ABS

  • Iberian tariff deficit plans compared

    Portugal's plans to eliminate its electricity tariff deficit (TD) are more credible than Spain's, Fitch suggests. The agency says that Portugal's plans benefit from a deadline for TD elimination, a detailed agenda and supervision process, and regulatory independence. These elements are either absent from or less well developed in Spain's roadmap, it adds.

    Outstanding TDs in Portugal were 45% of .......

    News Round-up 10 September 2013

  • Reporting compliance enabled

    The ECB has enhanced the loan-level reporting requirements for RMBS and SME ABS that are used as collateral in Eurosystem monetary policy operations but are unable to satisfy the previously announced implementation timeline. The enhancements aim to ensure a smooth transition to full compliance while ensuring a level playing field between RMBS and SME ABS at different stages of the .......

    News Round-up 9 September 2013

  • Card performance reaches record levels

    US credit card ABS performance registered positive gains across the board in July, according to Fitch's latest index results for the sector. Several performance metrics managed to break record levels during the month.

    Fitch's 60+ Day Delinquency Index for August (covering the July collection period) registered yet another record low, dropping by 4bp. Late-stage delinquencies fell to 1.3%, a fifth .......

    News Round-up 5 September 2013

  • E-cigarette proliferation to hit MSA payments?

    A possible increase in market share for e-cigarette products in the US could reduce payments to settling states under the Master Settlement Agreement (MSA), Fitch suggests. E-cigarette sales are projected to pass traditional cigarette sales by 2047, which could put downward pressure on tobacco settlement ABS ratings.

    The annual MSA payment is determined based on inflation and the amount of .......

    News Round-up 5 September 2013

  • Wage pressures weigh on Arsenal bonds

    Arsenal Football Club's record signing of Mesut Ozil for £42.5m could be a concern for Arsenal Securities bondholders if it is followed by more significant transfers in the January transfer window, according to securitisation strategists at Barclays Capital. Increased wage pressures at the club raise the risk of the wage-to-revenue ratio rising above 70% - a level at which Fitch .......

    News Round-up 3 September 2013

  • Euro ABS may stay quiet

    It has been a typically quiet August for European ABS as traders take their holidays, although there has been some BWIC activity to keep those that remained at their desks occupied. However, there is a growing concern that this September may not bring the pick-up in activity that is traditionally seen.

    "This has been a quiet month, which is what .......

    Market Reports 30 August 2013

  • Punch securitisation deemed weak

    Punch Taverns' Punch A securitisation business profile has been revised down to weak by S&P, affecting the credit ratings on the class A1, A2, M1 and M2N notes. The B1, B2, B3, C and D1 notes have been affirmed and the outlook remains negative.

    S&P has previously viewed Punch A as stronger than Punch B, but has now revised it .......

    News Round-up 30 August 2013

  • UK card trusts to avoid mis-selling pain

    The mis-selling of identity theft and fraud protection to UK credit card borrowers should not be detrimental to UK credit card trusts, says Fitch. The agency notes that payment protection insurance (PPI) mis-selling occurred on a larger scale without affecting trust performance.

    Seven million borrowers could be entitled to compensation, with a compensation scheme set up under which £1.3bn could .......

    News Round-up 30 August 2013

  • Autos bump up ABS volume

    US ABS secondary volume was up yesterday, driven by a list of short block sized auto bonds. SCI's PriceABS data shows a number of covers from the session as BWIC volume passed US$300m.

    ALLYA 2010-4 A4 is a particularly interesting tranche from the session. It was covered yesterday at 100.4, having first appeared in PriceABS one .......

    Market Reports 29 August 2013

  • Indices point to positive card performance

    US credit card ABS collateral performance is expected to stay positive and ratings should remain stable, says Fitch. Credit card ABS collateral continues to outperform as Fitch's preliminary prime chargeoff index is likely to hit a seven-year low.

    The preliminary prime chargeoff index is expected to decrease for the fourth consecutive month, driven by the continuing record decline of Fitch's .......

    News Round-up 28 August 2013

  • Auto ABS losses on the rise

    US auto ABS prime and subprime losses rose last month after reaching lows in the spring, according to Fitch. Despite the uptick in losses, asset performance has remained strong, as have used vehicle values.

