ABS

  • Pubco swap offer 'credit positive'

    Spirit has made an offer to tender and swap its existing A1 and A3 bonds into newly-issued A6 and A7 bonds. The tender and swap offer is for up to 50% of the A1 bonds and 70% of the A3s, with the remainder left outstanding and amortising in line with the existing schedule.

    ABS analysts at Barclays Capital note that .......

    News 22 October 2013

  • APAC upgrades outweigh downgrades

    Upgrades (accounting for 3.7% of total rating actions) outnumbered downgrades (1.8%) across Fitch-rated Asia-Pacific structured finance deals in 3Q13. The agency reports that most ratings were affirmed during the period.

    There were five upgrades in Australia and three in Japan. Of the Australian upgrades, four were for tranches from an unsecured consumer loan transaction and were due to better-than-expected asset .......

    News Round-up 21 October 2013

  • Credit bureau move panned

    The South African government last month approved the removal of adverse credit information from the public records of borrowers with cured arrears. Moody's says in its latest Credit Insight publication that the move is credit negative for South African RMBS and ABS transactions because it will reduce the amount of information available to originators to assess the creditworthiness of new .......

    News Round-up 18 October 2013

  • SME risk-sharing instruments discussed

    In preparation for next week's European Council meeting, the EU Economic and Financial Affairs Council of Ministers (ECOFIN) has considered parameters for the design of SME risk-sharing instruments to be co-financed by the European Commission and the EIB (SCI 28 June). Preparations are being made for the new instruments to be operational by January, at the start of the 2014-2020 .......

    News Round-up 18 October 2013

  • SF liquidity issues discussed

    Ahead of the eleventh-hour deal to raise the US debt ceiling, DBRS examined how outstanding structured finance transactions could be affected by a US default and whether there are measures that issuers can take in advance to insulate their transactions. The agency believes that the greatest risk would relate to liquidity and the requirement to pay timely interest.

    While structured .......

    News Round-up 17 October 2013

  • RWN placements follow US rating action

    Fitch says it expects to take limited rating actions on US CMBS transactions as a result of its placement of the US sovereign rating on rating watch negative. Bonds in five deals are directly linked to the US rating and have already been placed on rating watch negative, while many others have exposure to defeased collateral and the US government .......

    News Round-up 17 October 2013

  • Stable outlook for Indian SF

    Indian structured finance delinquency rates will continue rising in the next 12-18 months, due to the country's falling economic growth rate and rising fuel prices weakening debt-servicing ability, Fitch says. But the agency notes that collateral performance remains within its base-case assumptions, while loss-absorption mechanisms and credit enhancement build-up will continue to support stable ratings performance and outlook.

    For transactions .......

    News Round-up 16 October 2013

  • New hires to lead EM debt push

    Babson Capital Management has appointed Brigitte Posch and Ricardo Adrogue to lead its new emerging market debt investment team. Posch will be based in London and Adrogue will be based in Boston.

    Posch joins from PIMCO, where she was evp and head of emerging market corporates. Before that she established a Latin American securitisation and trading platform at Deutsche Bank .......

    Job Swaps 16 October 2013

  • EMEA downgrade trends discussed

    Fitch reports that asset underperformance was the dominant driver of EMEA structured finance (SF) downgrades since the onset of the credit crisis in 2007, accounting for 69% of negative rating actions. At the highest rating levels, asset underperformance is a far less dominant driver of rating downgrades, however.

    "This suggests that structured finance structures have operated as intended, with senior .......

    News Round-up 16 October 2013

  • Reduction in sovereign ceiling proposed

    S&P has published a request for comment on proposed changes to its methodology for assigning ratings above a sovereign's foreign currency rating on single-jurisdiction structured finance transactions. The proposal is designed to bring additional clarity and comparability to the agency's global approach for considering structured finance ratings above that of the sovereign.

    The proposed criteria apply a rating differential above .......

    News Round-up 15 October 2013

  • Residual interest SLABS in demand

    Fitch anticipates that increased investor demand will lead to further issuance of US residual interest student loan ABS. To date, the agency has rated two such transactions - one backed by multiple FFELP residual interests (SLM 2013-M1) and the other backed by 99% of the residual interest of a single private SLABS trust (CSART 2013-A).

