ABS

  • CFPB oversight to spur servicer consolidation?

    The seven largest student loan servicers have the capacity to weather the increased operating costs brought on by Consumer Financial Protection Bureau (CFPB) oversight, according to Fitch. The CFPB oversight applies to non-bank servicers of more than one million accounts.

    The seven largest servicers of federal loan programmes are overseen by the US Department of Education. The CFPB's supervision will .......

    News Round-up 10 December 2013

  • Bondholder communication tool launched

    DealVector has launched InvestorLink, with the aim of streamlining communication in the structured credit markets. Created primarily for issuers, collateral managers and trustees, the service is designed to open a direct communication channel between deal administrators and noteholders.

    Benefits of the service include: accelerated execution of amendments, waivers, consents and other voting events; improved liquidity and transparency; and differentiation for .......

    News Round-up 10 December 2013

  • Credit cards outperform expectations

    US credit card ABS collateral again outperformed market expectations during the October collection period. The Fitch Prime 60+ Day Delinquency and Charge-off indices now stand at a record 1.25% and 2.98% respectively.

    The Fitch Prime 60+ Day Delinquency Index now remains nearly 26.5% below November 2012 levels, while the Fitch Prime Charge-off Index level represents a month-on-month decline of 5% .......

    News Round-up 9 December 2013

  • Minimal Euro default rate underlined

    Only 1.5% by original issuance volume of European structured finance notes outstanding in mid-2007 had defaulted by end-3Q13, according to S&P's latest quarterly transition study. The quarterly transition study analyses cumulative rating transitions and defaults from the beginning of the financial downturn - which is assumed to be mid-2007 - until end 3Q13, aggregating by issuance volume.

    "The 12-month rolling .......

    News Round-up 6 December 2013

  • Euro ABS market still active

    The European ABS and RMBS secondary markets continue to witness strong BWIC supply. SCI's PriceABS data shows a number of covers from yesterday's session, while one trader reports that next week is also expected to be busy.

    "There have been a lot of bid-lists lately and those are mainly coming from hedge funds rather than legacy accounts. What .......

    Market Reports 6 December 2013

  • Even keel for ECP

    The ABCP market has this year seen a rebalancing of issuance towards the ECP sector, which now accounts for roughly 50% of volume. With outstandings expected to increase slightly in 2014, the market appears to have successfully returned to its core function.

    EMEA ABCP volume declined to approximately US$70bn as of September 2013, versus US$524bn in July 2007, according to .......

    News 6 December 2013

  • Greek country ceiling lifted

    Fitch and Moody's have implemented positive rating actions on a number of Greek securitisations. The move follows an uplift in the Greek country ceiling by both agencies.

    Moody's upgraded 16 notes and affirmed six notes in nine Greek transactions, after the agency raised its country ceiling on Greece to B3 from Caa2 and upgraded Greece's sovereign rating to Caa3 from .......

    News Round-up 5 December 2013

  • Broadly stable outlook for US ABS

    Moody's and Fitch have published their expectations for the US ABS market in 2014. While both rating agencies anticipate stable to positive credit card and auto performance, there is some disagreement on student loan ABS.

    The exit of weaker card accounts from trusts during the recession and the improving wider economy will support the credit quality of the collateral backing .......

    News Round-up 5 December 2013

  • Divergent Euro rating outlook

    Fitch's rating outlook for European structured finance (SF) transactions is geographically split. Almost 70% of ratings in the core European countries are predominantly stable, with the remainder related to transactions from the eurozone periphery, which are predominantly negative.

    The negative outlooks for the eurozone periphery reflect a combination of declining asset performance, uncertainty over timing and extent of recoveries, policy .......

    News Round-up 5 December 2013

  • Euro credit quality to remain stable

    The credit quality of European ABS and RMBS transactions will remain stable overall in 2014, says Moody's in its outlook report for the sector. Against the backdrop of stabilising macroeconomic drivers for most countries, affordability across Europe will be sustained by the low interest rate environment, prudent underwriting criteria and regulatory initiatives to boost credit supply.

    While considerable risks remain, .......

    News Round-up 5 December 2013

  • Timeshare delinquencies up on seasonality

    Total US timeshare ABS delinquencies for 3Q13 were 3.14%, up slightly from 3.05% in 2Q13, according to Fitch's latest index results for the sector. The increase reflects the seasonal trend that takes hold in the autumn and winter. Nevertheless, delinquencies are down from 3.28% in 3Q12 and have largely normalised at their historical levels following the dramatic increases of 2008 .......

    News Round-up 4 December 2013

  • Stable outlook for APAC ratings, performance

    Fitch expects both the ratings and asset sector performance of Asia-Pacific (APAC) structured finance (SF) transactions to remain stable over the course of next year. Most public long-term ratings on APAC SF transactions are anticipated to remain at their current level throughout 2014. Of the 10 non-stable outlooks in place at end-3Q13, six were on positive outlook and four were .......

    News Round-up 3 December 2013

  • BRRD to have neutral counterparty impact

    Fitch does not expect its counterparty criteria for structured finance (SF) and covered bonds (CVB) to change if the European Bank Recovery and Resolution Directive (BRRD) is implemented as currently drafted by the European Council. The agency says it considers the proposed directive to have a largely neutral impact upon the seniority of counterparty exposures.

    Fitch believes that eligible rating .......

    News Round-up 3 December 2013

  • 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
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