukuk

    Global sukuk issuance is likely to maintain its positive long-term growth trends, says Moody's, driven primarily by growing demand for Islamic banking assets and the increasing familiarity of both Islamic and conventional investors with these instruments. Additional drivers include the promotion of Islamic financial services by governments of Muslim countries and the increasing standardisation of unsecured sukuk structures.

    "The strong .......

    News Round-up 27 November 2013

  • SCI conference line-up unveiled

    Final panellist line-ups have been announced for SCI's 7th Annual Seminar, which is taking place on 4 December in London. The event is being held at Reed Smith's offices at Broadgate Tower, 20 Primrose Street, EC2A 2RS.

    This conference will focus on the 'new normal' appearing in the structured credit markets as banks continue to dispose of risky assets and .......

    News Round-up 27 November 2013

  • US ABS returns highlighted

    The US ABS market saw a year-to-date total return of 0.74%, as of 30 September 2013, according to the JPMorgan ABS Indices. The firm's auto, credit card, student loan and other ABS indices returned 0.15%, -0.2%, 2.11% and -0.15% respectively during the period.

    After good performance up to June, the ABS sector sold off along with the rest of the .......

    News Round-up 26 November 2013

  • Marginal decline predicted in auto credit

    Moody's expects the credit quality of the US auto ABS sector to continue to decline in 2014, albeit marginally. This reflects the modest but ongoing decline in the underlying credit of auto ABS collateral pools.

    "ABS collateral pools are going to reflect the persistent weakening of auto lending standards, as lenders respond to both macroeconomic and competitive changes," says Jeff .......

    News Round-up 26 November 2013

  • Investment eligibility events eyed

    S&P has placed its respective double-B minus and single-B plus ratings on the US$100m Queen Street II Capital and US$150m Queen Street III Capital ILS on credit watch with negative implications. The move follows principal losses caused by the liquidation of the MEAG Queen Street II and MEAG Queen Street III funds due to investment eligibility events.

    Indenture trustee Bank .......

    News Round-up 25 November 2013

  • Innovative Malaysian sukuk prepped

    Malaysia Building Society Berhad (MBSB) is in the market with the debut issuance under a new RM3bn structured covered sukuk commodity murabahah programme. Dubbed Tranche 1 Structured Covered Sukuk, the RM495m transaction is notable for being supported by a portfolio of securitised assets.

    RAM Ratings has assigned a preliminary rating of AA1/stable to the deal. The rating agency explains that .......

    News Round-up 25 November 2013

  • SME agreement signed

    The European Investment Bank and Banco Santander have signed a €234.6m agreement to set up an SME asset securitisation fund. This is the second installment of a total €400m loan to finance the long-term investment and working capital needs of SMEs and midcaps in the region.

    The move will enable the creation of a new securitisation fund into which Banco .......

    News Round-up 25 November 2013

  • Former credit chief sentenced for MBS fraud

    Credit Suisse's former global head of structured credit, Kareem Serageldin, has been sentenced to 30 months in prison for his part in hiding more than US$100m in losses in an MBS trading book at the bank (SCI 20 February 2008). The bonds included subprime RMBS and CMBS.

    Serageldin's manipulation of bond prices contributed to Credit Suisse taking a US$2.65bn write-down .......

    Job Swaps 25 November 2013

  • Abenomics to have varied impact

    The Japanese structured finance market will perform well in 2014, according to Moody's, although the effects of 'Abenomics' for each sector may be varied (SCI 5 August). A continued strict lending and regulatory environment will ensure the good credit quality of Japanese RMBS and ABS will be maintained in 2014. At the same time, the performance of CMBS will benefit .......

    News Round-up 21 November 2013

  • Japanese mezz fund partnership formed

    Nomura and Intermediate Capital Group are forming a partnership to facilitate the structuring and distribution of Japanese domestic mezzanine investments and funds. The funds will be managed by a local fund management company, which will be established.

    The demand for Japanese mezzanine debt is expected to rise as a result of the government's economic initiatives. Any funds structured as a .......

    Job Swaps 21 November 2013
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