ABS

  • 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

  • Delamare drives card payment rate jump

    The three-months rolling (3MA) charge-off and delinquency indices remained at the same level reached in the previous quarter, 4.5% and 1.8% respectively, according to Fitch's latest quarterly UK Credit Card Index. The 3MA payment rate index jumped to 20.3%, whereas the 3MA gross yield index decreased to 19.5% over the same period.

    Fitch notes that these metrics are impacted by .......

    News Round-up 9 August 2013

  • Risks ahead for container ABS?

    US shipping container ABS issuance continues to increase, against a backdrop of improving collateral trends. However, Fitch suggests that lingering risks remain.

    New container deals are on pace to equal and possibly even pass the high-water mark seen last year, with six transactions totalling US$1.7bn so far this year. This compares with nine transactions totalling US$2.5bn for all of 2012.

    News Round-up 9 August 2013

  • Diversity seen in secondary ABS

    US ABS secondary trading remained active yesterday, with elevated supply observed in auto paper in particular. A rare bond from a tobacco-related litigation fee securitisation was also out for the bid.

    A list of short WAL senior 2011-2012 vintage bonds provided the bulk of supply in the auto space during the session. Among the tranches appearing for the first time .......

    Market Reports 9 August 2013

  • Partner rejoins Aussie firm

    Clayton Utz has appointed Sonia Goumenis as a partner in its Sydney securitisation practice. She has over 12 years' experience in securitisation transactions, acting for a range of participants and covering a broad swath of asset classes.

    Goumenis began her career at Clayton Utz as a graduate, becoming a partner in January 2008. She returns to the firm from Allen .......

    Job Swaps 8 August 2013

  • Reset boosts cat bond's rating

    S&P has raised its rating on Munich Re's Queen Street V Re to double-B minus from single-B plus. The move follows the release of a reset report detailing the new attachment and exhaustion points for the catastrophe bond.

    For US hurricanes, the updated attachment point is 110,944 (up from 104,000) and the updated exhaustion point is 143,863 (from 136,000), as .......

    News Round-up 7 August 2013

  • Auto ABS underwriting eyed

    US prime auto ABS continue to be originated at a strong clip. But unique elements are being introduced into the market that may give some investors pause, according to Fitch.

    The agency notes that underwriting is slowly declining for prime auto ABS deals. While weighted average pool FICO scores remain strong, an incremental increase in the composition of the lowest .......

    News Round-up 7 August 2013

  • Securitisation chief named

    Mark Pain has joined Santander Consumer Finance UK as head of securitisation, responsible for its ongoing auto ABS programme. Before a year's stint as a consultant, he worked in a variety of front office roles with the US and European principal finance business of Investec Bank. His role included credit analysis and cashflow modelling of granular cashflow transactions, including RMBS, .......

    Job Swaps 7 August 2013

  • Timeshare relative value touted

    Investors seeking incremental yield in ABS typically move down in credit or expand into non-benchmark sectors. Another potential source of incremental yield can be found in structural inefficiencies that create cheaper-than-expected cashflows and good relative value opportunities.

    Exploiting differences between assumed and realised prepayment speeds - especially in new issue deals - is one way of achieving this outcome, according .......

    News Round-up 6 August 2013

  • Drop in bankruptcies buoys consumer ABS

    US personal bankruptcy filings are poised to drop for a third consecutive year in 2013 and may in fact fall to a level seen only twice before in the last two decades, according to Fitch. Personal bankruptcy filings totalled 532,290 at the end of 1H13, 13.7% lower than a year earlier (616,911).

    Fitch senior director Steven Stubbs attributes the sizeable .......

    News Round-up 6 August 2013

  • Currency swap criteria updated

    Fitch has updated its criteria for rating currency swap obligations of an SPV in structured finance transactions and covered bond programmes. The updated criteria are not expected to result in rating actions.

    The key driver for the rating of swap obligations is the rating of the related reference notes. SPV obligations to swap counterparty and noteholders should and usually rank .......