    In the prime sector 60-plus day delinquencies rose 10% to 0.33% in July month-over-month. That said, delinquencies remain 13% lower than in the same month last .......

    News Round-up 27 August 2013

  • Ratings reviewed on bank linkage

    Moody's has placed on review the ratings of a number of securities directly exposed to the credit quality of certain US banks, on which the agency took rating actions on 22 August. The action affects 20 tranches in 12 structured finance deals and 32 tranches in 18 structured credit deals.

    The move is driven by the linkage between the ratings .......

    News Round-up 23 August 2013

  • 'Passporting' framework recommended

    SFIG has submitted a comment letter to the EBA regarding its consultation paper on revised proposed EU securitisation regulations. To mitigate the costly and potentially preclusive impact of differing regulatory approaches on cross-border securitisation transactions, the association recommends that the EBA adopt a framework for 'passporting' that would permit non-EU sponsors to comply with a non-EU jurisdiction's risk retention requirements.

    News Round-up 22 August 2013

  • CHAIT bonds boost ABS supply

    Over US$300m of BWIC supply hit the US ABS secondary market yesterday and a significant portion of that was credit card paper from JPMorgan's CHAIT shelf. Several aircraft ABS bonds were also out for the bid.

    SCI's PriceABS data shows that large slices of 2007-vintage CHAIT tranches were traded during the session. CHAIT 2007-A2 A2 was talked in .......

    Market Reports 22 August 2013

  • Commodity trade finance deal debuts

    BNP Paribas has completed what it describes as a first-of-its-kind commodity trade finance securitisation. Dubbed Lighthouse Trade Finance Issuer I, the US$131.6m transaction is designed to increase liquidity in the commodity transportation market and provide investors with access to a new asset class.

    The transaction's capital structure comprises a US$100m senior A loan (that priced at 85bp over Libor), US$20m .......

    News 22 August 2013

  • Credit vet named fixed income chief

    Juan Landazabal has joined Deutsche Asset & Wealth Management as global head of fixed income trading, based in London. He joins from Fidelity Investments, where he was also head of fixed income trading.

    Landazabal worked his way up at Fidelity from a senior credit trading position, where he focused on investment grade bonds and CDS, with additional responsibilities in high .......

    Job Swaps 22 August 2013

  • Container ABS remains resilient

    Container leasing ABS issuance has remained resilient this year, despite sluggish global economic and trade growth. S&P believes that issues rated single-A should be able to withstand substantial stress and still meet their financial obligations.

    The agency rated six new container lease ABS transactions in the first half of 2013, roughly matching the record-setting pace of 2012. "Currently, we believe .......

    News Round-up 21 August 2013

  • Chinese securitisation challenges outlined

    Securitisations in China continue to face key challenges in legal enforceability, data robustness and integrity, as well as underwriting and servicing standards, according to Fitch. The agency notes that true sale and bankruptcy remoteness are yet to be tested in Chinese securitisations under the specific asset management programme (SAMP).

    Such transactions have weak legal structures since they rely on rules .......

    News Round-up 21 August 2013

  • Structured finance partner named

    Squire Sanders has recruited Mark Thomas as partner in its financial services practice group in London. He was previously head of structured finance at Addleshaw Goddard. His practice focuses on advising on developing structured loan products, loan portfolio sales and acquisitions, restructuring - particularly relating to ABS and real estate finance transactions - and the provision of finance to banks .......

    Job Swaps 19 August 2013

  • Sterling ABS trader recruited

    Lloyds has appointed Martin de Ville as fixed sterling ABS trader in London. He will join next month and report to head of structured credit trading Gary Hibbard.

    De Ville was most recently at Cantor Fitzgerald, where he was responsible for building out the European ABS business. He has also worked at UBS as a senior ABS trader.

    .......

    Job Swaps 19 August 2013

  • Tobacco bond cashflow errors corrected

    Moody's says it will continue to maintain the ratings on the term bonds issued in tobacco settlement revenue securitisations under review with direction uncertain (SCI 23 January). But the agency has disclosed that since it placed the bonds under review, it has corrected certain errors in the cashflow models used in rating them. The corrections have a positive credit effect .......

    News Round-up 16 August 2013
×