ABS

  • 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

  • P2P ABS debuts

    National Alliance Capital Markets and Waterford Capital have completed what is believed to be the first securitisation of peer-to-peer consumer loans - Eaglewood Consumer Loan Trust 2013-1 - for Eaglewood Income Fund I, a consumer credit fund managed by Eaglewood Capital Management. The transaction comprises US$40m class A notes and US$12.8m class Bs, and features a revolving period whereby collections .......

    News Round-up 8 October 2013

  • NewOak partners with risk specialists

    NewOak Advisors has formed a strategic alliance with Smith Regulatory Strategies (SRS). The alliance will combine NewOak's market expertise with SRS's risk management and regulatory compliance capabilities.

    The alliance will initially focus on Basel 3 risk-based capital compliance, including stress testing, asset valuation, risk assessment and model validation. The firms will also work together on bank-owned life insurance separate accounts .......

    Job Swaps 8 October 2013

  • Firm censured for ABS sales

    The UK FCA has censured Catalyst Investment Group for misleading investors while selling bonds between November 2009 and May 2010. Former compliance officer Alison Moran has also been fined £20,000.

    Catalyst would have been fined, but is in default and unable to pay. The firm offered life insurance securitisation bonds issued by ARM Asset Backed Securities despite knowing that ARM .......

    Job Swaps 7 October 2013

  • Chenavari launches listed company

    Chenavari Capital Solutions has closed an IPO for an aggregate of 130,300,000 ordinary shares, raising gross proceeds of £130.3m. The strategy of the listed investment company is designed to allow European banks to reduce their risk-weighted assets under the Basel 3 rules via capital solutions transactions, while providing attractive returns to investors.

    Advised by Chenavari Investment Managers, the company is .......

    Job Swaps 7 October 2013

  • London legal partners appointed

    Mayer Brown has added two securitisation partners to its banking and finance group in London. Richard Todd and David O'Connor join from Berwin Leighton Paisner and Allen & Overy, respectively.

    Todd has worked at Mayer Brown before, as well as at Lloyds, JPMorgan and VTB Bank. He specialises in trade receivables and auto loan ABS as well as RMBS.

    O'Connor's .......

    Job Swaps 7 October 2013

  • Japanese CMBS, autos improve

    Japanese CMBS and auto loan ABS performance continued to improve in July and August, according to Moody's Japan. High job security is expected to keep performance trends stable.

    The CMBS default rate fell to 17.6% in August, down from 21.8% in July and down from 33.1% a year earlier. The annualised auto loan ABS default rate for July fell to .......

    News Round-up 4 October 2013

  • RBA updates securitisation reporting templates

    The Reserve Bank of Australia (RBA) has released for consultation draft reporting templates for CMBS and ABS to be eligible for repo. The Australian Securitisation Forum notes that the new information requirements reflect the RBA's desire for more comprehensive information about the securities.

    The templates require transaction-level and security-level templates for CMBS and ABS and are comparable to those finalised .......

    News Round-up 3 October 2013
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