ABS

  • 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

  • FFELP SLABS issuance set to slow

    US student loan ABS new issuance is on track to finish below last year's total issuance of US$30bn, S&P notes. In steep contrast, student loan originations through the Department of Education's (DOE's) Direct Loan programme have continued to grow quickly, further augmenting the total amount of outstanding student loan debt. However, student loans from the Direct Loan programme have not .......

    News Round-up 16 August 2013

  • Longevity risk consultation launched

    The Joint Forum has released a consultative report on the longevity risk transfer (LRT) markets. The paper aims to assist in setting appropriate policies and to help ensure effective supervision of related activities and risk.

    Estimates of the total global amount of annuity- and pension-related longevity risk exposure range from US$15trn to US$25trn. At the same time, pension funds are .......

    News Round-up 15 August 2013

  • Tobacco ABS review completed

    Fitch has completed its annual review of tobacco ABS ratings, accounting for the amount of Master Settlement Agreement (MSA) payment received by each trust in 2013. For 2013, the aggregate MSA payment was 21.56% higher than the amount in 2012, due to the non-participating manufacturer dispute settlement payment made by the tobacco companies to 20 settling states and territories.

    This .......

    News Round-up 15 August 2013

  • Stable performance for timeshare ABS

    S&P reports that the performance of collateral backing transactions in its US timeshare securitisation performance index remained stable in the first half of 2013. Total delinquencies declined overall and monthly defaults remained steady. Excess spread was also stable, but spiked in March after one deal was redeemed.

    Total delinquencies declined from 4.2% in January to 3.92% in June, while monthly .......

    News Round-up 15 August 2013

  • New student loan law to have mixed impact

    President Obama last Friday signed into law the Bipartisan Student Loan Certainty Act of 2013, which pegs the interest rate on new federal student loans to a market rate fixed at loan origination. Moody's expects the new loan rates to have mixed effects on private student loan securitisations because the new rates will be credit positive for undergraduates, but credit .......

    News Round-up 13 August 2013

  • Private cat bond listed

    Kane has launched an independent private catastrophe bond platform called Kane SAC Limited. The inaugural issuance under the programme - the US$9.52m series 1-2013 notes - has been listed on the Bermuda Stock Exchange (BSX), marking the first-ever listing on the stock exchange of a series of notes issued by a segregated accounts company.

    Kane SAC is a Bermuda exempted .......

    News Round-up 13 August 2013

  • Retail card ABS sustainability discussed

    Several news reports have speculated on the future financial stability of various US retailers over the past few months. This could have an impact on credit card securitisation trusts that contain receivables generated by co-branded or private-label cards associated with these retailers, S&P notes.

    Despite its expectation of a continued modest rebound in the US economy, the agency says that .......

    News Round-up 12 August 2013
×