    News Round-up 6 August 2013

  • Asset manager beefs up

    Douglas Charleston joined TwentyFour Asset Management last month as a portfolio manager. He has seven years of ABS structuring and fund management experience, most recently at Lloyds.

    Another recent addition to the team is Luca Beldi, who has been recruited as an analyst. He is a Masters graduate in economics from the University of Milan.

    In addition, the firm's heads .......

    Job Swaps 6 August 2013

  • Abenomics strategy outlined

    The impact of the Japanese government's revitalisation strategy on consumer loan ABS in the country is credit positive, according to Moody's Structured Thinking Asia Pacific report. Disclosed on 14 June as part of the 'Abenomics' initiative, the government will promote smooth job transitions for workers - in particular, irregular employees - through subsidies and support programmes under the strategy. The .......

    News Round-up 5 August 2013

  • Counterparty conundrums

    Investors, issuers adapting to swap-related dilemmas

    Given the difficulty of replacing counterparties and expense of posting collateral for cashflow securitisations, high volumes of swap-related rating agency confirmations look set to continue, potentially eroding investor protections in their wake. At the same time, investor acceptance of AA/A rated senior paper is growing, together with appetite for deals without embedded derivatives risk.

    Peter Nowell, head of ABS trading .......

    News Analysis 2 August 2013

  • CRA supervisory colleges recommended

    IOSCO has published its final report on supervisory colleges for credit rating agencies, which recommends establishing supervisory colleges for internationally active credit rating agencies (CRAs) and provides preliminary guidelines on how to constitute and operate them. The recommendations are aimed at improving the integrity of CRAs, the organisation says.

    The creation of a CRA college could enhance the effectiveness of .......

    News Round-up 31 July 2013

  • Solid auto ABS performance continues

    US auto loan ABS asset performance continues to be solid, with historically low delinquency rates and loss rates at or near record lows, according to Fitch. This is despite a slight up-tick in loss rates observed last month.

    A number of macro factors are helping to bolster auto ABS performance, including: stable employment levels, the revival in the housing market, .......

    News Round-up 31 July 2013

  • Ratings impact unlikely from interchange cap

    The European Commission's proposed cap on interchange fees for credit card-based payment transactions is unlikely to have a significant ratings impact on UK credit card ABS transactions, Fitch says. The agency notes that given regulatory pressure on interchange fees is mentioned as a risk factor in prospectuses for credit card ABS, it has not given full credit to interchange in .......

    News Round-up 30 July 2013

  • MTM losses weigh on Reg XXX deal

    Fitch has affirmed and subsequently withdrawn the ratings of Ballantyne Re's class A1 (double-C), B1 and B2 (both single-C) notes. The rating rationale is based on the significant mark-to-market losses Ballantyne Re has experienced in its investment portfolio of RMBS and ABS.

    Fitch notes that the Regulation XXX vehicle's liabilities exceed the current book value of its assets by "a .......

    News Round-up 30 July 2013

  • RFC issued on floorplan update

    S&P has requested feedback on proposed changes to the methodology and assumptions it uses to rate global non-diversified auto dealer floorplan (non-diversified ADFP) ABS. The proposed revisions are part of the agency's effort to enhance the comparability of its ratings across all sectors of the fixed income market, it says.

    The proposed criteria consider an ADFP pool to be 'non-diversified' .......

    News Round-up 30 July 2013

  • Nephila names new partner

    Guy Swayne has joined Nephila Capital as a partner, based in Bermuda. He will focus primarily on risk origination, working with established and new counterparties that are seeking protection from natural catastrophe and weather exposures. In addition, he will assist the management team with certain aspects of managing the firm and contribute to shaping the firm's strategic initiatives.

    Swayne has .......

    Job Swaps 30 July 2013

  • Structured products head hired

    Western Asset has recruited Anup Agarwal as head of structured products, based in Pasadena. He has 16 years of industry experience and was most recently with Stark Investments.

    At Stark, Agarwal was head of consumer finance, responsible for managing agency and non-agency MBS, ABS, CMBS and CDOs, as well as an opportunistic mortgage fund. Prior to his four years at .......

    Job Swaps 30 July 2013
×