ABS

  • Near-term student loan risks unlikely

    Rising student loan default rates are unlikely to present risk to federal student loan ABS over the near term, Fitch says. The US Department of Education recently announced that the 2011 two-year national cohort default rate increased to 10% from 9.1%, while the rate for the Federal Family Education Loan Program decreased from 6.5% to 6.26%.

    Over the longer term, .......

    News Round-up 4 November 2013

  • Upside potential for Spirit A7s

    Spirit has released the results of its tender offer for its class A1 and A3 bonds (SCI 22 October), with £126.2m tendered in the A1s (87% of the outstanding) and £107.8m of the A3s (92% of the outstanding). The pubco will accept 80% of those tendered for the A1s and 54% for the A3s to reach the original target acceptance .......

    News Round-up 4 November 2013

  • Origination exec promoted

    Barclays Capital has promoted Martin Attea to co-head of securitised products origination in its Americas global finance and risk solutions group. He will work alongside Cory Wishengrad and report to head of DCM Jim Glascott and head of global securitised products trading Scott Wede.

    Wishengrad will continue to lead the esoteric group, reporting to head of global leveraged finance JF .......

    Job Swaps 4 November 2013

  • Structured credit desk expands

    Cantor Fitzgerald Europe has further expanded its European structured credit desk with the appointment of Sheil Aggarwal as md. Based in London, he will focus on ABS, MBS and CLOs.

    Aggarwal joins Cantor from Pamplona Credit Opportunities, where he was a partner (SCI 25 June 2008). Before that, he was a senior md at Bear Stearns, overseeing the trading and .......

    Job Swaps 31 October 2013

  • Retention refinements recommended

    CRE Finance Council and SIFMA have submitted comments to federal regulators in response to the re-proposed rulemaking on credit risk retention. The associations express support for many of the changes that have been made to the proposed rules, but believe that further refinement of the rules is required.

    SIFMA notes that the re-proposal represents a significant improvement over the original .......

    News Round-up 31 October 2013

  • Under-rated opportunity?

    RRBs continue to offer compelling relative value

    Rate reduction bonds (RRBs) continue to offer spreads that are comparatively wide for the credit risk they represent. Volumes have declined recently, but the sector still provides a natural home for total return accounts.

    RRB spreads are consistently wider than credit card ABS spreads, which have typically been a gateway bond into the sector. "If you are new to ABS, .......

    News Analysis 31 October 2013

  • Autos lead ABS volumes higher

    US ABS BWIC volume rose yesterday to over US$60m. Much of the supply came from auto names, but credit card bonds and a pair of whole business tranches were out for the bid as well.

    SCI's PriceABS data displays tranches from five auto deals issued in the last two years, with covers for each. AMCAR 2013-4 A2 and .......

    Market Reports 30 October 2013

  • Local heroes

    Private placements revitalising Asian securitisation

    A pair of innovative structured financings closed this month that demonstrate the growing appetite for privately-placed local currency bonds among Asian investors. The deals are expected to help revitalise the securitisation market in the region.

    The two transactions are the US$250m-equivalent Courts ABS - originated by Courts Asia via HSBC - and the S$300m Orchis Capital condominium-backed deal, which was .......

    News Analysis 30 October 2013

  • ABS downgrades hit post-crisis low

    Fitch has published a study analysing US credit card, auto and student loan ABS rating performance through the first half of 2013. Downgrades affected 1% of the universe, the lowest level seen in over five years, while 3% of ratings were upgraded during the period.

    Credit card ABS transactions were the lynchpin of stability, according to Fitch. For the second .......

    News Round-up 29 October 2013

  • Used vehicle values boost auto ABS

    US auto ABS performance continues to exceed expectations, even at a time when performance is historically weakest, according to Fitch's latest index results for the sector. The agency reports that an unexpected bounce in used vehicle values - up by nearly 2% versus September 2012 - last month supported higher recovery rates, contained loss levels and supported auto ABS asset .......

    News Round-up 28 October 2013

  • Action seen in secondary US ABS

    US ABS secondary supply remained moderate yesterday, with BWIC volume reaching US$180m. The focus was on student loan and credit card paper, including five block-sized bonds from the CHAIT shelf out for the bid.

    Among those bonds, SCI's PriceABS data shows that CHAIT 2012-A5 A5 traded during the session, with price talk in the mid-teens. The tranche was .......

    Market Reports 25 October 2013

  • Chinese pilot programme back on track?

    Chinese ABS activity appears to be back on track, after the country's regulatory authorities re-committed themselves in August to its credit asset securitisation (CAS) pilot programme. SFIG estimates that the move could result in as many as 20 participating institutions collectively issuing up to US$49bn in securities during the first half of 2014.

    China's Pilot Measures define a securitisation framework .......

    News Round-up 24 October 2013

  • Investment bank adds CLO vet

    Canaccord Genuity has appointed Sam Spackman as a CLO trader, further boosting its structured finance capabilities after a number of recent hires (SCI 3 September). He also has experience in ABS and RMBS.

    Spackman was previously CLO trading svp at Odeon Capital and has also served as structured products director at Katonah Debt Advisors, as structured credit analyst at Greywolf .......

    Job Swaps 22 October 2013

  • 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
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