    However, with these transactions come .......

    News Round-up 15 October 2013

  • SF definition updated

    Moody's has updated its definition of the types of securities it considers to be structured finance instruments. US$45.99bn of securities are affected by the move.

    The agency intends to remove the 'sf' indicator from credit ratings it assigns to: student loan-backed bonds issued by a non-profit or public instrumentality that issues fewer than three classes of debt; US state and .......

    News Round-up 14 October 2013

  • Post-reset cat bonds affirmed

    S&P has affirmed its ratings on 29 natural-peril catastrophe bonds issued by 13 issuers, which had annual resets of the probability of attachment. In each case the probability of attachment was reset to a percentage consistent with the transaction documents and the current rating, the agency notes.

    S&P says it reviewed the creditworthiness of each ceding company and the ratings .......

    News Round-up 14 October 2013

  • Credit hedge fund performance lagging

    Credit hedge funds performed well last month, but are struggling to post returns of even half of the level seen in 2012, according to eVestment. The firm estimates that MBS-focused funds, in particular, are on pace for their worst year since the financial crisis.

    Credit strategies appeared to benefit from the reversal of the 10-year US Treasury rate climb in .......

    News Round-up 11 October 2013

  • Sovereign risk still weighing on periphery

    European peripheral ABS and RMBS are more sensitive to a further potential increase in sovereign risk than to asset pool deterioration, Moody's suggests. Specifically, the agency points to further increases in sovereign risk or weakening of the credit profiles of financial counterparties over the next 18 months as being the main drivers of negative credit migration for Irish RMBS, as .......

    News Round-up 11 October 2013

  • Card MPRs hit record high

    US credit card ABS monthly payment rates (MPRs) for September set a record high, reaching 26.27% in 3Q13, according to Fitch's latest quarterly index for the sector. This comes as charge-off and delinquency levels saw the fourth straight quarterly decline.

    "Credit card debt borrowers are of overall higher-quality and are steadily making on-time payments, as the record high MPR seems .......

    News Round-up 11 October 2013

  • ABS activity accelerates post-conference

    Yesterday's US ABS BWIC volume was almost double the previous session's, surpassing US$100m. SCI's PriceABS data shows that the surge in secondary supply was supported by a slew of student loan bonds.

    The student loan ABS paper out for the bid yesterday was largely concentrated in 2005-vintage names, although tranches ranged from 2004 to 2007. Many of the .......

    Market Reports 10 October 2013

  • Validation tool enhanced

    Interactive Data has released a new set of transparency and workflow enhancements to its Vantage solution. The enhanced Vantage Price Validation Workflow module aims to enable buy- and sell-side firms to more efficiently manage their price review process, thereby reducing the operational cost of meeting current regulatory requirements.

    The module is designed to serve as a central hub for client .......

    News Round-up 8 October 2013

  • Aircraft ABS issuance weighed

    Fitch expects recent positive trends in aircraft leasing to pave the way for increased new operating lease ABS issuance in the near term. However, evolving risks in the sector could impact long-term performance and warrant continued consideration.

    Lessors have steadily grown their share of the aircraft finance market. Meanwhile, record expected aircraft deliveries and tightened financing sources have created the .......

    News Round-up 8 October 2013

  • Further fines for Catalyst leadership

    The UK FCA has fined two more Catalyst Investment Group executives after previously fining former compliance officer Alison Moran and censuring the company (SCI 7 October). Timothy Roberts has been fined £450,000 and Andrew Wilkins has been fined £100,000.

    Catalyst ceo Roberts has also been banned from the industry. Wilkins is a former director at the company and the FCA .......

    Job Swaps 8 October 2013

  • 2.0 structuring tool launched

    Lewtan has launched a structuring tool geared towards the 'securitisation 2.0' environment. Dubbed ABSNet Modeler, the firm says that the offering is unique due to the transparency of the cashflow waterfall and resulting output.

    The tool is designed to assist users at each step of the deal structuring process with advanced cashflow analytics to run deal, pool, tranche and loan-level .......

    News Round-up 8 October 2013
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